CHARLOTTE, N.C., June 17, 2019 /PRNewswire/ -- Nucor
Corporation (NYSE: NUE) today announced guidance for its second
quarter ending June 29, 2019. Nucor
expects second quarter earnings to be in the range of $1.20 to $1.25 per
diluted share. This range is a decrease compared to first quarter
of 2019 earnings of $1.63 per diluted
share and a decrease relative to second quarter of 2018 earnings of
$2.13 per diluted share.
Included in the first quarter of 2019 results was a benefit of
$33.7 million, or $0.08 per diluted share, related to the gain on
the sale of an equity method investment in the raw materials
segment.
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.
Most end-use markets remain strong or stable; market dynamics
are keeping many customers on sidelines
The performance of the steel mills segment in the second quarter
of 2019 is expected to decrease compared to the first quarter of
2019 as service center destocking is impacting order rates.
Increased domestic supply and a declining scrap price environment
have led to aggressive inventory management by our customers. We
still see stability in most of the end use markets that we serve,
with some softening in automotive.
The profitability of the steel products segment in the
second quarter of 2019 is expected to improve as compared to the
first quarter of 2019, as typical seasonal patterns and improved
weather conditions have benefited nonresidential construction
markets.
The performance of the raw materials segment is expected to
decrease in the second quarter of 2019 as compared to the first
quarter of 2019 due to further margin compression in the Company's
DRI businesses. Our DRI facility in Trinidad began a planned 25 day outage in
June.
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