) has announced its guidance for the third quarter of 2013. The
company expects earnings to be in the range of 35 cents to 40
cents, an increase from 35 cents it reported in the year-ago
quarter and 27 cents logged in the previous quarter. The
projected earnings include LIFO credit of 3 cents per share.
Nucor stated that performance in its steel mills has shown
improvement sequentially as a result of competitor supply
disruptions, customer inventory restocking and some market demand
improvement. Structural steel results also improved due to higher
production at Yamato Steel following its 17 day planned outage
during the second quarter and customer inventory restocking.
Nucor also expects its fabricated construction products
businesses to report increased profitability compared with the
second quarter. The company expects its raw materials business to
report weak results in the third quarter due to higher start up
costs at its new Direct Reduced Iron (DRI) plant in Louisiana
which is in the final stages of hot commissioning.
While Nucor stated that non-residential construction markets
remain weak in 2013, the company expects it to slowly improve
from historically low levels. Manufactured goods including energy
and automotive are showing strength.
Nucor, on Jul 18, posted mixed second-quarter 2013 results
with earnings missing the Zacks Consensus Estimate while revenues
beat the same. Profit fell year-over-year on lower performance in
the steel mills business and slow recovery in residential
construction. Lower selling prices and shipments led to a decline
in the top line.
Nucor is expected to release its third quarter results on Oct
14. The company currently retains a Zacks Rank #3 (Hold).
Other companies in the steel industry with favorable Zacks
Companhia Siderurgica Nacional
Shiloh Industries Inc.
Nippon Steel & Sumitomo Metal Corporation
). All of them hold a Zacks Rank #1 (Strong Buy).
NIPPON STEEL CP (NSSMY): Get Free Report
NUCOR CORP (NUE): Free Stock Analysis Report
SHILOH INDS INC (SHLO): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis
To read this article on Zacks.com click here.