Nucor Provides Downbeat Q3 Earnings View On Lower Prices
Zacks Investment Research | Sep 16, 2019 09:17PM ET
Nucor Corporation (NYSE:NUE) has issued guidance for third-quarter 2019 (ending Sep 28, 2019).
The steel giant expects earnings per share (EPS) in the band of 75-80 cents for the third quarter of 2019. This reflects a sequential decline from the EPS of $1.26 in the second quarter and a fall from $2.13 recorded in the year-ago quarter.
Nucor expects performance in the steel mills unit to sequentially decline in the third quarter of 2019 mainly due to lower prices for sheet and plate steel. The company stated that it sees stability in most of the end use markets that it serves. However, automotive, power transmission and agricultural products markets remain weak.
The steel products unit’s profitability is expected to improve sequentially in the third quarter backed by favorable conditions in the non-residential construction market. Additionally, the recently-implemented efficiency initiatives in metal buildings and rebar fabrication are likely to boost performance of these businesses.
Nucor expects performance of the raw materials unit to decline sequentially in the third quarter due to further margin compression in its direct reduced iron (DRI) businesses. Moreover, the Louisiana-based DRI facility started a planned outage last week, which is expected to last till mid-November.
Nucor’s shares have lost 17.3% in the past year compared with the Original post
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