Nucor 2011 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2011 Nucor annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 82

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82

23
Net sales for 2011 increased 26% from the prior year. The average sales price per ton increased 21% from $720 in 2010 to
$869 in 2011, while total tons shipped to outside customers increased 5%. The average sales price per ton of $850 in the
fourth quarter of 2011 decreased 6% from $908 in the third quarter of 2011 due to lower average sales price per ton in our
steel mills.
In the steel mills segment, production and sales tons were as follows:
(in thousands)
Year Ended December 31, 2011 2010 % Change
Steel production 19,561 18,258 7%
Outside steel shipments 16,796 15,821 6%
Inside steel shipments 3,329 2,752 21%
Total steel shipments 20,125 18,573 8%
Net sales to external customers in the steel mills segment increased 29% due to a 6% increase in tons sold to outside customers
and a 21% increase in the average sales price per ton from $689 in 2010 to $832 in 2011. Total production levels at the steel
mills increased 7% due to an increase in outside shipments as well as an increase of more than 500,000 tons supplied to other
Nucor businesses.
While average selling prices increased from the prior year, the average sales price per ton declined during the last three quarters
of 2011. The average sales price per ton in the fourth quarter of 2011 was $806, a decrease of 10% from $891 in the second
quarter of 2011. The most significant decreases in average selling prices were for our sheet and plate products, which were
impacted by increased domestic capacity and imports in the second half of the year. The erosion in the selling prices of our
sheet and plate products has been cushioned by greater stability in the selling prices of our other steel mill products. Residential
and nonresidential construction markets continue to suffer from recessionary levels of demand and have shown only small
improvement. Markets such as automotive, energy, heavy equipment and general manufacturing have continued to experience
improvement in demand.
year
200
400
600
800
1,000
06 07 08
dollars
AVERAGE SALES PRICE PER TON
09 10 11 year
5,000
10,000
15,000
20,000
25,000
09 10 1106 07 08
thousands of tons
TOTAL TONS SOLD TO OUTSIDE CUSTOMERS