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US Steel, Nucor & SDI Expect Record Earnings in Apr-Jun Quarter
Strategic Research Institute
Published on :
17 Jun, 2022, 7:42 am
Three major US’s steel makers US Steel, Nucor & SDI have increased their guidance for April-June quarter of 2022, to highest ever record levels.
United States Steel said that April-June quarer of 2022 adjusted EBITDA is expected to be approximately USD 1.6 billion, a new all-time best second quarter performance, & adjusted net earnings per diluted share is expected to be in the range of USD 3.83-3.88. US Steel’s President & Chief Executive Officer Mr David B Burritt said “We expect to continue delivering record performance in the second quarter, with each business segment meaningfully contributing to profitability. Our broad end market exposure keeps our business resilient with demand across a diverse customer base, including the resurging energy market. Our focus on strategic end markets and the continued realization of significantly increased fixed price contracts is again expected to generate another quarter of record performance.”
Nucor Corporation expects second quarter earnings to be in the range of USD 8.75- 8.85 per diluted share, which would surpass the previous quarterly earnings record of USD 7.97 per diluted share set in October-December quarter of 2021. Nucor said “End use market demand remains strong for steel and steel products, and we remain confident that 2022 will be another year of very strong earnings and cash flow for Nucor. Second quarter earnings will be driven by increased profitability in the steel products segment, which continues to benefit from robust demand in nonresidential construction markets. In addition, the steel mills segment earnings are expected to strengthen due primarily to increased profitability at our bar, sheet and plate mills. Similarly, Nucor's raw materials segment is expected to generate increased profits in the second quarter due to relatively higher selling prices for raw materials.”
Steel Dynamics has provided record second quarter 2022 earnings guidance in the range of USD 6.33-6.37 per diluted share. SDI said Second quarter 2022 profitability from the company’s steel operations is expected to be historically strong, but lower than first quarter 2022 results, due to lower earnings from the company’s flat roll steel operations, as lower average flat roll steel pricing is expected to more than offset increased flat roll steel shipments. Demand for the company’s long product steel products is also strong supporting increased average realized pricing and expected record shipments for the company’s Engineered Bar Products, Roanoke Bar, and Structural and Rail steel divisions. Despite softening hot roll coil steel pricing, broad steel demand remained solid during the second quarter, led by the automotive, construction, and industrial sectors, with energy continuing to improve. Second quarter 2022 earnings from the company’s metals recycling operations are expected to be significantly higher than sequential first quarter results, based on strong demand supporting increased shipments and higher pricing. Second quarter 2022 earnings from the company’s steel fabrication operations are expected to be meaningfully higher than record first quarter results, based on record shipments and significantly higher selling values more than offsetting marginally higher steel input costs. The non-residential construction sector remains strong as evidenced by robust order activity, resulting in a continuing historically strong order backlog, with record forward-pricing for the company’s steel fabrication platform. The company anticipates this momentum to continue into 2023 based on these dynamics.”