Nucor Announces Guidance for the Third Quarter of 2022 Earnings

Rhea-AI Summary

Nucor Corporation (NYSE: NUE) announced guidance for Q3 2022, projecting earnings between $6.30 and $6.40 per diluted share. This reflects a decrease compared to $9.67 per share in Q2 2022 and $7.28 in Q3 2021. The steel mills segment is expected to see significantly lower earnings due to reduced shipping volumes and metal margin contraction, while the steel products segment remains strong. Nucor's share repurchase activity totaled 5.3 million shares at an average price of $122.24 this quarter, with over $2.7 billion returned to stockholders year-to-date.

Positive

• Earnings guidance for Q3 2022 is projected between $6.30 and $6.40 per diluted share.
• Repurchased 5.3 million shares at an average price of $122.24.

Negative

• Expected significant decline in steel mills segment earnings due to metal margin contraction.
• Reduced shipping volumes particularly at sheet and plate mills.

CHARLOTTE, N.C., Sept. 14, 2022 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) today announced guidance for its third quarter ending October 1, 2022. Nucor expects third quarter earnings to be in the range of $6.30 to $6.40 per diluted share. Nucor reported net earnings of $9.67 per diluted share in the second quarter of 2022 and $7.28 per diluted share in the third quarter of 2021.

We expect the steel mills segment earnings to be considerably lower in the third quarter of 2022 as compared to the second quarter of 2022, due to metal margin contraction and reduced shipping volumes particularly at our sheet and plate mills. The steel products segment is expected to have another 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 be similar to the second quarter of 2022. We continue to believe that 2022 will be the most profitable year in Nucor's history.

During the third quarter, Nucor has repurchased 5.3 million shares at an average price of $122.24 per share (17.5 million shares year-to-date at an average price of $134.99 per share). Nucor has returned more than $2.7 billion 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; overhead doors; 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 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; 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 is Nucor's earnings guidance for Q3 2022?

Nucor expects earnings to be in the range of $6.30 to $6.40 per diluted share for Q3 2022.

How did Nucor's earnings in Q2 2022 compare to Q3 2021?

Nucor reported net earnings of $9.67 per diluted share in Q2 2022 and $7.28 in Q3 2021.

What factors are affecting Nucor's Q3 2022 earnings?

Earnings are expected to decline due to metal margin contraction and reduced shipping volumes.

How much has Nucor returned to shareholders in 2022?

Nucor has returned over $2.7 billion to shareholders through share repurchases and dividends year-to-date.

What are Nucor's expectations for its steel products segment in Q3 2022?

The steel products segment is expected to have another strong quarter, with earnings in line with Q2 2022.