How’s Nucor Is Enhancing Its Earnings Capacity

This year, Nucor expects its capital expenditure to more than double from the 2017 levels. According to Jim Frias, Nucor’s CFO, “Approximately two thirds of planned 2018 capital expenditures are for expansion, product improvement and cost-saving projects, with the remaining one third for maintenance purposes.” The company has invested ~$2 billion since 3Q16, and it expects these capital investments to add $400 million to its annual EBITDA (earnings before interest, tax, depreciation, and amortization) in a normal business cycle.