Nucor 2013 Annual Report Download - page 27

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In the steel mills segment, production and sales tons were as follows:
(in thousands)
Year Ended December 31, 2013 2012 % Change
Steel production 19,900 19,865 —
Outside steel shipments 17,733 17,473 1%
Inside steel shipments 2,917 2,769 5%
Total steel shipments 20,650 20,242 2%
Net sales to external customers in the steel mills segment decreased 3% due to a 5% decrease in the average sales price per
ton from $792 in 2012 to $751 in 2013, partially offset by a 1% increase in tons sold to outside customers.
The average selling prices for our sheet, bar and plate products decreased in 2013 as compared to 2012 due to pressure from
imports and excess domestic capacity. Though average selling prices for our sheet products were lower in 2013 than 2012,
average selling prices for sheet products increased during the last half of 2013 due to pricing increases that began late in the
second quarter that were supported by competitor supply disruptions and slightly improved demand. Average selling prices for
our structural products group increased in 2013 as compared to 2012 because Skyline’s distribution business is included for the
entire year in 2013. Skyline was only included in 2012 after its June 20, 2012 acquisition date. Skyline has higher average sales
prices for its products because of the value-added functions it provides to its customers. Demand in nonresidential construction
markets is slowly improving but continues to lack sustained momentum. The strongest end markets in 2013 continue to be in
manufactured goods, including energy and automotive, much like they were in 2012.
Tonnage data for the steel products segment is as follows:
(in thousands)
Year Ended December 31, 2013 2012 % Change
Joist production 342 291 18%
Deck sales 334 308 8%
Cold finished sales 474 492 -4%
Fabricated concrete reinforcing steel sales 1,065 1,180 -10%
Net sales to external customers in the steel products segment decreased 4% from 2012 due to a 3% decrease in tons sold to
outside customers and a 1% decrease in the average sales price per ton from $1,393 to $1,375. The 10% decrease in volume of
our rebar fabricated products in 2013 as compared to 2012 was partially offset by a 3% increase in the average sales price per
ton. Selling prices of our joist and deck products decreased in 2013 as compared to 2012, but these decreases were more than
offset by increased sales volumes due to moderately improved demand in nonresidential construction. Pricing and volumes of cold
finished bar products decreased from the prior year. Steel products segment shipments to external customers decreased 6% in the
fourth quarter of 2013 from the third quarter of 2013 because of typical seasonality in the nonresidential construction market. Tons
shipped to external customers in the fourth quarter of 2013 increased 3% over the fourth quarter of 2012. Though we have seen
slow improvement in demand related to nonresidential construction, that improvement has lacked sustained momentum, causing
net sales in the steel products segment to remain depressed.
Sales for the raw materials segment increased 12% from 2012 primarily due to increased volumes in DJJ’s brokerage and processing
operations and increased volumes at our natural gas drilling working interests, partially offset by decreased pricing experienced by
DJJ. Raw materials segment sales increased 25% in the fourth quarter of 2013 as compared to the fourth quarter of 2012, due mainly
to increases in volumes at DJJ’s brokerage operations and at our natural gas drilling working interests. Approximately 83% of outside
sales in the raw materials segment in 2013 were from brokerage operations of DJJ and approximately 12% of the outside sales were
from the scrap processing facilities (85% and 13%, respectively, in 2012).