NUE
$166.31
Nucor
($.87)
(.52%)
Earnings Details
Quarter December 2022
Thursday, January 26, 2023 8:00:00 AM
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Summary

Nucor Beats

Nucor (NUE) reported Quarter December 2022 earnings of $4.89 per share on revenue of $8.7 billion. The consensus earnings estimate was $4.18 per share on revenue of $8.5 billion. The Earnings Whisper number was $4.35 per share. Revenue fell 15.8% compared to the same quarter a year ago.

Nucor Corp and its affiliates are manufacturer of steel and steel products. It also produces direct reduced iron for use in the Company’s steel mills.

Results
Reported Earnings
$4.89
Earnings Whisper
$4.35
Consensus Estimate
$4.18
Reported Revenue
$8.72 Bil
Revenue Estimate
$8.48 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Nucor Reports Record Annual Earnings for 2022

  • Nucor reports safest and most profitable year in Company history, eclipsing prior records set in 2021
  • Fourth quarter and full year 2022 earnings per diluted share of $4.89 and $28.79, respectively
  • Returned $3.3 billion of capital to stockholders through dividends and share repurchases
  • Announced increased dividend for 50th consecutive year since initial NYSE listing in 1972

CHARLOTTE, N.C., Jan. 26, 2023 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) today announced consolidated net earnings of $1.26 billion, or $4.89 per diluted share, for the fourth quarter of 2022. By comparison, Nucor reported consolidated net earnings of $1.69 billion, or $6.50 per diluted share, for the third quarter of 2022 and $2.25 billion, or $7.97 per diluted share, for the fourth quarter of 2021.

For the full year 2022, Nucor reported record consolidated net earnings of $7.61 billion, or $28.79 per diluted share, surpassing the previous record of consolidated net earnings of $6.83 billion, or $23.16 per diluted share, in 2021.

Included in the fourth quarter of 2022 results was an after-tax net benefit of $60.4 million, or $0.24 per diluted share, related to state tax credits and an after-tax net benefit of $88.0 million, or $0.34 per diluted share, related to a change in the valuation allowance of a state deferred tax asset. Also included in the fourth quarter of 2022 results was a pre-tax $96.0 million, or $0.29 per diluted share, write-off of the remaining carrying value of the Company's leasehold interest in unproved oil and gas properties that is included in the raw materials segment. Of these three items, only the state tax credits were known at the time and considered as part of our quantitative guidance in mid-December 2022.

"I am proud to report that 2022 was both the safest and most profitable year in Nucor history. This is the fourth consecutive year the Nucor team has exhibited record-breaking safety performance, as we strive to become the world's safest steel company," said Leon Topalian, Nucor's Chair, President, and Chief Executive Officer.

"In terms of profitability for the year, Nucor generated consolidated net earnings of $7.61 billion, or $28.79 per diluted share, which exceeds our previous record of $23.16 per diluted share, set in 2021, by 24%. These records are a testament of the world class performance of the 31,000 Nucor teammates that live our culture every single day.  Looking ahead to 2023, while we recognize there is uncertainty about the near-term U.S. economic outlook, we're starting to see a number of demand drivers gathering momentum, including the reshoring of manufacturing, large infrastructure investments and grid modernization. We believe Nucor's steel and steel products with lower greenhouse gas intensity will be essential building blocks to our nation's clean energy future, security, and productivity for years to come."

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




Dec. 31, 2022



Dec. 31, 2021



Dec. 31, 2022



Dec. 31, 2021


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
Nucor's consolidated net sales decreased 17% to $8.72 billion in the fourth quarter of 2022 compared with $10.50 billion in the third quarter of 2022 and decreased 16% compared with $10.36 billion in the fourth quarter of 2021. Average sales price per ton in the fourth quarter of 2022 decreased 7% compared with the third quarter of 2022 and decreased 6% compared with the fourth quarter of 2021. Approximately 5,738,000 tons were shipped to outside customers in the fourth quarter of 2022, an 11% decrease from both the third quarter of 2022 and the fourth quarter of 2021. Total steel mill shipments in the fourth quarter of 2022 decreased 13% as compared to both the third quarter of 2022 and the fourth quarter of 2021. Steel mill shipments to internal customers represented 20% of total steel mill shipments in the fourth quarter of 2022, a decrease compared to 22% in both the third quarter of 2022 and the fourth quarter of 2021. Downstream steel product shipments to outside customers in the fourth quarter of 2022 decreased 9% from the third quarter of 2022 and increased 2% compared to the fourth quarter of 2021.

For the full year 2022, Nucor's consolidated net sales of $41.51 billion increased 14% compared with consolidated net sales of $36.48 billion reported in the full year 2021. Total tons shipped to outside customers in 2022 were approximately 25,524,000 tons, a decrease of 10% from 2021, while the average sales price per ton in 2022 increased 26% from 2021.

The average scrap and scrap substitute cost per gross ton used in the fourth quarter of 2022 was $427, a 15% decrease compared to $502 in the third quarter of 2022 and a 16% decrease compared to $508 in the fourth quarter of 2021. The average scrap and scrap substitute cost per gross ton used in the full year 2022 was $492, a 5% increase compared to $469 in the full year 2021.

Pre-tax pre-operating and start-up costs related to the Company's growth projects were approximately $73 million, or $0.22 per diluted share, in the fourth quarter of 2022, compared with approximately $52 million, or $0.15 per diluted share, in the third quarter of 2022 and approximately $54 million, or $0.15 per diluted share, in the fourth quarter of 2021.

In the full year 2022, pre-tax pre-operating and start-up costs related to the Company's growth projects were approximately $247 million, or $0.71 per diluted share, compared with approximately $130 million, or $0.34 per diluted share, in the full year 2021.

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, Nucor had $4.94 billion in cash and cash equivalents, short-term investments and restricted cash and cash equivalents on hand. The Company's $1.75 billion revolving credit facility remains undrawn and does not expire until November 2026Nucor continues to have the strongest credit rating in the North American steel sector with unchanged long-term senior unsecured ratings from Moody's (Baa1) and Standard & Poor's (A-). On January 24, 2023, Fitch Ratings initiated coverage of Nucor and established new long-term and short-term credit ratings of A- and F1, respectively.  Nucor's credit rating outlook from all three rating agencies is stable.

Commitment to Returning Capital to Stockholders
On December 14, 2022, Nucor's Board of Directors declared a cash dividend of $0.51 per share. This cash dividend is payable on February 10, 2023 to stockholders of record as of December 30, 2022 and is Nucor's 199th consecutive quarterly cash dividend. Nucor has increased its regular, or base, dividend for 50 consecutive years – every year since it first began paying dividends in 1973.

During the fourth quarter of 2022, Nucor repurchased approximately 3.1 million shares of its common stock at an average price of $130.30 per share (approximately 20.6 million shares in the full year 2022 at an average price of $134.29 per share). As of December 31, 2022, Nucor had approximately 253.0 million shares outstanding and approximately $1.10 billion remaining available for repurchases under its share repurchase program. This share repurchase authorization is discretionary and has no scheduled expiration date.

For the full year 2022, Nucor returned approximately $3.3 billion to stockholders in the form of share repurchases and dividend payments, consistent with the Company's capital allocation strategy of returning at least 40% of earnings to stockholders.

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 January 26, 2023 at 2 pm Eastern Time to review Nucor's fourth-quarter and full year 2022 financial results and business update. The call can be accessed via webcast from the Investor Relations section of Nucor's website (nucor.com/investors). A presentation with supplemental information to accompany the call has been posted to Nucor's Investor Relations website   A recording and transcript of the call will be posted to the same site within one day of the live event. 

About Nucor
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company and its affiliates, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.

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) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to general market conditions, and in particular, prevailing market steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) the availability and cost of electricity and natural gas, which could negatively affect our cost of steel production or result in a delay or cancellation of existing or future drilling within our natural gas drilling programs; (5) critical equipment failures and business interruptions; (6) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the United States; (7) impairment in the recorded value of inventory, equity investments, fixed assets, goodwill or other long-lived assets; (8) uncertainties and volatility surrounding the global economy, including excess world capacity for steel production, inflation and interest rate changes; (9) fluctuations in currency conversion rates; (10) significant changes in laws or government regulations affecting environmental compliance, including legislation and regulations that result in greater regulation of greenhouse gas emissions that could increase our energy costs, capital expenditures and operating costs or cause one or more of our permits to be revoked or make it more difficult to obtain permit modifications; (11) the cyclical nature of the steel industry; (12) capital investments and their impact on our performance; (13) our safety performance; (14) our ability to integrate businesses we acquire; and (15) the impact of the COVID-19 pandemic, any variants of the virus, and any other similar pandemic or public health situation. These and other factors are discussed in Nucor's regulatory filings with the United States Securities and Exchange Commission, including those in "Item 1A. Risk Factors" of Nucor's Annual Report on Form 10-K for the year ended December 31, 2021. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them, except as may be required by applicable law.

Tonnage Data

(In thousands)
















Three Months (13 Weeks) Ended


Twelve Months (52 Weeks) Ended



Dec. 31, 2022


Dec. 31, 2021


Percent
Change


Dec. 31, 2022


Dec. 31, 2021


Percent
Change

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




Dec. 31, 2022



Dec. 31, 2021



Dec. 31, 2022



Dec. 31, 2021


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 Nucor stockholders


$

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)













Dec. 31, 2022



Dec. 31, 2021


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


Goodwill



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









Nucor stockholders' 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)


Treasury stock



(8,498,243)




(5,835,098)


Total Nucor stockholders' equity



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




Dec. 31, 2022



Dec. 31, 2021


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


 

Cision View original content:https://www.prnewswire.com/news-releases/nucor-reports-record-annual-earnings-for-2022-301731194.html

SOURCE Nucor Corporation