Nucor anticipates big earnings figure

Charlotte, North Carolina-based Nucor Corp., in guidance issued for its fourth-quarter earnings, says it expects the highest quarterly earnings in Nucor history, surpassing the previous record of $7.28 per diluted share that was set in the third quarter of 2021.

The scrap-fed electric arc furnace (EAF) steel producer says it expects earnings for the quarter in progress, which will end Dec. 31, to be in the range of $7.65 to $7.75 per diluted share.

“Steel mills segment earnings in the fourth quarter of 2021 remain robust and are expected to be comparable to the third quarter of 2021 despite lower volumes caused by year-end seasonality,” states Nucor. “We expect the steel products segment to generate increased earnings in the fourth quarter of 2021 as demand in nonresidential construction markets remains strong.”

Regarding its raw materials segment, which includes the nationwide network of scrap yards operated by Cincinnati-based David J. Joseph Co. (DJJ), the firm says earnings in that business unit are “expected to decrease in the fourth quarter of 2021 as compared to the third quarter of 2021.” Nucor, however, does not cite the scrap market as the reason.

Instead, the steelmaker says that unit’s earnings drop will be “primarily due to margin compression at our direct reduced iron (DRI) facilities.” Although Nucor does not mention it, DRI production is natural gas-intensive, and prices for that fossil fuel have risen steadily this quarter.

“As we approach the end of the most profitable year in Nucor’s history, demand continues to be strong in most of the end markets we serve,” concludes the steel producer, which refers to itself as “North America’s largest recycler.” Adds the firm, “We are confident that 2022 will be another year of strong profitability for Nucor.”