Steel Mills
Nucor Issues Positive Q1 Guidance Amid Volatile Prices
Written by Tim Triplett
March 17, 2022
Nucor Corp., the largest steelmaker in the U.S., expects to achieve record first quarter earnings in the range of $7.20 to $7.30 per diluted share. That’s down from earnings of $7.97 per share in the prior quarter but double $3.10 per share in the same quarter last year.
Steel mill segment earnings in the quarter ending this month will be down from Q4 2021 primarily due to the decreased profitability of the sheet mills. While end-market demand remains strong, average realized selling prices in sheet have softened during the first quarter reflecting increased import volumes coupled with modest destocking, the company said.
Nucor expects its steel products segment to generate increased earnings in the first quarter due to continued strong nonresidential construction-related demand and expanding profit margins.
First-quarter earnings for the raw materials segment are expected to be in line with fourth-quarter performance.
“Continued solid demand across most end markets we serve combined with the strength of Nucor’s business model provide confidence that 2022 will be another very strong year,” the company said in earnings guidance released today. “We have recently announced price increases across the steel mills segment and expect profitability to improve. Recent geopolitical events and the resulting price increases for steelmaking raw materials have accentuated the value of Nucor’s adaptive business model and flexible raw materials profile.”
Big declines in steel sheet prices in January and February took the benchmark hot rolled coil price down to $1,000 per ton, putting pressure on margins for Nucor and other mills. But a big surge in steel prices this month prompted by the effects of the war in Ukraine should bolster earnings late in the quarter and later this year.
By Tim Triplett, Tim@SteelMarketUpdate.com
Tim Triplett
Read more from Tim TriplettLatest in Steel Mills
Cleveland-Cliffs quietly removes name from Steelton mill
The Cleveland-Cliffs name has been removed from its idled Steelton rail mill. SMU asked Cliffs about the move and if it might signal that it is selling the mill...
Nucor sees sequentially lower Q3 profits across all three business segments
Nucor's third-quarter earnings will be down quarter-over-quarter, but still higher than a year earlier.
Hyundai still on for Louisiana steel mill despite US raid at Georgia battery plant
Hyundai has reaffirmed its commitment to build a steel plant in Louisiana following a US government immigration raid at its battery facility in Georgia.
Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.
Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.