CHARLOTTE, N.C., June 15, 2017 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today guidance for its second quarter ending July 1, 2017. Nucor expects second quarter results to be in the range of $1.00 to $1.05 per diluted share. This range is a decrease compared to the first quarter of 2017 consolidated net earnings of $1.11 per diluted share, but compares favorably to the second quarter of 2016 earnings of $0.76 per diluted share. The forecasted second quarter results would represent Nucor's best reported second quarter performance since 2008.
Included in the first quarter of 2017 results were inventory related purchase accounting charges of $9.8 million, or $0.02 per diluted share, associated with the recent acquisitions of Southland Tube and Republic Conduit.
We expect decreased performance of our steel mills segment, particularly of our sheet mills and bar mills, in the second quarter of 2017 as compared to the first quarter of 2017. Market conditions for hot-rolled sheet products have been more challenging than we expected earlier in the quarter when we provided our qualitative guidance due to aggressive competition. As anticipated, our plate mills are expected to have improved profitability in the second quarter of 2017 as compared to the first quarter of 2017. The performance of our downstream products segment is expected to improve in the second quarter of 2017 as compared to the first quarter of 2017, but we expect the performance of this segment in the second quarter of 2017 to be decreased from the second quarter of 2016. Nonresidential construction markets continue an overall positive trend, but conditions in the second quarter of 2017 have not been as robust as previously expected. Our raw materials segment's performance is expected to increase in the second quarter of 2017 as compared to the first quarter of 2017 due to the profitable performance of both of our direct reduced iron facilities.
Imports continue to negatively impact the U.S. steel industry. Through the first five months of 2017, finished steel imports have increased an estimated 14% compared to the same period last year and account for an estimated 26% share of the U.S. market. However, several recently completed and ongoing trade cases are helping to stop the flood of dumped and subsidized products from foreign producers. Final determinations in the cut-to-length plate trade cases are having a positive impact as steel imports of these products have decreased in the first five months of this year compared to the same period last year. In May, the government issued final determinations in the U.S. industry's trade cases against cut-to-length steel plate imports from twelve countries because of injury that has occurred from unfairly traded imports in this market. We believe that these final determinations will address all dumping and subsidies associated with these cases. Trade cases addressing imports of steel concrete reinforcing bar (rebar) and steel wire rod are also in progress. We believe these cases should provide positive results as they work their way through the legal process over the next several months. Last month, the U.S. Commerce Department announced final antidumping duties in the rebar case against Japan and Turkey, as well as final countervailing duties on rebar imports from Turkey. Also in May, the government determined that there is a reasonable indication that the U.S. steel industry is materially injured or threatened with material injury by reason of carbon and certain alloy steel wire rod imports from ten countries. As a result, the government will continue its wire rod antidumping and countervailing duty investigations, and is expected to issue preliminary duty determinations in the coming months.
Nucor and its 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; hollow structural section tubing; electrical conduit; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating; 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) competitive pressure on sales and pricing, including competition from imports and substitute materials; (2) 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; (3) market demand for steel products; and (4) energy costs and availability. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's fiscal 2016 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