Nucor reports safest and most profitable year in Company history, eclipsing prior records set in 2021
Fourth quarter and full year 2022 earnings per diluted share of $4.89 and $28.79, respectively
Returned $3.3 billion of capital to stockholders through dividends and share repurchases
Announced increased dividend for 50^th consecutive year since initial NYSE listing in 1972

CHARLOTTE, N.C., Jan. 26, 2023 /PRNewswire/ -- Nucor Corporation (NYSE:NUE) today announced consolidated net earnings of $1.26 billion, or $4.89 per diluted share, for the fourth quarter of 2022. By comparison, Nucor reported consolidated net earnings of $1.69 billion, or $6.50 per diluted share, for the third quarter of 2022 and $2.25 billion, or $7.97 per diluted share, for the fourth quarter of 2021.

For the full year 2022, Nucor reported record consolidated net earnings of $7.61 billion, or $28.79 per diluted share, surpassing the previous record of consolidated net earnings of $6.83 billion, or $23.16 per diluted share, in 2021.

Included in the fourth quarter of 2022 results was an after-tax net benefit of $60.4 million, or $0.24 per diluted share, related to state tax credits and an after-tax net benefit of $88.0 million, or $0.34 per diluted share, related to a change in the valuation allowance of a state deferred tax asset. Also included in the fourth quarter of 2022 results was a pre-tax $96.0 million, or $0.29 per diluted share, write-off of the remaining carrying value of the Company's leasehold interest in unproved oil and gas properties that is included in the raw materials segment. Of these three items, only the state tax credits were known at the time and considered as part of our quantitative guidance in mid-December 2022.

"I am proud to report that 2022 was both the safest and most profitable year in Nucor history. This is the fourth consecutive year the Nucor team has exhibited record-breaking safety performance, as we strive to become the world's safest steel company," said Leon Topalian, Nucor's Chair, President, and Chief Executive Officer.

"In terms of profitability for the year, Nucor generated consolidated net earnings of $7.61 billion, or $28.79 per diluted share, which exceeds our previous record of $23.16 per diluted share, set in 2021, by 24%. These records are a testament of the world class performance of the 31,000 Nucor teammates that live our culture every single day. Looking ahead to 2023, while we recognize there is uncertainty about the near-term U.S. economic outlook, we're starting to see a number of demand drivers gathering momentum, including the reshoring of manufacturing, large infrastructure investments and grid modernization. We believe Nucor's steel and steel products with lower greenhouse gas intensity will be essential building blocks to our nation's clean energy future, security, and productivity for years to come."

Selected Segment Data

Earnings (loss) before income taxes and noncontrolling interests by segment for the fourth quarter and full year 2022 and 2021 were as follows (in thousands):

Three Months (13 Weeks) Ended

Twelve Months (52 Weeks) Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2022

Dec. 31, 2021

Steel mills

516,655

3,128,700

7,199,087

9,735,020

Steel products

1,081,461

451,713

4,093,105

1,291,450

Raw materials

(141,817)

44,708

496,823

549,956

Corporate/eliminations

77,106

(617,364)

(1,544,171)

(2,375,568)

1,533,405

3,007,757

10,244,844

9,200,858

Financial Review

Nucor's consolidated net sales decreased 17% to $8.72 billion in the fourth quarter of 2022 compared with $10.50 billion in the third quarter of 2022 and decreased 16% compared with $10.36 billion in the fourth quarter of 2021. Average sales price per ton in the fourth quarter of 2022 decreased 7% compared with the third quarter of 2022 and decreased 6% compared with the fourth quarter of 2021. Approximately 5,738,000 tons were shipped to outside customers in the fourth quarter of 2022, an 11% decrease from both the third quarter of 2022 and the fourth quarter of 2021. Total steel mill shipments in the fourth quarter of 2022 decreased 13% as compared to both the third quarter of 2022 and the fourth quarter of 2021. Steel mill shipments to internal customers represented 20% of total steel mill shipments in the fourth quarter of 2022, a decrease compared to 22% in both the third quarter of 2022 and the fourth quarter of 2021. Downstream steel product shipments to outside customers in the fourth quarter of 2022 decreased 9% from the third quarter of 2022 and increased 2% compared to the fourth quarter of 2021.

For the full year 2022, Nucor's consolidated net sales of $41.51 billion increased 14% compared with consolidated net sales of $36.48 billion reported in the full year 2021. Total tons shipped to outside customers in 2022 were approximately 25,524,000 tons, a decrease of 10% from 2021, while the average sales price per ton in 2022 increased 26% from 2021.

The average scrap and scrap substitute cost per gross ton used in the fourth quarter of 2022 was $427, a 15% decrease compared to $502 in the third quarter of 2022 and a 16% decrease compared to $508 in the fourth quarter of 2021. The average scrap and scrap substitute cost per gross ton used in the full year 2022 was $492, a 5% increase compared to $469 in the full year 2021.

Pre-tax pre-operating and start-up costs related to the Company's growth projects were approximately $73 million, or $0.22 per diluted share, in the fourth quarter of 2022, compared with approximately $52 million, or $0.15 per diluted share, in the third quarter of 2022 and approximately $54 million, or $0.15 per diluted share, in the fourth quarter of 2021.

In the full year 2022, pre-tax pre-operating and start-up costs related to the Company's growth projects were approximately $247 million, or $0.71 per diluted share, compared with approximately $130 million, or $0.34 per diluted share, in the full year 2021.

Overall operating rates at the Company's steel mills decreased to 70% in the fourth quarter of 2022 as compared to 77% in the third quarter of 2022 and 89% in the fourth quarter of 2021. Operating rates for the full year 2022 decreased to 77% as compared to 94% for the full year 2021.

Financial Strength

At the end of the fourth quarter of 2022, Nucor had $4.94 billion in cash and cash equivalents, short-term investments and restricted cash and cash equivalents on hand. The Company's $1.75 billion revolving credit facility remains undrawn and does not expire until November 2026. Nucor continues to have the strongest credit rating in the North American steel sector with unchanged long-term senior unsecured ratings from Moody's (Baa1) and Standard & Poor's (A-). On January 24, 2023, Fitch Ratings initiated coverage of Nucor and established new long-term and short-term credit ratings of A- and F1, respectively. Nucor's credit rating outlook from all three rating agencies is stable.

Commitment to Returning Capital to Stockholders

On December 14, 2022, Nucor's Board of Directors declared a cash dividend of $0.51 per share. This cash dividend is payable on February 10, 2023 to stockholders of record as of December 30, 2022 and is Nucor's 199^th consecutive quarterly cash dividend. Nucor has increased its regular, or base, dividend for 50 consecutive years – every year since it first began paying dividends in 1973.

During the fourth quarter of 2022, Nucor repurchased approximately 3.1 million shares of its common stock at an average price of $130.30 per share (approximately 20.6 million shares in the full year 2022 at an average price of $134.29 per share). As of December 31, 2022, Nucor had approximately 253.0 million shares outstanding and approximately $1.10 billion remaining available for repurchases under its share repurchase program. This share repurchase authorization is discretionary and has no scheduled expiration date.

For the full year 2022, Nucor returned approximately $3.3 billion to stockholders in the form of share repurchases and dividend payments, consistent with the Company's capital allocation strategy of returning at least 40% of earnings to stockholders.

Fourth Quarter of 2022 Analysis

Steel mills segment earnings in the fourth quarter of 2022 decreased compared to the third quarter of 2022 due to lower average selling prices, margin compression, and lower volumes, with the largest decrease in profitability at our sheet mills. The modest decrease in the steel products segment earnings in the fourth quarter of 2022 as compared to the third quarter of 2022 was due to lower volumes and selling prices. Raw materials segment earnings decreased significantly in the fourth quarter of 2022 as compared to the third quarter of 2022 primarily due to decreased profitability at our direct reduced iron, or DRI, facilities, both of which experienced planned outages during the fourth quarter, decreased selling prices for raw materials, and the previously mentioned write-off of the leasehold interest in unproved oil and gas properties.

First Quarter of 2023 Outlook

The profitability of the steel mills segment is expected to increase in the first quarter of 2023 as compared to the fourth quarter of 2022 due to higher margins and volumes, with the largest improvement expected to occur at our sheet mills.

Within the steel products segment, we expect continued strong profitability in the first quarter of 2023, with some decrease expected from the fourth quarter of 2022 due to seasonally slower construction activity and some reductions in realized pricing. Overall, we expect first quarter 2023 steel products segment earnings to be higher than the first quarter of 2022.

In the raw materials segment, excluding the impact of the impairment charge recorded in the fourth quarter of 2022, we expect increased profitability compared to the fourth quarter of 2022 due to higher volumes at our DRI facilities and scrap recycling and brokerage operations.

On a combined basis, the operating income during the first quarter of 2023 from our three business segments is expected to exceed that of the fourth quarter of 2022. However, we expect consolidated net earnings to decrease compared to the fourth quarter of 2022 due to intercompany eliminations in the first quarter of 2023 and the absence of state tax benefits that were recorded in the fourth quarter of 2022.

Earnings Conference Call

An earnings call is scheduled for January 26, 2023 at 2 pm Eastern Time to review Nucor's fourth-quarter and full year 2022 financial results and business update. The call can be accessed via webcast from the Investor Relations section of Nucor's website (nucor.com/investors). A presentation with supplemental information to accompany the call has been posted to Nucor's Investor Relations website A recording and transcript of the call will be posted to the same site within one day of the live event.

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; overhead doors; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company and its affiliates, 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 which we expect will or may occur in the future and may impact our business, financial condition and results of operations. 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 general market conditions, and in particular, 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 and volatility surrounding the global economy, including excess world capacity for steel production, inflation and interest rate changes; (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; (14) our ability to integrate businesses we acquire; and (15) the impact of the COVID-19 pandemic, any variants of the virus, and any other similar pandemic or public health situation. These and other factors are discussed in Nucor's regulatory filings with the United States 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, 2021. 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

Twelve Months (52 Weeks) Ended

Dec. 31, 2022

Dec. 31, 2021

Percent

Change

Dec. 31, 2022

Dec. 31, 2021

Percent

Change

Steel mills total shipments:

Sheet

2,314

2,502

-8 %

10,310

11,131

-7 %

Bars

1,907

2,177

-12 %

8,635

9,269

-7 %

Structural

445

607

-27 %

2,292

2,649

-13 %

Plate

375

489

-23 %

1,626

2,289

-29 %

Other

-27 %

378

352

7 %

5,110

5,869

-13 %

23,241

25,690

-10 %

Sales tons to outside customers:

Steel mills

4,067

4,606

-12 %

18,200

20,296

-10 %

Joist

174

173

1 %

671

702

-4 %

Deck

127

132

-4 %

515

536

-4 %

Cold finished

112

-12 %

467

495

-6 %

Rebar fabrication products

302

289

4 %

1,282

1,232

4 %

Piling

103

-9 %

443

554

-20 %

Tubular products

215

222

-3 %

950

1,013

-6 %

Other steel products

167

122

37 %

687

447

54 %

Raw materials

493

658

-25 %

2,309

2,972

-22 %

5,738

6,417

-11 %

25,524

28,247

-10 %

Condensed Consolidated Statements of Earnings (Unaudited)

(In thousands, except per share data)

Three Months (13 Weeks) Ended

Twelve Months (52 Weeks) Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2022

Dec. 31, 2021

Net sales

8,723,956

10,364,412

41,512,467

36,483,939

Costs, expenses and other:

Cost of products sold

6,626,469

6,841,211

29,009,187

25,458,525

Marketing, administrative and other expenses

422,823

502,070

1,997,178

1,706,609

Equity in (earnings) losses of unconsolidated affiliates

12,532

(37,962)

(10,714)

(103,068)

Losses and impairments of assets

101,756

11,191

101,756

62,161

Interest expense, net

26,971

40,145

170,216

158,854

7,190,551

7,356,655

31,267,623

27,283,081

Earnings before income taxes and noncontrolling interests

1,533,405

3,007,757

10,244,844

9,200,858

Provision for income taxes

207,160

667,625

2,165,204

2,078,488

Net earnings

1,326,245

2,340,132

8,079,640

7,122,370

Earnings attributable to noncontrolling interests

70,512

89,714

472,303

294,909

Net earnings attributable to Nucor stockholders

1,255,733

2,250,418

7,607,337

6,827,461

Net earnings per share:

Basic

4.90

7.99

28.88

23.23

Diluted

4.89

7.97

28.79

23.16

Average shares outstanding:

Basic

255,402

280,451

262,348

292,491

Diluted

255,838

281,046

263,176

293,390

Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)

	Dec. 31, 2022		Dec. 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	4,280,852	$	2,364,858
Short-term investments		576,946		253,005
Accounts receivable, net		3,591,030		3,853,972
Inventories, net		5,453,531		6,011,182
Other current assets		789,325		316,540
Total current assets		14,691,684		12,799,557
Property, plant and equipment, net		9,616,920		8,114,818
Restricted cash and cash equivalents		80,368		143,800
Goodwill		3,920,060		2,827,344
Other intangible assets, net		3,322,265		1,103,759
Other assets		847,913		833,794
Total assets	$	32,479,210	$	25,823,072
LIABILITIES
Current liabilities:
Short-term debt	$	49,081	$	107,723
Current portion of long-term debt and finance lease obligations		28,582		615,678
Accounts payable		1,649,523		1,974,041
Salaries, wages and related accruals		1,654,210		1,495,166
Accrued expenses and other current liabilities		948,348		964,805
Total current liabilities		4,329,744		5,157,413
Long-term debt and finance lease obligations due after one year		6,613,687		4,961,410
Deferred credits and other liabilities		1,965,873		1,100,455
Total liabilities		12,909,304		11,219,278
EQUITY
Nucor stockholders' equity:
Common stock		152,061		152,061
Additional paid-in capital		2,143,520		2,140,608
Retained earnings		24,754,873		17,674,100
Accumulated other comprehensive loss, net of income taxes		(137,517)		(115,282)
Treasury stock		(8,498,243)		(5,835,098)
Total Nucor stockholders' equity		18,414,694		14,016,389
Noncontrolling interests		1,155,212		587,405
Total equity		19,569,906		14,603,794
Total liabilities and equity	$	32,479,210	$	25,823,072

Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)

	Twelve Months (52 Weeks) Ended
	Dec. 31, 2022		Dec. 31, 2021
Operating activities:
Net earnings	$	8,079,640	$	7,122,370
Adjustments:
Depreciation		826,692		735,406
Amortization		234,942		129,157
Stock-based compensation		136,834		135,775
Deferred income taxes		(46,849)		11,665
Distributions from affiliates		57,071		200
Equity in earnings of unconsolidated affiliates		(10,714)		(103,068)
Losses and impairments of assets		101,756		62,161
Changes in assets and liabilities (exclusive of acquisitions and dispositions):
Accounts receivable		501,225		(1,392,084)
Inventories		962,424		(2,307,336)
Accounts payable		(496,234)		383,428
Federal income taxes		(337,359)		313,679
Salaries, wages and related accruals		155,005		997,034
Other operating activities		(92,379)		142,389
Cash provided by operating activities		10,072,054		6,230,776
Investing activities:
Capital expenditures		(1,947,897)		(1,621,989)
Investment in and advances to affiliates		(258)		(237)
Sale of business		99,681		-
Disposition of plant and equipment		32,277		19,401
Acquisitions (net of cash acquired)		(3,553,191)		(1,426,424)
Purchase of investments		(913,898)		(493,889)
Proceeds from the sale of investments		590,173		648,887
Other investing activities		(9,596)		399
Cash used in investing activities		(5,702,709)		(2,873,852)
Financing activities:
Net change in short-term debt		(58,642)		49,817
Proceeds from issuance of long-term debt, net of discount		2,091,934		196,990
Repayment of long-term debt		(1,111,000)		-
Bond issuance related costs		(13,138)		-
Proceeds from exercise of stock options		22,852		145,255
Payment of tax withholdings on certain stock-based compensation		(64,079)		(73,260)
Distributions to noncontrolling interests		(332,293)		(150,700)
Cash dividends		(533,589)		(483,469)
Acquisition of treasury stock		(2,762,568)		(3,276,088)
Proceeds from government incentives		275,000		-
Other financing activities		(25,340)		(11,424)
Cash used in financing activities		(2,510,863)		(3,602,879)
Effect of exchange rate changes on cash		(5,920)		(316)
Increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents		1,852,562		(246,271)
Cash and cash equivalents and restricted cash and cash equivalents - beginning of year		2,508,658		2,754,929
Cash and cash equivalents and restricted cash and cash equivalents - end of year	$	4,361,220	$	2,508,658
Non-cash investing activity:
Change in accrued plant and equipment purchases	$	4,568	$	78,375

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SOURCE Nucor Corporation

Nucor Reports Record Annual Earnings for 2022