Nucor Sees Lower Q3 Earnings, Sheet Mills Take a Hit

Nucor expects third-quarter earnings to be lower sequentially and on-year, the steelmaker said in earnings guidance on Thursday.

The company reported it expects earnings in the quarter ended Sept. 30 to be in the range of $4.10 to $4.20 per diluted share. This compares with net earnings of $5.81 per diluted share in Q2’23 and $6.50 per diluted share a year earlier.

“We expect earnings for the steel mills segment to decline in the third quarter of 2023 as compared to the second quarter of 2023 primarily due to lower pricing, and to a lesser extent, volumes,” Nucor said in a statement.

The Charlotte, N.C.- based steelmaker said the largest hit on Q3 earnings is expected to occur at its sheet mills.

Also, the steel products segment’s earnings are expected to decrease in Q3’23 vs. the previous quarter “due to lower realized prices and volumes.”

Likewise, earnings for the raw materials segment are expected to fall from Q2’23. Nucor cited “margin compression at our DRI (direct-reduced iron) facilities and scrap processing operations.”

The company said it will release its Q3 earnings before the markets open on Tuesday, Oct. 24.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.