Nucor Corporation, including Nucor Fasteners, announced consolidated net earnings of $1.27 billion compared to $2.36 billion in 2018.
The group - reportedly America's largest steel producer - saw Q4 2019 net earnings reach $107.8 million, compared with $646.8 million in Q4 2018. While a significant decline for the group, those final quarter results were better than expected in a year that has seen Nucor conduct a destocking of its steelmaking inventory operations.
Nucor has higher expectations for 2020, saying it is "encouraged by recent economic trends" and is confident that the positive momentum will continue through the year.
Nucor's vast product range included steel and steel products, with operating facilities in the United States, Canada and Mexico. The group says it is North America's largest recycler.
Nucor President and CEO Leon Topalian said: "Stronger than expected steel mill segment performance in December was the primary driver for higher actual fourth quarter earnings than we indicated in our mid-December quantitative guidance. We believe that the inventory destocking that occurred throughout most of 2019 concluded in the fourth quarter, when customers resumed more normal buying patterns. Additionally, general business conditions improved in the fourth quarter due to a number of factors, including a rate cut by the Federal Reserve, the new labor agreement between the United Automobile Workers and GM, and definitive progress on the trade front."
"For the full year, strong performance in many of our steel products businesses partially offset the impact of destocking on our steelmaking operations. In particular, our Vulcraft/Verco and Building Systems groups both achieved record profitability in 2019, reflecting both strong execution by our teammates and favorable nonresidential construction market conditions."
"We are encouraged by recent economic trends and confident that our positive momentum will continue in 2020. I would like to thank Nucor's dedicated teammates across the company for their continued focus on safety, serving our customers and creating value for shareholders."
US steel and trade tariffs have long been making headlines globally, not least in the last couple of years with an increase in hyperbole on the topic of trade tariffs.
Reading this in the USA? Or targeting the USA fastener and tool markets? Sign up to our Torque USA digital mag today, or find out more online.
