Nucor warns of weaker Q2 earnings on lower prices, volumes

This would represent a decline of over 30% from earnings of $3.46/diluted share, or $844.8 million, in the prior quarter and of more than 60% from the year-ago quarter when income reached $5.81/diluted share, or $1.461 billion.

The anticipated earnings decline is chiefly due to lower average selling prices from its steel mills and, to a lesser degree, lower steel volumes, the company said.

According to SMU’s files, Q2 prices through June 11 for hot-rolled coil and plate, averaging $786 per short ton (st) and $1,182/st, respectively, are down 15% and 11% from Q1.

Nucor said earnings in its steel products segment will also be lower, but higher volumes should partially offset lower prices. The segment includes Nucor’s pipe and tube, decking, joists, overhead doors, rebar fabrication, metal building systems, and other businesses.

Meanwhile, the raw materials segment, which includes the David J. Joseph Co., should have a sequentially better quarter, driven by higher profits from Nucor’s two direct-reduced iron (DRI) facilities in Louisiana and Trinidad and Tobago.

Nucor will release its full Q2 earnings report after the markets close on July 22.