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$NUE said it will build a full-range merchant bar quality (MBQ) mill at its existing bar steel mill located in Bourbonnais, Illinois. The MBQ mill will have an annual capacity of 500,000 tons and is expected to cost $180MM. The project will take about two years to complete.
$NUE expects its 4Q17 earnings to be slightly lower than 3Q17. The company's downstream steel products segment is expected to benefit from margin improvement. The steel mills segment is expected to decline, mainly due to weakness in the plate steel and typical seasonality.
$NUE, manufacturer of steel products, announced that its BoD approved a steel bar micro mill project and is considering five states, including Nebraska, Kansas, Missouri, South Carolina and Florida, for the project. The Board also gave the nod for the expansion of its existing merchant bar operations in either Illinois or Ohio.
Steel company $NUE has elected Lloyd J Austin III, a retired US Army General, to its BoD, effective September 18, 2017. General Austin served as the commander of US Central Command, responsible for military strategy in the 20-country Central Region, from 2013 until his retirement in March 2016.
$NUE said looking into 3Q17, pricing seems to be holding and improving in flat rolled products. The company is seeing stability in other businesses in terms of demand. A large number of bookings are also in place and factoring all these together, $NUE expects to see performance that is consistent with 1H17.
In 2Q17, $NUE invested approx. $176MM to build a hot band galvanizing and pickling line at its sheet mill in Ghent, Kentucky. The new galvanizing line will expand Nucor Steel Gallatin's product capabilities and should have an annual capacity of 500,000 tons. It is expected to take two years to construct the galvanizing line and begin operations.
$NUE stated that imports continue to negatively impact the US steel industry. Through 1H17, finished steel imports have increased about 15% compared to 1H16 and account for an estimated 27% share of the US market. The industry continues to pursue trade cases to combat unfairly traded imports.
$NUE expects 3Q17 earnings to be in a range similar to the quarterly results of 1H17. Non-residential construction indicators, such as the Dodge Momentum Index, suggest that construction activity will remain healthy through the end of 2017. $NUE is gaining ground in the automotive market and expects this trend to continue through 2017.
$NUE reported consolidated net earnings of $323MM or $1 per share for 2Q17 compared to $243.6MM or $0.76 per share for 2Q16. Consolidated net sales increased 22% to $5.17Bil from 2Q16. Average sales price per ton in 2Q17 increased 17% from 2Q16.