In delivering its fourth-quarter earnings guidance, Steel Dynamics said it believes its 2018 earnings will be significantly higher than its annual earnings in 2017, which itself was a record year. And looking ahead, 2019 should be a good year, too, it said. 

“Based on strong steel demand fundamentals and customer optimism, the company believes steel consumption and market dynamics will remain strong in 2019 and has confidence in its ability to continue to deliver consistent strong free cash flow.”  

As for the fourth quarter, Steel Dynamics said it expects to report earnings in the range of US$1.11 to US$1.15 per share. 
“Fourth-quarter 2018 profitability from the company's steel operations is expected to be strong, but lower than record sequential third-quarter results, primarily driven by lower earnings from the company's flat-roll operations,” it said. 

“The company's flat-roll operations incurred higher maintenance costs and lower shipments, due to major maintenance outages at both its Butler and Columbus locations, as well as flat-roll metal spread compression and seasonally lower steel shipments.”  

Meanwhile, Nucor said it expects to report record full-year earnings of between US$7.25 and US$7.30 per diluted share. That result would best the previous record, set in 2008, by around 22%. 

“The company benefitted from strong economic conditions in the United States throughout 2018, which we believe was positively impacted by tax and regulatory reform. Additionally, broad-based tariffs imposed under Section 232 have been a tailwind contributing to our expected record 2018 earnings,” it said. 

Nucor chairman and chief executive John Ferriola said momentum is behind the company as it prepares for a new year.  

"As we head into 2019, we continue to see strong demand and higher year-over-year average prices across most products," said Ferriola said.