NUE Nucor Corporation

By Tess Stynes 

Nucor Corp. said its second-quarter earnings rose 87% from a year earlier as the steelmaker benefited from lower scrap metal and energy costs and steel price trends continued to improve.

The Charlotte, N.C., company said average selling prices and volume improved from the first quarter and it expects another strong sequential improvement in its earnings for the third quarter.

Nucor said the higher steel prices have been spurred partly by inventory reductions and weaker levels of imports since the Commerce Department's move to impose tariffs in response to a surge of low-price steel imports, especially from China.

However, Nucor said that since roughly half of its sheet steel shipment are under contracts that there will be a lag before the company gets the full benefit of the improved pricing trends.

Over all, Nucor reported a profit of $233.8 million, or 73 cents a share, up from $124.8 million, or 39 cents a share, a year earlier. The company expected per-share earnings of 65 cents to 70 cents.

Revenue decreased 2.6% to $4.25 billion, below analysts' estimates for revenue of $4.5 billion.

Average scrap metal prices declined 14% from a year earlier.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

July 21, 2016 10:38 ET (14:38 GMT)

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