Nucor Announces Guidance For Its Second Quarter Earnings

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Jun 15, 2011, 09:00 ET

CHARLOTTE, N.C., June 15, 2011 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today guidance for its second quarter ending July 2, 2011. Nucor expects second quarter results to be in the range of $0.75 to $0.80 per diluted share. This represents an increase of 160% - 180% over second quarter 2010 earnings of $0.29 per diluted share, and an increase of 50% - 60% over first quarter 2011 earnings of $0.50 per diluted share. Projected second quarter results include an estimated LIFO charge of $31 million ($0.06 per diluted share) compared to charges of $67 million in the second quarter of 2010 ($0.13 per diluted share) and $31 million in the first quarter of 2011 ($0.06 per diluted share).

As we expected, our profitability has significantly improved from the first quarter to the second quarter, as price increases for steel mill products caught up with higher raw material costs. We continue to believe that end markets such as automotive, heavy equipment, energy, and general manufacturing have experienced some real demand improvement. These increases in profits were achieved despite the rebalancing by our customers of supply chain inventories, the impact on the manufacturing/auto sector of the devastating Japanese earthquake/tsunami and the lost sales, production and shipments from the weather-related power outages and historic river flooding in North America. The third quarter should not see a continuation of these weather-related issues. Improvement in real demand is most evident in special bar quality, sheet and plate products sold to the manufacturing, industrial and energy sectors. The most challenging markets for our products continue to be those associated with residential and non-residential construction. We do expect continued stability in order rates as raw material prices have been less volatile than in 2010. As is our practice, we will provide qualitative guidance for third quarter 2011 earnings in our second quarter 2011 earnings release.

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," "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, 2010 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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