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Released June 23, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Second-quarter guidance numbers released by a number of U.S.-based steel manufacturers show expectations of strong earnings.
United States Steel Corporation (U.S. Steel) (NYSE:X) (Pittsburgh, Pennsylvania), Steel Dynamics Incorporated (NASDAQ:STLD) (Fort Wayne, Indiana) and Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) recently announced guidance for their second-quarter 2022 earnings results, and the numbers look good.
U.S. Steel said its second-quarter 2022 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to be about $1.6 billion, a new all-time best second-quarter performance.
U.S. Steel Chief Executive Officer David Burritt said, "Our broad end-market exposure keeps our business resilient with demand across a diverse customer base, including the resurging energy market. Our focus on strategic end markets and the continued realization of significantly increased fixed price contracts is again expected to generate another quarter of record performance."
Among other things, U.S. Steel said its tubular segment's adjusted EBITDA is expected to increase on similar volumes compared with the first quarter. The resurgence in the energy markets is fueling demand for seamless pipe from the company's Fairfield Tubular Operations near Birmingham, Alabama, and the segment's proprietary connections, the company said.
U.S. Steel recently made note of its $60 million investment in a pig iron caster at its Gary Works facility in Indiana. The caster will produce 500,000 tons of pig iron per year to feed the company's electric arc furnaces, including meeting up to 50% of the ore-based metallics needs for the Big River Steel Works in Osceola, Arkansas. Iron ore from U.S. Steel's Minntac and Keetac ore operations in Minnesota will feed the caster. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a detailed project report. For related information, see June 10, 2022, article - U.S. Steel Touts Investment in Gary Works Pig Iron Caster
Steel Dynamics said it also expected to see record profits.
"Second-quarter 2022 profitability from the company's steel operations is expected to be historically strong, but lower than first quarter 2022 results, due to lower earnings from the company's flat-roll steel operations, as lower average flat-roll steel pricing is expected to more than offset increased flat roll steel shipments," Steel Dynamics said in a June 16 press release.
Among other things, earnings from the company's steel fabrication operations "are expected to be meaningfully higher than record first-quarter results, based on record shipments and significantly higher selling values more than offsetting marginally higher steel input costs. The non-residential construction sector remains strong as evidenced by robust order activity, resulting in a continuing historically strong order backlog, with record forward-pricing for the company's steel fabrication platform," Steel Dynamics said.
For 2022, Steel Dynamics plans about $750 million in capital investments, with most of that earmarked for two new flat-roll coating lines at its new Sinton facility in Texas and two at the company's Heartland facility near Terra Haute, Indiana. The facilities will each have a new galvanizing line and paint line, and will increase flat-roll capacity by 545,000 tons per year.
Subscribers can click here for the report on the Sinton Flat-Roll Coating Line Addition #1 project, and click here for the Sinton Coating Line Addition #2 project. Subscribers can click here for the Heartland Steel Cold Rolling Mill Expansion.
Likewise, Nucor also expects to see boffo earnings for the second quarter.
"End-use market demand remains strong for steel and steel products, and we remain confident that 2022 will be another year of very strong earnings and cash flow for Nucor," the company said in a June 15 press release. "Second-quarter earnings will be driven by increased profitability in the steel products segment, which continues to benefit from robust demand in nonresidential construction markets. In addition, the steel mills segment earnings are expected to strengthen due primarily to increased profitability at our bar, sheet and plate mills. Similarly, Nucor's raw materials segment is expected to generate increased profits in the second quarter due to relatively higher selling prices for raw materials."
For 2022, Nucor is planning $2.3 billion in capital expenditures, compared with $1.6 billion in 2021. The steel producer has picked Mason County, West Virginia, as the location for its new $2.7 billion sheet mill. The planned facility will have the capacity to produce 3 million tons of steel annually. It will be equipped to produce 84-inch sheet products, and will include a 76-inch tandem cold mill and two galvanizing lines. Construction is expected to take two years. Subscribers can click here for a detailed project report.
Subscribers can click here for a list of all project reports cited in this article, and click here for related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
United States Steel Corporation (U.S. Steel) (NYSE:X) (Pittsburgh, Pennsylvania), Steel Dynamics Incorporated (NASDAQ:STLD) (Fort Wayne, Indiana) and Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) recently announced guidance for their second-quarter 2022 earnings results, and the numbers look good.
U.S. Steel said its second-quarter 2022 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to be about $1.6 billion, a new all-time best second-quarter performance.
U.S. Steel Chief Executive Officer David Burritt said, "Our broad end-market exposure keeps our business resilient with demand across a diverse customer base, including the resurging energy market. Our focus on strategic end markets and the continued realization of significantly increased fixed price contracts is again expected to generate another quarter of record performance."
Among other things, U.S. Steel said its tubular segment's adjusted EBITDA is expected to increase on similar volumes compared with the first quarter. The resurgence in the energy markets is fueling demand for seamless pipe from the company's Fairfield Tubular Operations near Birmingham, Alabama, and the segment's proprietary connections, the company said.
U.S. Steel recently made note of its $60 million investment in a pig iron caster at its Gary Works facility in Indiana. The caster will produce 500,000 tons of pig iron per year to feed the company's electric arc furnaces, including meeting up to 50% of the ore-based metallics needs for the Big River Steel Works in Osceola, Arkansas. Iron ore from U.S. Steel's Minntac and Keetac ore operations in Minnesota will feed the caster. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a detailed project report. For related information, see June 10, 2022, article - U.S. Steel Touts Investment in Gary Works Pig Iron Caster
Steel Dynamics said it also expected to see record profits.
"Second-quarter 2022 profitability from the company's steel operations is expected to be historically strong, but lower than first quarter 2022 results, due to lower earnings from the company's flat-roll steel operations, as lower average flat-roll steel pricing is expected to more than offset increased flat roll steel shipments," Steel Dynamics said in a June 16 press release.
Among other things, earnings from the company's steel fabrication operations "are expected to be meaningfully higher than record first-quarter results, based on record shipments and significantly higher selling values more than offsetting marginally higher steel input costs. The non-residential construction sector remains strong as evidenced by robust order activity, resulting in a continuing historically strong order backlog, with record forward-pricing for the company's steel fabrication platform," Steel Dynamics said.
For 2022, Steel Dynamics plans about $750 million in capital investments, with most of that earmarked for two new flat-roll coating lines at its new Sinton facility in Texas and two at the company's Heartland facility near Terra Haute, Indiana. The facilities will each have a new galvanizing line and paint line, and will increase flat-roll capacity by 545,000 tons per year.
Subscribers can click here for the report on the Sinton Flat-Roll Coating Line Addition #1 project, and click here for the Sinton Coating Line Addition #2 project. Subscribers can click here for the Heartland Steel Cold Rolling Mill Expansion.
Likewise, Nucor also expects to see boffo earnings for the second quarter.
"End-use market demand remains strong for steel and steel products, and we remain confident that 2022 will be another year of very strong earnings and cash flow for Nucor," the company said in a June 15 press release. "Second-quarter earnings will be driven by increased profitability in the steel products segment, which continues to benefit from robust demand in nonresidential construction markets. In addition, the steel mills segment earnings are expected to strengthen due primarily to increased profitability at our bar, sheet and plate mills. Similarly, Nucor's raw materials segment is expected to generate increased profits in the second quarter due to relatively higher selling prices for raw materials."
For 2022, Nucor is planning $2.3 billion in capital expenditures, compared with $1.6 billion in 2021. The steel producer has picked Mason County, West Virginia, as the location for its new $2.7 billion sheet mill. The planned facility will have the capacity to produce 3 million tons of steel annually. It will be equipped to produce 84-inch sheet products, and will include a 76-inch tandem cold mill and two galvanizing lines. Construction is expected to take two years. Subscribers can click here for a detailed project report.
Subscribers can click here for a list of all project reports cited in this article, and click here for related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
