Nucor Corporation today announced quarterly consolidated net earnings of $1.69 billion, or $6.50 per diluted share, for the third quarter of 2022. By comparison, Nucor reported consolidated net earnings of $2.56 billion, or $9.67 per diluted share, for the second quarter of 2022 and $2.13 billion, or $7.28 per diluted share, for the third quarter of 2021.
Nucor's consolidated net sales decreased 11 percent to $10.50 billion in the third quarter of 2022 compared with $11.79 billion in the second quarter of 2022 and increased 2 percent compared with $10.31 billion in the third quarter of 2021.
Average sales price per ton in the third quarter of 2022 decreased 3 percent compared with the second quarter of 2022 and increased 14 percent compared with the third quarter of 2021. A total of 6,415,000 tons were shipped to outside customers in the third quarter of 2022, an 8 percent decrease from the second quarter of 2022 and an 11 percent decrease from the third quarter of 2021.
Total steel mill shipments in the third quarter of 2022 decreased 9 percent as compared to the second quarter of 2022 and decreased 10 percent as compared to the third quarter of 2021. Steel mill shipments to internal customers represented 22 percent of total steel mill shipments in the third quarter of 2022, compared with 22 percent in the second quarter of 2022 and 21 percent in the third quarter of 2021. Downstream steel product shipments to outside customers in the third quarter of 2022 decreased 2 percent from the second quarter of 2022 and decreased 1 percent compared to the third quarter of 2021.
In a press release, Nucor said the primary driver for the decrease in earnings in the third quarter of 2022 as compared to the second quarter of 2022 was the decreased earnings of the steel mills segment. The decrease in the steel mills segment earnings was caused primarily by metal margin contraction and reduced shipping volumes, Nucor said, particularly at its sheet and plate mills. The steel products segment had another strong quarter in the third quarter of 2022, and its earnings increased modestly from the second quarter of 2022, the company said. Raw materials segment earnings increased in the third quarter of 2022 as compared to the second quarter of 2022 as decreased profitability in Nucor’s scrap brokerage and processing operations was offset by the increased profitability of the company’s direct reduced iron facilities.
As for an outlook, Nucor said, “We expect fourth quarter of 2022 earnings to be decreased from the third quarter of 2022. In the steel mills segment, we expect considerably lower earnings in the fourth quarter of 2022 as compared to the third quarter of 2022 due to lower average selling prices and lower volumes, with the largest decrease in profitability expected at our sheet mills. The steel products segment is expected to have another strong quarter in the fourth quarter of 2022, but the segment's profitability is anticipated to decrease from the third quarter of 2022 primarily due to typical seasonality experienced in the fourth quarter. 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 selling prices for raw materials.”