On October 23, 2023, Nucor Corp (NUE, Financial) released its third-quarter earnings report, revealing consolidated net earnings attributable to Nucor stockholders of $1.14 billion, or $4.57 per diluted share. This marks a decrease from the second quarter of 2023, where earnings stood at $1.46 billion, or $5.81 per diluted share, and the third quarter of 2022, with earnings of $1.69 billion, or $6.50 per diluted share.
Financial Performance and Challenges
Nucor's consolidated net sales decreased by 8% to $8.78 billion in the third quarter of 2023, compared with $9.52 billion in the second quarter of 2023. The average sales price per ton in the third quarter of 2023 decreased by 3% compared with the second quarter of 2023 and decreased by 14% compared with the third quarter of 2022. Total steel mill shipments in the third quarter of 2023 decreased by 4% as compared to the second quarter of 2023.
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.
Financial Strength and Shareholder Returns
At the end of the third quarter of 2023, Nucor 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. 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.
Outlook for Q4 2023
Nucor expects 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, the decrease in realized pricing is expected to be most pronounced at the company's sheet mills.
