Nucor Provides Update on First Quarter Performance
CHARLOTTE, N.C., Feb. 9, 2021 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) today announced that it expects to generate record earnings for its first quarter ending April 3, 2021. Nucor believes its first quarter net earnings could exceed $900 million.
"We are encouraged by positive economic trends and the robust demand we are seeing across our markets," said Leon Topalian, Nucor's President and Chief Executive Officer. "We currently expect our first quarter 2021 results to significantly exceed Nucor's previous record for quarterly net earnings, set in 2008. As we move through 2021, we remain focused on building on our momentum, meeting and exceeding our customers' needs, and delivering sustainable value creation for Nucor stockholders."
As noted in the Company's most recent earnings news release and conference call, business conditions are strong across most of the end-use markets Nucor serves.
- The Company's sheet, plate, bar and structural mills continue to forecast increased profitability in the first quarter of 2021 as compared to the fourth quarter of 2020. Realized prices and shipment volumes have increased for Nucor's steel mills in the first quarter as compared to the fourth quarter of 2020.
- The profitability of the Company's downstream steel products segment is expected to be similar to the segment's results for the fourth quarter of 2020.
- The raw materials segment's performance in the first quarter of 2021 is expected to be significantly improved as compared to the fourth quarter of 2020 due to higher raw materials selling prices.
While it is difficult to provide precise guidance this early in the quarter, Nucor has elected to provide this update due to what it sees as an unusually large gap between its internal forecast and the current mean estimate for its first quarter earnings. Strong January operating results, as well as recent revisions to internal forecasts, reinforce Nucor's confidence in its expected results. The Company will continue its regular practice of providing more specific quantitative earnings guidance on or about the 11th week of each quarter going forward.
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.
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.
SOURCE Nucor Corporation