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Nucor Announces Guidance for Fourth Quarter of 2020 Earnings

CHARLOTTE, N.C., Dec. 17, 2020 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) today announced guidance for its fourth quarter ending December 31, 2020. Nucor expects fourth quarter earnings to be in the range of $1.15 to $1.20 per diluted share. Third quarter of 2020 earnings were $0.63 per diluted share and fourth quarter of 2019 earnings were $0.35 per diluted share.

Expected fourth quarter of 2020 earnings include a net benefit totaling $39.7 million, or $0.13 per diluted share, related to state tax credits. Included in earnings for the third quarter of 2020 was a restructuring charge of $16.4 million, or $0.04 per diluted share, related to the realignment of Nucor's metal buildings business. Included in the fourth quarter of 2019 earnings were non-cash impairment charges of $66.9 million, or $0.17 per diluted share.

Earnings in the fourth quarter of 2020 are improving compared to the third quarter of 2020 primarily due to higher pricing at our sheet and plate mills. Reflecting our product diversity, our steel mills segment also continues to benefit from strong results at our bar and structural mills. The steel products segment's earnings in the fourth quarter of 2020 are expected to decrease modestly from the third quarter of 2020 consistent with typical seasonality. The profitability of the raw materials segment is expected to increase in the fourth quarter of 2020 as compared to the third quarter of 2020 due to the improved financial performance of our DRI facilities that are benefitting from higher prices for raw materials.

The ongoing COVID-19 pandemic continues to cause uncertainty, making it difficult to forecast future market conditions and demand trends. However, the beneficial impact of recent price increases on our sheet mills' performance, as well as the strength of our backlogs and overall lead times, indicates that the current quarter's momentum will continue into the first quarter of 2021.

About Nucor
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.

Forward-Looking Statements
Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. The words "anticipate," "believe," "expect," "project," "may," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. These forward-looking statements reflect the Company's best judgment based on current information, and although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this news release. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including pressure from imports and substitute materials; (2) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to prevailing steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the United States, as well as prevailing domestic prices for oil and gas; (5) energy costs and availability; and (6) the impact of the COVID-19 pandemic. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in "Item 1A. Risk Factors" of Nucor's Annual Report on Form 10-K for the year ended December 31, 2019 and in "Item 1A. Risk Factors" of Nucor's Quarterly Report on Form 10-Q for the quarters ended April 4, July 4, and October 3, 2020. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them, except as may be required by applicable law.

 

Cision View original content:http://www.prnewswire.com/news-releases/nucor-announces-guidance-for-fourth-quarter-of-2020-earnings-301195112.html

SOURCE Nucor Corporation

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