Nucor Corporation (NUE) expects its second-quarter 2011 earnings to range between 75 and 80 cents per diluted share, up from 29 cents per diluted share a year ago, driven by improvement in demand in several key industrial sectors. This represents a growth of 160% to 180% year over year.
Projected second-quarter results include an estimated inventory charge of $31 million, or 6 cents per share.
Earlier in April 2011, Nucor reported a stupendous increase in profit to $190.8 million or 56 cents per share (excluding special items) in the first quarter of 2011 from $55 million or 15 cents per share (excluding special items) in the same quarter of 2010. With this, the company has surpassed the Zacks Consensus Estimate by 21 cents per share and its own guidance of 30 cents–35 cents per share.
Consolidated sales surged 32% to $4.83 billion due to a 22% increase in average price per ton and a 9% rise in shipments (to 6.0 million tons) to outside customers. It was higher than the Zacks Consensus Estimate of $4.43 billion.
Nucor expects results in the second quarter to improve compared with the first quarter, despite some market weakness that may impact results at the end of the second quarter. Further, the company continues to see slow but steady improvement in real demand in certain end markets.
Major competitors of Nucor Corporation are United States Steel Corporation (X) and Sumitomo Metal Industries (SMMLY).
The most challenging markets for its products are associated with residential and non-residential construction. The company retains a Zacks #3 Rank on its stock, which translates to short-term “Hold” recommendation.
NUCOR CORP (NUE): Free Stock Analysis Report
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