NEW YORK Nucor
Corp. said it expects to see its second-quarter earnings hold
largely unchanged from the first quarter but decline from the
year-ago period as weak performance in the sheet and structural
steel markets is partially offset by stronger plate and raw
N.C.-based steelmaker has projected a net income of 25 to 30
cents per diluted share for the three months ended June 29.
That range is similar to the 26 cents per share recorded in the
first quarter but down from 35 cents per share recorded in the
same period last year, it said in a guidance released June
Nucor noted that
second-quarter performance in its steel mills segment will
likely be down from the first quarter due to the weaker sheet
and structural steel markets, but it added that its fabricated
construction products divisions appear to be on the mend.
"As we expected, our
fabricated construction products businesses are projected to
return to profitability in the second quarter after the typical
seasonal slowdown in the first quarter led to a modest loss,"
the company said.
materials segment is also expected to report stronger results
in the second quarter, primarily due to normalized operations
at its direct-reduced iron (DRI) facility in Trinidad following
an unplanned 18-day outage in the first quarter.
second-quarter results are also expected to include no last-in
first-out charges or credits, in contrast with the $18-million
charge recorded in the first quarter and the $14.5-million
credit included in the second quarter of 2012. Also affecting
last years earnings were a non-cash impairment charge of
$30 million related to the companys Duferdofin Nucor Srl
joint venture and a non-cash charge of $8.5 million related to
its sales to Skyline Steel LLC following the acquisition of
that business in June 2012 (
amm.com, June 21).
Looking forward, the
company said that while its strongest end markets continue to
involve manufactured goods, including energy and automotive,
other segments remain less than robust.
"Thus far in 2013, nonresidential construction markets
continue to lack sustained momentum," the company said. "But
they are slowly improving from historically low levels."