Segments

6 Months Ended

Jun. 29, 2019

16.

SEGMENTS: Nucor reports its results in the following segments: steel mills, steel products and raw materials. The steel mills segment includes carbon and alloy steel in sheet, bars, structural and plate; steel trading businesses; rebar distribution businesses; and Nucor’s equity method investments in Duferdofin Nucor, NuMit and Nucor-JFE. The steel products segment includes steel joists and joist girders, steel deck, fabricated concrete reinforcing steel, cold finished steel, precision castings, steel fasteners, metal building systems, steel grating, tubular products businesses, piling products business, and wire and wire mesh. The raw materials segment includes The David J. Joseph Company and its affiliates, primarily a scrap broker and processor; Nu-Iron Unlimited and Nucor Steel Louisiana, two facilities that produce direct reduced iron used by the steel mills; and our natural gas production operations.

Net interest expense on long-term debt, charges and credits associated with changes in allowances to eliminate intercompany profit in inventory, profit sharing expense and stock-based compensation are shown under Corporate/eliminations. Corporate assets primarily include cash and cash equivalents, short-term investments, allowances to eliminate intercompany profit in inventory, deferred income tax assets, federal and state income taxes receivable and investments in and advances to affiliates.

Nucor’s results by segment for the second quarter and first six months of 2019 and 2018 were as follows (in thousands):

	Three Months (13 Weeks) Ended						Six Months (26 Weeks) Ended
	June 29, 2019			June 30, 2018			June 29, 2019			June 30, 2018
Net sales to external customers:
Steel mills	$	3,703,447		$	4,169,539		$	7,652,849		$	7,750,233
Steel products		1,750,183			1,738,370			3,404,705			3,207,081
Raw materials		442,356			552,865			935,056			1,071,879
	$	5,895,986		$	6,460,774		$	11,992,610		$	12,029,193
Intercompany sales:
Steel mills	$	814,548		$	1,065,780		$	1,716,771		$	1,964,106
Steel products		54,396			50,907			117,201			86,677
Raw materials		2,430,487			3,155,268			4,854,356			5,764,212
Corporate/eliminations		(3,299,431	)		(4,271,955	)		(6,688,328	)		(7,814,995	)
	$	-		$	-		$	-		$	-
Earnings (loss) before income taxes and noncontrolling interests:
Steel mills	$	578,920		$	961,784		$	1,268,318		$	1,522,287
Steel products		116,084			155,766			193,517			241,580
Raw materials		21,709			134,995			74,932			209,542
Corporate/eliminations		(182,091	)		(338,844	)		(312,529	)		(543,796	)
	$	534,622		$	913,701		$	1,224,238		$	1,429,613

	June 29, 2019		December 31, 2018
Segment assets:
Steel mills	$	9,204,020	$	9,244,086
Steel products		4,770,901		4,734,636
Raw materials		3,259,940		3,492,126
Corporate/eliminations		891,619		449,740
	$	18,126,480	$	17,920,588