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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Nucor Management Discusses Q2 2012 Results - Earnings Call Transcript

I'll then ask our CFO, Jim Frias, to discuss our second quarter results and financial position. He will be followed by John Ferriola, who will report on Nucor's operations and growth initiatives. Then, I will conclude our presentation with some general comments on the economy and Nucor's growth strategy. Jim?

James D. Frias

Thanks, Dan, and good afternoon. Second quarter 2012 earnings of $0.35 per diluted share were at the low end of our guidance range of $0.35 to $0.40 per diluted share. Our second quarter results were negatively impacted by a noncash charge of $8.5 million or $0.02 per diluted share due to purchase accounting charges and intercompany profit eliminations related to our Skyline acquisition. These costs were not factored into our guidance, which was issued several days prior to the closing of the acquisition.

Second quarter results also included an impairment charge of $0.09 per diluted share related to our Duferdofin-Nucor joint venture located in Italy. This impairment charge was factored into our mid-quarter quantitative guidance. Nucor acquired its 50% interest in Duferdofin, a producer of beams and bars, in July of 2008 for a cash purchase price of approximately $667 million. Our $30 million impairment charge resulted from Duferdofin's disappointing performance through the first half of 2012, combined with increasing economic turmoil in Europe. It incorporates the impact on our fair value model of both greater losses in the near term and a slower than previously expected recovery to historic profitability. Although our timing on this acquisition has proven to be poor in the short run, we continue to view Duferdofin as a very attractive asset offering solid long-term value.

Nucor's second quarter operating performance reflected mixed trends across our diverse product portfolio. Profitability at our steelmaking business has been severely impacted by an import search across most products. The sheet steel markets have also been challenged by new domestic supply that began production in 2011. Lower scrap pricing has depressed the profitability of our scrap processing business.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,901.84 -10.27 -0.06%
S&P 500 1,974.73 +4.78 0.24%
NASDAQ 4,468.8650 +26.1670 0.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs