By Angela Chen
Steelmaker Nucor Corp. offered a subdued fourth-quarter outlook,
citing decreased steel-mill volume and a $30 million loss from its
Louisiana business due to equipment failure.
The company expects earnings of 50 cents to 55 cents a share,
while analysts polled by Thomson Reuters had called for 65 cents a
share.
Nucor had called for a moderate decrease in fourth-quarter
earnings, due to typical tapering off at the end of the year. In
addition, the steel mills segment has experienced a decrease in
volume, with the most recent forecast showing a
larger-than-expected decrease in outside shipments.
The company has also been hit by a $30 million operating loss at
Nucor Steel Louisiana, where activity has been suspended since a
November equipment failure, and a decrease in the performance of
the scrap processing business. Nucor Louisiana isn't expected to be
operational until late in the first quarter.
In general, the Charlotte-based firm, like other steelmakers,
has benefited from stronger energy, automotive and construction
markets.
In the most recently ended quarter, it posted a 66% increase in
profit because of rising demand for steel used in the energy and
nonresidential construction sectors. Nucor noted especially strong
demand in the U.S. for products destined for a variety of energy
uses.
Earlier this year, it agreed to pay $770 million to buy
Midwestern steel mill Gallatin from two global steelmakers,
expanding its presence in the energy market. Gallatin is expected
to contribute profitable performance in the fourth quarter.
Shares of Nucor have been down about 4% this year through
Monday's close.
Write to Angela Chen at angela.chen@dowjones.com
Access Investor Kit for Nucor Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US6703461052
Subscribe to WSJ: http://online.wsj.com?mod=djnwires