Nucor reported a nearly 78 per cent slump in third-quarter profit on Monday as the company recorded impairment charges related to its steel products and raw materials businesses, sending its shares down three per cent after the bell.
U.S. steelmakers are facing a sluggish pricing environment as distributors hold back on purchases beyond immediate inventory needs because of an oversupply.
Nucor expects further sequential decline in fourth-quarter net earnings in its steel mills and products segments.
Organizations
Topics
The company posted a quarterly profit of nearly $250 million, or $1.05 per share, for the third quarter, accounting for impairment charges of $123 million.
Excluding items, the steelmaker earned $1.49 per share, beating the average analyst estimate of $1.47, according to data compiled by LSEG.
Revenue fell more than 15 per cent to $7.44 billion as the company struggled with weak prices and soft demand. That compared with estimates of $7.28 billion.
Average sales price per ton in the third quarter decreased six per cent from the second quarter and 15 per cent from a year earlier.
Last month, the North Carolina-based company forecast third-quarter profit to range between $1.30 and $1.40 per share.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Sriraj Kalluvila)
