Yahoo Finance Nucor (NUE) Steel Longview Plate Mill to Cease Production
Nucor Corporation NUE has announced that it will reorganize its plate group, including the closure of production at Nucor Steel Longview, LLC. All Nucor Steel Longview teammates will be offered jobs at other Nucor divisions.
The mill, which Nucor purchased in 2016 for around $29 million, manufactures heavy steel plates and has a rated annual capacity of 100,000 tons. Longview assets will be reviewed and deployed across Nucor's mills as required.
Nucor expects production to be phased off in the third quarter of 2023. Production will be moved to Nucor's other plate mills, including the company's new state-of-the-art plate mill in Brandenburg, KY, which started operating earlier this year. The Brandenburg mill will manufacture discrete, coiled and heat-treated plates in widths ranging from 60 to 168 inches and gauges ranging from 3/16 to 14 inches.
Nucor's plate group is well-placed to supply the market with reliable, high-quality, sustainable steel plate products, thanks to its discrete plate mill in Hertford County, NC, cut-to-length and discrete mill in Tuscaloosa, AL, and the recent addition of the Brandenburg mill.
Shares of Nucor have gained 1.2% over the past year compared with a 2.9% decline of its industry.
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Nucor, on its first-quarter call, said that it envisions earnings to rise sequentially in the second quarter of 2023.
Nucor expects earnings in the steel mills segment to be higher sequentially in the second quarter, mainly due to increased margins at its sheet mills.
The steel products segment’s profitability is projected to fall sequentially in the second quarter as lower average selling prices are expected to offset increased volumes. The company expects raw materials segment earnings to rise in the second quarter from the first quarter due to increased profitability at DRI facilities.
Nucor Corporation Price and Consensus
Nucor Corporation price-consensus-chart | Nucor Corporation Quote
Zacks Rank & Key Picks
Nucor currently carries a Zacks Rank #3 (Hold).
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