Nucor Foresees Dip in Steel Segment Earnings in Q1 This Year
The reduced profitability of sheet mills will lead top decline in steel mill segment earnings in Q1 2022.
SEATTLE (Scrap Monster): Charlotte, N.C.-headquartered Nucor Corporation announced outlook for the current year. It must be noted that the company had reported record quarterly and annual earnings for the fourth quarter and year ended 2021.
Nucor expects another strong year of profitability in 2022, mainly driven by strong end use market demand for steel and steel products. The consolidated net earnings attributable to shareholders in Q1 this year will be slightly lower when matched with record results in Q4 last year. The diluted earnings per share will benefit from lower weighted average shares outstanding.
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The reduced profitability of sheet mills will lead to decline in steel mill segment earnings in Q1 2022. The steel products segment is expected to deliver further margin expansion and profitability. The earnings of the raw materials segment are likely to witness slight improvement, compared to Q4 2021. The improved profitability of DRI facilities will be partially offset by lower scrap prices.
The steel mill segment earnings in Q4 2021 were comparable to the prior quarter, despite lower volumes. The demand in non-residential construction market remained strong, which in turn led to strong earnings from steel products segment. On the contrary, raw materials segment earnings dipped during the quarter.