Nucor Reports Record Annual Earnings for 2022
Nucor Corporation (NUE) reported record profits for 2022, achieving net earnings of $7.61 billion, or $28.79 per diluted share, marking a 24% increase from 2021. In Q4 2022, earnings were $1.26 billion, down from $1.69 billion in Q3 2022 and $2.25 billion in Q4 2021. The company returned $3.3 billion to shareholders through dividends and share repurchases, celebrating its 50th consecutive annual dividend increase. Despite a decrease in consolidated net sales by 17% in Q4, Nucor maintains strong financial health with $4.94 billion in liquidity and a stable outlook from major credit rating agencies.
- Record consolidated net earnings of $7.61 billion for 2022, exceeding 2021 by 24%.
- Returned $3.3 billion to stockholders through dividends and share repurchases.
- Increased dividend for 50 consecutive years since 1973.
- Strong credit ratings: Baa1 from Moody's, A- from S&P, and A- from Fitch.
- Q4 2022 net earnings decreased to $1.26 billion from $1.69 billion in Q3 2022.
- Consolidated net sales decreased by 17% in Q4 2022 compared to Q3 2022.
- Operating rates at steel mills fell to 70% in Q4 2022, down from 77% in Q3 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
For the full year 2022, Nucor reported record consolidated net earnings of
Included in the fourth quarter of 2022 results was an after-tax net benefit of
"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
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
For the full year 2022, Nucor's consolidated net sales of
The average scrap and scrap substitute cost per gross ton used in the fourth quarter of 2022 was
Pre-tax pre-operating and start-up costs related to the Company's growth projects were approximately
In the full year 2022, pre-tax pre-operating and start-up costs related to the Company's growth projects were approximately
Overall operating rates at the Company's steel mills decreased to
Financial Strength
At the end of the fourth quarter of 2022, Nucor had
Commitment to Returning Capital to Stockholders
On December 14, 2022, Nucor's Board of Directors declared a cash dividend of
During the fourth quarter of 2022, Nucor repurchased approximately 3.1 million shares of its common stock at an average price of
For the full year 2022, Nucor returned approximately
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 | Dec. 31, 2022 | Dec. 31, 2021 | Percent | |||||||
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 | ||||
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SOURCE Nucor Corporation
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