Nucor Corporation (NYSE:NUE) Q2 2019 Earnings Conference Call - Final Transcript

Jul 18, 2019 • 02:00 pm ET


Nucor Corporation (NYSE:NUE) Q2 2019 Earnings Conference Call - Final Transcript


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James D. Frias

patterns in the third quarter.

The Steel Products segment is expected to achieve further profitability improvement in the third quarter over the second quarter. Non-residential construction activity remains strong and we believe some incremental demand has likely shifted to later in the year due to difficult weather conditions during the first several months of 2019. Recent initiatives to improve the performance of rebar fabrication and metal buildings businesses are also expected to continue to favorably impact results for the Steel Products segment. The performance of our Raw Material segment is expected to decline in the third quarter compared to the second quarter, due to further margin pressure at our direct reduced iron or DRI plants. In addition, later this quarter, we will begin our planned 65 day outage at Nucor Steel Louisiana, to complete major enhancements to the physical plant.

Thank you for your interest in our company. I will now turn the call back over to John.

John J. Ferriola

Thanks, Jim. Before we take your questions, I would like to acknowledge a significant milestone that Nucor teammates at our Darlington, South Carolina Bar Mill recently celebrated. As many of you know, Darlington is the first steel mill Nucor built. Back in the mid-1960's, our Founder, Ken Iverson, decided that Nucor needed to be able to supply its own steel for its joist operations in Florence, South Carolina. Nucor selected EAF Technology for Darlington and took the first step in leading the transformation of the domestic steel industry that has occurred over the past 50 years. We celebrated this 50 year run at Darlington on June 26th.

Darlington continues to be a strong contributor to Nucor's profitability and a valued member of its community. We look forward to another 50 years of success at Darlington.

In closing, I would like to say thank you to our more than 26,000 teammates for the way you execute our strategy and thank you for the work that you do every day to build a safer and more profitable Nucor. I'd also like to say thank you to our customers. We appreciate the trust you place in Nucor and we will continue to do our very best to earn it with every order. And finally, thank you to our investors for entrusting us with your valuable capital.

We would now be happy to answer your questions.