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
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.
ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).
Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!
AISI: Domestic steel production ticks up
US raw steel production ticked up in the week ending on Sept. 6 after a decrease the week before, according to the most recent data from the American Iron and Steel Institute (AISI).