Steel Mills

Nucor Guidance Below Consensus but Sees Improvement in 2016
Written by Sandy Williams
March 14, 2016
Nucor guidance for first quarter 2016 came in below analyst consensus. Nucor expects first quarter results in the range of $0.20 to $0.25 per diluted share compared to $0.21 in Q1 2015 and adjusted net earnings of $0.45 per diluted share in Q4 2015. Analysts polled by Reuters expected earnings results of $.29 per share.
First quarter earnings are expected to benefit from lower average cost of inventory and a modest improvement in market conditions, said Nucor. Import volumes have shown a small decline and inventories are more balanced at service centers.
Nonresidential construction was slower in first quarter due to normal seasonality but is expected to improve as 2016 progresses. Automotive demand remains strong but weakness continues in energy, heavy equipment and agricultural markets.
Nucor expects a satisfactory conclusion to several trade cases that are currently in progress in the Department of Commerce. “We are confident that once all the facts are known, final determinations by the Department of Commerce will fully address all dumping and subsidies associated with these cases.”
Wrote Nucor in its guidance comments, “Although conditions in world markets remain uncertain, we now believe that full year 2016 profitability will be slightly improved compared to full year 2015 results, excluding the impairment charges taken in the prior year. This improved performance is driven by expected increases in the performance of the steel mills and steel products segments.”

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

Domestic mill shipments slip in July: AISI
US steel shipments decreased month over month in July, but were up from last year, according to the latest figures from the American Iron and Steel Institute (AISI).

Nippon and USS drop litigation vs. USW and Cliffs
Another chapter of the Great U.S. Steel Buyout of the 2020s melodrama has closed, with all involved parties terminating the litigation disputes between them.

Steel Summit: Analysts say demand likely to struggle until 2027
Steel industry analysts at this year's SMU Steel Summit said they see lackluster demand through this year and next.

USS Clairton begins full production of batteries 19 and 20, 13 and 14 hot idled
U.S. Steel has activated batteries 19 and 20 at its Clairton Coke Works facility after pausing each “out of an abundance precaution” following an explosion at the site on Aug. 11.

Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.