Nucor Corporation announced today guidance for its fourth quarter ending December 31, 2014. Nucor expects fourth quarter results to be in the range of $0.50 to $0.55 per diluted share. This range is comparable to the fourth quarter of 2013 earnings of $0.53 per diluted share and a decrease from the third quarter of 2014 earnings of $0.76 per diluted share. The qualitative guidance presented in the third quarter of 2014 earnings release and conference call was, "We currently expect to see a moderate decrease in earnings for the fourth quarter of 2014."
Overall operating performance at Nucor’s steel mills segment and downstream products segment for the fourth quarter of 2014 is expected to decrease compared to the third quarter of 2014 due to end of the year seasonality that is typical in the fourth quarter. Imports remain at exceptionally high levels, which are also contributing to the downward pressure on the performance of the steel mills segment. The steel mills segment has experienced some margin compression from the third quarter of 2014, as well as a decrease in volume. The company’s most recent forecast shows a larger than expected decrease in outside shipments. Newly acquired Nucor Steel Gallatin is expected to contribute profitable performance in the fourth quarter of 2014, as profits are projected to more than offset approximately $9 million ($0.02 per diluted share) of purchase accounting expenses incurred during the quarter. The operating performance of the raw materials segment is expected to be negatively impacted by an anticipated operating loss of approximately $30 million ($0.06 per diluted share) at Nucor Steel Louisiana and an expected decrease in the performance of the scrap processing business.
The production operations of Nucor Steel Louisiana have remained suspended since the equipment failure related to the process gas heater occurred on November 2, 2014. The company is continuing to make the necessary repairs to the process gas heater. Due to the lead times on the specialty steel pipes that must be replaced, Nucor currently estimates that Nucor Steel Louisiana will not be operational until late in the first quarter of 2015.