How did Nucor's profitability change in the fourth quarter and full year 2023?

Net earnings attributable to Nucor stockholders were $785.4 million ($3.16 per diluted share) in Q4 2023, versus $1.14 billion ($4.57) in Q3 2023 and $1.26 billion ($4.89) in Q4 2022. For full year 2023, net earnings were $4.52 billion ($18.00 per diluted share), down from $7.61 billion ($28.79) in 2022. The filing attributes the sequential decline to lower pricing and volumes across all three operating segments.

What drove the decline in Nucor's sales?

Q4 2023 net sales fell 12% to $7.70 billion, with average sales price per ton down 8% sequentially and 15% year over year, and outside-customer tons down 5% sequentially. Full-year net sales declined 16% to $34.71 billion, while total tons shipped to outside customers fell about 1% and the average sales price per ton fell 15%.

What does Nucor expect for the first quarter of 2024?

Nucor expects first-quarter 2024 earnings to increase compared with Q4 2023. Steel mills earnings are expected to rise on higher average selling prices and volumes, particularly at sheet mills. Steel products earnings are expected to decrease on lower average selling prices, while raw materials earnings are expected to increase on higher profitability at the direct reduced iron facilities and scrap processing operations.

How is Nucor returning capital to shareholders and funding growth?

The board declared a $0.54 per share cash dividend, a 6% increase, payable February 9, 2024. Nucor repurchased about 9.75 million shares in 2023 at an average of $159.34, and approximately $3.32 billion remained authorized for repurchases. The company returned about $2.1 billion to stockholders in 2023 and expects 2024 capital expenditures of about $3.5 billion, along with continued acquisition evaluation and share repurchases that the release says will outpace the prior year.

How strong is Nucor's balance sheet and liquidity position?

At the end of Q4 2023, Nucor had $7.13 billion in total liquidity, excluding its $1.75 billion revolving credit facility. The company holds A-/A-/Baa1 credit ratings from Standard & Poor's, Fitch Ratings and Moody's, each with a stable outlook. Cash and cash equivalents were $6.38 billion at December 31, 2023, and total liabilities were $13.22 billion against total assets of $35.34 billion.

NUE 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed January 29, 2024. Cited figures are marked; the original filing is the authoritative source.

Nucor Corporation reported consolidated net earnings attributable to Nucor stockholders of $785.4 million^a, or $3.16 per diluted share, for the fourth quarter of 2023, compared with $1.14 billion, or $4.57 per diluted share, in the third quarter of 2023 and $1.26 billion, or $4.89 per diluted share, in the fourth quarter of 2022.

For full year 2023, net earnings were $4.52 billion^b, or $18.00 per diluted share, versus $7.61 billion, or $28.79 per diluted share, in 2022. Consolidated net sales fell 12% to $7.70 billion in the fourth quarter compared with the prior quarter and the prior-year quarter, and full-year net sales declined 16% to $34.71 billion. The company's chair and CEO described 2023 as the third-most profitable year in Nucor's history.

The quarter showed lower pricing and volumes across all three segments. Steel mills earnings before taxes were $587.9 million^c, steel products $655.6 million, and raw materials negative $14.4 million. Average sales price per ton fell 8% sequentially and 15% year over year, and average scrap cost per gross ton fell to $397.

Pre-tax growth project start-up costs were approximately $127 million^d in the quarter and $400 million for the year. Management expects first-quarter 2024 earnings to rise versus the fourth quarter, led by the steel mills segment on higher selling prices and volumes, while steel products is expected to decline on lower selling prices. Capital deployment remains active.

The board declared a $0.54 per share dividend, a 6% increase, and the company repurchased about 9.75 million shares for the full year at an average of $159.34. Nucor ended 2023 with $7.13 billion in total liquidity, excluding a $1.75 billion revolving credit facility, and holds A-/A-/Baa1 credit ratings with stable outlooks. The investor presentation projects 2024 capital expenditures of about $3.5 billion.

02—Key points

Key Highlights

Q4 2023 diluted EPS of $3.16, down from $4.57 in Q3 2023 and $4.89 in Q4 2022; full-year 2023 diluted EPS of $18.00 versus $28.79 in 2022.
Q4 2023 net sales of $7.70 billion, down 12% sequentially and year over year; full-year net sales of $34.71 billion, down 16%.
Average sales price per ton fell 8% from Q3 2023 and 15% from Q4 2022; average scrap cost per gross ton was $397 in Q4 2023 versus $427 in Q4 2022.
Segment earnings before taxes in Q4 2023: steel mills $587.9 million, steel products $655.6 million, raw materials negative $14.4 million.
Q1 2024 outlook calls for consolidated earnings above Q4 2023, driven by higher steel mills profitability, partly offset by lower steel products earnings.
Capital returns: quarterly dividend raised 6% to $0.54 per share; about $2.1 billion returned to stockholders in 2023 through repurchases and dividends; $3.32 billion remained under the repurchase authorization.
Liquidity of $7.13 billion at year-end 2023, with 2024 projected capital expenditures of about $3.5 billion.

03—Questions

Frequently Asked Questions

How did Nucor's profitability change in the fourth quarter and full year 2023?
Net earnings attributable to Nucor stockholders were $785.4 million ($3.16 per diluted share) in Q4 2023, versus $1.14 billion ($4.57) in Q3 2023 and $1.26 billion ($4.89) in Q4 2022. For full year 2023, net earnings were $4.52 billion ($18.00 per diluted share), down from $7.61 billion ($28.79) in 2022. The filing attributes the sequential decline to lower pricing and volumes across all three operating segments.
What drove the decline in Nucor's sales?
Q4 2023 net sales fell 12% to $7.70 billion, with average sales price per ton down 8% sequentially and 15% year over year, and outside-customer tons down 5% sequentially. Full-year net sales declined 16% to $34.71 billion, while total tons shipped to outside customers fell about 1% and the average sales price per ton fell 15%.
What does Nucor expect for the first quarter of 2024?
Nucor expects first-quarter 2024 earnings to increase compared with Q4 2023. Steel mills earnings are expected to rise on higher average selling prices and volumes, particularly at sheet mills. Steel products earnings are expected to decrease on lower average selling prices, while raw materials earnings are expected to increase on higher profitability at the direct reduced iron facilities and scrap processing operations.
How is Nucor returning capital to shareholders and funding growth?
The board declared a $0.54 per share cash dividend, a 6% increase, payable February 9, 2024. Nucor repurchased about 9.75 million shares in 2023 at an average of $159.34, and approximately $3.32 billion remained authorized for repurchases. The company returned about $2.1 billion to stockholders in 2023 and expects 2024 capital expenditures of about $3.5 billion, along with continued acquisition evaluation and share repurchases that the release says will outpace the prior year.
How strong is Nucor's balance sheet and liquidity position?
At the end of Q4 2023, Nucor had $7.13 billion in total liquidity, excluding its $1.75 billion revolving credit facility. The company holds A-/A-/Baa1 credit ratings from Standard & Poor's, Fitch Ratings and Moody's, each with a stable outlook. Cash and cash equivalents were $6.38 billion at December 31, 2023, and total liabilities were $13.22 billion against total assets of $35.34 billion.

04—Continue

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