Nucor on Thursday delivered an upside surprise, earning 10 cents a share versus the 6 cents the Street had predicted. Also, Nucor’s sales were up 24% sequentially on 19% higher volume and 5% higher pricing. Plus, the company’s utilization rate jumped to 73% from 58%, and Nucor is sitting on $2 billion in cash.
Admittedly, Nucor lowered the bar when it pre-announced to the downside mid-quarter, Cramer said, “but these results are still looking real good.”
Nucor’s integrated business is another reason Cramer likes the stock. Its’ primary raw material is scrap metal, and it runs a scrap-metal business. The company uses about 82% of the scrap it obtains and sells the rest of other steel producers, giving Nucor more control over its costs. And, since it’s Green Week here at NBC Universal, viewers also should know that Nucor’s scrap strategy makes it the largest recycler in North America.
Cramer likes Nucor’s 3% yield, too, and its habit of paying special dividends. Oddly, though, given all of this positive news, the stock is up just 6.3% since CEO Dan DiMicco’s last appearance on the show, on Jan. 27. Cramer wanted to check in with chief exec to get an update on his company, the state of the steel business and the future of American manufacturing. Watch the video for the full interview.
Cramer’s charitable trust owns Nucor.
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