Steel Mills
Nucor Finds Flat-rolled Trade Cases Have Positive Impact for Q3 Earnings
Written by Sandy Williams
September 15, 2016
Nucor expects higher earnings in third quarter compared to second quarter due to improved performance at its raw materials division and steel mills.
In its third quarter guidance, Nucor said higher average selling prices that have benefited in part from contract sales priced on a lagging quarterly basis would improve profitability of the company’s sheet mills. Cold rolled and galvanized sheet product demand is robust, said Nucor, but demand for hot-rolled has weakened in the second half.
High levels of imports continue to challenge the market for plate and bar. Lower service center inventory and lower scrap costs will benefit the steel mills segment. Energy, heavy equipment, and agricultural markets are still showing weakness while automotive is strong.
The flat rolled trade cases have had a positive impact on steel imports in the first seven months of 2016, said Nucor. A cut-to-length steel plate case against 12 countries, filed by Nucor and other domestic producers, is expected to conclude by mid-2017.
Results are expected to be in the range of $0.85 to $.90 per diluted share compared to consolidated net earnings of $0.73 per diluted share in Q2 and $0.71 per share in Q3 2015. Although Nucor expects to show stronger results in third quarter, the forecast was below the analysts’ average estimate of $1.02.
Sandy Williams
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