Steel Mills
Nucor expects lower steel prices to drive Q3 earnings decline
Written by Laura Miller
September 17, 2024
Nucor blamed lower steel prices for its expectations of weaker third-quarter results.
In guidance released Tuesday, Nucor said it anticipates reporting Q3 earnings between $0.87 and $0.97 per diluted share. That’s down notably from $2.68/diluted share in the previous quarter and from $4.57/diluted share in Q3’23.
In its Q2 earnings report in July, Nucor warned that Q3 profits would decline again due to weaker results from its steel mills. The Charlotte, N.C.-based manufacturer now expects lower earnings across all its segments – steel mills, steel products, and raw materials.
It noted that the primary driver of the sequentially lower results “is the decreased earnings of the steel mills segment, due primarily to lower average selling prices.”
Additionally, it anticipates reporting lower quarterly volumes in the steel products segment.
Nucor mentioned an expected Q3 impairment charge of ~$123 million, or $0.43 per diluted share, related to “certain non-current assets in the raw materials and steel products segments.”
The steelmaker will release Q3 results after the markets close on Monday, Oct. 21, and an earnings conference call on Tuesday, Oct. 22 at 10 a.m. ET.
Laura Miller
Read more from Laura MillerLatest in Steel Mills
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.
AISI: Raw steel production edges back up
Domestic raw steel production recovered last week, after slipping the week prior, according to the latest American Iron and Steel Institute (AISI) data. Weekly production remains at some of the lowest levels recorded this year.