VOL. 127 | NO. 182 | Tuesday, September 18, 2012
Nucor Lowers Earnings Guidance
By Bill Dries
Nucor Corporation, which has a steel plant in Memphis, announced Tuesday, Sept. 18, that it is lowering its third quarter earnings to 35 cents per diluted share from earnings a year ago of 57 cents per diluted share.
Nucor posted earnings in the second quarter of 2012 of 35 cents per diluted share.
Nucor executives cited the impact of $26 million of inventory purchase accounting adjustments from the company’s acquisition of Skyline Steel LLC. Nucor also took a loss on the sale of assets of its Nucor Wire Products Pennsylvania Inc. division of $17.6 million in the quarter that ends Sept. 29.
The company described the reduction in earnings for the third quarter as “modest” without the one-time charges factored in.
“Our lower performance in the third quarter of 2012 is mainly due to decreased operating performance at our steel mills, which experienced decreased profitability, particularly at our sheet mills, compared to the second quarter of 2012,” Nucor executives said in a written statement from company headquarters in Charlotte, N.C. The lower steel mill margins are blamed on rising imports, a trend that began at the end of 2011.