Nucor posts lower Q2 earnings, predicts tough Q3

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%

(in millions of dollars except per share)

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

Michael Cowden is editor-in-chief for Steel Market Update. Cowden has covered the steel industry since 2007. He specializes in flat-rolled steel but has also reported on steel long products, steel pipe and tube, and aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.