Steel Mills

Trade Cases Contributing to Stronger Second Quarter

June 16, 2016

Nucor Corporation says flat rolled-trade cases are having a positive impact on reducing steel imports. The expectation is that final determinations in all three flat rolled cases will result in higher duties than currently being collected from the preliminary decisions.

Second quarter results are expected to be significantly improved from first quarter due to higher average selling prices and improved volumes. Earnings per diluted share are anticipated to be in the range of $0.65 to $0.70, up from $0.39 in Q2 2015 and $0.22 in Q1 2016.

Sheet mills have benefited from lower inventory levels in the supply chain, particularly at service centers, and from decreased imports. Average sheet pricing is up significantly but because contract pricing represents more than 50 percent of Nucor’s sheet steel shipments, the full benefit will not be realized until third quarter.

The energy, heavy equipment and agricultural markets remain weak but automotive continues to be strong.

Growth in the nonresidential market is expected to positively impact the downstream products segment.

Said Nucor, “We believe that the performance of the downstream products segment for the full year 2016 will be improved compared to 2015, despite higher expected steel costs in the current year and minimal benefits from the 2015 highway bill, which we believe we will have a greater impact on future years’ performance.”

The raw materials segment will show improvement in second quarter due to increased pricing at Nucor’s scrap processing business and DRI facilities.