Steel Mills
Nucor Reports Strong Q4
Written by Sandy Williams
January 27, 2015
Nucor Corp. reported net earnings of $210.4 million for the fourth quarter of 2014, compared to $245.4 million in the third quarter of 2014 and $170.5 million in the fourth quarter of 2013. The drop was expected due to typical seasonality in the fourth quarter and downward pressure on the industry from steel imports.
Net sales decreased 12 percent to $5 billion in the Q4 2014 compared to $5.7 billion in Q3. Sales increased by 2 percent year over year. Nucor shipped 6.07 million tons to outside customers in the fourth quarter, down 11 percent from Q3 and up 1 percent y/y. Total Q4 shipments were down 7 percent from Q3 and up 2 percent
Nucor consolidated net earnings for the full year 2014 jumped 46 percent year over year to $713.9 million. Net sales increased 11 percent to $21.11 billion, compared with $19.05 billion for 2013. Shipments to outside customers increased 7 percent y/y to 25,413,000 tons, an increase of 7 percent from the full year 2013.
Operations at Nucor Louisiana have been suspended since failure of the process gas heater in November. The company expects operations to resume late in first quarter of 2015 resulting in a small operating loss for first quarter 2015. Nucor Louisiana had an operating loss of $135 million in 2014 and $35 million after tax.
“Market conditions in the steel mills segment in the first quarter of 2015 will be impacted by challenges in energy markets due to customer inventory reductions caused by the recent collapse in oil prices. We do expect improvement in energy demand once inventory destocking is complete. Additionally, from a long-term macroeconomic perspective, we believe lower energy prices are good for the domestic economy and therefore good for Nucor. Import levels have continued to increase in 2015, and we expect imports to remain at high levels throughout the first quarter. The performance of our downstream products businesses is expected to decrease from the fourth quarter of 2014 due to typical seasonality experienced in the first quarter, and then to improve as we enter the construction season in the second quarter. We continue to see positive trends in nonresidential construction markets which should benefit our steel mills and fabricated construction products businesses as the year progresses.”
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.