First Quarter of 2024 Highlights
- Net earnings attributable to Nucor stockholders of $844.8 million, or $3.46 per diluted share.
- Net sales of $8.14 billion.
- Net earnings before noncontrolling interests of $959.0 million; EBITDA of $1.50 billion.
CHARLOTTE, N.C., April 22,
2024 /PRNewswire/ -- Nucor Corporation (NYSE: NUE)
today announced consolidated net earnings attributable to Nucor
stockholders of $844.8 million, or
$3.46 per diluted share, for the
first quarter of 2024. By comparison, Nucor reported consolidated
net earnings attributable to Nucor stockholders of $785.4
million, or $3.16 per diluted share,
for the fourth quarter of 2023 and $1.14
billion, or $4.45 per diluted
share, for the first quarter of 2023.
"Nucor's performance continues to be strong even as steel market
conditions have come off their post-pandemic record highs,"
said Leon Topalian, Nucor's Chair, President, and Chief
Executive Officer. "We also took several bold steps to advance our
growth, sustainability, and commercial strategies during the first
quarter. We broadened our capabilities in the rapidly growing
data center market, announced new partnerships to supply our
customers with low carbon steel and accelerate the development of
cleaner forms of energy, and introduced the Nucor Consumer Spot
Price for our hot-rolled coil products to provide our customers
with more timely and transparent information."
Selected Segment Data
Earnings (loss) before income
taxes and noncontrolling interests by segment for the first quarter
of 2024 and 2023 were as follows (in thousands):
|
|
|
|
|
|
Three Months (13
Weeks) Ended
|
|
|
|
March 30,
2024
|
|
|
April 1,
2023
|
|
Steel
mills
|
|
$
|
1,102,251
|
|
|
$
|
838,388
|
|
Steel
products
|
|
|
511,559
|
|
|
|
970,802
|
|
Raw
materials
|
|
|
9,581
|
|
|
|
58,140
|
|
Corporate/eliminations
|
|
|
(398,050)
|
|
|
|
(270,546)
|
|
|
|
$
|
1,225,341
|
|
|
$
|
1,596,784
|
|
Financial Review
Nucor's consolidated net sales were
$8.14 billion in the first quarter of
2024, a 6% increase compared to $7.70
billion in the fourth quarter of 2023 and a 7% decrease
compared to $8.71 billion in the
first quarter of 2023. Average sales price per ton in the first
quarter of 2024 increased 1% compared to the fourth quarter of 2023
and decreased 3% compared to the first quarter of 2023. A total of
6,224,000 tons were shipped to outside customers in the first
quarter of 2024, an increase of 5% compared to the fourth quarter
of 2023 and a decrease of 3% compared to the first quarter of 2023.
Total steel mill shipments in the first quarter of 2024 increased
7% compared to the fourth quarter of 2023 and decreased 2% compared
to the first quarter of 2023. Steel mill shipments to internal
customers represented 21% of total steel mill shipments in the
first quarter of 2024, compared to 20% in the fourth quarter of
2023 and the first quarter of 2023. Downstream steel product
shipments to outside customers in the first quarter of 2024
decreased 5% from the fourth quarter of 2023 and decreased 15% from
the first quarter of 2023.
The average scrap and scrap substitute cost per gross ton used
in the first quarter of 2024 was $421, a 6% increase compared to $397 in the fourth quarter of 2023 and a 2%
increase compared to $414 in the
first quarter of 2023.
Pre-operating and start-up costs related to the Company's growth
projects were approximately $125
million, or $0.39 per diluted
share, in the first quarter of 2024, compared with approximately
$127 million, or $0.39 per diluted share, in the fourth quarter of
2023 and approximately $82 million,
or $0.24 per diluted share, in the
first quarter of 2023.
Overall operating rates at the Company's steel mills increased
to 82% in the first quarter of 2024 compared to 74% in the fourth
quarter of 2023 and 79% in the first quarter of 2023.
Financial Strength
At the end of the first quarter of 2024, we had $5.54 billion in cash and cash equivalents,
short-term investments and restricted cash and cash equivalents on
hand. The Company's $1.75 billion
revolving credit facility remains undrawn and does not expire until
November 2026. Nucor continues to have the strongest credit
rating in the North American steel sector (A-/A-/Baa1) with stable
outlooks at Standard & Poor's, Fitch Ratings and Moody's.
Commitment to Returning Capital to Stockholders
During
the first quarter of 2024, Nucor repurchased approximately 5.5
million shares of its common stock at an average price of
$180.79 per share. As of March 30, 2024, Nucor had approximately
$2.32 billion remaining authorized
and available for repurchases under its share repurchase program.
This share repurchase authorization is discretionary and has no
scheduled expiration date.
On February 20, 2024, Nucor's
Board of Directors declared a cash dividend of $0.54 per share. This cash dividend is payable on
May 10, 2024 to stockholders of
record as of March 28, 2024 and is
Nucor's 204th consecutive quarterly cash dividend.
First Quarter of 2024 Analysis
Steel mills segment
earnings in the first quarter of 2024 increased from the fourth
quarter of 2023, primarily due to higher average selling prices and
increased volumes, particularly at our sheet mills. Earnings in the
steel products segment decreased in the first quarter of 2024 as
compared to the fourth quarter of 2023 due to lower average selling
prices and decreased volumes. Earnings in the raw materials segment
increased in the first quarter of 2024 as compared to the fourth
quarter of 2023.
Second Quarter of 2024 Outlook
We expect earnings in
the second quarter of 2024 to decrease compared to the first
quarter of 2024. The largest driver for the expected decrease in
earnings in the second quarter of 2024 is the decreased earnings of
the steel mills segment, primarily due to lower average selling
prices partially offset by modestly increased volumes. The steel
products segment is expected to have moderately decreased earnings
in the second quarter of 2024 as compared to the first quarter of
2024 due to lower average selling prices, partially offset by
increased volumes. Earnings in the raw materials segment are
expected to be higher in the second quarter of 2024 as compared to
the first quarter of 2024 due to the increased profitability of our
direct reduced iron facilities and scrap processing operations.
Earnings Conference Call
You are invited to listen to
the live broadcast of Nucor's conference call during which
management will discuss Nucor's first quarter results on
April 23, 2024 at 10:00 a.m. Eastern Time. The call can be accessed
via webcast from the Investor Relations section of Nucor's website
(nucor.com/investors). A presentation with supplemental information
to accompany the call has been posted to Nucor's Investor Relations
website. A playback of the webcast will be posted to the same site
within one day of the live event.
About Nucor
Nucor and its affiliates are
manufacturers of steel and steel products, with operating
facilities in the United
States, Canada and Mexico. Products produced
include: carbon and alloy steel -- in bars, beams, sheet and plate;
hollow structural section tubing; electrical conduit; steel
racking; steel piling; steel joists and joist girders; steel deck;
fabricated concrete reinforcing steel; cold finished steel;
precision castings; steel fasteners; metal building systems;
insulated metal panels; overhead doors; steel grating; wire and
wire mesh; and utility structures. Nucor, through The
David J. Joseph Company and its affiliates, also brokers
ferrous and nonferrous metals, pig iron and hot briquetted iron /
direct reduced iron; supplies ferro-alloys; and processes ferrous
and nonferrous scrap. Nucor is North
America's largest recycler.
Non-GAAP Financial Measures
The Company uses
certain non-GAAP (Generally Accepted Accounting
Principles) financial measures in this news release, including
EBITDA. Generally, a non-GAAP financial measure is a
numerical measure of a company's performance or financial position
that either excludes or includes amounts that are not normally
excluded or included in the most directly comparable financial
measure calculated and presented in accordance with GAAP.
We define EBITDA as net earnings before noncontrolling
interests, adding back the following items: interest (income)
expense, net; provision for income taxes; depreciation; and
amortization. Please note that other companies might define
their non-GAAP financial measures differently than we
do.
Management presents the non-GAAP financial measure of
EBITDA in this news release because it considers it to be an
important supplemental measure of performance. Management believes
that this non-GAAP financial measure provides additional
insight for analysts and investors evaluating the Company's
financial and operational performance by providing a consistent
basis of comparison across periods.
Forward-Looking Statements
Certain statements
contained in this news release are "forward-looking statements"
that involve risks and uncertainties which we expect will or may
occur in the future and may impact our business, financial
condition and results of operations. The words "anticipate,"
"believe," "expect," "intend," "project," "may," "will," "should,"
"could" and similar expressions are intended to identify those
forward-looking statements. These forward-looking statements
reflect the Company's best judgment based on current information,
and, although we base these statements on circumstances that we
believe to be reasonable when made, there can be no assurance that
future events will not affect the accuracy of such forward-looking
information. As such, the forward-looking statements are not
guarantees of future performance, and actual results may vary
materially from the projected results and expectations discussed in
this news release. Factors that might cause the Company's actual
results to differ materially from those anticipated in
forward-looking statements include, but are not limited to: (1)
competitive pressure on sales and pricing, including pressure from
imports and substitute materials; (2) U.S. and foreign
trade policies affecting steel imports or exports; (3) the
sensitivity of the results of our operations to general market
conditions, and in particular, prevailing market steel prices and
changes in the supply and cost of raw materials, including pig
iron, iron ore and scrap steel; (4) the availability and cost of
electricity and natural gas, which could negatively affect our cost
of steel production or result in a delay or cancellation of
existing or future drilling within our natural gas drilling
programs; (5) critical equipment failures and business
interruptions; (6) market demand for steel products, which, in the
case of many of our products, is driven by the level of
nonresidential construction activity in the United
States; (7) impairment in the recorded value of inventory, equity
investments, fixed assets, goodwill or other long-lived assets; (8)
uncertainties and volatility surrounding the global economy,
including excess world capacity for steel production, inflation and
interest rate changes; (9) fluctuations in currency conversion
rates; (10) significant changes in laws or government regulations
affecting environmental compliance, including legislation and
regulations that result in greater regulation of greenhouse gas
emissions that could increase our energy costs, capital
expenditures and operating costs or cause one or more of our
permits to be revoked or make it more difficult to obtain permit
modifications; (11) the cyclical nature of the steel industry; (12)
capital investments and their impact on our performance; (13) our
safety performance; (14) our ability to integrate businesses we
acquire; and (15) any pandemic or public health situation. These
and other factors are discussed in Nucor's regulatory
filings with the United States Securities and Exchange
Commission, including those in "Item 1A. Risk Factors"
of Nucor's Annual Report on Form 10-K for the year
ended December 31, 2023. The forward-looking statements
contained in this news release speak only as of this date,
and Nucor does not assume any obligation to update them,
except as may be required by applicable law.
Tonnage
Data
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months (13
Weeks) Ended
|
|
|
|
March 30,
2024
|
|
|
April 1,
2023
|
|
|
Percent
Change
|
|
Steel mills total
shipments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheet
|
|
|
2,974
|
|
|
|
2,819
|
|
|
|
5
|
%
|
Bars
|
|
|
1,912
|
|
|
|
2,169
|
|
|
|
-12
|
%
|
Structural
|
|
|
550
|
|
|
|
536
|
|
|
|
3
|
%
|
Plate
|
|
|
412
|
|
|
|
454
|
|
|
|
-9
|
%
|
Other
|
|
|
42
|
|
|
|
57
|
|
|
|
-26
|
%
|
|
|
|
5,890
|
|
|
|
6,035
|
|
|
|
-2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales tons to
outside customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
mills
|
|
|
4,676
|
|
|
|
4,804
|
|
|
|
-3
|
%
|
Joist
|
|
|
99
|
|
|
|
135
|
|
|
|
-27
|
%
|
Deck
|
|
|
81
|
|
|
|
99
|
|
|
|
-18
|
%
|
Cold
finished
|
|
|
99
|
|
|
|
117
|
|
|
|
-15
|
%
|
Rebar fabrication
products
|
|
|
238
|
|
|
|
279
|
|
|
|
-15
|
%
|
Piling
|
|
|
98
|
|
|
|
101
|
|
|
|
-3
|
%
|
Tubular
products
|
|
|
208
|
|
|
|
275
|
|
|
|
-24
|
%
|
Other steel
products
|
|
|
142
|
|
|
|
135
|
|
|
|
5
|
%
|
Raw
materials
|
|
|
583
|
|
|
|
498
|
|
|
|
17
|
%
|
|
|
|
6,224
|
|
|
|
6,443
|
|
|
|
-3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Earnings (Unaudited)
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months (13
Weeks) Ended
|
|
|
|
March 30,
2024
|
|
|
April 1,
2023
|
|
Net
sales
|
|
$
|
8,137,083
|
|
|
$
|
8,709,980
|
|
Costs, expenses and
other:
|
|
|
|
|
|
|
|
|
Cost of products
sold
|
|
|
6,613,903
|
|
|
|
6,711,778
|
|
Marketing,
administrative and other expenses
|
|
|
345,395
|
|
|
|
389,895
|
|
Equity in
(earnings) losses of unconsolidated affiliates
|
|
|
(9,769)
|
|
|
|
1,340
|
|
Interest (income)
expense, net
|
|
|
(37,787)
|
|
|
|
10,183
|
|
|
|
|
6,911,742
|
|
|
|
7,113,196
|
|
Earnings before
income taxes and noncontrolling interests
|
|
|
1,225,341
|
|
|
|
1,596,784
|
|
Provision for income
taxes
|
|
|
266,379
|
|
|
|
365,155
|
|
Net earnings before
noncontrolling interests
|
|
|
958,962
|
|
|
|
1,231,629
|
|
Earnings
attributable to noncontrolling interests
|
|
|
114,121
|
|
|
|
95,087
|
|
Net earnings
attributable to Nucor stockholders
|
|
$
|
844,841
|
|
|
$
|
1,136,542
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
3.46
|
|
|
$
|
4.47
|
|
Diluted
|
|
$
|
3.46
|
|
|
$
|
4.45
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
243,098
|
|
|
|
253,608
|
|
Diluted
|
|
|
243,497
|
|
|
|
254,397
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
(In
thousands)
|
|
|
|
|
|
March 30,
2024
|
|
|
Dec. 31,
2023
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
4,557,759
|
|
|
$
|
6,383,298
|
|
Short-term
investments
|
|
|
981,179
|
|
|
|
747,479
|
|
Accounts
receivable, net
|
|
|
3,157,184
|
|
|
|
2,953,311
|
|
Inventories,
net
|
|
|
5,589,675
|
|
|
|
5,577,758
|
|
Other current
assets
|
|
|
356,882
|
|
|
|
724,012
|
|
Total current
assets
|
|
|
14,642,679
|
|
|
|
16,385,858
|
|
Property, plant and
equipment, net
|
|
|
11,456,683
|
|
|
|
11,049,767
|
|
Restricted cash and
cash equivalents
|
|
|
46
|
|
|
|
3,494
|
|
Goodwill
|
|
|
3,956,062
|
|
|
|
3,968,847
|
|
Other intangible
assets, net
|
|
|
3,049,070
|
|
|
|
3,108,015
|
|
Other
assets
|
|
|
827,985
|
|
|
|
824,518
|
|
Total
assets
|
|
$
|
33,932,525
|
|
|
$
|
35,340,499
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Short-term
debt
|
|
$
|
130,002
|
|
|
$
|
119,211
|
|
Current portion of
long-term debt and finance lease obligations
|
|
|
73,890
|
|
|
|
74,102
|
|
Accounts
payable
|
|
|
1,616,366
|
|
|
|
2,020,289
|
|
Salaries, wages and
related accruals
|
|
|
686,186
|
|
|
|
1,326,390
|
|
Accrued expenses
and other current liabilities
|
|
|
1,139,532
|
|
|
|
1,054,517
|
|
Total current
liabilities
|
|
|
3,645,976
|
|
|
|
4,594,509
|
|
Long-term debt and
finance lease obligations due after one year
|
|
|
6,647,560
|
|
|
|
6,648,873
|
|
Deferred credits and
other liabilities
|
|
|
1,913,470
|
|
|
|
1,973,363
|
|
Total
liabilities
|
|
|
12,207,006
|
|
|
|
13,216,745
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Nucor stockholders'
equity:
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
152,061
|
|
|
|
152,061
|
|
Additional paid-in
capital
|
|
|
2,210,823
|
|
|
|
2,176,243
|
|
Retained
earnings
|
|
|
29,476,087
|
|
|
|
28,762,045
|
|
Accumulated other
comprehensive loss,
net of
income taxes
|
|
|
(177,440)
|
|
|
|
(162,072)
|
|
Treasury
stock
|
|
|
(10,967,818)
|
|
|
|
(9,987,643)
|
|
Total Nucor
stockholders' equity
|
|
|
20,693,713
|
|
|
|
20,940,634
|
|
Noncontrolling
interests
|
|
|
1,031,806
|
|
|
|
1,183,120
|
|
Total
equity
|
|
|
21,725,519
|
|
|
|
22,123,754
|
|
Total liabilities
and equity
|
|
$
|
33,932,525
|
|
|
$
|
35,340,499
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
(In
thousands)
|
|
|
|
|
|
Three Months (13
Weeks) Ended
|
|
|
|
March 30,
2024
|
|
|
April 1,
2023
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
Net earnings before
noncontrolling interests
|
|
$
|
958,962
|
|
|
$
|
1,231,629
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
256,938
|
|
|
|
221,089
|
|
Amortization
|
|
|
58,683
|
|
|
|
58,769
|
|
Stock-based
compensation
|
|
|
21,341
|
|
|
|
20,401
|
|
Deferred income
taxes
|
|
|
(39,627)
|
|
|
|
(28,193)
|
|
Distributions from
affiliates
|
|
|
7,241
|
|
|
|
17,394
|
|
Equity in
(earnings)/losses of unconsolidated affiliates
|
|
|
(9,769)
|
|
|
|
1,340
|
|
Changes in assets
and liabilities (exclusive of acquisitions and
dispositions):
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(207,682)
|
|
|
|
(67,505)
|
|
Inventories
|
|
|
(13,980)
|
|
|
|
(138,694)
|
|
Accounts
payable
|
|
|
(392,403)
|
|
|
|
394,602
|
|
Federal income
taxes
|
|
|
247,783
|
|
|
|
330,781
|
|
Salaries, wages and
related accruals
|
|
|
(595,861)
|
|
|
|
(858,925)
|
|
Other operating
activities
|
|
|
168,027
|
|
|
|
24,485
|
|
Cash provided by
operating activities
|
|
|
459,653
|
|
|
|
1,207,173
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(670,340)
|
|
|
|
(531,733)
|
|
Investment in and
advances to affiliates
|
|
|
(79)
|
|
|
|
-
|
|
Disposition of
plant and equipment
|
|
|
4,439
|
|
|
|
2,276
|
|
Acquisitions (net
of cash acquired)
|
|
|
991
|
|
|
|
-
|
|
Purchases of
investments
|
|
|
(646,570)
|
|
|
|
(468,412)
|
|
Proceeds from the
sale of investments
|
|
|
421,831
|
|
|
|
228,086
|
|
Cash used in
investing activities
|
|
|
(889,728)
|
|
|
|
(769,783)
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
Net change in
short-term debt
|
|
|
10,791
|
|
|
|
(19,765)
|
|
Repayment of
long-term debt
|
|
|
(2,500)
|
|
|
|
(2,500)
|
|
Proceeds from
exercise of stock options
|
|
|
3,165
|
|
|
|
7,123
|
|
Payment of tax
withholdings on certain stock-based compensation
|
|
|
(3,280)
|
|
|
|
(7,105)
|
|
Distributions to
noncontrolling interests
|
|
|
(265,435)
|
|
|
|
(337,810)
|
|
Cash
dividends
|
|
|
(133,568)
|
|
|
|
(130,525)
|
|
Acquisition of
treasury stock
|
|
|
(1,001,300)
|
|
|
|
(425,820)
|
|
Other financing
activities
|
|
|
(3,419)
|
|
|
|
(4,272)
|
|
Cash used in
financing activities
|
|
|
(1,395,546)
|
|
|
|
(920,674)
|
|
Effect of exchange
rate changes on cash
|
|
|
(3,366)
|
|
|
|
3,243
|
|
(Decrease) Increase
in cash and cash equivalents and
restricted cash and cash equivalents
|
|
|
(1,828,987)
|
|
|
|
(480,041)
|
|
Cash and cash
equivalents and restricted cash and cash
equivalents - beginning of year
|
|
|
6,386,792
|
|
|
|
4,361,220
|
|
Cash and cash
equivalents and restricted cash and cash
equivalents - end of three months
|
|
$
|
4,557,805
|
|
|
$
|
3,881,179
|
|
Non-cash investing
activity:
|
|
|
|
|
|
|
|
|
Change in accrued
plant and equipment purchases
|
|
$
|
(10,880)
|
|
|
$
|
(36,280)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
|
Reconciliation of
EBITDA (Unaudited)
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months (13
Weeks) Ended
|
|
|
|
March 30,
2024
|
|
|
April 1,
2023
|
|
Net earnings before
noncontrolling interests
|
|
$
|
958,962
|
|
|
$
|
1,231,629
|
|
Depreciation
|
|
|
256,938
|
|
|
|
221,089
|
|
Amortization
|
|
|
58,683
|
|
|
|
58,769
|
|
Interest (income)
expense, net
|
|
|
(37,787)
|
|
|
|
10,183
|
|
Provision for
income taxes
|
|
|
266,379
|
|
|
|
365,155
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
1,503,175
|
|
|
$
|
1,886,825
|
|
View original
content:https://www.prnewswire.com/news-releases/nucor-reports-results-for-the-first-quarter-of-2024-302123663.html
SOURCE Nucor Corporation