Nucor Announces Guidance for Third Quarter Earnings
09/17/2013 - Nucor Corporation announced guidance for its third quarter ending 28 September 2013 noting that the strongest end markets continue to be in manufactured goods including energy and automotive.
Nucor Corporation announced guidance for its third quarter ending 28 September 2013. Nucor expects third quarter results to be in the range of US$0.35 to US$0.40 per diluted share. This range represents an increase over both second quarter of 2013 earnings of US$0.27 per diluted share and third quarter of 2012 earnings of US$0.35 per diluted share.
Projected third quarter results include an US$18.0 million LIFO credit (US$0.03 per diluted share) as compared with no LIFO charge in the second quarter of 2013 and a credit of US$84.0 million (US$0.16 per diluted share) in the third quarter of 2012. Also affecting earnings in the third quarter of 2012 was a non-cash charge of US$28.2 million (US$0.06 per diluted share) related to inventory purchase accounting adjustments following the acquisition of Skyline Steel LLC in June of 2012, as well as a loss on the sale of the assets of Nucor Wire Products Pennsylvania, Inc. of US$17.6 million (US$0.04 per diluted share).
Overall operating performance in the steel mills segment has improved compared to the second quarter of 2013, with stronger performance in sheet and structural steel. Sheet steel profitability improved compared to the second quarter as a result of competitor supply disruptions, customer inventory restocking and some market demand improvement. Structural steel results improved due to Nucor Yamato Steel's higher production following its 17 day planned outage during the second quarter and customer inventory restocking. Our fabricated construction products businesses (rebar fabrication, joist and decking, and pre-engineered metal buildings) are also expected to improve their profitability from second quarter levels. Our raw materials segment is expected to report weaker results in the third quarter, due mainly to increased start-up costs at our new Direct Reduced Iron (DRI) plant in Louisiana. The Louisiana DRI facility is in the final stages of hot commissioning. We expect production to begin within the next few weeks. We believe that the increased losses at Louisiana will be partially offset by improved results from The David J. Joseph Company. Thus far in 2013 non-residential construction markets continue to lack sustained momentum, but they are slowly improving from historically low levels. The strongest end markets continue to be in manufactured goods including energy and automotive.
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 ferroalloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.
