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Nucor Announces Plans to Build Rebar Micro Mill in Missouri
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Nucor Corporation (NUE - Free Report) is set to build a rebar micro mill in Sedalia, MO, about 90 miles east of Kansas City. This project was formally announced at an event with Governor Eric Greitens held at Lowell Mohler Assembly Hall post its approval by the Missouri Development Finance Board. The project, which represents an investment of at least $250 million, is expected to start in 2019 pending the final approval, state and local incentives as well as other permits and regulatory clearances.
This rebar micro mill project is in line with the company’s long-term strategy for profitable growth and strengthens its position as a low-cost producer. The move will allow the company to take advantage of the abundant scrap supply in the immediate area provided by Nucor's scrap business. Additionally, the mill is expected to create 255 full-time jobs as well as 450 temporary jobs.
Nucor’s shares have lost 4.5% over the last six months underperforming the gain of 9.7% for the industry it belongs to.
The company logged adjusted earnings of 79 cents per share for the third quarter of 2017, which surpassed the Zacks Consensus Estimate of 78 cents. Revenues increased roughly 20.5% year over year to $5,170.1 million in the reported quarter from $4,290.2 million, but missed the Zacks Consensus Estimate of $5,276 million.
According to Nucor, the company expects generally stable and improving market conditions for automotive, energy, nonresidential construction, agriculture and heavy equipment. It is also encouraged by the cumulative benefits resulting from successful trade cases of the domestic steel industry. The company expects earnings in fourth-quarter 2017 to be to be similar to slightly lower from the third quarter, excluding tax benefits.
Nucor expects improved performance from the raw materials unit on the back of more consistent DRI production. Its downstream steel products unit is also expected to benefit from margin improvement whereas the steel mills unit is expected to witness some decline mainly due to weakness in plate steel and typical seasonality.
Nucor remains committed to expand its production capabilities and grow its business through strategic acquisitions. It is also seeing continued momentum in the automotive market.
Ingevity has expected long-term earnings growth of 12%. Its shares have gained 39.5% year to date.
Koppers Holding has expected long-term earnings growth of 18%. Its shares have rallied 22.7% year to date.
Westlake Chemical has expected long-term earnings growth of 10.6%. Its shares have moved up 68.6% year to date.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Nucor Announces Plans to Build Rebar Micro Mill in Missouri
Nucor Corporation Price and Consensus | Nucor Corporation Quote
Zacks Rank & Stocks to Consider
Nucor currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Ingevity Corporation (NGVT - Free Report) , Koppers Holding Inc. (KOP - Free Report) and Westlake Chemical Corporation (WLK - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingevity has expected long-term earnings growth of 12%. Its shares have gained 39.5% year to date.
Koppers Holding has expected long-term earnings growth of 18%. Its shares have rallied 22.7% year to date.
Westlake Chemical has expected long-term earnings growth of 10.6%. Its shares have moved up 68.6% year to date.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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