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CHARLOTTE, N.C., July 22, 2021 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) today announced record quarterly consolidated net earnings of $1.51 billion, or $5.04 per diluted share, for the second quarter of 2021. By comparison, Nucor reported consolidated net earnings of $942.4 million, or $3.10 per diluted share, for the first quarter of 2021 and $108.9 million, or $0.36 per diluted share, for the second quarter of 2020.  

In the first six months of 2021, Nucor reported consolidated net earnings of $2.45 billion, or $8.13 per diluted share, compared with consolidated net earnings of $129.2 million, or $0.42 per diluted share, in the first six months of 2020.

"Nucor's second quarter earnings of $5.04 per diluted share marks the highest quarterly earnings in the Company's history. Additionally, first half earnings of $8.13 per diluted share exceeds our full year diluted earnings per share record of $7.42 set in 2018. We expect to set a new record for quarterly earnings in the third quarter of 2021 as demand remains robust and virtually all the steel end use markets that we monitor are growing," said Leon Topalian, Nucor's President and Chief Executive Officer. "We are thankful to our customers and grateful for the strategic partnerships and successes we've achieved together. Congratulations to our teammates for all you do to make these outstanding results possible."

Selected Segment Data

Earnings (loss) before income taxes and noncontrolling interests by segment for the second quarter and first six months of 2021 and 2020 were as follows (in thousands):





Three Months (13 Weeks) Ended





Six Months (26 Weeks) Ended







July 3, 2021





July 4, 2020





July 3, 2021





July 4, 2020



Steel mills



$

2,174,807





$

150,424





$

3,489,781





$

306,930



Steel products





259,330







152,874







471,142







315,433



Raw materials





120,143







(1,389)







343,378







(9,300)



Corporate/eliminations





(528,532)







(120,852)







(980,307)







(285,709)







$

2,025,748





$

181,057





$

3,323,994





$

327,354



The steel mills segment and the steel products segment both set a record for the highest quarterly earnings before income taxes and noncontrolling interests in the second quarter of 2021.

Financial Review

Nucor's consolidated net sales increased 25% to $8.79 billion in the second quarter of 2021 compared with $7.02 billion in the first quarter of 2021 and increased 103% compared with $4.33 billion in the second quarter of 2020. Average sales price per ton in the second quarter of 2021 increased 20% compared with the first quarter of 2021 and increased 49% compared with the second quarter of 2020. A total of 7,482,000 tons were shipped to outside customers in the second quarter of 2021, a 4% increase from the first quarter of 2021 and a 37% increase from the second quarter of 2020. Total steel mill shipments in the second quarter of 2021 increased 3% as compared to the first quarter of 2021 and increased 41% as compared to the second quarter of 2020. Steel mill shipments to internal customers represented 20% of total steel mill shipments in the second quarter of 2021, compared with 21% in both the first quarter of 2021 and the second quarter of 2020. Downstream steel product shipments to outside customers in the second quarter of 2021 increased 9% from the first quarter of 2021 and increased 18% from the second quarter of 2020.

In the first six months of 2021, Nucor's consolidated net sales of $15.81 billion were an increase of  59% compared with consolidated net sales of $9.95 billion reported in the first six months of 2020. Total tons shipped to outside customers in the first six months of 2021 were 14,658,000, an increase of 16% from the first six months of 2020, while the average sales price per ton in the first six months of 2021 increased 37% from the first six months of 2020.

The average scrap and scrap substitute cost per gross ton used in the second quarter of 2021 was $457, a 13% increase compared to $405 in the first quarter of 2021 and a 61% increase compared to $284 in the second quarter of 2020. The average scrap and scrap substitute cost per gross ton used in the first six months of 2021 was $431, a 49% increase compared to $289 in the first six months of 2020.

Included in the second quarter of 2021 earnings is a $42.0 million, or $0.11 per diluted share, non-cash impairment charge related to our leasehold interest in unproved oil and natural gas properties. This charge is included in the raw materials segment.

Pre-operating and start-up costs related to the Company's growth projects were approximately $22 million, or $0.06 per diluted share, in the second quarter of 2021, compared with approximately $19 million, or $0.05 per diluted share, in the first quarter of 2021 and approximately $22 million, or $0.06 per diluted share, in the second quarter of 2020.

In the first six months of 2021, pre-operating and start-up costs related to the Company's growth projects were approximately $41 million, or $0.10 per diluted share, compared with approximately $51 million, or $0.13 per diluted share, in the first six months of 2020.

Overall operating rates at the Company's steel mills increased to 97% in the second quarter of 2021 as compared to 95% in the first quarter of 2021 and 68% in the second quarter of 2020. Operating rates in the first six months of 2021 increased to 96% as compared to 79% in the first six months of 2020.

Financial Strength

At the end of the second quarter of 2021, we had $3.21 billion in cash and cash equivalents, short-term investments and restricted cash and cash equivalents on hand. The Company's $1.50 billion revolving credit facility remains undrawn and does not expire until April 2023.  Nucor continues to have the strongest credit rating in the North American steel sector (Baa1/A-) with stable outlooks at both Moody's and Standard & Poor's.

Commitment to Returning Capital to Stockholders

In May 2021, the board of directors approved the repurchase of up to $3.00 billion of the Company's common stock and terminated any previously authorized repurchase programs. Share repurchases will be made from time to time in the open market at prevailing market prices or through private transactions or block trades. The timing and amount of repurchases will depend on market conditions, share price, applicable legal requirements and other factors. The share repurchase authorization is discretionary and has no expiration date.

During the second quarter of 2021, Nucor repurchased approximately 6.8 million shares of its common stock at an average price of $90.80 per share (12.1 million shares year-to-date at an average price of $75.43 per share). As of July 3, 2021, Nucor had approximately 293,695,000 shares outstanding and approximately $2.80 billion remaining for repurchases under its newly authorized share repurchase program.

On June 8, 2021, Nucor's board of directors declared a cash dividend of $0.405 per share. This cash dividend is payable on August 11, 2021 to stockholders of record as of June 30, 2021 and is Nucor's 193rd consecutive quarterly cash dividend.

Second Quarter of 2021 Analysis

All three operating segments are continuing to generate robust profitability as overall strong demand is supporting higher average selling prices. Earnings of the steel mills segment significantly improved in the second quarter of 2021 as compared to the first quarter of 2021, primarily driven by the significant increase in profitability of our sheet and plate mills. The steel products segment's earnings in the second quarter of 2021 also increased from the first quarter of 2021. The steel mills segment and the steel products segment set new records for profitability in the second quarter of 2021. After setting a new record for segment earnings in the first quarter of 2021, earnings from the raw materials segment decreased in the second quarter of 2021 due to increased raw material input costs and the previously mentioned impairment charge.

Third Quarter of 2021 Outlook

We expect earnings in the third quarter of 2021 to be the highest quarterly earnings in Nucor history, surpassing the record set in the second quarter of 2021. The primary drivers for the expected increase in earnings in the third quarter of 2021 are improved pricing and margins in the steel mills segment. We expect increased profitability across the steel mills segment, with the largest increase at our sheet mills. The steel products segment and the raw materials segment are expected to have increased earnings in the third quarter of 2021 compared to the second quarter of 2021. 

Earnings Conference Call

You are invited to listen to the live broadcast of Nucor's conference call during which management will discuss Nucor's second quarter results on July 22, 2021 at 2:00 p.m. Eastern Time. The conference call will be available over the Internet at www.nucor.com, under Investors.

About Nucor

Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.

Forward-Looking Statements

Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. The words "anticipate," "believe," "expect," "intend," "project," "may," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. These forward-looking statements reflect the Company's best judgment based on current information, and, although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this news release. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including pressure from imports and substitute materials; (2) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to prevailing market steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) the availability and cost of electricity and natural gas, which could negatively affect our cost of steel production or result in a delay or cancellation of existing or future drilling within our natural gas drilling programs; (5) critical equipment failures and business interruptions; (6) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the United States; (7) impairment in the recorded value of inventory, equity investments, fixed assets, goodwill or other long-lived assets; (8) uncertainties surrounding the global economy, including excess world capacity for steel production; (9) fluctuations in currency conversion rates; (10) significant changes in laws or government regulations affecting environmental compliance, including legislation and regulations that result in greater regulation of greenhouse gas emissions that could increase our energy costs, capital expenditures and operating costs or cause one or more of our permits to be revoked or make it more difficult to obtain permit modifications; (11) the cyclical nature of the steel industry; (12) capital investments and their impact on our performance; (13) our safety performance; and (14) the impact of the COVID-19 pandemic. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in "Item 1A. Risk Factors" of Nucor's Annual Report on Form 10-K for the year ended December 31, 2020. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them, except as may be required by applicable law.

 

Tonnage Data

(In thousands)































Three Months (13 Weeks) Ended



Six Months (26 Weeks) Ended





July 3, 2021



July 4, 2020



Percent Change



July 3, 2021



July 4, 2020



Percent Change

Steel mills total shipments:

























Sheet



2,913



2,002



46%



5,840



4,876



20%

Bars



2,423



1,731



40%



4,742



3,973



19%

Structural



681



517



32%



1,304



1,201



9%

Plate



599



438



37%



1,195



1,048



14%

Other



118



81



46%



197



169



17%





6,734



4,769



41%



13,278



11,267



18%



























Sales tons to outside customers:

























Steel mills



5,356



3,758



43%



10,546



8,940



18%

Joist



167



122



37%



339



253



34%

Deck



130



111



17%



265



236



12%

Cold finished



128



75



71%



260



201



29%

Rebar fabrication products



338



309



9%



620



620



-

Piling



171



156



10%



307



336



-9%

Tubular products



269



249



8%



519



536



-3%

Other steel products



109



87



25%



209



186



12%

Raw materials



814



612



33%



1,593



1,358



17%





7,482



5,479



37%



14,658



12,666



16%

 

Condensed Consolidated Statements of Earnings (Unaudited)



(In thousands, except per share data)









































Three Months (13 Weeks) Ended





Six Months (26 Weeks) Ended







July 3, 2021





July 4, 2020





July 3, 2021





July 4, 2020



Net sales



$

8,789,164





$

4,327,306





$

15,806,304





$

9,951,643



Costs, expenses and other:

































Cost of products sold





6,315,661







3,949,347







11,710,364







8,944,416



Marketing, administrative and other expenses





387,070







142,017







678,194







295,409



Equity in (earnings) losses of unconsolidated affiliates





(19,403)







14,078







(32,642)







14,901



Losses on assets





44,308







5,000







50,970







292,846



Interest expense, net





35,780







35,807







75,424







76,717









6,763,416







4,146,249







12,482,310







9,624,289



Earnings before income taxes and noncontrolling interests





2,025,748







181,057







3,323,994







327,354



Provision for income taxes





454,289







47,904







765,021







139,822



Net earnings





1,571,459







133,153







2,558,973







187,532



Earnings attributable to noncontrolling interests





64,591







24,272







109,673







58,320



Net earnings attributable to Nucor stockholders



$

1,506,868





$

108,881





$

2,449,300





$

129,212



Net earnings per share:

































Basic



$

5.05





$

0.36





$

8.14





$

0.42



Diluted



$

5.04





$

0.36





$

8.13





$

0.42



Average shares outstanding:

































Basic





296,817







302,921







299,359







302,915



Diluted





297,529







302,933







299,738







302,932



 

Condensed Consolidated Balance Sheets (Unaudited)



(In thousands)

























July 3, 2021





Dec. 31, 2020



ASSETS

















Current assets:

















Cash and cash equivalents



$

2,722,656





$

2,639,671



Short-term investments





398,409







408,004



Accounts receivable, net





3,399,076







2,298,850



Inventories, net





5,240,750







3,569,089



Other current assets





295,048







573,048



Total current assets





12,055,939







9,488,662



Property, plant and equipment, net





7,235,536







6,899,110



Restricted cash and cash equivalents





84,350







115,258



Goodwill





2,241,558







2,229,672



Other intangible assets, net





627,201







668,021



Other assets





750,998







724,671



Total assets



$

22,995,582





$

20,125,394



LIABILITIES

















Current liabilities:

















Short-term debt



$

100,686





$

57,906



Current portion of long-term debt and finance lease obligations





12,027







10,885



Accounts payable





2,204,137







1,432,159



Salaries, wages and related accruals





850,396







462,727



Accrued expenses and other current liabilities





712,704







664,183



Total current liabilities





3,879,950







2,627,860



Long-term debt and finance lease obligations due after one year





5,275,496







5,271,789



Deferred credits and other liabilities





1,130,485







993,884



Total liabilities





10,285,931







8,893,533



EQUITY

















Nucor stockholders' equity:

















Common stock





152,061







152,061



Additional paid-in capital





2,117,155







2,121,288



Retained earnings





13,550,406







11,343,852



Accumulated other comprehensive loss,

    net of income taxes





(73,729)







(118,861)



Treasury stock





(3,491,915)







(2,709,675)



Total Nucor stockholders' equity





12,253,978







10,788,665



Noncontrolling interests





455,673







443,196



Total equity





12,709,651







11,231,861



Total liabilities and equity



$

22,995,582





$

20,125,394



 

Condensed Consolidated Statements of Cash Flows (Unaudited)



(In thousands)

























Six Months (26 Weeks) Ended







July 3, 2021





July 4, 2020



Operating activities:

















Net earnings



$

2,558,973





$

187,532



Adjustments:

















Depreciation





362,492







349,691



Amortization





41,858







42,165



Stock-based compensation





66,729







39,101



Deferred income taxes





102,367







90,515



Distributions from affiliates





180







2,000



Equity in losses (earnings) of unconsolidated affiliates





(32,642)







14,901



Losses on assets





50,970







292,846



Changes in assets and liabilities (exclusive of acquisitions and dispositions):

















Accounts receivable





(1,093,021)







264,424



Inventories





(1,673,962)







464,004



Accounts payable





726,649







(272,910)



Federal income taxes





290,287







26,145



Salaries, wages and related accruals





385,265







(142,388)



Other operating activities





97,041







(8,058)



Cash provided by operating activities





1,883,186







1,349,968



Investing activities:

















Capital expenditures





(702,378)







(777,317)



Investment in and advances to affiliates





(169)







(9,756)



Disposition of plant and equipment





10,665







17,652



Acquisitions (net of cash acquired)





300







794



Purchase of investments





(357,917)







(222,500)



Proceeds from the sale of investments





367,512







275,067



Other investing activities





587







1,132



Cash used in investing activities





(681,400)







(714,928)



Financing activities:

















Net change in short-term debt





42,780







2,208



Proceeds from issuance of long-term debt, net of discount





-







1,074,995



Repayment of long-term debt





-







(77,150)



Bond issuance related costs





-







(6,250)



Proceeds from exercise of stock options





128,800







-



Payment of tax withholdings on certain stock-based compensation





(64,416)







(17,263)



Distributions to noncontrolling interests





(97,196)







(62,965)



Cash dividends





(246,539)







(245,619)



Acquisition of treasury stock





(916,145)







(39,499)



Other financing activities





(5,072)







(4,645)



Cash (used in) provided by financing activities





(1,157,788)







623,812



Effect of exchange rate changes on cash





8,079







(4,268)



Increase in cash and cash equivalents and restricted cash and cash equivalents





52,077







1,254,584



Cash and cash equivalents and restricted cash and cash equivalents - beginning of year





2,754,929







1,534,605



Cash and cash equivalents and restricted cash and cash equivalents - end of six months



$

2,807,006





$

2,789,189



Non-cash investing activity:

















Change in accrued plant and equipment purchases



$

44,754





$

(25,897)



 

Cision View original content:https://www.prnewswire.com/news-releases/nucor-reports-record-quarterly-earnings-for-the-second-quarter-of-2021-301339194.html

SOURCE Nucor Corporation

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