Scrap Monster
Steel News July 19, 2019 10:30:50 AM

Nucor Corp. Posted Notable Drop in Earnings and Sales

Paul Ploumis
ScrapMonster Author
The Q2 2019 consolidated net earnings stood at $386.5 million, or $1.26 per diluted share.
Nucor Corp. Posted Notable Drop in Earnings and Sales

SEATTLE (Scrap Monster): Charlotte, North Carolina-based steelmaker Nucor Corporation declared results for second quarter of 2019. The company recorded notable decline in earnings and sales, as compared with the prior quarter.

The Q2 2019 consolidated net earnings stood at $386.5 million, or $1.26 per diluted share. This compared with consolidated net earnings of $501.8 million, or $1.63 per diluted share in the first quarter of 2019. Nucor reported 3% decline in consolidated net sales from $6.10 billion in Q1 2019 to $5.90 billion in the second quarter of 2019.

The earnings from the company’s steel mills segment witnessed decline from Q1. The profitability of the steel products segment improved, whereas the operating performance of the raw materials segment remained essentially flat.

ALSO READ: Nucor to Invest in Capacity Upgrades at Darlington Steel Bar Mill

Commenting on the result, John Ferriola, Chairman, Chief Executive Officer and President, Nucor noted that mill order rates were impacted by unusually wet weather conditions and aggressive supply chain destocking. The lower volumes seen during the initial six-month period of the year has resulted in a more challenging price environment, he said. The demand remains strong in key end-use markets, Ferriola added.

Going forward, the further margin compression in DRI businesses is likely to result in subdued operating performance by the raw materials segment. Lower price levels for flat rolled and plate steel are likely to impact the performance of the steel mills segment in Q3 this year. However, the steel products segment profitability is expected to improve, mainly on the back of recently implemented efficiency initiatives by the company coupled with robust non-residential construction market conditions.