Nucor (NYSE:NUE) is set to report its earnings on Jan 27. The company has been making the right moves in order to gain some attention which has also brought it to the limelight of the new administration as well as adding sheen to its stock price. Over the quarter, the stock has appreciated by 14% thanks to its Chief Executive Officer Dan DiMicco, who is also a member of the U.S. Department of Commerce’s manufacturing council. The CEO’s call to the new President in his “Buy-America” move has seen the possibility that the company will participate in the movement which would ensure U.S.-made steel is used in government economic- stimulus projects. “The government needs to clearly state that they’ll enforce those provisions and extend them to other areas where they are providing taxpayer money so that the majority of the money is working its way through the economy here to create jobs,” DiMicco mentioned.

U.S. steel demand fell to an estimated 104 million metric tons last year from 120.5 million in 2007, an industry publication said. Capacity use among U.S. makers of raw steel fell to 42.9 percent as of Dec. 20, down from 88.1 percent a year earlier, according to American Iron and Steel Institute data. In the background to all these Nucor is delaying the start of production at a $150 million galvanized-products plant completed in the fourth quarter because of a drop in demand. “We have been in the position to start it up at the end of 2008, and because of market conditions we’ve only done cold trials, and we have not run it,” DiMicco said. “The market will tell us when to start it up.”

Another issue which remains outstanding with the company is a decision by the end of March on whether steelmaker Nucor Corp. will build a $2 billion plant in Louisiana. Nucor is choosing between sites in St. James Parish and Brazil. According to Nucor, the plant would produce pig iron, a raw ingredient in steel making. The initial phase of the plant would employ 500 people with an average salary of $75,000. The company is considering up to three phases, which would bring even more jobs.

However, market analysts cast a doubt on the company’s moves to inhibit its profit margins, steel prices and volume due to continuing efforts to reduce inventory and weak construction markets. Recently, the stock was downgraded by UBS from to "Neutral" from "Buy" in the light of the market scenario.

Earnings Estimates
Current Estimates: $0.11
Number of Estimates: 12
High Estimate: $0.36
Low Estimate: $0.05
Last Year EPS: $1.26
Percentage Growth: -91.00 %

Disclosure: The author does not own any of the stocks mentioned above.