Reports related to this article:
Project(s): View 5 related projects in PECWeb
Plant(s): View 5 related plants in PECWeb
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Steel producer Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) has lowered its 2019 capital expenditure forecast from $1.8 billion to $1.5 billion due to the timing of expected projects for the remainder of the year, company executives said Tuesday. The company reported its third-quarter profits dropped to less than half of what they were a year earlier as a result of lower prices and sales volumes, but added a number of key projects are still in line for completion by the end of this year. Industrial Info is tracking $4.6 billion worth of Nucor capital projects in the U.S.
Click here for a graph showing Nucor's project activity by U.S. market region.
"Capital expenditures totaled $985 million through the first nine months of the year," said Chief Financial Officer Jim Frias during the company's third-quarter earnings conference call on Tuesday. "Our full year 2019 capital spending budget is now $1.5 billion, a decrease from our prior forecast of $1.8 billion. This change reflects the timing of expected outlays over the balance of this year."
For related information, see July 22, 2019, article - Steel Producer Nucor Sticks With $1.8 Billion Planned Capex for 2019.
Nucor reported net earnings of $275 million for the just-ended quarter, down from $676.7 million reported a year earlier, as steel prices continued to drop amid inventory destocking by industry customers, according to the company.
"After a brief summer rally, plate and sheet market conditions softened in the third quarter. Excess inventory throughout the supply chain has resulted in continued destocking by our customers. However, spending in the nonresidential construction market remained at healthy levels during the third quarter, and we delivered continued strong performance from our metal buildings, piling, joist and deck divisions; as well as improved performance in our rebar fabrication divisions," said Nucor Chief Executive Officer John Ferriola.
Ferriola will retire effective December 31. Nucor's board of directors has picked Executive Vice President Leon Topalian as the next chief executive.
Ferriola said he believes steel prices have bottomed out, along with inventory destocking, which bodes well for the company next year. However, current market conditions are expected continue to take their toll on Nucor's earnings in the fourth quarter. The company forecasted that its fourth-quarter earnings will be less than what they were in fourth-quarter 2018. The company's raw materials segment also will take a hit due to a planned outage at its Louisiana direct reduced iron (DRI) plant, which began in early September and is expected to continue until mid-November.
During the conference call, Topalian gave an update on several projects.
At Nucor's Hickman Steel Sheet Plant in Blytheville, Arkansas, workers continue to increase production and improve yield performance of a new specialty cold mill, Topalian said. The 500,000-ton-per-year mill addition was completed earlier this year, and expands the complex's capability to produce advanced high-strength, low-alloy, and motor lamination steel products. For more information, see Industrial Info's project report.
At the company's Gallatin mill in Kentucky, the facility's new 72-inch galvanizing line covered its first coils on September 27, Topalian said. The 500,000-ton-per galvanizing line "is the widest hot rolled galvanizing facility in North America," he continued. "Gallatin is extremely well positioned to serve Nucor's share of the underserved Midwest heavy-gauge galvanized hot band market." For more information, see Industrial Info's project report.
At its Marion, Ohio, steel rebar mill, commissioning of a new inline rolling mill was completed in August and is ramping up production. Early next year, a new steel bar minimill quenching and self-tempering system addition will be installed, Topalian said. For more information on the quenching and self-tempering system, see Industrial Info's project report.
Other Nucor projects on track for startup by the end of the year include Nucor's Kankakee merchant bar-quality mill addition in Bourbonnais, Illinois, and new 350,000-ton-per-year steel rebar micro mill in Sedalia, Missouri. See Industrial Info's reports on the Kankakee project and the Sedalia project.
For related information, see September 17, 2019, article - Nearly $2 Billion in Steel Mill Project Kickoffs Planned for Fourth Quarter in U.S.
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.
"Capital expenditures totaled $985 million through the first nine months of the year," said Chief Financial Officer Jim Frias during the company's third-quarter earnings conference call on Tuesday. "Our full year 2019 capital spending budget is now $1.5 billion, a decrease from our prior forecast of $1.8 billion. This change reflects the timing of expected outlays over the balance of this year."
For related information, see July 22, 2019, article - Steel Producer Nucor Sticks With $1.8 Billion Planned Capex for 2019.
Nucor reported net earnings of $275 million for the just-ended quarter, down from $676.7 million reported a year earlier, as steel prices continued to drop amid inventory destocking by industry customers, according to the company.
"After a brief summer rally, plate and sheet market conditions softened in the third quarter. Excess inventory throughout the supply chain has resulted in continued destocking by our customers. However, spending in the nonresidential construction market remained at healthy levels during the third quarter, and we delivered continued strong performance from our metal buildings, piling, joist and deck divisions; as well as improved performance in our rebar fabrication divisions," said Nucor Chief Executive Officer John Ferriola.
Ferriola will retire effective December 31. Nucor's board of directors has picked Executive Vice President Leon Topalian as the next chief executive.
Ferriola said he believes steel prices have bottomed out, along with inventory destocking, which bodes well for the company next year. However, current market conditions are expected continue to take their toll on Nucor's earnings in the fourth quarter. The company forecasted that its fourth-quarter earnings will be less than what they were in fourth-quarter 2018. The company's raw materials segment also will take a hit due to a planned outage at its Louisiana direct reduced iron (DRI) plant, which began in early September and is expected to continue until mid-November.
During the conference call, Topalian gave an update on several projects.
At Nucor's Hickman Steel Sheet Plant in Blytheville, Arkansas, workers continue to increase production and improve yield performance of a new specialty cold mill, Topalian said. The 500,000-ton-per-year mill addition was completed earlier this year, and expands the complex's capability to produce advanced high-strength, low-alloy, and motor lamination steel products. For more information, see Industrial Info's project report.
At the company's Gallatin mill in Kentucky, the facility's new 72-inch galvanizing line covered its first coils on September 27, Topalian said. The 500,000-ton-per galvanizing line "is the widest hot rolled galvanizing facility in North America," he continued. "Gallatin is extremely well positioned to serve Nucor's share of the underserved Midwest heavy-gauge galvanized hot band market." For more information, see Industrial Info's project report.
At its Marion, Ohio, steel rebar mill, commissioning of a new inline rolling mill was completed in August and is ramping up production. Early next year, a new steel bar minimill quenching and self-tempering system addition will be installed, Topalian said. For more information on the quenching and self-tempering system, see Industrial Info's project report.
Other Nucor projects on track for startup by the end of the year include Nucor's Kankakee merchant bar-quality mill addition in Bourbonnais, Illinois, and new 350,000-ton-per-year steel rebar micro mill in Sedalia, Missouri. See Industrial Info's reports on the Kankakee project and the Sedalia project.
For related information, see September 17, 2019, article - Nearly $2 Billion in Steel Mill Project Kickoffs Planned for Fourth Quarter in U.S.
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.
