Nucor Projects 2nd-Quarter Earnings Below Analyst Expectations

   By Tess Stynes 
 

Nucor Corp. (NUE) forecast second-quarter earnings well below analysts' expectations as the operating performance in its steel mills business weakened from the first quarter.

Nucor, the second-largest U.S. steelmaker by production, projected per-share earnings of 25 cents to 30 cents, while analysts polled by Thomson Reuters most recently forecast 38 cents.

The company said a weaker performance in its sheet and structural steel operations during the quarter was somewhat offset by improvement in the plate steel space. Nucor also expects its fabricated construction products businesses will return to a profit after posting a modest loss during the first quarter.

So far this year, Nucor said, nonresidential construction markets still lack sustained momentum, though they are slowly improving from historically low levels.

Nucor in April reported that its first-quarter profit dropped 42% as production and selling prices declined, though input costs were also down.

Shares were down 1.6% at $43.21 in recent premarket trading. Through Wednesday's close, the stock is up 1.8% this year, trailing the broader market.

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