Nucor Announces Guidance For Its Second Quarter Earnings
CHARLOTTE, N.C., June 13, 2013 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today guidance for its second quarter ending June 29, 2013. Nucor expects second quarter results to be in the range of $0.25 to $0.30 per diluted share. This range is similar to first quarter 2013 earnings of $0.26 per diluted share and represents a decrease from the second quarter of 2012 earnings of $0.35 per diluted share.
Projected second quarter results include no LIFO charge as compared with a charge of $18.0 million ($0.03 per diluted share) in the first quarter of 2013 and a credit of $14.5 million ($0.03 per diluted share) in the second quarter of 2012. Also affecting earnings in the second quarter of 2012 was a non-cash impairment charge of $30.0 million ($0.09 per diluted share) related to our Duferdofin Nucor S.r.l. joint venture and a non-cash charge of $8.5 million ($0.02 per diluted share) related to purchase accounting adjustments and the elimination of profit associated with our steel mills' sales to Skyline Steel LLC following the acquisition of that business in June of 2012.
Overall operating performance in the steel mills segment is down compared to the first quarter of 2013, with weaker performance in sheet and structural steel somewhat offset by improvement in plate. As we expected, our fabricated construction products businesses (rebar fabrication, joist and decking, and pre-engineered metal buildings) are projected to return to profitability in the second quarter after the typical seasonal slowdown in the first quarter led to a modest loss. Our raw materials segment is also expected to report stronger results in the second quarter, reflecting normalized operations at our Trinidad Direct Reduced Iron facility following an unplanned 18 day outage in the first quarter. 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 ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.
Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. The words "believe," "expect," "project," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) the sensitivity of the results of our operations to prevailing steel prices and the changes in the supply and cost of raw materials, including scrap steel; (2) market demand for steel products; (3) energy costs and availability; and (4) competitive pressure on sales and pricing, including competition from imports and substitute materials. These and other factors are outlined in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2012 Annual Report on Form 10-K, Item IA. Risk Factors. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them.
SOURCE Nucor Corporation