Tags: Steelmaker | Nucor | Profit | earnings

Steelmaker Nucor's Sees Further Drop as Profit Tumbles

Thursday, 18 Oct 2012 09:41 AM

Nucor Inc. reported a drop in third-quarter earnings, partly due to lower prices for its steel and slowing economic growth, and said it expected another profit decline in the current period.

Net earnings were $110.3 million, or 35 cents per share, compared with $181.5 million, or 57 cents per share, a year earlier, the Charlotte, North Carolina-based steelmaker said on Thursday.

Revenue fell 9 percent to $4.8 billion, as steel prices and shipments have dropped, Nucor said.

"We currently expect to see some further reduction in earnings exclusive of one-time charges for the fourth quarter," the company said in a statement.

Nucor said earnings had suffered because of increasing imports of cheap foreign steel into the United States, as well as excess domestic sheet supply.

In addition, there was volatility in scrap prices — a key raw material for Nucor's steel — while political and economic uncertainty in global markets was affecting steel buyers' confidence.

"Slowing economic growth both domestically and globally is expected to be a negative factor through the end of the year," the company said.

Nucor said its strongest markets continued to be manufactured goods, including automotive, energy and heavy equipment, while the construction market remained "very challenging."

The third-quarter results include noncash inventory-related charges of about $28.2 million for the acquisition of Skyline Steel LLC and a loss of $17.6 million on the sale of the assets of Nucor Wire Products Pennsylvania Inc.

© 2017 Thomson/Reuters. All rights reserved.

 
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Nucor Inc. reported a drop in third-quarter earnings, partly due to lower prices for its steel and slowing economic growth, and said it expected another profit decline in the current period.
Steelmaker,Nucor,Profit,earnings
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2012-41-18
Thursday, 18 Oct 2012 09:41 AM
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