Steel Mills
Nucor Guides Lower for Third Quarter
Written by Sandy Williams
September 17, 2019
Nucor expects a weaker performance from its steel mills segment in the third quarter due to lower prices for sheet and plate steel.
“Although we still see stability in most of the end-use markets that we serve, there has been some softening in automotive, agricultural products and power transmission markets,” said the company in guidance remarks.
A strong nonresidential construction market and efficiency improvements in Nucor’s rebar fabrication and metal buildings segment is expected to result in higher profits for the steel products segment.
The DRI facility in Louisiana began a maintenance outage last week that will continue through mid-November. The outage and margin compression in the DRI business is projected to decrease the performance of the raw materials segment.
Earnings guidance is now in the range of $0.75 to $0.80 per diluted share, down from $1.26 per diluted share in the second quarter and $2.13 per share in Q3 2018.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
SSAB announces $74M expansion in Alabama
The project will expand heat treat capacity at its Axis, Alabama plant
ArcelorMittal’s EAF in Alabama expects first heat in Q2
The facility at AMNS Calvert will be the first EAF in North America capable of supplying exposed automotive grades with domestically melted and poured material.
Nucor’s Topalian lauds Trump’s trade policies, downplays impact
Nucor’s top exec Leon Topalian said the benefit of the current administration’s aggressive trade policies “trumps” any risk of potentially higher raw materials prices.
SSAB reports higher production, shipments
But profits slipped vs. last year.
Nucor earnings slump in first quarter, but better times seen ahead
Nucor’s profits fell precipitously in the first quarter, but the company has a rosier outlook for the following quarter.