Nucor Corp. Announces Delay in Investment at Kentucky Mills

SEATTLE (Scrap Monster): Charlotte, North Carolina-based Nucor Corporation announced its decision to delay previously announced investments at two Kentucky mills, due to prevailing uncertain steel market conditions.

Accordingly, the investment in upgrades to the Gallatin hot-rolled coil (HRC) plant will be delayed. The ongoing upgrades were originally expected to complete by mid-2021. The investments at the Brandenburg plate mill, originally planned to be completed in 2022, will also be delayed. The delays in investment will save approximately $500 million in capital expenditure during the current year.

Meantime, the company reported consolidated net earnings of $20.3 million, or $0.07 per diluted share, for the first quarter of 2020. This compares with the consolidated net earnings of $107.8 million, or $0.35 per diluted share in Q4 2019 and consolidated net earnings of $501.8 million, or $1.63 per diluted share in the corresponding quarter a year before. The consolidated net sales surged higher by 10% to $5.62 billion in Q1 2020, as compared with $5.13 billion in Q4 last year.

The pandemic’s impact on market conditions will result in the company posting loss in the upcoming quarter. Although difficult to predict the duration of the downturn, it expects market conditions to bottom in Q2 this year and the company to return to profitability in the second half of 2020.

YOU MAY ALSO BE INTERESTED IN:

Nucor Announces Changes to Top Executive Leadership

Nucor Corp. Anticipates NotableSurge in Steel Mill Segment Earnings