Nucor reports $193.4 million in net earnings for Q3

Nucor reports $193.4 million in net earnings for Q3

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Nucor Corporation announced consolidated net earnings of $193.4 million for the third quarter of 2020. By comparison, Nucor reported consolidated net earnings of $108.9 million for the second quarter of 2020 and $275.0 million for the third quarter of 2019.

Nucor’s consolidated net sales increased 14 percent to $4.93 billion in the third quarter of 2020 compared with $4.33 billion in the second quarter of 2020 and decreased 10 percent compared with $5.46 billion in the third quarter of 2019. Average sales price per ton in the third quarter of 2020 decreased 2 percent compared with the second quarter of 2020 and decreased 7 percent compared with the third quarter of 2019.

A total of 6,367,000 tons was shipped to outside customers in the third quarter of 2020, a 16 percent increase from the second quarter of 2020 and a 3 percent decrease from the third quarter of 2019. Total steel mill shipments in the third quarter of 2020 increased 18 percent as compared to the second quarter of 2020 and decreased 3 percent as compared to the third quarter of 2019. Steel mill shipments to internal customers represented 21 percent of total steel mill shipments in each of the third quarter of 2020, the second quarter of 2020 and the third quarter of 2019. Downstream steel product shipments to outside customers in the third quarter of 2020 increased 14 percent from the second quarter of 2020 and remained flat compared to the third quarter of 2019.

Overall operating rates at the company’s steel mills increased to 83 percent in the third quarter of 2020 as compared to 68 percent in the second quarter of 2020 and were flat relative to the third quarter of 2019.

In a press release, the company said nonresidential construction market conditions remained strong throughout the quarter, while the automotive market’s recovery accelerated. The results of the steel mills segment improved in the third quarter of 2020 as compared to the second quarter of 2020, led by Nucor’s bar and structural mills. However, the company said market conditions for its sheet and plate mills remained challenged.

The company’s steel products segment had another strong quarter due to the continued resiliency of nonresidential construction markets, Nucor said, and as expected, earnings for the third quarter of 2020 increased compared with the second quarter of 2020 for this segment. Third quarter of 2020 earnings in Nucor’s raw materials segment increased as compared to the second quarter of 2020 due to improved pricing reflecting stronger steel demand.

As for a Q4 outlook, Nucor said the ongoing COVID-19 pandemic continues to cause uncertainty, making it difficult to accurately forecast future market conditions and demand trends. While many of the markets Nucor serves have typically experienced a seasonal slowdown in the fourth quarter, the company expects higher earnings in the fourth quarter of 2020 as compared to the third quarter of 2020 due primarily to improved pricing at its sheet and plate mills. Nucor also expects the raw materials segment’s earnings to increase in the fourth quarter of 2020 as compared to the third quarter of 2020 due to the improved margins at the company’s direct reduced iron facilities.

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