StockCall Scrutinizes Arcelor Mittal and Nucor: Steel Sector Struggles with Macro and Micro Issues
by PR Newswire
LONDON, February 27, 2013 /PRNewswire/ --
Metal sector is cyclical in nature and it is currently dealing with supply glut. Excess of supply over demand pushed prices down, impacting margins. The sector is also directly linked to the general economic conditions and is in the recovery mode. While the recent past posed challenges to the industry, conditions are looking up now. Nucor Corporation (NYSE: NUE) reported better-than-expected results for its fourth quarter. The company also declared dividend, returning more value to its investors. On the other hand, ArcelorMittal (NYSE: MT) reported steep quarterly losses, due to business issues in Europe. StockCall reviewed the solar industry and chose Arcelor Mittal and Nucor for its technical coverage. These free reports can be seen for free at
Nucor Corporation Starts New Degasser
Nucor Corp. recently announced its fourth quarter financial numbers and its earnings per share stood at 43 cents apiece, beating the guidance range of 25 cents to 30 cents per share in earnings. The company's revenue for the quarter stands at $4.45 billion, slightly lagging behind $4.55 billion. The company's dividend yield stands at 3.35 percent and it has increased its dividend rate for continuous 40 years, making it an ideal stock for dividend investors. It recently paid regular cash dividend of 36.75 cents per share, making it the 160th consecutive quarterly dividend payment. Register for today's free analysis on Nucor Corp. at http://www.StockCall.com/NUE022713.pdf
Nucor is also restructuring its financial structure. In its fourth quarter, the company retired $650 million worth of long-term debt. The company currently sports debt to capital ratio of 31.7 percent. Its restructuring efforts also go beyond financial terms as the company commissioned its new twin tank vacuum degasser. The new degasser will help the company to boost its product portfolio.
Nucor's stock is up 1.6 percent so far this year. It trades at Price/Earnings ratio of 27.75 while its forward PE stands at 11.69, slightly higher than the industry average. However, its strong quarterly results and future outlook justifies the premium. The company holds a leadership position in its segment and the stock still has potential to move up.
ArcelorMittal to Close Some European Business
ArcelorMittal reported disappointing results for its fourth quarter. The company cited Europe slowdown for the decline in revenue and profits. It also posted its first annual loss. The company announced its fourth quarter loss at $4 billion, up from $1 billion loss it had suffered in the corresponding quarter of the last year. For its full year, the loss stood at $3.7 billion, down $2.3 billion in net profit for the previous financial year. It also reported decline in its annual revenue to $84 billion. Its previous year's revenue stood at $94 billion. In-line with its results, the stock also lost 30 percent of its value in the past 52 weeks, while it is down 14 percent so far in 2013. Download the free research on Arcelor Mittal by signing up now at http://www.StockCall.com/MT022713.pdf
ArcelorMittal is one of the biggest steelmakers in the world and the company finances suffered due to the write downs related to its European. It is now contemplating permanently closing down a few of its European operations. The move will help the company in channeling its resources into more lucrative markets, boosting its bottom-line.
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