Nucor Corp. said Thursday that its second-quarter earnings will
likely fall well below Wall Street expectations, as its steel
business continues to feel pricing pressures.
Shares, down 7.4% the last year, fell 2.4% in premarket
trading.
The Charlotte, N.C., steelmaker said it expects to post
per-share earnings of 20 cents to 25 cents, while analysts polled
by Thomson Reuters had recently expected earnings of 31 cents a
share. The quarter will end July 4.
In the prior-year period, Nucor posted per-share earnings of 46
cents.
Nucor said pricing has started to stabilize in its steel mills
segment, but margins eroded as a drop in selling prices outpaced a
drop in raw material costs.
The company said pricing pressures remain as imports continue to
flood the market.
Meanwhile, Nucor said improvements in nonresidential
construction markets should help its downstream segment in the
quarter.
In January, Nucor 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 also been hurt by
competition from imports and low crude-oil prices, which have led
exploration-and-production companies to rein in spending.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Access Investor Kit for Citigroup, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US1729674242
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