Steel Mills

Nucor posts lower Q2 earnings, predicts tough Q3 too

July 22, 2024

Nucor

Second quarter ended June 29	2024	2023	% Change
Net sales	$8,077.2	$9,523.3	-15.2%
Net earnings	$645.2	$1,461.4	-55.9%
Per diluted share	$2.68	$5.81	-53.9%
Six months ended June 29
Net sales	$16,214.3	$18,233.2	-11.1%
Net earnings	$1,490.1	$2,597.9	-42.6%
Per diluted share	$6.14	$10.26	-40.2%

(in millions of dollars except per share)

Nucor recorded lower second-quarter earnings on falling steel prices.

And the Charlotte, N.C.-based steelmaker predicted that profits would be lower still in the third quarter, primarily because of weaker results from its steel mills divisions.

Recall that Nucor has three business units: steel mills, raw materials, and downstream steel products.

“While market conditions have softened compared to recent record-setting years, Nucor remains focused on its long-term growth strategy,” company Chair, President, and CEO Leon Topalian said in a statement.

That statement was released with earnings data after the close of markets on Monday.

All told, Nucor posted net earnings of $645.2 million in Q2’24, down nearly 56% from $1.46 million in the Q2’23. Revenue fell 15.2% to approximately $8.08 billion in the same comparison.

Average sales prices per ton slipped 2% in Q2’24 compared to Q1’24 and were down 5% compared to Q2’23, Nucor said.

The company partially offset those declines with increased sales volumes. Nucor said it shipped roughly 6.29 million tons to outside customers in Q2’24, up 1% from the first quarter. But that figure was nonetheless off 5% compared to Q2’23.

Meanwhile, operating rates at Nucor’s mills fell to 75% in Q2’24, down from 82% in Q1’24 and down from 84% in Q2’23.

On the raw materials side, Nucor recorded average prices for scrap and scrap substitutes (DRI, for example) of $396 per gross ton (gt) in Q2’24. That’s down 6% from $421/gt in Q1’24 and down 13% versus $455/gt in Q2’23.

Michael Cowden

Michael Cowden is managing editor for Steel Market Update. Cowden has covered the steel industry since 2007. He has since 2014 specialized in flat-rolled steel but has previously reported on steel long products, steel pipe and tube as well as aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago - where he was involved in launching AMM's daily hot-rolled coil index, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.