NUCOR STEEL HEADLINESSteel Producers /
Nucor Steel
Nucor Announces Guidance for Q4 Earnings
Dec. 17, 2010 Nucor Corp. announced guidance for its fourth quarter ending December 31, 2010, which supports the company’s qualitative guidance given in late October that "the fourth quarter may indeed turn out to be the most challenging quarter of the year. The most challenging markets for our products continue to be those associated with residential and nonresidential construction, which continue to show little, if any, strength."
The company expects fourth quarter results to be in the range of a loss of $0.10 to $0.15 per diluted share, compared to earnings of $0.07 per diluted share in the third quarter of 2010 and $0.18 per diluted share in the fourth quarter of 2009. The results will be impacted by significant increases in scrap prices and the inability to realize sales price increases quickly enough to benefit the fourth quarter.
Utilization rates, while similar to the third quarter, are improving as the fourth quarter progresses, the company reports. In spite of the holidays and year-end shutdowns by some customers, improving operating rates are resulting in only slightly lower shipments from the third quarter.
The company says that it also has been able to significantly raise prices for all steel mill products over the last 30 to 45 days. These increases are expected to have a positive impact during the first quarter. Nucor is therefore cautiously optimistic regarding first quarter volume and pricing, though it expects to continue to experience rising raw material costs during the winter months.
The projected LIFO charge for the year is expected to be slightly lower than the amount estimated at the end of the third quarter.
Nucor and affiliates manufacture steel products, with operating facilities primarily in the U.S. and Canada. Products produced include carbon and alloy steel 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.