By Tess Stynes
Nucor Corp. (NUE) forecast second-quarter earnings well below
analysts' expectations as the operating performance in its steel
mills business weakened from the first quarter.
Nucor, the second-largest U.S. steelmaker by production,
projected per-share earnings of 25 cents to 30 cents, while
analysts polled by Thomson Reuters most recently forecast 38
cents.
The company said a weaker performance in its sheet and
structural steel operations during the quarter was somewhat offset
by improvement in the plate steel space. Nucor also expects its
fabricated construction products businesses will return to a profit
after posting a modest loss during the first quarter.
So far this year, Nucor said, nonresidential construction
markets still lack sustained momentum, though they are slowly
improving from historically low levels.
Nucor in April reported that its first-quarter profit dropped
42% as production and selling prices declined, though input costs
were also down.
Shares were down 1.6% at $43.21 in recent premarket trading.
Through Wednesday's close, the stock is up 1.8% this year, trailing
the broader market.
Write to Tess Stynes at Tess.Stynes@dowjones.com
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