The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

Nucor Announces Guidance for Its Third Quarter Earnings

Tuesday, September 14, 2010

Nucor Announces Guidance for Its Third Quarter Earnings09:00 EDT Tuesday, September 14, 2010CHARLOTTE, N.C., Sept. 14 /PRNewswire-FirstCall/ -- Nucor Corporation (NYSE: NUE) announced today guidance for its third quarter ending October 2, 2010.  Nucor expects third quarter results to be in the range of $0.05 to $0.10 per diluted share, compared to earnings of $0.29 per diluted share in the second quarter of 2010, $0.10 per diluted share in the first quarter of 2010 and a loss of $0.10 per diluted share in the third quarter of 2009.  Excluding LIFO, third quarter performance is an improvement over the first quarter but down significantly from the second quarter due to lower margins caused by higher scrap costs and the inability to pass along these price increases.  Projected third quarter results include an estimated LIFO charge of $67 million compared to charges of $24 million and $67 million in the first and second quarters of 2010, respectively, and a credit of $120 million in the third quarter of 2009.  The estimated quarterly LIFO charge is higher than the charge of $45.5 million anticipated at the time we gave our qualitative guidance.We stated in our qualitative guidance given in late July that ?the continuation of the upward trend experienced through the first half of the year is by no means clear at present.  There is a general slowdown taking place across all product lines as the overall economy has entered into a new period of uncertainty.?   Our third quarter results will unfortunately confirm these concerns, and a general slowdown has indeed occurred from second quarter, particularly in our flat rolled business.As expected, the most challenging markets for our products continue to be those associated with residential and non-residential construction, which continue to show little, if any, strength.  This is particularly true for our downstream businesses.Nucor and 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; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; 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? 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) 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; (2) market demand for steel products; (3) energy costs and availability; and (4) competitive pressure on sales and pricing, including pressure from imports and substitute materials.  These and other factors are outlined in Nucor?s regulatory filings with the Securities and Exchange Commission, including those in Nucor?s December 31, 2009 Annual Report on Form 10-K.  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. www.nucor.comSOURCE Nucor CorporationFor further information: Nucor Executive Offices, +1-704-366-7000, Fax, +1-704-362-4208