Steelmaker Nucor warned on Wednesday that third-quarter earnings would miss Wall Street's expectations because of weak demand from the automotive and housing sectors, along with higher raw material costs.
The company in July signaled that imports from China, coupled with the housing and automotive weakness, would pressure prices of steel sheets used in cars and construction.
Nucor forecast quarterly earnings of $1.10 to $1.15 per share, compared with $1.70 a year earlier. Analysts on average were expecting $1.26, according to Reuters Estimates.
The Charlotte, North Carolina-based company said it expected prices to improve during the fourth quarter on sheet and hold their own on most other mill products.
However, Nucor warned that profit margins on bar products might be squeezed in the coming months due to increasing woes in the residential housing, automotive and financial markets.
The company's shares were down 60 cents, or 1.1 percent, at $52.94 in morning New York Stock Exchange trade.