Nucor Corporation has announced consolidated net earnings of USD 778.2 million or USD 2.45 per diluted share for the full year 2011, an increase of more than fivefold over net earnings of USD 134.1 million or USD 0.42 per diluted share for the full year 2010.
Nucor reported consolidated net earnings of USD 137.1 million or USD 0.43 per diluted share, for the fourth quarter of 2011, compared with a net loss of USD 11.4 million, or USD 0.04 per diluted share, in the fourth quarter of 2010 and net earnings of USD 181.5 million or USD 0.57 per diluted share, in the third quarter of 2011.
The 2011 results were impacted by a non cash gain of USD 29.0 million (USD 0.06 per diluted share) recognized in the fourth quarter for the correction of an actuarial calculation related to the medical plan covering certain eligible early retirees. This calculation did not have a material impact on any previously reported results.
Nucor incurred a charge to value inventories using the last in, first out method of accounting of USD 142.8 million (USD 0.28 per diluted share) for the full year 2011, compared with a charge of USD 164.0 million in 2010 (USD 0.32 per diluted share). The LIFO charge in the fourth quarter of 2011 was USD 51.8 million (USD 0.11 per diluted share), compared with a charge of USD 28.0 million in the third quarter of 2011 (USD 0.05 per diluted share) and a charge of USD 23.0 million in the fourth quarter of 2010 (USD 0.04 per diluted share). The fourth quarter LIFO charge was approximately USD 27 million less than anticipated at the time we gave our quantitative guidance.
Pre operating and start up costs of new facilities were USD 97.1 million for the full year 2011, a decrease from USD 174.8 million for the full year 2010. Pre operating and start up costs were USD 20.8 million in the fourth quarter of 2011 compared to USD 17.0 million in the third quarter of 2011 and USD 39.0 million in the fourth quarter of 2010. The decrease in pre operating and start up costs from the prior year was due to several projects coming out of start up, including the special bar quality mill in Memphis, Tennessee, the wire rod products mill in Kingman, Arizona, and the galvanizing line in Decatur, Alabama.
For the full year 2011, Nucor's consolidated net sales increased 26% to USD 20.02 billion as compared with USD 15.84 billion for 2010. Average sales price per ton increased 21% from full year 2010. Total tons shipped to outside customers were 23,044,000 tons, an increase of 5% over 2010 levels.
Nucor's consolidated net sales decreased 8% to USD 4.83 billion in the fourth quarter of 2011 as compared with USD 5.25 billion in the third quarter of 2011 and increased 25% compared with USD 3.85 billion in the fourth quarter of 2010. Average sales price per ton decreased 6% from the third quarter of 2011 and increased 18% from the fourth quarter of 2010. Total tonnes shipped to outside customers were 5,683,000 tonnes in the fourth quarter of 2011, a decrease of 2% from the third quarter of 2011 and an increase of 7% over last year's fourth quarter.
The average scrap and scrap substitute cost per ton used for the full year 2011 was USD 439, an increase of 25% over USD 351 in 2010. The average scrap and scrap substitute cost per ton used in the fourth quarter of 2011 was USD 441, a decrease of 2% from USD 449 in the third quarter and an increase of 23% over USD 359 in the fourth quarter of 2010.
Overall operating rates at our steel mills were 74% for the full year 2011, increasing from 70% in 2010 and 54% in 2009. Steel mill utilization rates for the fourth quarter of 2011 (71%) decreased from the third quarter (74%) and increased from last year's fourth quarter (68%).
For the full year 2011, total energy costs increased approximately USD 1 per tonne from the prior year primarily due to higher electricity unit costs. In the fourth quarter of 2011, total energy costs decreased approximately USD 5 per tonne from the third quarter of 2011, primarily due to lower electricity unit costs, and were unchanged from the fourth quarter of 2010.
Construction is continuing on our 2,500,000 tonne direct reduced iron facility in Louisiana. The majority of the equipment will begin arriving in 2012, and we are on schedule for completion of construction and beginning of start up in mid 2013.
Our liquidity position remains strong with USD 3.15 billion in cash and cash equivalents, short term investments, and restricted cash and investments. In December 2011, we increased the amount of our revolving credit facility to USD 1.5 billion and extended its maturity date to December 2016. We have no outstanding borrowings under the revolving credit facility.
In December 2011, Nucor's board of directors increased the quarterly cash dividend to USD 0.365 per share. The dividend is payable on February 10, 2012 to stockholders of record on December 30th 2011 and is Nucor's 155th consecutive quarterly cash dividend. Nucor continues a record of 39 consecutive years of increases to its regular dividend.
Fourth quarter earnings of USD 0.43 per share were significantly better than our quantitative guidance of between USD 0.22 and USD 0.27 per share, but as we expected were lower than third quarter 2011 earnings of USD 0.57 per share. The declining trend in steel margins appears to have bottomed overall as December was our most profitable month in the fourth quarter. The trend is more positive at the bar mills and beam mills where margins per ton improved in the fourth quarter compared to the third quarter of 2011. Margins at our plate and sheet mills continued to be impacted by higher import levels that began in the second quarter of 2011 and new domestic sheet mill supply. Selling prices have recently trended up for both our plate and sheet steel mills while scrap prices have been flat to slightly down. We therefore expect earnings in the first quarter of 2012 to be improved from fourth quarter 2011 levels, after adjusting for one time benefits received in the fourth quarter. End markets such as automotive, heavy equipment, energy and general manufacturing have continued to experience improvements in demand, benefiting special bar quality, sheet and plate products. We are also seeing small but encouraging signs of improvement in our construction products business.
