Steel Mills
Nucor Posts Lower Q3 Profit on Weaker Steel Prices
Written by Michael Cowden
October 23, 2023
Nucor Corp.
| Third quarter ended Sept. 30 | 2023 | 2022 | % Change |
|---|---|---|---|
| Net sales | $8,775.7 | $10,500.7 | -16.4% |
| Net income | $1,141.5 | $1,694.7 | -32.6% |
| Per diluted share | $4.57 | $6.50 | -30% |
| Nine months ended Sept. 30 | |||
| Net sales | $27,009.0 | $32,788.5 | -17.6% |
| Net income | $3,739.4 | $6.351.6 | -41.1% |
| Per diluted share | $14.83 | $23.85 | -37.8% |
Nucor reported a drop in third-quarter profits on lower steel prices, with the biggest hit to earnings occurring at its sheet mills.
And the Charlotte, N.C.-based electric-arc furnace (EAF) steelmaker doesn’t see things improving in the fourth quarter.
“We expect earnings in the fourth quarter of 2023 to decrease compared to the third quarter of 2023 due primarily to lower pricing across all three operating segments, and, to a lesser extent, decreased volumes,” the company said in commentary released with earnings data after the close of markets on Monday, Oct. 23.
Nucor’s three operating divisions are as follows: raw materials, which includes its scrap recycling and direct-reduced iron (DRI) operations; steel mills, which make things such as sheet, plate, and rebar; and steel products, which includes downstream offerings such as piling and fabrications.
All told, Nucor recorded net income of $1.14 billion in the third quarter of 2023, down 33% from $1.69 billion in the same quarter last year. Net sales fell 16% to $8.78 billion over the same period. (See chart above.)
The company’s steel mills division posted a steeper decline. Earnings before income taxes and noncontrolling interests for its steel mills were $882.6 million in Q3’23, down 31% from $1.29 billion in Q3’22.
Nucor also reported 5.75 million tons shipped from its steel mills in Q3’23, down 2% from 5.87 million tons shipped in Q3’22. But sheet mill shipments (up 2% to 2.72 million tons) and plate mill shipments (up 21% to 460,000 tons) bucked that overall trend.
The company made no mention of the U.S. Steel sales process in its earnings release.
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
Cliffs steadfast in commitment to Middletown decarb project
Cleveland-Cliffs Inc. on Monday reiterated its commitment to a major decarbonization project at its Middletown Works in Ohio, despite an earlier report suggesting otherwise.
Nucor expects lower steel prices to drive Q3 earnings decline
Nucor blamed lower steel prices for weaker third-quarter results in earnings guidance released on Tuesday.
SDI guides toward lower Q3 earnings on weaker flat-rolled steel prices
Steel Dynamics Inc. (SDI) expects lower third-quarter earnings on the heels of “meaningfully lower” prices at its flat-rolled steel operations. The Fort Wayne, Ind.-based steelmaker expects Q3’24 earnings of $1.94 to $1.98 per diluted share, according to figures released on Monday. That’s down from $2.72 per share in Q2’24 and down from $3.47 per share in Q3’23.
Stelco shareholders OK $2.5B sale to Cliffs
Stelco shareholders voted overwhelmingly on Monday to OK the $2.5-billion sale of the Canadian flat-rolled steelmaker to Cleveland-Cliffs. Indeed, 99.97% of those who cast ballots voted to approve the deal, according the Hamilton, Ontario-based steelmaker.
White House may delay decision on USS-Nippon deal until after election: report
The White House decision on blocking Nippon Steel’s play for Pittsburgh-based U.S. Steel might be pushed back until after the upcoming presidential election, according to a report in the Washington Post.