The Wall Street Journal-20080125-Nucor Corp-- Quarterly Earnings Fall 10- As Prices Surge for Scrap

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Nucor Corp.: Quarterly Earnings Fall 10% As Prices Surge for Scrap

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Nucor Corp.'s fourth-quarter net income fell 10% on a sharp increase in scrap metal costs and inventory charges. The Charlotte, N.C., company, which makes steel from recycled metal, posted net of $364.8 million, or $1.26 a share, compared with $405.1 million, or $1.34 a share, a year earlier. Revenue rose 27% to $4.4 billion. The latest results included an inventory charge of $92.3 million, compared with a year-earlier credit of $39.6 million. Average sales price per ton rose 9%, and shipments grew 16% to 5.9 million tons. The average scrap and scrap substitute cost per ton used rose 17%. For this quarter, Nucor sees net of $1.20 to $1.30 a share.