Nucor Corp.'s (NUE) first-quarter profit dropped 42% as the
steelmaker's production and selling prices declined, though input
costs were also down.
Nucor, the second-largest U.S. steelmaker by production, added
it expects to see some improvement in second-quarter earnings,
driven by better performance in its fabricated-construction
products and raw-materials businesses and most steel-mill product
groups.
The company added it continues to be "cautiously optimistic"
about nonresidential construction this year, as that market
improves slowly from historically low levels. However, the
strongest end markets continue to be in manufactured goods,
including energy and automotive, Nucor said.
Nucor posted a profit of $84.8 million, or 26 cents a share,
down from $145.1 million, or 46 cents a share, a year earlier. Last
month, Nucor predicted downbeat earnings of 20 cents to 25 cents a
share, saying its steel mills hadn't experienced the seasonal
improvement typical in the first quarter of each year.
Revenue was down 10% to $4.55 billion, trailing expectations of
$4.59 billion from analysts polled by Thomson Reuters.
Input costs dropped 9.5%.
The average sales price per ton fell about 7% from a year
earlier. Steel-mill shipments shrank 3.1% and mill production was
down 8.4%.
Shares closed Wednesday at $42.53 and were inactive premarket.
The stock is down 1.5% so far this year.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires