Leading American minimill steel producer Nucor Corporation said that in the fourth quarter it expects to reach breakeven results or post a slight profit after three quarters of losses.
In addition the company notes that its fourth quarter results will be significantly impacted by reduced earnings in its downstream, long products and scrap businesses, though by the fourth quarter the company had finally worked through the high-cost pig iron inventories at its sheet mills which had impacted earnings negatively earlier in the year.
Moreover, Nucor forecasted its steel mill operating rates to be down from 69 percent in the third quarter to below 60 percent in the fourth quarter.
"This performance is consistent with our qualitative guidance, given in late October, regarding the potential negative impact of lower operating volumes and seasonal issues that are separate of the general economic slowdown due to the holidays and year-end plant shutdowns by some of our customers," reads the company's statement.