(Reuters) – Nucor (NYSE:NUE) reported a nearly 78% slump in third-quarter profit on Monday as the company recorded impairment charges related to its steel products and raw materials businesses, sending its shares down 3% after the bell.
U.S. steelmakers are facing a sluggish pricing environment as distributors hold back on purchases beyond immediate inventory needs because of an oversupply.
Nucor expects further sequential decline in fourth-quarter net earnings in its steel mills and products segments.
The company posted a quarterly profit of nearly $250 million, or $1.05 per share, for the third quarter, accounting for impairment charges of $123 million.
Excluding items, the steelmaker earned $1.49 per share, beating the average analyst estimate of $1.47, according to data compiled by LSEG.
Revenue fell more than 15% to $7.44 billion as the company struggled with weak prices and soft demand. That compared with estimates of $7.28 billion.
Average sales price per ton in the third quarter decreased 6% from the second quarter and 15% from a year earlier.
Last month, the North Carolina-based company forecast third-quarter profit to range between $1.30 and $1.40 per share.