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Nucor Announces Third Quarter Earnings Guidance
09/16/2011 - Nucor Corp. is forecasting results in the range of $0.45 to $0.55 per diluted share for its third quarter ending October 1, 2011.
Nucor Corp. announced guidance for its third quarter ending October 1, 2011, forecasting results in the range of $0.45 to $0.55 per diluted share.
Nucor’s third-quarter guidance represents a decrease of approximately 40 to 50% from earnings of $0.94 per diluted share in the previous quarter (2Q-2011), but an increase of 540% - 690% over earnings of $0.07 per diluted share in the year-ago third quarter.
Projected results include an estimated LIFO charge of $29 million ($0.06 per diluted share) compared to charges of $32 million ($0.06 per diluted share) in the previous quarter (2Q-2011) and $50 million ($0.10 per diluted share) in the year-ago third quarter.
As the company had expected, its profitability deteriorated in the third quarter compared to the second quarter of 2011 but continues to exceed 2010 levels. The company said that recent deterioration reflects lower steel prices and metal margins, particularly for sheet mill products, due to new domestic supply, increased imports and continued high raw material costs.
Despite recent pricing increases in sheet mill products, the company said that fundamentals are still difficult at best. On the positive side, scrap prices have remained relatively stable during the third quarter, and end markets such as automotive, heavy equipment, energy and general manufacturing have continued to experience some real demand improvement, benefiting special bar quality, sheet and plate products.
The company does expect continued stability in order rates as raw material prices have been less volatile than in 2010, and customers continue to operate with minimal inventories.
Nucor plans to provide qualitative guidance for fourth quarter 2011 earnings in the company’s third quarter 2011 earnings release.
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.
