Nucor Announces Upbeat Earnings Guidance for Q2 2018

SEATTLE (Scrap Monster): Charlotte, North Carolina-headquartered Nucor Corporation has announced earnings guidance for the second quarter of 2018 ending June 30. The company expects better performance in Q2 ’18 when compared with the prior quarter. The performance boost will be mainly on account of the improved throughput from steel mills segment, coupled with stronger steel market conditions.

According to Nucor Corp. press release, the earnings per diluted share in Q2 this year is likely to double from the previous quarter. The Q2 results are expected to be in the range of $2.05 to $2.10 per diluted share, substantially higher over the previous quarter and previous year. The company had reported consolidated net earnings of $1.10 per diluted share in Q1 ’18 and $1.00 per diluted share in second quarter last year. It must be noted that the Q1 earnings had included an expense of $0.07 per diluted share on account of write-off of deferred tax assets at one of its subsidiaries.

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The performance of the steel mills segment is expected to post significant improvement in Q2 this year, as compared with the prior quarter. The average selling prices of steel mill products have jumped higher considerably. The profitability across various steel mill product groups is likely to see notable jump. The sheet mill performance is predicted to report strongest growth. The raw materials segment is also likely to post increased profitability in Q2, as compared with Q1 this year. The much stronger market conditions are likely to have positive impact on the company’s performance.

Commenting on the outlook for the rest of the year, Nucor Corp. stated that the strong performance and profitability are likely to continue through the remainder of the year. The steel end use markets are likely to remain strong. 

The company had recently announced investment of $240 million towards building new galvanizing line at Arkansas sheet mill.