Nucor Corp. Q1 2023 Earnings Hit by Lower Steel Prices

SEATTLE (Scrap Monster): Charlotte, N.C.-based Nucor Corporation announced guidance for the first quarter 2023 earnings.

For the quarter ending April 1, 2023, Nucor expects net earnings to range between $3.70 and $3.80 per diluted share. This compares with net earnings of $4.89 per diluted share in the fourth quarter of 2022 and $7.67 per diluted share in the corresponding first quarter last year, said the company press release.

The company expects the profitability of steel mills segment to increase during Q1 2023, when compared with the sequential quarter, mainly on account of higher margins and volumes. The sheet mills are expected to report the highest profitability. The overall Q1 2023 steel products segment earnings are predicted to remain higher than the first quarter of 2022. Also, higher volumes at DRI facilities and scrap recycling and brokerage operations are likely to deliver increased profitability in the raw materials segment.

The combined operating income from all the three business segments are expected to exceed that of Q4 2022. However, the consolidated net earnings during the quarter are likely to decline, when compared with the sequential quarter, due to less favourable intercompany eliminations and the absence of state tax benefits.