Nucor Announces Guidance For Its Second Quarter Earnings
06/19/2015 - Nucor Corporation announced guidance for its second quarter ending July 4, 2015.
The company expects second quarter results to be in the range of $0.20 to $0.25 per diluted share. This range is a decrease from the second quarter of 2014 earnings of $0.46 per diluted share and is comparable to the first quarter of 2015 earnings of $0.21 per diluted share.
Projected second quarter results include a LIFO credit of $91.5 million ($0.18 per diluted share), compared to a credit of $16.5 million ($0.03 per diluted share) in the first quarter of 2015 and no charge or credit in the second quarter of 2014.
Nucor's overall operating performance at the steel mills segment in the second quarter of 2015 is expected to decrease from the first quarter of 2015. Pricing has begun to stabilize, but the company experienced some margin erosion as the decrease in average sales prices during the quarter slightly outpaced the decrease in the average cost of raw materials consumed. Pricing remains under pressure from exceptionally high levels of imports that continue to flood the domestic market in the second quarter of 2015. Imports accounted for an estimated 32% of the finished steel market in the first five months of 2015, compared with an estimated 26% in the first five months of 2014. According to the report, the company is somewhat encouraged to see a slight decrease in imports since the beginning of the year according to data published by the U.S. Department of Commerce. However, energy markets remain challenging as domestic rig counts continue to decline and the destocking of the energy supply chain is not yet complete.
To continue reading Nucor's guidance for Q2 earnings, click here.
Nucor and its 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.
Projected second quarter results include a LIFO credit of $91.5 million ($0.18 per diluted share), compared to a credit of $16.5 million ($0.03 per diluted share) in the first quarter of 2015 and no charge or credit in the second quarter of 2014.
Nucor's overall operating performance at the steel mills segment in the second quarter of 2015 is expected to decrease from the first quarter of 2015. Pricing has begun to stabilize, but the company experienced some margin erosion as the decrease in average sales prices during the quarter slightly outpaced the decrease in the average cost of raw materials consumed. Pricing remains under pressure from exceptionally high levels of imports that continue to flood the domestic market in the second quarter of 2015. Imports accounted for an estimated 32% of the finished steel market in the first five months of 2015, compared with an estimated 26% in the first five months of 2014. According to the report, the company is somewhat encouraged to see a slight decrease in imports since the beginning of the year according to data published by the U.S. Department of Commerce. However, energy markets remain challenging as domestic rig counts continue to decline and the destocking of the energy supply chain is not yet complete.
To continue reading Nucor's guidance for Q2 earnings, click here.
Nucor and its 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.
