Nucor Benefits from Steel Tariffs, Price Increases -- Update
April 19 2018 - 11:25AM
Dow Jones News
By Imani Moise
Some U.S. steelmakers say their bottom lines are getting an
early boost from tariffs the Trump administration recently
implemented on imports of the metal from certain countries.
Nucor Corp. said Thursday margins from its steel mill operations
were particularly strong in March, as the manufacturer benefited
from price increases. The average sales price per ton of steel rose
9% for Nucor during the first quarter compared with the prior
year.
Nucor, the largest U.S.-based steelmaker, also set a bullish
outlook for the current quarter as the company prepares to compete
in what it considers a more equal playing field.
"We are encouraged by recent actions by the government to
address the massive flood of dumped and illegally subsidized
imports into the United States," the company said in a
statement.
Indiana-based Steel Dynamics Inc. said Wednesday it also sees
demand and pricing growing throughout the year as a result of the
tariff. The steel producer, which has facilities located in the
U.S. and in Mexico, said price increases outpaced rising input
costs in its most recent quarter.
Earlier this year, Nucor warned investors that sales growth
might be offset by higher scrap prices, but the company said
Thursday it now expects rising input costs to be passed on to
customers after tariffs on imported steel and aluminum from
countries excluding Canada and Mexico were implemented last
month.
Nucor has been investing heavily to capitalize from a growing
domestic metals market. Last month the company announced plans to
build a $240 million rebar mill in Florida.
Overall for the quarter, the Charlotte, N.C.-based company
reported a profit of $354.2 million, or $1.10 a share, down
slightly from $356.9 million, or $1.11 a share, a year earlier.
Revenue jumped 15% to $5.56 billion.
Analysts polled by Thomson Reuters had forecast earnings of
$1.10 a share on $5.46 billion in revenue.
Shares fell 1.7% to $64.34 in early trading. The stock has
gained 1.2% so far this year while the S&P 500 has risen
0.9%.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
April 19, 2018 11:10 ET (15:10 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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