Nucor Corp. Anticipates Notable Surge in Steel Mill Segment Earnings

SEATTLE (Scrap Monster): Charlotte, North Carolina-based Nucor Corporation announced guidance for its first quarter of 2020 earnings.

The company expects the quarterly earnings to range between $0.95 and $1.00 per diluted share. This compares with Q4 of 2019 earnings of $0.35 per diluted share and first quarter of 2019 earnings of $1.63 per diluted share.

Nucor expects improvement in steel mills segment earnings in the initial quarter of 2020, as compared with the prior quarter, mainly on account of increase average selling prices and higher volumes. The normal seasonality factor will lead to significant decline in profitability of the steel products segment during the quarter. The hike in raw material prices coupled with improved performance at its DRI facilities is likely to contribute to the robust quarterly performance by Nucor’s raw materials segment.

The strong order rates, backlogs and utilization rates at steel mills reflect strong underlying demand in non-residential construction and other end-use markets.

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According to company press release, the impacts of COVID-19 on the company’s supply chain and operations have been minimal so far. However, there are chances of more severe impacts. The company is carefully monitoring the evolving situation and that the safety and wellbeing of its team is of utmost priority to the company, it said.