Nucor Announces Guidance For Its Fourth Quarter Earnings

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Dec 16, 2014, 09:00 ET

CHARLOTTE, N.C., Dec. 16, 2014 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today guidance for its fourth quarter ending December 31, 2014. Nucor expects fourth quarter results to be in the range of $0.50 to $0.55 per diluted share. This range is comparable to the fourth quarter of 2013 earnings of $0.53 per diluted share and a decrease from the third quarter of 2014 earnings of $0.76 per diluted share. The qualitative guidance presented in our third quarter of 2014 earnings release and conference call was, "We currently expect to see a moderate decrease in earnings for the fourth quarter of 2014."

Projected fourth quarter of 2014 results include an estimated LIFO credit of $41.0 million ($0.08 per diluted share), compared to a credit of $14.5 million ($0.03 per diluted share) in the third quarter of 2014 and a charge of $17.4 million ($0.04 per diluted share) in the fourth quarter of 2013. Earnings in the third quarter of 2014 included a $12.5 million charge ($0.03 per diluted share) related to the partial write down of assets within the steel mills segment. The fourth quarter of 2013 results were impacted by an out-of-period non-cash gain of $21.3 million ($0.07 per diluted share) related to a correction to deferred tax balances.

Overall operating performance at our steel mills segment and downstream products segment for the fourth quarter of 2014 is expected to decrease compared to the third quarter of 2014 due to end of the year seasonality that is typical in the fourth quarter. Imports remain at exceptionally high levels, which are also contributing to the downward pressure on the performance of the steel mills segment. The steel mills segment has experienced some margin compression from the third quarter of 2014, as well as a decrease in volume. Our most recent forecast shows a larger than expected decrease in outside shipments. Newly acquired Nucor Steel Gallatin is expected to contribute profitable performance in the fourth quarter of 2014, as profits are projected to more than offset approximately $9 million ($0.02 per diluted share) of purchase accounting expenses incurred during the quarter. The operating performance of the raw materials segment is expected to be negatively impacted by an anticipated operating loss of approximately $30 million ($0.06 per diluted share) at Nucor Steel Louisiana and an expected decrease in the performance of our scrap processing business.

The production operations of Nucor Steel Louisiana have remained suspended since the equipment failure related to the process gas heater occurred on November 2, 2014. We are continuing to make the necessary repairs to the process gas heater. Due to the lead times on the specialty steel pipes that must be replaced, we currently estimate that Nucor Steel Louisiana will not be operational until late in the first quarter of 2015.

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 discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2013 Annual Report on Form 10-K, Item 1A. 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.

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SOURCE Nucor Corporation