Nucor Adjust Second-Quarter Guidance
Jun. 17, 2009
Nucor Corp. has updated its second-quarter guidance, saying that it now expects to report a smaller-than-expected loss in the range of $0.55 to $0.65 per diluted share based on increased orders.
This compares to a $0.60 per share loss in the first quarter of 2009, and earnings of $1.94 per share in the second quarter of 2008. It also reflects an improvement from Nucor’s qualitative second-quarter guidance, given in late April, which was for a greater loss than in the first quarter.
The company said that second quarter results carry a substantially greater burden than the first quarter due to accelerated consumption of high-cost pig iron inventories at the company’s sheet mills, mitigated in part by the company’s strong focus on overall cost reductions.
"Order entry has improved in recent weeks,” commented Dan DiMicco, Nucor's Chairman, CEO and President. “Nevertheless, the economic outlook remains very uncertain in light of the continuing severe structural challenges facing the U.S. and global economies.
We believe this period of economic and steel industry distress will present unusually attractive growth opportunities for Nucor,” continued DiMicco. “Our team is already capitalizing on Nucor's position of strength—a position of strength arising from our balance sheet, low cost and highly flexible production capabilities, unrivaled product diversification, and—most importantly—Nucor's extremely productive and innovative work force."
Nucor and affiliates manufacture steel products, with operating facilities primarily in the U.S. and Canada. Products produced include carbon and alloy steel 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 Co., 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.