CHARLOTTE, N.C., Sept. 16, 2019 /PRNewswire/ -- Nucor
Corporation (NYSE: NUE) today announced guidance for its third
quarter ending September 28, 2019.
Nucor expects third quarter earnings to be in the range of
$0.75 to $0.80 per diluted share. This range is a decrease
compared to second quarter of 2019 earnings of $1.26 per diluted share and a decrease relative
to third quarter of 2018 earnings of $2.13 per diluted share.
Included in the third quarter of 2018 results was a non-cash
impairment charge of $110.0 million,
or $0.26 per diluted share, related
to our proved producing natural gas well assets. Also included in
the third quarter of 2018 earnings was a benefit of $24.8 million, or $0.06 per diluted share, related to insurance
recoveries.
The performance of the steel mills segment in the third quarter
of 2019 is expected to decrease compared to the second quarter of
2019 due primarily to lower prices for sheet and plate steel.
Although we still see stability in most of the end use markets that
we serve, there has been some softening in automotive, agricultural
products and power transmission markets.
The profitability of the steel products segment in the
third quarter of 2019 is expected to improve as compared to the
second quarter of 2019, as nonresidential construction market
conditions remain strong. In addition, recently implemented
efficiency initiatives in rebar fabrication and metal buildings are
enhancing performance from those businesses.
The performance of the raw materials segment is expected to
decrease in the third quarter of 2019 as compared to the second
quarter of 2019 due to further margin compression in the Company's
direct reduced iron (DRI) businesses. Last week our DRI facility in
Louisiana began a planned outage
that is expected to last until mid-November.
About Nucor
Nucor and its affiliates are manufacturers
of steel and steel products, with operating facilities 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; precision castings; 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 hot briquetted iron /
direct reduced iron; supplies ferro-alloys; and processes ferrous
and nonferrous scrap. Nucor is North
America's largest recycler.
Forward-Looking Statements
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
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 2018 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