Nucor is guiding to better-than-expected second-quarter earnings in the range of $0.10 to $0.15 per diluted share. First-quarter earnings were $0.07 per diluted share and included asset losses related to the mill’s equity method investment in Italy.
Nucor’s downstream steel products segment remained strong during the quarter due to resilient demand in nonresidential construction.
COVID-19 shutdowns, particularly in automotive, and a weak oil and gas market negatively impacted Nucor’s sheet and plate mill results. The automotive industry has returned to production following an extended shutdown and is ready to replenish inventory sold during the pandemic outage. Steel sales to the sector are expected to improve as auto production levels return to pre-pandemic levels.
Nucor’s raw material segment was challenged by decreased pricing for raw materials and an outage at the DRI Trinidad facility due to stay-at-home orders.
“We believe Nucor is well positioned to navigate any future challenges that arise from these current situations given our advantaged cost position, flexible production capability and financial strength,” said the company.
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