Nucor Announces Guidance for First Quarter of 2022 Earnings

Rhea-AI Summary

Nucor Corporation (NYSE: NUE) anticipates record first quarter earnings between $7.20 and $7.30 per diluted share, compared to $7.97 in Q4 2021 and $3.10 in Q1 2021. The steel mill segment is expected to see a decrease in earnings due to reduced profitability in sheet mills, despite strong demand. The steel products segment may see increased earnings, driven by strong nonresidential construction demand. Nucor has repurchased approximately 4.3 million shares at an average of $115.35.

Positive

• Expected record Q1 earnings of $7.20 to $7.30 per share.
• Continued strong demand in nonresidential construction.
• 4.3 million shares repurchased, returning over $630 million to shareholders.

Negative

• Earnings decline expected in the steel mill segment due to reduced sheet mill profitability.
• Softening average realized prices for sheet products.

CHARLOTTE, N.C., March 17, 2022 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) today announced guidance for its first quarter ending April 2, 2022. Nucor expects to achieve a new record for first quarter earnings in the range of $7.20 to $7.30 per diluted share. Fourth quarter of 2021 earnings were $7.97 per diluted share and first quarter of 2021 earnings were $3.10 per diluted share.

Steel mill segment earnings in the first quarter of 2022 are expected to decrease from the fourth quarter of 2021, primarily due to the decreased profitability of the sheet mills. While end market demand remains strong, average realized selling prices in sheet have softened during the first quarter reflecting increased import volumes coupled with modest destocking.  The steel products segment is expected to generate increased earnings in the first quarter of 2022 relative to the fourth quarter of 2021 due to continued strong nonresidential construction related demand and expanding profit margins.  For the first quarter of 2022, earnings for the raw materials segment are expected to be in line with fourth quarter of 2021 performance.

Continued solid demand across most end markets we serve combined with the strength of Nucor's business model provide confidence that 2022 will be another very strong year. We have recently announced price increases across the steel mills segment and expect profitability to improve. Recent geopolitical events and the resulting price increases for steelmaking raw materials have accentuated the value of Nucor's adaptive business model and flexible raw materials profile.

Continuing Share Repurchases
So far during the first quarter, Nucor has repurchased approximately 4.3 million shares at an average price of approximately $115.35 per share. Nucor has returned more than $630 million to stockholders in the form of share repurchases and dividend payments year-to-date.

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; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, 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 rates; (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; and (14) 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 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.

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SOURCE Nucor Corporation

FAQ

What are Nucor's Q1 2022 earnings expectations?

Nucor expects Q1 2022 earnings to be between $7.20 and $7.30 per diluted share.

How did Nucor's Q1 2022 guidance compare to previous quarters?

Q4 2021 earnings were $7.97 per share, and Q1 2021 earnings were $3.10 per share.

What factors are affecting Nucor's earnings in the steel mill segment?

Earnings are expected to decline due to reduced profitability in sheet mills and softening prices.

What is Nucor's strategy regarding share repurchases?

Nucor has repurchased approximately 4.3 million shares at an average price of $115.35.