01—Abstract
Summary
Summary of the 10-Q filed May 8, 2024. Cited figures are marked; the original filing is the authoritative source.
Nucor Corporation's Form 10-Q for the quarter ended March 30, 2024 reports net sales of $8.14 billiona, down 7% from $8.71 billion in the first quarter of 2023, and net earnings attributable to Nucor stockholders of $844.8 million, or $3.46 per diluted share, compared with $1.14 billion, or $4.45 per diluted share, a year earlier.
The filing attributes the earnings decline primarily to the steel products segment, where earnings fell from $970.8 million to $511.6 millionb before taxes and noncontrolling interests, with the largest drop at the joist and deck businesses. Steel mills segment earnings rose to $1.10 billion from $838.4 million on higher average selling prices and metal margins, while raw materials earnings fell to $9.6 million from $58.1 million. Management expects second-quarter 2024 earnings to decrease from the first quarter, mainly due to lower steel mills selling prices.
Cash provided by operating activities was $459.7 millionc, versus $1.21 billion a year earlier, as working capital changes used $794.1 million. Capital expenditures were $670.3 million in the quarter, and management estimates full-year 2024 capital expenditures of approximately $3.5 billion, compared with $2.2 billion in 2023.
Cash, cash equivalents, short-term investments and restricted cash totaled $5.54 billiond at March 30, 2024, down from $7.13 billion at year-end 2023, and the company repurchased $1.00 billion of its stock during the quarter. Nucor's $1.75 billion revolving credit facility remained undrawn, and the company declared a quarterly dividend of $0.54 per share.
02—Key points
Key Highlights
- Net sales of $8.14 billion, down 7% from $8.71 billion in Q1 2023; average sales price per ton fell 3% to $1,307.
- Net earnings attributable to Nucor stockholders of $844.8 million ($3.46 diluted EPS), versus $1.14 billion ($4.45 diluted EPS) in Q1 2023.
- Steel products segment earnings before taxes fell to $511.6 million from $970.8 million, driven by lower selling prices and volumes at joist and deck businesses.
- Steel mills segment earnings before taxes rose to $1.10 billion from $838.4 million on higher average selling prices and metal margins.
- Operating cash flow fell to $459.7 million from $1.21 billion, with accounts payable and salaries and wages accruals as the main working capital outflows.
- Capital expenditures of $670.3 million in Q1 2024; full-year 2024 capital expenditures estimated at approximately $3.5 billion versus $2.2 billion in 2023.
- Management expects Q2 2024 earnings to decrease from Q1 2024, primarily due to lower steel mills selling prices, and the company repurchased $1.00 billion of stock in the quarter.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 8, 2024Financial Statements
| Revenue | $8.14B |
| Cost of Revenue | $6.61B |
| Gross Profit | $1.52B |
| SG&A Expenses | $345.00M |
| Interest Expense | $43.00M |
| Net Income | $845.00M |
| EPS (Basic) | $3.46 |
| EPS (Diluted) | $3.46 |
| Shares Outstanding (Basic) | 243.10M |
| Shares Outstanding (Diluted) | 243.50M |
05—Questions
Frequently Asked Questions
Why did Nucor's earnings decline in the first quarter of 2024?
The filing states the primary driver was decreased profitability in the steel products segment, which has moderated from historically high levels over the last three years. The largest decline was at the joist and deck businesses, where selling prices fell. Earnings in the raw materials segment also declined, due to margin compression at scrap processing and lower DRI facility profitability, partially offset by higher steel mills profitability.
What is management's outlook for the second quarter of 2024?
Management expects earnings in the second quarter of 2024 to decrease compared with the first quarter. The largest driver is expected lower steel mills earnings from lower average selling prices, partially offset by modestly higher volumes. Steel products earnings are expected to decline moderately, while raw materials earnings are expected to increase on higher DRI and scrap processing profitability. Management also expects steel products selling prices to stabilize approaching the second half of 2024.
How much cash does Nucor have and how is it being used?
Cash, cash equivalents, short-term investments and restricted cash totaled $5.54 billion at March 30, 2024, down from $7.13 billion at December 31, 2023. Uses in the quarter included $670.3 million of capital expenditures, $1.00 billion of stock repurchases, $265.4 million of distributions to noncontrolling interests and $133.6 million of cash dividends. The company's $1.75 billion revolving credit facility had no borrowings outstanding.
What is Nucor's capital spending plan for 2024?
Capital expenditures for 2024 are estimated at approximately $3.5 billion, compared with $2.2 billion in 2023. The largest projects are the sheet mill expansion in Indiana, the sheet mill under construction in West Virginia, the rebar micro mill under construction in North Carolina, and two manufacturing locations to expand Nucor Towers & Structures. The filing says the plate mill in Kentucky was also a focus of first-quarter spending.
How much has Nucor returned to shareholders?
In the first quarter of 2024, Nucor repurchased $1.00 billion of its stock, compared with $425.8 million in the first quarter of 2023, and paid cash dividends of $133.6 million. The company declared a quarterly dividend of $0.54 per share payable May 10, 2024, its 204th consecutive quarterly cash dividend. As of March 30, 2024, approximately $2.32 billion remained available under the $4.00 billion share repurchase program.
06—Continue