CHARLOTTE, N.C., Dec. 16, 2015 /PRNewswire/ -- Nucor
Corporation (NYSE: NUE) announced today guidance for the
fourth quarter ending December 31,
2015. Nucor expects fourth quarter results to be in the range
of $0.15 to $0.20 per diluted
share. This range is a decrease from both the fourth quarter
of 2014 earnings of $0.65 per diluted
share and the third quarter of 2015 earnings of $0.71 per diluted share.
Projected fourth quarter of 2015 results include a LIFO credit
of $181.0 million ($0.34 per diluted share), compared with a credit
of $137.0 million ($0.27 per diluted share) in the third quarter of
2015 and a credit of $57.3 million
($0.11 per diluted share) in the
fourth quarter of 2014. Included in the third quarter of 2015
results was an out-of-period non-cash gain of $10.2 million ($0.03 per diluted share) related to a correction
of deferred tax balances. The fourth quarter of 2014 results were
impacted by approximately $8.9
million ($0.02 per diluted
share) of inventory-related purchase accounting adjustments
associated with the acquisition of Nucor Steel Gallatin and a
$9.2 million ($0.03 per diluted share) out-of-period non-cash
gain related to a correction to tax balances.
Operating performance at the steel mills segment in the fourth
quarter of 2015 is expected to decrease from the third quarter of
2015. Our sheet and bar steel mills in particular have experienced
decreased margins as selling prices have eroded more than the
decline in raw material pricing. This performance is due to
continued deterioration in global steel markets amplified by global
excess capacity and historically high import levels. Although the
trade remedy process has not moved as quickly as we would like, we
believe that preliminary antidumping and countervailing duties and
affirmative critical circumstances findings in the steel sheet
cases should have a positive impact on domestic sheet mills
in the first half of 2016. Nonresidential construction
markets, although improved from 2014, are beginning to slow mainly
due to seasonal factors. Energy, heavy equipment and
agricultural markets remain weak. The automotive market remains
strong.
The performance of our downstream products segment is expected
to decrease from the third quarter of 2015 due to typical fourth
quarter seasonality, but it is expected to increase from the fourth
quarter of 2014. This performance compared to the prior year
reflects the gradual improvement in nonresidential construction
markets. We expect lower performance in the raw materials
segment due to lower scrap and metallic commodity prices at our
scrap processing businesses. During the fourth quarter of 2015, we
will complete a planned maintenance outage at Nucor Steel
Louisiana. The Louisiana
direct reduced iron (DRI) facility will not resume operations after
completion of the planned maintenance outage until market prices of
alternative raw materials improve from current depressed
levels.
Nucor and its affiliates are manufacturers of steel products,
with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and
alloy steel -- in bars, beams, sheet and plate; steel piling; steel
joists and joist girders; steel deck; fabricated concrete
reinforcing steel; cold finished steel; steel fasteners; metal
building systems; steel grating; and wire and wire mesh. Nucor,
through The David J. Joseph Company, also brokers ferrous and
nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and
processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.
Certain statements contained in this news release are
"forward-looking statements" that involve risks and
uncertainties. The words "believe," "expect," "project,"
"will," "should," "could" and similar expressions are intended to
identify those forward-looking statements. Factors that might
cause the Company's actual results to differ materially from those
anticipated in forward-looking statements include, but are not
limited to: (1) competitive pressure on sales and pricing,
including competition from imports and substitute materials; (2)
the sensitivity of the results of our operations to prevailing
steel prices and the changes in the supply and cost of raw
materials, including scrap steel; (3) market demand for steel
products; and (4) energy costs and availability. These and
other factors are discussed in Nucor's regulatory filings with
the Securities and Exchange Commission, including those
in Nucor's fiscal 2014 Annual Report on Form 10-K, Item
1A. Risk Factors. The forward-looking statements contained in
this news release speak only as of this date, and Nucor does
not assume any obligation to update them.
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SOURCE Nucor Corporation