NUE Nucor Corporation

By Tess Stynes 

Nucor Corp. said its third-quarter earnings fell 7.5% from a year earlier amid continued pressure on steel prices from high levels of imports.

Shares rose 2.5% to $41.32 in recent trading as the company said its per-share profit beat expectations thanks to a better-than-expected performance in its steel-mill segment and a bigger-than-expected inventory-accounting-related credit.

Charlotte, N.C.-based Nucor said its steel mill segment margins--while still under pressure from high levels of imports--improved in the latest quarter from second-quarter because of a lower average cost of inventory. The company also said the automotive market remains strong, while nonresidential construction markets are continuing to gradually improve.

Nucor and other U.S. steelmakers have sought help from the government in response to a flood of imports that have weighed on steel prices. The companies have said they are the victims of illegal trade practices.

On Thursday, Nucor said that it expects a sequential earnings decline for the current quarter owing to further weakening of global steel markets as slowing economic growth in China adds to overcapacity in the industry.

Overall, Nucor reported a profit of $227.1 million, or 71 cents a share, down from $245.4 million, or 76 cents a share, a year earlier. The latest period included an inventory-accounting related credit of 27 cents a share, while the year-earlier period included an inventory-accounting related credit of three cents a share. Nucor had previously projected per-share earnings of 45 cents to 50 cents.

Revenue decreased 26% to $4.23 billion. Analysts polled by Thomson Reuters expected revenue of $4.45 billion.

Overall, average selling prices fell 15% and shipments declined 13%.

Steel-mill production declined 9%, and sales to third parties dropped 13%.

Write to Tess Stynes at tess.stynes@wsj.com

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(END) Dow Jones Newswires

October 22, 2015 11:04 ET (15:04 GMT)

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