Nucor Announces Guidance for the Fourth Quarter of 2024 Earnings

Rhea-AI Summary

Nucor (NYSE: NUE) has provided guidance for Q4 2024, projecting earnings between $0.55 to $0.65 per diluted share, down from $1.05 in Q3 2024 and $3.16 in Q4 2023. The decline is primarily attributed to decreased earnings in the steel mills segment due to lower volumes and average selling prices. The steel products segment also expects decreased earnings, while the raw materials segment anticipates improvement.

The company has repurchased approximately 2.1 million shares at $149.81 per share in Q4, bringing the year-to-date total to 13.1 million shares at $168.75 per share. Nucor has returned over $2.73 billion to stockholders through share repurchases and dividends year-to-date.

Positive

• Continued strong shareholder returns with $2.73 billion distributed via buybacks and dividends
• Expected improvement in raw materials segment performance in Q4 2024
• Active share repurchase program with 2.1 million shares bought in Q4

Negative

• Q4 2024 EPS guidance of $0.55-$0.65 represents 82% decline from Q4 2023
• Decreased volumes and lower selling prices in steel mills segment
• Declining performance in steel products segment
• Q3 2024 included $123 million in asset impairment charges

Insights

Financial Analyst

Nucor's Q4 2024 guidance signals a significant earnings decline, with EPS expected between $0.55 to $0.65, down sharply from $3.16 in Q4 2023. The steel mills segment faces headwinds from lower volumes and pricing, while the steel products segment shows similar weakness. Despite challenges, the company maintains strong shareholder returns, having repurchased 2.1M shares at $149.81 per share in Q4, with total year-to-date returns to shareholders exceeding $2.73B. The Q3 impairment charges of $123M across raw materials and steel products segments indicate potential structural challenges, though raw materials segment is expected to show improvement in Q4.

Market Research Analyst

The guidance reveals concerning trends in steel market dynamics, with both volume and pricing pressure indicating weakening demand. The 79% year-over-year projected earnings decline suggests a significant market slowdown. However, Nucor's continued share buybacks at an average price of $168.75 year-to-date demonstrate management's confidence in long-term value. The sequential decline from Q3's $1.05 EPS (excluding impairments) to projected Q4 levels points to accelerating market weakness, potentially signaling broader industrial sector challenges.

CHARLOTTE, N.C., Dec. 16, 2024 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) today announced guidance for its fourth quarter ending December 31, 2024. Nucor expects fourth quarter earnings to be in the range of $0.55 to $0.65 per diluted share. Nucor reported net earnings of $1.05 per diluted share in the third quarter of 2024 and $3.16 per diluted share in the fourth quarter of 2023.

Reflected in the third quarter of 2024 losses and impairments of assets are non-cash charges of $83.0 million, or $0.27 per diluted share, and $40.0 million, or $0.17 per diluted share, related to the impairment of certain non-current assets in the raw materials and steel products segments, respectively.

Fourth Quarter of 2024 Commentary
The largest driver for the expected decrease in earnings in the fourth quarter of 2024 is the decreased earnings of the steel mills segment caused by decreased volumes and lower average selling prices. We expect earnings in the steel products segment to decrease in the fourth quarter of 2024 as compared to the third quarter of 2024 due to decreased volumes and lower average selling prices. The earnings of the raw materials segment are expected to increase in the fourth quarter of 2024 as compared to the third quarter of 2024 (excluding the impairment charge taken during the third quarter of 2024).

During the fourth quarter, Nucor has repurchased approximately 2.1 million shares at an average price of $149.81 per share (approximately 13.1 million shares year-to-date at an average price of $168.75 per share). Nucor has returned more than $2.73 billion to stockholders in the form of share repurchases and dividend payments year-to-date.

Fourth Quarter of 2024 Earnings Release and Conference Call
Nucor will release its earnings after the markets close on Monday, January 27, 2025, and will host a conference call the morning of Tuesday, January 28, 2025 at 10:00 a.m. Eastern Time to review the Company's fourth quarter results. The event will be broadcast on the internet, and instructions on how to access will be sent closer to the call.

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; wire and wire mesh; and utility structures. 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 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) any 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, 2023. 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 is Nucor's (NUE) earnings guidance for Q4 2024?

Nucor expects Q4 2024 earnings to be between $0.55 and $0.65 per diluted share.

How much did Nucor (NUE) spend on share repurchases in Q4 2024?

Nucor repurchased approximately 2.1 million shares at an average price of $149.81 per share in Q4 2024.

What caused the decline in Nucor's (NUE) Q4 2024 earnings forecast?

The main driver was decreased earnings in the steel mills segment due to lower volumes and reduced average selling prices.

How much has Nucor (NUE) returned to shareholders in 2024?

Nucor has returned more than $2.73 billion to stockholders through share repurchases and dividend payments year-to-date.

What was Nucor's (NUE) EPS in Q4 2023 compared to Q4 2024 guidance?

Nucor reported $3.16 per diluted share in Q4 2023, compared to guidance of $0.55-$0.65 for Q4 2024.