Steel Mills

Nucor Guidance for Q2 2014
Written by Brett Linton
June 20, 2014
Nucor Corporation (NYSE: NUE) announced today guidance for Q2 ending July 5, 2014. The full press release can be viewed here. Below are key sections of the report:
Nucor expects second quarter results to be in the range of $0.35 to $0.40 per diluted share. This range represents an increase from the second quarter of 2013 earnings of $0.27 per diluted share and is comparable with first quarter of 2014 earnings of $0.35 per diluted share.
An earlier conference call from Nucor mentioned that they “currently expect some improvement in second quarter of 2014 earnings from the first quarter of 2014, excluding the impact of the tax and disposal of assets charges incurred in the first quarter.”
Due to performance of their raw materials segment, Nucor anticipated a $30 million loss at the new direct reduced iron (DRI) plant in St. James Parish, Louisiana. The release noted that this DRI plant “has continued to exceed our volume expectations while producing excellent quality DRI units; however, yield loss remains higher than desired.” A three week outage began in June to make adjustments to improve yield and conversion costs at the facility. Significant performance improvements are expected in Q3, with profitable performance anticipated by the end of the year.
The report continued, “Overall operating performance at our steel mills segment is expected to be slightly improved compared to the first quarter of 2014, as improvements in sheet and plate profitability are partially offset by lower profitability in structural steel. In June, Nucor-Yamato Steel is undergoing a planned three week outage associated with our $115 million sheet piling capital project. This planned outage will result in lower shipments for structural steel. Import levels continue to negatively impact pricing and margins, particularly at our bar and sheet mills. Additionally, the second quarter of fiscal 2014 is four days shorter than the first quarter of 2014, contributing to lower shipments. Steel demand continues to be strong, particularly for sheet and plate products.”

Brett Linton
Read more from Brett LintonLatest in Steel Mills

Nucor names Batterbee, Bledsoe to HR roles
Nucor Corp. has promoted Thomas J. Batterbee to the position EVP of human resources and talent and appointed Elizabeth Bledsoe to the newly created position of president of human resources and talent.

Millett sees tariffs, CORE case benefiting SDI
Steel Dynamics' top exec thinks Trump’s tariff policies, as well as the results from the recent CORE case, will prove advantageous to the Fort Wayne, Ind.-based steelmaker and aluminum company.

USW digs in on opposition to USS-Nippon deal
“We remain deeply concerned about the national and economic security implications of the subject transaction,” the union stated in the letter dated April 21.

SDI’s Q1 earnings slump on-year, but up sequentially
SDI earnings slip in first quarter year over year, but are up sequentially.

POSCO inks MoU with Hyundai on Louisiana EAF mill
POSCO has signed a Memorandum of Understanding (MoU) with Hyundai Motor Group that includes an equity investment in Hyundai’s previously announced EAF mill set to be built in Louisiana.