April 26, 2017

Steel Mills Segment Drives Nucor’s Earnings

Nucor Corp., Charlotte, N.C., reported net earnings of $356.9 million in the first quarter, an increase of more than 300 percent compared with the same period in 2016. The steelmaker’s net sales in the quarter jumped 30 percent to $4.82 billion. The late-2016 acquisitions of Republic Conduit and Southland Tube contributed to the sales gains.

“As expected, earnings in the first quarter of 2017 increased significantly compared to the fourth quarter of 2016 primarily due to the performance of our steel mills segment. The increased profitability of the steel mills segment was driven by the improved performance of our sheet, bar and plate mills,” said John Ferriola, Nucor’s chairman, president and CEO.

Nucor’s average selling price per ton increased 21 percent compared with first-quarter 2016. Shipments to outside customers totaled 6.6 million tons, a 7 percent increase from the previous year. Total shipments grew by 9 percent. Overall operating rates at the company’s steel mills averaged 89 percent in the first quarter, up from 74 percent in fourth-quarter 2016 and 80 percent in the prior-year quarter.

In March 2017, Nucor announced an investment of $85 million to upgrade the rolling mill at its steel bar facility in Marion, Ohio, to maintain a cost-competitive position by reducing operating costs.

Nucor expects steel mill earnings to climb even higher in the second quarter as margins expand due to the delayed impact of contract pricing. “We also expect increased profitability for our downstream products segment in the second quarter due to seasonal factors, as improving weather conditions benefit nonresidential construction markets,” Ferriola said.


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Sunday, December 17, 2017