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Nucor Announces Guidance for Its First Quarter Earnings
03/19/2013 - Nucor Corporation announced guidance for its first quarter ending 30 March 2013, noting weakening performance in its steel sheet segment which was offset by improved profitability in the structural steel segment.
Nucor Corporation announced guidance for its first quarter ending 30 March 2013. Nucor expects first quarter results to be in the range of US$0.20 to $0.25 per diluted share. This performance is consistent with the qualitative guidance presented in the company’s fourth quarter of 2012 earnings release and conference call which stated, "We currently expect to see first quarter 2013 earnings below our results in the fourth quarter of 2012." This range represents a decrease from the first quarter of 2012 earnings of $0.46 per diluted share and fourth quarter of 2012 earnings of $0.43 per diluted share. Projected first quarter results include an estimated LIFO charge of $16.0 million ($0.03 per diluted share) compared to a credit of $71.9 million in the fourth quarter of 2012 ($0.14 per diluted share) and a charge of $14.5 million in the first quarter of 2012 ($0.03 per diluted share). Also affecting earnings in the first quarter of 2012 was a non-cash gain of $12.6 million ($0.04 per diluted share) related to the recognition of state tax credits and the adjustment of tax expense to previously filed returns.
As it expected, the company’s operating performance in the steel mills segment is flat compared to the fourth quarter of 2012. This reflects weakening performance in sheet steel offset by improved profitability for structural steel. Overall, Nucor’s steel mills have not experienced the seasonal improvement that is typical in the first quarter of the year. Its downstream steel products segment experienced a typical seasonal slowdown in the first quarter, and it therefore expects to report a modest loss for that segment following three straight quarters of profitable operating performance. Its raw materials segment is also expected to report weaker results due to an unplanned 18 day outage at its Trinidad direct reduced iron facility and weather-related effects negatively impacting the flow of scrap in our scrap processing business. Nucor continues to be cautiously optimistic about non-residential construction markets in 2013 as they continue to improve slowly from historically low levels. The strongest end markets continue to be in manufactured goods including energy and automotive. Import levels and general economic and political uncertainty continue to negatively affect Nucor’s business.
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.
