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Researched by Industrial Info Resources (Sugar Land, Texas)--Following the announcement of two new major projects last month, steel producer Nucor Corporation(NYSE:NUE) (Charlotte, North Carolina) reported another round of record quarterly profits on Thursday. The company estimates its capital expenditures (capex) for 2021 to be about $1.7 billion. Nucor's 2022 budget hasn't been finalized, but company executives said they don't expect capex for that year to be "dramatically different" from this year's spending levels.
The company reported consolidated third-quarter net earnings of $2.13 billion, compared with $193.4 million reported in third-quarter 2020. The results eclipse the previous record of $1.51 billion seen in the second quarter of this year. Sales for the just-ended quarter amounted to $10.31 billion, up 86% from those a year earlier.
Industrial Info is tracking $6.38 billion worth of active Nucor projects.
Click on the image at right for a graph showing Nucor's project activity by U.S. market region.
In September, Nucor said its board of directors had approved the construction of a 3-million-ton-per-year sheet mill. The company said it was evaluating locations in Ohio, Pennsylvania, and West Virginia, and that the new mill would serve customers in the Midwest and Northeast markets. A site for the new mill is likely to be decided upon before the end of this year, Chief Executive Officer Leon Topolian said during an earnings conference call with industry analysts on Thursday.
The sheet mill is expected to have a $2.7 billion price tag; it would be able to produce hot-rolled sheet products with downstream processing, including a tandem cold mill, annealing capabilities and initially two galvanizing lines. Nucor said galvanizing capabilities would include an automotive line and a construction-grade line. Construction is expected to take two years, and project spending is expected to ramp up in 2023 and 2024. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here to learn more about the project.
Nucor also announced plans in September to build a $100 million melt shop at one of its existing bar mills in the western U.S. The 600,000-ton-per-year facility is planned for a startup in 2024. Subscribers can click here for more information.
In addition, the company announced on October 6 the acquisition of a coil processing facility in Shelbyville, Indiana, to expand its fastener capabilities. "Along with recently announced upgrades at the Nebraska engineered bar mill, this new facility will allow Nucor to better service the automotive cold heading quality (CHQ) market and provide customers with the highest quality products," the company said.
Two other projects, with a combined worth of about $1 billion, are scheduled to start operations in the fourth quarter this year, Chief Financial Officer James Frias said during the conference call. These include the expansion and modernization of the Gallatin sheet mill in Kentucky and the Generation 3 flexible galvanizing line at Nucor's Hickman, Arkansas, sheet mill.
A 25-day outage is scheduled to begin at the Gallatin mill in early November for final equipment installation, Frias continued, followed by startup and commissioning. Located at an existing 1.6 million-ton-per-year steel mill, the upgrade will increase production capacity to 3 million tons per year and allow the mill to produce coils up to 73 inches wide. For more information, see Industrial Info's project report.
The Hickman galvanizing line will produce 455,000 tons per year of steel sheet metal. For more information, subscribers can click here.
Nucor projects now in the construction stage also include a 1.2 million-ton-per-year steel plate mill in Brandenburg, Kentucky. With completion planned for the fourth quarter of 2022, the $1.7 billion mill will be capable of producing cut-to-length, coiled, heat-treated, and discrete plates ranging in width from 60 inches to 160 inches. Click here for Industrial Info's project report.
Looking forward, the company said it expects to see continued strong growth in fourth-quarter 2021, potentially breaking the earnings record set in the third quarter.
"Demand remains robust across most end-use markets, a trend we expect will continue well into 2022," the company said in a press release. "Backlogs in our steel mills and steel products segments remain elevated compared to historical levels."
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.
The company reported consolidated third-quarter net earnings of $2.13 billion, compared with $193.4 million reported in third-quarter 2020. The results eclipse the previous record of $1.51 billion seen in the second quarter of this year. Sales for the just-ended quarter amounted to $10.31 billion, up 86% from those a year earlier.
Industrial Info is tracking $6.38 billion worth of active Nucor projects.
In September, Nucor said its board of directors had approved the construction of a 3-million-ton-per-year sheet mill. The company said it was evaluating locations in Ohio, Pennsylvania, and West Virginia, and that the new mill would serve customers in the Midwest and Northeast markets. A site for the new mill is likely to be decided upon before the end of this year, Chief Executive Officer Leon Topolian said during an earnings conference call with industry analysts on Thursday.
The sheet mill is expected to have a $2.7 billion price tag; it would be able to produce hot-rolled sheet products with downstream processing, including a tandem cold mill, annealing capabilities and initially two galvanizing lines. Nucor said galvanizing capabilities would include an automotive line and a construction-grade line. Construction is expected to take two years, and project spending is expected to ramp up in 2023 and 2024. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here to learn more about the project.
Nucor also announced plans in September to build a $100 million melt shop at one of its existing bar mills in the western U.S. The 600,000-ton-per-year facility is planned for a startup in 2024. Subscribers can click here for more information.
In addition, the company announced on October 6 the acquisition of a coil processing facility in Shelbyville, Indiana, to expand its fastener capabilities. "Along with recently announced upgrades at the Nebraska engineered bar mill, this new facility will allow Nucor to better service the automotive cold heading quality (CHQ) market and provide customers with the highest quality products," the company said.
Two other projects, with a combined worth of about $1 billion, are scheduled to start operations in the fourth quarter this year, Chief Financial Officer James Frias said during the conference call. These include the expansion and modernization of the Gallatin sheet mill in Kentucky and the Generation 3 flexible galvanizing line at Nucor's Hickman, Arkansas, sheet mill.
A 25-day outage is scheduled to begin at the Gallatin mill in early November for final equipment installation, Frias continued, followed by startup and commissioning. Located at an existing 1.6 million-ton-per-year steel mill, the upgrade will increase production capacity to 3 million tons per year and allow the mill to produce coils up to 73 inches wide. For more information, see Industrial Info's project report.
The Hickman galvanizing line will produce 455,000 tons per year of steel sheet metal. For more information, subscribers can click here.
Nucor projects now in the construction stage also include a 1.2 million-ton-per-year steel plate mill in Brandenburg, Kentucky. With completion planned for the fourth quarter of 2022, the $1.7 billion mill will be capable of producing cut-to-length, coiled, heat-treated, and discrete plates ranging in width from 60 inches to 160 inches. Click here for Industrial Info's project report.
Looking forward, the company said it expects to see continued strong growth in fourth-quarter 2021, potentially breaking the earnings record set in the third quarter.
"Demand remains robust across most end-use markets, a trend we expect will continue well into 2022," the company said in a press release. "Backlogs in our steel mills and steel products segments remain elevated compared to historical levels."
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.
