) announced a hike in its regular quarterly cash dividend to 37
cents per share from 36.75 cents. The increased dividend is
payable on Feb 11, 2014, to stockholders of record as of Dec 31,
Nucor has a track record of raising dividends almost every year
since it started paying dividends in 1973. This reflects the
company's strong potential to generate a consistent stream of
earnings in the long term.
In December last year, Nucor increased its regular quarterly cash
dividend to 36.75 cents per share from 36.5 cents.
Nucor released its third-quarter 2013 results in Oct 2013. The
company's adjusted (excluding special items) earnings of 49 cents
per share surpassed the Zacks Consensus Estimate of 38 cents. The
adjusted earnings exclude charges of $14 million or 3 cents a
share associated with the collapse of a storage dome at a new
plant in Louisiana.
Profit (as reported) for the quarter came in at $147.6 million
(or 46 cents a share), up 34% from $110.3 million (or 35 cents)
reported a year ago. The results were aided by improvement in
demand across some end-markets and restocking of inventory by
Earnings for the quarter were affected by the storage dome
collapse at Nucor Steel Louisiana in St. James Parish on Sep 25
which led to a partial write down of inventory and fixed asset
balances related to it. The collapse also delayed the opening of
the new direct reduced iron (DRI) plant being constructed at the
site. However, the event did not result in any injuries or
Nucor expects the fourth quarter to show moderately lower
earnings given the narrowed shipping volumes due to seasonal
factors. In addition, planned outages are expected at the
SBQ mill in Norfolk, Neb., the sheet mill in Berkeley County,
S.C., and the structural mill in Blytheville, Ark., in connection
with previously declared capital expansion projects at these
facilities. However, metal margins are expected to remain
Nucor currently carries a Zacks Rank #3 (Hold).
Other companies in the steel and related industries with
favorable Zacks Rank are
Companhia Siderurgica Nacional
Dynamic Materials Corp.
United States Steel Corp.
). While Companhia Siderurgica and Dynamic Materials hold a
Zacks Rank #1 (Strong Buy), United States Steel has a Zacks Rank
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