Steel Mills
Nucor Posts Record Quarterly Results With Earnings of $2.56 Billion
Written by Laura Miller
July 21, 2022
Nucor Corp. experienced another record quarter on strong shipments and steel prices. The Charlotte, N.C.-based steel company saw robust demand from the nonresidential construction markets, with notable profitability at its bar and plate mills as well as within its raw materials segment.
Although a decrease is expected in the current quarter’s earnings, profitability should remain strong as demand remains stable and resilient, the company said in its Q2 earnings report.
Lower sequential shipments and selling prices are expected from its sheet and plate mills in the current quarter, while earnings within the raw materials segment should improve on higher DRI pricing.
Nucor’s earnings totaled $2.56 billion on the quarter, an increase from the $2.1 billion posted in the first quarter and the $1.51 billion seen in Q2 2021. Q2 net sales rose 34% year-on-year to reach $11.79 billion.
Compared to the same quarter last year, shipments of sheet products were 1% higher at more than 2.9 million tons, while most other products saw year-on-year declines. Bar shipments were down 6% to 2.27 million tons, structural shipments were down 8% to 624,000 tons, and plate product shipments fell 21% to 474,000 tons. Shipments of other steel products, meanwhile, rose 21% to 143,000 tons.
Q2 operating rates at the company’s steel mills reached 85%, up from 77% in Q1 but down from 97% in the year-ago quarter.
Earnings per diluted share beat previous estimates, as “Nucor’s second quarter earnings of $9.67 per diluted share and first half earnings of $17.30 per diluted share both represent new records. Nucor’s differentiated business model is yielding exceptional results,” president and CEO Leon Topalian said.
“We believe that 2022 will be the most profitable year in Nucor’s history,” Topalian noted.
By Laura Miller, Laura@SteelMarketUpdate.com
Laura Miller
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