On September 17, 2024, Nucor Corporation, a leading player in the steel industry, unveiled its earnings guidance for the third quarter ending September 28, 2024. The company anticipates earnings in the range of $0.87 to $0.97 per diluted share. When factoring in certain one-time non-cash charges estimated at approximately $123 million, or $0.43 per diluted share, Nucor's adjusted earnings are expected to fall between $1.30 and $1.40 per diluted share. This marks a notable decrease compared to the previous quarter, where Nucor reported net earnings of $2.68 per diluted share.
The one-time charges reflected in the third quarter guidance are primarily related to the impairment of specific non-current assets within Nucor's raw materials and steel products segments. These impairments highlight the ongoing challenges the company faces in a fluctuating market, particularly regarding its asset valuations. The steel industry has been experiencing significant pressure, with average selling prices declining, which has directly impacted earnings across various segments.
Nucor's steel mills segment is expected to report decreased earnings compared to the second quarter of 2024. This decline is attributed mainly to lower average selling prices, which have been influenced by a competitive market environment. Additionally, the steel products segment is also projected to see reduced earnings due to both lower selling prices and decreased sales volumes. The raw materials segment, which plays a crucial role in Nucor's overall operations, is similarly expected to face a downturn in earnings for the same reasons.
In a proactive move, Nucor has been actively repurchasing shares, having bought back approximately 2.5 million shares at an average price of $156.07 during the third quarter alone. This brings the total share repurchases for the year to about 11 million shares at an average price of $172.36 per share. Such actions reflect Nucor's commitment to returning value to its shareholders, especially during challenging financial periods.
Year-to-date, Nucor has returned approximately $2.29 billion to its stockholders through a combination of share repurchases and dividend payments. This strategy not only aims to enhance shareholder value but also demonstrates the company's robust financial position despite the current market challenges. Nucor's focus on maintaining a strong balance sheet while navigating these obstacles is crucial for its long-term sustainability.
