NEW YORK Nucor
Corp. expects its fourth-quarter earnings to be lower than a
year earlier due to weaker raw materials and bar and structural
performance, as well as several one-time miscellaneous charges,
despite a strong sheet steel performance.
Nucor expects to generate fourth-quarter earnings of between 35
and 40 cents per diluted share, down from 46 cents in the third
quarter and 43 cents in the fourth quarter of 2012.
The company has seen a
decreased performance at its bar and structural mills due
mainly to extended planned outages as a result of upgrades at
its special bar quality mill in Norfolk, Neb., and its
structural mill in Blytheville, Ark., Nucor said Dec. 17 in its
fourth-quarter earnings guidance.
The company expects
its raw materials segment to see weaker results due to
increased start-up costs at the companys St. James
Parish, La., direct-reduced iron plant, where a storage dome
collapsed in September.
End markets remained
mixed, with nonresidential construction only slowly improving,
Nucor said. "Thus far in 2013 nonresidential markets continue
to lack sustained momentum, but they are slowly improving from
historically low levels. The strongest end markets continue to
be in manufactured goods, including energy and automotive."
sheet steel performance improved in the second half of this
year due to a series of price increases and rising demand.
"Sheet steel profitability has continued to improve in spite of
the three-week planned outage at our sheet mill in Berkeley
County, S.C., to accommodate major equipment upgrades related
to our wide and light production expansion," Nucor said.
write-downs also will contribute to Nucors earnings
decline, including a $30-million lifo expense vs. a
$71.9-million credit in the fourth quarter of 2012. The company
also will post a non-cash charge this quarter of $12 million
relating to inventory purchase accounting adjustments after its
acquisition of Skyline Steel LLC.