Nucor Corporation ( NUE Quick Quote NUE - Free Report) has announced a significant investment of $280 million for the modernization of its steel plate mill located in Tuscaloosa, AL. The approval of this investment from the company's Board of Directors underscores Nucor's commitment to enhancing the capabilities of Nucor Steel Tuscaloosa and strategically serving key market segments integral to the Plate Mill Group's overarching strategy.
Nucor highlighted its dedication to investing in its workforce and facilities to deliver value to customers. The modernization project is expected to reinforce the plate group's standing as a leader with the most diverse and comprehensive product mix in the industry.
Acknowledging the commendable efforts of the Plate Mill Group team in executing strategic shifts and improving the profitability of plate mills, Nucor emphasized the importance of the Tuscaloosa rolling mill's modernization. This substantial investment aims to maintain competitiveness in the global steel industry while creating new market opportunities for the team. It expressed gratitude for the support received from the Tuscaloosa County Economic Development Authority for the project.
Nucor's Plate Mill Group, consisting of three production facilities in Hertford County, NC; Brandenburg, KY; and Tuscaloosa, AL, boasts an annual capacity of approximately 3 million tons of cut-to-length and discrete plate. The company's plate production serves various industries, including military applications and the manufacturing of barges, bridges, heavy equipment, rail cars, refinery tanks, ships, wind towers and other items crucial to the pipe and tube, pressure vessel, transportation and construction sectors.
Nucor’s shares have gained 3% in the past year compared with the
industry's 14% rise in the same period. Image Source: Zacks Investment Research
In the third quarter of 2023, Nucor reported earnings of $4.57 per share, down from $6.50 in the year-ago quarter. Despite the downside, the earnings per share exceeded the Zacks Consensus Estimate of $4.26. Net sales in the quarter totaled $8,775.7 million, down approximately 16% year over year and surpassing the Zacks Consensus Estimate of $8,532.3 million.
Looking ahead to the fourth quarter of 2023, Nucor anticipates a sequential decline in earnings. The downtick was caused by lower pricing across all three operating segments, with sheet mills in the steel mills segment expected to experience the most significant decline in realized pricing. Additionally, lower average selling prices and volume levels in the steel products segment, along with decreased earnings in the raw materials segment due to lower raw material prices and planned shutdowns at the DRI facilities, contribute to the overall outlook for reduced earnings in the fourth quarter.
Zacks Rank & Key Picks
Nucor currently carries a Zacks Rank #3 (Hold).
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