Nucor sees slimmer Q3 profits

Nucor Corp. has reported third quarter 2024 net earnings of nearly $250 million, down 78 percent from one year earlier and down 61 percent from the prior quarter.

In addition to reporting a net earnings figure for its most recent quarter of $249.9 million ($1.05 per share), Nucor reports adjusted net earnings attributable to stockholders of $353.0, or $1.49 per share.

“Reflected in the third quarter 2024 losses and impairments of assets are noncash charges of $83 million, or 27 cents per diluted share, and $40 million, or 17 cents per diluted share, related to the impairment of certain non-current assets in the raw materials and steel products segments, respectively," the Charlotte, North Carolina-based electric arc furnace (EAF) steelmaker says.

With the first nine months of 2024 in the books, Nucor reports consolidated net earnings attributable to Nucor stockholders of $1.74 billion, or $7.22 per share, compares with a figure of $3.74 billion, or $14.83 per diluted share, in the first nine months of last year. The year-to-date earnings total is down by 53 percent.

“Nucor’s market leadership, product diversity and strong balance sheet enable us to provide meaningful returns to shareholders and execute our growth strategy even in the face of market uncertainty,” Nucor President and CEO Leon Topalian says.

Nucor's pre-operating and start-up costs related to the for such projects in the most recent quarter were approximately $168 million, or 54 cents per diluted share, compared with $101 million, or 31 cents per diluted share, one year ago.

The steelmaker, which has put an emphasis on expanding into vertical markets upstream and downstream from its mills, says the largest driver for the decrease in earnings in the third quarter of 2024 compared with the second quarter is the decreased earnings of the steel mills segment, due primarily to lower average selling prices.

“Earnings in the raw materials segment are lower in the third quarter of 2024 as compared to the second quarter of 2024 due primarily to the noncash impairment charge taken in the third quarter of 2024," the company says. That segment includes the production and sale of direct-reduced iron (DRI) and the firm’s David J. Joseph Co. (DJJ) metals recycling operations.

The company says the average scrap and scrap substitute cost per gross ton used by its mills in the third quarter of 2024 was $378, a 5 percent decrease compared with $396 in the prior quarter and a 9 percent decrease compared to $415 in the third quarter of 2023.

On the shipments front, Nucor reports its total steel mill shipments in the third quarter of 2024 decreased 3 percent compared with the prior quarter and were comparable to shipments one year ago.

“Downstream steel product shipments to outside customers in the third quarter of 2024 decreased 6 percent compared with the second quarter of 2024 and decreased 11 percent compared with the third quarter of 2023,” Nucor says.

Looking ahead, the company expects consolidated net earnings to decrease again in the fourth quarter of 2024.

“The largest driver for the expected decrease in earnings in the fourth quarter of 2024 is the decreased earnings of the steel mills segment caused by lower average selling prices and decreased volumes," Nucor says. "The earnings of the raw materials segment are expected to increase in the fourth quarter of 2024 as compared to the third quarter of 2024 (excluding the impairment charge taken during the third quarter of 2024).”

In its initial comments on the third quarter of 2023, Nucor does not provide details on the impairment charges, although more information could be disclosed during the firm’s earnings conference call Oct. 22.