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Nucor (NUE) Subsidiary Acquires Garden Street Iron & Metal
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Nucor Corporation (NUE - Free Report) has announced an acquisition by its recycling subsidiary, River Metals Recycling (RMR). RMR has acquired all the Cincinnati-based Iron & Metal assets of Garden Street. This acquisition includes one feeder and shredder yard, effectively increasing RMR's total number of recycling facilities to 19.
This strategic move aligns with Nucor's raw materials strategy and underscores its commitment to expanding regional recycling platforms that support the company's steel mills. This key strategic acquisition will enable the company to enhance its supply of sustainable raw materials, vital for its growing regional steelmaking capacity.
The 43 employees of Garden Street have been extended offers to join RMR, ensuring a smooth transition. Following the acquisition, RMR will implement its industry-leading equipment, operational procedures, and safety standards at the facility, which will subsequently be rebranded under the RMR name. RMR takes pride in carrying forward the legacy of Garden Street, which has been a part of the Cincinnati community since 1958 and is dedicated to being a vital component of the sustainable steel supply chain.
This move follows a previous acquisition in December 2021 when another Nucor scrap recycling affiliate, Trademark Metals, purchased Garden Street's recycling facilities in Fort Myers, FL.
Nucor has gained 19.7% in the past year, compared with the industry's 32.4% rise in the same period.
Image Source: Zacks Investment Research
In the third quarter of 2023, Nucor anticipates earnings to be within the range of $4.10 to $4.20 per share, which indicates a decline on both sequential and year-over-year basis. This decline is mainly driven by reduced profitability in the steel mills segment, which is anticipated to be impacted by lower pricing and reduced volumes to a lesser extent. Additionally, the steel products segment is expected to experience a decline in earnings in the third quarter from the second quarter. Furthermore, the raw materials segment is projected to witness decreased earnings due to margin compression at the company's DRI facilities and scrap processing operations.
In the past 60 days, the Zacks Consensus Estimate for Westrock’s current fiscal year has been revised upward by 5.2%. WRK beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 30.7%. The company’s shares have rallied 11.5% in the past year.
The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 52.1% in a year.
The consensus estimate for Koppers’ current fiscal year earnings is pegged at $4.45, indicating year-over-year growth of 7.5%. KOP beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 21.7%. The company’s shares have surged 64.3% in the past year.
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Nucor (NUE) Subsidiary Acquires Garden Street Iron & Metal
Nucor Corporation (NUE - Free Report) has announced an acquisition by its recycling subsidiary, River Metals Recycling (RMR). RMR has acquired all the Cincinnati-based Iron & Metal assets of Garden Street. This acquisition includes one feeder and shredder yard, effectively increasing RMR's total number of recycling facilities to 19.
This strategic move aligns with Nucor's raw materials strategy and underscores its commitment to expanding regional recycling platforms that support the company's steel mills. This key strategic acquisition will enable the company to enhance its supply of sustainable raw materials, vital for its growing regional steelmaking capacity.
The 43 employees of Garden Street have been extended offers to join RMR, ensuring a smooth transition. Following the acquisition, RMR will implement its industry-leading equipment, operational procedures, and safety standards at the facility, which will subsequently be rebranded under the RMR name. RMR takes pride in carrying forward the legacy of Garden Street, which has been a part of the Cincinnati community since 1958 and is dedicated to being a vital component of the sustainable steel supply chain.
This move follows a previous acquisition in December 2021 when another Nucor scrap recycling affiliate, Trademark Metals, purchased Garden Street's recycling facilities in Fort Myers, FL.
Nucor has gained 19.7% in the past year, compared with the industry's 32.4% rise in the same period.
Image Source: Zacks Investment Research
In the third quarter of 2023, Nucor anticipates earnings to be within the range of $4.10 to $4.20 per share, which indicates a decline on both sequential and year-over-year basis. This decline is mainly driven by reduced profitability in the steel mills segment, which is anticipated to be impacted by lower pricing and reduced volumes to a lesser extent. Additionally, the steel products segment is expected to experience a decline in earnings in the third quarter from the second quarter. Furthermore, the raw materials segment is projected to witness decreased earnings due to margin compression at the company's DRI facilities and scrap processing operations.
Nucor Corporation Price and Consensus
Nucor Corporation price-consensus-chart | Nucor Corporation Quote
Zacks Rank & Other Key Picks
Nucor currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are WestRock Company (WRK - Free Report) and The Andersons Inc. (ANDE - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) and Koppers Holdings Inc. (KOP - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Westrock’s current fiscal year has been revised upward by 5.2%. WRK beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 30.7%. The company’s shares have rallied 11.5% in the past year.
The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 52.1% in a year.
The consensus estimate for Koppers’ current fiscal year earnings is pegged at $4.45, indicating year-over-year growth of 7.5%. KOP beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 21.7%. The company’s shares have surged 64.3% in the past year.