Nucor Corporation (NYSE:NUE) Q2 2019 Earnings Conference Call Transcript

Jul 18, 2019 • 02:00 pm ET

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Nucor Corporation (NYSE:NUE) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, everyone, and welcome to the Nucor Corporation Second Quarter of 2019 Earnings Call. As a reminder, today's call is being recorded. Later, we'll conduct a question-and-answer session and instructions will be given at that time.

Certain statements made during these conference call will be forward looking statements that involve risks and uncertainties. The words we expect, believe, anticipate and variations of such words and similar expressions are intended to identify those forward-looking statements, which are based on management's current expectations and information that is currently available. Although Nucor believes they are based on reasonable assumptions, there can be no assurance that future events will not affect their accuracy. More information about the risk and uncertainties relating to these forward-looking statements may be found in Nucor's latest 10-K and subsequently filed 10-Qs, which are available on the SEC and Nucor's website. The forward-looking statements made in this conference call speak only as of this date and Nucor does not assume any obligation to update them either as a result of new information, future events or otherwise.

For opening remarks and introductions. I'd like to turn the call over to Mr. John Ferriola, Chairman, Chief Executive Officer and President of Nucor Corporation. Please go ahead, sir.

Executive
John J. Ferriola

Good afternoon. Thank you for joining us for our second quarter earnings call and for your interest in Nucor. Other members of Nucor's executive team are also on the call today, including James Frias, our Chief Financial Officer; Craig Feldman, responsible for Raw Materials; Ladd Hall, responsible for Steel Products; and Ray Napolitan, responsible for Engineered Bar Products; MaryEmily Slate, responsible for Tubular Products; Dave Sumoski, responsible for Merchant Bar and Rebar Products; Leon Topalian, responsible for Beam and Plate Products; and Chad Utermark, responsible for Fabricated Construction Products.

My remarks will be brief this afternoon as we covered a lot of this material at our recent Investor Day event. Thank you to everyone who participated either in person or via the webcast. And for those who could not join us, a recording of the event and the slide presentation are available at nucor.com. Before we discuss our second quarter earnings, I would like to thank our teammates for continued excellent safety performance. Safety is the number one priority for everyone on the Nucor team, and we continue to work to improve it, identifying and mitigating risks and changing behaviors to achieve our goal of zero incidents at every Nucor facility.

Turning now to our performance in this quarter. Our financial results were lower than our expectations at the start of the quarter. Unusually wet weather and aggressive supply chain destocking impacted mill order rates in the first half of 2019. We have seen lower volumes during the first half of this year, resulting in a more challenging price environment.

However, real demand for our products remains strong in key end-use markets. We see healthy conditions in end-use markets that typically account for more than two-thirds of our steel shipments. For this reason, we are