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 | ||||
SOURCE Nucor Corporation
