Nucor Announces Guidance for 1Q Earnings
OREANDA-NEWS. March 27, 2014. Nucor Corporation (NYSE: NUE) announced guidance for its first quarter ending April 5, 2014. Nucor expects first quarter results to be in the range of USD 0.30 to USD 0.35 per diluted share.
This range represents an increase from the first quarter of 2013 earnings of USD 0.26 per diluted share and a decrease from fourth quarter of 2013 earnings of USD 0.53 per diluted share.
Additionally, this range represents a decrease from the qualitative guidance presented in our fourth quarter of 2013 earnings release and conference call which stated, "We currently expect that first quarter of 2014 earnings, excluding the impact of the fourth quarter out-of-period tax adjustment, will be similar to the fourth quarter of 2013 levels."
The larger factor impacting the first quarter was severe weather conditions, which has disrupted customer demand, decreased the amount of railcar availability and has exacerbated conditions in the seasonally weaker performance of our fabricated construction products businesses. Additionally, import levels have continued to negatively impact pricing and margins at our bar and sheet mills. Looking forward, we continue to see small but noticeable improvements in the nonresidential construction markets.
Projected first quarter results include an estimated LIFO charge of USD 14.5 million (USD 0.03 per diluted share) compared to a charge of USD 17.4 million (USD 0.04 per diluted share) in the fourth quarter of 2013 and a charge of USD 18.0 million (USD 0.03 per diluted share) in the first quarter of 2013. Also included in the projected first quarter results is an estimated USD 9.0 million charge (USD 0.02 per diluted share) related to the disposal of assets within the steel mills segment. Earnings in the fourth quarter of 2013 included an out-of-period non-cash gain of USD 21.3 million (USD 0.07 per diluted share) related to a correction to a deferred tax balance.
Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating and expanded metal; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.