Nucor Shares Fall as Guidance Misses Estimates
December 16 2015 - 9:20AM
Dow Jones News
Nucor Corp. issued fourth-quarter earnings guidance well below
Wall Street views amid expectations that the operating performance
of its steel mills segment will weaken from the previous
quarter.
The Charlotte, N.C., company's shares fell 4.3% to $38.44 in
recent premarket trading.
For the current quarter, the company forecast per-share earnings
of 15 cents to 20 cents. Analysts polled by Thomson Reuters had
expected per-share profit of 49 cents.
Nucor said that margins at its sheet and bar steel mills have
been hurt by low selling prices owing to a deterioration in global
markets and high import levels.
Nucor and other U.S. steelmakers have sought help from the
government in response to a flood of imports that have weighed on
steel prices. The companies have said they are the victims of
illegal trade practices.
In its news release Wednesday, the company said that U.S.
efforts to curb the inflow of low priced exports haven't moved as
quickly as Nucor would like. However, Nucor also stated that it
expects that preliminary antidumping duties and other developments
should have a positive impact on domestic steel mills in the first
half of next year.
The company also said the automotive market remains strong,
though energy, heavy-equipment and agricultural markets remain
weak. Nonresidential construction markets, while improved from last
year, have been slowing as a result of seasonal factors.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
December 16, 2015 10:05 ET (15:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Nucor (NYSE:NUE)
Historical Stock Chart
From Apr 2024 to May 2024
Nucor (NYSE:NUE)
Historical Stock Chart
From May 2023 to May 2024