Nucor Profit Falls 39% on Steel Pricing Pressures

By Tess Stynes 

Nucor Corp. said its first-quarter earnings fell 39% as the steelmaker's margins and selling prices remained under pressure from increased imports.

North Carolina-based Nucor reported shipments to outside customers declined 9% and average selling prices dropped 5% during the latest quarter.

During January, the company said it planned to reduce production to support prices, which were at their lowest levels in five years. The company's pipe-and-tube segment has been hurt by competition from imports and low crude-oil prices, which have led exploration-and-production companies to rein in spending.

In its news release on Thursday, Nucor said its automotive markets remained strong and it continues to see improving demand in nonresidential construction markets.

Nucor expects its second-quarter earnings will improve somewhat from the first quarter. While steel-mill margins are expected to increase, they likely will remain under pressure because selling prices haven't fully stabilized and imports remain high, Nucor stated.

Overall, Nucor reported a profit of $67.8 million, or 21 cents a share, down from $111 million, or 35 cents a share, a year earlier. The company had projected per-share earnings of 10 cents to 15 cents.

Revenue decreased 14% to $4.4 billion, below estimates of analysts polled by Thomson Reuters for $4.71 billion.

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