Nucor Updates Fourth Quarter Guidance
12/17/2009 - Nucor updates its guidance for the fourth quarter ending December 31, saying that it now expects results to be breakeven to slightly positive.
Nucor Corp. has updated its guidance for the fourth quarter ending December 31, 2009, saying that it now expects results to be breakeven to slightly positive.
Although results will be positively impacted by the absence of high-cost pig iron inventories at the company’s sheet mills, they also will be significantly impacted by reduced earnings in the company’s downstream, long products and scrap businesses. Nucor is forecasting steel mill operating rates down from 69% in the third quarter to below 60% in the fourth quarter.
The company noted that its anticipated performance is consistent with the qualitative guidance it gave in late October, regarding the potential negative impact of lower operating volumes and seasonal issues associated with the holidays and year-end plant shutdowns by some customers.
While anticipated results represent an improvement over losses of $0.60, $0.43 and $0.10 per diluted share in the first, second and third quarters of 2009, respectively, they compare less favorably to year-ago fourth quarter earnings of $0.34 per share.
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.
