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.