Nucor Q2 net profit up 28%

US steelmaker and recycler Nucor (NYSE: NUE), which operates in Brazil and Trinidad & Tobago among other areas, has reported a 28% increase in second quarter net profit to US$323mn compared to same-period 2004. But the profit marks a 9% decrease on the North Carolina-based steel company's first quarter 2005 net profit of US$354.7mn. Nucor's net sales increased 14% to US$3.15bn compared to 2Q04 but decreased 5% compared to 1Q05. Average sales price per ton also increased 8% compared to 2Q04 but decreased 6% from 1Q05, while shipments "to outside customers" reached a record 5.1Mt during the quarter. This represented an increase of 5% on 2Q04 and 1% on 1Q05. In the steel mills segment, steel production decreased 3% to 4.9Mt compared to 1Q05. Nucor said it expects third quarter earnings to be below both the 3Q04 and 2Q05 due largely to sheet market conditions. "While the sheet market will be largely responsible for this decrease, we are currently seeing improvements in the market for sheet products and believe that this improvement trend will continue," the company said. During the second quarter, Nucor repurchased 4 million shares of its common stock for roughly US$205.8mn under a publicly announced stock repurchase program. Some 4.5 million shares remain authorized for repurchase under the current program. Nucor is the largest recycler and steelmaker in the US. Company operations include a US$80mn pig iron joint venture with Rio de Janeiro-based iron ore mining giant CVRD in Brazil's northern state of Pará. The firm is also building the Nu-Iron direct-reduction plant in Trinidad & Tobago.