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Released July 28, 2020 | SUGAR LAND
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SUGAR LAND--July 28, 2020--Researched by Industrial Info Resources (Sugar Land, Texas)--Steelmaker Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) announced its remaining 2020 capital expenditures (capex) will be higher than previously reported, largely driven by two major projects. But the company expects the effects of COVID-19 to linger into 2021, when capex is forecast to again come in under $2 billion.
Industrial Info is tracking 116 projects, worth $4.25 billion, belonging to Nucor and its subsidiaries.
Click on the image at right for a graph showing Nucor's project spend, by project type.
Despite still-challenging market conditions due to COVID-19 affecting the performance of its steel segment and plate and sheet mills, Nucor announced earnings of 36 cents per diluted share for the second quarter--more than double the expected 10 to 15 cents per diluted share from its guidance in April--thanks to a resilient non-residential construction market. Third-quarter earnings are expected to be similar.
As Nucor Chief Financial Officer James D. Frias noted, "Our long products and downstream businesses continue to benefit from solid non-residential construction market conditions, and our teammates continue to capitalize on Nucor's advantage cost position, flexible production capability and financial strength."
But in its second-quarter guidance, the company dropped its expected 2020 capex from $2 billion to $1.5 billion, considering a vastly different, and more uncertain, economic landscape due to the coronavirus.
However, Nucor's 2020 capex has since increased to $1.7 million, according to the company's second-quarter earnings call on July 23. This comes after a review of its two major growth projects and a decision to reaccelerate investment in each: a steel plate mill in Brandenburg, Kentucky, with a medium probability (70-80%) of moving forward for completion in October 2022, according to Industrial Info's database, and an expansion at its thin slab steel mill in Ghent, Kentucky. The latter is expected to be delayed by a few months, with kick off tentatively in mid-2021. For more information, see the Brandenburg and Ghent project reports.
For an overview of Nucor's planned 2020 capital spending, see April 29, 2020, article - Steelmaker Nucor Evaluates Capital Projects as It Cuts Planned Spending.
Currently under construction is a $240 million micro mill in Frostpoof, Florida. The 256,000-square foot mill will produce up to 350,000 tons per year of steel rebar and is on track for completion in September. For more information, see Industrial Info's project report.
Meanwhile, a galvanizing line addition at its Hickman steel sheet plant in Arkansas is expected to be in completed in April 2021. For more information, see Industrial Info's project report.
Nucor recently completed a $180 million expansion at its Kankakee steel mill, which involved the construction of a merchant bar quality (MBQ) mill with an annual capacity of 500,000 tons. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Industrial Info is tracking 116 projects, worth $4.25 billion, belonging to Nucor and its subsidiaries.
Click on the image at right for a graph showing Nucor's project spend, by project type.Despite still-challenging market conditions due to COVID-19 affecting the performance of its steel segment and plate and sheet mills, Nucor announced earnings of 36 cents per diluted share for the second quarter--more than double the expected 10 to 15 cents per diluted share from its guidance in April--thanks to a resilient non-residential construction market. Third-quarter earnings are expected to be similar.
As Nucor Chief Financial Officer James D. Frias noted, "Our long products and downstream businesses continue to benefit from solid non-residential construction market conditions, and our teammates continue to capitalize on Nucor's advantage cost position, flexible production capability and financial strength."
But in its second-quarter guidance, the company dropped its expected 2020 capex from $2 billion to $1.5 billion, considering a vastly different, and more uncertain, economic landscape due to the coronavirus.
However, Nucor's 2020 capex has since increased to $1.7 million, according to the company's second-quarter earnings call on July 23. This comes after a review of its two major growth projects and a decision to reaccelerate investment in each: a steel plate mill in Brandenburg, Kentucky, with a medium probability (70-80%) of moving forward for completion in October 2022, according to Industrial Info's database, and an expansion at its thin slab steel mill in Ghent, Kentucky. The latter is expected to be delayed by a few months, with kick off tentatively in mid-2021. For more information, see the Brandenburg and Ghent project reports.
For an overview of Nucor's planned 2020 capital spending, see April 29, 2020, article - Steelmaker Nucor Evaluates Capital Projects as It Cuts Planned Spending.
Currently under construction is a $240 million micro mill in Frostpoof, Florida. The 256,000-square foot mill will produce up to 350,000 tons per year of steel rebar and is on track for completion in September. For more information, see Industrial Info's project report.
Meanwhile, a galvanizing line addition at its Hickman steel sheet plant in Arkansas is expected to be in completed in April 2021. For more information, see Industrial Info's project report.
Nucor recently completed a $180 million expansion at its Kankakee steel mill, which involved the construction of a merchant bar quality (MBQ) mill with an annual capacity of 500,000 tons. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
