In the fourth quarter of 2023, Nucor Corporation reported earnings of $3.16 per share, a decrease from $4.89 per share in the previous year. The company’s net sales totaled $7,704.5 million, reflecting an 11.7% year-over-year decrease primarily attributed to declining prices.
Steel Division Performance
The external sales volume of steel mills increased by 8% compared to the same period last year, reaching 5,513,000 tons. However, the average selling price decreased by 15% annually to $1,015 per ton. Operational metrics for steel mills declined to 74% in Q4 2023 from 77% in Q3 2023.
Impact on Profit Margins
The profit of the steel mills division dropped by 33% sequentially due to price decreases. Similarly, profits from steel products decreased by 19% in the fourth quarter, influenced by price reductions and supply cuts. Additionally, the raw materials segment saw a 120% decrease in profits due to price declines and plant shutdowns.
Financial Overview
Nucor’s cash and equivalents amounted to $6,383.3 million by the end of the quarter, a 49% increase compared to the previous year. Long-term debt remained unchanged at $6,648.9 million. During the quarter, the company repurchased approximately 1 million common shares at an average price of $177.18 per share.
2023 Financial Results and Outlook
In 2023, Nucor reported a net profit of $4.52 billion, or $18 per share, contrasting with $7.61 billion, or $28.79 per share, in 2022. Total sales for the year amounted to $34.71 billion, a 16% decrease from 2022. Despite a 1% decline in external shipments, Nucor expects increased profitability in Q1 2024, particularly in the steel mills segment, driven by rising average selling prices and volumes.
Investment Opportunities
For investors interested in US stocks, particularly in the steel industry, Nucor’s quarterly earnings report provides valuable insights into market trends and future projections. Stay informed and make informed investment decisions with ProfitsForce’s comprehensive analysis tools.
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