Steel Mills

Nucor Guidance for Q2 2014
Written by Brett Linton
June 20, 2014
Nucor Corporation (NYSE: NUE) announced today guidance for Q2 ending July 5, 2014. The full press release can be viewed here. Below are key sections of the report:
Nucor expects second quarter results to be in the range of $0.35 to $0.40 per diluted share. This range represents an increase from the second quarter of 2013 earnings of $0.27 per diluted share and is comparable with first quarter of 2014 earnings of $0.35 per diluted share.
An earlier conference call from Nucor mentioned that they “currently expect some improvement in second quarter of 2014 earnings from the first quarter of 2014, excluding the impact of the tax and disposal of assets charges incurred in the first quarter.”
Due to performance of their raw materials segment, Nucor anticipated a $30 million loss at the new direct reduced iron (DRI) plant in St. James Parish, Louisiana. The release noted that this DRI plant “has continued to exceed our volume expectations while producing excellent quality DRI units; however, yield loss remains higher than desired.” A three week outage began in June to make adjustments to improve yield and conversion costs at the facility. Significant performance improvements are expected in Q3, with profitable performance anticipated by the end of the year.
The report continued, “Overall operating performance at our steel mills segment is expected to be slightly improved compared to the first quarter of 2014, as improvements in sheet and plate profitability are partially offset by lower profitability in structural steel. In June, Nucor-Yamato Steel is undergoing a planned three week outage associated with our $115 million sheet piling capital project. This planned outage will result in lower shipments for structural steel. Import levels continue to negatively impact pricing and margins, particularly at our bar and sheet mills. Additionally, the second quarter of fiscal 2014 is four days shorter than the first quarter of 2014, contributing to lower shipments. Steel demand continues to be strong, particularly for sheet and plate products.”

Brett Linton
Read more from Brett LintonLatest in Steel Mills

Cleveland-Cliffs quietly removes name from Steelton mill
The Cleveland-Cliffs name has been removed from its idled Steelton rail mill. SMU asked Cliffs about the move and if it might signal that it is selling the mill...

Nucor sees sequentially lower Q3 profits across all three business segments
Nucor's third-quarter earnings will be down quarter-over-quarter, but still higher than a year earlier.

Hyundai still on for Louisiana steel mill despite US raid at Georgia battery plant
Hyundai has reaffirmed its commitment to build a steel plant in Louisiana following a US government immigration raid at its battery facility in Georgia.

Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.

Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.