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Dec. 13, 2006 — Nucor Corp. announced that expects to report fourth quarter earnings in the range of $1.05 to $1.15 per diluted share. Nucor earned $1.09 per diluted share in the fourth quarter of 2005.

Nucor attributes its less-than-expected fourth quarter earnings to lower-than-expected spot market prices for sheet and bars, as well as scrap prices that have not decreased as much as anticipated, both of which have negatively impacted margins. Nucor also says that continued high customer inventories and record levels of imports have negatively affected both fourth quarter production and shipments, which will be down an estimated 12% to 15% versus the third quarter, and will be only marginally down year over year.

Although Nucor’s fourth quarter guidance represents historically strong earnings, it is below the record earnings of $1.68 per diluted share the company had reported in the previous quarter, which ended September 30, 2006. Nucor had issued qualitative downward guidance for its fourth quarter (which ends December 31, 2006) in its third quarter earnings release and quarterly conference call.

Despite the downward fourth-quarter guidance, Nucor says that 2006 will still be the company’s third consecutive record year for earnings, production and shipments.

Looking forward, Nucor says it expects demand for the company’s products to continue to be strong through next year. The company says that although service centers and OEMs continue to implement inventory corrections, and domestic production continues to be cut back, the continued record levels of imports of finished steel are delaying this inventory correction.

The company says that although it expects to see inventories back to desired levels by the end of the first quarter, this will depend on a significant reduction of import volumes from current levels, particularly from China.

Nucor and affiliates manufacture steel products, with operating facilities in nineteen states. Products include carbon and alloy steel bars, beams, sheet and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; metal building systems; and light gauge steel framing. Nucor is the nation's largest recycler.

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