And so that's what we found at Hannibal. The valuation is attractive and the dividend yield is interesting. And so you are going to see Nucor continue to move and invest in projects where we can combine our culture, our strong balance sheet, and our investment strategy in deploying capital that will greatly exceed our cost of capital goals to return to our shareholders. We are seeing many of our construction, many of our OEM partners outside of automotive that are beginning to ask for this. Nucor stock forecasts are adjusted once a day based on the closing price of the previous trading day. Maintenance capital spending for equipment replacement spares and cost savings projects accounts for the roughly 25% remaining. We have got one project that we are going to be closing out soon and that's on the CSI project, but it's not as big as the combined things we did last year by large amount and there could be other things coming. World leaders must find new sources of minerals, such as copper, essential to their transition to energy independence. Two weeks ago, we announced that Mason County West Virginia will be the location of our new state-of-the-art 3 million ton sheet mill. In addition, there are four initial steps for setting up a profit sharing plan:Adopt a written plan document,Arrange a trust for the plan's assets,Develop a recordkeeping system, andProvide plan information to employees eligible to participate. Reflecting this for 2021, our profit sharing total about $850 million. So we expect to keep doing things to try and deal with that. We hired a -- our shift to the general manager, existing general manager Nucor over that business, but we are really pulling that group in to get them to understand Nucor integrate and look at our production bonus system and how we incorporate that, but it's very much step in learn as much about their business as well. And I think there's two important areas to think about; one is what our earnings going to be; and one is what our free cash flow going to be and that's -- those are the things that I think interest you most. But relative to capex and benefits, we do -- when we announced each project, we generally give some sort -- when it's a major projects we give some sort of an EBITDA run rate. If you look at our industry over the last 12, 18 to 24 months, there has been significant shifts in consolidation, rationalization and trade. Congratulations to the entire Nucor Arkansas team. Zoetis, Pet-Med Specialist, Double-Digit Earnings Growth Ahead, 3 Mid-Cap Earnings Plays to Watch This Week. Earnings per share were $7.97, exceeding our guidance range of $7.65 to $7.75. Hannibal has been very successful, but also just a cultural fit in the first place. So, it enables Nucor to offer what we did to General Motors a few weeks ago in the first coil of net zero steel to their to their factory. 06/28/1995. Operator, we are now ready to take questions. Nucor's consolidated net sales increased slightly to $10.36 billion in the fourth quarter of 2021 compared with $10.31 billion in the third quarter of 2021 and increased 97 percent I will kick us off and ask Chad Utermark, our Executive Vice President of Products to really add some color in there. This investment, which is expected to close shortly, expands our geographic reach in the sheet market, grows our portfolio of value-added sheet products, and enables us to supply Nucor's downstream businesses in the region, including Verco and the recently acquired Hannibal Industries. We have the opportunity to continue to enhance that and do what's required to meet that demand picture. It's not about adding capacity. Please check your download folder. An Overview of Blue Chips. At Nucor Corporation, workers receive some pension and welfare benefits. Net income for 2021 was $6.8 billion and full year earnings per share was $23.16, which were both notable increases over the prior records we'd set in 2018 with $2.4 billion of net income and an EPS of $7.42. Nucor gross profit for the twelve months ending December 31, 2022 was The minimum target price for Nucor analysts is $ 136.4 . WebInsane money for profit sharing in excellent years. And also can you talk about the ramp up profile at Gallatin and the total incremental volumes you expect from the mill for the current quarter as well as the full year. Yes, Satish. We should see some strong tailwind from lower input cost, so just any color you can provide. March 1, 2023 Our analysis suggests that Nucor shares are significantly undervalued relative to our risk profile, earnings and cash flow generation capacity. And if you think about Nucor's 55% return on equity, a large piece of that was attributable because of the sheet group. These are healthy margins due to the supply and the strong demand balance that's out there. Good afternoon, and welcome to our 2021 fourth quarter and full year's earnings call. Volume 693,839. So, I'll go back and read our earnings releases that we published about each of the major projects and see that data. We had going into it, some strength in the marketplace from a demand standpoint. The reason for that is: 1. Back to NUE Overview. You mentioned you are hot band exposure in right now, we are looking at historically wide spreads between hot rolled and value-added products. Really just pleased with what's occurred there the start up of that. Our expectation and our stated goals are to double that to around 3 million tons. In December, we announced our plan to build a new rebar micro mill with annual capacity of 430,000 tons in the South Atlantic region. We have finished the year close to $800. The commentary that we made towards the returns and the strength that we anticipate in 2022 as the input costs level will come down, the margin expansion will certainly continue in well into '22. And as Jim will share, we remain very well capitalized enable to pursue our objectives. Medical and dental are just the beginning. Powered by CiteTotal, online essay bibliography maker. 2021 capital returns consisted of dividends of $483 million and share repurchases of just under $3.3 billion. But that's the reasons why we are being impacted where we are is our reliance on the hot band market. Charlotte, North Carolina-based Nucor Corp. has reported net earnings of $2.36 billion for its fiscal year 2018, which coincides with the calendar year. I will leave it at that. And speaking of those, as we move into 2022, we are not letting up when it comes to executing our strategy to grow our value-added product portfolio and expand into new product markets and geographic regions. Look, I can only speak to Nucor and I would just tell you Nucor has had a long history of what five and a half decades worth of reinvesting back into our mills. View Russia Ignites West's Battle for Energy Independence, View 3 Midcap Energy Stocks Set For Triple-Digit Earnings Growth, View Want Monthly Income? Yeah, hi, good afternoon. Answer: -Nucors employee profit sharing system wouldnt work at a much larger company. These include the Kentucky plate mill, the West Virginia sheet mill, the South Atlantic rebar micro mill, and Gallatin's tubular products facility. Nucor net profit margin for the three months ending December 31, 2022 was . But if I think back to, even in the height of the pandemic in 2020 that business segment remain incredibly robust that is continued and we see that continuing moving forward. (RTTNews) - Nucor Corp. (NUE) reported earnings for its fourth quarter that increased from last year and beat the Street estimates. Like Nucor Common employee benefits include health insurance, flexible spending accounts, and paid time off. There is a very disciplined process. Rex? A free inside look at company reviews and salaries posted anonymously by employees. And so I am not going to detail out what the value is. (2020) 'Nucor Corporation Against Low-Cost Steel Imports'. It also produces direct reduced iron ('DRI') that is used in its steel mills. Form 4 or Form 5 obligations may continue. If you are a stockholder of record (i.e., your shares are registered in The announcement of our rebar micro mill to continue our market leadership position in rebar, the new mill in West Virginia, we are incredibly excited about, because again it provides a long-term differentiated value proposition for our customers that they have been asking for it in need. Yeah, Timna, thanks for the question. We are very excited to begin work with the local community in Mason County on this transformational project that will create substantial long-term value for all Nucor shareholders. Which Dollar Store, If Any, is Worth Your Investment Dollars? So our contract season for us, we finished very typical with what we target for contract CIS, both on the service center side as well as overall. As Leon mentioned, fourth quarter of 2021 earnings of $7.97 per diluted share established a new quarterly record, eclipsing the prior record of $7.28 per share established in last year's third quarter. Very good, thank you. Second question, if I may, is you -- given the $5.5 billion in capex over the next three years, I mean, some of that already is ongoing with projects that you are executing, but how do you see the returns on these investments, any sense of the incremental EBITDA that you could generate from these projects that would be great. This represents another new quarterly record for our company. Focusing on the quarter, we expect consolidated net earnings attributable to Nucor shareholders will be slightly reduced from the fourth quarter of 2021's record results. Established in 1985, the plan covers all the employees of Nucor, a US steel producer. A New Dividend King is Crowned 50 Years of Dividend Increases. Finally, I would also like to mention a new project in our bar mill group. Stock Bonus. Okay. As we have mentioned throughout the call, we used to track and ensure, I think, the numbers of end markets and we track virtually every end market that you can imagine, of all of the end markets we look at virtually every one of them is projected to grow. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Thanks for taking the question. At this time, I will turn the conference back to Mr. Leon Topalian for any additional or closing remarks. The benefits are terrible, that's why it always amazes me when people say great benefits. All rights reserved. Thank you for your interest in Nucor. And as we need to move that according to the supply and demand market in the markets we will do that, but what direction that may go is just tough for us to tell, then the demand is good, and we are encouraged. So the things from great extra some of those things, but we are -- discussed with our customers, but at the same time, you got to look at the total package, if you will of what they see is value. We are leveraging our competitive advantage to aggressively and opportunistically pursue value enhancing long-term growth. The words we expect, believe, anticipate, and variations of such words and similar expressions are intended to identify those forward-looking statements which are based on management's current expectations and information that is currently available. So in March we will commission the EAF, LMF and the caster and by the end of March we will be capable of full production at that point with a wider strip and a thicker slab, but we are going to keep an eye on the market and will really measure that ramp up as we see what market conditions are doing at Gallatin. View which stocks are hot on social media with MarketBeat's trending stocks report. As we mentioned and have talked previously, our mission is very simple. Types of Profit-Sharing PlansCash Plan. The employees covered under this plan are given with cash or stock of the organization or company at the end of every year or quarter as Deferred Plans. The profit-sharing is directed into a specific fund know as the trust fund, which provides the rewards to the employees on a later date, often on Combination Plan. Currently, Nucor is trading at 12.4x next year's earnings and a dividend yield of 3.4%. Timna, one thing I would add to that is, to keep in mind, we are a bit more hot band centric than some of our competitors and that's where most the imports have come in. On the contract side, we are -- contract season I would say it was what we expected. We are pleased that our leaders came together in the fourth quarter to pass historic bipartisan infrastructure legislation that will help advance and modernize U.S. infrastructure and strengthen the health of our economy by creating opportunities for American workers. And as Leon just stated about Gallatin, it's really an opportunity is we are getting some work done there. So that's a step for sure into that and the new Midwest mill as Leon mentioned. Yeah. Thank you. I think there's three things of Nucor's touched on over really the last year. And if you combine that with our backlogs that are very robust and in some cases they are all time record backlogs, so that's one dataset that we look at. Auto is still down. We look forward to introducing our new capabilities to strategic customers as the year progresses and we are excited about the returns expected to be generated for our shareholders as these projects ramp-up. Profitability records were set by numerous businesses including Nucor sheet mills, rebar and merchant bar mills, engineered bar mills, plate mills, structural mills, joist and deck, tubular products, cold finished bars, and fasteners. Good luck in the year. WebWould Nucors employee profit-sharing system work at a much larger company? We made somewhere in the $285 per ton of EBITDA in sheet in the first quarter. There are still businesses that have more room to go in terms of expanding their margins and getting prices cut because of the size of what their backlogs are good. But we are optimistic about the plate market. Secondly, you have touched on and others have touched on this already, we have got the largest downstream products businesses of any steel companies and there we are getting margin squeezed for all of last year and pricing is finally starting to catch up. 326 E 8th St #105, Sioux Falls, SD 57103 Yeah, Emily. Although Nucor believes they are based on reasonable assumptions, there can be no assurance that future events will not affect their accuracy. So we are in the 80% range in overall target for us, so fairly typical from a volume standpoint as we finish up contract season for heading into 2022. Thank you and have a great day. The share repurchases totaled more than 33.8 million shares at an average cost of about $97 per share. Coming off a historic year like we had in '21. And congratulations on the strong update today. There are some headwinds for next year. And so we would expect that we need to keep investing and returning capital to investors both and we have the capacity to both as we go forward. Thank you. Net profit margin can be defined as net Income as a portion of total sales revenue. Jim anything you would add? So, overall, we think about end-use demand for steel will be up in '22 over '21 and there are some important pieces that are not benefiting us in the first quarter of this year that are still coming sets the starting point. I will start off and thanks for the question. We averaged $560 per ton in sheet last year. Fourth quarter earnings also exceeded our guidance range of $7.65 to $7.75 per diluted share. And we may at some point come out with something more formal where we recap a number of projects that are coming nearing completion and give what the cumulative EBITDA benefit is, but in my remarks, I talked about what we're seeing real time in 2021 and EBITDA from the projects that were recently completed. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: Good day, everyone, and welcome to the Nucor Corporation Fourth Quarter of 2021 Earnings Call. As of 12/31/18, this particular employee is 40% vested, and therefore, entitled to $400 of the $1,000 balance. Raw materials will be down year-over-year and that's because in 2021 when raw material prices were rising, we had inventory in the supply chain when we captured value hence we made money in DRI, because of low iron ore prices that we had on the ground and in our contracts, we made money in scrap, because we had scrap in our scrap yards that was being priced higher every month and every quarter prices were rising. Record full year net income of $6.8 billion was driven by Nucor's diverse portfolio of products and capabilities. So that is going to continue. Thank you for the color. But if we think about overall volumes in the first quarter, it's probably going to be slightly up because of seasonality in the first quarter. WebNucor Corp. NUE (U.S.: NYSE) View All companies. On December 16th, our Nucor Steel Arkansas Sheet Mill produced its first prime coil from its new generation 3 flexible galvanizing line. Joining me on the call today are several members of Nucor's executive team including Jim Frias, our Chief Financial Officer; Dave Sumoski, Chief Operating Officer; Al Behr, responsible for Plate and Structural Products; Doug Jellison, responsible for Raw Materials and Logistics; Greg Murphy, responsible for Business Services and our General Counsel; Dan Needham, responsible for Bar and Rebar Fabrication and Engineered Bar Products; Rex Query, responsible for Sheet and Tubular Products; MaryEmily Slate, responsible for Commercial Strategy; and Chad Utermark, responsible for Fabricated Construction Products. REAL TIME 2:15 PM EST 02/27/23. Get daily stock ideas from top-performing Wall Street analysts. I am extremely proud of all of our teammates who are working so hard on all of these projects as they are prime examples of Nucor's continued execution of our mission to grow the core, expand beyond and live our culture. Hey, a couple of questions on the market. We are working diligently through the integration and on-boarding process. We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. The steelmaker says its record earnings per diluted share of $7.42 is 24 percent higher than previous record earnings of $5.98 per diluted share reported in 2008.. And then my second question will also be just kind of bigger picture, the focus on potential capacity curtailments has been on the blast furnace side, but I presume technology today on the flat [Technical Issues] side has improved pretty considerably since the late 1980s. Do you want to talk about that at all? That team has been in construction mode for quite some time now. But again the outlook and the demand picture across every end market the Nucor serves remains very robust, and again, we think this is going to work through the inventory rebalancing and position us well as we move forward. Thank you. But what's norm, right? Our talented, dedicated team members are Nucor's greatest value creators. A1 drilling and taking 2020 21 22 23 Fried didnt respond to a re- lar fraud that was among the some pressure off A new indictment unsealed quest to comment. At year-end gross debt as a percentage of total capital was approximately 28%, while net debt was about 14% of total capital. We are below that right now. Our next question comes from Timna Tanners with Wolfe Research. The green economy is being built on steel and the steel is built on matters. Thank you. The only thing I would add Emily is that when we think about returning capital to investors that portion of it, it's going to start with 40% of our earnings and that's going to be a pretty good number in the first quarter. Our crystal ball gets pretty fuzzy when we look out very much past the next month or so. 06/30/1995. We are also capitalizing on the opportunities to supply the sustainable steel that is building our 21st century economy. Our Gallatin team members continue to impress with their ability to safely construct the expansion project within the environment of an operating mill and we look forward to its continued ramp up. But end market demand remains strong. 401 (k) Plan. The insulated metal panel space has been attractive to Nucor for a long time and we were excited back in 2019 to purchase a start-up company called TrueCore and we are equally excited to welcome the Cornerstone IMP team into Nucor. Retirement Savings Plan Invest today for what you plan to accomplish tomorrow, with matching contributions and They are tasked with growing that business. Thanks for the question. Nucor Corp.s record 2022 earnings means the Charlotte-based steel company will hit another milestone almost $1 billion in profit sharing for the nearly 31,000 people who work for the company. That easily beat 2020s $721.5 million in net The maximum contribution for a profit-sharing plan is the lesser of 25% of compensation or $61,000 in 2022, up from $58,000 in 2021. Regarding the visibility we have good visibility. We have much to look forward to as we progressed throughout this new year. In that, as we reinvest in our infrastructure, we do so with steel produced in America the highest quality cleanest deal possible. Automotive is going to be significant portion of what we look for in that business for that. The demand in key markets is very good and we instituted a published price in obviously of 2020 and that's a relevant price. Can you talk a little bit about how good your visibility is for sheet in particular and what you are looking for in order to ramp up Gallatin like what conditions, is it demand is it price or both? Yeah, maybe I will start with the automotive and Rex, you can update on the contracts. WebNucor Corporation Profit Sharing and Retirement Savings Plan is a multi-employer defined contribution corporate pension fund based in Charlotte, North Carolina. First, congrats on your first delivery to GM. We have talked about that quite a bit. CSI is a flat rolled converter with annual capacity to produce more than 2 million tons of finished steel and steel products. And before I leave this topic, I just want to note that we believe we are seeing an acceleration of a transformation in our industry that has been underway for decades, forces driving economic efficiency and lower emissions in steel making. The company match changes every year depending on how the company is performing. The location along the Ohio River provides Nucor with important transportation and logistics advantages in serving the country's two largest sheet steel consuming regions in, the Midwest and Northeast, two areas where Nucor is currently under-represented. The U.S. invoked the Defense Production Act to jumpstart domestic mining and production of critical minerals such as cobalt, lithium, and rare earths, which the U.S. desperately needs for its military and green tech. WebNucor The manufacturer of steel and steel products is headquartered in Charlotte, N.C. We're proud to have been able to provide cash returns via dividends and share repurchases totaling about $3.8 billion in 2021 and in December to increase our regular quarterly dividend for the 49th year in a row this year by 23% to a rate of $0.50 per quarter. Looking at 2021 as a whole we said several other financial records. So I expect that we are going to scale up. At the same time balancing out, we have invested a lot of money. 21 June. Seth, I want to turn that to Al Behr, our EVP of Plate and Structural Group. Capital returns have averaged 58% of net income over the five-year period ending in 2021 and they were 55% of Nucor's net income for the year up 2021. And at the end of the day, supply and demand will always be the drivers to how we price our products. And if you look at what we have done over the past few years, we have been adding galvanizing lines, we're ramping it up at Arkansas right now. WebProfit Sharing Retirement Savings Medical Tuition Scholarships Growth Potential Balance Paid Parental Leave EMPLOYER RECOGNITION 1915 Rexford Road Charlotte, North The statutory federal tax rate for corporate profits is 21 percent. The automotive sector that Jim Frias mentioned as well. CASH. That value will continue to increase. Our daily ratings and market update email newsletter. While 2021 clearly revealed the earnings and cash generation power of Nucor's businesses, it also provided an opportunity for us to fully demonstrate Nucor's balanced capital allocation framework. While we faced some short-term challenges with chemical supply and a portion of inadequately priced backlog at the time of acquisition, we are still very excited about our future in IMP. 1 There are also limits on the amount of your pay that goes into figuring out contributions. Auto is still down, because of the chips. Billions could be poured into exploration companies searching for new U.S. deposits. Certain statements made during this conference call will be forward-looking statements that involve risks and uncertainties. Put the employee bonus plan in writing. Base the bonus on results that are measurable or quantifiable. Give incentives to employees to meet goals. Be clear on the WHAT, the WHY, and the HOW. Make sure everybody gets something. Make the financial reward a strong enough incentive. Thank you, Chad. And if you think about to move in the time over the last 24 to 36 months and what's going on in the world of ESG, the sustainability side of our industry is paramount and again Nucor is incredibly well positioned as one of the cleanest steel makers in the world to offer steel like we just did to General Motors. Is Does Magna International Earnings Warning Bad for EV Sales? Yeah, good morning, everyone. We reduced our share count by more than 11% in 2021 even as we funded capital expenditures and acquisitions totaling approximately $3 billion to drive the next chapter of our growth story. Through its network of 'mini-mills', the company produces steel sheets, bars, plates as well as various structural and other products. [Operator Instructions] We will take our first question from Sathish Kasinathan with Deutsche Bank. WebNucor net income for the twelve months ending December 31, 2022 was $7.581B, a 11.56% increase year-over-year. WebDistributions. It's going to have a capacity over the year to give us an incremental 800,000 to 900,000 tons. Yeah, Emily. And with the correction that we are seeing right now on the sheet side with with what you have seen in some of the pricing what led up to that is we entered 2020 with COVID and things started to contract and shut down and 2021 was the recovery so to speak from that standpoint.