Nucor's Earnings and Revenues Surpass Estimates in Q3, Decline Y/Y

Core Viewpoint - Nucor Corporation reported a significant decline in earnings for the third quarter of 2024, with adjusted earnings per share surpassing estimates despite lower net sales and average selling prices [1][2]. Group 1: Earnings and Sales Performance - The company reported earnings of $1.05 per share, down from $4.57 in the same quarter last year [1]. - Adjusted earnings per share were $1.49, exceeding the Zacks Consensus Estimate of $1.40 [1]. - Net sales totaled $7,444.2 million, a decrease of approximately 15.2% year over year, but above the Zacks Consensus Estimate of $7,204.5 million [1]. Group 2: Operating Figures - Total sales tons to outside customers for steel mills were 4,607,000 tons, a 0.6% increase year over year, surpassing the estimate of 4,446,000 tons [2]. - The average sales price per ton fell by 15% [2]. - Overall operating rates at the steel mills decreased to 75% in Q3 2024 from 77% in Q3 2023 [2]. Group 3: Segment Highlights - Earnings from the steel mills unit dropped by 65% year over year due to lower average selling prices [3]. - The steel products division saw a 61% decline in earnings year over year, attributed to reduced prices and lower volumes [3]. - The raw materials segment's earnings fell by 192% due to a non-cash impairment charge [3]. Group 4: Financial Position - Cash and cash equivalents were $4,262.8 million at the end of the quarter, down 27.3% year over year [4]. - Long-term debt decreased to $5,684.9 million, down 14.1% [4]. - The company repurchased approximately 2.5 million shares at an average price of $156.07 per share during the quarter [4]. Group 5: Outlook - Nucor anticipates that consolidated net earnings for Q4 2024 will be lower than in Q3 2024 due to reduced profitability in the steel mills segment [5]. - Earnings in the steel products division are expected to decline in Q4 compared to Q3, driven by lower average selling prices and volumes [5]. - The raw materials segment's earnings are predicted to improve sequentially, excluding the impairment charge taken in Q3 2024 [5]. Group 6: Stock Performance - Nucor's shares have increased by 11.2% over the past year, outperforming the industry's 4.8% rise [6].