Nucor: outlook for the steel market
Nucor expects steel mill segment profitability to increase in the first quarter of 2023 compared to the fourth quarter of 2022, due to higher margins and volumes.
The company also expects the biggest improvement to come from its sheet mills.
For its steel products segment, Nucor projects to maintain solid profitability in the first quarter of 2023, with some decline from the fourth quarter of 2022, due to the seasonal slowdown in construction activity and some reductions in realized prices.
Financial results of Nucor
Overall, the company expects steel products segment earnings in the first quarter of 2023 to be higher than in the first quarter of 2022.
Regarding its raw materials segment, excluding the impact of the impairment charge recorded in the fourth quarter of 2022, the company estimates to achieve increased profitability compared to the fourth quarter of 2022, due to higher volumes at its DRI facilities and scrap recycling and brokering operations.
On a combined basis, the company estimates operating income during the first quarter of 2023 from its three business segments to exceed that of the fourth quarter of 2022.
However, Nucor projects consolidated net income to decline compared to the fourth quarter of 2022 due to intercompany eliminations in the first quarter of 2023 and the absence of state tax benefits that were recorded in the fourth quarter of 2022.
Nucor and its subsidiaries are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico.
Its products include: carbon and alloy steel in bar, beam, plate and sheet; hollow structural tubing; electrical conduit; steel shelving; steel piling; steel beams and joists; steel decking; fabricated concrete reinforcing steel; and cold finished steel.
The company also produces precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; and wire and wire mesh.
Through The David J. Joseph Company and its subsidiaries, Nucor also markets ferrous and nonferrous metals, pig iron and hot briquetted iron/reduced iron directly; supplies ferroalloys; and processes ferrous and nonferrous scrap.
Nucor is the largest recycler in North America.