Nucor Announces Guidance For Its First Quarter Earnings

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Mar 14, 2013, 09:00 ET

CHARLOTTE, N.C., March 14, 2013 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today guidance for its first quarter ending March 30, 2013. Nucor expects first quarter results to be in the range of $0.20 to $0.25 per diluted share. This performance is consistent with the qualitative guidance presented in our fourth quarter of 2012 earnings release and conference call which stated, "We currently expect to see first quarter 2013 earnings below our results in the fourth quarter of 2012." This range represents a decrease from the first quarter of 2012 earnings of $0.46 per diluted share and fourth quarter of 2012 earnings of $0.43 per diluted share. Projected first quarter results include an estimated LIFO charge of $16.0 million ($0.03 per diluted share) compared to a credit of $71.9 million in the fourth quarter of 2012 ($0.14 per diluted share) and a charge of $14.5 million in the first quarter of 2012 ($0.03 per diluted share). Also affecting earnings in the first quarter of 2012 was a non-cash gain of $12.6 million ($0.04 per diluted share) related to the recognition of state tax credits and the adjustment of tax expense to previously filed returns.

As we expected, our operating performance in the steel mills segment is flat compared to the fourth quarter of 2012. This reflects weakening performance in sheet steel offset by improved profitability for structural steel. Overall, our steel mills have not experienced the seasonal improvement that is typical in the first quarter of the year. Our downstream steel products segment experienced a typical seasonal slowdown in the first quarter, and we therefore expect to report a modest loss for that segment following three straight quarters of profitable operating performance. Our raw materials segment is also expected to report weaker results due to an unplanned 18 day outage at our Trinidad Direct Reduced Iron facility and weather-related effects negatively impacting the flow of scrap in our scrap processing business. We continue to be cautiously optimistic about non-residential construction markets in 2013 as they continue to improve slowly from historically low levels. The strongest end markets continue to be in manufactured goods including energy and automotive. Import levels and general economic and political uncertainty continue to negatively affect our business.

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 piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating and expanded metal; 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) 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; (2) market demand for steel products; (3) energy costs and availability; and (4) competitive pressure on sales and pricing, including competition from imports and substitute materials. These and other factors are outlined in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2012 Annual Report on Form 10-K. 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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