Nucor Corporation Reports Third Quarter 2024 Financial Results
Nucor Corporation (NYSE: NUE) has announced its financial results for the third quarter of 2024, showcasing a mixed performance amid challenging market conditions.
Key Financial Metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 | YoY Change | QoQ Change | Consensus Estimate |
|---|---|---|---|---|---|---|
| Total Revenue (Billion USD) | 7.44 | 8.08 | 8.78 | -15% | -8% | 7.24 |
| Earnings Per Share (EPS) (USD) | 1.05 | 2.68 | 4.57 | -77% | -61% | 1.40 |
| Adjusted EPS (USD) | 1.49 | - | - | - | - | 1.47 |
Nucor's third-quarter revenue of $7.44 billion exceeded analyst expectations of $7.24 billion, despite a 15% year-over-year decline. The company's EPS of $1.05 also surpassed the consensus estimate of $1.40, although it marked a significant decrease from the previous year's $4.57. The adjusted EPS, accounting for asset impairment costs, stood at $1.49, slightly above the expected $1.47.
Segment Revenue Performance:
| Segment | Q3 2024 Earnings (Million USD) | Q3 2023 Earnings (Million USD) | YoY Change | Previous Guidance |
|---|---|---|---|---|
| Steel Mills | 309.1 | 882.6 | -65% | - |
| Steel Products | 314.0 | 806.7 | -61% | - |
| Raw Materials | (66.3) | 71.4 | - | - |
The steel mills and steel products segments experienced significant declines in earnings due to lower average selling prices and volumes. The raw materials segment reported a loss, primarily due to non-cash impairment charges.
Operational Data:
| Operational Metric | Q3 2024 | Q2 2024 | Q3 2023 | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Total Tons Shipped (Million Tons) | 6.20 | 6.24 | 6.24 | -1% | -1% |
| Average Scrap Cost (USD per Ton) | 378 | 396 | 415 | -9% | -5% |
Nucor shipped 6.20 million tons to outside customers, slightly below the previous quarter and the same period last year. The average scrap cost decreased both year-over-year and quarter-over-quarter.
Management Commentary:
Leon Topalian, Nucor's Chair, President, and CEO, expressed gratitude to the Nucor team for their safety performance and cash generation capabilities. He emphasized the company's market leadership, product diversity, and strong balance sheet as key enablers for providing shareholder returns and executing growth strategies amidst market uncertainties.
Dividends and Share Repurchase Program:
Nucor declared a cash dividend of $0.54 per share, payable on November 8, 2024. The company repurchased approximately 2.5 million shares during the quarter, with $1.42 billion remaining under its share repurchase authorization.
Forward Guidance:
Nucor anticipates a decrease in net earnings for the fourth quarter of 2024 compared to the third quarter, driven by expected declines in the steel mills and steel products segments due to lower selling prices and volumes.
Stock Price Movement:
Following the earnings release, Nucor's stock price experienced a decline of approximately 1.35%, reflecting investor reactions to the mixed financial results and cautious outlook for the upcoming quarter.
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