CHARLOTTE, N.C., Sept. 14,
2018 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced
today guidance for its third quarter ending September 29, 2018. Nucor expects third quarter
results to be in the range of $2.35
to $2.40 per diluted share. This
range is an increase compared to the second quarter of 2018
consolidated net earnings of $2.13
per diluted share and third quarter of 2017 earnings of
$0.79 per diluted share.
Projected third quarter of 2018 results include an estimated
benefit of approximately $25 million,
or $0.06 per diluted share, related
to insurance recoveries. Included in the second quarter of 2018
results was a benefit of $23.3
million, or $0.06 per diluted
share, related to insurance recoveries. Included in third
quarter of 2017 results was a net benefit of $13.2 million, or $0.04 per diluted share, related to tax return
true-ups and state tax credits. Also included in the third quarter
of 2017 earnings was an expense of $22.5
million, or $0.05 per diluted
share, related to certain legal matters.
In our Form 10-Q for the second quarter of 2018 we stated the
following related to the proved producing natural gas well assets
impairment assessment we performed in the fourth quarter of 2017:
"Changes in the natural gas industry or a continuation of the low
price environment beyond what had already been assumed in the
analysis could cause management to revise the natural gas price
assumptions, the estimated reserves or the estimated drilling
production costs. Unfavorable revisions to these assumptions or
estimates could possibly result in an impairment of some or all of
the groups of proved well assets." In the weeks following the
filing of the Form 10-Q for the second quarter of 2018, based on
the continued deterioration in the outlook for natural gas pricing,
we determined that a triggering event occurred related to the
proved producing natural gas well assets requiring assessment for
impairment in the third quarter. While we are still in the process
of performing our impairment analysis, we believe that it is likely
that we will record an impairment charge in the third quarter of
2018 due to the impact on our impairment valuation model of the
continuation of the low price environment beyond our best estimates
utilized in our most recent impairment test. We cannot estimate the
amount of any potential impairment charge at this time, and,
therefore, have not included an estimate in the above guidance
range.
Earnings in the third quarter of 2018 are expected to continue
the trend of strong 2018 performance. We continue to believe there
is sustainable strength in steel end use markets. We expect the
performance of our steel mills segment in the third quarter of 2018
to increase compared to the second quarter of 2018 due primarily to
higher earnings at our sheet mills and plate mills, despite the
impact of both planned and weather-related outages at certain
mills. The earnings of the steel products segment are expected to
decrease in the third quarter of 2018 as compared to the second
quarter of 2018. We expect our raw materials segment's earnings in
the third quarter of 2018 to be lower as compared to the second
quarter of 2018 due to the decreased performance of our scrap
brokerage and processing operations and the decreased performance
of our DRI facilities as our Louisiana DRI facility experienced
outages for much of the third quarter.
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) U.S. and foreign trade
policies affecting steel imports or exports; (3) 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; (4) market demand for steel products; and (5) 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 2017 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