Steel Mills

Nucor: On Track for Best Year on Record Despite Q3 Downgrade

Written by David Schollaert

September 14, 2022

Nucor Corp., the largest steelmaker in the US, expects lower sequential results for its third quarter ending Oct. 1.

The Charlotte, N.C.-based steelmaker expects earnings of $6.30 to $6.40 per diluted share in Q3, according to earnings guidance figures released on Wednesday, Sept. 14.

That’s down from the record of $9.67 per diluted share in the second quarter and roughly 13% lower than the $7.28 per diluted share in Q3 2021, Nucor said.

The anticipated results for Q3 are lower than earlier statements made by Nucor president and CEO Leon Topalian during the steelmaker’s Q2 earnings results in July.

The company’s downgraded results come as Q3 earnings will be “considerably lower” versus the prior quarter “due to metal margin contraction and reduced shipping volumes, particularly at our sheet and plate mills.”

Its steel products segment is expected to have another strong quarter in Q3, with earnings roughly in line with its Q2 results, while its raw materials segment is expected to match the results generated in Q2 2022.

Despite the downgrade, Nucor anticipates that 2022 will be the most profitable year in its history.

By David Schollaert, David@SteelMarketUpdate.com

David Schollaert

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.

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