Nucor Corporation (NYSE:NUE) Issues Bullish Forecast For 3Q

Boston, MA 09/18/2014 (wallstreetpr) – Nucor Corporation (NYSE:NUE) expects its earnings in the current quarter to exceed what analysts have predicted. The company looks to achieve growth in the manufacturing, automotive and energy industries. Operation efficiencies and enhanced capacity are also expected to contribute positively in the current quarter’s performance and beyond. A number of analysts are on agreement with the company about its prospects.

The $17.73 billion steel and steel products company said its 3Q2014 GAAP earnings would be in the band of $0.70-$0.75. That compares with the estimate of $0.63 that analysts are looking for in the quarter. Nucor Corporation (NYSE:NUE) also forecast positively for its adjusted earnings, expecting EPS of $0.72-$0.77 for the quarter, ahead of the consensus estimate of $0.60.

Operating efficiency

The company expects to achieve the gains largely from its steel mills and from the sub-segments that cater for the manufacturing, energy and automotive businesses. Additionally, Nucor Corporation (NYSE:NUE) expects to reap the gains of efficient operations following the improvement of operating processes at its Louisiana plant. While the company expects to register an operating loss of $27 million at the Louisiana facility, Nucor looks forward to positive results because of the new processes at the plant and the lower costs of raw materials.

Capacity improvement

The other reason that makes Nucor Corporation (NYSE:NUE)’s future attractive is capacity enhancement. The company recently entered a deal to buy Gallatin Steel from the world’s largest steel maker, ArcelorMittal (MT) and Gerdau (GGB), its joint venture partner in the business. Nucor agreed to pay $770 million in cash to acquire the Gallatin plant, which is expected to improve its capacity in flat-rolled steel products. Gallatin Steel boasts 1.8 million tons in annual capacity.

Several analysts on Wall Street concur with Nucor Corporation (NYSE:NUE) about its performance and prospects. Analysts at Morgan Stanley (NYSE:MS), for instance, recently increased their target price on the stock to $62 from $55.26, perhaps in response to the company’s strengthening position in the steel business.

For consideration of being featured on WallstreetPR, contact: Editor@Wallstreetpr.com

Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any content posted on our website is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. WallStreetPR strongly recommends you consult a licensed or registered professional before making any investment decision. Neither WallStreetPR.com nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor (IA), or IA representative with the U.S. Securities and Exchange Commission, any state securities regulatory authority, or any self-regulatory organization. WallStreetPR often gets compensated for advertisement services that are disclosed on our disclaimer located at WallStreetPR.com/Disclaimer.

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.