SEATTLE (Scrap Monster): Charlotte, N.C.-headquartered Nucor Corporation announced guidance for the first quarter of 2023 earnings.
For the quarter ending April 1, 2023, the company expects earnings to range between $3.70 and $3.80 per diluted share. This compares with the net earnings of $4.89 per diluted share in the sequential fourth quarter and $7.67 per diluted share in the corresponding quarter a year before.
According to company news release, it expects notable surge in profitability of the steel mills segment, upon comparison with the quarter before, mainly due to higher margins and volumes. The sheet mills projected to record the largest improvement.
The steel products segment profitability will likely witness decrease in profitability from Q4 2022, driven by slower construction activity and lower realized pricing. Overall, the steel products segment earnings are anticipated to be higher than Q4 2022.
The higher volumes at its DRI facilities and scrap recycling and brokerage operations may result in increased profitability in the raw materials segment.
The combined operating income from all the three business segments is expected to exceed that of the prior quarter. On the other hand, Nucor expects the consolidated net earnings to report decline, compared to the fourth quarter of 2022, due to less favourable intercompany eliminations and the absence of state tax benefits.