Nucor anticipates its Q4 earnings to decrease even though it projects its steel products sector profitability in Q4 to be its best for that quarter in the company’s history. But typical year-end seasonality would mean that this business’ profitability would be slightly lower than Q3 2019, the steelmaker said in its earnings outlook published on Friday.
Nucor anticipates fourth quarter earnings to be in the range of 25¢ to 30¢ per diluted share, a decrease of 90¢ per diluted share compared to Q3 2019 earnings and a decrease comparative to $2.07 per diluted share, in Q4 2018.
The steel mills sector’s, Q4 performance is projected to decrease compared to the last quarter, due to lower steel prices at the end of Q3, impacting the upcoming quarter results. Nucor expects the steel mills segment’s performance will recover leading into 2020, indicating effects of the recent finished steel price increases and typical seasonality.
Steel prices in the US rebounded in November when recent mill price increases took effect. Throughout Q4 local scrap metal prices have increased and the company’s sheet, plate, structural, and bar mills have all employed price increases, signaling strong demand for steel mill products.
The raw materials sector is projecting increased losses in Q4 2019, compared to Q3 2019, resulting from impacts of its DRI plant’s planned outage in Louisiana, completed mid-November and projected additional margin compression in its raw materials productions.