Nucor Announces Guidance for Its First Quarter Earnings

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Mar 16, 2010, 09:00 ET

CHARLOTTE, N.C., March 16 /PRNewswire-FirstCall/ -- Nucor Corporation (NYSE: NUE) announced today guidance for its first quarter ending April 3, 2010. Nucor 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. 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 our steel mills are expected to approximate 55% and 63%, respectively, for the beam and bar mills, and 85% and 90%, respectively, for the sheet and plate mills in the first quarter. By comparison, fourth quarter of 2009 operating rates were 44% and 53%, respectively, in the beam and bar mills, and 63% and 68%, respectively, in the sheet and plate mills. Orders, production and shipments in the steel mills are projected to be up 94%, 51% and 49%, respectively, over the first quarter of 2009, and are projected to be up 23%, 26% and 20%, respectively, over the fourth quarter of 2009. These projections are all estimates based upon current information.

First quarter results also show significant improvement in our scrap business. As expected, the most challenging markets for our products are those associated with residential and non-residential construction, which continue to show little, if any, strength. This is particularly true for our downstream businesses.

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 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" 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 pressure 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, 2009 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.

SOURCE Nucor Corporation