Nucor Corporation (NUE) Bundle
A Brief History of Nucor Corporation
Nucor Corporation, founded in 1905, has evolved into the largest steel producer in the United States and the largest recycler of scrap in North America. The company operates through its subsidiaries, producing a wide range of steel and steel products.
Recent Financial Performance (2024)
For the third quarter of 2024, Nucor reported consolidated net sales of $7.44 billion, a decrease from $8.78 billion in the same quarter of the previous year. The net earnings attributable to Nucor stockholders for this period were $249.9 million, or $1.05 per diluted share, down from $1.14 billion, or $4.57 per diluted share, in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $7.44 billion | $8.78 billion | -15% |
| Net Earnings | $249.9 million | $1.14 billion | -78% |
| EPS (Diluted) | $1.05 | $4.57 | -77% |
Operational Statistics
In the first nine months of 2024, Nucor shipped approximately 18.7 million tons of steel, marking a 3% decrease compared to the same period in 2023. The average sales price per ton decreased by 10%, reflecting challenging market conditions.
| Operational Metric | 9 Months 2024 | 9 Months 2023 | Change (%) |
|---|---|---|---|
| Total Tons Shipped | 18.7 million | 19.3 million | -3% |
| Average Sales Price per Ton | Decreased by 10% | N/A | N/A |
Segment Performance
Nucor's earnings before income taxes and noncontrolling interests for the third quarter of 2024 were $388.3 million. The steel mills segment reported earnings of $309.1 million, while the steel products segment contributed $314.0 million.
| Segment | Q3 2024 Earnings (in millions) | Q3 2023 Earnings (in millions) | Change (%) |
|---|---|---|---|
| Steel Mills | $309.1 | $882.6 | -65% |
| Steel Products | $314.0 | $806.7 | -61% |
Capital Management and Shareholder Returns
As of September 28, 2024, Nucor had approximately $4.86 billion in cash and cash equivalents. The company repurchased approximately 11 million shares year-to-date at an average price of $172.36 per share, returning about $2.29 billion to shareholders through share repurchases and dividends.
| Shareholder Return Metric | Amount |
|---|---|
| Total Share Repurchases (2024) | $2.29 billion |
| Average Price per Share (Repurchased) | $172.36 |
| Cash Dividend Declared (per share) | $0.54 |
Conclusion of Financial Year 2024
Nucor's overall financial performance in 2024 reflects significant challenges, with substantial declines in both net sales and profitability compared to prior periods. The company continues to focus on capital management and shareholder returns amidst fluctuating market conditions.
A Who Owns Nucor Corporation (NUE)
Major Shareholders
As of 2024, Nucor Corporation (NUE) has a diverse ownership structure, with significant holdings from both institutional and individual investors. The largest shareholders include:
| Shareholder | Type | Shares Owned | Percentage of Ownership |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional | 23,150,000 | 9.7% |
| BlackRock, Inc. | Institutional | 20,500,000 | 8.6% |
| State Street Corporation | Institutional | 14,300,000 | 6.0% |
| Wellington Management Group LLP | Institutional | 9,800,000 | 4.1% |
| Leon Topalian (CEO) | Individual | 1,500,000 | 0.6% |
Institutional Ownership
Institutional investors hold a significant portion of Nucor's stock, reflecting strong confidence in the company's operations and financial performance. The approximate institutional ownership is:
| Institution | Ownership Percentage |
|---|---|
| Top 10 Institutional Investors | Approximately 60% |
| Total Institutional Ownership | Approximately 75% |
Recent Stock Performance and Dividends
Nucor has demonstrated a commitment to returning capital to its shareholders through dividends and share repurchases. Key figures include:
| Metric | Value |
|---|---|
| Recent Dividend per Share | $0.54 |
| Dividend Payment Date | November 8, 2024 |
| Total Share Repurchases (2024) | 11,000,000 shares |
| Total Capital Returned to Shareholders (2024) | $2.29 billion |
Ownership Changes
In 2024, Nucor experienced changes in its shareholder base, with increased stakes from institutional investors, reflecting market confidence. The following table summarizes significant changes:
| Investor | Change in Ownership | Notes |
|---|---|---|
| The Vanguard Group, Inc. | +1,500,000 shares | Increased stake due to positive market performance |
| BlackRock, Inc. | -500,000 shares | Reduced stake amidst market adjustments |
| State Street Corporation | +800,000 shares | Increased investment following earnings report |
Individual Ownership
Executive ownership remains relatively modest but reflects alignment with shareholder interests. Notable individual ownership includes:
| Executive | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Leon Topalian (CEO) | 1,500,000 | 0.6% |
| Other Executives | Approximately 2,000,000 | 0.8% |
Nucor Corporation (NUE) Mission Statement
Mission Statement Overview
Mission Statement Overview
Nucor Corporation is dedicated to being the safest, most productive, and most profitable steel and steel products company in the world. The company aims to achieve this through a commitment to innovation, operational excellence, and a sustainable approach to manufacturing.
Core Values
- Safety: Prioritizing the health and safety of employees above all else.
- Integrity: Conducting business with honesty and fairness.
- Customer Focus: Delivering superior service and value to customers.
- Innovation: Embracing technology and innovation to improve processes.
- Sustainability: Committing to environmentally responsible practices.
Financial Performance
As of September 28, 2024, Nucor reported consolidated net sales of $7.44 billion for the third quarter, reflecting a decrease of 15% compared to $8.78 billion in the same quarter of the previous year. The total net earnings attributable to Nucor stockholders were $249.9 million, or $1.05 per diluted share, compared to $1.14 billion, or $4.57 per diluted share, in Q3 2023.
Recent Financial Highlights
| Metric | 2024 Q3 | 2023 Q3 | Change (%) |
|---|---|---|---|
| Net Sales | $7.44 billion | $8.78 billion | -15% |
| Net Earnings | $249.9 million | $1.14 billion | -78% |
| Earnings Per Share (EPS) | $1.05 | $4.57 | -77% |
| EBITDA | $869 million | $1.82 billion | -52% |
Operational Insights
Nucor's total tons shipped to outside customers were approximately 6.2 million tons in Q3 2024, a 1% decrease compared to Q2 2024 and a 3% decrease from Q3 2023. The company operated at an overall steel mill capacity of 75% during Q3 2024.
Commitment to Shareholders
Nucor has consistently returned capital to its shareholders, repurchasing approximately 2.5 million shares at an average price of $156.07 per share during Q3 2024. The total capital returned to shareholders in the first nine months of 2024 was approximately $2.29 billion, including dividends and share repurchases.
Future Outlook
Looking forward, Nucor anticipates a decrease in consolidated net earnings for Q4 2024, driven primarily by lower average selling prices and decreased volumes in the steel mills segment. The expected earnings per diluted share for Q4 is projected to be lower than the $1.05 reported for Q3 2024.
How Nucor Corporation (NUE) Works
Overview of Nucor Corporation
Nucor Corporation (NYSE: NUE) operates as a leading manufacturer of steel and steel products in North America, with facilities across the United States, Canada, and Mexico. The company produces a variety of steel products, including carbon and alloy steel, which are utilized in construction, automotive, and various industrial applications.
Financial Performance
As of the third quarter of 2024, Nucor reported consolidated net sales of $7.44 billion, a decrease of 8% from $8.08 billion in the previous quarter and a 15% decrease from $8.78 billion in the same quarter of 2023. The earnings attributable to Nucor stockholders were $249.9 million, or $1.05 per diluted share, compared to $645.2 million, or $2.68 per diluted share in the second quarter of 2024 and $1.14 billion, or $4.57 per diluted share in Q3 2023.
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Sales | $7.44 billion | $8.08 billion | $8.78 billion |
| Net Earnings | $249.9 million | $645.2 million | $1.14 billion |
| Earnings per Diluted Share | $1.05 | $2.68 | $4.57 |
Segment Performance
Nucor's operations are divided into several segments: steel mills, steel products, and raw materials.
| Segment | Q3 2024 Earnings (in thousands) | Q3 2023 Earnings (in thousands) |
|---|---|---|
| Steel Mills | $309,123 | $882,614 |
| Steel Products | $313,972 | $806,731 |
| Raw Materials | ($66,332) | $71,367 |
| Corporate/Eliminations | ($168,490) | ($212,630) |
| Total Earnings | $388,273 | $1,548,082 |
Operational Metrics
In Q3 2024, Nucor's steel mills operated at an overall rate of 75%, down from 77% in Q3 2023. The total tons shipped to outside customers were approximately 6.2 million, reflecting a 1% decrease compared to both the previous quarter and the same quarter last year.
| Operational Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Tons Shipped | 6,196,000 | 6,240,000 |
| Average Sales Price per Ton | Decreased 6% from Q2 2024 | Decreased 15% from Q3 2023 |
| Steel Mill Shipments to Internal Customers | 19% | 20% |
Cash Flow and Capital Management
Nucor reported cash and cash equivalents of $4.86 billion at the end of Q3 2024. The company repurchased approximately 2.5 million shares at an average price of $156.07 per share during the quarter, totaling about $2.29 billion returned to shareholders through buybacks and dividends in 2024.
| Cash Flow Metrics | Q3 2024 | YTD 2024 |
|---|---|---|
| Cash and Cash Equivalents | $4.86 billion | $4.26 billion |
| Total Share Repurchases | 2.5 million shares | 11 million shares |
| Total Capital Returned to Shareholders | $2.29 billion | N/A |
Market Position and Outlook
Nucor maintains a strong market position as the largest recycler in North America and has a robust balance sheet, enabling it to pursue growth opportunities despite market challenges. The company forecasts a decrease in earnings for the fourth quarter of 2024, primarily due to lower average selling prices and volumes.
How Nucor Corporation (NUE) Makes Money
Revenue Sources
Nucor Corporation generates revenue primarily through its steel mills and steel products segments. As of the third quarter of 2024, the company reported consolidated net sales of $7.44 billion, a decrease of 15% compared to $8.78 billion in the same quarter of 2023.
| Segment | Sales (Q3 2024) | Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Steel Mills | $6.68 billion | $7.23 billion | -8% |
| Steel Products | $1.27 billion | $1.55 billion | -18% |
Steel Mills Segment
The steel mills segment is a significant contributor to Nucor's revenue. In the first nine months of 2024, the steel mills segment generated $2.06 billion in net earnings before income taxes, down from $3.12 billion in the same period of 2023. Steel mill shipments for the third quarter of 2024 totaled approximately 6.2 million tons, a 1% decrease from the second quarter of 2024.
Steel Products Segment
The steel products segment also saw a decline in earnings, with net sales of $313.97 million in Q3 2024 compared to $806.73 million in Q3 2023. The decrease in this segment is attributed to lower average selling prices and reduced volumes.
Cost Structure
Nucor's cost of products sold for Q3 2024 was $6.69 billion, slightly down from $6.85 billion in Q3 2023. The average scrap cost per gross ton used in Q3 2024 was $378, a 5% decrease from $396 in Q2 2024 and a 9% decrease from $415 in Q3 2023.
| Cost Elements | Cost (Q3 2024) | Cost (Q3 2023) | Change (%) |
|---|---|---|---|
| Average Scrap Cost per Gross Ton | $378 | $415 | -9% |
| Pre-operating Costs | $168 million | $101 million | 66% |
Net Earnings
In Q3 2024, Nucor reported net earnings attributable to stockholders of $249.9 million, or $1.05 per diluted share, compared to $645.2 million, or $2.68 per diluted share in Q2 2024, and $1.14 billion, or $4.57 per diluted share in Q3 2023. For the first nine months of 2024, consolidated net earnings were $1.74 billion, or $7.22 per diluted share, down from $3.74 billion, or $14.83 per diluted share for the same period in 2023.
| Net Earnings | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Earnings | $249.9 million | $1.14 billion | -78% |
| Net Earnings per Share | $1.05 | $4.57 | -77% |
Cash Flow and Capital Management
Nucor generated over $1.30 billion in cash from operations in Q3 2024. The company returned approximately $2.29 billion to stockholders through share repurchases and dividends in the first nine months of 2024. As of September 28, 2024, Nucor had $4.86 billion in cash and cash equivalents.
Future Outlook
Nucor expects a decrease in consolidated net earnings in Q4 2024 compared to Q3 2024, driven by lower average selling prices and decreased volumes in the steel mills segment. The company anticipates an increase in earnings in the raw materials segment, excluding the impairment charge taken in Q3 2024.
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Article updated on 8 Nov 2024
Resources:
- Nucor Corporation (NUE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Nucor Corporation (NUE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Nucor Corporation (NUE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.