Tonight, Cramer talks with Dan DiMicco, the CEO of Nucor about the state of the steel industry. With the Chinese putting the brakes on their economy and the lack of domestic orders here in the US, "the steel business seems to be stuck between a rock and a hard place, even as steel prices rise around the world," Cramer said.
NUE reported a better than expected fourth quarter yesterday, but compared to a year ago things look rather dreary. The company’s average sales price per ton is down 35% year over year, total tons shipped to outside customers down 9% year over year and steel mill capacity utilization was at a historically low 54%.
Cramer has liked Nucor for its 3.4% dividend yield and last recommended it on December 23 at $46. The stock is down 8% since then, but investors have made a considerable amount of money over the long-term, returning 241% to shareholders over the past ten years or 297% if you reinvested the dividend. And within the same period, the S&P 500 was down 24%. This is looking like a difficult time in the steel industry. DiMicco himself has said that the recovery will be long and slow, especially with the employment picture so bleak and the Obama administration not doing enough to create jobs here in America. Cramer said this is something that’s become even more important now that the Chinese are slowing down their overheated economy.
So, is there a future for the steel industry? And why are earnings anemic despite all of the price increases? And can Dan DiMicco, who met with the President multiple times on these issues, give any behind the scenes input? To answer those questions and more Cramer welcomed back the CEO of Nucor, Dan DiMicco. Watch the video for the full interview.
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