01—Abstract
Summary
Summary of the 8-K filed October 21, 2024. Cited figures are marked; the original filing is the authoritative source.
Nucor Corporation (NYSE: NUE) reported third-quarter 2024 results for the quarter ended September 28, 2024, in a news release and accompanying investor presentation furnished under Items 2.02 and 7.01 of this Form 8-K.
Consolidated net earnings attributable to Nucor stockholders were $249.9 milliona, or $1.05 per diluted share, compared with $645.2 million, or $2.68 per diluted share, in the second quarter of 2024 and $1.14 billion, or $4.57 per diluted share, in the third quarter of 2023. Excluding non-cash impairment charges of $123.0 million ($0.44 per diluted share), adjusted net earnings attributable to Nucor stockholders were $353.0 million, or $1.49 per diluted share. Net sales were $7.44 billion, down 8% from the prior quarter and down 15% from the third quarter of 2023, with average sales price per ton down 6% sequentially.
The steel mills segment's earnings before income taxes and noncontrolling interests fell to $309.1 millionb from $645 million in the second quarter, driven mainly by lower average selling prices, while the steel products segment earned $314.0 million and the raw materials segment posted a loss of $66.3 million, including an $83.0 million impairment. Management guided that fourth-quarter 2024 consolidated earnings attributable to Nucor stockholders will decrease from the $1.05 per diluted share reported for the third quarter, citing lower average selling prices and decreased volumes in the steel mills and steel products segments. The company reported $4.86 billion in cash and short-term investments, an undrawn $1.75 billion revolving credit facility, and approximately $1.42 billion remaining under its share repurchase authorization, and declared a quarterly dividend of $0.54 per share payable November 8, 2024.
02—Key points
Key Highlights
- Diluted EPS of $1.05 GAAP and $1.49 adjusted (excluding $0.44 per share of non-cash impairment charges), versus $4.57 GAAP diluted EPS in Q3 2023.
- Net sales of $7.44 billion, down 15% year over year, with average sales price per ton down 15% compared with the third quarter of 2023.
- Steel mills segment pre-tax earnings of $309.1 million, down from $645 million in Q2 2024 on lower average selling prices; steel products earned $314.0 million, including a $40.0 million impairment.
- Raw materials segment reported a pre-tax loss of $66.3 million, including an $83.0 million non-cash impairment of certain non-current assets.
- Q4 2024 outlook calls for lower consolidated earnings versus Q3, with lower steel mills and steel products prices and volumes, partly offset by expected stable raw materials earnings and lower intercompany eliminations.
- Cash from operations of over $1.30 billion in the quarter; $4.86 billion in cash and short-term investments; undrawn $1.75 billion revolver expiring November 2026.
- Returned approximately $2.29 billion to stockholders in the first nine months of 2024 through buybacks and dividends; quarterly dividend of $0.54 per share declared, the 206th consecutive quarterly cash dividend.
03—Questions
Frequently Asked Questions
Why did Nucor's earnings decline in the third quarter of 2024?
The release identifies the largest driver as decreased earnings in the steel mills segment, due primarily to lower average selling prices. Steel products earnings also fell on lower average selling prices and lower volumes, and the raw materials segment was affected by a non-cash impairment charge taken in the quarter.
What did Nucor guide for the fourth quarter of 2024?
Nucor expects consolidated net earnings attributable to Nucor stockholders in the fourth quarter of 2024 to decrease compared with the $1.05 per diluted share reported for the third quarter. The steel mills and steel products segments are expected to see lower average selling prices and decreased volumes, while raw materials earnings are expected to increase (excluding the third-quarter impairment).
What were the impairment charges and how do they affect adjusted results?
Losses and impairments of assets totaled $123.0 million in the third quarter, including non-cash charges of $83.0 million ($0.27 per diluted share) in raw materials and $40.0 million ($0.17 per diluted share) in steel products. Excluding these charges, adjusted net earnings attributable to Nucor stockholders were $353.0 million, or $1.49 per diluted share.
How strong is Nucor's balance sheet and capital return position?
As of September 28, 2024, Nucor had $4.86 billion in cash and short-term investments, and its $1.75 billion revolving credit facility was undrawn. Nucor repurchased about 2.5 million shares in the quarter at an average of $156.07 per share, had about $1.42 billion remaining under its repurchase authorization, and declared a $0.54 quarterly dividend payable November 8, 2024.
04—Continue