On July 22, 2024, Nucor Corp (NUE, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Nucor Corp, a leading manufacturer of steel and steel products, reported consolidated net earnings attributable to Nucor stockholders of $645.2 million, or $2.68 per diluted share. This performance exceeded the analyst estimate of $2.65 per share.
Company Overview
Nucor Corp manufactures steel and steel products, including direct reduced iron for use in its steel mills. The company operates through three main segments: steel mills, steel products, and raw materials, with the steel mills segment generating the maximum revenue. The steel mills segment includes carbon and alloy steel in sheet, bars, structural and plate; steel trading businesses; rebar distribution businesses; and Nucor's equity method investments in NuMit and NJSM.
Performance and Challenges
Despite a challenging market environment, Nucor Corp managed to deliver an EPS of $2.68, surpassing the analyst estimate of $2.65. However, the company faced a decline in revenue, reporting $8.08 billion for Q2 2024, which is a 1% decrease from the previous quarter and a 15% decrease from the same period last year. The decline in revenue was primarily driven by lower average selling prices and decreased shipment volumes.
Financial Achievements
One of the notable achievements for Nucor Corp in Q2 2024 was the return of over $1.7 billion to investors through June. The company also maintained strong liquidity with $5.43 billion in cash and cash equivalents and short-term investments. Additionally, Nucor's $1.75 billion revolving credit facility remains undrawn, showcasing the company's robust financial health.
Income Statement Highlights
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Earnings | $645.2 million | $844.8 million | $1.46 billion |
| Earnings per Share | $2.68 | $3.46 | $5.81 |
| Revenue | $8.08 billion | $8.14 billion | $9.52 billion |
Balance Sheet and Cash Flow Highlights
At the end of Q2 2024, Nucor Corp reported $5.43 billion in cash and cash equivalents and short-term investments. The company also repurchased approximately 2.9 million shares of its common stock at an average price of $170.70 per share during the quarter. This repurchase is part of the company's ongoing commitment to returning capital to stockholders.
Segment Performance
The steel mills segment reported earnings before income taxes and noncontrolling interests of $645.3 million for Q2 2024, a significant decrease from $1.40 billion in Q2 2023. The steel products segment also saw a decline, reporting $441.4 million compared to $1.01 billion in the same period last year. The raw materials segment reported $39.4 million, down from $138.4 million in Q2 2023.
Commentary
“While market conditions have softened compared to recent record-setting years, Nucor remains focused on its long-term growth strategy and has returned more than $1.7 billion to investors through June,” said Leon Topalian, Nucor’s Chair, President and Chief Executive Officer.
Analysis
Nucor Corp's performance in Q2 2024 reflects the challenges posed by a softer market environment, with declines in both revenue and net earnings compared to the previous year. However, the company's ability to exceed EPS estimates and maintain strong liquidity highlights its resilience. The ongoing focus on long-term growth and capital returns to shareholders positions Nucor well for future stability and potential growth.
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Explore the complete 8-K earnings release (here) from Nucor Corp for further details.
