U.S. Steel Producers See Good Results in Third-Quarter 2014, Two Reduce Capex

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Researched by Industrial Info Resources (Sugar Land, Texas)--Citing improved prices, higher volumes and better production efficiency, four major U.S. steel producers have reported improved third-quarter results, in comparison with the same quarter a year earlier.

Industrial Info is tracking 134 steel manufacturing projects in the U.S., with a total investment value of $10.16 billion. Kick-offs for 72 projects, valued at $2.94 billion, are scheduled for next year.

Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) reported $245.4 million in third-quarter consolidated net earnings, a 66% increase from $147.6 million during the same quarter in 2013. Sales increased 8% to $5.7 billion.

"Results from our steel mills and steel products segments were significantly improved in third-quarter 2014," said John Ferriola, chairman chief executive officer and president of Nucor, during the company's earnings conference call. He said the company saw better profits in its sheet, plate and joist and decking businesses. Nucor Chief Financial Officer Jim Frias said during the call that the company's capital expenditures (capex) are estimated at $600 million for 2014, compared with $1 billion in both 2013 and 2012. He said he expects Nucor's capex to be $500 million in 2015.

Ferriola noted the completion of a number of projects this year, including the direct-reduced iron facility in Convent, Louisiana; the Nucor Yamoto facility expansion in Blytheville, Arkansas; and the Berkeley sheet mill expansion in Mount Pleasant, South Carolina. The projects have a combined value of about $1 billion.

View Plant Profile - 1012386 1025464 1077582
View Project Report - 2006581

United States Steel Corporation (NYSE:X) (Pittsburgh, Pennsylvania) reported a third-quarter net loss of $207 million, compared with a $1.79 billion net loss in the same quarter of 2013. Sales for the quarter totaled $4.58 billion, up from $4.13 billion in third-quarter 2013.

Dave Burritt, the chief financial officer for United States Steel, said during the company's earnings conference call that income from operations totaled $479 million, which includes the highest segment income since the third quarter of 2008.

Mario Longhi, the president and chief executive officer of United States Steel, said in a press statement that steel market conditions in the U.S. have remained stable and "our operations have performed well, particularly our Flat-rolled segment, where we returned to more normal operating levels and income from operations increased by over $300 million from the second quarter."

Capex for the third quarter totaled $96 million, compared with $107 million in third-quarter 2013. Longhi said during the conference call that he expects capex in 2015 to be higher.

Industrial Info is tracking eight United States Steel projects worth $814.83 million. This includes the planned $600 million direct reduced iron facility at the company's facility in Mountain Iron, Minnesota. United States Steel was continuing with preliminary design to define the scope of the project. If it moves forward, the project would kick off in the first quarter of 2016 and see completion in the fourth quarter of 2017.

View Project Report - 300178901

Steel Dynamics (NASDAQ:STLD) (Fort Wayne, Indiana) reported a third-quarter net income of $91 million, a nearly 60% increase from $57 million in third-quarter 2013. Sales rose 21% to $2.3 billion, from $1.9 billion in third-quarter 2013.

Industrial Info is tracking six Steel Dynamics projects worth $198.50 million, including the $165 million Hoyt Lakes Mesabi Iron Range A-G Iron Ore Mine restart and concentrator addition in Hoyt Lakes, Minnesota. Steel Dynamics is awaiting final permitting and capital approval for the project. If it goes forward, the project would kick off in the fourth quarter of 2015, with completion in fourth-quarter 2016.

View Project Report - 30001136

Finally, AK Steel (NYSE:AKS) (West Chester, Ohio) reported a $7.2 million net loss in the third quarter, compared with a $31.7 net loss in third-quarter 2013. AK Steel said the third-quarter results reflected one-time costs associated with the acquisition of Severstal Dearborn LLC's operations in Columbus, Mississippi. Adjusted earnings before interest, taxes depreciation and amortization (EBITDA) totaled $100.5 million for the quarter, compared with $53.8 million a year earlier.

Industrial Info is tracking five AK Steel projects in the U.S. worth $35.5 million, including the $17 million reline and repair of the Amanda blast furnace at the Ashland Steel Mill in Ashland, Kentucky. Kick-off and completion were scheduled for the fourth quarter of this year.

View Project Report - 23001844

Of the projects being tracked by Industrial Info, 22 that are worth $7.74 billion are in the planning phases; eight projects, worth $1.86 billion, are in engineering; and 104 projects, valued at $546 million, are in the construction phases.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 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.