Steel Mills

Nucor warns of weaker Q2 earnings on lower prices, volumes

June 14, 2024

Nucor Corp. has guided to much lower second-quarter earnings, as profitability in its steel mills segment suffers due to lower prices and volumes.

The Charlotte, N.C.-based company said on Friday it expects Q2 earnings in the range of $2.20 to $2.30 per diluted share.

This would represent a decline of over 30% from earnings of $3.46/diluted share, or $844.8 million, in the prior quarter and of more than 60% from the year-ago quarter when income reached $5.81/diluted share, or $1.461 billion.

The anticipated earnings decline is chiefly due to lower average selling prices from its steel mills and, to a lesser degree, lower steel volumes, the company said.

According to SMU’s files, Q2 prices through June 11 for hot-rolled coil and plate, averaging $786 per short ton (st) and $1,182/st, respectively, are down 15% and 11% from Q1.

Nucor said earnings in its steel products segment will also be lower, but higher volumes should partially offset lower prices. The segment includes Nucor’s pipe and tube, decking, joists, overhead doors, rebar fabrication, metal building systems, and other businesses.

Meanwhile, the raw materials segment, which includes the David J. Joseph Co., should have a sequentially better quarter, driven by higher profits from Nucor’s two direct-reduced iron (DRI) facilities in Louisiana and Trinidad and Tobago.

Nucor will release its full Q2 earnings report after the markets close on July 22.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. Since 2007, she has held various editorial and marketing positions with steel industry publications, associations, and mills. In 2021, after a five-year hiatus working across other industries, she returned to steel trade journalism, joining SMU in 2022. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.