Nucor Corp. (NUE) said it expects first-quarter earnings at the
low end of its expectations due to pricing pressures and unexpected
margin weakness in its raw materials business.
Nucor, the second-largest U.S. steelmaker by production behind
U.S. Steel (X), forecast earnings of 30 cents to 35 cents a share
for the quarter, an estimate that includes an inventory-related
charge of 3 cents a share.
The company earlier this year said it expected earnings in the
first quarter to be improved over its fourth-quarter per-share
profit of 43 cents a share, after adjusting for one-time benefits
received in the fourth quarter.
The company cited a resurgence in imports and increased
competition from new domestic sheet mill supply as cause for
deterioration in steel mill pricing and margin trends.
Nucor in January reported it swung to a bigger-than-expected
fourth-quarter profit as the steelmaker said it was aided by an
uptick in steel prices in December and increased shipments,
following weaker pricing earlier in the quarter.
Shares were recently off 40 cents to $43.51.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207;
mia.lamar@dowjones.com