Corporation | Investor Relations | Other Financial Information. Nucor's CEO Discusses Q4 2011 Results - Earnings Call Transcript. Nucor (NUE) Q4 2011 Earnings Call January 26, 2012 2:00 PM ET Operator Good day, everyone, and welcome to the Nucor Corporation Fourth Quarter and Year End 2011 Earnings Conference Call. As a reminder, today's conference is being recorded. [Operator Instructions] Certain statements made during this conference call will be forward-looking statements that involve risks and uncertainties. Although Nucor believes they are based on reasonable assumptions, there can be no assurance that future events will not affect their accuracy. Now for opening remarks and introductions, I'd like to turn the call over to Mr. Daniel R. Thank you, Marissa. First, and most importantly, I want to thank everyone on our Nucor, Harris Steel, David J. Earnings increased almost sixfold in 2011 to $778 million from 2010's net income of $134 million.
In 2011, we were able to expand our participation in markets, enjoying more robust demand which you'll hear more about later. James D. Thanks, Dan, and good afternoon. U.S. Steel leads solid sector rally - Market Extra. By Jim Jelter, MarketWatch SAN FRANCISCO (MarketWatch) — Steel stocks surged Monday, extending a rally that has carried shares of some of the biggest names in the industry 25% higher over the past two weeks. The latest catalyst was a note from UBS analyst Shneur Gershuni, who lifted his target price on United States Steel /quotes/zigman/295713/delayed/quotes/nls/x X +0.94% to $47 a share from $38 while leaving unchanged his buy rating on the stock. The note propelled U.S. Steel shares 7.3% higher to $31.90 by mid-afternoon, making it the best performer on the S&P 500 Index /quotes/zigman/3870025/realtime SPX +0.82% . Rising crude forces China price hike The rising cost of gas and diesel in China and how it is likely to impact that country's economy.
Since March 6, U.S. At the same time, Gershuni raised his recommendation on Steel Dynamics Inc. Rising U.S. car and truck sales, which last month hit a four-year high, have been especially supportive. AK Steel Holding Corp. Volume: 14,710. Nucor: Not The Steel Sector's Best Bang For Your Buck. Surprisingly, Nucor's stock has experienced a significant decline over the past 5 years despite a significant downturn in the economy. Nucor is one of the better positioned steel companies, but at the same time, the upside may also be lacking. Valuation: Nucor's trailing 5 year valuation metrics suggest that the stock is undervalued as all of the metrics are below their respective 5 year averages. Nucor's current P/B ratio is 1.9 and it has averaged 2.2 over the past 5 years with a high of 3.8 and low of 1.3. Nucor's current P/S ratio is 0.7 and it has averaged 0.9 over the past 5 years with a high of 1.3 and low of 0.5.
Price Target: The consensus price target for the analysts who follow Nucor is $48. That is upside of 6% from today's stock price of $45.4 and suggests that the stock is overvalued at these levels. This also suggests that the stock has limited upside and should be avoided at its current stock price. Receive future articles by this author via email: Follow Alex Shadunsky. Nucor Issues 1Q Guidance. Steelmaker Nucor Corporation (NUE) has provided its outlook for the first quarter of 2012. The company expects profits to be in the range of 30 cents to 35 cents per share, down from 43 cents per share in the fourth quarter of 2011 and 50 cents in the first quarter of 2011.
For the upcoming quarter, the Zacks Consensus Estimate is 37 cents per share. The current quarter earnings expectations also include a "Last In First Out" (:LIFO) charge of 3 cents per share. The guidance provided by Nucor is at the low end of its expectations released in the last quarter. The company expects flattening prices and compressed margins for the steel mill products due to increased competition and a revival in imports. However, unusual reduction in the raw material costs has affected steel mill consumers' buying patterns.
Nucor remains quite optimistic of the demand across end markets, including construction, despite excessive supply. However, Nucor suffers from inflated raw material costs. Zacks Industry Outlook Highlights: ArcelorMittal, AK Steel Holding, Nucor and U.S. Steel. For Immediate Release Chicago, IL – March 16, 2012 – Today, Zacks Equity Research discusses the Metals & Mining Industry, including ArcelorMittal (MT), AK Steel Holding Corporation (AKS), Nucor Corporation (NUE) and U.S. Steel Corp (X). A synopsis of today’s Industry Outlook is presented below. The full article can be read at As the major shareholder (about 60%) of the metals market, the steel industry was severely bruised by the global economic downturn. But the recovery has been swift and forceful. According to the World Steel Association, world crude steel production was a record 1,527 million tons (Mt) in 2011, outperforming the 2010 record of 1,414 Mt, a 6.8% jump.
China continues to retain its status as the largest steel producing country, yielding almost half of the global output at 46%, and growing 8.9% year over year. The construction sector has been a drag on the steel companies’ earnings.