Nucor sees more profits ahead
Image provided by Dreamstime.

Nucor sees more profits ahead

Steelmaker forecasts record quarterly earnings per share figure for current timeframe.

Nucor Corp., Charlotte, North Carolina, has announced guidance for its second quarter ending July 2, 2022, that includes an earnings per share figure in the range of $8.75 to $8.85 per diluted share.

A figure in that range “would surpass the previous quarterly earnings record of $7.97 per diluted share set in the fourth quarter of 2021,” states the operator of scrap-fed electric arc furnace (EAF) mills and several dozen scrap yards.

Nucor reported net earnings of $7.67 per diluted share in the first quarter of 2022 and $5.04 per diluted share in the second quarter of 2021.

The company says its earnings in the second quarter of 2021 were held down in part by a “noncash impairment charge related to our leasehold interest in unproved oil and natural gas properties.”

The company says of current market conditions, “End use market demand remains strong for steel and steel products, and we remain confident that 2022 will be another year of very strong earnings and cash flow for Nucor. Second quarter earnings will be driven by increased profitability in the steel products segment, which continues to benefit from robust demand in nonresidential construction markets.”

The company says its steel and its scrap operations both are operating profitably in 2022. “The steel mills segment earnings are expected to strengthen due primarily to increased profitability at our bar, sheet and plate mills. Similarly, Nucor’s raw materials segment is expected to generate increased profits in the second quarter due to relatively higher selling prices for raw materials,” Nucor says.