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Nucor (NUE) to Build New Tower Production Plant in Alabama
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Nucor Corporation (NUE - Free Report) recently announced that its Towers & Structures business will construct a new state-of-the-art transmission tower production plant — the first of two new tower production plants the company plans to build. It will be located in Decatur, AL, near Nucor’s Steel Decatur sheet mill. This project is expected to result in 200 full-time jobs.
Nucor is one of the most diverse steel product manufacturers in the United States and has a long-standing presence in Alabama. This will enable the company to efficiently supply the facility, ensuring the nation’s critical energy and digital infrastructure is built with the cleanest and most sustainable steel in the world.
The company’s new production plant will enhance its capabilities to provide engineered solutions for utility and construction projects. The plant will be highly automated, utilizing efficient straight-line production and incorporating advanced hot-dip galvanizing operations.
After the acquisition of Summit Utility Structures LLC, a producer of metal poles and other steel structures for utility infrastructure last year, Nucor formed its Towers & Structures business. This business plans to establish a country-wide footprint by building two new production towers with an investment of $270 million.
The need for these production plants comes from strong demand for utility infrastructures resulting from increasing demand for grid hardening, renewable energy projects, building a nationwide network of EV chargers, natural disasters and replacements, and population growth. The company expects the federal government’s support for electric infrastructures and clean energy projects in the recent Infrastructure Investment and Jobs Act and Inflation Reduction Act will boost demand for these transmission plants as the acts provide half a trillion dollars in incentives for a clean energy future.
Nucor’s shares have gained 24.1% over the past year compared with a 4.2% rise recorded by its industry.
Image Source: Zacks Investment Research
Nucor expects operating income for its business segment to rise sequentially in the first quarter of 2023. It also expects earnings for its steel mill segment to increase sequentially, factoring in higher margins and volumes, with the biggest rise in profitability expected at its sheet mills. Nucor also expects a sequential rise in profitability for its steel products segment. Earnings for the raw material segment are likely to rise in the first quarter, backed by increased volumes at DRI facilities and scrap recycling and brokerage operations.
However, due to intercompany eliminations in the quarter and the absence of state tax benefits that it registered in fourth-quarter 2022, it expects its consolidated net earnings to decline sequentially in the first quarter.
Olympic Steel’s shares have gained 77.7% in the past year. The Zacks Consensus Estimate for ZEUS’s current-year earnings has been revised 20.6% upward in the past 60 days. ZEUS topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.
ATI’s shares have gained 59.7% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 1.9% upward in the past 60 days. The company has an earnings growth rate of 9% for the current year.
ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.
Cal-Maine’s shares have gained 29.5% in the past year. The company has an earnings growth rate of 515.8% for the current year. The Zacks Consensus Estimate for CALM’s current-year earnings has been revised 36.4% upward in the past 60 days.
CALM topped Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 15.3% on average.
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Nucor (NUE) to Build New Tower Production Plant in Alabama
Nucor Corporation (NUE - Free Report) recently announced that its Towers & Structures business will construct a new state-of-the-art transmission tower production plant — the first of two new tower production plants the company plans to build. It will be located in Decatur, AL, near Nucor’s Steel Decatur sheet mill. This project is expected to result in 200 full-time jobs.
Nucor is one of the most diverse steel product manufacturers in the United States and has a long-standing presence in Alabama. This will enable the company to efficiently supply the facility, ensuring the nation’s critical energy and digital infrastructure is built with the cleanest and most sustainable steel in the world.
The company’s new production plant will enhance its capabilities to provide engineered solutions for utility and construction projects. The plant will be highly automated, utilizing efficient straight-line production and incorporating advanced hot-dip galvanizing operations.
After the acquisition of Summit Utility Structures LLC, a producer of metal poles and other steel structures for utility infrastructure last year, Nucor formed its Towers & Structures business. This business plans to establish a country-wide footprint by building two new production towers with an investment of $270 million.
The need for these production plants comes from strong demand for utility infrastructures resulting from increasing demand for grid hardening, renewable energy projects, building a nationwide network of EV chargers, natural disasters and replacements, and population growth. The company expects the federal government’s support for electric infrastructures and clean energy projects in the recent Infrastructure Investment and Jobs Act and Inflation Reduction Act will boost demand for these transmission plants as the acts provide half a trillion dollars in incentives for a clean energy future.
Nucor’s shares have gained 24.1% over the past year compared with a 4.2% rise recorded by its industry.
Image Source: Zacks Investment Research
Nucor expects operating income for its business segment to rise sequentially in the first quarter of 2023. It also expects earnings for its steel mill segment to increase sequentially, factoring in higher margins and volumes, with the biggest rise in profitability expected at its sheet mills. Nucor also expects a sequential rise in profitability for its steel products segment. Earnings for the raw material segment are likely to rise in the first quarter, backed by increased volumes at DRI facilities and scrap recycling and brokerage operations.
However, due to intercompany eliminations in the quarter and the absence of state tax benefits that it registered in fourth-quarter 2022, it expects its consolidated net earnings to decline sequentially in the first quarter.
Nucor Corporation Price and Consensus
Nucor Corporation price-consensus-chart | Nucor Corporation Quote
Zacks Rank & Other Key Picks
Nucor currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks to consider in the basic materials space are Olympic Steel, Inc. (ZEUS - Free Report) , ATI Inc. (ATI - Free Report) , and Cal-Maine Foods, Inc. (CALM - Free Report) . All three stocks currently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Olympic Steel’s shares have gained 77.7% in the past year. The Zacks Consensus Estimate for ZEUS’s current-year earnings has been revised 20.6% upward in the past 60 days. ZEUS topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.
ATI’s shares have gained 59.7% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 1.9% upward in the past 60 days. The company has an earnings growth rate of 9% for the current year.
ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.
Cal-Maine’s shares have gained 29.5% in the past year. The company has an earnings growth rate of 515.8% for the current year. The Zacks Consensus Estimate for CALM’s current-year earnings has been revised 36.4% upward in the past 60 days.
CALM topped Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 15.3% on average.