MT NA : -0.83%
SGZ GY : +1.75%
TKA GY : +0.06%
VOE AV : +5.69%
Co issues downside guidance for Q1 (Mar), sees EPS of $0.30-0.35 vs. $0.48 Capital IQ Consensus. This range represents a decrease from the qualitative guidance presented in Q4 earnings release and conference call which stated "We currently expect that first quarter of 2014 earnings, excluding the impact of the fourth quarter out-of-period tax adjustment, will be similar to the fourth quarter of 2013 levels [$0.46]."
The larger factor impacting the first quarter was severe weather conditions, which has disrupted customer demand, decreased the amount of railcar availability and has exacerbated conditions in the seasonally weaker performance of our fabricated construction products businesses. Additionally, import levels have continued to negatively impact pricing and margins at our bar and sheet mills. Looking forward, we continue to see small but noticeable improvements in the nonresidential construction markets.
Projected Q1 results include an estimated LIFO charge of $14.5 million ($0.03 per diluted share) compared to a charge of $17.4 million ($0.04 per diluted share) in the fourth quarter of 2013 and a charge of $18.0 million ($0.03 per diluted share) in the first quarter of 2013. Also included in the projected first quarter results is an estimated $9.0 million charge ($0.02 per diluted share) related to the disposal of assets within the steel mills segment. Earnings in the fourth quarter of 2013 included an out-of-period non-cash gain of $21.3 million ($0.07 per diluted share) related to a correction to a deferred tax balance.