Steel Mills
Steel Imports Affecting Nucor 4Q Earnings
Written by Sandy Williams
December 16, 2014
Nucor Corporation expects a “moderate” decrease in earnings in the fourth quarter along with a seasonal drop in operating performance. In the company’s fourth quarter earnings guidance, Nucor noted that exceptionally high import levels have put pressure on steel production and margins. A larger than expected decrease in outside shipments is expected in the fourth quarter.
The company is forecasting earnings of $0.50 to $0.55 per share which is lower than industry analysts consensus of $0.65 per share.
Nucor Steel Louisiana DRI operations remain idle since the process gas heater failure on November 2, 2014. Operations are not expected to resume until first quarter 2015 due to the lead times on specialty steel pipes that must be replaced. An operating loss of approximately $30 million is expected at the Louisiana operations.
Nucor’s guidance also stated that their scrap processing business is also expected to show decreased performance during fourth quarter 2014.
Nucor anticipates that Nucor Gallatin profits will more than offset $9 million of purchase accounting expenses incurred during the quarter.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Nippon’s Mori meets with Pa. Gov. Shapiro: Report
Nori, a top Nippon Steel official, met on Tuesday with Pennsylvania's governor, to discuss its proposed acquisition of U.S. Steel.
Nippon won’t import slabs to US if U.S. Steel deal goes through
Nippon Steel has affirmed that if its $14.9-billion bid for U.S. Steel proves successful, the Japanese steelmaker will not import overseas-produced slabs to the US.
AISI: Raw steel production falls to 5-week low
Domestic raw steel mill production slipped to a five-week low last week, according to the latest figures released by the American Iron and Steel Institute (AISI). Weekly production is now at the third-lowest level recorded this year.
Nucor maintains HR price at $750/ton
Nucor’s weekly consumer spot price (CSP) for hot-rolled (HR) coil was unchanged week on week (w/w) at $750 per short ton (st) on Monday, Nov. 18.
Mexican court orders sale of officially bankrupt AHMSA
After failing to reach agreements with its creditors, Altos Hornos de México (AHMSA) has been formally declared bankrupt by a Mexican bankruptcy court.