CHARLOTTE, N.C., March 15, 2016 /PRNewswire/ -- Nucor Corporation
(NYSE: NUE) announced today guidance for its first quarter ending
April 2, 2016. Nucor expects first
quarter results to be in the range of $0.20
to $0.25 per diluted share. This range is comparable to
the first quarter of 2015 earnings of $0.21 per diluted share and a decrease from the
fourth quarter of 2015 adjusted net earnings of $0.45 per diluted share. Fourth quarter of
2015 adjusted net earnings excludes $0.64 of impairment charges recorded during the
quarter. Including these impairment charges, Nucor's net loss for
the fourth quarter of 2015 was $0.19
per diluted share.
Projected first quarter of 2016 results include an estimated
LIFO expense of $15.0 million
($0.03 per diluted share), compared
to a credit of $217.8 million
($0.41 per diluted share) in the
fourth quarter of 2015 and a credit of $16.5
million ($0.03 per diluted
share) in the first quarter of 2015. LIFO charges or credits for
interim periods are based on management's current estimates of both
inventory costs and quantities expected at year-end, and that full
year estimate is incurred ratably over the remainder of the
year.
Operating performance at the steel mills segment for the first
quarter of 2016 is expected to benefit from a lower average cost of
inventory at the beginning of the first quarter and a modest
improvement in market conditions. Positive market factors include a
small decline in import volumes and more balanced inventory levels
at service center customers. Nonresidential construction markets
have slowed due to seasonal factors and are expected to improve as
the year progresses. Energy, heavy equipment and agricultural
markets remain weak. The automotive market remains
strong.
Imports also continue to impact the U.S. steel industry. Several
important trade cases are in progress, and the Department of
Commerce has announced preliminary duties. We are confident that
once all the facts are known, final determinations by the
Department of Commerce will fully address all dumping and subsidies
associated with these cases.
Although conditions in world markets remain uncertain, we now
believe that full year 2016 profitability will be slightly improved
compared to full year 2015 results, excluding the impairment
charges taken in the prior year. This improved performance is
driven by expected increases in the performance of the steel mills
and steel products segments.
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 2015 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