Weak volumes and prices drive losses United States Steel Corporation (X) recorded its third sequential loss -- $3.03 billion or $2.11 per share in the third quarter of 2009 in contrast to a net income of $9.19 billion or $7.79 per share in the third quarter of 2008. However, losses narrowed sequentially and were lower than the Zacks Consensus Estimate of a loss of $2.91. On a year-over-year basis, revenues were down 61% to $2.82 billion, driven by a 35% year-over-year decline in total steel shipments to 4.2 million tons. However, shipments increased 41% quarter on quarter. The company saw lower year-over-year volumes and prices across all major segments on the back of a slump in the economy. Additionally, increasing competition from China and weak demand in major markets, especially Europe, which resulted in lower capacity utilization have impacted results. Two of the company’s ...

Net losses for Nucor Corporation (NUE), the largest recycler of steel scrap in the US, narrowed to $29.5 million, or 10 cents per diluted share, for the third quarter of 2009. The result was narrower than the Zacks Consensus Estimate for a loss of 14 cents.

In the second quarter, NUE announced a net loss of $133.3 million, or 43 cents per diluted share. However, the performance is dismal compared to a net income of $734.6 million, or $2.31 per share, in the third quarter of 2008.

Losses in the quarter were driven by the negative impact of high-cost pig iron inventories of about $180 million, or 37 cents per share. However, the company claims that the consumption of the high-cost pig iron inventories was completed by the close of the quarter. Additionally, pre-operating and start-up costs of the new facilities increased 58% year over year to $47.1 million in

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OK, the financial press spin in favor of "green shoots" is getting absurd. The AP headline on the story about the Fed Beige Book reads: "Fed survey sees signs recession is easing." Did the reporter even bother to read the report, or did he write the headline first to show what he wanted the report to show, not what it actually said?Here is the link to the whole beige book, and a few key sections (with my comments in between paragraphs):"Reports from the twelve Federal Reserve District Banks indicate that economic conditions remained weak or deteriorated further during the period from mid-April through May. However, five of the Districts noted that the downward trend is showing signs of moderating. Further, contacts from several Districts said that their expectations have improved, though they do not see a substantial increase in economic activity through the ...

Nucor Corporation (NUE) is the nation's largest recycler of steel scrap. Long-term contracts, constant cost-reduction efforts, higher steel prices, lower interest rates, strong cash flow position and a dominant acquisition strategy inspire our optimism with respect to the stock's performance in the coming quarters. The company's third-quarter 2008 profit nearly doubled, mainly because of robust sales from recently acquired steel and scrap-metal companies.However, the company expects a 40% decline in steel shipments for the fourth quarter of 2008, which will result in lower earnings. A slowdown in steel demand from the automobile sector and increased production in China are matters of concern.Rising prices of raw materials such as scrap and natural gas are serious issues facing the company. Thus, we maintain our Hold rating.Read the full analyst report on NUE "NUE" Free Stock Analysis: Buy? Sell? ...

Nucor Corp. (NUE) said that it expects to earn a marginal profit for the fourth quarter, as the steelmaker is finding it difficult to deal with the falling demand.

The Charlotte-based company projects a 40% decline in its steel shipments for the fourth quarter in comparison to the previous quarter's levels. Nucor expects its average steel mill utilization rate to be slightly higher than 50%.

Analysts forecast earnings of $1.55 for the current quarter.

Meanwhile, the company raised its quarterly dividend to 35 cents from 32 cents a share, but suspended payment of a bonus dividend.

Shares are up more than 5% today. Nucor is a Zacks #3 Rank ("Hold") company.

"NUE" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research