US steelmakers report record Q3 earnings

Steelmakers Nucor Corp. and Steel Dynamics Inc. both announced record-high third quarter earnings this week. Nucor Corp., the largest steel producer in the US, reported third quarter net earnings of $517.60, or $1.68 per share, up 77 percent from earnings of $291.9 million, or 93 cents per share, in Q3 of 2005. The company's sales rose to $3.93 billion in the third quarter, up 30 percent from Q3 2005 sales. Earnings for the first nine months of 2006 totaled $1.35 billion, up 39 percent over net earnings of $969.3 million for the first nine months of 2005. Nucor CEO Dan DiMicco said the company was able to overcome "such challenges as unprecedented volatility and scrap pricing and the market distorting effects of global overcapacity.” The company said it expects fourth quarter earnings to be strong, though shipments will be lower because of seasonal slowdown and high service center and steel distributors. Steel Dynamics Inc., which operates five electric arc furnace mini mills in the Midwestern United States, this week announced third quarter net earnings of $119 million, up a whopping 161.5 percent from the year-ago period. Net sales rose 82.9 percent from Q3 of 2005 to a record $912 million. Net income for the first nine months of 2006 was $292 million, 86 percent higher than the first nine months of 2005. Keith Busse, president and CEO of Steel Dynamics said of the results, "Three of our steel-making divisions, Structural and Rail, Engineered Bar Products, and the Roanoke Bar division, set new tonnage shipping records in the third quarter. Overall, steel markets remained relatively strong with scrap costs increasing slightly during the quarter.” The company reaffirmed its fourth quarter earnings forecast of $2.10 to $2.20 a share. It expects fourth quarter shipping volumes to be somewhat lower than the third quarter because of planned maintenance outages.