Steel Mills
Nucor Guidance Indicates Improvement in Q3
Written by Sandy Williams
September 17, 2015
Nucor guidance for third quarter 2015 beat analyst estimates. Results are expected to be in the range of $0.45 to $0.50 per diluted share, up from $0.39 in second quarter but a decrease from 2014 Q3 earnings of $0.76 per diluted share.
Nucor said margins have benefited from lower inventory costs in third quarter. The automotive markets remain strong and nonresidential construction continues to gradually improve. Weakness, however, is still evident in energy, heavy equipment and agriculture.
Imports continued to pressure margins and prices during the quarter. Steel imports claimed 30 percent of the finished steel market in the first eight months of the year compared to 27 percent in the same period in 2014.
The downstream products segment improved significantly year to date due the slow but steady growth in nonresidential construction.
The raw material segment is expected to show similar results as second quarter. The company anticipates an estimated $20 million operating loss at Nucor Steel Louisiana. A $20 million loss was also recorded in second quarter but included the benefit of a $10 warranty payment related to repair of the process gas heater. Scrap performance is expected to decrease in third quarter due to low prices.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Cliffs CEO reassures of Dearborn restart goal as UAW rallies to ‘Save the Rouge’
“We are committed to bring the hot-end back to full operation. The goal is to bring back to work all employees of the currently idled units as soon as we can," Chairman, President, and CEO Lourenco Goncalves said in a letter to colleagues on Wednesday.
USS Clairton Coke Works reports explosion
U.S. Steel’s Clairton Coke Works experienced a powerful blast at 10:51 a.m. local time on Monday. First reports suggest the explosion sparked a destructive fire at the site.
Nucor lowers HR coil spot price by $15/ton
Nucor has implemented a double-digit price decrease on spot hot-rolled (HR) coil for the second consecutive week.
Hot-rolled coil market remains slow, market participants say
Hot rolled spot market participants reported another week of moderate demand and ample supply, with no strong signs that conditions will change next week.
CRU: Blackout knocks out ArcelorMittal mill ‘for months’
Truchas works in Lazaro Cadenas, Michoacan, western Mexico. Repairs may take up to six months.