NUCOR CORP. : Nucor Announces Guidance For Its Second Quarter Earnings
06/15/2010| 09:05am US/Eastern
CHARLOTTE, N.C., June 15 /PRNewswire-FirstCall/ -- Nucor Corporation (NYSE: NUE) announced today guidance for its second quarter ending July 3, 2010. Nucor expects second quarter results to be in the range of $0.20 to $0.25 per diluted share, compared to earnings of $0.10 per diluted share in the first quarter of 2010 and a loss of $0.43 per diluted share in the second quarter of 2009. Consistent with the qualitative guidance given in late April, operating results excluding LIFO have improved significantly over the first quarter. Operating rates at our steel mills are similar to the first quarter, with some improvements at the beam mills and plate mills. The improved operating results are primarily due to increased margins.
Projected second quarter results include an estimated LIFO charge of $47 million compared to a charge of $24 million in the first quarter of 2010 and a credit of $125 million in the second quarter of 2009. The estimated LIFO charge is higher than anticipated at the time we gave our qualitative guidance.
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.
SOURCE Nucor Corporation