Nucor Profit Rises But Misses Views
April 21 2016 - 10:53AM
Dow Jones News
By Joshua Jamerson
Nucor Corp. on Thursday reported its profit increased 4.4% in
the latest quarter, as revenue also rose amid slight improvements
in market conditions.
Still, results fell below Wall Street expectations. Shares, up
44% in the past three months, slipped 2% to $49.27 in morning
trading in New York.
The company said it expected its second-quarter results to be
"significantly improved" from the first quarter because of recently
announced price increases.
Nucor and other U.S. steelmakers, facing a slew of imports that
have weighed on steel prices, have said they are the victims of
illegal trade practices and have sought help from the government.
Nucor said Thursday that imports continued to impact the U.S. steel
industry.
The Department of Commerce recently imposed preliminary duties
on imports of cold-rolled steel, used to make auto parts,
appliances and shipping containers, from seven countries including
China, whose steelmakers were slapped with a massive tariff.
Charlotte, N.C.-based Nucor had said it expected improvement in
the steel-mills segment in the first quarter of 2016 because of
lower costs and a modest improvement in market conditions.
For the three months ended April 2, the company reported a
$279.8 million profit on its steel mills, up from $217.1 million a
year ago. Total steel mill energy costs in the first quarter of
2016 decreased by roughly $7 per ton due to lower electricity and
natural gas unit expenses and higher steel production volumes.
Over all, Nucor reported a profit of $70.8 million, or 22 cents
a share, compared with $67.8 million, or 21 cents a share, in the
year-ago period.
Revenue slipped 16% to $3.75 billion.
Nucor projected per-share earnings of 20 cents to 25 cents.
Analysts polled by Thomson Reuters expected a per-share profit of
27 cents on revenue of $3.64 billion.
The company said its results were hurt by a $27.5 million
accounting-related charge, while the year-ago quarter included a
$16.5 million credit.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
April 21, 2016 10:38 ET (14:38 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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