Nucor Provides Update on First Quarter Performance
by David Fleschen
Nucor Corporation (NYSE: NUE) today announced that it expects to generate record earnings for its first quarter ending April 3, 2021. Nucor believes its first quarter net earnings could exceed $900 million.
"We are encouraged by positive economic trends and the robust demand we are seeing across our markets," said Leon Topalian, Nucor's President and Chief Executive Officer. "We currently expect our first quarter 2021 results to significantly exceed Nucor's previous record for quarterly net earnings, set in 2008. As we move through 2021, we remain focused on building on our momentum, meeting and exceeding our customers' needs, and delivering sustainable value creation for Nucor stockholders."
As noted in the Company's most recent earnings news release and conference call, business conditions are strong across most of the end-use markets Nucor serves.
- The Company's sheet, plate, bar and structural mills continue to forecast increased profitability in the first quarter of 2021 as compared to the fourth quarter of 2020. Realized prices and shipment volumes have increased for Nucor's steel mills in the first quarter as compared to the fourth quarter of 2020.
- The profitability of the Company's downstream steel products segment is expected to be similar to the segment's results for the fourth quarter of 2020.
- The raw materials segment's performance in the first quarter of 2021 is expected to be significantly improved as compared to the fourth quarter of 2020 due to higher raw materials selling prices.
While it is difficult to provide precise guidance this early in the quarter, Nucor has elected to provide this update due to what it sees as an unusually large gap between its internal forecast and the current mean estimate for its first quarter earnings. Strong January operating results, as well as recent revisions to internal forecasts, reinforce Nucor's confidence in its expected results. The Company will continue its regular practice of providing more specific quantitative earnings guidance on or about the 11th week of each quarter going forward.
Source: Nucor, Photo: Fotolia