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
U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.
August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.
TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.
Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.
ArcelorMittal Dofasco resumes cokemaking after emergency maintenance
The Canadian steelmaker reported on Sept. 30 that “urgent maintenance” was needed in its coke plant off-gas systems. The work required coke oven gas from the No. 2 coke plant to be flared for most of that week.