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Nucor Provides Guidance for Second Quarter Earnings
06/16/2011 - Nucor announced guidance for its second quarter ending July 2, including the expectation of results in the range of $0.75 to $0.80 per diluted share.
Nucor Corp. announced guidance for its second quarter ending July 2, including the expectation of results in the range of $0.75 to $0.80 per diluted share.
Expected results represent an increase of 160 to 180% over second quarter 2010 earnings of $0.29 per diluted share, and an increase of 50 to 60% over first quarter 2011 earnings of $0.50 per diluted share.
Projected second quarter results include an estimated LIFO charge of $31 million ($0.06 per diluted share) compared to charges of $67 million ($0.13 per diluted share) in the second quarter of 2010 and $31 million ($0.06 per diluted share) in the first quarter of 2011.
The company noted that profitability has significantly improved as expected from the first quarter, as price increases for steel mill products caught up with higher raw material costs. The company said it continues to believe that end markets such as automotive, heavy equipment, energy, and general manufacturing have experienced some real demand improvement, as the second-quarter increases were achieved despite the customer rebalancing of supply chain inventories, the impact of the devastating Japanese earthquake/tsunami and the lost sales, production and shipments from the weather-related power outages and historic river flooding in North America. The company said that the third quarter should not see a continuation of these weather-related issues.
The company said that improvement in real demand is most evident in special bar quality, sheet and plate products sold to the manufacturing, industrial and energy sectors. The company’s most challenging markets continue to be those associated with residential and non-residential construction.
The company does not expect continued stability in order rates as raw material prices have been less volatile than in 2010.
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.
