Nucor warns that influx of cheap steel will drag on earnings
Charlotte-based steel maker Nucor warned Wednesday that the influx of cheap steel imports into the U.S. market will weigh on its fourth-quarter financial results.
Nucor expects its fourth quarter profit will be in the range of 15 cents to 20 cents a share, down from profit in the same period last year of 65 cents a share, according to a company statement. In the third quarter of this year, earnings were 71 cents a share.
Nucor said its sheet and bar steel mills have experienced a margin decrease as selling prices erode more than the decline in raw material pricing.
“This performance is due to continued deterioration in global steel markets amplified by global excess capacity and historically high import levels,” the company said.
Nucor’s shares closed at $38.66 Wednesday, down 3.76 percent.
The flood of foreign steel into the U.S. pushes down Nucor’s prices, the company has said before. The company also warned of its impact on fourth quarter results in October.
The steelmaker has its Charlotte headquarters in SouthPark, where it employs about 100 people.
Katherine Peralta: 704-358-5079, @katieperalta
This story was originally published December 16, 2015 at 6:06 PM with the headline "Nucor warns that influx of cheap steel will drag on earnings."