Nucor likely to report weak fourth quarter results
A domestic mill source reported to SMU today that Nucor stated that the fourth quarter is likely to see a loss of $0.10 to a loss of $0.15 per share. Our source said this compares to their current estimate of breakeven, and the consensus expectation for a profit of $0.04 per share. Nucor was relatively upbeat regarding its qualitative outlook for 1Q11.
Our source shared that Nucor “highlighted its successful attempts to raise finished steel pricing for delivery in early 2011. Over the last month or so, the Company has announced increases for its hot rolled coil product to $710/ton, up from our estimate of a $520/ton low in realized price in November. Improved steel pricing and seasonally higher shipments should lead to a meaningful rise in 1Q11 profitability. Our current 1Q11 EPS estimate is $0.26."