(Nucor Corp., 17.Mar.2022) — Nucor Corporation (NYSE: NUE) announced guidance for its first quarter ending 2 April 2022. Nucor expects to achieve a new record for first quarter earnings in the range of $7.20 to $7.30 per diluted share. Fourth quarter of 2021 earnings were $7.97 per diluted share and first quarter of 2021 earnings were $3.10 per diluted share.
Steel mill segment earnings in the first quarter of 2022 are expected to decrease from the fourth quarter of 2021, primarily due to the decreased profitability of the sheet mills. While end market demand remains strong, average realized selling prices in sheet have softened during the first quarter reflecting increased import volumes coupled with modest destocking. The steel products segment is expected to generate increased earnings in the first quarter of 2022 relative to the fourth quarter of 2021 due to continued strong nonresidential construction related demand and expanding profit margins. For the first quarter of 2022, earnings for the raw materials segment are expected to be in line with fourth quarter of 2021 performance.
Continued solid demand across most end markets we serve combined with the strength of Nucor’s business model provide confidence that 2022 will be another very strong year. We have recently announced price increases across the steel mills segment and expect profitability to improve. Recent geopolitical events and the resulting price increases for steelmaking raw materials have accentuated the value of Nucor’s adaptive business model and flexible raw materials profile.
Continuing Share Repurchases
So far during the first quarter, Nucor has repurchased approximately 4.3 million shares at an average price of approximately $115.35 per share. Nucor has returned more than $630mn to stockholders in the form of share repurchases and dividend payments year-to-date.
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