Steel maker Nucor Corp. (NUE) on Thursday reported a 42 percent decline in profit for the first quarter from last year. The company recorded lower shipments and selling prices in the quarter, noting that its steel mills did not experience the seasonal improvement in volume and pricing that is typical in the first quarter of the year.
Looking ahead to the second quarter, Nucor expects to see some improvement in earnings.
The Charlotte, North Carolina-based company's first-quarter net earnings were $84.79 million or $0.26 per share, down from $145.10 million or $0.46 per share in the prior-year period.
In the latest quarter, Nucor incurred a charge to value inventories using the last-in, first-out or LIFO method of accounting of $18.0 million or $0.03 per share. This compared with a charge of $14.5 million or $0.03 per share in the same period last year. The prior-year quarter's results also include a non-cash gain of $12.6 million or $0.04 per share on the recognition of state tax credits and the adjustment of tax expense to previously filed returns.
On average, 17 analysts polled by Thomson Reuters expected the company to report earnings per share of $0.25 for the latest quarter. Analysts' estimates typically exclude one-time items.
Consolidated net sales for the quarter declined 10 percent to $4.55 billion from $5.07 billion in the year-ago period and missed analysts' consensus revenue estimate of $4.61 billion.
Steel mills production for the quarter declined 8 percent from the prior-year period to 4.82 million tons, while total shipments slid 3 percent to 5.08 million tons.
Total tons shipped to outside customers in the quarter declined 4 percent to 5.71 million tons. Average sales price per ton decreased 7 percent from the year-ago period.
Looking ahead to the second quarter, Nucor expects to see some improvement in earnings driven by better performance at its fabricated construction products businesses, raw materials businesses and most steel mill product groups, partially offset by weaker performance in sheet steel. Analysts expect the company to earn $0.54 per share for the quarter.
Nucor noted that construction was progressing on its 2.50 million-ton DRI facility in Louisiana. Due to extreme weather conditions in the first quarter, the company now expects to start up late in the third quarter of 2013.
In Thursday's regular trading session, NUE is trading at $42.04, down $0.49 ore 1.14 percent on a volume of 489,082 shares.
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