Yahoo Finance Nucor Corp (NUE) Q1 2024 Earnings Call Transcript Highlights: Strong Performance and Strategic ...
EBITDA: Approximately $1.5 billion.
Net Earnings: $845 million.
Earnings Per Share (EPS): $3.46 per diluted share.
Total Shipments: 6.2 million tons to outside customers.
Steel Mill Pricing: Average per ton up nearly 10% from the prior quarter.
Dividends and Share Repurchases: Returned over $1.1 billion to shareholders.
Capital Spending: $670 million in capital expenditures.
Safety Performance: Lowest injury and illness rate in Nucor's history for the quarter.
Steel Products Segment Pretax Earnings: Approximately $512 million.
Raw Materials Segment Pretax Earnings: Approximately $10 million.
Cash from Operating Activities: Generated $460 million.
Total Debt to Capital Ratio: Approximately 24%.
Total Leverage: Roughly 1x trailing 12-month EBITDA.
Release Date: April 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Within the steel mill segment, both bar and plate volumes were down double digits versus last year. Do you anticipate a similar trend of double-digit declines in these products to continue in 2Q? A: Leon J. Topalian, President, CEO & Chairman of the Board, Nucor Corporation: We expect Q2's volumes to be a little substantial but stronger, although pricing is moderating. Despite the moderation, many of our product groups are expected to generate robust returns. Markets like construction, automotive, energy, and service centers are showing stable or slightly improving demand into Q2.
Q: The estimated conversion cost in steel mills declined modestly versus the prior quarter. Do you expect a similar sequential decline in 2Q on conversion costs per ton? A: David A. Sumoski, COO, Nucor Corporation: Costs are down slightly mainly due to higher utilization rates. We don't anticipate significant further declines, so costs should stabilize or be slightly lower than in the first quarter.
Q: Raw materials are expected to improve in 2Q on both DRI and recycling operations. What will drive the improvement in recycling, given recent pricing trends? A: Noah C. Hanners, EVP of Raw Materials, Nucor Corporation: Margin normalization is expected due to stabilizing scrap prices and the commissioning of a new advanced metal recovery plant in Florida, which will contribute to more normalized margins in recycling.
Q: Can you comment on the downstream product categories and expectations for joist and deck pricing and volumes? A: Brad Ford, EVP of Fabricated Construction Products, Nucor Corporation: We've seen quote and booking activity accelerate, especially in March. Joist and deck started the year slow but volumes are expected to improve in Q2. Pricing has stabilized at levels much higher than historical norms, reflecting the value of the products we bring to the market.
Q: How do you see infrastructure spending evolving this year, and can you give an update on the Brandenburg plate mill? A: Leon J. Topalian: Infrastructure spending is still in early stages with expected ramp-up in the coming years. The Brandenburg plate mill ramp-up is on track, with volumes expected to double each quarter moving forward.
Q: What are your views on the plate market given current market conditions and the ramp-up of the Brandenburg mill? A: Allen C. Behr, EVP of Plate & Structural Products, Nucor Corporation: The plate market consumption remains steady with strength in areas like power transmission and bridge work. However, challenges include competition from imports and pressure on margins. The outlook for the year is steady, with potential softening in the second half due to election cycles.
These highlights from the Q&A session of Nucor Corp's earnings call provide insights into the company's performance across different segments, expectations for future market conditions, and strategic initiatives in response to industry trends and customer needs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
