Nucor Announces Guidance For Its Third Quarter Earnings
CHARLOTTE, N.C., Sept. 17, 2013 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today guidance for its third quarter ending September 28, 2013. Nucor expects third quarter results to be in the range of $0.35 to $0.40 per diluted share. This range represents an increase over both second quarter of 2013 earnings of $0.27 per diluted share and third quarter of 2012 earnings of $0.35 per diluted share.
Projected third quarter results include an $18.0 million LIFO credit ($0.03 per diluted share) as compared with no LIFO charge in the second quarter of 2013 and a credit of $84.0 million ($0.16 per diluted share) in the third quarter of 2012. Also affecting earnings in the third quarter of 2012 was a non-cash charge of $28.2 million ($0.06 per diluted share) related to inventory purchase accounting adjustments following the acquisition of Skyline Steel LLC in June of 2012, as well as a loss on the sale of the assets of Nucor Wire Products Pennsylvania, Inc. of $17.6 million ($0.04 per diluted share).
Overall operating performance in the steel mills segment has improved compared to the second quarter of 2013, with stronger performance in sheet and structural steel. Sheet steel profitability improved compared to the second quarter as a result of competitor supply disruptions, customer inventory restocking and some market demand improvement. Structural steel results improved due to Nucor Yamato Steel's higher production following its 17 day planned outage during the second quarter and customer inventory restocking. Our fabricated construction products businesses (rebar fabrication, joist and decking, and pre-engineered metal buildings) are also expected to improve their profitability from second quarter levels. Our raw materials segment is expected to report weaker results in the third quarter, due mainly to increased start-up costs at our new Direct Reduced Iron (DRI) plant in Louisiana. The Louisiana DRI facility is in the final stages of hot commissioning. We expect production to begin within the next few weeks. We believe that the increased losses at Louisiana will be partially offset by improved results from The David J. Joseph Company. 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