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
Read more from Sandy WilliamsLatest in Steel Mills
Nucor upbeat on progression of flat rolled expansions
Nucor isn’t overly concerned with low utilization rates or an oversupplied market, as its investment strategy is for the long term, executives reminded investors on Tuesday.
Nucor Q3 profit falls sharply on lower steel prices, further drop seen in Q4
Nucor's profits dropped precipitously in the third quarter on lower prices in its steel mills segment as the company expects a continued earnings slide for Q4'24.
Nucor holds HR base price at $720/ton
Nucor is holding its hot-rolled coil consumer spot price at $720/short ton this week.
Nucor commissions SMS group to upgrade Alabama plate mill
Nucor Corp. has commissioned SMS group to upgrade its Tuscaloosa, Ala., plate mill.
SDI presses on with steel, aluminum investments
Steel Dynamics Inc. remains optimistic about its prospects as it ramps up flat-rolled steel operations and prepares for the production of aluminum products next year. Executives from the Fort Wayne, Ind.-based steelmaker provided an update on the company’s operations on a conference call on Thursday held to discuss SDI’s third-quarter earnings results.