NUE
$119.31
Nucor
$4.98
4.36%
Earnings Details
2nd Quarter June 2022
Thursday, July 21, 2022 8:00:00 AM
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Summary

Nucor Beats

Nucor (NUE) reported 2nd Quarter June 2022 earnings of $9.67 per share on revenue of $11.8 billion. The consensus earnings estimate was $8.91 per share on revenue of $11.8 billion. The Earnings Whisper number was $8.85 per share. Revenue grew 34.2% on a year-over-year basis.

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
$9.67
Earnings Whisper
$8.85
Consensus Estimate
$8.91
Reported Revenue
$11.79 Bil
Revenue Estimate
$11.78 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Nucor Reports Record Quarterly Earnings for the Second Quarter of 2022

CHARLOTTE, N.C., July 21, 2022 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) today announced record quarterly consolidated net earnings of $2.56 billion, or $9.67 per diluted share, for the second quarter of 2022. By comparison, Nucor reported consolidated net earnings of $2.10 billion, or $7.67 per diluted share, for the first quarter of 2022 and $1.51 billion, or $5.04 per diluted share, for the second quarter of 2021.  

In the first six months of 2022, Nucor reported consolidated net earnings of $4.66 billion, or $17.30 per diluted share, compared with consolidated net earnings of $2.45 billion, or $8.13 per diluted share, in the first six months of 2021.

"Nucor's second quarter earnings of $9.67 per diluted share and first half earnings of $17.30 per diluted share both represent new records. Nucor's differentiated business model is yielding exceptional results. I would like to congratulate our teammates for delivering world class performance in safety and profitability while providing exceptional customer service," said Leon Topalian, Nucor's President and Chief Executive Officer. "Our team is focused on delivering the safest and most profitable year in our history!"

Selected Segment Data

Earnings (loss) before income taxes and noncontrolling interests by segment for the second quarter and first six months of 2022 and 2021 were as follows (in thousands):










Three Months (13 Weeks) Ended



Six Months (26 Weeks) Ended




July 2, 2022



July 3, 2021



July 2, 2022



July 3, 2021


Steel mills


$

2,815,723



$

2,174,807



$

5,394,577



$

3,489,781


Steel products



1,129,932




259,330




1,814,799




471,142


Raw materials



263,598




120,143




359,451




343,378


Corporate/eliminations



(718,851)




(528,532)




(1,180,310)




(980,307)




$

3,490,402



$

2,025,748



$

6,388,517



$

3,323,994


Financial Review

Nucor's consolidated net sales increased 12% to $11.79 billion in the second quarter of 2022 compared with $10.49 billion in the first quarter of 2022 and increased 34% compared with $8.79 billion in the second quarter of 2021. Average sales price per ton in the second quarter of 2022 increased 3% compared with the first quarter of 2022 and increased 44% compared with the second quarter of 2021. A total of 6,977,000 tons were shipped to outside customers in the second quarter of 2022, a 9% increase from the first quarter of 2022 and a 7% decrease from the second quarter of 2021. Total steel mill shipments in the second quarter of 2022 increased 11% as compared to the first quarter of 2022 and decreased 4% as compared to the second quarter of 2021. Steel mill shipments to internal customers represented 22% of total steel mill shipments in the second quarter of 2022, compared with 22% in the first quarter of 2022 and 20% in the second quarter of 2021. Downstream steel product shipments to outside customers in the second quarter of 2022 increased 6% from the first quarter of 2022 and were similar to the second quarter of 2021.

In the first six months of 2022, Nucor's consolidated net sales of $22.29 billion were an increase of 41% compared with consolidated net sales of $15.81 billion reported in the first six months of 2021. Total tons shipped to outside customers in the first six months of 2022 were 13,371,000, a decrease of 9% from the first six months of 2021, while the average sales price per ton in the first six months of 2022 increased 55% from the first six months of 2021.

The average scrap and scrap substitute cost per gross ton used in the second quarter of 2022 was $534, an 8% increase compared to $495 in the first quarter of 2022 and a 17% increase compared to $457 in the second quarter of 2021. The average scrap and scrap substitute cost per gross ton used in the first six months of 2022 was $516, a 20% increase compared to $431 in the first six months of 2021.

Pre-operating and start-up costs related to the Company's growth projects were approximately $60 million, or $0.17 per diluted share, in the second quarter of 2022, compared with approximately $62 million, or $0.17 per diluted share, in the first quarter of 2022 and approximately $22 million, or $0.06 per diluted share, in the second quarter of 2021.

In the first six months of 2022, pre-operating and start-up costs related to the Company's growth projects were approximately $122 million, or $0.35 per diluted share, compared with approximately $41 million, or $0.10 per diluted share, in the first six months of 2021.

Overall operating rates at the Company's steel mills increased to 85% in the second quarter of 2022 as compared to 77% in the first quarter of 2022 and decreased compared to 97% in the second quarter of 2021. Operating rates in the first six months of 2022 decreased to 81% as compared to 96% in the first six months of 2021.

Financial Strength

At the end of the second quarter of 2022, we had $2.45 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 (Baa1/A-) with stable outlooks at both Moody's and Standard & Poor's.

Commitment to Returning Capital to Stockholders

During the second quarter of 2022, Nucor repurchased approximately 5.1 million shares of its common stock at an average price of $157.37 per share (12.1 million shares year-to-date at an average price of $140.59 per share). As of July 2, 2022, Nucor had approximately 262,000,000 shares outstanding and approximately $2.14 billion remaining for repurchases under its existing authorized share repurchase program. This share repurchase authorization is discretionary and has no scheduled expiration date.

On June 9, 2022, Nucor's board of directors declared a cash dividend of $0.50 per share. This cash dividend is payable on August 11, 2022 to stockholders of record as of June 30, 2022 and is Nucor's 197th consecutive quarterly cash dividend.

Second Quarter of 2022 Analysis

Second quarter earnings were driven by increased profitability in the steel products segment, which continued to benefit from robust demand in nonresidential construction markets. In addition, the steel mills segment earnings strengthened due primarily to increased profitability at our bar and plate mills. Similarly, Nucor's raw materials segment generated increased profits in the second quarter due to relatively higher selling prices for both direct reduced iron (DRI) and scrap. The second quarter also saw the closing of Nucor's acquisition of C.H.I. Overhead Doors, LLC.

Third Quarter of 2022 Outlook

As we enter the third quarter, demand remains stable and resilient across the major end-use markets we serve, and customer inventory levels appear right-sized relative to economic conditions.  Though we expect a decrease from the record-setting second quarter, we expect another strong quarter of profitability in the third quarter of 2022. We believe that 2022 will be the most profitable year in Nucor's history.

We expect the steel mills segment earnings to be sequentially lower in the third quarter of 2022, due to lower expected shipment volumes and average selling prices, particularly at our sheet and plate mills. The steel products segment is expected to have another very strong quarter in the third quarter of 2022, with earnings roughly in-line with the second quarter of 2022. Raw materials segment earnings are expected to improve in the third quarter of 2022 due to higher realized pricing at our DRI facilities.

Earnings Conference Call

You are invited to listen to the live broadcast of Nucor's conference call during which management will discuss Nucor's second quarter results on July 21, 2022 at 2:00 p.m. Eastern Time. The conference call will be available over the Internet at www.nucor.com, under Investors.

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 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 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 the operations of C.H.I. Overhead Doors, LLC and certain of its affiliates; and (15) the impact of the COVID-19 pandemic and any variants of the virus. 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



Six Months (26 Weeks) Ended




July 2, 2022



July 3, 2021



Percent
Change



July 2, 2022



July 3, 2021



Percent
Change


Steel mills total shipments:

























Sheet



2,934




2,913




1

%



5,319




5,840




-9

%

Bars



2,273




2,423




-6

%



4,559




4,742




-4

%

Structural



624




681




-8

%



1,264




1,304




-3

%

Plate



474




599




-21

%



872




1,195




-27

%

Other



143




118




21

%



248




197




26

%




6,448




6,734




-4

%



12,262




13,278




-8

%


























Sales tons to outside customers:

























Steel mills



5,041




5,356




-6

%



9,580




10,546




-9

%

Joist



158




167




-5

%



337




339




-1

%

Deck



123




130




-5

%



259




265




-2

%

Cold finished



123




128




-4

%



256




260




-2

%

Rebar fabrication products



339




338




0

%



630




620




2

%

Piling



119




171




-30

%



230




307




-25

%

Tubular products



274




269




2

%



504




519




-3

%

Other steel products



175




109




61

%



330




209




58

%

Raw materials



625




814




-23

%



1,245




1,593




-22

%




6,977




7,482




-7

%



13,371




14,658




-9

%


























 

Condensed Consolidated Statements of Earnings (Unaudited)


(In thousands, except per share data)






Three Months (13 Weeks) Ended



Six Months (26 Weeks) Ended




July 2, 2022



July 3, 2021



July 2, 2022



July 3, 2021


Net sales


$

11,794,474



$

8,789,164



$

22,287,756



$

15,806,304


Costs, expenses and other:

















Cost of products sold



7,690,211




6,315,661




14,725,354




11,710,364


Marketing, administrative and other expenses



563,211




387,070




1,087,795




678,194


Equity in earnings of unconsolidated affiliates



(7,113)




(19,403)




(14,808)




(32,642)


Losses on assets



-




44,308




-




50,970


Interest expense, net



57,763




35,780




100,898




75,424





8,304,072




6,763,416




15,899,239




12,482,310


Earnings before income taxes and noncontrolling interests



3,490,402




2,025,748




6,388,517




3,323,994


Provision for income taxes



763,165




454,289




1,434,165




765,021


Net earnings



2,727,237




1,571,459




4,954,352




2,558,973


Earnings attributable to noncontrolling interests



166,004




64,591




297,496




109,673


Net earnings attributable to Nucor stockholders


$

2,561,233



$

1,506,868



$

4,656,856



$

2,449,300


Net earnings per share:

















Basic


$

9.69



$

5.05



$

17.34



$

8.14


Diluted


$

9.67



$

5.04



$

17.30



$

8.13


Average shares outstanding:

















Basic



263,221




296,817




267,416




299,359


Diluted



263,719




297,529




268,066




299,738


 

Condensed Consolidated Balance Sheets (Unaudited)


(In thousands)






July 2, 2022



Dec 31, 2021


ASSETS









Current assets:









Cash and cash equivalents


$

2,002,708



$

2,364,858


Short-term investments



363,287




253,005


Accounts receivable, net



4,749,600




3,853,972


Inventories, net



6,579,142




6,011,182


Other current assets



339,074




316,540


Total current assets



14,033,811




12,799,557


Property, plant and equipment, net



9,213,600




8,114,818


Restricted cash and cash equivalents



88,262




143,800


Goodwill



3,929,503




2,827,344


Other intangible assets, net



3,429,149




1,103,759


Other assets



974,132




833,794


Total assets


$

31,668,457



$

25,823,072


LIABILITIES









Current liabilities:









Short-term debt


$

100,509



$

107,723


Current portion of long-term debt and finance lease obligations



629,171




615,678


Accounts payable



2,315,796




1,974,041


Salaries, wages and related accruals



1,239,617




1,495,166


Accrued expenses and other current liabilities



1,074,108




964,805


Total current liabilities



5,359,201




5,157,413


Long-term debt and finance lease obligations due after one year



6,621,685




4,961,410


Deferred credits and other liabilities



1,834,763




1,100,455


Total liabilities



13,815,649




11,219,278


Commitments and contingencies









EQUITY









Nucor stockholders' equity:









Common stock



152,061




152,061


Additional paid-in capital



2,115,178




2,140,608


Retained earnings



22,064,383




17,674,100


Accumulated other comprehensive loss,

   net of income taxes



(70,810)




(115,282)


Treasury stock



(7,452,168)




(5,835,098)


Total Nucor stockholders' equity



16,808,644




14,016,389


Noncontrolling interests



1,044,164




587,405


Total equity



17,852,808




14,603,794


Total liabilities and equity


$

31,668,457



$

25,823,072











 

Condensed Consolidated Statements of Cash Flows (Unaudited)


(In thousands)






Six Months (26 Weeks) Ended




July 2, 2022



July 3, 2021


Operating activities:









Net earnings


$

4,954,352



$

2,558,973


Adjustments:









Depreciation



397,270




362,492


Amortization



87,267




41,858


Stock-based compensation



74,219




66,729


Deferred income taxes



(36,220)




102,367


Distributions from affiliates



2,287




180


Equity in earnings of unconsolidated affiliates



(14,808)




(32,642)


Losses on assets



-




50,970


Changes in assets and liabilities (exclusive of acquisitions and dispositions):









Accounts receivable



(648,569)




(1,093,021)


Inventories



(157,976)




(1,673,962)


Accounts payable



198,062




726,649


Federal income taxes



33,441




290,287


Salaries, wages and related accruals



(252,758)




385,265


Other operating activities



97,174




97,041


Cash provided by operating activities



4,733,741




1,883,186


Investing activities:









Capital expenditures



(968,795)




(702,378)


Investment in and advances to affiliates



(227)




(169)


Disposition of plant and equipment



15,996




10,665


Acquisitions (net of cash acquired)



(3,465,866)




300


Purchases of investments



(330,278)




(357,917)


Proceeds from the sale of investments



219,996




367,512


Other investing activities



(7,096)




587


Cash used in investing activities



(4,536,270)




(681,400)


Financing activities:









Net change in short-term debt



(7,214)




42,780


Proceeds from issuance of long-term debt, net of discount



2,091,934




-


Repayment of long-term debt



(506,000)




-


Bond issuance costs



(13,138)




-


Proceeds from exercise of stock options



18,819




128,800


Payment of tax withholdings on certain stock-based compensation



(58,218)




(64,416)


Distributions to noncontrolling interests



(268,535)




(97,196)


Cash dividends



(272,038)




(246,539)


Acquisition of treasury stock



(1,707,893)




(916,145)


Proceeds from government incentives



125,000




-


Other financing activities



(17,059)




(5,072)


Cash used in financing activities



(614,342)




(1,157,788)


Effect of exchange rate changes on cash



(817)




8,079


(Decrease) increase in cash and cash equivalents and

   restricted cash and cash equivalents



(417,688)




52,077


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 six months


$

2,090,970



$

2,807,006


Non-cash investing activity:









Change in accrued plant and equipment purchases


$

(23,583)



$

44,754











 

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SOURCE Nucor Corporation