Nucor expects its earnings for Q3 2020, to surpass its previous quarter earnings by about 39-53pc. However, profits are anticipated to be around 39-44pc below its earnings from Q3 2019.
The steelmaker plans to release its full Q3 2020 results on October 27 and indicated that its downstream products business has remained strong over Q2 as well as Q3 2020, as a result of the flexibility sustained by the nonresidential construction markets. In fact, Nucor projects its Q3 2020 earnings in this business could exceed the previous quarter.
The company noted its bar and structural mills are progressing due to strength in the nonresidential construction sector, but the outcome for its steel mills section in Q3 2020 is anticipated to remain comparable to results obtained in the prior quarter.
Market conditions for the US steelmaker’s sheet and plate mills remained challenging this quarter and the company expects its raw materials business to decline this quarter compared with Q2 2020, because of price drops for direct reduced iron.
The steel company ascribes its positive outlook to an increase in prices and demand for raw materials and sheet steel that began near the end of Q3 2020. Moreover, utilization rates for its sheet mills have gradually increased this quarter.
Nucor is hopeful these improvements will have a positive influence on Q4 2020 results, as also discussed during September 16’s Association for Iron and Steel Technology’s webinar.