Nucor Corp. (NUE), the largest U.S. steelmaker by market value, reported second-quarter earnings that missed analysts’ estimates after the price of the metal on lower domestic demand.
Net income fell to $85.1 million, or 27 cents, a share, from $112.3 million, or 35 cents, a year earlier, the Charlotte, North Carolina-based company said today in a statement. That trailed the $93.7 million average of five estimates compiled by Bloomberg.
Sales dropped to $4.67 billion from $5.1 billion, exceeding the $4.59 billion average of 11 estimates.
Apparent U.S. domestic steel consumption in the first five months of 2013 declined 7.7 percent, according to the latest data compiled by Bloomberg. Usage has dropped at a faster rate than U.S. production, causing prices to fall, said Andrew Cosgrove, an analyst at Bloomberg Industries in Princeton, New Jersey.
The average price of hot-rolled coil, a benchmark steel product used in cars and trucks, was $593 a short ton in the quarter, 10 percent lower than a year earlier, according to data from The Steel Index.
Nucor rose 1.2 percent to $45.29 in New York yesterday. The shares have climbed 4.9 percent this year.
(Nucor scheduled a conference call at 2 p.m. New York time, which can be accessed at the company’s website http://www.nucor.com.)
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