Nucor Corporation announced today guidance for its second quarter ending July 1, 2017. Nucor expects second quarter results to be in the range of $1.00 to $1.05 per diluted share. This range is a decrease compared to the first quarter of 2017 consolidated net earnings of $1.11 per diluted share, but compares favorably to the second quarter of 2016 earnings of $0.76 per diluted share. The forecasted second quarter results would represent Nucor's best reported second quarter performance since 2008.
In a press release, the company said it expects decreased performance of the steel mills segment, particularly sheet mills and bar mills, in the second quarter of 2017 as compared to the first quarter of 2017.
“Market conditions for hot-rolled sheet products have been more challenging than we expected earlier in the quarter when we provided our qualitative guidance due to aggressive competition,” the company said. “As anticipated, our plate mills are expected to have improved profitability in the second quarter of 2017 as compared to the first quarter of 2017.”
The performance of the company’s downstream products segment is expected to improve in the second quarter of 2017 as compared to the first quarter of 2017, but Nucor expects the performance of this segment in the second quarter of 2017 to be decreased from the second quarter of 2016. Nonresidential construction markets continue an overall positive trend, the company said, but conditions in the second quarter of 2017 “have not been as robust as previously expected.”
The raw materials segment's performance is expected to increase in the second quarter of 2017 as compared to the first quarter of 2017 due to the profitable performance of both of Nucor’s direct reduced iron facilities.