Nucor Announces Guidance for Third Quarter of 2020 Earnings
CHARLOTTE, N.C., Sept. 17, 2020 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) today announced guidance for its third quarter ending October 3, 2020. Nucor expects third quarter earnings to be in the range of $0.50 to $0.55 per diluted share. Second quarter of 2020 earnings were $0.36 per diluted share and third quarter of 2019 earnings were $0.90 per diluted share.
Our downstream products segment is having another strong quarter due to the continued resiliency of nonresidential construction markets, and we expect third quarter of 2020 earnings to increase from the second quarter of 2020 for this segment. The results of the steel mills segment in the third quarter of 2020 is expected to be similar to the second quarter of 2020. Our bar and structural mills are benefitting from nonresidential construction markets while market conditions for our sheet and plate mills remain challenged. We expect the results of our raw materials segment in the third quarter of 2020 to decrease compared to the second quarter due to lower pricing for DRI.
We have seen an uptick in demand and pricing for raw materials and sheet steel late in the third quarter. Additionally, utilization rates for our sheet mills have improved throughout the third quarter. We are cautiously optimistic about the impact these developments will have on the final quarter of the year.
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 quarter ended July 4, 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