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Nucor Announces Guidance for First Quarter Earnings
03/17/2011 - Nucor says it expects to report earnings in the range of $0.30 to $0.35 per diluted share for its first quarter ending April 2, 2011.
Nucor Corp. says it expects to report earnings in the range of $0.30 to $0.35 per diluted share for its first quarter ending April 2, 2011.
The first quarter guidance compares to a loss of $0.04 per diluted share in the previous quarter (4Q-2010) and earnings of $0.10 per diluted share in the year-ago first quarter (1Q-2010). Projected results include an estimated LIFO charge of $31 million ($0.06 per diluted share) compared to charges of $23 million ($0.04 per diluted share) in the previous quarter (4Q-2010) and $24 million ($0.05 per diluted share) in the year-ago first quarter (1Q-2010).
The company noted that its profitability has improved each month — as expected — from the beginning of the quarter to the end of the quarter, as utilization rates increased and as price increases for steel mill products caught up with higher raw material costs. The company expects this trend to continue through the second quarter.
While the company continues to believe that end markets are experiencing some real demand improvement, some of the improvement is due to steel buyers reacting to increasing steel prices. Improvement in real demand is most evident in products sold to the manufacturing/industrial sector, including special bar quality products, sheet and plate.
According to Nucor, the most challenging markets for its products continue to be those associated with residential and non-residential construction. While the market for long products continues to be hampered by weak construction markets and some import pressure, particularly in reinforcing bar, the company has experienced some demand improvement due to restocking.
Nucor and affiliates manufacture steel products, with operating facilities primarily in the U.S. and Canada. Products produced include carbon and alloy steel bars, beams, sheet and plate; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.
