Nucor Corporation, a leading player in the steel industry, has reported consolidated net earnings attributable to Nucor stockholders of $249.9 million, translating to $1.05 per diluted share for the third quarter of 2024. When excluding non-cash impairment charges incurred during this period, the company’s adjusted net earnings were significantly higher at $353.0 million, or $1.49 per diluted share. This marks a noticeable decline compared to the previous quarter's earnings of $645.2 million ($2.68 per diluted share) and the third quarter of 2023, which saw earnings of $1.14 billion ($4.57 per diluted share).
The financial landscape for Nucor in Q3 2024 reflects the impacts of non-cash impairment charges totaling $83.0 million, which accounts for approximately $0.27 per diluted share. These impairments were related to certain non-current assets in both the raw materials and steel products segments. This highlights the challenges faced by the company in maintaining asset values amidst fluctuating market conditions.
In the first nine months of 2024, Nucor's consolidated net earnings totaled $1.74 billion, or $7.22 per diluted share, which is a significant drop compared to $3.74 billion ($14.83 per diluted share) reported during the same period in 2023. Leon Topalian, Nucor's Chair, President, and CEO, emphasized the company's focus on safety and cash flow, stating, "Nucor's market leadership, product diversity, and strong balance sheet enable us to provide meaningful returns to shareholders."
An analysis of segment performance reveals that the steel mills segment generated earnings of $309.1 million in Q3 2024, a sharp decline from $882.6 million in Q3 2023. Similarly, the steel products segment reported earnings of $314.0 million, down from $806.7 million in the same period last year. In contrast, the raw materials segment faced a loss of $66.3 million, marking a significant downturn compared to profits in the previous year.
Nucor's consolidated net sales for the third quarter fell 8% to $7.44 billion, down from $8.08 billion in Q2 2024 and 15% compared to $8.78 billion in Q3 2023. The average sales price per metric ton also saw a decrease of 6% from the previous quarter and a 15% drop compared to the same quarter last year. Despite shipping approximately 6.2 million metric tons in Q3 2024, a slight 1% decrease from both the previous quarter and the same quarter last year, the company has indicated that the steel mill shipments to internal customers accounted for 19% of total shipments, a slight decline from previous figures.
The average cost of scrap and scrap substitutes used per gross metric ton also reflected a downward trend, costing $378 in Q3 2024, which is a 5% decrease from $396 in Q2 2024 and a 9% decrease from $415 in Q3 2023. This decrease in input costs may provide some relief to Nucor as it navigates lower selling prices.
Looking ahead, Nucor expects a decrease in consolidated net earnings for the fourth quarter of 2024 compared to the $1.05 reported for Q3 2024. The anticipated decline is largely attributed to the steel mills segment, which is expected to face continued pressure from lower average selling prices and reduced volumes. However, the company remains optimistic about the raw materials segment, projecting a potential increase in earnings when excluding the impairment charge from the previous quarter.
