Nucor Corporation (NUE) has announced its guidance for the second quarter 2013. The company expects earnings to be in the range of 25 cents to 30 cents, lower than 35 cents it reported in the year-ago quarter and almost in line with the first quarter of 2013. The estimated earnings does not include any accounting charges or credits which were otherwise included in the second quarter last year.
Nucor stated that performance in its steel mills is down sequentially with weakness in sheet and structural steel somewhat masked by improvement in plate. Nucor’s raw materials segment is also expected to report stronger results in the second quarter, owing to normalized operations at its Trinidad Direct Reduced Iron facility after an unplanned 18 day outage in the first quarter.
Nucor added that non-residential construction markets are still lacking momentum but are showing improvements from historically low levels. Manufactured goods including energy and automotive are showing strength.
Nucor released its first quarter results in Apr 2013. The company’s adjusted (excluding special items) earnings of 29 cents per share for the first quarter of 2013 surpassed the Zacks Consensus Estimate of 25 cents. The adjusted earnings exclude an inventory related charge of $18 million or 3 cents a share.
Revenues decreased 10.3% year over year to $4,550 million, missing the Zacks Consensus Estimate of $4,622 million.
Nucor is expected to release its second quarter results on Jul 15, 2013. The company currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the steel industry with favorable Zacks Ranks are Shiloh Industries Inc. (SHLO), Kobe Steel Ltd. (KBSTY) and LB Foster Co. (FSTR). While both Shiloh and Kobe Steel retain a Zacks Rank #1 (Strong Buy), LB Foster has a Zacks Rank #2 (Buy).
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