Nucor Now A Bigger US Steel Brand Than US Steel

Though the steel industry endured a weak 2009, the Charlotte-based Nucor Corporation can boast that it has finally surpassed US Steel as the largest American steelmaker by sales – dealing the city of Pittsburgh, once synonymous with the steel industry, a devastating blow.

US Steel, as much an American institution as Ford or General Motors, saw its earnings sink as automakers descended into financial peril. However, Nucor’s latest earnings report proves that bad news can be good news if your competitor’s news is even worse.

Nucor’s fourth-quarter profits plunged 47 percent, but unlike US Steel, Nucor still turned a profit. Even during a tough 2009, when the brand endured its first quarterly losses since 1966, it didn’t initiate layoffs – US Steel fired thousands – prompting the Motley Fool to note that quality brands “shine when the chips are down, and Nucor makes me reach for my sunglasses.”

The fate of a steel company is inextricably intertwined with the fortunes of brands that use steel. Though the construction industry remains anemic, both Ford and GM are gradually rebounding – so there is hope for steel brands, but a cautious hope.

The Wall Street Journal reports that Nucor CEO Dan DiMicco, who’s a member of the US Commerce Department’s manufacturing council, told President Obama that a rise in auto sales won’t be enough to revive the steel industry. After national security, DiMicco told the president, “priorities two through 100 should be jobs, jobs, jobs, jobs, jobs.”

Many industry analysts speculate that even robust steel brands, like Nucor and AK Steel – which also reported positive numbers – have a steep hill to climb. For many that news is disconcerting, because steel production is important to any major economy.

So, what will 2010 hold for American steel brands?