Nucor Reports Record Quarterly Earnings For The Third Quarter Of 2021

The following excerpt is from the company's SEC filing.
CHARLOTTE, N.C. – October 21, 2021—Nucor Corporation (NYSE: NUE) today announced record
quarterly consolidated net earnings of $2.13 billion, or $7.28 per diluted share, for the third quarter of 2021. By comparison, Nucor reported consolidated net earnings of $1.51 billion, or $5.04 per diluted share, for the second quarter
of 2021 and $193.4 million, or $0.63 per diluted share, for the third quarter of 2020.
In the first nine months of 2021, Nucor reported consolidated
net earnings of $4.58 billion, or $15.34 per diluted share, compared with consolidated net earnings of $322.6 million, or $1.06 per diluted share, in the first nine months of 2020.
“During the third quarter, we once again achieved record results, with earnings per share of $7.28. Our third quarter performance surpassed our previous
record of $5.04 set in the second quarter of this year and almost matched our full year earnings record of $7.42 that we set back in 2018,” said Leon Topalian, Nucor’s President and Chief Executive Officer. “Congratulations to the
entire Nucor team for delivering the phenomenal results we have seen so far this year while staying focused on our Safety goals. I am incredibly proud of our team and what we have accomplished.”
Selected Segment Data
Earnings (loss) before
income taxes and noncontrolling interests by segment for the third quarter and first nine months of 2021 and 2020 were as follows (in thousands):
Three Months (13 Weeks) Ended
Nine Months (39 Weeks) Ended
Oct. 2, 2021
Oct. 3, 2020
Steel mills
3,116,539
205,152
6,606,320
512,082
Steel products
368,595
186,976
839,737
502,409
Raw materials
161,870
505,248
(3,068
Corporate/eliminations
(777,897
(107,942
(1,758,204
(393,651
2,869,107
290,418
6,193,101
617,772
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 third quarter of 2021.
Financial Review
Nucor’s consolidated net sales increased 17% to $10.31 billion in the third quarter of 2021 compared with $8.79 billion in the second quarter of
2021 and increased 109% compared with $4.93 billion in the third quarter of 2020. Average sales price per ton in the third quarter of 2021 increased 22% compared with the second quarter of 2021 and increased 86% compared with the third quarter
of 2020. A total of 7,172,000 tons were shipped to outside customers in the third quarter of 2021, a 4% decrease from the second quarter of 2021 and a 13% increase from the third quarter of 2020. Total steel mill shipments in the third quarter of
2021 decreased 3% as compared to the second quarter of 2021 and increased 16% as compared to the third quarter
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Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
Nucor Reports Record Quarterly Earnings for the Third Quarter of 2021 (Continued)


of 2020. Steel mill shipments to internal customers represented 21% of total steel mill shipments in the third quarter of 2021, compared with 20% in the second quarter of 2021 and 21% in the
third quarter of 2020. Downstream steel product shipments to outside customers in the third quarter of 2021 was consistent with the second quarter of 2021 and increased 3% from the third quarter of 2020.
In the first nine months of 2021, Nucor’s consolidated net sales of $26.12 billion were an increase of 76% compared with consolidated net sales of
$14.88 billion reported in the first nine months of 2020. Total tons shipped to outside customers in the first nine months of 2021 were 21,830,000, an increase of 15% from the first nine months of 2020, while the average sales price per ton in
the first nine months of 2021 increased 53% from the first nine months of 2020.
The average scrap and scrap substitute cost per gross ton used in the
third quarter of 2021 was $511, a 12% increase compared to $457 in the second quarter of 2021 and an 84% increase compared to $277 in the third quarter of 2020. The average scrap and scrap substitute cost per gross ton used in the first nine months
of 2021 was $457, a 60% increase compared to $285 in the first nine 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.
Included in earnings for the third quarter of 2020 is a restructuring charge of $16.4 million, or $0.04 per diluted share, related to the realignment of Nucor’s metal buildings business. This charge is included in the steel products
segment.
Pre-operating
start-up
costs related to the Company’s
growth projects were approximately $36 million, or $0.09 per diluted share, in the third quarter of 2021, compared with approximately $22 million, or $0.06 per diluted share, in the second quarter of 2021 and approximately
$22 million, or $0.06 per diluted share, in the third quarter of 2020.
In the first nine months of 2021,

pre-operating
costs related to the Company’s growth projects were approximately $76 million, or $0.19 per diluted share, compared with
approximately $73 million, or $0.18 per diluted share, in the first nine months of 2020.
Overall operating rates at the Company’s steel mills
decreased to 96% in the third quarter of 2021 as compared to 97% in the second quarter of 2021 and increased from 83% in the third quarter of 2020. Operating rates in the first nine months of 2021 increased to 96% as compared to 80% in the first
nine months of 2020.
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Financial Strength
At the end of the third quarter of 2021, we had $2.29 billion in cash and cash equivalents, short-term investments and restricted cash and cash
equivalents on hand. Our significant cash flow generation has allowed us to maintain our strong liquidity position all while funding two strategic acquisitions and continuing to execute our share repurchase program during the third quarter.
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
During the third quarter of 2021, Nucor repurchased approximately 8.2 million shares of its common stock at an average price of $104.60 per share
(20.3 million shares
year-to-date
at an average price of $87.19 per share). As of October 2, 2021, Nucor had approximately 285,799,000 shares outstanding and
approximately $1.9 billion remaining for repurchases under its newly authorized share repurchase program.
On September 17, 2021, Nucor’s
board of directors declared a cash dividend of $0.405 per share. This cash dividend is payable on November 10, 2021 to stockholders of record as of September 30, 2021 and is Nucor’s
194
consecutive quarterly cash dividend.
Third Quarter of 2021 Analysis
All three operating segments continued to generate robust profitability in the third quarter of 2021. Earnings of the steel mills segment increased
significantly in the third quarter of 2021 as compared to the second quarter of 2021, mainly driven by higher realized selling prices. The steel products segment generated significantly increased earnings in the third quarter of 2021 due to margin
expansion caused by higher average selling prices. The raw materials segment’s earnings in the third quarter of 2021 were comparable to the second quarter of 2021, excluding the impairment charge recorded in the second quarter of 2021.
Fourth Quarter of 2021 Outlook
We expect
continued strong results for the fourth quarter of 2021, potentially exceeding the net earnings record set in the third quarter of 2021. Demand remains robust across most
end-use
markets, a trend we expect
will continue well into 2022. Backlogs in our steel mills and steel products segments remain elevated compared to historical levels.
We expect the
profitability of the steel mills segment to improve in the fourth quarter of 2021 as compared to the third quarter of 2021, driven by additional earnings growth at our sheet and plate mills. We expect the profitability of the steel products segment
to increase in the fourth quarter of 2021 compared to the third quarter of 2021. The raw materials segment’s earnings in the fourth quarter of 2021 are expected to decrease compared to the third quarter of 2021 due primarily to margin
compression at our direct reduced iron facilities.
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Earnings Conference Call
You are invited to listen to the live broadcast of Nucor’s conference call during which management will discuss Nucor’s third quarter results on
October 21, 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 racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing
steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; 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;

Page 4 of 9

(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 and any variants of the virus. 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
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.
Contact Information
For Investor/Analyst
Inquiries—Paul Donnelly,
704-264-8807,
or Gregg Lucas,
704-972-1841
For Media Inquiries—Katherine Miller,
704-353-9015
Page 5 of 9
Tonnage Data
(In thousands)
Oct. 2, 2021
Oct. 3, 2020
Percent
Change
Steel mills total shipments:
Structural
19,821
16,893
Sales tons to outside customers:
15,690
13,382
Cold finished
Rebar fabrication products
Piling
Tubular products
Other steel products
19,033
Page 6 of 9
Condensed Consolidated Statements of Earnings (Unaudited)
(In thousands, except per share data)
Nine Months (39 Weeks) Ended
Net sales
10,313,223
4,927,960
26,119,527
14,879,603
Costs, expenses and other:
Cost of products sold
6,906,950
4,425,765
18,617,314
13,370,181
Marketing, administrative and other expenses
526,345
165,513
1,204,539
460,922
Equity in (earnings) losses of unconsolidated affiliates
(32,464
(65,106
14,422
Losses on assets
50,970
299,450
Interest expense, net
43,285
40,139
118,709
116,856
7,444,116
4,637,542
19,926,426
14,261,831
Earnings before income taxes and noncontrolling interests
Provision for income taxes
645,842
67,788
1,410,863
207,610
Net earnings
2,223,265
222,630
4,782,238
410,162
Earnings attributable to noncontrolling interests
95,522
29,215
205,195
87,535
Net earnings attributable to Nucor stockholders
2,127,743
193,415
4,577,043
322,627
Net earnings per share:
Diluted
Average shares outstanding:
290,510
303,394
296,431
303,072
291,152
303,441
296,928
303,099
Page 7 of 9
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
Dec. 31, 2020
ASSETS
Current assets:
Cash and cash equivalents
1,764,293
2,639,671
Short-term investments
247,247
408,004
Accounts receivable, net
4,087,293
2,298,850
Inventories, net
5,678,715
3,569,089
Other current assets
346,277
573,048
Total current assets
12,123,825
9,488,662
Property, plant and equipment, net
7,777,277
6,899,110
Restricted cash and cash equivalents
281,345
115,258
Goodwill
2,787,992
2,229,672
Other intangible assets, net
1,171,292
668,021
Other assets
807,748
724,671
Total assets
24,949,479
20,125,394
LIABILITIES
Current liabilities:
Short-term debt
102,737
57,906
Current portion of long-term debt and finance lease obligations
615,130
10,885
Accounts payable
1,870,035
1,432,159
Salaries, wages and related accruals
1,323,365
462,727
Accrued expenses and other current liabilities
886,332
664,183
Total current liabilities
4,797,599
2,627,860
Long-term debt and finance lease obligations due after one year
4,949,945
5,271,789
Deferred credits and other liabilities
1,251,643
993,884
Total liabilities
10,999,187
8,893,533
EQUITY
Nucor stockholders’ equity:
Common stock
152,061
Additional
paid-in
2,131,514
2,121,288
Retained earnings
15,561,261
11,343,852
Accumulated other comprehensive loss, net of income taxes
(85,901
(118,861
Treasury stock
(4,336,415
(2,709,675
Total Nucor stockholders’ equity
13,422,520
10,788,665
Noncontrolling interests
527,772
443,196
Total equity
13,950,292
11,231,861
Total liabilities and equity
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Condensed Consolidated Statements of Cash Flows (Unaudited)
Operating activities:
Adjustments:
Depreciation
546,619
525,688
Amortization
76,656
62,877
Stock-based compensation
97,652
56,122
Deferred income taxes
166,748
140,606
Distributions from affiliates
Changes in assets and liabilities (exclusive of acquisitions and dispositions):
(1,622,668
37,547
(1,976,738
590,434
343,014
15,366
Federal income taxes
262,195
18,848
835,381
(69,235
Other operating activities
123,202
100,283
Cash provided by operating activities
3,620,363
2,205,591
Investing activities:
Capital expenditures
(1,207,088
(1,179,081
Investment in and advances to affiliates
(16,542
Disposition of plant and equipment
15,581
19,492
Acquisitions (net of cash acquired)
(1,346,608
(20,368
Purchase of investments
(394,141
(401,986
Proceeds from the sale of investments
554,898
301,249
Other investing activities
(33,536
Cash used in investing activities
(2,376,509
(1,330,772
Financing activities:
Net change in short-term debt
44,831
Proceeds from issuance of long-term debt, net of discount
196,990
1,237,635
Repayment of long-term debt
(97,150
Bond issuance related costs
(6,250
Proceeds from exercise of stock options
143,874
Payment of tax withholdings on certain stock-based compensation
(71,494
(17,691
Distributions to noncontrolling interests
(120,619
(106,193
Cash dividends
(366,606
(368,636
Acquisition of treasury stock
(1,773,848
(39,499
Other financing activities
(7,993
(6,983
Cash (used in) provided by financing activities
(1,954,865
596,567
Effect of exchange rate changes on cash
(7,790
Increase in cash and cash equivalents and restricted cash and cash equivalents
(709,291
1,463,596
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 nine
months
2,045,638
2,998,201
Non-cash
investing activity:
Change in accrued plant and equipment purchases
14,997
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The above information was disclosed in a filing to the SEC. To see the filing, click here.

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