WASHINGTON (dpa-AFX) - Nucor Corp. (NUE) on Thursday provided earnings outlook for the second quarter ending June 30, 2018 above analysts' estimates and said it expects earnings to also increase significantly compared to the preceding first quarter of 2018.
In addition, Nucor said it expects strong performance as well as profitability to continue through the remainder of the year. The company's shares are rising more than 3 percent in pre-market activity.
Nucor expects second-quarter earnings in a range of $2.05 to $2.10 per share. This range is an increase compared to the net earnings of $1.10 per share in the preceding first quarter and earnings of $1.00 per share in the same period last year.
On average, fourteen analysts polled by Thomson Reuters expect the company to report earnings of $1.68 per share for the quarter. Analysts' estimates typically exclude special items.
Nucor noted that the improved earnings is the result of much stronger market conditions that it believes has been positively impacted by deregulation, tax reform and higher, stable oil prices.
The preceding first-quarter earnings results included an expense of $21.8 million, or $0.07 per share, related to the write off of deferred tax assets due to the change in the tax status of a subsidiary.
The performance of the steel mills segment is expected to be significantly improved in the second quarter of 2018 as compared to the first quarter of 2018 due to higher average selling prices and increased profitability across all steel mill product groups, with the strongest increase at the company's sheet mills.
The company also expects increased profitability in its steel products segment and raw materials segment in the second quarter of 2018 as compared to the first quarter.
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