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Nucor Corporation NUE recently announced that it will construct a new tube mill near the Nucor Steel Gallatin sheet mill site in Kentucky. This location will enable Nucor to leverage its prior investments made to expand capacity of the Gallatin sheet mill and add a galvanizing line.
The investment project is worth $164 million and is expected to commence operations by mid 2023. It is also expected to create full-time employment for more than 70 people.
The new tube mill is expected to have the production capacity of roughly 250,000 tons of hollow structural section (HSS) steel tubing, mechanical steel tubing and galvanized solar torque tube. The Kentucky location places the new tube mill near expanding solar markets in the United States and the largest consuming regions for HSS steel tubing.
The mill will facilitate the company to better serve customers in the construction, infrastructure and renewable energy markets.
Shares of Nucor have gained 123.9% in the past year compared with a 173.1% surge of the industry.
The company projects first-quarter earnings of $3.00-$3.10 per share. Its first-quarter earnings are expected to exceed the previous record set in the third quarter of 2008 and mark the highest quarterly earnings in the history of Nucor. The company stated that an expansion in margins has been witnessed since the beginning of the year and is expected to continue through the second quarter. Earnings in the second quarter are also projected to set a new record.
The company’s steel mills and raw materials segments are benefiting from strong steel demand and higher prices. The company expects the performance of these units to be considerably higher on a sequential basis in the first quarter.
Nucor Corporation Price and Consensus
Nucor Corporation price-consensus-chart | Nucor Corporation Quote
Zacks Rank & Other Key Picks
Nucor currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Fortescue Metals Group Limited FSUGY, Ashland Global Holdings Inc. ASH and Impala Platinum Holdings Limited IMPUY.
Fortescue has a projected earnings growth rate of 107.8% for the current fiscal. The company’s shares have surged 155.2% in a year. It currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ashland has an expected earnings growth rate of 83.2% for the current fiscal. The company’s shares have gained 89.2% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 374% in the past year. It currently flaunts a Zacks Rank #1.
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