Nucor(US:NUE)2023-11-07 16:00Financial Performance - Net sales for the three months ended September 30, 2023, were $8,775,734, a decrease of 16.4% compared to $10,500,755 for the same period in 2022[8] - Net earnings attributable to Nucor stockholders for the three months ended September 30, 2023, were $1,141,506, down 32.7% from $1,694,748 in the prior year[8] - Earnings per share (EPS) for the three months ended September 30, 2023, were $4.58, compared to $6.51 for the same period in 2022, reflecting a decline of 29.8%[8] - Comprehensive income for the three months ended September 30, 2023, was $1,201,400, down from $1,766,300 in the same period of 2022, a decline of 32.1%[11] - Net earnings before noncontrolling interests for the nine months ended September 30, 2023, were $4,039,959, a decrease from $6,753,395 in the same period of 2022[17] - Nucor reported net earnings of $1.14 billion, or $4.57 per diluted share, for Q3 2023, down from $1.69 billion, or $6.50 per diluted share, in Q3 2022[75] - Nucor reported net earnings of $3.74 billion, or $14.83 per diluted share, for the first nine months of 2023, down from $6.35 billion, or $23.85 per diluted share, in the same period of 2022[77] Assets and Liabilities - Total assets as of September 30, 2023, increased to $34,267,786 from $32,479,210 as of December 31, 2022, representing a growth of 5.5%[14] - Total liabilities decreased to $12,758,704 as of September 30, 2023, from $12,909,304 at the end of 2022, a reduction of 1.2%[14] - Cash and cash equivalents rose to $5,855,950 as of September 30, 2023, compared to $4,280,852 at the end of 2022, marking an increase of 36.8%[14] - Total cash and cash equivalents and restricted cash at the end of the nine months was $5,868,782, up from $3,129,744 at the same time last year[17] - The total assets measured at fair value as of September 30, 2023, were $6,105,276, compared to $3,874,345 at the end of 2022[29] - As of September 30, 2023, the fair value of Nucor's short-term and long-term debt was approximately $5.77 billion, down from $5.93 billion at December 31, 2022[30] Cash Flow and Investments - Cash provided by operating activities was $5,591,609, down from $7,538,521 year-over-year[17] - Cash used in investing activities was $(1,840,542), a decrease from $(4,987,193) year-over-year[17] - Cash used in financing activities was $(2,244,342) for the nine months ended September 30, 2023, compared to $(1,925,021) in the same period of 2022[17] - Capital expenditures increased to $(1,496,248) compared to $(1,430,125) in the previous year[17] - Pre-operating and start-up costs for new facilities were approximately $100 million in Q3 2023, up from $52 million in Q3 2022, and totaled approximately $273 million in the first nine months of 2023 compared to $174 million in the same period of 2022[91] Stockholder Equity and Dividends - The total stockholders' equity attributable to Nucor as of September 30, 2023, was approximately $20.47 billion[47] - As of September 30, 2023, total stockholders' equity was $20.47 billion, an increase from $18.41 billion on December 31, 2022, reflecting a growth of approximately 11.5%[49] - The company declared cash dividends of $0.51 per share in Q3 2023, up from $0.50 per share in Q3 2022, and $1.53 per share for the first nine months of 2023, compared to $1.50 per share in the same period of 2022[52] - The company has approximately $3.50 billion available for share repurchases under the new program authorized by the Board of Directors, which allows for repurchases of up to $4.00 billion of common stock[52] Segment Performance - Net sales for the steel mills segment in Q3 2023 were $5,091,479, a decrease from $5,908,153 in Q3 2022, representing a decline of approximately 13.8%[62] - Total net sales for the company in the first nine months of 2023 were $27,008,970, down from $32,788,511 in the same period of 2022, reflecting a decrease of about 17.5%[62] - Earnings before income taxes and noncontrolling interests for the steel mills segment in Q3 2023 were $882,614, compared to $1,287,855 in Q3 2022, indicating a decline of approximately 31.5%[62] - The steel products segment's net sales in Q3 2023 were $3,235,969, down from $4,087,107 in Q3 2022, reflecting a decrease of about 20.9%[62] - The raw materials segment reported net sales of $448,286 in Q3 2023, down from $505,495 in Q3 2022, a decrease of about 11.3%[62] Operational Metrics - The average utilization rates for steel mills, steel products, and raw materials segments were approximately 80%, 66%, and 74% respectively in the first nine months of 2023, compared to 80%, 76%, and 73% in the same period of 2022[74] - Total tons shipped to outside customers in Q3 2023 were approximately 6.24 million tons, a 3% decrease from Q3 2022, and for the first nine months, it was approximately 19.27 million tons, also a 3% decrease[81] - Average sales price per ton decreased 14% in Q3 2023 to $1,406 from $1,637 in Q3 2022, and for the first nine months, it decreased 15% to $1,402 from $1,657[81] Expenses and Costs - The average scrap and scrap substitute cost per gross ton used in Q3 2023 was $415, a 17% decrease from $502 in Q3 2022, while for the first nine months, it was $429, a 16% decrease from $511[89] - Interest expense increased in Q3 2023 to $63.23 million from $54.57 million in Q3 2022, and for the first nine months, it rose to $186.72 million from $162.16 million[98] - Nucor's expense for employee benefits totaled $148.6 million in Q3 2023, down from $214.4 million in Q3 2022, with total expenses for the first nine months of 2023 at $505.2 million, compared to $834.3 million in 2022[39] Market Outlook - The company anticipates that market conditions, including competitive pressures and raw material costs, will impact future performance[70] - The company plans to continue focusing on market expansion and new product development to enhance revenue streams[60] - Nucor's operations include international trading and sales companies that buy and sell steel products, indicating a focus on market expansion[72]