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Nucor
🇺🇸 NYSE:NUE
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Dec 31, 2019

Nucor Q4 2019 Earnings Report

Nucor's earnings decreased in Q4 2019 compared to Q3 2019 and Q4 2018, with net earnings of $107.8 million, or $0.35 per diluted share.

Key Takeaways

Nucor Corporation reported consolidated net earnings of $107.8 million, or $0.35 per diluted share, for the fourth quarter of 2019. This includes non-cash impairment charges of $66.9 million, or $0.17 per diluted share. The company's performance was influenced by stronger than expected steel mill segment performance in December and improved general business conditions. Nucor's consolidated net sales decreased 6% to $5.13 billion in the fourth quarter of 2019 compared with $5.46 billion in the third quarter of 2019 and decreased 18% compared with $6.30 billion in the fourth quarter of 2018.

Q4 2019 earnings were higher than mid-December quantitative guidance due to stronger steel mill segment performance in December.

Inventory destocking concluded in Q4 2019, with customers resuming normal buying patterns.

General business conditions improved due to factors like a Federal Reserve rate cut and progress on trade.

Steel products segment had its best fourth quarter in history.

Total Revenue
$5.13B
Previous year: $6.3B
-18.5%
EPS
$0.52
Previous year: $2.07
-74.9%
Average sales price per ton
5%
Previous year: 16%
-68.8%
Total external shipments
6.49M
Previous year: 6.69M
-3.0%
Gross Profit
$435M
Previous year: $1.11B
-60.9%
Cash and Equivalents
$1.53B
Previous year: $1.4B
+9.7%
Free Cash Flow
$197M
Previous year: $135M
+45.9%
Total Assets
$18.3B
Previous year: $17.9B
+2.4%

Nucor

Nucor

Nucor Revenue by Segment

Forward Guidance

Nucor expects earnings in the first quarter of 2020 to increase as compared to the fourth quarter of 2019. We expect earnings in the steel mills segment to increase in the first quarter of 2020 as compared to the fourth quarter of 2019 (excluding the fourth quarter of 2019 impairment charge), due to the previously mentioned price increases and expected higher volumes.

Positive Outlook

  • Earnings in the first quarter of 2020 are expected to increase compared to the fourth quarter of 2019.
  • Earnings in the steel mills segment are expected to increase due to price increases and higher volumes.
  • A more stable pricing environment is expected in 2020.
  • Performance of the raw materials segment is expected to increase due to improved pricing.
  • There will be no planned nonroutine outages at the Louisiana DRI plant.

Challenges Ahead

  • Profitability of the steel products segment is expected to decrease due to normal seasonality.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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