Nucor 3rd-Quarter Profit Up 34% Amid Strong Shipments, Production

   By Tess Stynes 
 

Nucor Corp.'s (NUE) third-quarter earnings rose 34% as the steel maker reported improved performance at its steel mills offset impacts from weak average selling prices.

Steel industry demand has broadly been benefiting from the resurgence of U.S. car makers as well as increased oil and gas drilling, though lately performance in the sector has been under pressure from a global oversupply that has weighed on prices.

Due to typically low volumes in the fourth quarter and planned outages at a number of operations, the company said it expects to see moderately lower earnings for the period.

Nucor reported a profit of $147.6 million, or 46 cents a share, up from $110.3 million, or 35 cents a share, a year earlier. The latest period included write-downs of three cents a share related to a dome collapse at its reduced iron plant in Louisiana. The company recently projected 35 cents to 40 cents, including inventory-related items.

Revenue increased 2.9% to $4.94 billion, above analysts' estimates of $4.8 billion.

Average selling prices declined 4% in the quarter but were offset by increased mill production and shipments as well as lower costs for scrap and scrap substitutes.

Shares recently traded up 31 cents at $50.12. The stock is up 15% this year.

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