UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. |
On October 23, 2023, Nucor Corporation issued a news release reporting its financial results for the quarter ended September 30, 2023. A copy of the news release is furnished as Exhibit 99.1 and incorporated herein by reference.
| Item 7.01. | Regulation FD Disclosure. |
On October 23, 2023, Nucor Corporation, in conjunction with the issuance of the aforementioned news release, posted an investor presentation to its Investor Relations website. A copy of the investor presentation is furnished as Exhibit 99.2 and incorporated herein by reference.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
| 99.1 | News Release of Nucor Corporation dated October 23, 2023 | |
| 99.2 | Investor Presentation dated October 23, 2023 | |
| 104 | Cover Page from this Current Report on Form 8-K, formatted in Inline XBRL | |
The information contained in this Current Report on Form 8-K, including the exhibits attached hereto, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. Furthermore, the information contained in this Current Report on Form 8-K shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such registration statement or other document.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NUCOR CORPORATION | ||||||
| Date: October 23, 2023 | By: | /s/ Stephen D. Laxton | ||||
| Stephen D. Laxton | ||||||
| Chief Financial Officer, Treasurer and Executive Vice President | ||||||
3
Exhibit 99.1
| News Release |
|
Nucor Reporhts Results for the Third Quarter of 2023
Third Quarter of 2023 Highlights
| • | $4.57 earnings per diluted share for the third quarter, bringing year-to-date diluted EPS to $14.83 |
| • | Net earnings attributable to Nucor stockholders of $1.14 billion |
| • | Net earnings before noncontrolling interests of $1.22 billion; EBITDA of $1.82 billion |
| • | Returned $627 million to stockholders during the quarter through share repurchases and dividends |
CHARLOTTE, N.C. – October 23, 2023 - Nucor Corporation (NYSE: NUE) today announced consolidated net earnings attributable to Nucor stockholders of $1.14 billion, or $4.57 per diluted share, for the third quarter of 2023. By comparison, Nucor reported consolidated net earnings attributable to Nucor stockholders of $1.46 billion, or $5.81 per diluted share, for the second quarter of 2023 and $1.69 billion, or $6.50 per diluted share, for the third quarter of 2022.
In the first nine months of 2023, Nucor reported consolidated net earnings attributable to Nucor stockholders of $3.74 billion, or $14.83 per diluted share, compared with consolidated net earnings attributable to Nucor stockholders of $6.35 billion, or $23.85 per diluted share, in the first nine months of 2022.
“We are on pace to set another safety record for the fifth consecutive year. And with $14.83 of earnings per diluted share for the first nine months of 2023, this already represents the third-best full-year result in Nucor’s history. We believe that our world-class manufacturing team, product diversity, and our sustainable solutions set us up for continued success over the long term,” said Leon Topalian, Nucor’s Chair, President and Chief Executive Officer. “The investments we are making to grow our core businesses and expand into new products continue to generate attractive returns for stockholders.”
Selected Segment Data
Earnings (loss) before income taxes and noncontrolling interests by segment for the third quarter and first nine months of 2023 and 2022 were as follows (in thousands):
| Three Months (13 Weeks) Ended | Nine Months (39 Weeks) Ended | |||||||||||||||
| September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||
| Steel mills |
$ | 882,614 | $ | 1,287,855 | $ | 3,124,549 | $ | 6,682,432 | ||||||||
| Steel products |
806,731 | 1,196,845 | 2,788,322 | 3,011,644 | ||||||||||||
| Raw materials |
71,367 | 279,189 | 267,918 | 638,640 | ||||||||||||
| Corporate/eliminations |
(212,630 | ) | (440,967 | ) | (986,141 | ) | (1,621,277 | ) | ||||||||
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| $ | 1,548,082 | $ | 2,322,922 | $ | 5,194,648 | $ | 8,711,439 | |||||||||
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Page 1 of 10
Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
| News Release |
|
Nucor Reports Results for the Third Quarter of 2023 (Continued)
Financial Review
Nucor’s consolidated net sales decreased 8% to $8.78 billion in the third quarter of 2023 compared with $9.52 billion in the second quarter of 2023 and decreased 16% compared with $10.50 billion in the third quarter of 2022. Average sales price per ton in the third quarter of 2023 decreased 3% compared with the second quarter of 2023 and decreased 14% compared with the third quarter of 2022. A total of 6,240,000 tons were shipped to outside customers in the third quarter of 2023, a 5% decrease from the second quarter of 2023 and a 3% decrease from the third quarter of 2022. Total steel mill shipments in the third quarter of 2023 decreased 4% as compared to the second quarter of 2023 and decreased 2% as compared to the third quarter of 2022. Steel mill shipments to internal customers represented 20% of total steel mill shipments in the third quarter of 2023 and the second quarter of 2023, compared with 22% in the third quarter of 2022. Downstream steel product shipments to outside customers in the third quarter of 2023 decreased 4% from the second quarter of 2023 and decreased 12% from the third quarter of 2022.
In the first nine months of 2023, Nucor’s consolidated net sales of $27.01 billion represented a decrease of 18% compared with consolidated net sales of $32.79 billion reported in the first nine months of 2022. Total tons shipped to outside customers in the first nine months of 2023 were 19,271,000, a decrease of 3% from the first nine months of 2022, and the average sales price per ton in the first nine months of 2023 decreased 15% from the first nine months of 2022.
The average scrap and scrap substitute cost per gross ton used in the third quarter of 2023 was $415, a 9% decrease compared to $455 in the second quarter of 2023 and a 17% decrease compared to $502 in the third quarter of 2022. The average scrap and scrap substitute cost per gross ton used in the first nine months of 2023 was $429, a 16% decrease compared to $511 in the first nine months of 2022.
Pre-operating and start-up costs related to the Company’s growth projects were approximately $101 million, or $0.31 per diluted share, in the third quarter of 2023, compared with approximately $90 million, or $0.27 per diluted share, in the second quarter of 2023 and approximately $52 million, or $0.15 per diluted share, in the third quarter of 2022.
In the first nine months of 2023, pre-operating and start-up costs related to the Company’s growth projects were approximately $273 million, or $0.83 per diluted share, compared with approximately $174 million, or $0.50 per diluted share, in the first nine months of 2022.
Overall operating rates at the Company’s steel mills decreased to 77% in the third quarter of 2023 as compared to 84% in the second quarter of 2023 and 77% in the third quarter of 2022. Operating rates in the first nine months of 2023 were 80%, which was the same as the first nine months of 2022.
Page 2 of 10
Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
| News Release |
|
Nucor Reports Results for the Third Quarter of 2023 (Continued)
Financial Strength
At the end of the third quarter of 2023, we had $6.73 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 (A-/A-/Baa1) with stable outlooks at Standard & Poor’s, Fitch Ratings and Moody’s.
Commitment to Returning Capital to Stockholders
During the third quarter of 2023, Nucor repurchased approximately 3.0 million shares of its common stock at an average price of $168.99 per share (approximately 8.8 million shares during the first nine months of 2023 at an average price of $157.36 per share). On May 11, 2023, Nucor’s board of directors approved a new share repurchase program under which Nucor is authorized to repurchase up to $4.00 billion of Nucor’s common stock and terminated any previously authorized share repurchase programs. As of September 30, 2023, Nucor had approximately 27.0 million shares outstanding and approximately $3.5 billion remaining for repurchases under its authorized share repurchase program. This share repurchase authorization is discretionary and has no scheduled expiration date.
On September 14, 2023, Nucor’s board of directors declared a cash dividend of $0.51 per share. This cash dividend is payable on November 9, 2023 to stockholders of record as of September 29, 2023 and is Nucor’s 202nd consecutive quarterly cash dividend.
Third Quarter of 2023 Analysis
Earnings for the steel mills segment declined in the third quarter of 2023 as compared to the second quarter of 2023 primarily due to lower pricing, and to a lesser extent, decreased volumes. The largest impact on earnings occurred at our sheet mills. The earnings of the steel products segment decreased in the third quarter of 2023 as compared to the second quarter of 2023 also due to lower realized prices and volumes. Earnings for the raw materials segment decreased in the third quarter of 2023 as compared to the second quarter of 2023 due to margin compression at our direct reduced iron, or DRI, facilities and scrap processing operations.
Fourth Quarter of 2023 Outlook
We expect earnings in the fourth quarter of 2023 to decrease compared to the third quarter of 2023 due primarily to lower pricing across all three operating segments, and, to a lesser extent, decreased volumes. In the steel mills segment, we expect the decrease in realized pricing to be most pronounced at our sheet mills. In the steel products segment, we expect decreased earnings due to moderating average selling prices at most of the product groups within the steel products segment and lower volumes. Earnings for the raw materials segment are expected to decrease in the fourth quarter of 2023 as compared to the third quarter of 2023 due to lower pricing for raw materials and planned outages at our DRI facilities.
Page 3 of 10
Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
| News Release |
|
Nucor Reports Results for the Third Quarter of 2023 (Continued)
Earnings Conference Call
You are invited to listen to the live broadcast of Nucor’s conference call during which management will discuss Nucor’s third quarter results on October 24, 2023 at 10:00 a.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; wire and wire mesh; and utility structures. 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.
Non-GAAP Financial Measures
The Company uses certain non-GAAP (Generally Accepted Accounting Principles) financial measures in this news release, including EBITDA. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable financial measure calculated and presented in accordance with GAAP.
We define EBITDA as net earnings before noncontrolling interests, adding back the following items: interest (income) expense, net; provision for income taxes; depreciation; and amortization. The Company believes that this definition of EBITDA is a more relevant supplemental measure of performance. First and second quarter of 2023 EBITDA was $1.89 billion and $2.34 billion, respectively, using this definition. Please note that other companies might define their non-GAAP financial measures differently than we do.
Management presents the non-GAAP financial measure of EBITDA in this news release because it considers it to be an important supplemental measure of performance. Management believes that this non-GAAP financial measure provides additional insight for analysts and investors evaluating the Company’s financial and operational performance by providing a consistent basis of comparison across periods.
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
Page 4 of 10
Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
| News Release |
|
Nucor Reports Results for the Third Quarter of 2023 (Continued)
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 general market conditions, and in particular, 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 and volatility 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 businesses we acquire; and (15) the impact of the COVID-19 pandemic, any variants of the virus, and any other similar pandemic or public health situation. 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, 2022. 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.
Contact Information
For Investor/Analyst Inquiries – Jack Sullivan, 704-264-8942, or Paul Donnelly, 704-264-8807
For Media Inquiries - Katherine Miller, 704-353-9015
Page 5 of 10
Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
| News Release |
|
Nucor Reports Results for the Third Quarter of 2023 (Continued)
Tonnage Data
(In thousands)
| Three Months (13 Weeks) Ended | Nine Months (39 Weeks) Ended | |||||||||||||||||||||||
| September 30, 2023 | October 1, 2022 | Percent Change |
September 30, 2023 | October 1, 2022 | Percent Change |
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| Steel mills total shipments: |
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| Sheet |
2,723 | 2,677 | 2 | % | 8,328 | 7,996 | 4 | % | ||||||||||||||||
| Bars |
2,001 | 2,169 | -8 | % | 6,292 | 6,728 | -6 | % | ||||||||||||||||
| Structural |
530 | 583 | -9 | % | 1,571 | 1,847 | -15 | % | ||||||||||||||||
| Plate |
460 | 379 | 21 | % | 1,434 | 1,251 | 15 | % | ||||||||||||||||
| Other |
32 | 61 | -48 | % | 135 | 309 | -56 | % | ||||||||||||||||
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| 5,746 | 5,869 | -2 | % | 17,760 | 18,131 | -2 | % | |||||||||||||||||
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| Sales tons to outside customers: |
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| Steel mills |
4,578 | 4,553 | 1 | % | 14,156 | 14,133 | — | |||||||||||||||||
| Joist |
127 | 160 | -21 | % | 404 | 497 | -19 | % | ||||||||||||||||
| Deck |
104 | 129 | -19 | % | 310 | 388 | -20 | % | ||||||||||||||||
| Cold finished |
103 | 112 | -8 | % | 332 | 368 | -10 | % | ||||||||||||||||
| Rebar fabrication products |
307 | 350 | -12 | % | 918 | 980 | -6 | % | ||||||||||||||||
| Piling |
117 | 119 | -2 | % | 331 | 349 | -5 | % | ||||||||||||||||
| Tubular products |
223 | 231 | -3 | % | 737 | 735 | — | |||||||||||||||||
| Other steel products |
160 | 190 | -16 | % | 443 | 520 | -15 | % | ||||||||||||||||
| Raw materials |
521 | 571 | -9 | % | 1,640 | 1,816 | -10 | % | ||||||||||||||||
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| 6,240 | 6,415 | -3 | % | 19,271 | 19,786 | -3 | % | |||||||||||||||||
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Page 6 of 10
Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
| News Release |
|
Nucor Reports Results for the Third Quarter of 2023 (Continued)
Condensed Consolidated Statements of Earnings (Unaudited)
(In thousands, except per share data)
| Three Months (13 Weeks) Ended | Nine Months (39 Weeks) Ended | |||||||||||||||
| September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||
| Net sales |
$ | 8,775,734 | $ | 10,500,755 | $ | 27,008,970 | $ | 32,788,511 | ||||||||
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| Costs, expenses and other: |
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| Cost of products sold |
6,854,934 | 7,657,364 | 20,588,294 | 22,382,718 | ||||||||||||
| Marketing, administrative and other expenses |
385,768 | 486,560 | 1,229,051 | 1,574,355 | ||||||||||||
| Equity in losses (earnings) of unconsolidated affiliates |
1,083 | (8,438 | ) | (3,671 | ) | (23,246 | ) | |||||||||
| Interest (income) expense, net |
(14,133 | ) | 42,347 | 648 | 143,245 | |||||||||||
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| 7,227,652 | 8,177,833 | 21,814,322 | 24,077,072 | |||||||||||||
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| Earnings before income taxes and noncontrolling interests |
1,548,082 | 2,322,922 | 5,194,648 | 8,711,439 | ||||||||||||
| Provision for income taxes |
326,827 | 523,879 | 1,154,689 | 1,958,044 | ||||||||||||
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| Net earnings before noncontrolling interests |
1,221,255 | 1,799,043 | 4,039,959 | 6,753,395 | ||||||||||||
| Earnings attributable to noncontrolling interests |
79,749 | 104,295 | 300,557 | 401,791 | ||||||||||||
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| Net earnings attributable to Nucor stockholders |
$ | 1,141,506 | $ | 1,694,748 | $ | 3,739,402 | $ | 6,351,604 | ||||||||
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| Net earnings per share: |
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| Basic |
$ | 4.58 | $ | 6.51 | $ | 14.86 | $ | 23.90 | ||||||||
| Diluted |
$ | 4.57 | $ | 6.50 | $ | 14.83 | $ | 23.85 | ||||||||
| Average shares outstanding: |
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| Basic |
248,504 | 259,102 | 250,752 | 264,655 | ||||||||||||
| Diluted |
248,916 | 259,526 | 251,179 | 265,239 | ||||||||||||
Page 7 of 10
Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
| News Release |
|
Nucor Reports Results for the Third Quarter of 2023 (Continued)
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
| September 30, 2023 | December 31, 2022 | |||||||
| ASSETS |
||||||||
| Current assets: |
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| Cash and cash equivalents |
$ | 5,855,950 | $ | 4,280,852 | ||||
| Short-term investments |
863,140 | 576,946 | ||||||
| Accounts receivable, net |
3,427,697 | 3,591,030 | ||||||
| Inventories, net |
5,246,365 | 5,453,531 | ||||||
| Other current assets |
555,784 | 789,325 | ||||||
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| Total current assets |
15,948,936 | 14,691,684 | ||||||
| Property, plant and equipment, net |
10,355,848 | 9,616,920 | ||||||
| Restricted cash and cash equivalents |
12,832 | 80,368 | ||||||
| Goodwill |
3,922,267 | 3,920,060 | ||||||
| Other intangible assets, net |
3,146,973 | 3,322,265 | ||||||
| Other assets |
880,930 | 847,913 | ||||||
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| Total assets |
$ | 34,267,786 | $ | 32,479,210 | ||||
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| LIABILITIES |
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| Current liabilities: |
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| Short-term debt |
$ | 35,938 | $ | 49,081 | ||||
| Current portion of long-term debt and finance lease obligations |
24,934 | 28,582 | ||||||
| Accounts payable |
1,854,707 | 1,649,523 | ||||||
| Salaries, wages and related accruals |
1,268,771 | 1,654,210 | ||||||
| Accrued expenses and other current liabilities |
1,099,498 | 948,348 | ||||||
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| Total current liabilities |
4,283,848 | 4,329,744 | ||||||
| Long-term debt and finance lease obligations due after one year |
6,620,586 | 6,613,687 | ||||||
| Deferred credits and other liabilities |
1,854,270 | 1,965,873 | ||||||
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| Total liabilities |
12,758,704 | 12,909,304 | ||||||
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| Commitments and contingencies |
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| EQUITY |
||||||||
| Nucor stockholders’ equity: |
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| Common stock |
152,061 | 152,061 | ||||||
| Additional paid-in capital |
2,165,635 | 2,143,520 | ||||||
| Retained earnings |
28,110,225 | 24,754,873 | ||||||
| Accumulated other comprehensive loss, net of income taxes |
(148,827 | ) | (137,517 | ) | ||||
| Treasury stock |
(9,813,377 | ) | (8,498,243 | ) | ||||
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| Total Nucor stockholders’ equity |
20,465,717 | 18,414,694 | ||||||
| Noncontrolling interests |
1,043,365 | 1,155,212 | ||||||
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| Total equity |
21,509,082 | 19,569,906 | ||||||
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| Total liabilities and equity |
$ | 34,267,786 | $ | 32,479,210 | ||||
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Page 8 of 10
Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
| News Release |
|
Nucor Reports Results for the Third Quarter of 2023 (Continued)
Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
| Nine Months (39 Weeks) Ended | ||||||||
| September 30, 2023 | October 1, 2022 | |||||||
| Operating activities: |
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| Net earnings before noncontrolling interests |
$ | 4,039,959 | $ | 6,753,395 | ||||
| Adjustments: |
||||||||
| Depreciation |
681,153 | 609,933 | ||||||
| Amortization |
175,701 | 164,480 | ||||||
| Stock-based compensation |
101,107 | 99,838 | ||||||
| Deferred income taxes |
(25,750 | ) | (33,116 | ) | ||||
| Distributions from affiliates |
18,621 | 25,571 | ||||||
| Equity in earnings of unconsolidated affiliates |
(3,671 | ) | (23,246 | ) | ||||
| Changes in assets and liabilities (exclusive of acquisitions and dispositions): |
||||||||
| Accounts receivable |
171,621 | (104,751 | ) | |||||
| Inventories |
209,056 | 371,068 | ||||||
| Accounts payable |
164,479 | (299,760 | ) | |||||
| Federal income taxes |
240,667 | (302,335 | ) | |||||
| Salaries, wages and related accruals |
(347,026 | ) | 121,243 | |||||
| Other operating activities |
165,692 | 156,201 | ||||||
|
|
|
|
|
|||||
| Cash provided by operating activities |
5,591,609 | 7,538,521 | ||||||
|
|
|
|
|
|||||
| Investing activities: |
||||||||
| Capital expenditures |
(1,496,248 | ) | (1,430,125 | ) | ||||
| Investment in and advances to affiliates |
(35,106 | ) | (246 | ) | ||||
| Sale of business |
— | 99,681 | ||||||
| Disposition of plant and equipment |
8,617 | 27,278 | ||||||
| Acquisitions (net of cash acquired) |
— | (3,549,764 | ) | |||||
| Purchases of investments |
(1,200,136 | ) | (563,770 | ) | ||||
| Proceeds from the sale of investments |
917,332 | 439,348 | ||||||
| Other investing activities |
(35,001 | ) | (9,595 | ) | ||||
|
|
|
|
|
|||||
| Cash used in investing activities |
(1,840,542 | ) | (4,987,193 | ) | ||||
|
|
|
|
|
|||||
| Financing activities: |
||||||||
| Net change in short-term debt |
(13,142 | ) | (43,074 | ) | ||||
| Proceeds from issuance of long-term debt, net of discount |
— | 2,091,934 | ||||||
| Repayment of long-term debt |
(7,500 | ) | (1,108,500 | ) | ||||
| Bond issuance costs |
— | (13,138 | ) | |||||
| Proceeds from exercise of stock options |
10,350 | 21,604 | ||||||
| Payment of tax withholdings on certain stock-based compensation |
(44,456 | ) | (62,869 | ) | ||||
| Distributions to noncontrolling interests |
(412,404 | ) | (300,772 | ) | ||||
| Cash dividends |
(387,996 | ) | (404,150 | ) | ||||
| Acquisition of treasury stock |
(1,376,757 | ) | (2,359,971 | ) | ||||
| Proceeds from government incentives |
— | 275,000 | ||||||
| Other financing activities |
(12,437 | ) | (21,085 | ) | ||||
|
|
|
|
|
|||||
| Cash used in financing activities |
(2,244,342 | ) | (1,925,021 | ) | ||||
|
|
|
|
|
|||||
| Effect of exchange rate changes on cash |
837 | (5,221 | ) | |||||
|
|
|
|
|
|||||
| Increase in cash and cash equivalents and restricted cash and cash equivalents |
1,507,562 | 621,086 | ||||||
| Cash and cash equivalents and restricted cash and cash equivalents - beginning of year |
4,361,220 | 2,508,658 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents and restricted cash and cash equivalents - end of nine months |
$ | 5,868,782 | $ | 3,129,744 | ||||
|
|
|
|
|
|||||
| Non-cash investing activity: |
||||||||
| Change in accrued plant and equipment purchases |
$ | 40,126 | $ | (31,469 | ) | |||
|
|
|
|
|
|||||
Page 9 of 10
Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
| News Release |
|
Nucor Reports Quarterly Earnings for the Third Quarter of 2023 (Continued)
Non-GAAP Financial Measures
Reconciliation of EBITDA (Unaudited)
(In thousands)
| Three months ended (13 weeks) |
||||
| September 30, 2023 | ||||
| Net earnings before noncontrolling interests |
$ | 1,221,255 | ||
|
|
|
|||
| Depreciation |
232,317 | |||
| Amortization |
58,470 | |||
| Interest income, net |
(14,133 | ) | ||
| Provision for income taxes |
326,827 | |||
|
|
|
|||
| EBITDA |
$ | 1,824,736 | ||
|
|
|
|||
Page 10 of 10
Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
Exhibit 99.2 THIRD QUARTER 2023 EARNINGS CALL LEON TOPALIAN Chair, President and CEO STEVE LAXTON Executive Vice President and CFO OCTOBER 24, 2023
FORWARD-LOOKING STATEMENTS Certain statements made in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The words “anticipate,” “believe,” “expect,” “intend,” “may,” “project,” “will,” “should,” “could” and similar expressions are intended to identify 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. The Company does not undertake any obligation to update these statements. 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 presentation. 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 general market conditions, and in particular, 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 and volatility 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 businesses we acquire; (15) the impact of the COVID-19 pandemic, any variants of the virus, and any other similar public health situation; and (16) the risks discussed in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and elsewhere therein and in the other reports we file with the U.S. Securities and Exchange Commission. 2
NON-GAAP FINANCIAL MEASURES The Company uses certain non-GAAP (Generally Accepted Accounting Principles) financial measures in this news release, including EBITDA. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable financial measure calculated and presented in accordance with GAAP. We define EBITDA as net earnings before noncontrolling interests adding back the following items: interest expense, net; provision for income taxes; depreciation; and amortization. Please note that other companies might define their non-GAAP financial measures differently than we do. Management presents the non-GAAP financial measure of EBITDA in this news release because it considers it to be an important supplemental measure of performance. Management believes that this non-GAAP financial measure provides additional insight for analysts and investors evaluating the Company’s financial and operational performance by providing a consistent basis of comparison across periods. Non-GAAP financial measures have limitations as an analytical tool. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures provided in this news release, including in the accompanying tables. 3
Q3 2023 HIGHLIGHTS FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS Brandenburg Plate Mill 1 th • $1.8 billion EBITDA consecutive record • On track to set 5 • $1.1 billion Net Earnings safety year • $4.57 Earnings Per Share (diluted) • Total Steel Mills segment shipped ~5.8M • Returned $627 million to shareholders, tons, compared to ~5.9M tons in Q3’22 representing ~55% of Q3 net earnings • Steel Products segment shipped ~1.1M • $127M dividend payments tons, compared to ~1.3M tons in Q3’22 • $500M share repurchases • Broke ground on West Virginia sheet mill 1 4 EBITDA is a non-GAAP financial measure. For a reconciliation of non-GAAP measures, please refer to the Appendix.
NUCOR IS MADE FOR GOOD Made for Good is a campaign highlighting Nucor’s leadership role in sustainable steel production and our work across industries to help customers achieve their sustainability goals. SUSTAINABILITY INITIATIVES – PAST 12 MONTHS SEP 2023 Investment in Helion Energy to develop 500MW fusion plant AUG 2023 Executed 250MW Sebree solar PPA with NextEra Energy Through GSCC, proposed a Global Steel Standard mandating AUG 2023 science-based emission targets for steel manufacturers CCS Agreement with ExxonMobil to capture, transport and store up JUN 2023 to 800,000 mt/yr. CO from Nucor Louisiana DRI plant 2 MOU with NuScale to explore advanced nuclear facilities near MAY 2023 Nucor mills Announced effort to develop carbon emissions standard for global APR 2023 steel industry – Global Steel Climate Council (GSCC) Introduced Elcyon™, a sustainable high-strength steel plate for JAN 2023 offshore wind monopile foundations DEC 2022 Investment in Electra to develop carbon-free iron to make steel First major industrial company to join the UN 24/7 Carbon-Free NOV 2022 Energy Compact 5
GROWING THE CORE TO CREATE SHAREHOLDER VALUE SHEET PLATE BAR BAR SHEET PLATE • Shift mix to higher margin, • Establish flagship mill in • Capitalize on growing value-added products largest plate consuming demand for rebar over next region in North America decade • Broaden geographic reach • Become leading supplier of • Improve margins and lower STRATEGIES specialty plate products for GHG intensity with • Diversify customer base wind, power transmission modernized equipment and military applications and processes • Leverage our GHG & cost advantages • Acquired 51% of • Completed construction • Completed micro mills in FL CSI (California) of Nucor Steel and MO Brandenburg (Kentucky), • Building new mill in the most versatile plate mill • Modernization projects in West Virginia in North America OH & IL INVESTMENTS • Adding 2+ Mtpa state of the art galvanizing capacity • Building new micro mill in NC • New paint and tube lines • Adding melt shop in AZ 6
STEEL MEGA-TRENDS: STILL IN THE “EARLY INNINGS” STEEL HOME BASE INNINGS PLAYED MVPs (not tons produced) MEGATRENDS RUNS HITS Still some tailgating Ø FABRICATED Ø PILING REBAR REBUILD Ø BEAM Ø PLATE (IIJA) Ø MBQ Ø SHEET st Bottom of the 1 Ø TORQUE TUBEØ POLE MOUNTS REPOWER Ø ELCYON™ Ø TOWERS & PLATE STRUCTURES (IRA) Ø PILINGØ FASTENERS nd Top of the 2 Ø STRUCTURAL Ø OVERHEAD MANUFACTURING DOORS BEAMS RESHORE Ø INSULATED Ø JOIST & DECK PANELS (CHIPS) Ø FABRICATED Ø PRE-ENGINEERED nd REBAR BUILDINGS Bottom of the 2 7
Q3 2023 SEGMENT RESULTS STEEL MILLS SEGMENT Q3 2023 VS. Q2 2023 % Change Versus Q3 ‘23 Q2 ‘23 Q3 ‘22 Prior Qtr Prior Year Lower realized pricing, reduced metal margin • Shipments ( 5,746 5,979 5,869 -4% -2% tons in 000s) Modest decrease in shipments • 1 EBT ($M) 883 1,404 1,288 -37% -31% • Higher conversion costs driven by lower EBT/Ton ($) 154 235 219 -35% -30% operating rate STEEL PRODUCTS SEGMENT % Change Versus Q3 ‘23 Q2 ‘23 Q3 ‘22 Prior Qtr Prior Year Shipments (tons in 000s) 1,141 1,193 1,291 -4% -12% • Modest decrease in shipments 1 Lower realized pricing EBT ($M) 807 1,011 1,197 -20% -33%• Continued high profitability per ton • EBT/Ton ($) 707 847 927 -17% -24% RAW MATERIALS SEGMENT % Change Versus Q3 ‘23 Q2 ‘23 Q3 ‘22 Prior Qtr Prior Year Lower shipments 2• Production (tons in 000s) 1,997 2,103 1,932 -5% 3% Lower realized prices • 1 71 138 279 -49% -75% EBT ($M) 1 EBT ($M) refers to Earnings (loss) before income taxes and noncontrolling interests as disclosed in relevant 8 2 quarterly Nucor quarterly earnings news release. Excludes scrap brokerage activities
BALANCED CAPITAL ALLOCATION CONTINUES CAPTAL ALLOCATION (2018-2023YTD) Q3 ‘23 BALANCE SHEET SUMMARY xLTM thousands of $USD $USD in millions 1 as of September 30, 2023 Amount EBITDA % cap 10,000 $1.75Bn Revolving Credit Facility $0 Short-Term Debt $36 8,000 2 Long-Term Debt $6,646 Total Debt $6,682 0.8x 24% 6,000 Cash and Cash Equivalents ($6,732) Net Debt ($50) 4,000 Total Equity & Non-Controlling Int. $21,509 76% Total Book Capitalization $28,191 100% 2,000 Rating Long-term Short-term Outlook Agency Rating Rating 0 2020 2022 2023 YTD S&P A- A-1 Stable 2018 2019 2021 2018 2019 2020 2021 2022 2023 YTD Fitch A- F-1 Stable Moody’s Baa1 P-2 Stable 1 EBITDA is a non-GAAP financial measure. For a reconciliation of non-GAAP measures, please refer to the Appendix. 9 2 Long-Term Debt includes Current Portion of Long-Term Debt and Finance Lease Obligations
Q3 2023 EARNINGS OUTLOOK OUTLOOK VARIANCE SEGMENT EXPECTATIONS FOR Q3 2023 TO Q3 2023 • Decreased profitability on lower average Steel Mills selling prices and shipments • Profitability to decrease with lower average Steel Products selling prices and seasonally lower volumes • Expect lower earnings on decreased pricing Raw Materials at scrap operations and planned outages at DRI facilities • Intercompany eliminations likely trend lower, Corp / Eliminations offsetting some of the margin compression reported by operating segments Consolidated Earnings • Overall lower than Q3 10
APPENDIX 11
STRENGTH OF THE PORTFOLIO A DIVERSE MIX 2017-2023 EARNINGS MIX 2% 100.0% 5% 4% 4% 5% 6% 90.0% 22% 11% 11% 14% 80.0% 35% 48% 45% 70.0% 60.0% 50.0% 83% 84% 40.0% 81% 79% 30.0% 61% 51% 50% 20.0% 10.0% 0.0% -1% -10.0% FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 YTD 23 Steel mills Steel products Raw materials Ø Transforming the earnings profile to On average, Steel Products accounted for ~16% of 2017-2019 EBT be more diverse through the cycle Ø Within the segments, shifting the Since 2020, Steel Products accounted for existing mix to focus on value added products ~35% of EBT, on average 12 (a) Operating segment earnings before income taxes and non-controlling interests. Excludes corporate, other and eliminations. % Contribution to Earnings Before Income Taxes & NCI
SEGMENT RESULTS: STEEL MILLS AND STEEL PRODUCTS STEEL MILLS % Change Versus Shipments (tons in thousands) Q3 ‘23 Q2 ‘23 Q3 ‘22 Prior Qtr. Prior Year -2% 2%• Decrease in shipment levels Sheet 2,723 2,786 2,677 Bars -6% -8% 2,001 2,122 2,169 • Lower realized pricing Structural 5% -9% 530 505 583 • Higher conversion costs driven by lower Plate -12% 21% 460 520 379 operating rate -30% -48% Other Steel 32 46 61 -4% -2% Total Shipments 5,746 5,979 5,869 1 EBT ($ in millions) -37% -31% $883 $1,404 $1,288 1 EBT /Ton ($) -35% -30% $154 $235 $219 STEEL PRODUCTS % Change Versus Shipments (tons in thousands) Q3 ‘23 Q2 ‘23 Q3 ‘22 Prior Qtr. Prior Year Tubular 223 239 231 -7% -3% Slightly lower shipments • Joist & Deck 231 249 289 -7% -20% Moderately lower realized pricing • Rebar Fabrication 307 332 350 -8% -12% Continued high profitability per ton • Piling 117 113 119 4% -2% Cold finished 103 112 112 -8% -8% Other 160 148 190 8% -16% Total Shipments 1,141 1,193 1,291 -4% -12% 1 EBT ($ in millions) $807 $1,011 $1,197 -20% -33% 1 EBT /Ton ($) $707 $847 $927 -17% -24% 1 EBT refers to Earnings (loss) before income taxes and noncontrolling interests as disclosed 13 in relevant Nucor quarterly earnings news release
SEGMENT RESULTS: RAW MATERIALS RAW MATERIALS % Change Versus Q3 ‘23 Q2 ‘23 Q3 ‘22 Production (tons in thousands) Prior Qtr. Prior Year DRI -2% 2% 1,005 1,028 987 Lower shipments • Scrap Processing -8% 5% 993 1,075 945 • Lower realized prices 1 -5% 3% Total Shipments 1,997 2,103 1,932 2 -49% -75% EBT ($ in millions) $71 $138 $279 1 Total production excluding scrap brokerage activities. 2 EBT refers to Earnings (loss) before income taxes and noncontrolling interests as disclosed in relevant 14 Nucor quarterly earnings news release
QUARTERLY SALES AND EARNINGS DATA EARNINGS SALES TONS (THOUSANDS) TO OUTSIDE CUSTOMERS (LOSS) BEFORE STEEL STEEL PRODUCTS INCOME TAXES COMP. SALES TUBULA OTHER TOTAL PRICE TOTAL STEEL STEEL COLD REBAR R STEEL STEEL RAW TOTAL NET SALES PER PER YEAR SHEET BARS STRUCTURAL PLATE STEEL JOISTS DECK FINISH FAB PILING PRODS PRODS PRODS MATLS TONS (000’S) TON (000’S) TON 2023 Q1 2,384 1,550 440 430 4,804 135 99 117 279 101 275 135 1,141 498 6,443 $8,709,980 $1,352 $1,501,697 $244 Q2 2,404 1,481 399 490 4,774 142 107 112 332 113 239 148 1,193 621 6,588 $9,523,256 $1,446 $1,924,061 $306 Q3 2,305 1,408 439 426 4,578 127 104 103 307 117 223 160 1,141 521 6,240 $8,775,734 $1,406 $1,468,333 $247 Q4 YEAR 2022 Q1 2,023 1,603 524 389 4,539 179 136 133 291 111 230 155 1,235 620 6,394 $10,493,282 $1,641 $2,766,623 $450 Q2 2,470 1,625 494 452 5,041 158 123 123 339 119 274 175 1,311 625 6,977 $11,794,474 $1,690 $3,324,398 $499 Q3 2,197 1,498 491 367 4,553 160 129 112 350 119 231 190 1,291 6,415 $10,500,755 $1,637 $2,218,627 $363 571 Q4 1,974 1,365 373 355 4,067 174 127 99 302 94 215 167 1,178 493 5,738 $8,723,956 $1,520 $1,462,893 $267 YEAR 8,664 6,091 1,882 1,563 18,200 671 515 467 1,282 443 950 687 5,015 2,309 25,524 $41,512,467 $1,626 $9,772,541 $401 15
QUARTERLY SALES PRICES & SCRAP COST STEEL MILLS AVERAGE SCRAP AND SCRAP AVG TOTAL SUBSTITUTE COST EXTERNAL STEEL TOTAL SALES PRICE STRUCTURAL SHEET BARS PLATE PRODUCTS PER GROSS PER NET STEEL PER NET TON TON USED TON USED 2023 2023 st st 1 Quarter $876 $1,031 $1,452 $1,490 $1,035 $2,872 1 Quarter $414 $370 nd nd 2 Quarter $1,103 $1,080 $1,456 $1,506 $1,168 $2,884 2 Quarter $455 $406 First Half $990 $1,055 $1,454 $1,499 $1,101 $2,878 First Half $435 $388 rd 3 Quarter $1,021 $1,029 $1,429 $1,558 $1,114 $2,837 rd $415 $371 3 Quarter Nine Months $1,000 $1,047 $1,445 $1,517 $1,105 $2,865 Nine Months $429 $383 th th 4 Quarter 4 Quarter YEAR YEAR 2022 2022 st st 1 Quarter $1,571 $1,140 $1,496 $1,861 $1,436 $2,689 1 Quarter $495 $442 nd nd 2 Quarter $1,441 $1,226 $1,583 $1,913 $1,429 $2,931 2 Quarter $534 $477 $1,499 $1,183 $1,538 $1,889 $1,432 $2,814 $516 $461 First Half First Half rd rd 3 Quarter $1,228 $1,176 $1,603 $1,765 $1,296 $3,167 3 Quarter $502 $448 Nine Months $1,410 $1,181 $1,559 $1,851 $1,388 $2,933 Nine Months $511 $456 th th $961 $1,063 $1,543 $1,564 $1,102 $3,230 $427 $381 4 Quarter 4 Quarter YEAR $1,308 $1,155 $1,556 $1,786 $1,324 $3,003 YEAR $492 $439 16
RECONCILIATION OF GAAP TO NON-GAAP MEASURE $ in millions 9Mo 9Mo 2021 2022 LTM 2022 2023 Net earnings before non-controlling interests 7,122 8,080 6,753 4,040 5,367 Net Interest expense 159 170 143 1 28 2,078 2,165 1,958 1,155 1,362 Income taxes 735 827 610 681 898 Depreciation expense 129 235 164 176 247 Amortization expense EBITDA 10,223 11,477 9,628 6,053 7,902 17
RECONCILIATION OF GAAP TO NON-GAAP MEASURE $ in millions 2021 2022 9Mo ’23 CASH PROVIDED BY 6,231 10,072 5,592 OPERATING ACTIVITIES CAPITAL EXPENDITURES (1,622) (1,948) (1,496) 4,609 8,124 4,096 FREE CASH FLOW 18