Nucor Warns of Big 3Q Profit Decline As Steel Prices Fall
Steelmaker cited an impairment and lower earnings from the steel-mills segment as selling prices have fallen
Nucor decrease; red down pointing triangle warned of a big year-over-year earnings decline in the current quarter after steel prices fell and the company incurred a hefty impairment charge.
The Charlotte, N.C., steelmaker Tuesday said it expected to post a profit of 87 cents to 97 cents a share for its third quarter ending Sept. 28, down from $4.57 a share in the same quarter last year.
Stripping out $123 million in one-time noncash charges, adjusted earnings are projected to hit $1.30 to $1.40 a share. Analysts polled by FactSet had been forecasting $1.81 a share.
The excluded charges are tied to the impairment of certain noncurrent assets in Nucor’s raw-materials and steel-products units.
Beyond the impairment, earnings are set to decline because of lower earnings from the steel-mills segment as selling prices have fallen. The steel-products unit is expected to record lower prices and volumes, the company said.
Nucor warned in July that its third-quarter profit was expected to drop sequentially due to lower steel prices.
Shares fell 1.7% to $140.50 in premarket trading.