This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Nucor, Channeling Eeyor, Is Gloomy on Bullish Day

CHARLOTTE, N.C. ( TheStreet) -- Nucor (NUE - Get Report), the big steelmaker, outdid Wall Street profit expectations when it reported second-quarter results before the opening bell Thursday, but the company continued to describe its near-term business prospects in cautious, downbeat tones.

In contrast to other industrial giants, from Caterpillar (CAT) to Freeport McMoRan (FCX) to 3M (MMM), which have enthused this earnings season about a building recovery, Nucor once again introduced its own bit of worry and gloominess into the proceedings, like Eeyore.
Eeyore

In a statement, Nucor said, "The continuation of the upward trend experienced through the first half of the year is by no means clear at present. There is a general slowdown taking place across all product lines as the overall economy has entered into a new period of uncertainty. This is the case both in the U.S. and globally."

Led by its outspoken CEO, Dan DiMicco, the company has a long history of offering up conservative takes on its business prospects.

It's true, thought, that a large chunk of Nucor's business is the manufacture and sale of steel used in rebar and I-beams. For the company to return to full health, then, Nucor requires the recovery of the construction industry, which by all accounts remains moribund. "The most challenging markets for our products continue to be those associated with residential and non-residential construction, which continue to show little, if any, strength," Nucor said in its earnings release. The language was almost identical to that used by the company over the last handful of quarters.

A host of concerns had spooked the steel industry heading into this earnings season, including the notion that steelmakers had increased capacity a bit too quickly in the first part of the year, getting ahead of real demand. Nucor appears to have responded to this. The company said overall operating rates at its mills fell slightly compared to the first quarter of the year, to 71% of total capacity from 73%.

In the second quarter, Nucor, a scrap-metal recycler that produces more steel than any other U.S. manufacturer, reversed a year-ago loss as prices for its steel jumped 25% from a year ago and shipments to outside customers rose 35%.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AKS $3.04 -3.00%
NUE $44.23 -1.40%
STLD $20.03 -1.90%
X $19.64 -2.20%
AAPL $121.40 -0.79%

Markets

Chart of I:DJI
DOW 17,726.08 -19.90 -0.11%
S&P 500 2,108.13 -0.50 -0.02%
NASDAQ 5,135.5490 +6.7640 0.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs