Nucor Earnings Miss Estimates After Drop in Steel Prices
Nucor Corp. (NUE), the largest U.S. steelmaker by market value, posted second-quarter profit that missed analysts’ estimates after prices for the metal fell.
Net income dropped to $112.3 million, or 35 cents a share, from $299.8 million, or 94 cents, a year earlier, the Charlotte, North Carolina-based company said today in a statement. Earnings excluding an impairment charge on an Italian joint venture and other items were 46 cents, trailing the 48-cent average of 20 estimates compiled by Bloomberg. Sales were little changed at $5.1 billion compared, exceeding the $5.06 billion average of 14 estimates.
Nucor said it expects a “modest reduction” in third- quarter earnings excluding one-time charges.
“Continued slow domestic growth, coupled with continued or worsening global economic uncertainty may both become increasing negative factors,” the company said in the statement. “The construction market continues to be very challenging.”
The price of hot-rolled steel coil, a benchmark product used in autos and construction, averaged $658 a ton in the quarter, 20 percent less than a year earlier, according to Steel Business Briefing data. Nucor said June 13 that second-quarter profit would miss earlier guidance because a “surge” in imports undermined prices and political and economic uncertainty affected buyers’ confidence.
Nucor dropped 2 percent to $37.93 at 9:10 a.m. before the start of regular trading in New York.
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