Steel Imports Have Declined Slightly, Market Has Improved Modestly, Nucor Says
03/15/2016 - Nucor Corp. said its mills are benefiting from “modest” market improvements and expects to post a first-quarter profit of between 20 and 25 cents per share later this spring.
Announcing its first-quarter earnings estimate, Nucor said lower average inventory costs at the beginning of the quarter and a better balance of inventory held by its distributors should help the mills’ operating performance. Also, it said there has been a small decline in imports, although problems persist.
“Imports … continue to impact the steel industry,” Nucor said in a statement.
“Several important trade cases are in progress, and the Department of Commerce has announced preliminary duties. We are confident that once all the facts are known, final determinations by the Department of Commerce will fully address all dumping and subsidies associated with these cases.”
As for other markets, Nucor said nonresidential construction slowed during winter, but is expected to improve. The automotive market remains strong, it said, but energy, heavy equipment and agricultural markets remain weak.
Nucor said its estimate is on par with results from the first quarter of 2015, when it recorded a profit of 21 cents per diluted share. However, the estimate falls short of analysts’ expectations – the average estimate was 29 cents per share.
“Imports … continue to impact the steel industry,” Nucor said in a statement.
“Several important trade cases are in progress, and the Department of Commerce has announced preliminary duties. We are confident that once all the facts are known, final determinations by the Department of Commerce will fully address all dumping and subsidies associated with these cases.”
As for other markets, Nucor said nonresidential construction slowed during winter, but is expected to improve. The automotive market remains strong, it said, but energy, heavy equipment and agricultural markets remain weak.
Nucor said its estimate is on par with results from the first quarter of 2015, when it recorded a profit of 21 cents per diluted share. However, the estimate falls short of analysts’ expectations – the average estimate was 29 cents per share.
