Steel Mills

Nucor posts lower Q2 earnings, predicts tough Q3
Written by Michael Cowden
July 22, 2024
Nucor
Second quarter ended June 29 | 2024 | 2023 | % Change |
---|---|---|---|
Net sales | $8,077.2 | $9,523.3 | -15.2% |
Net earnings | $645.2 | $1,461.4 | -55.9% |
Per diluted share | $2.68 | $5.81 | -53.9% |
Six months ended June 29 | |||
Net sales | $16,214.3 | $18,233.2 | -11.1% |
Net earnings | $1,490.1 | $2,597.9 | -42.6% |
Per diluted share | $6.14 | $10.26 | -40.2% |
Nucor recorded lower second-quarter earnings on falling steel prices.
And the Charlotte, N.C.-based steelmaker predicted that profits would be lower still in the third quarter, primarily because of weaker results from its steel mills divisions.
Recall that Nucor has three business units: steel mills, raw materials, and downstream steel products.
“While market conditions have softened compared to recent record-setting years, Nucor remains focused on its long-term growth strategy,” company Chair, President, and CEO Leon Topalian said in a statement.
That statement was released with earnings data after the close of markets on Monday.
All told, Nucor posted net earnings of $645.2 million in Q2’24, down nearly 56% from $1.46 million in the Q2’23. Revenue fell 15.2% to approximately $8.08 billion in the same comparison.
Average sales prices per ton slipped 2% in Q2’24 compared to Q1’24 and were down 5% compared to Q2’23, Nucor said.
The company partially offset those declines with increased sales volumes. Nucor said it shipped roughly 6.29 million tons to outside customers in Q2’24, up 1% from the first quarter. But that figure was nonetheless off 5% compared to Q2’23.
Meanwhile, operating rates at Nucor’s mills fell to 75% in Q2’24, down from 82% in Q1’24 and down from 84% in Q2’23.
On the raw materials side, Nucor recorded average prices for scrap and scrap substitutes (DRI, for example) of $396 per gross ton (gt) in Q2’24. That’s down 6% from $421/gt in Q1’24 and down 13% versus $455/gt in Q2’23.

Michael Cowden
Read more from Michael CowdenLatest in Steel Mills

Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.

Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.

AHMSA opens doors to potential buyers as $1.3B asset auction nears
AHMSA is opening its doors to potential buyers to tour its steel plant and mining operations in northern Mexico in preparation for the next stage of its bankruptcy process: the auction of its assets.

USW seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.

Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.