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