Steel Mills
Nucor Sees Lower Q3 Earnings, Sheet Mills Take a Hit
Written by Ethan Bernard
September 14, 2023
Nucor expects third-quarter earnings to be lower sequentially and on-year, the steelmaker said in earnings guidance on Thursday.
The company reported it expects earnings in the quarter ended Sept. 30 to be in the range of $4.10 to $4.20 per diluted share. This compares with net earnings of $5.81 per diluted share in Q2’23 and $6.50 per diluted share a year earlier.
“We expect earnings for the steel mills segment to decline in the third quarter of 2023 as compared to the second quarter of 2023 primarily due to lower pricing, and to a lesser extent, volumes,” Nucor said in a statement.
The Charlotte, N.C.- based steelmaker said the largest hit on Q3 earnings is expected to occur at its sheet mills.
Also, the steel products segment’s earnings are expected to decrease in Q3’23 vs. the previous quarter “due to lower realized prices and volumes.”
Likewise, earnings for the raw materials segment are expected to fall from Q2’23. Nucor cited “margin compression at our DRI (direct-reduced iron) facilities and scrap processing operations.”
The company said it will release its Q3 earnings before the markets open on Tuesday, Oct. 24.
Ethan Bernard
Read more from Ethan BernardLatest in Steel Mills
Mexico’s TYASA breaks ground on SBQ rolling mill
Mexican steelmaker Talleres y Aceros (TYASA) broke ground this month on the construction of a new special bar quality (SBQ) rolling mill in the state of Veracruz.
Goncalves sees more US trade actions ahead, says Nippon deal for USS has ‘zero chance’
Cleveland-Cliffs’ Lourenco Goncalves thinks trade measures announced by the US government on Tuesday against China were just the opening salvo in a series of trade actions. Case in point: The Biden administration targeted China’s “unfair” trade policies with additional tariffs on an array of Chinese-made goods - including steel, aluminum, and EVs.
Nucor holds weekly HRC price steady after last week’s cut
Nucor chose to hold its consumer spot price (CSP) for hot-rolled (HR) coil steady this week after stunning the market last week with a significant price decline. The steelmaker said in a letter to customers on Monday morning that its $760-per-short-ton (st) CSP base price for HR coil is effective immediately. The price is unchanged from the CSP announced on May 6 but down $65/st from $825/st April 29.
Nucor’s Jellison set to retire, Spicer tapped for EVP role
Nucor said EVP Douglas J. Jellison plans to retire on June 8 after more than 33 years with the company. Randy J. Spicer will be promoted to EVP effective May 12.
Republican Senators demand Biden block USS sale to Nippon
Three vocal Republican senators are demanding that President Joe Biden block the sale of U.S. Steel to Japan’s Nippon Steel.