Nucor Forecasts Significant Growth to Earnings Growth in Q2 2018

SEATTLE (Scrap Monster): Leading U.S. steel maker, Nucor Corporation, has announced operating results for first quarter of the current year. The company reported strong set of results, carrying over the positive momentum from 2017. Incidentally, Nucor had reported the highest annual earnings in a decade during the previous year.

 The company press release notes that consolidated net earnings for the first quarter of 2018 totaled $354.2 million, or $1.10 per diluted share. This is only slightly lower to the earnings of $383.9 million, or $1.20 per diluted share in Q4 ’17 and the consolidated net earnings of $356.9 million, or $1.11 per diluted share during the corresponding first quarterly period in 2017.

ALSO READ: Nucor Corp. Announces Major Rejig to Executive Leadership

Nucor’s consolidated net sales totaled $5.5 billion in Q1 2018, higher by 9% from Q4 2017 and by 16% when compared with the first quarter of 2017. The average sales price per ton was up by almost 9% from the previous year. The company’s total steel mill shipments during the quarter surged higher by 7% year-on-year. The shipments to outside customers soared 6% from the corresponding quarter in 2017. Also, the shipments of downstream steel products to outside customers have increased considerably by 15%. The earnings in the steel mills segment improved, whereas the profitability of the steel products segment declined. The improved performance of scrap processing operations led to better performance of the raw materials segment, the company noted.

During the quarter, the company announced plans to build a rebar micro mill in Polk County, Frostproof, Florida.

Nucor foresees significant boost to earnings growth during the second quarter of 2018, compared to Q1 ’18. It expects significant improvement in performance of the steel mills segment, mainly on the back of announced price hikes. The recently introduced trade tariffs may also contribute to the growth of the segment. The steel products segment is also likely to see improved performance during the second quarter of 2018, having decided to pass rising steel input costs on to customers.