Nucor Corporation announced Wednesday the guidance for its second quarter ending June 30, 2012. Nucor expects Q2 results to be approximately $0.35-$0.40 per diluted share, lower than Q2 2011 earnings of $0.94 per diluted share and also below Q1 2012 earnings of $0.46 per diluted share.
In a press release, Nucor explained that lower Q2 performance is "mainly due to a surge in imports, particularly rebar, plate and sheet steel, which began at the end of 2011 and has continued through the first half of 2012." The increase in arriving imports also undercut seasonal pricing momentum that is normally experience early in the calendar year. New domestic supply that ramped production in 2011, in addition to a combination of political and economic uncertainty in global markets are all affecting steel buyer confidence, according to Nucor. "In the short term, lower scrap pricing is also hurting the operating performance of our scrap processing business."
Nucor added that despite continued weak construction markets, all three of its major construction products groups--rebar fabrication, joist and decking and pre-engineered metal buildings--were profitable in May. The strongest markets continue to be manufactured goods such as heavy equipment, energy and automotive.