9/19/2012 1:44:00 AM
NEWS BRIEFS
Nucor Mutes Third Quarter Expectations
Nucor Corp.announced guidance for its third quarter performance. The steelmaker expects Q3 results to be in the range of $0.30 to $0.35 per diluted share — down from the third quarter of 2011 earnings of $0.57 per diluted share.
Q3 projected results include the negative impact of $26 million in inventory purchase accounting adjustments related to our acquisition of Skyline Steel LLC and a l$17.6 oss on the sale of the assets of Nucor Wire Products Pennsylvania.
Our projected earnings for the third quarter of 2012 excluding one-time charges are consistent with the qualitative guidance included in our earnings release for the second quarter of 2012 which stated, “We currently expect to see a modest reduction in earnings exclusive of one-time charges for the third quarter of 2012.”
“Our lower performance in the third quarter of 2012 is mainly due to decreased operating performance at our steel mills, which experienced decreased profitability, particularly at our sheet mills, compared to the second quarter of 2012,” Nucor stated. “Lower steel mill margins are primarily the result of rising imports, which began trending up at the end of 2011 and have continued through the first nine months of 2012.”
Volatility in scrap prices, together with a combination of political and economic uncertainty in global markets that is beginning to affect steel buyer confidence, has also disrupted supply chain stocking levels. The strongest end markets continue to be manufactured goods including heavy equipment, energy and automotive. ©2012 GlobalFastenerNews.com
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