Nucor Corp.'s (NUE) third-quarter earnings rose 34% as the steel
maker reported improved performance at its steel mills offset
impacts from weak average selling prices.
Steel industry demand has broadly been benefiting from the
resurgence of U.S. car makers as well as increased oil and gas
drilling, though lately performance in the sector has been under
pressure from a global oversupply that has weighed on prices.
Due to typically low volumes in the fourth quarter and planned
outages at a number of operations, the company said it expects to
see moderately lower earnings for the period.
Nucor reported a profit of $147.6 million, or 46 cents a share,
up from $110.3 million, or 35 cents a share, a year earlier. The
latest period included write-downs of three cents a share related
to a dome collapse at its reduced iron plant in Louisiana. The
company recently projected 35 cents to 40 cents, including
inventory-related items.
Revenue increased 2.9% to $4.94 billion, above analysts'
estimates of $4.8 billion.
Average selling prices declined 4% in the quarter but were
offset by increased mill production and shipments as well as lower
costs for scrap and scrap substitutes.
Shares recently traded up 31 cents at $50.12. The stock is up
15% this year.
Write to Tess Stynes at tess.stynes@wsj.com
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