In the first nine months of 2022,
"
Selected Segment Data
Earnings before income taxes and noncontrolling interests by segment for the third quarter and first nine months of 2022 and 2021 were as follows (in thousands):
Three Months (13 Weeks) Ended |
Nine Months (39 Weeks) Ended |
|||||||||||||||
|
|
|
|
|||||||||||||
Steel mills |
$ |
1,287,855 |
$ |
3,116,539 |
$ |
6,682,432 |
$ |
6,606,320 |
||||||||
Steel products |
1,196,845 |
368,595 |
3,011,644 |
839,737 |
||||||||||||
Raw materials |
279,189 |
161,870 |
638,640 |
505,248 |
||||||||||||
Corporate/eliminations |
(440,967) |
(777,897) |
(1,621,277) |
(1,758,204) |
||||||||||||
$ |
2,322,922 |
$ |
2,869,107 |
$ |
8,711,439 |
$ |
6,193,101 |
Financial Review
In the first nine months of 2022,
The average scrap and scrap substitute cost per gross ton used in the third quarter of 2022 was
Pre-operating and start-up costs related to the Company's growth projects were approximately
In the first nine months of 2022, 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 third quarter of 2022 as compared to 85% in the second quarter of 2022 and 96% in the third quarter of 2021. Operating rates in the first nine months of 2022 decreased to 80% as compared to 96% in the first nine months of 2021.
Financial Strength
At the end of the third quarter of 2022, we had
Commitment to
During the third quarter of 2022,
On
Third Quarter of 2022 Analysis
The primary driver for the decrease in earnings in the third quarter of 2022 as compared to the second quarter of 2022 was the decreased earnings of the steel mills segment. The decrease in the steel mills segment earnings was caused primarily by metal margin contraction and reduced shipping volumes, particularly at our sheet and plate mills. The steel products segment had another strong quarter in the third quarter of 2022, and its earnings increased modestly from the second quarter of 2022. Raw materials segment earnings increased in the third quarter of 2022 as compared to the second quarter of 2022 as decreased profitability in our scrap brokerage and processing operations was offset by the increased profitability of our direct reduced iron facilities.
Fourth Quarter of 2022 Outlook
We continue to believe that 2022 will be the most profitable year for earnings in
We expect fourth quarter of 2022 earnings to be decreased from the third quarter of 2022. In the steel mills segment, we expect considerably lower earnings in the fourth quarter of 2022 as compared to the third quarter of 2022 due to lower average selling prices and lower volumes, with the largest decrease in profitability expected at our sheet mills. The steel products segment is expected to have another strong quarter in the fourth quarter of 2022, but the segment's profitability is anticipated to decrease from the third quarter of 2022 primarily due to typical seasonality experienced in the fourth quarter. The raw materials segment is expected to have significantly decreased earnings in the fourth quarter of 2022 as compared to the third quarter of 2022 due to decreased selling prices for raw materials.
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; overhead doors; 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 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
Tonnage Data |
||||||||||||||||||||||||
(In thousands) |
||||||||||||||||||||||||
Three Months (13 Weeks) Ended |
Nine Months (39 Weeks) Ended |
|||||||||||||||||||||||
|
|
Percent |
|
|
Percent |
|||||||||||||||||||
Steel mills total shipments: |
||||||||||||||||||||||||
Sheet |
2,677 |
2,789 |
-4 |
% |
7,996 |
8,629 |
-7 |
% |
||||||||||||||||
Bars |
2,169 |
2,350 |
-8 |
% |
6,728 |
7,092 |
-5 |
% |
||||||||||||||||
Structural |
583 |
738 |
-21 |
% |
1,847 |
2,042 |
-10 |
% |
||||||||||||||||
Plate |
379 |
605 |
-37 |
% |
1,251 |
1,800 |
-31 |
% |
||||||||||||||||
Other |
61 |
61 |
- |
309 |
258 |
20 |
% |
|||||||||||||||||
5,869 |
6,543 |
-10 |
% |
18,131 |
19,821 |
-9 |
% |
|||||||||||||||||
Sales tons to outside customers: |
||||||||||||||||||||||||
Steel mills |
4,553 |
5,144 |
-11 |
% |
14,133 |
15,690 |
-10 |
% |
||||||||||||||||
Joist |
160 |
190 |
-16 |
% |
497 |
529 |
-6 |
% |
||||||||||||||||
Deck |
129 |
139 |
-7 |
% |
388 |
404 |
-4 |
% |
||||||||||||||||
Cold finished |
112 |
123 |
-9 |
% |
368 |
383 |
-4 |
% |
||||||||||||||||
Rebar fabrication products |
350 |
323 |
8 |
% |
980 |
943 |
4 |
% |
||||||||||||||||
Piling |
119 |
144 |
-17 |
% |
349 |
451 |
-23 |
% |
||||||||||||||||
Tubular products |
231 |
260 |
-11 |
% |
735 |
779 |
-6 |
% |
||||||||||||||||
Other steel products |
190 |
128 |
48 |
% |
520 |
337 |
54 |
% |
||||||||||||||||
Raw materials |
571 |
721 |
-21 |
% |
1,816 |
2,314 |
-22 |
% |
||||||||||||||||
6,415 |
7,172 |
-11 |
% |
19,786 |
21,830 |
-9 |
% |
|||||||||||||||||
Condensed Consolidated Statements of Earnings (Unaudited) |
||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||
Three Months (13 Weeks) Ended |
Nine Months (39 Weeks) Ended |
|||||||||||||||
|
|
|
|
|||||||||||||
Net sales |
$ |
10,500,755 |
$ |
10,313,223 |
$ |
32,788,511 |
$ |
26,119,527 |
||||||||
Costs, expenses and other: |
||||||||||||||||
Cost of products sold |
7,657,364 |
6,906,950 |
22,382,718 |
18,617,314 |
||||||||||||
Marketing, administrative and other expenses |
486,560 |
526,345 |
1,574,355 |
1,204,539 |
||||||||||||
Equity in earnings of unconsolidated affiliates |
(8,438) |
(32,464) |
(23,246) |
(65,106) |
||||||||||||
Losses on assets |
- |
- |
- |
50,970 |
||||||||||||
Interest expense, net |
42,347 |
43,285 |
143,245 |
118,709 |
||||||||||||
8,177,833 |
7,444,116 |
24,077,072 |
19,926,426 |
|||||||||||||
Earnings before income taxes and noncontrolling interests |
2,322,922 |
2,869,107 |
8,711,439 |
6,193,101 |
||||||||||||
Provision for income taxes |
523,879 |
645,842 |
1,958,044 |
1,410,863 |
||||||||||||
Net earnings |
1,799,043 |
2,223,265 |
6,753,395 |
4,782,238 |
||||||||||||
Earnings attributable to noncontrolling interests |
104,295 |
95,522 |
401,791 |
205,195 |
||||||||||||
Net earnings attributable to |
$ |
1,694,748 |
$ |
2,127,743 |
$ |
6,351,604 |
$ |
4,577,043 |
||||||||
Net earnings per share: |
||||||||||||||||
Basic |
$ |
6.51 |
$ |
7.29 |
$ |
23.90 |
$ |
15.37 |
||||||||
Diluted |
$ |
6.50 |
$ |
7.28 |
$ |
23.85 |
$ |
15.34 |
||||||||
Average shares outstanding: |
||||||||||||||||
Basic |
259,102 |
290,510 |
264,655 |
296,431 |
||||||||||||
Diluted |
259,526 |
291,152 |
265,239 |
296,928 |
Condensed Consolidated Balance Sheets (Unaudited) |
||||||||
(In thousands) |
||||||||
|
|
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
3,049,864 |
$ |
2,364,858 |
||||
Short-term investments |
377,426 |
253,005 |
||||||
Accounts receivable, net |
4,200,643 |
3,853,972 |
||||||
Inventories, net |
6,046,235 |
6,011,182 |
||||||
Other current assets |
682,289 |
316,540 |
||||||
Total current assets |
14,356,457 |
12,799,557 |
||||||
Property, plant and equipment, net |
9,440,074 |
8,114,818 |
||||||
Restricted cash and cash equivalents |
79,880 |
143,800 |
||||||
|
3,917,452 |
2,827,344 |
||||||
Other intangible assets, net |
3,392,941 |
1,103,759 |
||||||
Other assets |
885,900 |
833,794 |
||||||
Total assets |
$ |
32,072,704 |
$ |
25,823,072 |
||||
LIABILITIES |
||||||||
Current liabilities: |
||||||||
Short-term debt |
$ |
64,649 |
$ |
107,723 |
||||
Current portion of long-term debt and finance lease obligations |
28,994 |
615,678 |
||||||
Accounts payable |
1,810,388 |
1,974,041 |
||||||
Salaries, wages and related accruals |
1,613,387 |
1,495,166 |
||||||
Accrued expenses and other current liabilities |
1,114,671 |
964,805 |
||||||
Total current liabilities |
4,632,089 |
5,157,413 |
||||||
Long-term debt and finance lease obligations due after one year |
6,617,030 |
4,961,410 |
||||||
Deferred credits and other liabilities |
1,998,906 |
1,100,455 |
||||||
Total liabilities |
13,248,025 |
11,219,278 |
||||||
Commitments and contingencies |
||||||||
EQUITY |
||||||||
|
||||||||
Common stock |
152,061 |
152,061 |
||||||
Additional paid-in capital |
2,128,521 |
2,140,608 |
||||||
Retained earnings |
23,629,649 |
17,674,100 |
||||||
Accumulated other comprehensive loss, net of income taxes |
(103,553) |
(115,282) |
||||||
|
(8,098,221) |
(5,835,098) |
||||||
Total |
17,708,457 |
14,016,389 |
||||||
Noncontrolling interests |
1,116,222 |
587,405 |
||||||
Total equity |
18,824,679 |
14,603,794 |
||||||
Total liabilities and equity |
$ |
32,072,704 |
$ |
25,823,072 |
||||
Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||||||
Nine Months (39 Weeks) Ended |
||||||||
|
|
|||||||
Operating activities: |
||||||||
Net earnings |
$ |
6,753,395 |
$ |
4,782,238 |
||||
Adjustments: |
||||||||
Depreciation |
609,933 |
546,619 |
||||||
Amortization |
164,480 |
76,656 |
||||||
Stock-based compensation |
99,838 |
97,652 |
||||||
Deferred income taxes |
(33,116) |
166,748 |
||||||
Distributions from affiliates |
25,571 |
200 |
||||||
Equity in earnings of unconsolidated affiliates |
(23,246) |
(65,106) |
||||||
Losses on assets |
- |
50,970 |
||||||
Changes in assets and liabilities (exclusive of acquisitions and dispositions): |
||||||||
Accounts receivable |
(104,751) |
(1,622,668) |
||||||
Inventories |
371,068 |
(1,976,738) |
||||||
Accounts payable |
(299,760) |
343,014 |
||||||
Federal income taxes |
(302,335) |
262,195 |
||||||
Salaries, wages and related accruals |
121,243 |
835,381 |
||||||
Other operating activities |
156,201 |
123,202 |
||||||
Cash provided by operating activities |
7,538,521 |
3,620,363 |
||||||
Investing activities: |
||||||||
Capital expenditures |
(1,430,125) |
(1,207,088) |
||||||
Investment in and advances to affiliates |
(246) |
(193) |
||||||
Sale of business |
99,681 |
- |
||||||
Disposition of plant and equipment |
27,278 |
15,581 |
||||||
Acquisitions (net of cash acquired) |
(3,549,764) |
(1,346,608) |
||||||
Purchases of investments |
(563,770) |
(394,141) |
||||||
Proceeds from the sale of investments |
439,348 |
554,898 |
||||||
Other investing activities |
(9,595) |
1,042 |
||||||
Cash used in investing activities |
(4,987,193) |
(2,376,509) |
||||||
Financing activities: |
||||||||
Net change in short-term debt |
(43,074) |
44,831 |
||||||
Proceeds from issuance of long-term debt, net of discount |
2,091,934 |
196,990 |
||||||
Repayment of long-term debt |
(1,108,500) |
- |
||||||
Bond issuance costs |
(13,138) |
- |
||||||
Proceeds from exercise of stock options |
21,604 |
143,874 |
||||||
Payment of tax withholdings on certain stock-based compensation |
(62,869) |
(71,494) |
||||||
Distributions to noncontrolling interests |
(300,772) |
(120,619) |
||||||
Cash dividends |
(404,150) |
(366,606) |
||||||
Acquisition of treasury stock |
(2,359,971) |
(1,773,848) |
||||||
Proceeds from government incentives |
275,000 |
- |
||||||
Other financing activities |
(21,085) |
(7,993) |
||||||
Cash used in financing activities |
(1,925,021) |
(1,954,865) |
||||||
Effect of exchange rate changes on cash |
(5,221) |
1,720 |
||||||
(Decrease) increase in cash and cash equivalents and restricted cash and cash equivalents |
621,086 |
(709,291) |
||||||
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 nine months |
$ |
3,129,744 |
$ |
2,045,638 |
||||
Non-cash investing activity: |
||||||||
Change in accrued plant and equipment purchases |
$ |
(31,469) |
$ |
14,997 |
||||
View original content:https://www.prnewswire.com/news-releases/nucor-reports-results-for-the-third-quarter-of-2022-301654405.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