Nucor today announced guidance for its fourth quarter ending December 31, 2022, expecting fourth quarter earnings to be in the range of $4.25 to $4.35 per diluted share.
The company reported net earnings of $6.50 per diluted share in the third quarter of 2022 and $7.97 per diluted share in the fourth quarter of 2021. Full year earnings for 2022 remains on track to exceed the record of $23.16 per diluted share Nucor set in 2021.
In a press release, the company said in the steel mills segment, it expects considerably lower earnings in the fourth quarter of 2022 as compared to the third quarter of 2022 due to lower average selling prices, margin compression and lower volumes, with the largest decrease in profitability expected at Nucor’s sheet mills. Shipments for the bar mills are expected to be lower due to seasonal factors with customers reducing inventories as year-end approaches.
The steel products segment is expected to have strong earnings in the fourth quarter of 2022, Nucor said, but the company expects the segment's earnings to decline moderately from the third quarter of 2022 on lower volumes and selling prices. While Nucor says it believes these trends are mainly seasonal effects, economic uncertainty and recession concerns could impact future demand.
The raw materials segment is expected to have significantly decreased earnings in the fourth quarter of 2022 as compared to the third quarter of 2022 due to decreased profitability of Nucor’s DRI facilities, both of which experienced planned outages during the fourth quarter, and decreased selling prices for raw materials.