By Tess Stynes
Nucor Corp. said its first-quarter earnings fell 39% as the
steelmaker's margins and selling prices remained under pressure
from increased imports.
North Carolina-based Nucor reported shipments to outside
customers declined 9% and average selling prices dropped 5% during
the latest quarter.
During January, the company said it planned to reduce production
to support prices, which were at their lowest levels in five years.
The company's pipe-and-tube segment has been hurt by competition
from imports and low crude-oil prices, which have led
exploration-and-production companies to rein in spending.
In its news release on Thursday, Nucor said its automotive
markets remained strong and it continues to see improving demand in
nonresidential construction markets.
Nucor expects its second-quarter earnings will improve somewhat
from the first quarter. While steel-mill margins are expected to
increase, they likely will remain under pressure because selling
prices haven't fully stabilized and imports remain high, Nucor
stated.
Overall, Nucor reported a profit of $67.8 million, or 21 cents a
share, down from $111 million, or 35 cents a share, a year earlier.
The company had projected per-share earnings of 10 cents to 15
cents.
Revenue decreased 14% to $4.4 billion, below estimates of
analysts polled by Thomson Reuters for $4.71 billion.
Write to Tess Stynes at tess.stynes@wsj.com
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