Steel Products

Nucor Pre-Announces 1st Quarter to be Disappointing

Written by Sandy Williams

Written by: Sandy Williams

Nucor is expecting shares to drop by half in the first quarter of 2013, falling to $0.20 to $0.25 per diluted share from $0.43 per diluted share in the fourth quarter of 2012 and $0.45 per diluted share in first quarter 2012.

Weak performance in sheet steel offset by improved profitability of structural steel has left the steel mills segment flat in the fourth quarter. Nucor says steel mills have not seen the usual seasonal improvement in the first quarter. Weak performance is expected by downstream products leading to modest losses for the quarter. Raw materials have also been impacted by an 18 day outage at the Trinidad DRI plant and weather related slowdown at Nucor’s scrap processing business.

Nucor expects non-residential construction to pick up in 2013 and continues to see energy and automotive as their strongest end markets. Imports and the political and economic uncertainly continue to negatively affect results.

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