Steel Mills

Nucor Expects Improved Earnings in Q1

Written by Sandy Williams

Nucor Corp. is expecting stronger earnings in first quarter than fourth, said the company in its first-quarter earnings guidance.

Average selling prices for steel products have steadily increased in 2018, and positive pricing momentum is expected to continue into second quarter. Earnings for the steel mills segment are expected to improve compared to first quarter. Steel products earnings will reflect typical seasonality, but earnings in Nucor’s raw materials segment are expected to improve sequentially.

Said Nucor, “We believe there is significant optimism in steel end-use markets, and we are encouraged by recent actions made by the Trump administration to address the massive flood of dumped and illegally subsidized imports into the United States.”

Fourth-quarter results included a net tax benefit of $175.2 million resulting from the tax reform legislation. First quarter will include a $21.8 million deferred tax writeoff expense for a subsidiary and inventory-related purchase accounting charges of $9.8 million related to the acquisitions of Southland Tube and Republic Conduit, the company said.

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