Steel Mills

Nucor Guides Lower for Third Quarter

Written by Sandy Williams

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.

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