Nucor Reports Results for the Third Quarter of 2024
Third Quarter of 2024 Highlights
- Consolidated net earnings attributable to
Nucor $249.9 million , or$1.05 per diluted share. - Adjusted net earnings attributable to
Nucor stockholders of$353.0 million , or$1.49 per diluted share. - Net sales of
$7.44 billion . - Net earnings before noncontrolling interests of
$302.8 million ; EBITDA of$869.0 million .
Reflected in the third quarter of 2024 losses and impairments of assets are non-cash charges of
In the first nine months of 2024,
"Thank you to our
Selected Segment Data
Earnings (loss) before income taxes and noncontrolling interests by segment for the third quarter and first nine months of 2024 and 2023 were as follows (in thousands):
|
|
|
Three Months (13 Weeks) Ended |
|
|
Nine Months (39 Weeks) Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Steel mills |
|
$ |
309,123 |
|
|
$ |
882,614 |
|
|
$ |
2,056,689 |
|
|
$ |
3,124,549 |
|
|
Steel products |
|
|
313,972 |
|
|
|
806,731 |
|
|
|
1,266,922 |
|
|
|
2,788,322 |
|
|
Raw materials |
|
|
(66,332) |
|
|
|
71,367 |
|
|
|
(17,355) |
|
|
|
267,918 |
|
|
Corporate/eliminations |
|
|
(168,490) |
|
|
|
(212,630) |
|
|
|
(794,479) |
|
|
|
(986,141) |
|
|
|
|
$ |
388,273 |
|
|
$ |
1,548,082 |
|
|
$ |
2,511,777 |
|
|
$ |
5,194,648 |
|
Financial Review
In the first nine months of 2024,
The average scrap and scrap substitute cost per gross ton used in the third quarter of 2024 was
Pre-operating and start-up costs related to the Company's growth projects were approximately
In the first nine 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 were 75% in both the third quarter and second quarter of 2024 and 77% in the third quarter of 2023. Operating rates in the first nine months of 2024 decreased to 77% as compared to 80% in the first nine months of 2023.
Financial Strength
At the end of the third quarter of 2024, we had
Commitment to
On
Third Quarter of 2024 Analysis
The largest driver for the decrease in earnings in the third quarter of 2024 as compared to the second quarter of 2024 is the decreased earnings of the steel mills segment, due primarily to lower average selling prices. The steel products segment's earnings decreased in the third quarter of 2024 as compared to the second quarter of 2024 due to lower average selling prices and lower volumes. Earnings in the raw materials segment are lower in the third quarter of 2024 as compared to the second quarter of 2024 due primarily to the non-cash impairment charge taken in the third quarter of 2024.
Fourth Quarter of 2024 Outlook
We expect consolidated net earnings attributable to
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, adjusted net earnings attributable to
We define EBITDA as net earnings before noncontrolling interests, adding back the following items: interest (income) expense, net; provision for income taxes; losses and impairments of assets; depreciation; and amortization. We define adjusted net earnings attributable to
Management presents the non-GAAP financial measures of EBITDA, adjusted net earnings attributable to
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) the impact of 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.
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Tonnage Data |
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(In thousands) |
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|||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months (13 Weeks) Ended |
|
|
Nine Months (39 Weeks) Ended |
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||||||||||||||||||
|
|
|
September |
|
|
September |
|
|
Percent |
|
|
September |
|
|
September |
|
|
Percent |
|
||||||
|
Steel mills total shipments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheet |
|
|
2,837 |
|
|
|
2,723 |
|
|
|
4 |
% |
|
|
8,680 |
|
|
|
8,328 |
|
|
|
4 |
% |
|
Bars |
|
|
1,926 |
|
|
|
2,001 |
|
|
|
-4 |
% |
|
|
5,843 |
|
|
|
6,292 |
|
|
|
-7 |
% |
|
Structural |
|
|
493 |
|
|
|
530 |
|
|
|
-7 |
% |
|
|
1,555 |
|
|
|
1,571 |
|
|
|
-1 |
% |
|
Plate |
|
|
435 |
|
|
|
460 |
|
|
|
-5 |
% |
|
|
1,295 |
|
|
|
1,434 |
|
|
|
-10 |
% |
|
Other |
|
|
28 |
|
|
|
32 |
|
|
|
-13 |
% |
|
|
103 |
|
|
|
135 |
|
|
|
-24 |
% |
|
|
|
|
5,719 |
|
|
|
5,746 |
|
|
- |
|
|
|
17,476 |
|
|
|
17,760 |
|
|
|
-2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Sales tons to outside customers: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel mills |
|
|
4,607 |
|
|
|
4,578 |
|
|
|
1 |
% |
|
|
13,900 |
|
|
|
14,156 |
|
|
|
-2 |
% |
|
Joist |
|
|
90 |
|
|
|
127 |
|
|
|
-29 |
% |
|
|
292 |
|
|
|
404 |
|
|
|
-28 |
% |
|
Deck |
|
|
79 |
|
|
|
104 |
|
|
|
-24 |
% |
|
|
242 |
|
|
|
310 |
|
|
|
-22 |
% |
|
Rebar fabrication products |
|
|
278 |
|
|
|
307 |
|
|
|
-9 |
% |
|
|
781 |
|
|
|
918 |
|
|
|
-15 |
% |
|
Tubular products |
|
|
213 |
|
|
|
223 |
|
|
|
-4 |
% |
|
|
635 |
|
|
|
737 |
|
|
|
-14 |
% |
|
Building systems |
|
|
60 |
|
|
|
71 |
|
|
|
-15 |
% |
|
|
181 |
|
|
|
185 |
|
|
|
-2 |
% |
|
Other steel products |
|
|
291 |
|
|
|
309 |
|
|
|
-6 |
% |
|
|
919 |
|
|
|
921 |
|
|
- |
|
|
|
Raw materials |
|
|
578 |
|
|
|
521 |
|
|
|
11 |
% |
|
|
1,759 |
|
|
|
1,640 |
|
|
|
7 |
% |
|
|
|
|
6,196 |
|
|
|
6,240 |
|
|
|
-1 |
% |
|
|
18,709 |
|
|
|
19,271 |
|
|
|
-3 |
% |
|
Condensed Consolidated Statements of Earnings (Unaudited) (In thousands, except per share data) |
|
|||||||||||||||
|
|
|
|||||||||||||||
|
|
|
Three Months (13 Weeks) Ended |
|
|
Nine Months (39 Weeks) Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net sales |
|
$ |
7,444,160 |
|
|
$ |
8,775,734 |
|
|
$ |
23,658,415 |
|
|
$ |
27,008,970 |
|
|
Costs, expenses and other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold |
|
|
6,686,226 |
|
|
|
6,854,934 |
|
|
|
20,183,246 |
|
|
|
20,588,294 |
|
|
Marketing, administrative and other expenses |
|
|
244,657 |
|
|
|
385,768 |
|
|
|
883,132 |
|
|
|
1,229,051 |
|
|
Equity in (earnings) losses of unconsolidated affiliates |
|
|
(5,278) |
|
|
|
1,083 |
|
|
|
(24,079) |
|
|
|
(3,671) |
|
|
Losses and impairments of assets |
|
|
123,000 |
|
|
|
- |
|
|
|
137,150 |
|
|
|
- |
|
|
Interest expense (income), net |
|
|
7,282 |
|
|
|
(14,133) |
|
|
|
(32,811) |
|
|
|
648 |
|
|
|
|
|
7,055,887 |
|
|
|
7,227,652 |
|
|
|
21,146,638 |
|
|
|
21,814,322 |
|
|
Earnings before income taxes and noncontrolling interests |
|
|
388,273 |
|
|
|
1,548,082 |
|
|
|
2,511,777 |
|
|
|
5,194,648 |
|
|
Provision for income taxes |
|
|
85,448 |
|
|
|
326,827 |
|
|
|
537,847 |
|
|
|
1,154,689 |
|
|
Net earnings before noncontrolling interests |
|
|
302,825 |
|
|
|
1,221,255 |
|
|
|
1,973,930 |
|
|
|
4,039,959 |
|
|
Earnings attributable to noncontrolling interests |
|
|
52,915 |
|
|
|
79,749 |
|
|
|
233,962 |
|
|
|
300,557 |
|
|
Net earnings attributable to |
|
$ |
249,910 |
|
|
$ |
1,141,506 |
|
|
$ |
1,739,968 |
|
|
$ |
3,739,402 |
|
|
Net earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.05 |
|
|
$ |
4.58 |
|
|
$ |
7.23 |
|
|
$ |
14.86 |
|
|
Diluted |
|
$ |
1.05 |
|
|
$ |
4.57 |
|
|
$ |
7.22 |
|
|
$ |
14.83 |
|
|
Average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
236,462 |
|
|
|
248,504 |
|
|
|
239,701 |
|
|
|
250,752 |
|
|
Diluted |
|
|
236,768 |
|
|
|
248,916 |
|
|
|
239,800 |
|
|
|
251,179 |
|
|
Condensed Consolidated Balance Sheets (Unaudited) (In thousands) |
|
|||||||
|
|
|
|||||||
|
|
|
|
|
|
|
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,262,799 |
|
|
$ |
6,383,298 |
|
|
Short-term investments |
|
|
595,650 |
|
|
|
747,479 |
|
|
Accounts receivable, net |
|
|
2,949,190 |
|
|
|
2,953,311 |
|
|
Inventories, net |
|
|
5,126,493 |
|
|
|
5,577,758 |
|
|
Other current assets |
|
|
587,085 |
|
|
|
724,012 |
|
|
Total current assets |
|
|
13,521,217 |
|
|
|
16,385,858 |
|
|
Property, plant and equipment, net |
|
|
12,580,243 |
|
|
|
11,049,767 |
|
|
Restricted cash and cash equivalents |
|
|
- |
|
|
|
3,494 |
|
|
|
|
|
4,273,610 |
|
|
|
3,968,847 |
|
|
Other intangible assets, net |
|
|
3,194,261 |
|
|
|
3,108,015 |
|
|
Other assets |
|
|
776,860 |
|
|
|
824,518 |
|
|
Total assets |
|
$ |
34,346,191 |
|
|
$ |
35,340,499 |
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Short-term debt |
|
$ |
213,751 |
|
|
$ |
119,211 |
|
|
Current portion of long-term debt and finance lease obligations |
|
|
1,040,380 |
|
|
|
74,102 |
|
|
Accounts payable |
|
|
1,902,927 |
|
|
|
2,020,289 |
|
|
Salaries, wages and related accruals |
|
|
974,568 |
|
|
|
1,326,390 |
|
|
Accrued expenses and other current liabilities |
|
|
1,085,160 |
|
|
|
1,054,517 |
|
|
Total current liabilities |
|
|
5,216,786 |
|
|
|
4,594,509 |
|
|
Long-term debt and finance lease obligations due after one year |
|
|
5,684,936 |
|
|
|
6,648,873 |
|
|
Deferred credits and other liabilities |
|
|
1,887,928 |
|
|
|
1,973,363 |
|
|
Total liabilities |
|
|
12,789,650 |
|
|
|
13,216,745 |
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
152,061 |
|
|
|
152,061 |
|
|
Additional paid-in capital |
|
|
2,207,928 |
|
|
|
2,176,243 |
|
|
Retained earnings |
|
|
30,113,666 |
|
|
|
28,762,045 |
|
|
Accumulated other comprehensive loss, net of income taxes |
|
|
(168,233) |
|
|
|
(162,072) |
|
|
|
|
|
(11,832,564) |
|
|
|
(9,987,643) |
|
|
Total |
|
|
20,472,858 |
|
|
|
20,940,634 |
|
|
Noncontrolling interests |
|
|
1,083,683 |
|
|
|
1,183,120 |
|
|
Total equity |
|
|
21,556,541 |
|
|
|
22,123,754 |
|
|
Total liabilities and equity |
|
$ |
34,346,191 |
|
|
$ |
35,340,499 |
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
|
|||||||
|
|
|
|||||||
|
|
|
Nine Months (39 Weeks) Ended |
|
|||||
|
|
|
|
|
|
|
|
||
|
Operating activities: |
|
|
|
|
|
|
|
|
|
Net earnings before noncontrolling interests |
|
$ |
1,973,930 |
|
|
$ |
4,039,959 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
808,791 |
|
|
|
681,153 |
|
|
Amortization |
|
|
189,146 |
|
|
|
175,701 |
|
|
Loss on assets |
|
|
137,150 |
|
|
|
- |
|
|
Stock-based compensation |
|
|
114,280 |
|
|
|
101,107 |
|
|
Deferred income taxes |
|
|
(92,468) |
|
|
|
(25,750) |
|
|
Distributions from affiliates |
|
|
7,997 |
|
|
|
18,621 |
|
|
Equity in earnings of unconsolidated affiliates |
|
|
(24,079) |
|
|
|
(3,671) |
|
|
Changes in assets and liabilities (exclusive of acquisitions and dispositions): |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
46,823 |
|
|
|
171,621 |
|
|
Inventories |
|
|
496,048 |
|
|
|
209,056 |
|
|
Accounts payable |
|
|
(206,730) |
|
|
|
164,479 |
|
|
Federal income taxes |
|
|
16,535 |
|
|
|
240,667 |
|
|
Salaries, wages and related accruals |
|
|
(313,770) |
|
|
|
(347,026) |
|
|
Other operating activities |
|
|
91,979 |
|
|
|
165,692 |
|
|
Cash provided by operating activities |
|
|
3,245,632 |
|
|
|
5,591,609 |
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(2,293,859) |
|
|
|
(1,496,248) |
|
|
Investment in and advances to affiliates |
|
|
(79) |
|
|
|
(35,106) |
|
|
Sale of business |
|
|
1,438 |
|
|
|
- |
|
|
Disposition of plant and equipment |
|
|
11,834 |
|
|
|
8,617 |
|
|
Acquisitions (net of cash acquired) |
|
|
(672,193) |
|
|
|
- |
|
|
Purchases of investments |
|
|
(1,036,908) |
|
|
|
(1,200,136) |
|
|
Proceeds from the sale of investments |
|
|
1,209,944 |
|
|
|
917,332 |
|
|
Other investing activities |
|
|
9,607 |
|
|
|
(35,001) |
|
|
Cash used in investing activities |
|
|
(2,770,216) |
|
|
|
(1,840,542) |
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
Net change in short-term debt |
|
|
94,540 |
|
|
|
(13,142) |
|
|
Repayment of long-term debt |
|
|
(5,000) |
|
|
|
(7,500) |
|
|
Proceeds from exercise of stock options |
|
|
3,357 |
|
|
|
10,350 |
|
|
Payment of tax withholdings on certain stock-based compensation |
|
|
(50,213) |
|
|
|
(44,456) |
|
|
Distributions to noncontrolling interests |
|
|
(333,399) |
|
|
|
(412,404) |
|
|
Cash dividends |
|
|
(393,837) |
|
|
|
(387,996) |
|
|
Acquisition of treasury stock |
|
|
(1,901,574) |
|
|
|
(1,376,757) |
|
|
Other financing activities |
|
|
(10,724) |
|
|
|
(12,437) |
|
|
Cash used in financing activities |
|
|
(2,596,850) |
|
|
|
(2,244,342) |
|
|
Effect of exchange rate changes on cash |
|
|
(2,559) |
|
|
|
837 |
|
|
(Decrease) Increase in cash and cash equivalents and restricted cash and cash equivalents |
|
|
(2,123,993) |
|
|
|
1,507,562 |
|
|
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 nine months |
|
$ |
4,262,799 |
|
|
$ |
5,868,782 |
|
|
Non-cash investing activity: |
|
|
|
|
|
|
|
|
|
Change in accrued plant and equipment purchases |
|
$ |
70,077 |
|
|
$ |
40,126 |
|
|
Non-GAAP Financial Measures |
|
|||||||||||||||
|
Reconciliation of EBITDA (Unaudited) |
|
|||||||||||||||
|
(In thousands) |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months (13 Weeks) Ended |
|
|
9 Months (39 Weeks) Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net earnings before noncontrolling interests |
|
$ |
302,825 |
|
|
$ |
1,221,255 |
|
|
$ |
1,973,930 |
|
|
$ |
4,039,959 |
|
|
Depreciation |
|
|
281,165 |
|
|
|
232,317 |
|
|
|
808,791 |
|
|
|
681,153 |
|
|
Amortization |
|
|
69,296 |
|
|
|
58,470 |
|
|
|
189,146 |
|
|
|
175,701 |
|
|
Losses and impairments of assets |
|
|
123,000 |
|
|
|
- |
|
|
|
137,150 |
|
|
|
- |
|
|
Interest (income) expense, net |
|
|
7,282 |
|
|
|
(14,133) |
|
|
|
(32,811) |
|
|
|
648 |
|
|
Provision for income taxes |
|
|
85,448 |
|
|
|
326,827 |
|
|
|
537,847 |
|
|
|
1,154,689 |
|
|
EBITDA |
|
$ |
869,016 |
|
|
$ |
1,824,736 |
|
|
$ |
3,614,053 |
|
|
$ |
6,052,150 |
|
|
Reconciliation of Adjusted net earnings attributable to (In thousands, except per share data) |
|
|||||||
|
|
|
|||||||
|
|
|
Three Months (13 Weeks) Ended |
|
|||||
|
|
|
|
|
|
|
Diluted EPS |
|
|
|
Net earnings attributable to |
|
$ |
249,910 |
|
|
$ |
1.05 |
|
|
Losses and impairments of assets, net of tax |
|
|
103,080 |
|
|
|
0.44 |
|
|
Adjusted net earnings attributable to |
|
$ |
352,990 |
|
|
$ |
1.49 |
|
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SOURCE
