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 unveils new hydrogen-powered stainless line in Ohio
CEO Lourenco Goncalves, flanked by state leaders and union reps, touted the project as proof that US manufacturing is not only alive, but also advancing.
Cliffs idles Steelton, Riverdale, and Conshohocken operations
Cliffs has idled facilities in Riverdale, Ill., and Conshohocken and Steelton, Pa.
Radius loss narrows, volumes climb in ‘healthy’ West Coast market
Stronger steel demand in the Western US, rising scrap flows, and improved rolling mill utilization drove sequential gains for Portland, Ore.-based Radius Recycling.
AISI: Raw steel production backs off multi-year high
US raw steel output edged lower last week after hitting a multi-year high in mid-June, according to the American Iron and Steel Institute (AISI).
Private equity firm Atlas Holdings to acquire Evraz North America
Atlas Holdings said it has signed a definitive agreement to acquire Evraz North America (Evraz NA). The Greenwich, Conn.-based private equity firm said it expects the deal for the Chicago-based steelmaker to close in the second quarter of 2025 subject to various closing condition.