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Apr 04, 2020
Nucor Q1 2020 Earnings Report
Nucor reported a decrease in net earnings and sales, impacted by losses on assets and the COVID-19 pandemic.
Key Takeaways
Nucor's Q1 2020 earnings were significantly impacted by losses on assets of $287.8 million related to their equity method investment in Duferdofin Nucor S.r.l. Consolidated net earnings were $20.3 million, or $0.07 per diluted share, compared to $501.8 million, or $1.63 per diluted share, for Q1 2019. Net sales decreased by 8% to $5.62 billion compared to $6.10 billion in Q1 2019.
Consolidated net earnings were $20.3 million, or $0.07 per diluted share, including losses on assets.
Net sales decreased 8% to $5.62 billion compared to Q1 2019.
The company expects to report a loss in the second quarter of 2020 due to the COVID-19 pandemic.
Capital expenditure estimate for 2020 was revised down to less than $1.50 billion.
Nucor
Nucor
Nucor Revenue by Segment
Revenue by Segment
Steel Mills Revenue
CapyFin.comSteel Products Revenue
CapyFin.comRaw Materials Revenue
CapyFin.comCorporate/Eliminations Revenue
CapyFin.com Forward Guidance
Nucor expects to report a loss in the second quarter of 2020, but anticipates market conditions will bottom in Q2 and return to profitability in the second half of the year.
Positive Outlook
- Nonresidential construction has shown resiliency.
- Projects would be delayed rather than cancelled.
- Competitors having idled capacity in response to these challenging conditions.
- Market conditions will bottom in the second quarter
- Nucor will return to profitability in the second half of this year.
Challenges Ahead
- The economic outlook is highly uncertain.
- The duration of the COVID-19 induced downturn difficult to predict.
- Automotive and energy markets have seen the sharpest decline
- Likely that the Company will report a loss in the second quarter of 2020.
- COVID-19 pandemic continues to have a significant impact
Revenue & Expenses
Visualization of income flow from segment revenue to net income