2 Steel Stocks Affecting the Sector After Earnings

Nucor Corporation (NYSE:NUE) reported net income above Wall Street’s expectations for the third quarter. Net income for the steel and iron company rose to $181.5 million (57 cents per share) vs. $23.5 million (7 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter. Revenue rose 3% to $5.25 billion from the year earlier quarter.  NUE beat the mean analyst estimate of 51 cents per share. It beat the average revenue estimate of $4.87 billion.

Competitors to Watch: Steel Dynamics, Inc. (NASDAQ:STLD), AK Steel Holding Corp. (NYSE:AKS), United States Steel Corp. (NYSE:X), Universal Stainless & Alloy Products (NASDAQ:USAP), Grupo Simec S.A.B. de C.V. (AMEX:SIM), Gerdau SA (NYSE:GGB), Worthington Industries, Inc. (NYSE:WOR), Schnitzer Steel Industries, Inc. (NASDAQ:SCHN), Friedman Industries (AMEX:FRD), and Evraz Highveld Steel & Vandium Ltd (HGVLY).

Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) reported net income above Wall Street’s expectations for the fourth quarter. Net income for Schnitzer Steel Industries, Inc. rose to $36.7 million ($1.31 per share) vs. $17.4 million (62 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter. Revenue rose 10% to $1.08 billion from the year earlier quarter. SCHN beat the mean analyst estimate of $1.22 per share. It beat the average revenue estimate of $983 million.

“For our fiscal 2011, both revenues and profits grew by approximately 50% through the successful execution of our strategy to expand our platform near our seven deep water ports, increase volumes and maximize operational efficiencies,” said Tamara Lundgren, President and Chief Executive Officer. “We generated strong operating cash flow of $140 million while making significant investments in technology and closing 10 acquisitions.” “Looking ahead to 2012, we expect the positive benefits of the investments and acquisitions we have made as well as the overall increasing demand for scrap metals to continue. Despite recent forecasts of lower global GDP growth, the growth rates of the developing economies, which are our primary end markets, still reflect levels which can sustain strong steel production. In addition, increased global electric arc furnace capacity and the focus of blast furnaces on energy efficiency and a reduction in greenhouse gas emissions all point towards a continued upward bias in demand for recycled metals.”

Competitors to Watch: Sims Metal Management Ltd (NYSE:SMS), Commercial Metals Company (NYSE:CMC), Steel Dynamics, Inc. (NASDAQ:STLD), Nucor Corporation (NYSE:NUE), Metalico, Inc. (AMEX:MEA), Worthington Industries, Inc. (NYSE:WOR), AK Steel Holding Corp. (NYSE:AKS), Titanium Metals Corp. (NYSE:TIE), Grupo Simec S.A.B. de C.V. (AMEX:SIM), and United States Steel Corp. (NYSE:X).

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