Nucor Corp. announced guidance for its first quarter ending April 3, 2010. The company expects first-quarter results to be in the range of ($0.05) to $0.05 per diluted share, compared to a loss of $0.60 per diluted share in the first quarter of 2009 and earnings of $0.18 per diluted share in the fourth quarter of 2009.
Operating results excluding LIFO have improved significantly over the fourth quarter, according to Nucor. Projected first-quarter results include an estimated LIFO charge of $23 million compared to a credit of $117 million in the fourth quarter of 2009. The $140 million estimated increase in LIFO charges has an impact of approximately $0.29 per diluted share, after tax.
Operating rates at Nucor’s steel mills are expected to approximate 55% and 63%, respectively, for the beam and bar mills, compared to Q4 2009 operating rates of 44% and 53%, respectively.
Operating rates are anticipated at 85% and 90%, respectively, for Nucor’s sheet and plate mills in the first quarter, compared to 63% and 68%, respectively, in Q4 2009.
Orders, production, and shipments in the steel mills are projected to be up 94%, 51%, and 49%, respectively, compared to the first quarter of 2009, and up by 23%, 26%, and 20%, respectively, over the fourth quarter of last year.
The company also notes that first-quarter results show significant improvement in its scrap business. The most challenging markets for Nucor’s products are those associated with residential and non-residential construction, which continues to show little to no strength, says Nucor.
Nucor and 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 joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; and wire and wire mesh. Nucor, through The David J. Joseph Co., 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.