) announced the approval of a $115 million plan by Nucor-Yamato
Steel Co, a joint venture between Nucor and Yamato Kogyo Co. Ltd.,
to expand production of hot rolled sheet piling at Nucor's steel
mill in Blytheville, Arkansas.
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The project is expected to produce lighter and stronger sheet
pilings at a lower cost. It will add some new sheet piling
sections, which will increase the single sheet width by 22%. These
sections are expected to provide the customers with a variety of
latest American-made piling solutions. The project is expected to
be completed by early 2014.
Nucor's sheet and H-piling products are used in marine, bridge and
highway construction, heavy civil construction, storm protection
and underground commercial parking.
The innovations are a part of the company's strategy to enhance its
leadership in the steel industry and aimed at meeting the growing
needs of the customers. As a part of this strategy, Nucor completed
the acquisition of Skyline Steel LLC and its affiliates - a
steel-foundation manufacturing and distribution subsidiary of the
) - few weeks ago for a total sum of approximately $605 million.
In April 2012, Nucor released its first-quarter 2012 results. The
company reported adjusted (excluding special items) earnings of 42
cents per share in the quarter, above the Zacks Consensus Estimate
of 40 cents and its own expectation of 30 cents to 35 cents per
share. However, profit (as reported) dipped roughly 9% year over
year to $145.1 million (or 46 cents a share) from $159.8 million or
50 cents per share a year ago.
Nucor's consolidated net sales increased 5% year over year to
$5,072 million in the quarter. The jump in its top line was driven
by a 6% increase in average sales price per ton. However, the
increase in revenues was not enough to meet the Zacks Consensus
Estimate of $5,085 million as a 1% decline in total tons shipped to
outside customers weighed on the top line.
Nucor Corp. faces stiff competition from
Commercial Metals Co.
United States Steel Corp.
). Currently, the stock holds a short-term Zacks #3 Rank (Hold) and
we have a long-term Neutral recommendation on the company.