StockCall Scrutinizes Arcelor Mittal and Nucor: Steel Sector Struggles with Macro and Micro Issues

Wed Feb 27, 2013 8:01am EST

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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

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   

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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William T. Knight, Email:, Contact Number: +1(646)396-9857
(9:00 am EST - 01:30 pm EST)

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