CHARLOTTE, N.C., March 16, 2017 /PRNewswire/ -- Nucor Corporation
(NYSE: NUE) announced today guidance for its first quarter ending
April 1, 2017. Nucor expects first
quarter results to be in the range of $1.10
to $1.15 per diluted share. This range is an increase
compared to the fourth quarter of 2016 consolidated net earnings of
$0.50 per diluted share and the first
quarter of 2016 earnings of $0.27 per
diluted share.
Projected first quarter of 2017 results include estimated
purchase accounting charges of $11.5
million, or $0.02 per diluted
share, associated with the recent acquisitions of Southland Tube
and Republic Conduit. Included in the fourth quarter of 2016
results were the effects of a change in estimate related to the
cost of certain inventories that resulted in a benefit of
$77.6 million, or $0.16 per diluted share. Included in the first
quarter of 2016 earnings were out-of-period non-cash gains
totaling $13.4 million ($0.04 per diluted share) related to a
noncontrolling interest adjustment and to tax adjustments.
The expected improvement in earnings in the first quarter of
2017 compared to the fourth quarter of 2016 is primarily due to the
performance of our steel mills segment. The increased profitability
of the steel mills segment is driven by the improved performance of
our sheet and plate mills. The profitability of the steel products
segment in the first quarter of 2017 is expected to decrease
compared to the fourth quarter of 2016 due to typical seasonality.
We are encouraged by the renewed growth in demand we are seeing in
both the nonresidential construction and energy markets. The heavy
equipment markets remain weak. The automotive markets remain
strong.
Imports continue to impact the U.S. steel industry. Important
trade cases in cut-to-length plate and rebar are in progress, which
are helping to stop the flood of dumped and subsidized products
from foreign producers, and are making sure that we can compete on
a level-playing field. In the cut-to-length plate cases filed
against twelve countries in April
2016, affirmative final determinations have been announced
on dumped and subsidized imports from Brazil, South Africa,
and Turkey, and earlier this month, the U.S. International
Trade Commission voted unanimously that the domestic industry is
being injured by dumped and subsidized plate imports from
China. We expect the
remaining plate cases to conclude in the coming months. Also,
the U.S. Department of Commerce recently announced preliminary
antidumping duties on imports of steel concrete reinforcing bar
from Japan, Taiwan, and Turkey, and preliminary
countervailing duty duties on rebar imports from Turkey. We
expect the rebar case to conclude later this year.
Nucor Steel Louisiana recently resumed operations after
experiencing an unplanned outage that began in early February
caused by an equipment failure. In addition to making the necessary
repairs resulting from the equipment failure, the team at Nucor
Steel Louisiana used the outage as an opportunity to complete
planned maintenance activities that were scheduled for later in the
year. Despite the unplanned outage at Nucor Steel Louisiana, we
expect increased profitability of the raw materials segment in the
first quarter of 2017 as compared to the fourth quarter of 2016 due
to the much improved performance of our scrap processing and
brokerage operations as well as our direct reduced iron facility in
Trinidad.
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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nucor-announces-guidance-for-its-first-quarter-earnings-300424750.html
SOURCE Nucor Corporation