Nucor Reports Results for the Second Quarter of 2024
Rhea-AI Summary
Nucor (NYSE: NUE) reported consolidated net earnings of $645.2 million, or $2.68 per diluted share, for Q2 2024. This represents a decrease from $844.8 million in Q1 2024 and $1.46 billion in Q2 2023. Net sales decreased 1% to $8.08 billion compared to Q1 2024 and 15% compared to Q2 2023. The company's average sales price per ton decreased 2% from Q1 2024 and 11% from Q2 2023. Nucor shipped approximately 6,289,000 tons to outside customers, a 1% increase from Q1 2024 but a 5% decrease from Q2 2023. The company's cash position remains strong with $5.43 billion in cash and cash equivalents. Nucor continues to focus on its long-term growth strategy and has returned over $1.7 billion to investors through June 2024.
Positive
- Strong cash position with $5.43 billion in cash and cash equivalents
- Returned over $1.7 billion to investors through June 2024
- 1% increase in shipments to outside customers compared to Q1 2024
- Maintained strong credit ratings (A-/A-/Baa1) with stable or positive outlooks
Negative
- Net earnings decreased to $645.2 million from $844.8 million in Q1 2024 and $1.46 billion in Q2 2023
- Net sales decreased 15% compared to Q2 2023
- Average sales price per ton decreased 2% from Q1 2024 and 11% from Q2 2023
- Overall operating rates at steel mills decreased to 75% from 82% in Q1 2024
- Expects earnings to decrease in Q3 2024 compared to Q2 2024
News Market Reaction
On the day this news was published, NUE declined 1.10%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Second Quarter of 2024 Highlights
- Net earnings attributable to Nucor stockholders of
$645.2 million $2.68 - Net sales of
$8.08 billion - Net earnings before noncontrolling interests of
$712.1 million $1.23 billion
In the first six months of 2024, Nucor reported consolidated net earnings attributable to Nucor stockholders of
"While market conditions have softened compared to recent record-setting years, Nucor remains focused on its long-term growth strategy and has returned more than
"Nucor's strategy to grow our core steelmaking operations and expand into steel-adjacent downstream markets positions the company to create attractive shareholder value and improve the company's through-cycle earnings profile. I am incredibly proud of the 32,000 men and women of Nucor who are executing this growth plan while achieving the safest start to any year in Nucor's history."
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):
Three Months (13 Weeks) Ended | Six Months (26 Weeks) Ended | |||||||||||||||
June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||||
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
Nucor's consolidated net sales decreased
In the first six months of 2024, Nucor's consolidated net sales of
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
Financial Strength
At the end of the second quarter of 2024, we had
Commitment to Returning Capital to Stockholders
During the second quarter of 2024, Nucor repurchased approximately 2.9 million shares of its common stock at an average price of
On June 6, 2024, Nucor's Board of Directors declared a cash dividend of
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 Nucor's conference call during which management will discuss Nucor's second quarter results on July 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
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 | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Three Months (13 Weeks) Ended | Six Months (26 Weeks) Ended | |||||||||||||||||||||||
June 29, 2024 | July 1, 2023 | Percent | June 29, 2024 | July 1, 2023 | Percent | |||||||||||||||||||
Steel mills total shipments: | ||||||||||||||||||||||||
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 | % | |||||||||||||||||
Sales tons to outside customers: | ||||||||||||||||||||||||
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 | % | |||||||||||||||||
Condensed Consolidated Statements of Earnings (Unaudited) (In thousands, except per share data) | ||||||||||||||||
Three Months (13 Weeks) Ended | Six Months (26 Weeks) Ended | |||||||||||||||
June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||||
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 Nucor stockholders | $ | 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) | ||||||||
June 29, 2024 | Dec. 31, 2023 | |||||||
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 | ||||||
Goodwill | 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 | ||||||||
Nucor stockholders' 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) | ||||||
Treasury stock | (11,432,103) | (9,987,643) | ||||||
Total Nucor stockholders' equity | 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 | ||||||||
June 29, 2024 | July 1, 2023 | |||||||
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 | |||||||||||||||
June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||||
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 Nucor Corporation
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