Nucor CEO Leon Topalian told CNBC on Friday that he expects the good times to continue for the rest of the year, after the steelmaker reported record profits in the last quarter.
“Nucor expects the next quarter to be strong, but frankly, with all the indicators we look at, we anticipate that 2021 will remain strong throughout the year,” he said in an interview with Jim Cramer in “Mad Money”.
The Charlotte, North Carolina-based company announced on Thursday that it had a profit of $ 942.4 million, or $ 3.10 per share, in the first three months of 2021. The company reported $ 7 billion in revenue, an increase of 25% over the previous year and an increase of 15% compared to the same quarter that preceded the Covid-19 pandemic.
Strong demand and rising prices were a boon to Nucor’s steel industry, the company said. Steelmaking accounted for nearly two-thirds of the company’s revenue.
The results enclose an investment strategy of nearly $ 4 billion, spanning nine projects over several years at Nucor, said Topalian.
Much of that investment went to the construction of a plate mill in Brandenburg, Kentucky. The plant, where Nucor plans to produce steel sheets for the final wind farm market, is scheduled to go into operation at the end of next year.
“This investment is incredibly strategic, not just positioned where it is in geography, but when we think about what is happening in the offshore wind renewable energy market,” said Topalian.
“This plant will be a unique supplier of differentiated value to our customers today and in the future and, therefore, we are focused on the long term, we will continue to invest and we will continue to grow.”
Nucor shares soared