Nucor Reports Results for the First Quarter of 2022
Nucor Corporation (NYSE: NUE) reported record net earnings of $2.10 billion, or $7.67 per diluted share, for Q1 2022, marking its most profitable first quarter to date. In comparison, net earnings for Q4 2021 were $2.25 billion ($7.97 per share), while Q1 2021 earnings stood at $942.4 million ($3.10 per share). The company highlighted its commitment to safety and sustainability in steel production, acknowledging customer trust as a driving factor behind its performance.
- Record net earnings of $2.10 billion for Q1 2022.
- Earnings per diluted share of $7.67, outperforming Q1 2021's $3.10.
- Strong safety performance alongside financial results.
- Continued customer trust and focus on sustainable steel solutions.
- Earnings decreased from $2.25 billion in Q4 2021.
CHARLOTTE, N.C., April 21, 2022 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) today announced consolidated net earnings of
"I'm incredibly proud of the Nucor Team's exceptional focus on delivering world class performance in the first quarter of 2022, especially our record results in Safety and first quarter profitability. We are grateful for the trust our customers place in the Nucor Team with every order as we strive to offer exceptional value by delivering the cleanest and most sustainable steel solutions in the world. Our key forward looking indicators for 2022 remain favorable and we expect another strong year in both earnings and cash generation," said Leon Topalian, Nucor's President and Chief Executive Officer.
Selected Segment Data
Earnings (loss) before income taxes and noncontrolling interests by segment for the first quarter of 2022 and 2021 were as follows (in thousands):
Three Months (13 Weeks) Ended | ||||||||
April 2, 2022 | April 3, 2021 | |||||||
Steel mills | $ | 2,578,854 | $ | 1,314,974 | ||||
Steel products | 684,867 | 211,812 | ||||||
Raw materials | 95,853 | 223,235 | ||||||
Corporate/eliminations | (461,459) | (451,775) | ||||||
$ | 2,898,115 | $ | 1,298,246 | |||||
Financial Review
Nucor's consolidated net sales increased
The average scrap and scrap substitute cost per gross ton used in the first quarter of 2022 was
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 first quarter of 2022, we had
Commitment to Returning Capital to Stockholders
During the first quarter of 2022, Nucor repurchased approximately 7.0 million shares of its common stock at an average price of
On February 22, 2022, Nucor's board of directors declared a cash dividend of
First Quarter of 2022 Analysis
Steel mill segment earnings in the first quarter of 2022 decreased 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 softened during the first quarter reflecting increased import volumes coupled with modest destocking. The steel products segment generated increased earnings in the first quarter of 2022 relative to the fourth quarter of 2021 due to continued strong nonresidential construction related demand and expanded profit margins. Earnings for the raw materials segment increased in the first quarter of 2022 as compared to the fourth quarter of 2021 due to improving selling prices for raw materials at the end of the quarter.
Second Quarter of 2022 Outlook
End use market demand remains strong for steel and steel products, and we remain confident that 2022 will be another year of very strong earnings and cash flow for Nucor.
We expect that the second quarter of 2022 will be the most profitable quarter in Nucor's history, surpassing the previous record set in the fourth quarter of 2021.
Second quarter earnings will be driven by increased profitability in the steel products segment, which continues to benefit from robust demand in nonresidential construction markets. In addition, the steel mills segment earnings are expected to strengthen due primarily to increased profitability at our sheet and plate mills. Similarly, Nucor's raw materials segment is expected to generate increased profits in the second quarter due to relatively higher selling prices for raw materials.
Earnings Conference Call
You are invited to listen to the live broadcast of Nucor's conference call during which management will discuss Nucor's first quarter results on April 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; 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 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 | ||||||||||||
April 2, 2022 | April 3, 2021 | Percent Change | ||||||||||
Steel mills total shipments: | ||||||||||||
Sheet | 2,385 | 2,927 | -19 | % | ||||||||
Bars | 2,286 | 2,319 | -1 | % | ||||||||
Structural | 640 | 623 | 3 | % | ||||||||
Plate | 398 | 596 | -33 | % | ||||||||
Other | 105 | 79 | 33 | % | ||||||||
5,814 | 6,544 | -11 | % | |||||||||
Sales tons to outside customers: | ||||||||||||
Steel mills | 4,539 | 5,190 | -13 | % | ||||||||
Joist | 179 | 172 | 4 | % | ||||||||
Deck | 136 | 135 | 1 | % | ||||||||
Cold finished | 133 | 132 | 1 | % | ||||||||
Rebar fabrication products | 291 | 282 | 3 | % | ||||||||
Piling | 111 | 136 | -18 | % | ||||||||
Tubular products | 255 | 250 | 2 | % | ||||||||
Other steel products | 130 | 100 | 30 | % | ||||||||
Raw materials | 620 | 779 | -20 | % | ||||||||
6,394 | 7,176 | -11 | % | |||||||||
Condensed Consolidated Statements of Earnings (Unaudited) (In thousands, except per share data) | ||||||||
Three Months (13 Weeks) Ended | ||||||||
April 2, 2022 | April 3, 2021 | |||||||
Net sales | $ | 10,493,282 | $ | 7,017,140 | ||||
Costs, expenses and other: | ||||||||
Cost of products sold | 7,035,143 | 5,394,703 | ||||||
Marketing, administrative and other expenses | 524,584 | 291,124 | ||||||
Equity in earnings of unconsolidated affiliates | (7,695) | (13,239) | ||||||
Losses on assets | - | 6,662 | ||||||
Interest expense, net | 43,135 | 39,644 | ||||||
7,595,167 | 5,718,894 | |||||||
Earnings before income taxes and noncontrolling interests | 2,898,115 | 1,298,246 | ||||||
Provision for income taxes | 671,000 | 310,732 | ||||||
Net earnings | 2,227,115 | 987,514 | ||||||
Earnings attributable to noncontrolling interests | 131,492 | 45,082 | ||||||
Net earnings attributable to Nucor stockholders | $ | 2,095,623 | $ | 942,432 | ||||
Net earnings per share: | ||||||||
Basic | $ | 7.69 | $ | 3.10 | ||||
Diluted | $ | 7.67 | $ | 3.10 | ||||
Average shares outstanding: | ||||||||
Basic | 271,564 | 301,846 | ||||||
Diluted | 272,094 | 302,518 | ||||||
Condensed Consolidated Balance Sheets (Unaudited) (In thousands) | ||||||||
April 2, 2022 | Dec 31, 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,725,266 | $ | 2,364,858 | ||||
Short-term investments | 446,868 | 253,005 | ||||||
Accounts receivable, net | 4,111,478 | 3,853,972 | ||||||
Inventories, net | 6,245,679 | 6,011,182 | ||||||
Other current assets | 252,060 | 316,540 | ||||||
Total current assets | 14,781,351 | 12,799,557 | ||||||
Property, plant and equipment, net | 8,921,263 | 8,114,818 | ||||||
Restricted cash and cash equivalents | 88,242 | 143,800 | ||||||
Goodwill | 2,904,134 | 2,827,344 | ||||||
Other intangible assets, net | 1,063,210 | 1,103,759 | ||||||
Other assets | 874,668 | 833,794 | ||||||
Total assets | $ | 28,632,868 | $ | 25,823,072 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 86,521 | $ | 107,723 | ||||
Current portion of long-term debt and finance lease obligations | 629,536 | 615,678 | ||||||
Accounts payable | 1,900,536 | 1,974,041 | ||||||
Salaries, wages and related accruals | 832,999 | 1,495,166 | ||||||
Accrued expenses and other current liabilities | 1,081,706 | 964,805 | ||||||
Federal income taxes payable | 602,537 | - | ||||||
Total current liabilities | 5,133,835 | 5,157,413 | ||||||
Long-term debt and finance lease obligations due after one year | 6,112,331 | 4,961,410 | ||||||
Deferred credits and other liabilities | 1,243,582 | 1,100,455 | ||||||
Total liabilities | 12,489,748 | 11,219,278 | ||||||
EQUITY | ||||||||
Nucor stockholders' equity: | ||||||||
Common stock | 152,061 | 152,061 | ||||||
Additional paid-in capital | 2,163,129 | 2,140,608 | ||||||
Retained earnings | 19,635,277 | 17,674,100 | ||||||
Accumulated other comprehensive loss, net of income taxes | (44,504) | (115,282) | ||||||
Treasury stock | (6,701,401) | (5,835,098) | ||||||
Total Nucor stockholders' equity | 15,204,562 | 14,016,389 | ||||||
Noncontrolling interests | 938,558 | 587,405 | ||||||
Total equity | 16,143,120 | 14,603,794 | ||||||
Total liabilities and equity | $ | 28,632,868 | $ | 25,823,072 | ||||
Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | ||||||||
Three Months (13 Weeks) Ended | ||||||||
April 2, 2022 | April 3, 2021 | |||||||
Operating activities: | ||||||||
Net earnings | $ | 2,227,115 | $ | 987,514 | ||||
Adjustments: | ||||||||
Depreciation | 195,478 | 179,820 | ||||||
Amortization | 41,411 | 21,130 | ||||||
Stock-based compensation | 26,422 | 19,859 | ||||||
Deferred income taxes | (18,764) | 62,705 | ||||||
Distributions from affiliates | 1,500 | 180 | ||||||
Equity in earnings of unconsolidated affiliates | (7,695) | (13,239) | ||||||
Losses on assets | - | 6,662 | ||||||
Changes in assets and liabilities (exclusive of acquisitions and dispositions): | ||||||||
Accounts receivable | (92,394) | (524,570) | ||||||
Inventories | 124,201 | (795,940) | ||||||
Accounts payable | (165,476) | 225,333 | ||||||
Federal income taxes | 672,142 | 200,888 | ||||||
Salaries, wages and related accruals | (658,267) | 69,780 | ||||||
Other operating activities | 126,495 | 90,289 | ||||||
Cash provided by operating activities | 2,472,168 | 530,411 | ||||||
Investing activities: | ||||||||
Capital expenditures | (447,682) | (313,510) | ||||||
Investment in and advances to affiliates | (63) | (118) | ||||||
Disposition of plant and equipment | 7,288 | 5,735 | ||||||
Acquisitions (net of cash acquired) | (347,177) | 300 | ||||||
Purchase of investments | (274,197) | (214,427) | ||||||
Proceeds from the sale of investments | 80,333 | 219,777 | ||||||
Other investing activities | (183) | 249 | ||||||
Cash used in investing activities | (981,681) | (301,994) | ||||||
Financing activities: | ||||||||
Net change in short-term debt | (21,202) | (1,607) | ||||||
Proceeds from long-term debt, net of discount | 1,093,059 | - | ||||||
Repayment of long-term debt | (2,500) | - | ||||||
Bond issuance related costs | (8,388) | - | ||||||
Proceeds from exercise of stock options | 16,586 | 107,524 | ||||||
Payment of tax withholdings on certain stock-based compensation | (8,512) | (14,521) | ||||||
Distributions to noncontrolling interests | (211,558) | (73,795) | ||||||
Cash dividends | (137,587) | (123,901) | ||||||
Acquisition of treasury stock | (905,324) | (301,859) | ||||||
Other financing activities | (3,883) | (2,505) | ||||||
Cash used in financing activities | (189,309) | (410,664) | ||||||
Effect of exchange rate changes on cash | 3,672 | 3,307 | ||||||
Increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | 1,304,850 | (178,940) | ||||||
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 three months | $ | 3,813,508 | $ | 2,575,989 | ||||
Non-cash investing activity: | ||||||||
Change in accrued plant and equipment purchases | $ | (7,789) | $ | 4,461 | ||||
View original content:https://www.prnewswire.com/news-releases/nucor-reports-results-for-the-first-quarter-of-2022-301529811.html
SOURCE Nucor Corporation
FAQ
What were Nucor's earnings for Q1 2022?
How do Nucor's Q1 2022 earnings compare to Q1 2021?
What was Nucor's most profitable quarter?
What were Nucor's earnings per share for Q4 2021?
What does Nucor focus on in its operations?
