How did Nucor's second-quarter 2024 earnings compare with prior periods?

Net earnings attributable to Nucor stockholders were $645.2 million, or $2.68 per diluted share, in Q2 2024. This compares with $844.8 million, or $3.46 per diluted share, in Q1 2024 and $1.46 billion, or $5.81 per diluted share, in Q2 2023. For the first six months of 2024, earnings were $1.49 billion, or $6.14 per diluted share, versus $2.60 billion, or $10.26 per diluted share, in the first six months of 2023.

What drove the decline in earnings during the quarter?

Management said the largest driver of the sequential decrease was lower earnings at the steel mills segment, primarily due to lower average selling prices and, to a lesser extent, lower volumes. The steel products segment also had lower earnings because of lower average selling prices, partially offset by higher volumes. Raw materials earnings increased on higher profitability at its direct reduced iron facilities.

What is the company's outlook for the third quarter of 2024?

Nucor expects third-quarter 2024 earnings to decrease compared with the second quarter. The largest expected driver is lower steel mills earnings, primarily from lower average selling prices. Steel products earnings are also expected to decline on lower selling prices, and raw materials earnings are expected to decrease as well.

How is Nucor managing its balance sheet and returning capital to shareholders?

Nucor reported $5.43 billion in cash, cash equivalents and short-term investments and an undrawn $1.75 billion revolving credit facility. Its credit ratings are A-/A-/Baa1, with stable outlooks at S&P and Fitch and a positive outlook at Moody's. In Q2 2024 the company repurchased approximately 2.9 million shares, and it declared a $0.54 per share dividend payable August 9, 2024, its 205th consecutive quarterly cash dividend.

NUE 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed July 22, 2024. Cited figures are marked; the original filing is the authoritative source.

Nucor Corporation reported second-quarter 2024 results for the quarter ended June 29, 2024, in a news release furnished as Exhibit 99.1.

Net earnings attributable to Nucor stockholders were $645.2 million^a, or $2.68 per diluted share, compared with $844.8 million, or $3.46 per diluted share, in the first quarter of 2024 and $1.46 billion, or $5.81 per diluted share, in the second quarter of 2023. Net sales were $8.08 billion, down 1% from the first quarter and down 15% from the second quarter of 2023. Management attributed the sequential decline mainly to lower average selling prices in the steel mills segment, with the steel products segment also affected by lower selling prices.

Average selling price per ton fell 2% sequentially and 11% year over year, and steel mill operating rates decreased to 75% from 82% in the first quarter. For the first six months of 2024, net earnings attributable to Nucor stockholders were $1.49 billion^b, or $6.14 per diluted share, versus $2.60 billion, or $10.26 per diluted share, a year earlier. Pre-operating and start-up costs for growth projects were approximately $137 million, or $0.43 per diluted share, in the second quarter.

Nucor ended the quarter with $5.43 billion^c in cash, cash equivalents and short-term investments, an undrawn $1.75 billion revolving credit facility, and credit ratings of A-/A-/Baa1. The company repurchased approximately 2.9 million shares in the quarter and declared a $0.54 per share dividend, its 205th consecutive quarterly cash dividend. Management expects third-quarter 2024 earnings to decrease from the second quarter, primarily because of lower average selling prices at the steel mills and steel products segments.

The accompanying investor presentation, furnished as Exhibit 99.2, describes the pending Rytec acquisition and the completed Southwest Data Products acquisition, which Nucor is positioning as part of its growth strategy in downstream markets. The company scheduled its earnings conference call for July 23, 2024.

02—Key points

Key Highlights

Q2 2024 net earnings attributable to Nucor stockholders of $645.2 million, or $2.68 per diluted share, versus $844.8 million, or $3.46 per diluted share, in Q1 2024 and $1.46 billion, or $5.81 per diluted share, in Q2 2023.
Q2 2024 net sales of $8.08 billion, down 1% sequentially and down 15% year over year; average sales price per ton fell 2% sequentially and 11% year over year.
Steel mill operating rates decreased to 75% in Q2 2024 from 82% in Q1 2024 and 84% in Q2 2023.
Pre-operating and start-up costs for growth projects were approximately $137 million, or $0.43 per diluted share, in Q2 2024.
Ended the quarter with $5.43 billion in cash, cash equivalents and short-term investments; the $1.75 billion revolving credit facility remains undrawn and matures in November 2026.
Repurchased approximately 2.9 million shares in Q2 2024 at an average price of $170.70; $1.82 billion remained authorized for repurchases as of June 29, 2024.
Management guides to lower Q3 2024 earnings versus Q2, driven mainly by lower average selling prices in the steel mills segment.

03—Questions

Frequently Asked Questions

How did Nucor's second-quarter 2024 earnings compare with prior periods?
Net earnings attributable to Nucor stockholders were $645.2 million, or $2.68 per diluted share, in Q2 2024. This compares with $844.8 million, or $3.46 per diluted share, in Q1 2024 and $1.46 billion, or $5.81 per diluted share, in Q2 2023. For the first six months of 2024, earnings were $1.49 billion, or $6.14 per diluted share, versus $2.60 billion, or $10.26 per diluted share, in the first six months of 2023.
What drove the decline in earnings during the quarter?
Management said the largest driver of the sequential decrease was lower earnings at the steel mills segment, primarily due to lower average selling prices and, to a lesser extent, lower volumes. The steel products segment also had lower earnings because of lower average selling prices, partially offset by higher volumes. Raw materials earnings increased on higher profitability at its direct reduced iron facilities.
What is the company's outlook for the third quarter of 2024?
Nucor expects third-quarter 2024 earnings to decrease compared with the second quarter. The largest expected driver is lower steel mills earnings, primarily from lower average selling prices. Steel products earnings are also expected to decline on lower selling prices, and raw materials earnings are expected to decrease as well.
How is Nucor managing its balance sheet and returning capital to shareholders?
Nucor reported $5.43 billion in cash, cash equivalents and short-term investments and an undrawn $1.75 billion revolving credit facility. Its credit ratings are A-/A-/Baa1, with stable outlooks at S&P and Fitch and a positive outlook at Moody's. In Q2 2024 the company repurchased approximately 2.9 million shares, and it declared a $0.54 per share dividend payable August 9, 2024, its 205th consecutive quarterly cash dividend.

04—Continue

← View all 8-K filings