Nucor Corporation today announced record quarterly consolidated net earnings of $2.13 billion for the third quarter of 2021. By comparison, Nucor reported consolidated net earnings of $1.51 billion for the second quarter of 2021 and $193.4 million for the third quarter of 2020.
Nucor's consolidated net sales increased 17 percent to $10.31 billion in the third quarter of 2021 compared with $8.79 billion in the second quarter of 2021 and increased 109 percent compared with $4.93 billion in the third quarter of 2020.
Average sales price per ton in the third quarter of 2021 increased 22 percent compared with the second quarter of 2021 and increased 86 percent compared with the third quarter of 2020. A total of 7,172,000 tons were shipped to outside customers in the third quarter of 2021, a 4 percent decrease from the second quarter of 2021 and a 13 percent increase from the third quarter of 2020.
Total steel mill shipments in the third quarter of 2021 decreased 3 percent as compared to the second quarter of 2021 and increased 16 percent as compared to the third quarter of 2020. Steel mill shipments to internal customers represented 21 percent of total steel mill shipments in the third quarter of 2021, compared with 20 percent in the second quarter of 2021 and 21 percent in the third quarter of 2020. Downstream steel product shipments to outside customers in the third quarter of 2021 was consistent with the second quarter of 2021 and increased 3 percent from the third quarter of 2020.
Overall operating rates at the company's steel mills decreased to 96 percent in the third quarter of 2021 as compared to 97 percent in the second quarter of 2021 and increased from 83 percent in the third quarter of 2020.
In a press release, the company said all three operating segments continued to generate robust profitability in the third quarter of 2021. Earnings of the steel mills segment increased significantly in the third quarter of 2021 as compared to the second quarter of 2021, mainly driven by higher realized selling prices. The steel products segment generated significantly increased earnings in the third quarter of 2021 due to margin expansion caused by higher average selling prices. The raw materials segment's earnings in the third quarter of 2021 were comparable to the second quarter of 2021.
As for an outlook, the company said it expects continued strong results for the fourth quarter of 2021, potentially exceeding the net earnings record set in the third quarter of 2021. The company said demand remains robust across most end-use markets, a trend Nucor expects will continue well into 2022. Backlogs in Nucor’s steel mills and steel products segments remain elevated compared to historical levels, the company said.
Nucor added that it expects the profitability of the steel mills segment to improve in the fourth quarter of 2021 as compared to the third quarter of 2021, driven by additional earnings growth at the sheet and plate mills. Nucor expects the profitability of the steel products segment to increase in the fourth quarter of 2021 compared to the third quarter of 2021. However, the raw materials segment's earnings in the fourth quarter of 2021 are expected to decrease compared to the third quarter of 2021 due primarily to margin compression at Nucor’s direct reduced iron facilities.