Nucor Corporation today announced guidance for its fourth quarter ending December 31, 2020. Nucor expects fourth quarter earnings to be in the range of $1.15 to $1.20 per diluted share. Third quarter of 2020 earnings were $0.63 per diluted share and fourth quarter of 2019 earnings were $0.35 per diluted share.
In a press release, the company said earnings in the fourth quarter of 2020 are improving compared to the third quarter of 2020 primarily due to higher pricing at Nucor’s sheet and plate mills. Nucor said its steel mills segment also continues to benefit from strong results at the bar and structural mills, however the steel products segment's earnings in the fourth quarter of 2020 are expected to decrease modestly from the third quarter of 2020 consistent with typical seasonality.
Nucor expects the profitability of the raw materials segment to increase in the fourth quarter of 2020 as compared to the third quarter of 2020 due to the improved financial performance of Nucor’s DRI facilities that are benefitting from higher prices for raw materials.
Nucor also noted that the ongoing COVID-19 pandemic continues to cause uncertainty, making it difficult to forecast future market conditions and demand trends. However, the company said the beneficial impact of recent price increases on its sheet mills' performance, as well as the strength of the company’s backlogs and overall lead times, indicates that the current quarter's momentum will continue into the first quarter of 2021, Nucor said.