Nucor expects lower net earnings in Q3

Monday, 16 September 2019 21:12:21 (GMT+3)   |   San Diego

Nucor today announced guidance for its third quarter ending September 28, 2019. Nucor expects third quarter earnings to be in the range of $0.75 to $0.80 per diluted share. This range is a decrease compared to second quarter of 2019 earnings of $1.26 per diluted share and a decrease relative to third quarter of 2018 earnings of $2.13 per diluted share.

In a press release, the company said the performance of the steel mills segment in the third quarter of 2019 is expected to decrease compared to the second quarter of 2019 due primarily to lower prices for sheet and plate steel.

“Although we still see stability in most of the end use markets that we serve, there has been some softening in automotive, agricultural products and power transmission markets,” the company said.

The profitability of the steel products segment in the third quarter of 2019 is expected to improve as compared to the second quarter of 2019, as nonresidential construction market conditions remain strong, the company said, adding that recently implemented efficiency initiatives in rebar fabrication and metal buildings are enhancing performance from those businesses.

The performance of the raw materials segment is expected to decrease in the third quarter of 2019 as compared to the second quarter of 2019 due to further margin compression in the company's direct reduced iron (DRI) businesses. Nucor’s DRI facility in Louisiana began a planned outage last week that is expected to last until mid-November.

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