Nucor doubles net income in Q4, reports strong but lower earnings for full-year 2020

Thursday, 28 January 2021 20:27:10 (GMT+3)   |   San Diego
       

Nucor Corporation today announced consolidated net earnings of $398.8 million for the fourth quarter of 2020. By comparison, Nucor reported consolidated net earnings of $193.4 million for the third quarter of 2020 and $107.8 million for the fourth quarter of 2019.

Nucor's consolidated net sales increased 7 percent to $5.26 billion in the fourth quarter of 2020 compared with $4.93 billion in the third quarter of 2020 and increased 3 percent compared with $5.13 billion in the fourth quarter of 2019. A total of 6,486,000 tons was shipped to outside customers in the fourth quarter of 2020, a 2 percent increase from the third quarter of 2020 and flat compared to the fourth quarter of 2019. Total steel mill shipments in the fourth quarter of 2020 increased 3 percent as compared to the third quarter of 2020 and were similar to shipments in the fourth quarter of 2019.

For the full year 2020, Nucor reported consolidated net earnings of $721.5 million, compared with consolidated net earnings of $1.27 billion in 2019. For 2020, Nucor's consolidated net sales of $20.14 billion decreased 11 percent compared with consolidated net sales of $22.59 billion reported in 2019. Total tons shipped to outside customers in 2020 were 25,519,000, a decrease of 4 percent from 2019, while the average sales price per ton in 2020 decreased 7 percent from 2019.

As for a Q1 2021 outlook, the company said in a press release that it is “encouraged by several positive factors impacting our markets,” and it expects earnings in the first quarter of 2021 to “significantly” increase from the fourth quarter of 2020.  

The company said nonresidential construction and automotive markets are strong, with generally improving conditions in heavy equipment, agriculture, renewable energy and on-highway truck and trailer. The expected performance of the steel mills segment in the first quarter of 2021 is the primary driver for this increase as the company’s sheet, plate, bar and structural mills are forecasting increased profitability in the first quarter of 2021 as compared to the fourth quarter of 2020.

However, Nucor expects the profitability of its downstream steel products segment to decrease in the first quarter of 2021 compared to the fourth quarter of 2020 due to typical seasonal patterns and some margin compression related to the delay between rising steel input costs and increases in selling prices. The raw materials segment's performance in the first quarter of 2021 is expected to be significantly improved compared to the fourth quarter of 2020 due to higher raw materials selling prices.


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