Steel Mills

Nucor Guiding to Stronger Third Quarter

September 16, 2020

Demand and pricing improved late in the third quarter, said Nucor in earnings guidance issued Thursday. Continued resiliency of the nonresidential construction market has resulted in a strong performance for Nucor’s downstream products. Steel segment earnings are expected to be similar to second quarter. Nonresidential construction is also benefiting Nucor’s bar and structural mills, but market conditions for the sheet and plate mills remain challenged. The company’s raw materials segment is expected to return lower earnings results than in Q2.

Utilization rates at Nucor’s sheet mills improved during the third quarter. “We are cautiously optimistic about the impact these developments will have on the final quarter of the year,” said Nucor.

Stronger financial results are expected for the third-quarter earnings. The company said it expects earnings to be in the range of $0.50 to $0.55 per diluted share compared to $0.36 per diluted share in the second quarter of 2020. Earnings will remain well below Q3 2019 results of $0.90 per diluted share.