CHARLOTTE, N.C. (AP) — Nucor Corp. said Thursday that its net income slid 63 percent in the second quarter, dragged down by a joint-venture charge and expense connected to an acquisition.
The steel company also said it expects a modest drop in its third-quarter adjusted earnings due to global economic conditions, a slowdown in domestic growth and the struggling construction market.
Much of the steel Nucor produces is used in larger construction projects in the U.S. and overseas. It makes sheet steel, beams, joists, concrete reinforcing bars, fasteners, wire and other materials used to build highways, bridges, stadiums and high-rise buildings.
Nucor earned $112.3 million, or 35 cents per share, for the three months ended June 30. That's down from $299.8 million, or 94 cents per share, a year earlier.
The results included an impairment charge of 9 cents per share tied to a joint venture and a charge of 2 cents per share related to its $684 million buyout of Skyline Steel LLC.
Excluding these charges, earnings were 46 cents per share. Analysts surveyed by FactSet predicted earnings of 47 cents per share. They usually don't include one-time charges in their estimates.
Revenue edged down to $5.1 billion from $5.11 billion as the average sale price per ton of steel fell 6 percent from a year ago. Wall Street forecast $5.02 billion in revenue.
While Nucor believes its third-quarter earnings may decline modestly, the Charlotte, N.C., company said that pricing for sheet steel may improve by the quarter's end as sheet steel imports decline and operating rates fall.
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