Steel giant Nucor Corporation 's ( NUE ) adjusted
(excluding special items) earnings of 29 cents per share for the
first quarter of 2013 surpassed the Zacks Consensus Estimate of 25
cents. The adjusted earnings exclude an inventory related charge of
$18 million or 3 cents a share.
Profit (as reported) for the quarter came in at $84.8 million
(or 26 cents a share), down 41.5% compared with $145.1 million or
46 cents per share reported a year ago.
A 7% fall in average sales price weighed on Nucor's revenues in
the first quarter. Revenues decreased 10.3% year over year to
$4,550 million, missing the Zacks Consensus Estimate of $4,622
million. Total tons shipped to outside customers fell 3.6% year
over year to 5,706,000 tons in the reported quarter and total mill
shipments decreased 3.1% to 5,075,000 tons.
Nucor's volumes and pricings reflects lesser improvements
seasonally as the company's steel products segment experienced a
modest loss in the quarter. An unplanned 18 day outage at the
Trinidad DRI facility and unfavorable weather conditions resulted
in weaker results at Nucor's raw materials segment.
The average scrap and scrap substitute cost per ton used in the
first quarter was $379, down 15% from $445 a year ago. Overall
operating rates at Nucor's steel mills were 72%, down 7% compared
with the year-ago quarter.
The company had ample liquidity on its books as of Mar 30, 2013,
with $1.08 billion in cash and cash equivalents, short-term
investments and restricted cash and investments. It also has an
unused $1.5 billion revolving credit facility that will mature in
Nucor's Board declared a cash dividend of 36.75 cents per share
in Feb 2013, which was the company's 160th quarterly cash dividend
on the trot. The dividend is payable on May 10, 2013, to
stockholders of record as of Mar 28, 2013.
Nucor, which is among the prominent steel companies along with
AK Steel Holding Corporation ( AKS ), expects
second-quarter 2013 earnings to show improvements driven by
improved performances from fabricated construction products
businesses, raw materials businesses and most steel mill product
groups, partially offset by weaker performance in sheet steel.
Challenging economic and political conditions and high import
levels can negatively impact the company's expectations. Though
manufactured goods market including energy and automotive continues
to be Nucor's strongest end market, it expects the non-residential
construction markets to recover slowly in 2013.
Nucor currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the steel industry with favorable Zacks Ranks
are Gibraltar Industries Inc. ( ROCK ) and
Shiloh Industries Inc. ( SHLO ). All of them
carry a Zacks Rank #1 (Strong Buy).AK STEEL HLDG (AKS): Free Stock Analysis ReportNUCOR CORP (NUE): Free Stock Analysis ReportGIBRALTAR INDUS (ROCK): Free Stock Analysis
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