Nucor Corp. (NUE: Quote) Thursday said its profit for the second-quarter more-than-halved, hurt mainly by weak steel prices and one-time charges, with revenues almost flat. Earnings for the quarter missed analysts' estimates, while revenues surpassed expectations.
Moving ahead, the steel maker expects to see a "modest reduction" in earnings, excluding one-time items, for the third quarter, amidst a worsening global economy.
Nucor's net earnings for the second-quarter plunged to $112.3 million or $0.35 per share from $299.8 million or $0.94 per share last year.
The second-quarter earnings include an impairment charge of $0.09 per share related to Duferdofin Nucor joint venture and $0.02 per share related to the $684 million Skyline Steel acquisition.
Excluding charges, net earnings for second quarter was $145.1 million or $0.46 per share. On average, 17 analysts polled by Thomson Reuters expected earnings of $0.48 per share for the quarter. Analysts' estimates typically exclude one-time items.
Nucor's net sales for the quarter declined marginally to $5.10 billion from $5.11 billion last year. Analysts estimated revenues of $5.06 billion for the quarter.
Steel mills production for the quarter rose 8 percent to 5.1 million tons, while steel mills total shipments increased 7 percent to 5.2 million tons.
Cost of products sold increased to $4.70 billion from $4.46 billion last year.
Looking forward, the company expects to see a modest reduction in third-quarter earnings, excluding one-time charges. Nucor said, "Continued slow domestic growth, coupled with continued or worsening global economic uncertainty may both become increasing negative factors. The construction market continues to be very challenging."
On a positive note, Nucor expects sheet steel prices to improve in the third quarter, as sheet steel imports decline and operating rates come down.
NUE is currently trading at $38.06, down $0.65 or 1.68%, on a volume of 1.7 million shares on the NYSE.
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by RTT Staff Writer
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