Not long after Steel Dynamics (NASDAQ:STLD) reported a stellar quarter, surprising analysts, Nucor Corp. (NYSE:NUE) has followed it up with a solid quarter as well, with profits soaring by about five times what they were in the same quarter last year.
Net earnings were $159.8 million, or 50 cents a share, compared with a profit of $31 million, or 10 cents a share, last year.
Sales climbed 32 percent to $4.83 billion, due to a 22 percent increase in the average sales price per ton and a 9 percent increase in shipments.
Analysts were looking for earnings of 36 cents a share and revenue of $4.47 billion.
The company said, "Profitability improved significantly as we progressed through the quarter, as utilization rates increased and as price increases for steel mill products caught up with higher raw material costs. Although we are seeing some signs of market weakness that may impact results near the end of the second quarter, we expect second quarter results to be an improvement over the first quarter. We continue to see slow, steady improvement in real demand in certain end markets.
"This is most evident in products sold to the manufacturing/industrial sector, including special bar quality products, sheet and plate. We are keeping a watchful eye on imports as any measurable increase in import levels will be a threat to current market stability, particularly in the sheet markets. The most challenging markets for our products continue to be those associated with residential and non-residential construction. We will provide quantitative earnings guidance later in the quarter."
Markets most under pressure continue to be those in relationship to residential and non-residential construction.
Nucor was trading at $46.23, gaining $0.25, or 0.54 percent, as of 12:30 PM EDT.
Thursday, April 21, 2011
Nucor's (NUE) Profits Soar Five Times in 1Q
Labels:
Earnings,
Nucor,
Steel Dynamics
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