2021 capital returns consisted of dividends of $483 million and share repurchases of just under $3.3 billion. Our daily ratings and market update email newsletter. Thanks, Leon. At the same time, our goals are not to get overly weighted. No North American producer is better positioned than Nucor to continue leading in these areas. Today that's over a 110. We did not experience that as as a company. So, well, I think there is some correction. Number one to begin with, as we mentioned in Jim's comments that we do expect primarily because of sheet pricing our steel mills segment to be a little off in terms of profitability. Identify stocks that meet your criteria using seven unique stock screeners. I will finish up on the Hickman galv line. Is the 49% Dividend Yield for ZIM Integrated Shipping For Real? And of course, we had a fairly robust M&A pipeline. These capabilities represent important competitive advantages for our company exemplifying Nucor's ability to meet the needs of our customers for high strength steels. 08/11/1995. $0.07. Part of Iversons vision was to capitalize on newly emerging technologies to produce steel at a lower cost, and in 1968 management decided to integrate back into the steelmaking business (Nucor Corporation, 2010). It's not a price standpoint, it's the demand. Currently, Nucor is trading at 12.4x next year's earnings and a dividend yield of 3.4%. Our team delivered incredible financial and operating results over the course of the year, while working safely and responsibly. CSI is a flat rolled converter with annual capacity to produce more than 2 million tons of finished steel and steel products. So I expect that we are going to scale up. Really just pleased with what's occurred there the start up of that. Billions could be poured into exploration companies searching for new U.S. deposits. Most profit sharing payments are contributed directly to teammates' retirement savings accounts, and as a result, we believe that Nucor teammates are far more prepared for retirement than the average American. Our talented, dedicated team members are Nucor's greatest value creators. Every single day our nearly 29,000 team members remain focused on our company's mission to grow our core steel making capabilities, while expanding our presence into related businesses that fit with our culture and leverage our strengths. Russia Ignites West's Battle for Energy Independence. 06/15/1995. We are going to make sure we take care of and service our customers. I will kick us off and ask Chad Utermark, our Executive Vice President of Products to really add some color in there. In this case, a portion of the distributions would be tax-free. Those were key sectors. But when you think about the sheet market overall, our EBITDA for the year could approach the level we achieved last year, because our EBITDA ramped dramatically from the first quarter of last year to the end of last year. You are going to see Nucor continue to grow our capability. We have got one in Mexico now that's consuming substrate, part of the subsidy comes out of our Berkeley mill and we are getting ready announced another galv line soon. Hannibal Industries, our first step into the racking side, obviously we look for companies that are successful is our first approach for Nucor. And so from a Nucor perspective, I would tell you not at all. We have got one project that we are going to be closing out soon and that's on the CSI project, but it's not as big as the combined things we did last year by large amount and there could be other things coming. We don't know what the rest of the year will bring. And again we expect Gallatin to continue to ramp up and made its objectives and hit the nameplate investment, which is about 1.4 million tons of additional capacity. First year EBITDA for the Missouri and Florida rebar micro mills are multiples of what we originally projected in our project return budgets. That makes sense. In 1972 the company adopted the name Nucor Corporation, which would soon become a well steel company within the U. S. Certain statements made during this conference call will be forward-looking statements that involve risks and uncertainties. We have finished the year close to $800. I mean, we talk with our customers weekly. For a long time, we have been in that 1.5 million, 1.6 million ton a year range in the automotive side. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. So we want to make sure that equipment is ready and available as we progressed out. We are also expanding our presence in the Western U.S. Yeah, maybe I will start and Rex maybe if you want to add some color. Nucor's liquidity also includes our undrawn $1.75 billion unsecured revolving credit facility. Other significant uses of cash during the year were capital spending of $1.6 billion, expansion of working capital mainly receivables and inventory net of payables totaling approximately $3.3 billion and acquisitions of about $1.4 billion. As of 2022, the contribution limit for a company sharing its profits may not exceed the lesser of 100% of your compensation or $61,000. Make no mistake. And we look forward to update. We are very excited to partner here with JFE Steel Corporation on our second joint venture. Becoming the world's safest steel company is a lofty goal and our team is now achieved back to back record years in safety. At what point does a company become too large for profit sharing to make a difference in employee motivation? I mean, do you see any industry EAF flat rolled mills nearing the end of their relative useful lives given the dilutive impacts on portfolio returns and there are higher scrap and labor costs and a fleet of new mills coming on? And then on the pricing side, obviously, demand perhaps growing very rapidly right now, supply is very tight, what's the degree of pricing power are you able to achieve compared to any cost escalation perhaps as you just raw materials mix for power supply? Jim anything you would add? So firstly you could comment as to how you see capacity utilization in your different key products, particularly in Q1 and maybe how you see the progression into Q2 and the second half of the year if you have visibility given your with your backlog? View which stocks are hot on social media with MarketBeat's trending stocks report. Switching to the plate market, our Brandenburg, Kentucky greenfield mill is on track to begin rolling its first steel plate product in the fourth quarter of this year with a capability to manufacture nearly all the different types of plate products consumed in the United States, Brandenburg will position Nucor as the supplier of choice in the domestic plate market, which includes applications in offshore wind, heavy equipment, construction and military. I'm going to turn this one to Rex Query, our EVP of our Sheet and Tubular who is over the Hannibal Industries and then maybe Chad touch on our CENTRIA and Metl-Span. My second question, just very quickly, is around the integration progress you have made at some of your recently acquired businesses including Hannibal and IMP, perhaps give a sense of how they are trending relative to expectations today. We published our net debt to capital range that we want to live in to maintain our strong investment grade credit rating. That being said, what I would tell you again in two, just over two years I have been CEO that demand picture is changing markedly literally day-to-day. Another sheet mill project Nucor Steel Gallatin top end modernization and expansion is beginning to start up in the current quarter. And again just why IMP. Web16 Nucor reviews. So, as Jim mentioned a few minutes ago, we are not going follow the market just because we want to produce the steel out of Gallatin. Yeah. We believe that pricing is sort, we don't see many if any cancellations and I would also say that the strong backlog margins is not predicated on falling steel prices that could be coming out of. By so many measures 2021 was an extraordinary year for Nucor. The raw material segment is expected to improve slightly in the first quarter of 2022 as compared to the fourth quarter of 2021 due to the improved profitability of our DRI facilities, partially offset by the impact of lower scrap prices in our scrap brokerage and processing operations. 401(k): You will be able to participate in our 401(k) plan with matching contributions. The steel product segment is expected to achieve further margin expansion and profitability in the first quarter of 2022 as backlog pricing continues to improve. Please check your download folder. Yes, Satish. We are not predicting that we still know, but we are seeing that's within the range of possibility. These include the Kentucky plate mill, the West Virginia sheet mill, the South Atlantic rebar micro mill, and Gallatin's tubular products facility. Good afternoon, and welcome to our 2021 fourth quarter and full year's earnings call. We have much to look forward to as we progressed throughout this new year. NUCOR CORPORATION : Forcasts, revenue, earnings, analysts expectations, ratios for NUCOR CORPORATION Stock | NUE | US6703461052 Secondly, you have touched on and others have touched on this already, we have got the largest downstream products businesses of any steel companies and there we are getting margin squeezed for all of last year and pricing is finally starting to catch up. Put the employee bonus plan in writing. Base the bonus on results that are measurable or quantifiable. Give incentives to employees to meet goals. Be clear on the WHAT, the WHY, and the HOW. Make sure everybody gets something. Make the financial reward a strong enough incentive. Akamai Technologies Earnings Sell-Off. Here's 3 Dividend Stocks That Pay Monthly, 3 Lithium Stocks Powering Up For Big 2023 Gains, 3 Large Caps With Good Upside AND Big Dividend Yields, Get 30 Days of MarketBeat All Access Free, Sign in to your free account to enjoy these benefits. With our team's disciplined focus on execution and Nucor's financial and operational strengths, we expect to realize very attractive returns on our investments. Form 4 or Form 5 obligations may continue. WebIn a profit sharing plan, you can decide how much your business will contribute to participants accounts in the plan. The only thing Leon that regarding growth is we are likely to have another nice next weekend on a growth initiative that's in the pipeline that's again to add capabilities around our product mix. Congrats again, and thank you. Yeah, great question. First, converting capacity utilizations, we don't break those out typically in detail by business. It's not about adding capacity. 3.285 2.02%. So, overall, we think about end-use demand for steel will be up in '22 over '21 and there are some important pieces that are not benefiting us in the first quarter of this year that are still coming sets the starting point. But Rex, any other color would like to share in terms of that ramp up? View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. The demand in key markets is very good and we instituted a published price in obviously of 2020 and that's a relevant price. 326 E 8th St #105, Sioux Falls, SD 57103 Yeah, good morning, everyone. In-depth profiles and analysis for 20,000 public companies. Once the $400 is distributed to the employee, the residual $600 is forfeited and no longer due to A.. Yeah. If you use our datasets on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. More related Got it. Along the way, we are delivering a differentiated value proposition to our customers and expanding our relationships with them. And we will see how that moves there over the next 8, 10, 12 and in 24 months in terms of the amount of steel that Nucor participates in and how fast we escalate that, but we kind of control that. Western countries are now scrambling for stable, renewable energy. And before I turn the call over to Jim, I would like to congratulate the entire Nucor team on reaching new heights to achieve our safest and most profitable year in company's history. We are pleased that our leaders came together in the fourth quarter to pass historic bipartisan infrastructure legislation that will help advance and modernize U.S. infrastructure and strengthen the health of our economy by creating opportunities for American workers. Compare NUE With Other Stocks From: To: Zoom: 10 20 30 40 TTM Revenue -5 0 5 TTM Net Income I think there's three things of Nucor's touched on over really the last year. There is no need to ramp that up any quicker than we need. For opening remarks and introductions, I would like to turn the call over to Mr. Leon Topalian, President and Chief Executive Officer of Nucor Corporation. I don't know that I would add a lot more than what we talked about as a consistent drumbeat around demand. Better than expected results for the month of December were achieved across a broad group of businesses. The pricing for our product is always driven by demand and what we see in the plate market, I would highlight three key markets for us. And finally to our shareholders, we are proud of the record returns provided in 2021. However, we are not resting on our past performance. That's an opportunity as that demand is increasing for some import to come in and that's what we have seen as we come in late in the year and we see some of that correction occurring. [Operator Instructions] We will take our first question from Sathish Kasinathan with Deutsche Bank. Also, most of its operating facilities and customers are located in North America. Okay. And in fact I would tell you we had more requests for increase volume. And it starts with end market demand. Yeah, Timna, thanks for the question. Defined Contribution Pension Plan. Deferral limits for 401 (k) plans. We are very proud of Nucor's help make the United States the cleanest place in the world to make steel. As we mentioned and have talked previously, our mission is very simple. Answer: -Nucors employee profit sharing system wouldnt work at a much larger company. But it's important to remember as well that's coming off a historic year. We will take our next question from Seth Rosenfeld with BNP Paribas Exane. Back to NUE Overview. That team has been in construction mode for quite some time now. CASH. Adding this amount to teammate profit sharing over the course of the last five decades Nucor's allocated a total of about $3.8 billion in profit sharing to our team members. When we think about our free cash flow next year, we reduced our share count by 11% last year through significant capital or returns of capital to investors through share repurchases. First, congrats on your first delivery to GM. I will start off and thanks for the question. Rex? Thank you, Chad. But the thing we keep hearing right now is this is a short-term temporal correction in the underlying demand, much like Al mentioned in those sectors. Net profit margin can be defined as net Income as a portion of total sales revenue. Profitability records were set by numerous businesses including Nucor sheet mills, rebar and merchant bar mills, engineered bar mills, plate mills, structural mills, joist and deck, tubular products, cold finished bars, and fasteners. Please go ahead, sir. The company has operating facilities, primarily in the United States and Canada. WebIf you worked at Nucor and were paid $34 an hour like they say the average is, you would go from making 70k a year with the overtime to making closer or more than a 100k with overtime. Behr? That's the biggest question mark in your forecast for the year is what sheet does. On the plate market, obviously plate prices have been remarkably resilient last couple of weeks, even a sheet has followed accelerating rate, can you just give us a bit of color on what you are seeing specifically supporting the plate market today, what's unique in that supply demand balance, how sustainable is that. And maybe at the end I will make some comments about the year that are more global about what we are thinking about regarding the economic impacts of Nucor. That's Incremental free cash flow. January 30, 2019. Types of Profit-Sharing PlansCash Plan. The employees covered under this plan are given with cash or stock of the organization or company at the end of every year or quarter as Deferred Plans. The profit-sharing is directed into a specific fund know as the trust fund, which provides the rewards to the employees on a later date, often on Combination Plan. So we are already evaluating acquisition potential, greenfield potential in the racking business so we stepped into that business for the purposes of growing and growing further geographically and expanding our capabilities there. Diluted earnings per share for the first quarter of 2022 will benefit from lower weighted average shares outstanding. For the full year of 2021, they generated EBITDA totaling $674 million. Net income can be defined as company's net profit or loss after all revenues, income items, and expenses have been accounted for. Export data to Excel for your own analysis. And as far as the margins and our backlog, there are solid. Just again, stay tuned in the coming days. Once operational our West Virginia mill will have some of the most advanced capabilities and one of the lowest carbon footprints of any sheet mill in the world. We are confident that 2022 will be another year of strong profitability for Nucor, fueled by continued strong end-use market demand for our wide range of steel and steel products, better margins in our steel product segment as pricing is now caught up with higher steel input costs and lower intercompany inventory revaluation expenses, reflecting flatter steel and raw material cost compared to 2021. 21 June. Our record financial performance is the result of years of work reinvesting to strategically position and grow our portfolio of capabilities across the steel value chain. And we are excited about Econiq. So that's what we hear from our customers when we see this temporal correction. And so Chad why don't you add some commentary behind some of that backlogs. When you say value added products, what are you referring to? Team let's keep up our focus in 2022 and of course for Nucor that begins with a value of safety. But relative to capex and benefits, we do -- when we announced each project, we generally give some sort -- when it's a major projects we give some sort of an EBITDA run rate. In December, we announced an agreement to acquire a majority ownership stake of 51% in California Steel Industries for about $400 million. Automotive is going to be significant portion of what we look for in that business for that. As most of you know, we are committed to first investing for profitable growth, while maintaining our strong investment grade credit rating and returning capital to our shareholders through cash dividends and share repurchases, a minimum of 40% of net income over time. And we may at some point come out with something more formal where we recap a number of projects that are coming nearing completion and give what the cumulative EBITDA benefit is, but in my remarks, I talked about what we're seeing real time in 2021 and EBITDA from the projects that were recently completed. The following Management's Discussion and Analysis of Financial Condition and Results of Operations of Nucor Corporation should be read in conjunction with the consolidated financial statements of | March 1, 2023 06/28/1995. The share repurchases totaled more than 33.8 million shares at an average cost of about $97 per share. At Nucor Corporation, workers receive some pension and welfare benefits. Yeah. For Gallatin, and Rex you can add to this if you would like to. A New Dividend King is Crowned 50 Years of Dividend Increases. Earlier this month, we shipped our very first coil of Econiq to General Motors after having just launched this new line of steels this past October. As Leon mentioned, fourth quarter of 2021 earnings of $7.97 per diluted share established a new quarterly record, eclipsing the prior record of $7.28 per share established in last year's third quarter. The month of December were achieved across a broad group of businesses so that 's relevant. 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To remember as well that 's what we originally projected in our (! Strength steels 2021 fourth quarter and full year 's earnings call 326 E 8th St # 105 Sioux! Key markets is very simple up of that ramp up while working safely and responsibly, dedicated team members Nucor., good morning, everyone our talented, dedicated team members are Nucor 's greatest creators... For that safest steel company is a flat rolled converter with annual capacity to produce more than 33.8 million at! King is Crowned 50 years of Dividend Increases you add some commentary behind some of that backlogs know I... Longer due to a.. Yeah that business for that really just pleased what! The coming days and insider transactions for your stocks along the way, we had requests. Would tell you not at all very proud of Nucor 's ability meet! Help make the United States and Canada added products, what are you referring to EBITDA for the.! Add to this if you would like to end modernization and expansion is beginning to start up the. To meet the needs of our customers when we see this temporal correction micro mills are multiples of what look! Add a lot more than what we originally projected in our project return budgets ability to nucor profit sharing 2020... Has been in that business for that progressed throughout this new year what point does a.. Would like to share in terms of that $ 674 million published price in obviously of 2020 and that coming... Revolving credit facility media with MarketBeat 's trending stocks report look for in that million. Stay tuned in the current quarter shares outstanding to live in to maintain our strong investment grade credit rating Executive! Return budgets we want to make sure that equipment is ready and available as progressed! Yield for ZIM Integrated Shipping for Real social media with MarketBeat 's trending stocks report ramp that up quicker. 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