CHARLOTTE, N.C., July 21, 2022 /PRNewswire/ -- Nucor Corporation (NYSE:NUE) today announced record quarterly consolidated net earnings of $2.56 billion, or $9.67 per diluted share, for the second quarter of 2022. By comparison, Nucor reported consolidated net earnings of $2.10 billion, or $7.67 per diluted share, for the first quarter of 2022 and $1.51 billion, or $5.04 per diluted share, for the second quarter of 2021.

In the first six months of 2022, Nucor reported consolidated net earnings of $4.66 billion, or $17.30 per diluted share, compared with consolidated net earnings of $2.45 billion, or $8.13 per diluted share, in the first six months of 2021.

"Nucor's second quarter earnings of $9.67 per diluted share and first half earnings of $17.30 per diluted share both represent new records. Nucor's differentiated business model is yielding exceptional results. I would like to congratulate our teammates for delivering world class performance in safety and profitability while providing exceptional customer service," said Leon Topalian, Nucor's President and Chief Executive Officer. "Our team is focused on delivering the safest and most profitable year in our history!"

Selected Segment Data

Earnings (loss) before income taxes and noncontrolling interests by segment for the second quarter and first six months of 2022 and 2021 were as follows (in thousands):

Three Months (13 Weeks) Ended

Six Months (26 Weeks) Ended

July 2, 2022

July 3, 2021

July 2, 2022

July 3, 2021

Steel mills

2,815,723

2,174,807

5,394,577

3,489,781

Steel products

1,129,932

259,330

1,814,799

471,142

Raw materials

263,598

120,143

359,451

343,378

Corporate/eliminations

(718,851)

(528,532)

(1,180,310)

(980,307)

3,490,402

2,025,748

6,388,517

3,323,994

Financial Review

Nucor's consolidated net sales increased 12% to $11.79 billion in the second quarter of 2022 compared with $10.49 billion in the first quarter of 2022 and increased 34% compared with $8.79 billion in the second quarter of 2021. Average sales price per ton in the second quarter of 2022 increased 3% compared with the first quarter of 2022 and increased 44% compared with the second quarter of 2021. A total of 6,977,000 tons were shipped to outside customers in the second quarter of 2022, a 9% increase from the first quarter of 2022 and a 7% decrease from the second quarter of 2021. Total steel mill shipments in the second quarter of 2022 increased 11% as compared to the first quarter of 2022 and decreased 4% as compared to the second quarter of 2021. Steel mill shipments to internal customers represented 22% of total steel mill shipments in the second quarter of 2022, compared with 22% in the first quarter of 2022 and 20% in the second quarter of 2021. Downstream steel product shipments to outside customers in the second quarter of 2022 increased 6% from the first quarter of 2022 and were similar to the second quarter of 2021.

In the first six months of 2022, Nucor's consolidated net sales of $22.29 billion were an increase of 41% compared with consolidated net sales of $15.81 billion reported in the first six months of 2021. Total tons shipped to outside customers in the first six months of 2022 were 13,371,000, a decrease of 9% from the first six months of 2021, while the average sales price per ton in the first six months of 2022 increased 55% from the first six months of 2021.

The average scrap and scrap substitute cost per gross ton used in the second quarter of 2022 was $534, an 8% increase compared to $495 in the first quarter of 2022 and a 17% increase compared to $457 in the second quarter of 2021. The average scrap and scrap substitute cost per gross ton used in the first six months of 2022 was $516, a 20% increase compared to $431 in the first six months of 2021.

Pre-operating and start-up costs related to the Company's growth projects were approximately $60 million, or $0.17 per diluted share, in the second quarter of 2022, compared with approximately $62 million, or $0.17 per diluted share, in the first quarter of 2022 and approximately $22 million, or $0.06 per diluted share, in the second quarter of 2021.

In the first six months of 2022, pre-operating and start-up costs related to the Company's growth projects were approximately $122 million, or $0.35 per diluted share, compared with approximately $41 million, or $0.10 per diluted share, in the first six months of 2021.

Overall operating rates at the Company's steel mills increased to 85% in the second quarter of 2022 as compared to 77% in the first quarter of 2022 and decreased compared to 97% in the second quarter of 2021. Operating rates in the first six months of 2022 decreased to 81% as compared to 96% in the first six months of 2021.

Financial Strength

At the end of the second quarter of 2022, we had $2.45 billion in cash and cash equivalents, short-term investments and restricted cash and cash equivalents on hand. The Company's $1.75 billion revolving credit facility remains undrawn and does not expire until November 2026. Nucor continues to have the strongest credit rating in the North American steel sector (Baa1/A-) with stable outlooks at both Moody's and Standard & Poor's.

Commitment to Returning Capital to Stockholders

During the second quarter of 2022, Nucor repurchased approximately 5.1 million shares of its common stock at an average price of $157.37 per share (12.1 million shares year-to-date at an average price of $140.59 per share). As of July 2, 2022, Nucor had approximately 262,000,000 shares outstanding and approximately $2.14 billion remaining for repurchases under its existing authorized share repurchase program. This share repurchase authorization is discretionary and has no scheduled expiration date.

On June 9, 2022, Nucor's board of directors declared a cash dividend of $0.50 per share. This cash dividend is payable on August 11, 2022 to stockholders of record as of June 30, 2022 and is Nucor's 197^th consecutive quarterly cash dividend.

Second Quarter of 2022 Analysis

Second quarter earnings were driven by increased profitability in the steel products segment, which continued to benefit from robust demand in nonresidential construction markets. In addition, the steel mills segment earnings strengthened due primarily to increased profitability at our bar and plate mills. Similarly, Nucor's raw materials segment generated increased profits in the second quarter due to relatively higher selling prices for both direct reduced iron (DRI) and scrap. The second quarter also saw the closing of Nucor's acquisition of C.H.I. Overhead Doors, LLC.

Third Quarter of 2022 Outlook

As we enter the third quarter, demand remains stable and resilient across the major end-use markets we serve, and customer inventory levels appear right-sized relative to economic conditions. Though we expect a decrease from the record-setting second quarter, we expect another strong quarter of profitability in the third quarter of 2022. We believe that 2022 will be the most profitable year in Nucor's history.

We expect the steel mills segment earnings to be sequentially lower in the third quarter of 2022, due to lower expected shipment volumes and average selling prices, particularly at our sheet and plate mills. The steel products segment is expected to have another very strong quarter in the third quarter of 2022, with earnings roughly in-line with the second quarter of 2022. Raw materials segment earnings are expected to improve in the third quarter of 2022 due to higher realized pricing at our DRI facilities.

Earnings Conference Call

You are invited to listen to the live broadcast of Nucor's conference call during which management will discuss Nucor's second quarter results on July 21, 2022 at 2:00 p.m. Eastern Time. The conference call will be available over the Internet at www.nucor.com, under Investors.

About Nucor

Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company and its affiliates, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.

Forward-Looking Statements

Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties which we expect will or may occur in the future and may impact our business, financial condition and results of operations. The words "anticipate," "believe," "expect," "intend," "project," "may," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. These forward-looking statements reflect the Company's best judgment based on current information, and, although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this news release. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including pressure from imports and substitute materials; (2) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to prevailing market steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) the availability and cost of electricity and natural gas, which could negatively affect our cost of steel production or result in a delay or cancellation of existing or future drilling within our natural gas drilling programs; (5) critical equipment failures and business interruptions; (6) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the United States; (7) impairment in the recorded value of inventory, equity investments, fixed assets, goodwill or other long-lived assets; (8) uncertainties surrounding the global economy, including excess world capacity for steel production, inflation and interest rate changes; (9) fluctuations in currency conversion rates; (10) significant changes in laws or government regulations affecting environmental compliance, including legislation and regulations that result in greater regulation of greenhouse gas emissions that could increase our energy costs, capital expenditures and operating costs or cause one or more of our permits to be revoked or make it more difficult to obtain permit modifications; (11) the cyclical nature of the steel industry; (12) capital investments and their impact on our performance; (13) our safety performance; (14) our ability to integrate the operations of C.H.I. Overhead Doors, LLC and certain of its affiliates; and (15) the impact of the COVID-19 pandemic and any variants of the virus. These and other factors are discussed in Nucor's regulatory filings with the United States Securities and Exchange Commission, including those in "Item 1A. Risk Factors" of Nucor's Annual Report on Form 10-K for the year ended December 31, 2021. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them, except as may be required by applicable law.

Tonnage Data

(In thousands)

Three Months (13 Weeks) Ended

Six Months (26 Weeks) Ended

July 2, 2022

July 3, 2021

Percent

Change

July 2, 2022

July 3, 2021

Percent

Change

Steel mills total shipments:

Sheet

2,934

2,913

5,319

5,840

-9

Bars

2,273

2,423

-6

4,559

4,742

-4

Structural

624

681

-8

1,264

1,304

-3

Plate

474

599

-21

872

1,195

-27

Other

143

118

248

197

6,448

6,734

-4

12,262

13,278

-8

Sales tons to outside customers:

Steel mills

5,041

5,356

-6

9,580

10,546

-9

Joist

158

167

-5

337

339

-1

Deck

123

130

-5

259

265

-2

Cold finished

123

128

-4

256

260

-2

Rebar fabrication products

339

338

630

620

Piling

119

171

-30

230

307

-25

Tubular products

274

269

504

519

-3

Other steel products

175

109

330

209

Raw materials

625

814

-23

1,245

1,593

-22

6,977

7,482

-7

13,371

14,658

-9

Condensed Consolidated Statements of Earnings (Unaudited)

(In thousands, except per share data)

Three Months (13 Weeks) Ended

Six Months (26 Weeks) Ended

July 2, 2022

July 3, 2021

July 2, 2022

July 3, 2021

Net sales

11,794,474

8,789,164

22,287,756

15,806,304

Costs, expenses and other:

Cost of products sold

7,690,211

6,315,661

14,725,354

11,710,364

Marketing, administrative and other expenses

563,211

387,070

1,087,795

678,194

Equity in earnings of unconsolidated affiliates

(7,113)

(19,403)

(14,808)

(32,642)

Losses on assets

44,308

50,970

Interest expense, net

57,763

35,780

100,898

75,424

8,304,072

6,763,416

15,899,239

12,482,310

Earnings before income taxes and noncontrolling interests

3,490,402

2,025,748

6,388,517

3,323,994

Provision for income taxes

763,165

454,289

1,434,165

765,021

Net earnings

2,727,237

1,571,459

4,954,352

2,558,973

Earnings attributable to noncontrolling interests

166,004

64,591

297,496

109,673

Net earnings attributable to Nucor stockholders

2,561,233

1,506,868

4,656,856

2,449,300

Net earnings per share:

Basic

9.69

5.05

17.34

8.14

Diluted

9.67

5.04

17.30

8.13

Average shares outstanding:

Basic

263,221

296,817

267,416

299,359

Diluted

263,719

297,529

268,066

299,738

Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)

	July 2, 2022		Dec 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	2,002,708	$	2,364,858
Short-term investments		363,287		253,005
Accounts receivable, net		4,749,600		3,853,972
Inventories, net		6,579,142		6,011,182
Other current assets		339,074		316,540
Total current assets		14,033,811		12,799,557
Property, plant and equipment, net		9,213,600		8,114,818
Restricted cash and cash equivalents		88,262		143,800
Goodwill		3,929,503		2,827,344
Other intangible assets, net		3,429,149		1,103,759
Other assets		974,132		833,794
Total assets	$	31,668,457	$	25,823,072
LIABILITIES
Current liabilities:
Short-term debt	$	100,509	$	107,723
Current portion of long-term debt and finance lease obligations		629,171		615,678
Accounts payable		2,315,796		1,974,041
Salaries, wages and related accruals		1,239,617		1,495,166
Accrued expenses and other current liabilities		1,074,108		964,805
Total current liabilities		5,359,201		5,157,413
Long-term debt and finance lease obligations due after one year		6,621,685		4,961,410
Deferred credits and other liabilities		1,834,763		1,100,455
Total liabilities		13,815,649		11,219,278
Commitments and contingencies
EQUITY
Nucor stockholders' equity:
Common stock		152,061		152,061
Additional paid-in capital		2,115,178		2,140,608
Retained earnings		22,064,383		17,674,100
Accumulated other comprehensive loss, net of income taxes		(70,810)		(115,282)
Treasury stock		(7,452,168)		(5,835,098)
Total Nucor stockholders' equity		16,808,644		14,016,389
Noncontrolling interests		1,044,164		587,405
Total equity		17,852,808		14,603,794
Total liabilities and equity	$	31,668,457	$	25,823,072

Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)

	Six Months (26 Weeks) Ended
	July 2, 2022		July 3, 2021
Operating activities:
Net earnings	$	4,954,352	$	2,558,973
Adjustments:
Depreciation		397,270		362,492
Amortization		87,267		41,858
Stock-based compensation		74,219		66,729
Deferred income taxes		(36,220)		102,367
Distributions from affiliates		2,287		180
Equity in earnings of unconsolidated affiliates		(14,808)		(32,642)
Losses on assets		-		50,970
Changes in assets and liabilities (exclusive of acquisitions and dispositions):
Accounts receivable		(648,569)		(1,093,021)
Inventories		(157,976)		(1,673,962)
Accounts payable		198,062		726,649
Federal income taxes		33,441		290,287
Salaries, wages and related accruals		(252,758)		385,265
Other operating activities		97,174		97,041
Cash provided by operating activities		4,733,741		1,883,186
Investing activities:
Capital expenditures		(968,795)		(702,378)
Investment in and advances to affiliates		(227)		(169)
Disposition of plant and equipment		15,996		10,665
Acquisitions (net of cash acquired)		(3,465,866)		300
Purchases of investments		(330,278)		(357,917)
Proceeds from the sale of investments		219,996		367,512
Other investing activities		(7,096)		587
Cash used in investing activities		(4,536,270)		(681,400)
Financing activities:
Net change in short-term debt		(7,214)		42,780
Proceeds from issuance of long-term debt, net of discount		2,091,934		-
Repayment of long-term debt		(506,000)		-
Bond issuance costs		(13,138)		-
Proceeds from exercise of stock options		18,819		128,800
Payment of tax withholdings on certain stock-based compensation		(58,218)		(64,416)
Distributions to noncontrolling interests		(268,535)		(97,196)
Cash dividends		(272,038)		(246,539)
Acquisition of treasury stock		(1,707,893)		(916,145)
Proceeds from government incentives		125,000		-
Other financing activities		(17,059)		(5,072)
Cash used in financing activities		(614,342)		(1,157,788)
Effect of exchange rate changes on cash		(817)		8,079
(Decrease) increase in cash and cash equivalents and restricted cash and cash equivalents		(417,688)		52,077
Cash and cash equivalents and restricted cash and cash equivalents - beginning of year		2,508,658		2,754,929
Cash and cash equivalents and restricted cash and cash equivalents - end of six months	$	2,090,970	$	2,807,006
Non-cash investing activity:
Change in accrued plant and equipment purchases	$	(23,583)	$	44,754

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SOURCE Nucor Corporation

Nucor Reports Record Quarterly Earnings for the Second Quarter of 2022