Nucor Corporation announced today guidance for its first quarter ending April 2, 2016.
Nucor expects first quarter results to be in the range of $0.20 to $0.25 per diluted share. This range is comparable to the first quarter of 2015 earnings of $0.21 per diluted share and a decrease from the fourth quarter of 2015 adjusted net earnings of $0.45 per diluted share. Fourth quarter of 2015 adjusted net earnings excludes $0.64 of impairment charges recorded during the quarter. Including these impairment charges,
Nucor's net loss for the fourth quarter of 2015 was $0.19 per diluted share.
Operating performance at the steel mills segment for the first quarter of 2016 is expected to benefit from a lower average cost of inventory at the beginning of the first quarter and a modest improvement in market conditions. Positive market factors include a small decline in import volumes and more balanced inventory levels at service center customers. Nonresidential construction markets have slowed due to seasonal factors and are expected to improve as the year progresses. Energy, heavy equipment and agricultural markets remain weak. The automotive market remains strong.
In a statement,
Nucor said “Although conditions in world markets remain uncertain, we now believe that full year 2016 profitability will be slightly improved compared to full year 2015 results, excluding the impairment charges taken in the prior year. This improved performance is driven by expected increases in the performance of the steel mills and steel products segments.”