Nucor Announces Guidance for Its First Quarter Earnings

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Mar 18, 2014, 09:00 ET

CHARLOTTE, N.C., March 18, 2014 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today guidance for its first quarter ending April 5, 2014. Nucor expects first quarter results to be in the range of $0.30 to $0.35 per diluted share. This range represents an increase from the first quarter of 2013 earnings of $0.26 per diluted share and a decrease from fourth quarter of 2013 earnings of $0.53 per diluted share. Additionally, this range represents a decrease from the qualitative guidance presented in our fourth quarter of 2013 earnings release and conference call which stated, "We currently expect that first quarter of 2014 earnings, excluding the impact of the fourth quarter out-of-period tax adjustment, will be similar to the fourth quarter of 2013 levels."

The larger factor impacting the first quarter was severe weather conditions, which has disrupted customer demand, decreased the amount of railcar availability and has exacerbated conditions in the seasonally weaker performance of our fabricated construction products businesses. Additionally, import levels have continued to negatively impact pricing and margins at our bar and sheet mills. Looking forward, we continue to see small but noticeable improvements in the nonresidential construction markets.

Projected first quarter results include an estimated LIFO charge of $14.5 million ($0.03 per diluted share) compared to a charge of $17.4 million ($0.04 per diluted share) in the fourth quarter of 2013 and a charge of $18.0 million ($0.03 per diluted share) in the first quarter of 2013. Also included in the projected first quarter results is an estimated $9.0 million charge ($0.02 per diluted share) related to the disposal of assets within the steel mills segment. Earnings in the fourth quarter of 2013 included an out-of-period non-cash gain of $21.3 million ($0.07 per diluted share) related to a correction to a deferred tax balance.

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 discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2013 Annual Report on Form 10-K, Item 1A. Risk Factors. 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.

SOURCE Nucor Corporation