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Steel News June 18, 2019 01:30:39 PM

Nucor Announces Muted Q2 Guidance for Steel Mills Segment

Paul Ploumis
ScrapMonster Author
It foresees reduced performance from steel mills segment in the second quarter of 2019.
Nucor Announces Muted Q2 Guidance for Steel Mills Segment

SEATTLE (Scrap Monster): Charlotte, North Carolina-based steelmaker Nucor Corporation announced guidance for second quarter of 2019.

The company expects the net earnings to range between $1.20 and $1.25 per diluted share during the quarter. This is lower when matched with the Q1 2019 earnings of $1.63 per diluted share. Also, the estimated earnings are a big drop when compared with the earnings of $2.13 per diluted share in the corresponding second quarter of 2018. The Q1 2019 and Q2 2018 results were inclusive of benefits of $0.08 per diluted share and $0.06 per diluted share respectively, said the company press release.

According to Nucor, most end-use markets have continued to remain strong, although market dynamics are forcing many customers to remain on sidelines. It foresees reduced performance from steel mills segment in the second quarter of 2019, when compared with the prior quarter. The order rates are likely to be impacted by service center destocking.

The favorable seasonal factors coupled with improved weather conditions have benefited non-residential construction activity during the quarter. Consequently, Nucor expects improved profitability of steel products segment during Q2 2019, as compared with the prior quarter. The ongoing margin compression in DRI businesses is likely to impact the performance of raw materials segment. Incidentally, the company’s Trinidad DRI facility has already initiated downtime of 25 days. Also, its Louisiana plant is scheduled to be offline for a period of 60 days beginning late August this year.