Nucor Reports Results for the Second Quarter of 2024
Second Quarter of 2024 Highlights
- Net earnings attributable to
stockholders ofNucor $645.2 million , or$2.68 per diluted share. - Net sales of
$8.08 billion . - Net earnings before noncontrolling interests of
$712.1 million ; EBITDA of$1.23 billion .
In the first six months of 2024,
"While market conditions have softened compared to recent record-setting years,
"
Selected Segment Data
Earnings (loss) before income taxes and noncontrolling interests by segment for the second quarter and first six months of 2024 and 2023 were as follows (in thousands):
|
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|
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Three Months (13 Weeks) Ended |
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Six Months (26 Weeks) Ended |
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|
|
|
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|
|
|
|
|
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|
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Steel mills |
|
$ |
645,315 |
|
|
$ |
1,403,547 |
|
|
$ |
1,747,566 |
|
|
$ |
2,241,935 |
|
Steel products |
|
|
441,391 |
|
|
|
1,010,789 |
|
|
|
952,950 |
|
|
|
1,981,591 |
|
Raw materials |
|
|
39,396 |
|
|
|
138,411 |
|
|
|
48,977 |
|
|
|
196,551 |
|
Corporate/eliminations |
|
|
(227,939) |
|
|
|
(502,965) |
|
|
|
(625,989) |
|
|
|
(773,511) |
|
|
|
$ |
898,163 |
|
|
$ |
2,049,782 |
|
|
$ |
2,123,504 |
|
|
$ |
3,646,566 |
|
Financial Review
In the first six months of 2024,
The average scrap and scrap substitute cost per gross ton used in the second quarter of 2024 was
Pre-operating and start-up costs related to the Company's growth projects were approximately
In the first six months of 2024, pre-operating and start-up costs related to the Company's growth projects were approximately
Overall operating rates at the Company's steel mills decreased to 75% in the second quarter of 2024 as compared to 82% in the first quarter of 2024 and 84% in the second quarter of 2023. Operating rates in the first six months of 2024 decreased to 79% as compared to 82% in the first six months of 2023.
Financial Strength
At the end of the second quarter of 2024, we had
Commitment to
During the second quarter of 2024,
On
Second Quarter of 2024 Analysis
The largest driver of the decrease in earnings in the second quarter of 2024 as compared to the first quarter of 2024 was the decreased earnings of the steel mills segment, primarily due to lower average selling prices, and, to a lesser extent, decreased volumes. The steel products segment had 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 increased 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.
Third Quarter of 2024 Outlook
We expect earnings in the third quarter of 2024 to decrease compared to the second quarter of 2024. The largest driver for the expected decrease in earnings in the third quarter of 2024 is the expected decrease in earnings of the steel mills segment, primarily due to lower average selling prices. We expect earnings in the steel products segment to decrease in the third quarter of 2024 as compared to the second quarter of 2024 due to lower average selling prices. The earnings of the raw materials segment are expected to decrease in the third quarter of 2024 as compared to the second quarter of 2024.
Earnings Conference Call
You are invited to listen to the live broadcast of
About
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
Tonnage Data |
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(In thousands) |
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Three Months (13 Weeks) Ended |
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Six Months (26 Weeks) Ended |
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Percent |
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Percent |
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Steel mills total shipments: |
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|
|
|
|
|
|
|
|
|
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|
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|
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Sheet |
|
|
2,869 |
|
|
|
2,786 |
|
|
|
3 |
% |
|
|
5,843 |
|
|
|
5,605 |
|
|
|
4 |
% |
Bars |
|
|
2,005 |
|
|
|
2,122 |
|
|
|
-6 |
% |
|
|
3,917 |
|
|
|
4,291 |
|
|
|
-9 |
% |
Structural |
|
|
512 |
|
|
|
505 |
|
|
|
1 |
% |
|
|
1,062 |
|
|
|
1,041 |
|
|
|
2 |
% |
Plate |
|
|
448 |
|
|
|
520 |
|
|
|
-14 |
% |
|
|
860 |
|
|
|
974 |
|
|
|
-12 |
% |
Other |
|
|
33 |
|
|
|
46 |
|
|
|
-28 |
% |
|
|
75 |
|
|
|
103 |
|
|
|
-27 |
% |
|
|
|
5,867 |
|
|
|
5,979 |
|
|
|
-2 |
% |
|
|
11,757 |
|
|
|
12,014 |
|
|
|
-2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Sales tons to outside customers: |
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|
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|
|
|
|
|
|
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|
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|
Steel mills |
|
|
4,617 |
|
|
|
4,774 |
|
|
|
-3 |
% |
|
|
9,293 |
|
|
|
9,578 |
|
|
|
-3 |
% |
Joist |
|
|
103 |
|
|
|
142 |
|
|
|
-27 |
% |
|
|
202 |
|
|
|
277 |
|
|
|
-27 |
% |
Deck |
|
|
82 |
|
|
|
107 |
|
|
|
-23 |
% |
|
|
163 |
|
|
|
206 |
|
|
|
-21 |
% |
Cold finished |
|
|
96 |
|
|
|
112 |
|
|
|
-14 |
% |
|
|
195 |
|
|
|
229 |
|
|
|
-15 |
% |
Rebar fabrication products |
|
|
265 |
|
|
|
332 |
|
|
|
-20 |
% |
|
|
503 |
|
|
|
611 |
|
|
|
-18 |
% |
Piling |
|
|
158 |
|
|
|
113 |
|
|
|
40 |
% |
|
|
256 |
|
|
|
214 |
|
|
|
20 |
% |
Tubular products |
|
|
214 |
|
|
|
239 |
|
|
|
-10 |
% |
|
|
422 |
|
|
|
514 |
|
|
|
-18 |
% |
Other steel products |
|
|
156 |
|
|
|
148 |
|
|
|
5 |
% |
|
|
298 |
|
|
|
283 |
|
|
|
5 |
% |
Raw materials |
|
|
598 |
|
|
|
621 |
|
|
|
-4 |
% |
|
|
1,181 |
|
|
|
1,119 |
|
|
|
6 |
% |
|
|
|
6,289 |
|
|
|
6,588 |
|
|
|
-5 |
% |
|
|
12,513 |
|
|
|
13,031 |
|
|
|
-4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Condensed Consolidated Statements of Earnings (Unaudited) (In thousands, except per share data) |
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Three Months (13 Weeks) Ended |
|
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Six Months (26 Weeks) Ended |
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Net sales |
|
$ |
8,077,172 |
|
|
$ |
9,523,256 |
|
|
$ |
16,214,255 |
|
|
$ |
18,233,236 |
|
Costs, expenses and other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold |
|
|
6,883,117 |
|
|
|
7,021,582 |
|
|
|
13,497,020 |
|
|
|
13,733,360 |
|
Marketing, administrative and other expenses |
|
|
307,230 |
|
|
|
453,388 |
|
|
|
652,625 |
|
|
|
843,283 |
|
Equity in earnings of unconsolidated affiliates |
|
|
(9,032) |
|
|
|
(6,094) |
|
|
|
(18,801) |
|
|
|
(4,754) |
|
Interest (income) expense, net |
|
|
(2,306) |
|
|
|
4,598 |
|
|
|
(40,093) |
|
|
|
14,781 |
|
|
|
|
7,179,009 |
|
|
|
7,473,474 |
|
|
|
14,090,751 |
|
|
|
14,586,670 |
|
Earnings before income taxes and noncontrolling interests |
|
|
898,163 |
|
|
|
2,049,782 |
|
|
|
2,123,504 |
|
|
|
3,646,566 |
|
Provision for income taxes |
|
|
186,020 |
|
|
|
462,707 |
|
|
|
452,399 |
|
|
|
827,862 |
|
Net earnings before noncontrolling interests |
|
|
712,143 |
|
|
|
1,587,075 |
|
|
|
1,671,105 |
|
|
|
2,818,704 |
|
Earnings attributable to noncontrolling interests |
|
|
66,926 |
|
|
|
125,721 |
|
|
|
181,047 |
|
|
|
220,808 |
|
Net earnings attributable to |
|
$ |
645,217 |
|
|
$ |
1,461,354 |
|
|
$ |
1,490,058 |
|
|
$ |
2,597,896 |
|
Net earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.68 |
|
|
$ |
5.82 |
|
|
$ |
6.15 |
|
|
$ |
10.28 |
|
Diluted |
|
$ |
2.68 |
|
|
$ |
5.81 |
|
|
$ |
6.14 |
|
|
$ |
10.26 |
|
Average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
239,580 |
|
|
|
250,144 |
|
|
|
241,329 |
|
|
|
251,876 |
|
Diluted |
|
|
239,935 |
|
|
|
250,524 |
|
|
|
241,528 |
|
|
|
252,334 |
|
Condensed Consolidated Balance Sheets (Unaudited) (In thousands) |
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|
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|
|
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|
|
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|
||
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,638,978 |
|
|
$ |
6,383,298 |
|
Short-term investments |
|
|
795,180 |
|
|
|
747,479 |
|
Accounts receivable, net |
|
|
3,113,079 |
|
|
|
2,953,311 |
|
Inventories, net |
|
|
5,255,843 |
|
|
|
5,577,758 |
|
Other current assets |
|
|
455,042 |
|
|
|
724,012 |
|
Total current assets |
|
|
14,258,122 |
|
|
|
16,385,858 |
|
Property, plant and equipment, net |
|
|
11,999,189 |
|
|
|
11,049,767 |
|
Restricted cash and cash equivalents |
|
|
- |
|
|
|
3,494 |
|
|
|
|
4,000,144 |
|
|
|
3,968,847 |
|
Other intangible assets, net |
|
|
3,051,479 |
|
|
|
3,108,015 |
|
Other assets |
|
|
876,291 |
|
|
|
824,518 |
|
Total assets |
|
$ |
34,185,225 |
|
|
$ |
35,340,499 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Short-term debt |
|
$ |
168,510 |
|
|
$ |
119,211 |
|
Current portion of long-term debt and finance lease obligations |
|
|
1,075,203 |
|
|
|
74,102 |
|
Accounts payable |
|
|
1,744,657 |
|
|
|
2,020,289 |
|
Salaries, wages and related accruals |
|
|
857,481 |
|
|
|
1,326,390 |
|
Accrued expenses and other current liabilities |
|
|
1,019,410 |
|
|
|
1,054,517 |
|
Total current liabilities |
|
|
4,865,261 |
|
|
|
4,594,509 |
|
Long-term debt and finance lease obligations due after one year |
|
|
5,648,555 |
|
|
|
6,648,873 |
|
Deferred credits and other liabilities |
|
|
1,898,901 |
|
|
|
1,973,363 |
|
Total liabilities |
|
|
12,412,717 |
|
|
|
13,216,745 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
152,061 |
|
|
|
152,061 |
|
Additional paid-in capital |
|
|
2,189,371 |
|
|
|
2,176,243 |
|
Retained earnings |
|
|
29,991,834 |
|
|
|
28,762,045 |
|
Accumulated other comprehensive loss, net of income taxes |
|
|
(177,638) |
|
|
|
(162,072) |
|
|
|
|
(11,432,103) |
|
|
|
(9,987,643) |
|
Total |
|
|
20,723,525 |
|
|
|
20,940,634 |
|
Noncontrolling interests |
|
|
1,048,983 |
|
|
|
1,183,120 |
|
Total equity |
|
|
21,772,508 |
|
|
|
22,123,754 |
|
Total liabilities and equity |
|
$ |
34,185,225 |
|
|
$ |
35,340,499 |
|
Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
||||||||
|
||||||||
|
|
Six Months (26 Weeks) Ended |
|
|||||
|
|
|
|
|
|
|
||
Operating activities: |
|
|
|
|
|
|
|
|
Net earnings before noncontrolling interests |
|
$ |
1,671,105 |
|
|
$ |
2,818,704 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
527,626 |
|
|
|
448,836 |
|
Amortization |
|
|
119,850 |
|
|
|
117,231 |
|
Stock-based compensation |
|
|
82,725 |
|
|
|
83,587 |
|
Deferred income taxes |
|
|
(77,611) |
|
|
|
(44,609) |
|
Distributions from affiliates |
|
|
7,877 |
|
|
|
18,621 |
|
Equity in earnings of unconsolidated affiliates |
|
|
(18,801) |
|
|
|
(4,754) |
|
Changes in assets and liabilities (exclusive of acquisitions and dispositions): |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(153,856) |
|
|
|
(270,314) |
|
Inventories |
|
|
333,247 |
|
|
|
(174,437) |
|
Accounts payable |
|
|
(314,761) |
|
|
|
242,071 |
|
Federal income taxes |
|
|
132,931 |
|
|
|
396,341 |
|
Salaries, wages and related accruals |
|
|
(426,098) |
|
|
|
(573,993) |
|
Other operating activities |
|
|
60,697 |
|
|
|
70,313 |
|
Cash provided by operating activities |
|
|
1,944,931 |
|
|
|
3,127,597 |
|
Investing activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(1,471,234) |
|
|
|
(1,057,086) |
|
Investment in and advances to affiliates |
|
|
(79) |
|
|
|
(35,078) |
|
Disposition of plant and equipment |
|
|
9,530 |
|
|
|
5,289 |
|
Acquisitions (net of cash acquired) |
|
|
(108,943) |
|
|
|
- |
|
Purchases of investments |
|
|
(886,892) |
|
|
|
(701,639) |
|
Proceeds from the sale of investments |
|
|
855,965 |
|
|
|
408,854 |
|
Other investing activities |
|
|
1,324 |
|
|
|
- |
|
Cash used in investing activities |
|
|
(1,600,329) |
|
|
|
(1,379,660) |
|
Financing activities: |
|
|
|
|
|
|
|
|
Net change in short-term debt |
|
|
49,299 |
|
|
|
(15,742) |
|
Repayment of long-term debt |
|
|
(5,000) |
|
|
|
(5,000) |
|
Proceeds from exercise of stock options |
|
|
3,357 |
|
|
|
7,123 |
|
Payment of tax withholdings on certain stock-based compensation |
|
|
(47,018) |
|
|
|
(42,120) |
|
Distributions to noncontrolling interests |
|
|
(315,189) |
|
|
|
(388,771) |
|
Cash dividends |
|
|
(264,367) |
|
|
|
(259,894) |
|
Acquisition of treasury stock |
|
|
(1,501,283) |
|
|
|
(876,698) |
|
Other financing activities |
|
|
(7,065) |
|
|
|
(8,296) |
|
Cash used in financing activities |
|
|
(2,087,266) |
|
|
|
(1,589,398) |
|
Effect of exchange rate changes on cash |
|
|
(5,150) |
|
|
|
3,469 |
|
Increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents |
|
|
(1,747,814) |
|
|
|
162,008 |
|
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 six months |
|
$ |
4,638,978 |
|
|
$ |
4,523,228 |
|
Non-cash investing activity: |
|
|
|
|
|
|
|
|
Change in accrued plant and equipment purchases |
|
$ |
37,106 |
|
|
$ |
(36,580) |
|
Non-GAAP Financial Measures |
|
|||||||||||||||
Reconciliation of EBITDA (Unaudited) |
|
|||||||||||||||
(In thousands) |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months (13 Weeks) Ended |
|
|
6 Months (26 Weeks) Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings before noncontrolling interests |
|
$ |
712,143 |
|
|
$ |
1,587,075 |
|
|
$ |
1,671,105 |
|
|
$ |
2,818,704 |
|
Depreciation |
|
|
270,688 |
|
|
|
227,747 |
|
|
|
527,626 |
|
|
|
448,836 |
|
Amortization |
|
|
61,167 |
|
|
|
58,462 |
|
|
|
119,850 |
|
|
|
117,231 |
|
Interest (income) expense, net |
|
|
(2,306) |
|
|
|
4,598 |
|
|
|
(40,093) |
|
|
|
14,781 |
|
Provision for income taxes |
|
|
186,020 |
|
|
|
462,707 |
|
|
|
452,399 |
|
|
|
827,862 |
|
EBITDA |
|
$ |
1,227,712 |
|
|
$ |
2,340,589 |
|
|
$ |
2,730,887 |
|
|
$ |
4,227,414 |
|
View original content:https://www.prnewswire.com/news-releases/nucor-reports-results-for-the-second-quarter-of-2024-302203054.html
SOURCE