US steel producer Nucor expects its fourth quarter results to be level year on year, with a projected uptick early in 2018, Kallanish learns from a company statement.

Nucor anticipates earnings of $0.50-0.55/share in Q4, on par with Q4 2016’s $0.50/share ($159.6 million).

“We believe overall market demand in the fourth quarter of 2017 has been solid,” Nucor says. “However, expected fourth quarter of 2017 earnings in the steel mills segment will be negatively impacted by margin compression as the import surge experienced in the summer of 2017 has been working its way through end markets over the last half of the year. This pressure from imports combined with weakness in plate steel have caused us to lower our fourth quarter of 2017 earnings estimate for the steel mills segment.”

Steadily decreasing import levels and price increases across the board should snap the market out of its rut after the New Year’s holiday, the company adds. Virtually all market segments – automotive, energy, construction, heavy equipment – are projected to grow throughout Q1.

“The automotive market remains healthy and continues to be a bright spot for Nucor as we grow our penetration of new automotive platforms,” Nucor says. “Nonresidential construction markets remain stable at a level significantly below peak 2007 levels. Energy markets continue their recovery from the depressed levels experienced in late 2014 and 2015. Heavy equipment and agriculture also continue to show signs of improvement. In general, we are optimistic on expected overall industrial production in 2018.”