Nucor Announces Guidance For Its Fourth Quarter Earnings
Projected fourth quarter of 2017 results do not contain any estimates related to the impact of the proposed federal tax legislation in
Imports continue to negatively impact the U.S. steel industry. Through the first ten months of 2017, total steel imports have increased an estimated 19.4% compared to the same period last year. Additionally, finished steel imports accounted for an estimated 28% share of the U.S. market in the first ten months of 2017. Along with other domestic steel producers,
We are encouraged by market conditions heading into 2018. We see recently announced price increases and the downward trend in imports late in the year from the mid-year peak as factors building positive momentum. The automotive market remains healthy and continues to be a bright spot for
We believe overall market demand in the fourth quarter of 2017 has been solid. However, expected fourth quarter of 2017 earnings in the steel mills segment will be negatively impacted by margin compression as the import surge experienced in the summer of 2017 has been working its way through end markets over the last half of the year. This pressure from imports combined with weakness in plate steel have caused us to lower our fourth quarter of 2017 earnings estimate for the steel mills segment. We expect similar results in the steel products segment in the fourth quarter of 2017 compared to the third quarter of 2017.
Nucor Steel Louisiana experienced an unplanned outage in the fourth quarter of 2017 and resumed operations in early December. However, this outage was shorter than the unplanned outages experienced in the third quarter of 2017. Because of this, we expect earnings of the raw materials segment in the fourth quarter of 2017 to be improved from the third quarter of 2017.
Nucor and its affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.
Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. The words "believe," "expect," "project," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including competition from imports and substitute materials; (2) the sensitivity of the results of our operations to prevailing steel prices and the changes in the supply and cost of raw materials, including scrap steel; (3) market demand for steel products; and (4) energy costs and availability. These and other factors are discussed in
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