"I'm incredibly proud of the Nucor Team's exceptional focus on delivering world class performance in the first quarter of 2022, especially our record results in Safety and first quarter profitability. We are grateful for the trust our customers place in the Nucor Team with every order as we strive to offer exceptional value by delivering the cleanest and most sustainable steel solutions in the world. Our key forward looking indicators for 2022 remain favorable and we expect another strong year in both earnings and cash generation," said
Selected Segment Data
Earnings (loss) before income taxes and noncontrolling interests by segment for the first quarter of 2022 and 2021 were as follows (in thousands):
Three Months (13 Weeks) Ended |
||||||||
|
|
|||||||
Steel mills |
$ |
2,578,854 |
$ |
1,314,974 |
||||
Steel products |
684,867 |
211,812 |
||||||
Raw materials |
95,853 |
223,235 |
||||||
Corporate/eliminations |
(461,459) |
(451,775) |
||||||
$ |
2,898,115 |
$ |
1,298,246 |
Financial Review
The average scrap and scrap substitute cost per gross ton used in the first quarter of 2022 was
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 77% in the first quarter of 2022 as compared to 89% in the fourth quarter of 2021 and 95% in the first quarter of 2021.
Financial Strength
At the end of the first quarter of 2022, we had
Commitment to
During the first quarter of 2022,
On
First Quarter of 2022 Analysis
Steel mill segment earnings in the first quarter of 2022 decreased from the fourth quarter of 2021, primarily due to the decreased profitability of the sheet mills. While end market demand remains strong, average realized selling prices in sheet softened during the first quarter reflecting increased import volumes coupled with modest destocking. The steel products segment generated increased earnings in the first quarter of 2022 relative to the fourth quarter of 2021 due to continued strong nonresidential construction related demand and expanded profit margins. Earnings for the raw materials segment increased in the first quarter of 2022 as compared to the fourth quarter of 2021 due to improving selling prices for raw materials at the end of the quarter.
Second Quarter of 2022 Outlook
End use market demand remains strong for steel and steel products, and we remain confident that 2022 will be another year of very strong earnings and cash flow for
We expect that the second quarter of 2022 will be the most profitable quarter in
Second quarter earnings will be driven by increased profitability in the steel products segment, which continues to benefit from robust demand in nonresidential construction markets. In addition, the steel mills segment earnings are expected to strengthen due primarily to increased profitability at our sheet and plate mills. Similarly,
Earnings Conference Call
You are invited to listen to the live broadcast of
About
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; steel grating; and wire and wire mesh. Nucor, through The
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 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
Tonnage Data |
||||||||||||
(In thousands) |
||||||||||||
Three Months (13 Weeks) Ended |
||||||||||||
|
|
Percent Change |
||||||||||
Steel mills total shipments: |
||||||||||||
Sheet |
2,385 |
2,927 |
-19 |
% |
||||||||
Bars |
2,286 |
2,319 |
-1 |
% |
||||||||
Structural |
640 |
623 |
3 |
% |
||||||||
Plate |
398 |
596 |
-33 |
% |
||||||||
Other |
105 |
79 |
33 |
% |
||||||||
5,814 |
6,544 |
-11 |
% |
|||||||||
Sales tons to outside customers: |
||||||||||||
Steel mills |
4,539 |
5,190 |
-13 |
% |
||||||||
Joist |
179 |
172 |
4 |
% |
||||||||
Deck |
136 |
135 |
1 |
% |
||||||||
Cold finished |
133 |
132 |
1 |
% |
||||||||
Rebar fabrication products |
291 |
282 |
3 |
% |
||||||||
Piling |
111 |
136 |
-18 |
% |
||||||||
Tubular products |
255 |
250 |
2 |
% |
||||||||
Other steel products |
130 |
100 |
30 |
% |
||||||||
Raw materials |
620 |
779 |
-20 |
% |
||||||||
6,394 |
7,176 |
-11 |
% |
|||||||||
Condensed Consolidated Statements of Earnings (Unaudited) (In thousands, except per share data) |
||||||||
Three Months (13 Weeks) Ended |
||||||||
|
|
|||||||
Net sales |
$ |
10,493,282 |
$ |
7,017,140 |
||||
Costs, expenses and other: |
||||||||
Cost of products sold |
7,035,143 |
5,394,703 |
||||||
Marketing, administrative and other expenses |
524,584 |
291,124 |
||||||
Equity in earnings of unconsolidated affiliates |
(7,695) |
(13,239) |
||||||
Losses on assets |
- |
6,662 |
||||||
Interest expense, net |
43,135 |
39,644 |
||||||
7,595,167 |
5,718,894 |
|||||||
Earnings before income taxes and noncontrolling interests |
2,898,115 |
1,298,246 |
||||||
Provision for income taxes |
671,000 |
310,732 |
||||||
Net earnings |
2,227,115 |
987,514 |
||||||
Earnings attributable to noncontrolling interests |
131,492 |
45,082 |
||||||
Net earnings attributable to |
$ |
2,095,623 |
$ |
942,432 |
||||
Net earnings per share: |
||||||||
Basic |
$ |
7.69 |
$ |
3.10 |
||||
Diluted |
$ |
7.67 |
$ |
3.10 |
||||
Average shares outstanding: |
||||||||
Basic |
271,564 |
301,846 |
||||||
Diluted |
272,094 |
302,518 |
||||||
Condensed Consolidated Balance Sheets (Unaudited) (In thousands) |
||||||||
|
|
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
3,725,266 |
$ |
2,364,858 |
||||
Short-term investments |
446,868 |
253,005 |
||||||
Accounts receivable, net |
4,111,478 |
3,853,972 |
||||||
Inventories, net |
6,245,679 |
6,011,182 |
||||||
Other current assets |
252,060 |
316,540 |
||||||
Total current assets |
14,781,351 |
12,799,557 |
||||||
Property, plant and equipment, net |
8,921,263 |
8,114,818 |
||||||
Restricted cash and cash equivalents |
88,242 |
143,800 |
||||||
|
2,904,134 |
2,827,344 |
||||||
Other intangible assets, net |
1,063,210 |
1,103,759 |
||||||
Other assets |
874,668 |
833,794 |
||||||
Total assets |
$ |
28,632,868 |
$ |
25,823,072 |
||||
LIABILITIES |
||||||||
Current liabilities: |
||||||||
Short-term debt |
$ |
86,521 |
$ |
107,723 |
||||
Current portion of long-term debt and finance lease obligations |
629,536 |
615,678 |
||||||
Accounts payable |
1,900,536 |
1,974,041 |
||||||
Salaries, wages and related accruals |
832,999 |
1,495,166 |
||||||
Accrued expenses and other current liabilities |
1,081,706 |
964,805 |
||||||
Federal income taxes payable |
602,537 |
- |
||||||
Total current liabilities |
5,133,835 |
5,157,413 |
||||||
Long-term debt and finance lease obligations due after one year |
6,112,331 |
4,961,410 |
||||||
Deferred credits and other liabilities |
1,243,582 |
1,100,455 |
||||||
Total liabilities |
12,489,748 |
11,219,278 |
||||||
EQUITY |
||||||||
|
||||||||
Common stock |
152,061 |
152,061 |
||||||
Additional paid-in capital |
2,163,129 |
2,140,608 |
||||||
Retained earnings |
19,635,277 |
17,674,100 |
||||||
Accumulated other comprehensive loss, net of income taxes |
(44,504) |
(115,282) |
||||||
Treasury stock |
(6,701,401) |
(5,835,098) |
||||||
Total Nucor stockholders' equity |
15,204,562 |
14,016,389 |
||||||
Noncontrolling interests |
938,558 |
587,405 |
||||||
Total equity |
16,143,120 |
14,603,794 |
||||||
Total liabilities and equity |
$ |
28,632,868 |
$ |
25,823,072 |
||||
Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
||||||||
Three Months (13 Weeks) Ended |
||||||||
|
|
|||||||
Operating activities: |
||||||||
Net earnings |
$ |
2,227,115 |
$ |
987,514 |
||||
Adjustments: |
||||||||
Depreciation |
195,478 |
179,820 |
||||||
Amortization |
41,411 |
21,130 |
||||||
Stock-based compensation |
26,422 |
19,859 |
||||||
Deferred income taxes |
(18,764) |
62,705 |
||||||
Distributions from affiliates |
1,500 |
180 |
||||||
Equity in earnings of unconsolidated affiliates |
(7,695) |
(13,239) |
||||||
Losses on assets |
- |
6,662 |
||||||
Changes in assets and liabilities (exclusive of acquisitions and dispositions): |
||||||||
Accounts receivable |
(92,394) |
(524,570) |
||||||
Inventories |
124,201 |
(795,940) |
||||||
Accounts payable |
(165,476) |
225,333 |
||||||
Federal income taxes |
672,142 |
200,888 |
||||||
Salaries, wages and related accruals |
(658,267) |
69,780 |
||||||
Other operating activities |
126,495 |
90,289 |
||||||
Cash provided by operating activities |
2,472,168 |
530,411 |
||||||
Investing activities: |
||||||||
Capital expenditures |
(447,682) |
(313,510) |
||||||
Investment in and advances to affiliates |
(63) |
(118) |
||||||
Disposition of plant and equipment |
7,288 |
5,735 |
||||||
Acquisitions (net of cash acquired) |
(347,177) |
300 |
||||||
Purchase of investments |
(274,197) |
(214,427) |
||||||
Proceeds from the sale of investments |
80,333 |
219,777 |
||||||
Other investing activities |
(183) |
249 |
||||||
Cash used in investing activities |
(981,681) |
(301,994) |
||||||
Financing activities: |
||||||||
Net change in short-term debt |
(21,202) |
(1,607) |
||||||
Proceeds from long-term debt, net of discount |
1,093,059 |
- |
||||||
Repayment of long-term debt |
(2,500) |
- |
||||||
Bond issuance related costs |
(8,388) |
- |
||||||
Proceeds from exercise of stock options |
16,586 |
107,524 |
||||||
Payment of tax withholdings on certain stock-based compensation |
(8,512) |
(14,521) |
||||||
Distributions to noncontrolling interests |
(211,558) |
(73,795) |
||||||
Cash dividends |
(137,587) |
(123,901) |
||||||
Acquisition of treasury stock |
(905,324) |
(301,859) |
||||||
Other financing activities |
(3,883) |
(2,505) |
||||||
Cash used in financing activities |
(189,309) |
(410,664) |
||||||
Effect of exchange rate changes on cash |
3,672 |
3,307 |
||||||
Increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents |
1,304,850 |
(178,940) |
||||||
Cash and cash equivalents and restricted cash and cash equivalents - beginning of year |
2,508,658 |
2,754,929 |
||||||
Cash and cash equivalents and restricted cash and cash equivalents - end of three months |
$ |
3,813,508 |
$ |
2,575,989 |
||||
Non-cash investing activity: |
||||||||
Change in accrued plant and equipment purchases |
$ |
(7,789) |
$ |
4,461 |
||||
View original content:https://www.prnewswire.com/news-releases/nucor-reports-results-for-the-first-quarter-of-2022-301529811.html
SOURCE
For Investor/Analyst Inquiries - Paul Donnelly, 704-264-8807, or Gregg Lucas, 704-972-1841; For Media Inquiries - Katherine Miller, 704-353-9015