For the full year 2022,
Included in the fourth quarter of 2022 results was an after-tax net benefit of
"I am proud to report that 2022 was both the safest and most profitable year in
"In terms of profitability for the year,
Selected Segment Data
Earnings (loss) before income taxes and noncontrolling interests by segment for the fourth quarter and full year 2022 and 2021 were as follows (in thousands):
Three Months (13 Weeks) Ended |
Twelve Months (52 Weeks) Ended |
|||||||||||||||
|
|
|
|
|||||||||||||
Steel mills |
$ |
516,655 |
$ |
3,128,700 |
$ |
7,199,087 |
$ |
9,735,020 |
||||||||
Steel products |
1,081,461 |
451,713 |
4,093,105 |
1,291,450 |
||||||||||||
Raw materials |
(141,817) |
44,708 |
496,823 |
549,956 |
||||||||||||
Corporate/eliminations |
77,106 |
(617,364) |
(1,544,171) |
(2,375,568) |
||||||||||||
$ |
1,533,405 |
$ |
3,007,757 |
$ |
10,244,844 |
$ |
9,200,858 |
Financial Review
For the full year 2022,
The average scrap and scrap substitute cost per gross ton used in the fourth quarter of 2022 was
Pre-tax pre-operating and start-up costs related to the Company's growth projects were approximately
In the full year 2022, pre-tax 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 70% in the fourth quarter of 2022 as compared to 77% in the third quarter of 2022 and 89% in the fourth quarter of 2021. Operating rates for the full year 2022 decreased to 77% as compared to 94% for the full year 2021.
Financial Strength
At the end of the fourth quarter of 2022,
Commitment to
On
During the fourth quarter of 2022,
For the full year 2022,
Fourth Quarter of 2022 Analysis
Steel mills segment earnings in the fourth quarter of 2022 decreased compared to the third quarter of 2022 due to lower average selling prices, margin compression, and lower volumes, with the largest decrease in profitability at our sheet mills. The modest decrease in the steel products segment earnings in the fourth quarter of 2022 as compared to the third quarter of 2022 was due to lower volumes and selling prices. Raw materials segment earnings decreased significantly in the fourth quarter of 2022 as compared to the third quarter of 2022 primarily due to decreased profitability at our direct reduced iron, or DRI, facilities, both of which experienced planned outages during the fourth quarter, decreased selling prices for raw materials, and the previously mentioned write-off of the leasehold interest in unproved oil and gas properties.
First Quarter of 2023 Outlook
The profitability of the steel mills segment is expected to increase in the first quarter of 2023 as compared to the fourth quarter of 2022 due to higher margins and volumes, with the largest improvement expected to occur at our sheet mills.
Within the steel products segment, we expect continued strong profitability in the first quarter of 2023, with some decrease expected from the fourth quarter of 2022 due to seasonally slower construction activity and some reductions in realized pricing. Overall, we expect first quarter 2023 steel products segment earnings to be higher than the first quarter of 2022.
In the raw materials segment, excluding the impact of the impairment charge recorded in the fourth quarter of 2022, we expect increased profitability compared to the fourth quarter of 2022 due to higher volumes at our DRI facilities and scrap recycling and brokerage operations.
On a combined basis, the operating income during the first quarter of 2023 from our three business segments is expected to exceed that of the fourth quarter of 2022. However, we expect consolidated net earnings to decrease compared to the fourth quarter of 2022 due to intercompany eliminations in the first quarter of 2023 and the absence of state tax benefits that were recorded in the fourth quarter of 2022.
Earnings Conference Call
An earnings call is scheduled for
About
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)
Tonnage Data |
||||||||||||
(In thousands) |
||||||||||||
Three Months (13 Weeks) Ended |
Twelve Months (52 Weeks) Ended |
|||||||||||
|
|
Percent |
|
|
Percent |
|||||||
Steel mills total shipments: |
||||||||||||
Sheet |
2,314 |
2,502 |
-8 % |
10,310 |
11,131 |
-7 % |
||||||
Bars |
1,907 |
2,177 |
-12 % |
8,635 |
9,269 |
-7 % |
||||||
Structural |
445 |
607 |
-27 % |
2,292 |
2,649 |
-13 % |
||||||
Plate |
375 |
489 |
-23 % |
1,626 |
2,289 |
-29 % |
||||||
Other |
69 |
94 |
-27 % |
378 |
352 |
7 % |
||||||
5,110 |
5,869 |
-13 % |
23,241 |
25,690 |
-10 % |
|||||||
Sales tons to outside customers: |
||||||||||||
Steel mills |
4,067 |
4,606 |
-12 % |
18,200 |
20,296 |
-10 % |
||||||
Joist |
174 |
173 |
1 % |
671 |
702 |
-4 % |
||||||
Deck |
127 |
132 |
-4 % |
515 |
536 |
-4 % |
||||||
Cold finished |
99 |
112 |
-12 % |
467 |
495 |
-6 % |
||||||
Rebar fabrication products |
302 |
289 |
4 % |
1,282 |
1,232 |
4 % |
||||||
Piling |
94 |
103 |
-9 % |
443 |
554 |
-20 % |
||||||
Tubular products |
215 |
222 |
-3 % |
950 |
1,013 |
-6 % |
||||||
Other steel products |
167 |
122 |
37 % |
687 |
447 |
54 % |
||||||
Raw materials |
493 |
658 |
-25 % |
2,309 |
2,972 |
-22 % |
||||||
5,738 |
6,417 |
-11 % |
25,524 |
28,247 |
-10 % |
Condensed Consolidated Statements of Earnings (Unaudited) |
||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||
Three Months (13 Weeks) Ended |
Twelve Months (52 Weeks) Ended |
|||||||||||||||
|
|
|
|
|||||||||||||
Net sales |
$ |
8,723,956 |
$ |
10,364,412 |
$ |
41,512,467 |
$ |
36,483,939 |
||||||||
Costs, expenses and other: |
||||||||||||||||
Cost of products sold |
6,626,469 |
6,841,211 |
29,009,187 |
25,458,525 |
||||||||||||
Marketing, administrative and other expenses |
422,823 |
502,070 |
1,997,178 |
1,706,609 |
||||||||||||
Equity in (earnings) losses of unconsolidated affiliates |
12,532 |
(37,962) |
(10,714) |
(103,068) |
||||||||||||
Losses and impairments of assets |
101,756 |
11,191 |
101,756 |
62,161 |
||||||||||||
Interest expense, net |
26,971 |
40,145 |
170,216 |
158,854 |
||||||||||||
7,190,551 |
7,356,655 |
31,267,623 |
27,283,081 |
|||||||||||||
Earnings before income taxes and noncontrolling interests |
1,533,405 |
3,007,757 |
10,244,844 |
9,200,858 |
||||||||||||
Provision for income taxes |
207,160 |
667,625 |
2,165,204 |
2,078,488 |
||||||||||||
Net earnings |
1,326,245 |
2,340,132 |
8,079,640 |
7,122,370 |
||||||||||||
Earnings attributable to noncontrolling interests |
70,512 |
89,714 |
472,303 |
294,909 |
||||||||||||
Net earnings attributable to |
$ |
1,255,733 |
$ |
2,250,418 |
$ |
7,607,337 |
$ |
6,827,461 |
||||||||
Net earnings per share: |
||||||||||||||||
Basic |
$ |
4.90 |
$ |
7.99 |
$ |
28.88 |
$ |
23.23 |
||||||||
Diluted |
$ |
4.89 |
$ |
7.97 |
$ |
28.79 |
$ |
23.16 |
||||||||
Average shares outstanding: |
||||||||||||||||
Basic |
255,402 |
280,451 |
262,348 |
292,491 |
||||||||||||
Diluted |
255,838 |
281,046 |
263,176 |
293,390 |
Condensed Consolidated Balance Sheets (Unaudited) |
||||||||
(In thousands) |
||||||||
|
|
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
4,280,852 |
$ |
2,364,858 |
||||
Short-term investments |
576,946 |
253,005 |
||||||
Accounts receivable, net |
3,591,030 |
3,853,972 |
||||||
Inventories, net |
5,453,531 |
6,011,182 |
||||||
Other current assets |
789,325 |
316,540 |
||||||
Total current assets |
14,691,684 |
12,799,557 |
||||||
Property, plant and equipment, net |
9,616,920 |
8,114,818 |
||||||
Restricted cash and cash equivalents |
80,368 |
143,800 |
||||||
|
3,920,060 |
2,827,344 |
||||||
Other intangible assets, net |
3,322,265 |
1,103,759 |
||||||
Other assets |
847,913 |
833,794 |
||||||
Total assets |
$ |
32,479,210 |
$ |
25,823,072 |
||||
LIABILITIES |
||||||||
Current liabilities: |
||||||||
Short-term debt |
$ |
49,081 |
$ |
107,723 |
||||
Current portion of long-term debt and finance lease obligations |
28,582 |
615,678 |
||||||
Accounts payable |
1,649,523 |
1,974,041 |
||||||
Salaries, wages and related accruals |
1,654,210 |
1,495,166 |
||||||
Accrued expenses and other current liabilities |
948,348 |
964,805 |
||||||
Total current liabilities |
4,329,744 |
5,157,413 |
||||||
Long-term debt and finance lease obligations due after one year |
6,613,687 |
4,961,410 |
||||||
Deferred credits and other liabilities |
1,965,873 |
1,100,455 |
||||||
Total liabilities |
12,909,304 |
11,219,278 |
||||||
EQUITY |
||||||||
|
||||||||
Common stock |
152,061 |
152,061 |
||||||
Additional paid-in capital |
2,143,520 |
2,140,608 |
||||||
Retained earnings |
24,754,873 |
17,674,100 |
||||||
Accumulated other comprehensive loss, net of income taxes |
(137,517) |
(115,282) |
||||||
|
(8,498,243) |
(5,835,098) |
||||||
Total |
18,414,694 |
14,016,389 |
||||||
Noncontrolling interests |
1,155,212 |
587,405 |
||||||
Total equity |
19,569,906 |
14,603,794 |
||||||
Total liabilities and equity |
$ |
32,479,210 |
$ |
25,823,072 |
Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
(In thousands) |
||||||||
Twelve Months (52 Weeks) Ended |
||||||||
|
|
|||||||
Operating activities: |
||||||||
Net earnings |
$ |
8,079,640 |
$ |
7,122,370 |
||||
Adjustments: |
||||||||
Depreciation |
826,692 |
735,406 |
||||||
Amortization |
234,942 |
129,157 |
||||||
Stock-based compensation |
136,834 |
135,775 |
||||||
Deferred income taxes |
(46,849) |
11,665 |
||||||
Distributions from affiliates |
57,071 |
200 |
||||||
Equity in earnings of unconsolidated affiliates |
(10,714) |
(103,068) |
||||||
Losses and impairments of assets |
101,756 |
62,161 |
||||||
Changes in assets and liabilities (exclusive of acquisitions and dispositions): |
||||||||
Accounts receivable |
501,225 |
(1,392,084) |
||||||
Inventories |
962,424 |
(2,307,336) |
||||||
Accounts payable |
(496,234) |
383,428 |
||||||
Federal income taxes |
(337,359) |
313,679 |
||||||
Salaries, wages and related accruals |
155,005 |
997,034 |
||||||
Other operating activities |
(92,379) |
142,389 |
||||||
Cash provided by operating activities |
10,072,054 |
6,230,776 |
||||||
Investing activities: |
||||||||
Capital expenditures |
(1,947,897) |
(1,621,989) |
||||||
Investment in and advances to affiliates |
(258) |
(237) |
||||||
Sale of business |
99,681 |
- |
||||||
Disposition of plant and equipment |
32,277 |
19,401 |
||||||
Acquisitions (net of cash acquired) |
(3,553,191) |
(1,426,424) |
||||||
Purchase of investments |
(913,898) |
(493,889) |
||||||
Proceeds from the sale of investments |
590,173 |
648,887 |
||||||
Other investing activities |
(9,596) |
399 |
||||||
Cash used in investing activities |
(5,702,709) |
(2,873,852) |
||||||
Financing activities: |
||||||||
Net change in short-term debt |
(58,642) |
49,817 |
||||||
Proceeds from issuance of long-term debt, net of discount |
2,091,934 |
196,990 |
||||||
Repayment of long-term debt |
(1,111,000) |
- |
||||||
Bond issuance related costs |
(13,138) |
- |
||||||
Proceeds from exercise of stock options |
22,852 |
145,255 |
||||||
Payment of tax withholdings on certain stock-based compensation |
(64,079) |
(73,260) |
||||||
Distributions to noncontrolling interests |
(332,293) |
(150,700) |
||||||
Cash dividends |
(533,589) |
(483,469) |
||||||
Acquisition of treasury stock |
(2,762,568) |
(3,276,088) |
||||||
Proceeds from government incentives |
275,000 |
- |
||||||
Other financing activities |
(25,340) |
(11,424) |
||||||
Cash used in financing activities |
(2,510,863) |
(3,602,879) |
||||||
Effect of exchange rate changes on cash |
(5,920) |
(316) |
||||||
Increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents |
1,852,562 |
(246,271) |
||||||
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 year |
$ |
4,361,220 |
$ |
2,508,658 |
||||
Non-cash investing activity: |
||||||||
Change in accrued plant and equipment purchases |
$ |
4,568 |
$ |
78,375 |
View original content:https://www.prnewswire.com/news-releases/nucor-reports-record-annual-earnings-for-2022-301731194.html
SOURCE
For Investor/Analyst Inquiries - Jack Sullivan, 704-264-8942, or Paul Donnelly, 704-264-8807; For Media Inquiries - Katherine Miller, 704-353-9015