For the full year 2023,
"The
Selected Segment Data
Earnings (loss) before income taxes and noncontrolling interests by segment for the fourth quarter and full year 2023 and 2022 were as follows (in thousands):
Three Months (13 Weeks) Ended |
Twelve Months (52 Weeks) Ended |
|||||||||||||||
|
|
|
|
|||||||||||||
Steel mills |
$ |
587,921 |
$ |
516,655 |
$ |
3,712,470 |
$ |
7,199,087 |
||||||||
Steel products |
655,628 |
1,081,461 |
3,443,950 |
4,093,105 |
||||||||||||
Raw materials |
(14,412) |
(141,817) |
253,506 |
496,823 |
||||||||||||
Corporate/eliminations |
(151,028) |
77,106 |
(1,137,169) |
(1,544,171) |
||||||||||||
$ |
1,078,109 |
$ |
1,533,405 |
$ |
6,272,757 |
$ |
10,244,844 |
Financial Review
For the full year 2023,
The average scrap and scrap substitute cost per gross ton used in the fourth quarter of 2023 was
Pre-tax, pre-operating and start-up costs related to the Company's growth projects were approximately
In the full year 2023, 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 were 74% in the fourth quarter of 2023 as compared to 77% in the third quarter of 2023 and 70% in the fourth quarter of 2022. Operating rates for the full year 2023 increased to 78% as compared to 77% for the full year 2022.
Included in the results for the fourth quarter of 2022 was an after-tax net benefit of $60.4 million, or $0.24 per diluted share, related to state tax credits and an after-tax net benefit of $88.0 million, or $0.34 per diluted share, related to a change in the valuation allowance of a state deferred tax asset. Also included in the fourth quarter of 2022 results was a pre-tax $96.0 million, or $0.29 per diluted share, write-off of the remaining carrying value of the Company's leasehold interest in unproved oil and gas properties that is included in the raw materials segment.
Financial Strength
At the end of the fourth quarter of 2023,
Commitment to
On
During the fourth quarter of 2023,
For the full year 2023,
Fourth Quarter of 2023 Analysis
Earnings in the fourth quarter of 2023 decreased compared to the third quarter of 2023 due to lower pricing and volumes across all three operating segments. In the steel mills segment, the decrease in realized pricing was most pronounced at our sheet and plate mills. In the steel products segment, earnings decreased due to moderating average selling prices at most of the product groups within the segment and lower volumes. Earnings for the raw materials segment decreased in the fourth quarter of 2023 compared to the third quarter of 2023 due to lower pricing for raw materials and planned outages at our direct reduced iron, or DRI, facilities.
First Quarter of 2024 Outlook
We expect earnings in the first quarter of 2024 to increase compared to the fourth quarter of 2023. The steel mills segment's earnings are expected to increase in the first quarter of 2024 due to higher average selling prices and volumes, particularly at our sheet mills. Earnings in the steel products segment are expected to decrease in the first quarter of 2024 due to lower average selling prices. We expect increased earnings in the raw materials segment in the first quarter of 2024 due to the increased profitability of our DRI facilities and our scrap processing and brokerage operations.
Earnings Conference Call
An earnings call is scheduled for
About
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 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.
Non-GAAP Financial Measures
The Company uses certain non-GAAP (Generally Accepted Accounting Principles) financial measures in this news release, including EBITDA. Generally, a non-GAAP financial measure is a numerical measure of a company's performance or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable financial measure calculated and presented in accordance with GAAP.
We define EBITDA as net earnings before noncontrolling interests, adding back the following items: interest (income) expense, net; provision for income taxes; depreciation; and amortization. First, second and third quarter of 2023 EBITDA was
Management presents the non-GAAP financial measure of EBITDA in this news release because it considers it to be an important supplemental measure of performance. Management believes that this non-GAAP financial measure provides additional insight for analysts and investors evaluating the Company's financial and operational performance by providing a consistent basis of comparison across periods.
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)
Tonnage Data |
||||||||||||||||||||||||
(In thousands) |
||||||||||||||||||||||||
Three Months (13 Weeks) Ended |
Twelve Months (52 Weeks) Ended |
|||||||||||||||||||||||
|
|
Percent |
|
|
Percent |
|||||||||||||||||||
Steel mills total shipments: |
||||||||||||||||||||||||
Sheet |
2,675 |
2,314 |
16 |
% |
11,003 |
10,310 |
7 |
% |
||||||||||||||||
Bars |
1,901 |
1,907 |
- |
8,193 |
8,635 |
-5 |
% |
|||||||||||||||||
Structural |
542 |
445 |
22 |
% |
2,113 |
2,292 |
-8 |
% |
||||||||||||||||
Plate |
373 |
375 |
-1 |
% |
1,807 |
1,626 |
11 |
% |
||||||||||||||||
Other |
22 |
69 |
-68 |
% |
157 |
378 |
-58 |
% |
||||||||||||||||
5,513 |
5,110 |
8 |
% |
23,273 |
23,241 |
- |
||||||||||||||||||
Sales tons to outside customers: |
||||||||||||||||||||||||
Steel mills |
4,396 |
4,067 |
8 |
% |
18,552 |
18,200 |
2 |
% |
||||||||||||||||
Joist |
106 |
174 |
-39 |
% |
510 |
671 |
-24 |
% |
||||||||||||||||
Deck |
91 |
127 |
-28 |
% |
401 |
515 |
-22 |
% |
||||||||||||||||
Cold finished |
96 |
99 |
-3 |
% |
428 |
467 |
-8 |
% |
||||||||||||||||
Rebar fabrication products |
251 |
302 |
-17 |
% |
1,169 |
1,282 |
-9 |
% |
||||||||||||||||
Piling |
102 |
94 |
9 |
% |
433 |
443 |
-2 |
% |
||||||||||||||||
Tubular products |
212 |
215 |
-1 |
% |
949 |
950 |
- |
|||||||||||||||||
Other steel products |
153 |
167 |
-8 |
% |
596 |
687 |
-13 |
% |
||||||||||||||||
Raw materials |
527 |
493 |
7 |
% |
2,167 |
2,309 |
-6 |
% |
||||||||||||||||
5,934 |
5,738 |
3 |
% |
25,205 |
25,524 |
-1 |
% |
Condensed Consolidated Statements of Earnings (Unaudited) |
||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||
Three Months (13 Weeks) Ended |
Twelve Months (52 Weeks) Ended |
|||||||||||||||
|
|
|
|
|||||||||||||
Net sales |
$ |
7,704,531 |
$ |
8,723,956 |
$ |
34,713,501 |
$ |
41,512,467 |
||||||||
Costs, expenses and other: |
||||||||||||||||
Cost of products sold |
6,310,813 |
6,626,469 |
26,899,107 |
29,009,187 |
||||||||||||
Marketing, administrative and other expenses |
355,001 |
422,823 |
1,584,052 |
1,997,178 |
||||||||||||
Equity in (earnings) losses of unconsolidated affiliates |
(9,112) |
12,532 |
(12,783) |
(10,714) |
||||||||||||
Losses and impairments of assets |
- |
101,756 |
- |
101,756 |
||||||||||||
Interest (income) expense, net |
(30,280) |
26,971 |
(29,632) |
170,216 |
||||||||||||
6,626,422 |
7,190,551 |
28,440,744 |
31,267,623 |
|||||||||||||
Earnings before income taxes and noncontrolling interests |
1,078,109 |
1,533,405 |
6,272,757 |
10,244,844 |
||||||||||||
Provision for income taxes |
205,277 |
207,160 |
1,359,966 |
2,165,204 |
||||||||||||
Net earnings before noncontrolling interests |
872,832 |
1,326,245 |
4,912,791 |
8,079,640 |
||||||||||||
Earnings attributable to noncontrolling interests |
87,433 |
70,512 |
387,990 |
472,303 |
||||||||||||
Net earnings attributable to |
$ |
785,399 |
$ |
1,255,733 |
$ |
4,524,801 |
$ |
7,607,337 |
||||||||
Net earnings per share: |
||||||||||||||||
Basic |
$ |
3.17 |
$ |
4.90 |
$ |
18.05 |
$ |
28.88 |
||||||||
Diluted |
$ |
3.16 |
$ |
4.89 |
$ |
18.00 |
$ |
28.79 |
||||||||
Average shares outstanding: |
||||||||||||||||
Basic |
246,868 |
255,402 |
249,773 |
262,348 |
||||||||||||
Diluted |
247,249 |
255,838 |
250,412 |
263,176 |
Condensed Consolidated Balance Sheets (Unaudited) (In thousands) |
||||||||
|
||||||||
2023 |
2022 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
6,383,298 |
$ |
4,280,852 |
||||
Short-term investments |
747,479 |
576,946 |
||||||
Accounts receivable, net |
2,953,311 |
3,591,030 |
||||||
Inventories, net |
5,577,758 |
5,453,531 |
||||||
Other current assets |
724,012 |
789,325 |
||||||
Total current assets |
16,385,858 |
14,691,684 |
||||||
Property, plant and equipment, net |
11,049,767 |
9,616,920 |
||||||
Restricted cash and cash equivalents |
3,494 |
80,368 |
||||||
|
3,968,847 |
3,920,060 |
||||||
Other intangible assets, net |
3,108,015 |
3,322,265 |
||||||
Other assets |
824,518 |
847,913 |
||||||
Total assets |
$ |
35,340,499 |
$ |
32,479,210 |
||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Short-term debt |
$ |
119,211 |
$ |
49,081 |
||||
Current portion of long-term debt and finance lease obligations |
74,102 |
28,582 |
||||||
Accounts payable |
2,020,289 |
1,649,523 |
||||||
Salaries, wages and related accruals |
1,326,390 |
1,654,210 |
||||||
Accrued expenses and other current liabilities |
1,054,517 |
948,348 |
||||||
Total current liabilities |
4,594,509 |
4,329,744 |
||||||
Long-term debt and finance lease obligations due after one year |
6,648,873 |
6,613,687 |
||||||
Deferred credits and other liabilities |
1,973,363 |
1,965,873 |
||||||
Total liabilities |
13,216,745 |
12,909,304 |
||||||
Commitments and contingencies |
||||||||
Equity |
||||||||
|
||||||||
Common stock |
152,061 |
152,061 |
||||||
Additional paid-in capital |
2,176,243 |
2,143,520 |
||||||
Retained earnings |
28,762,045 |
24,754,873 |
||||||
Accumulated other comprehensive loss, net of income taxes |
(162,072) |
(137,517) |
||||||
|
(9,987,643) |
(8,498,243) |
||||||
Total |
20,940,634 |
18,414,694 |
||||||
Noncontrolling interests |
1,183,120 |
1,155,212 |
||||||
Total equity |
22,123,754 |
19,569,906 |
||||||
Total liabilities and equity |
$ |
35,340,499 |
$ |
32,479,210 |
Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
||||||||
Year Ended |
||||||||
2023 |
2022 |
|||||||
Operating activities: |
||||||||
Net earnings before noncontrolling interests |
$ |
4,912,791 |
$ |
8,079,640 |
||||
Adjustments: |
||||||||
Depreciation |
930,585 |
826,692 |
||||||
Amortization |
237,730 |
234,942 |
||||||
Stock-based compensation |
130,162 |
136,834 |
||||||
Deferred income taxes |
21,419 |
(46,849) |
||||||
Distributions from affiliates |
33,621 |
57,071 |
||||||
Equity in earnings of unconsolidated affiliates |
(12,783) |
(10,714) |
||||||
Losses and impairments of assets |
— |
101,756 |
||||||
Changes in assets and liabilities (exclusive of acquisitions and dispositions): |
||||||||
Accounts receivable |
663,825 |
501,225 |
||||||
Inventories |
(75,042) |
962,424 |
||||||
Accounts payable |
361,146 |
(496,234) |
||||||
Federal income taxes |
188,344 |
(337,359) |
||||||
Salaries, wages and related accruals |
(290,859) |
155,005 |
||||||
Other operating activities |
10,992 |
(92,379) |
||||||
Cash provided by operating activities |
7,111,931 |
10,072,054 |
||||||
Investing activities: |
||||||||
Capital expenditures |
(2,214,157) |
(1,947,897) |
||||||
Investment in and advances to affiliates |
(35,137) |
(258) |
||||||
Sale of business |
— |
99,681 |
||||||
Disposition of plant and equipment |
14,907 |
32,277 |
||||||
Acquisitions (net of cash acquired) |
(70,824) |
(3,553,191) |
||||||
Purchases of investments |
(1,471,528) |
(913,898) |
||||||
Proceeds from the sale of investments |
1,317,308 |
590,173 |
||||||
Other investing activities |
(37,000) |
(9,596) |
||||||
Cash used in investing activities |
(2,496,431) |
(5,702,709) |
||||||
Financing activities: |
||||||||
Net change in short-term debt |
(24,870) |
(58,642) |
||||||
Proceeds from issuance of long-term debt, net of discount |
— |
2,091,934 |
||||||
Repayment of long-term debt |
(10,000) |
(1,111,000) |
||||||
Bond issuance costs |
— |
(13,138) |
||||||
Proceeds from exercise of stock options |
11,731 |
22,852 |
||||||
Payment of tax withholdings on certain stock-based compensation |
(49,318) |
(64,079) |
||||||
Distributions to noncontrolling interests |
(435,047) |
(332,293) |
||||||
Cash dividends |
(514,534) |
(533,589) |
||||||
Acquisition of treasury stock |
(1,553,933) |
(2,762,568) |
||||||
Proceeds from government incentives |
— |
275,000 |
||||||
Other financing activities |
(16,840) |
(25,340) |
||||||
Cash used in financing activities |
(2,592,811) |
(2,510,863) |
||||||
Effect of exchange rate changes on cash |
2,883 |
(5,920) |
||||||
Increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents |
2,025,572 |
1,852,562 |
||||||
Cash and cash equivalents and restricted cash and cash equivalents - beginning of year |
4,361,220 |
2,508,658 |
||||||
Cash and cash equivalents and restricted cash and cash equivalents - end of year |
$ |
6,386,792 |
$ |
4,361,220 |
||||
Non-cash investing activity: |
||||||||
Change in accrued plant and equipment purchases |
$ |
1,053 |
$ |
4,568 |
Non-GAAP Financial Measures |
||||||||
Reconciliation of EBITDA (Unaudited) |
||||||||
(In thousands) |
||||||||
Three months (13 weeks) ended |
Twelve months (52 weeks) ended |
|||||||
|
|
|||||||
Net earnings before noncontrolling interests |
$ |
872,832 |
$ |
4,912,791 |
||||
Depreciation |
249,432 |
930,585 |
||||||
Amortization |
62,029 |
237,730 |
||||||
Interest income, net |
(30,280) |
(29,632) |
||||||
Provision for income taxes |
205,277 |
1,359,966 |
||||||
EBITDA |
$ |
1,359,290 |
$ |
7,411,440 |
View original content:https://www.prnewswire.com/news-releases/nucor-reports-results-for-the-fourth-quarter-and-full-year-2023-302047108.html
SOURCE
For Investor/Analyst Inquiries - Jack Sullivan, 704-264-8942, or Paul Donnelly, 704-264-8807; For Media Inquiries - Katherine Miller, 704-353-9015