Nucor expects weaker earnings for fourth quarter

Wednesday, 16 December 2015 01:53:31 (GMT+3)   |   San Diego
       

Nucor Corporation announced Wednesday guidance for the fourth quarter ending December 31, 2015.  Nucor expects fourth quarter results to be in the range of $0.15 to $0.20 per diluted share.  This range is a decrease from both the fourth quarter of 2014 earnings of $0.65 per diluted share and the third quarter of 2015 earnings of $0.71 per diluted share. 
    
Operating performance at the steel mills segment in the fourth quarter of 2015 is expected to decrease from the third quarter of 2015. The company said in a statement that sheet and bar steel mills in particular have experienced decreased margins as selling prices have eroded more than the decline in raw material pricing, due to continued deterioration in global steel markets amplified by global excess capacity and historically high import levels.

The statement said that although the trade remedy process has not moved as quickly as the company would like, they believe that preliminary antidumping and countervailing duties and affirmative critical circumstances findings in the steel sheet cases should have a positive impact on domestic sheet mills in the first half of 2016. Nonresidential construction markets, although improved from 2014, are beginning to slow mainly due to seasonal factors.  Energy, heavy equipment and agricultural markets remain weak. The automotive market remains strong.
  
The performance of Nucor’s downstream products segment is expected to decrease from the third quarter of 2015 due to typical fourth quarter seasonality, but it is expected to increase from the fourth quarter of 2014.  This performance compared to the prior year reflects the gradual improvement in nonresidential construction markets. 

Nucor expects lower performance in the raw materials segment due to lower scrap and metallic commodity prices at the scrap processing businesses. During the fourth quarter of 2015, Nucor will complete a planned maintenance outage at Nucor Steel Louisiana.  The Louisiana direct reduced iron (DRI) facility will not resume operations after completion of the planned maintenance outage until market prices of alternative raw materials improve from current depressed levels.
  

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