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Nucor Announces Guidance for Fourth Quarter Earnings

12/18/2012 - Nucor said lower steel mill margins are impacting its bar and plate mills, reflecting the cumulative impact of high import levels and general economic uncertainty, while sheet mill margins are improved in the fourth quarter.

Nucor Corporation announced guidance for its fourth quarter ending 31 December 2012. Nucor expects fourth quarter results to be in the range of $0.25 to $0.30 per diluted share. This represents a decrease from the third quarter of 2012 earnings of $0.35 per diluted share and from the fourth quarter of 2011 earnings of $0.43 per diluted share. Projected fourth quarter results include an estimated LIFO credit of $29 million ($0.06 per diluted share) compared to a credit of $84 million in the third quarter of 2012 ($0.16 per diluted share) and a charge of $52 million in the fourth quarter of 2011 ($0.11 per diluted share). 
Third quarter of 2012 results include non-cash inventory related purchase accounting charges of approximately $28.2 million ($0.06 per diluted share) associated with our acquisition of Skyline Steel LLC, and a loss on the sale of the assets of Nucor Wire Products Pennsylvania, Inc. of $17.6 million ($0.04 per diluted share). Fourth quarter of 2011 results were impacted by a non-cash gain of $29.0 million ($0.06 per diluted share) for the correction of an actuarial calculation related to the medical plan covering certain eligible early retirees.
As it expected, the company’s profitability has decreased in the fourth quarter compared to the third quarter of 2012.   This decrease is mainly due to a smaller LIFO credit in the fourth quarter and lower margins in the steel business. Lower steel mill margins are primarily impacting our bar and plate steel mills reflecting the cumulative impact of high import levels and general economic uncertainty. Sheet mill margins are improved in the fourth quarter after bottoming in the third quarter of 2012.
Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; 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.