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Released October 19, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Both Steel Dynamics Incorporated (NASDAQ:STLD) (Fort Wayne, Indiana) and Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) have reason to celebrate their third-quarter 2018 earnings, thanks to the recent boom in the U.S. steel industry brought by the Trump administration's tariffs on steel imports. Both companies more than doubled their net incomes for the quarter.
Steel Dynamics reported third-quarter 2018 net income of $398 million, compared with net income $153 million in the year-prior quarter, while Nucor raised its net income to $676.7 million, compared with $254.9 million in third-quarter 2017.
Mark Millet, chief executive officer (CEO) of Steel Dynamics, said, "The actions of the U.S. federal government have recently made to develop a healthy domestic steel industry should provide sustainable long-term support to the U.S. manufacturing base and continue to erode import volume."
The CEO of Nucor, John Ferriola, made similar comments. "Our industry is benefiting from the cumulative impact of years of successful trade cases that resulted in anti-dumping and countervailing duties as well as the very recently imposed Section 232 tariffs," said Ferriola. "Together, these are removing artificially low-cost foreign imports from the market and restoring a level playing field. Through the first nine months of 2018, finished steel imports are down approximately 11%."
The chief financial officer of Steel Dynamics said capital expenditures for the company in 2019 were estimated to be approximately $350 million, including about $100 million to be spent next year on a new galvanizing line at the company's steel mill in Columbus, Mississippi. Millet spoke of the project: "In June, we announced the new $140 million galvanizing line at our Columbus flat-rolled division. This investment is yet another step of further diversification into higher-margin products. The 400,000-ton line is expected to begin operating mid-year 2020." For more details, see Industrial Info's project report.
Among the other Steel Dynamics projects planned to kick off next year is the addition of a melt shop to the company's cold rolling mill in Terre Haute, Indiana. The estimated $100 million project could kick off construction next summer, taking about a year to complete. For more information, see Industrial Info's project report.
Ferriola spoke of Nucor's capital plans. "We are currently implementing nine growth initiatives totaling approximately $2.2 billion. Completion dates for these projects range from 2019 through 2021. Four of these projects, totaling $750 million, are focused on the production of long products," said Ferriola. "The remaining five projects, totaling $1.4 billion, are in our sheet mill group."
Ferriola said two of the sheet mill projects were approaching completion in the first half of 2019. These include expansion and addition projects at mills in Kentucky and Arkansas. At its Kentucky mill, Nucor is adding a galvanizing line with in-line pickling. Ferriola said, "The Gallatin, Kentucky, project will position Nucor with the widest hot-rolled galvanizing line in North America and significantly boost our growth in automotive markets." Construction on the 500,000-ton-per-year hot band galvanizing line began earlier this year. For more information, see Industrial Info's project report.
Nucor also is planning further expansions and additions at the Kentucky mill to increase production capacity. Ferriola said of this project, "The mill's current capacity is 1.6 million tons annually, which we are expanding to 3 million tons. The cost of the project is about $650 million. When completed, Gallatin will have the capability to produce thicker slabs, casting up to five inches, and a maximum coil width of up to 73 inches. The project advances our move up the value chain by giving Nucor Steel Gallatin access to approximately 6 million tons of higher value-added applications in the energy, pipe and tube, heavy equipment, and automotive markets." The project is expected to kick off early next year and take about a year to complete. For more information, see Industrial Info's project report.
The Arkansas project involves adding a 500,000-ton-per-year cold rolling mill complex. Ferriola said, "The Hickman, Arkansas, project expands our capability to produce advanced high-strength, high-strength low alloy and motor lamination products." 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.
Steel Dynamics reported third-quarter 2018 net income of $398 million, compared with net income $153 million in the year-prior quarter, while Nucor raised its net income to $676.7 million, compared with $254.9 million in third-quarter 2017.
Mark Millet, chief executive officer (CEO) of Steel Dynamics, said, "The actions of the U.S. federal government have recently made to develop a healthy domestic steel industry should provide sustainable long-term support to the U.S. manufacturing base and continue to erode import volume."
The CEO of Nucor, John Ferriola, made similar comments. "Our industry is benefiting from the cumulative impact of years of successful trade cases that resulted in anti-dumping and countervailing duties as well as the very recently imposed Section 232 tariffs," said Ferriola. "Together, these are removing artificially low-cost foreign imports from the market and restoring a level playing field. Through the first nine months of 2018, finished steel imports are down approximately 11%."
The chief financial officer of Steel Dynamics said capital expenditures for the company in 2019 were estimated to be approximately $350 million, including about $100 million to be spent next year on a new galvanizing line at the company's steel mill in Columbus, Mississippi. Millet spoke of the project: "In June, we announced the new $140 million galvanizing line at our Columbus flat-rolled division. This investment is yet another step of further diversification into higher-margin products. The 400,000-ton line is expected to begin operating mid-year 2020." For more details, see Industrial Info's project report.
Among the other Steel Dynamics projects planned to kick off next year is the addition of a melt shop to the company's cold rolling mill in Terre Haute, Indiana. The estimated $100 million project could kick off construction next summer, taking about a year to complete. For more information, see Industrial Info's project report.
Ferriola spoke of Nucor's capital plans. "We are currently implementing nine growth initiatives totaling approximately $2.2 billion. Completion dates for these projects range from 2019 through 2021. Four of these projects, totaling $750 million, are focused on the production of long products," said Ferriola. "The remaining five projects, totaling $1.4 billion, are in our sheet mill group."
Ferriola said two of the sheet mill projects were approaching completion in the first half of 2019. These include expansion and addition projects at mills in Kentucky and Arkansas. At its Kentucky mill, Nucor is adding a galvanizing line with in-line pickling. Ferriola said, "The Gallatin, Kentucky, project will position Nucor with the widest hot-rolled galvanizing line in North America and significantly boost our growth in automotive markets." Construction on the 500,000-ton-per-year hot band galvanizing line began earlier this year. For more information, see Industrial Info's project report.
Nucor also is planning further expansions and additions at the Kentucky mill to increase production capacity. Ferriola said of this project, "The mill's current capacity is 1.6 million tons annually, which we are expanding to 3 million tons. The cost of the project is about $650 million. When completed, Gallatin will have the capability to produce thicker slabs, casting up to five inches, and a maximum coil width of up to 73 inches. The project advances our move up the value chain by giving Nucor Steel Gallatin access to approximately 6 million tons of higher value-added applications in the energy, pipe and tube, heavy equipment, and automotive markets." The project is expected to kick off early next year and take about a year to complete. For more information, see Industrial Info's project report.
The Arkansas project involves adding a 500,000-ton-per-year cold rolling mill complex. Ferriola said, "The Hickman, Arkansas, project expands our capability to produce advanced high-strength, high-strength low alloy and motor lamination products." 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.
