Releasing its quarterly guidance on Thursday, Nucor forecast earnings in the range of US$1 to US$1.05 per share, down approximately 7% from the first quarter of the year.  

The forecast falls below analysts’ average expectations of US$1.22 per share, according to the Reuters new service. 

Nucor said the decline is mostly attributable to its bar and sheet mills. “Market conditions for hot-rolled sheet products have been more challenging than we expected earlier in the quarter when we provided our qualitative guidance due to aggressive competition," it said. 

Meanwhile, the steelmaker said it expects to see improvement in its plate mills as well as its downstream product and raw materials divisions.  

It said non-residential construction, a significant driver of steel demand, remains healthy overall. But it said that second-quarter conditions have not been “as robust as previously expected.” 

Nevertheless, the company said it expects to report its best second quarter since 2008.