Nucor Corporation (NUE) reported better than expected third quarter earnings as metal margins came out better than what the sell side was expecting. Lower scrap cost was the reason for higher-than-expected margins. However, NUE is expecting Q4'12 earnings to decline sequentially due to high import levels, excess domestic supply, weak economic outlook, and seasonally weak demand in Q4'12.
In addition to declining steel mill profits, NUE is expecting LIFO credit to be approximately $0.05 in the fourth quarter, down from $0.16 in the third quarter. It is also expecting marginally higher start-up costs. The acquisition of Skyline was cash accretive in Q3'12 and is expected to be earnings accretive in Q4'12.
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