Nucor (NUE) Tops Q4 EPS by 4c, Revenues Beat
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Revenue Growth %: -4.6%
Financial Fact:
Net earnings attributable to Nucor stockholders: 270.04M
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Nucor (NYSE: NUE) reported Q4 EPS of $0.35, $0.04 better than the analyst estimate of $0.31. Revenue for the quarter came in at $5.13 billion versus the consensus estimate of $4.94 billion.
"Stronger than expected steel mill segment performance in December was the primary driver for higher actual fourth quarter earnings than we indicated in our mid-December quantitative guidance," said Leon Topalian, Nucor's President and Chief Executive Officer. "We believe that the inventory destocking that occurred throughout most of 2019 concluded in the fourth quarter, when customers resumed more normal buying patterns. Additionally, general business conditions improved in the fourth quarter due to a number of factors, including a rate cut by the Federal Reserve, the new labor agreement between the United Automobile Workers and GM, and definitive progress on the trade front."
"For the full year, strong performance in many of our steel products businesses partially offset the impact of destocking on our steelmaking operations. In particular, our Vulcraft/Verco and Building Systems groups both achieved record profitability in 2019, reflecting both strong execution by our teammates and favorable nonresidential construction market conditions."
Mr. Topalian added, "We are encouraged by recent economic trends and confident that our positive momentum will continue in 2020. I would like to thank Nucor\'s dedicated teammates across the company for their continued focus on safety, serving our customers and creating value for shareholders."
First Quarter of 2020 Outlook
We expect Nucor's earnings in the first quarter of 2020 to increase as compared to the fourth quarter of 2019. We expect earnings in the steel mills segment to increase in the first quarter of 2020 as compared to the fourth quarter of 2019 (excluding the fourth quarter of 2019 impairment charge), due to the previously mentioned price increases and expected higher volumes. We expect a more stable pricing environment in 2020 after the severe inventory destocking that occurred in 2019. We expect the profitability of the steel products segment in the first quarter of 2020 to decrease as compared to the fourth quarter of 2019 (excluding the fourth quarter of 2019 impairment charges) due to normal seasonality. We expect the performance of the raw materials segment to increase in the first quarter of 2020 as compared to the fourth quarter of 2019, due to an improvement in pricing for raw materials, the absence of the impairment charge related to our proved producing natural gas well assets and no planned nonroutine outages at our Louisiana DRI plant.
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