So sheet could still average at or above what they did last year based on what we are seeing today. 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. Thank you. I will leave it at that. By so many measures 2021 was an extraordinary year for Nucor. If you think about just five years, six years ago, we had about 55 cases that were one in carbon steel. I mean, we talk with our customers weekly. We don't know what the rest of the year will bring. 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. At the same time, our goals are not to get overly weighted. Behr? Last year's number was about $865 million, this year is going to be just north of a $1 billion. More information about the risks and uncertainties relating to these forward-looking statements may be found in Nucor's latest 10-K and subsequently filed 10-Qs, which are available on the SEC's and Nucor's website. Billions could be poured into exploration companies searching for new U.S. deposits. For Gallatin, and Rex you can add to this if you would like to. We have the opportunity to continue to enhance that and do what's required to meet that demand picture. That's the biggest question mark in your forecast for the year is what sheet does. We have noted in my comments that we are going to be doing some strong share repurchases in the first quarter. Another key market would be heavy equipment, industrial equipment that market is very strong right now. 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. (RTTNews) - Nucor Corp. (NUE) reported earnings for its fourth quarter that increased from last year and beat the Street estimates. This represents another new quarterly record for our company. So that's a step for sure into that and the new Midwest mill as Leon mentioned. When we judge that strong free cash flow is causing us to become over capitalized, we will typically distribute more than 40% of our net income to shareholders. So you saw demand increase, considerably pricing run off. As we mentioned and have talked previously, our mission is very simple. Good afternoon, Leon and Jim. Thanks for taking the question. 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? My first question is just around the capital allocation and I think last year churn that you have been able to execute both growth and a significant amount of capital returns. For the full year of 2021, they generated EBITDA totaling $674 million. The automotive sector that Jim Frias mentioned as well. And if you combine that with our backlogs that are very robust and in some cases they are all time record backlogs, so that's one dataset that we look at. That makes sense. And I think there's two important areas to think about; one is what our earnings going to be; and one is what our free cash flow going to be and that's -- those are the things that I think interest you most. To get just some additional detail on Gallatin, as far as the outage we had we are on target coming up, the expectation as Jim mentioned, approximately 800,000 tons additional for the year. 06/15/1995. And as Jim will share, we remain very well capitalized enable to pursue our objectives. And also can you talk about the ramp up profile at Gallatin and the total incremental volumes you expect from the mill for the current quarter as well as the full year. We are starting out with a carbon intensity that is 3x or 4x lower than some of our integrated competitors. They are tasked with growing that business. Well, working capital used $3.3 billion of cash last year, I said in the script. We look forward to continuing to offer Econiq to more customers, and of course, lower greenhouse gas emission steel across our product portfolio. These are healthy margins due to the supply and the strong demand balance that's out there. Now that lead times are a lot shorter. Zoetis, Pet-Med Specialist, Double-Digit Earnings Growth Ahead, 3 Mid-Cap Earnings Plays to Watch This Week. And with the correction that we are seeing right now on the sheet side with with what you have seen in some of the pricing what led up to that is we entered 2020 with COVID and things started to contract and shut down and 2021 was the recovery so to speak from that standpoint. Again this -- again more recent transformation over the last two, three, four years and moving into a much more sustainable place, Nucor is, again, I think been ahead of the curve. That's 18% to 22%. The valuation is attractive and the dividend yield is interesting. We are very, very excited. Net income for 2021 was $6.8 billion and full year earnings per share was $23.16, which were both notable increases over the prior records we'd set in 2018 with $2.4 billion of net income and an EPS of $7.42. And so what we would be looking for, we are going to look at for that demand. At year-end gross debt as a percentage of total capital was approximately 28%, while net debt was about 14% of total capital. Yeah, Timna, thanks for the question. The limit is $305,000 for the 2022 tax year, up from $290,000 in 2021. Longs, plate, beams -- bars, they really should do a little better in 2022 overall than they did '21, because again we started out with a weak first quarter for lot of these businesses. We started went up at Gallatin the year before that. Our Econiq offering represents the world's first ever net zero carbon steel available at scale. Those were key sectors. So we begin from a platform of great strength and again a commitment to be even stronger and even cleaner. By creating a free account, you agree to our, Home Depot Stock Earnings Slide, Long Term Value Still There, AbbVie Stock Still a Solid Buy Despite Challenges, 7 Cash Rich Stocks That Offer Safety in Any Market, The Best Strategy For Your Small Trading Account, 7 Battery Stocks That Will Make You a Millionaire by 2030. They are the rolling mill modernization at our Ohio rebar mill, the hot band galvanizing line at our Kentucky sheet mill, the specialty cold rolling mill at our Arkansas sheet mill, the rebar micro mill in Missouri, and the rebar micro mill in Florida. Fourth quarter earnings also exceeded our guidance range of $7.65 to $7.75 per diluted share. WebProfit Sharing. There is a very disciplined process. Our analysis suggests that Nucor shares are significantly undervalued relative to our risk profile, earnings and cash flow generation capacity. WebNucor Corp. NUE (U.S.: NYSE) View All companies. How should we think about that balance going forward in 2022 and perhaps what does the next chapter of your growth strategy look like? So it's not just the major OEMs in automotive now that are asking for. I will kick us off and ask Chad Utermark, our Executive Vice President of Products to really add some color in there. And so as we move forward the short-term inflection that we are seeing both in pricing as well as some of the volumes that we think are a short-term factors are based on imports and obviously what we saw in the third quarter in terms of buying patterns are the spread between HRC domestically and internationally was at a all-time high. CASH. View Is the 49% Dividend Yield for ZIM Integrated Shipping For Real? The The statutory federal tax rate for corporate profits is 21 percent. What benefits are offered to employees? We have capacity to do more. Answer: -Nucors employee profit sharing system wouldnt work at a much larger company. If there is any indication of weakness, it's around supply chain and that true consumption in demand at the OEMs. And so I am not going to detail out what the value is. Earnings per share were $7.97, exceeding our guidance range of $7.65 to $7.75. Real-time analyst ratings, insider transactions, earnings data, and more. This could be another year of strong free cash flow where we return to a sizable amount of cash to our investors. The benefits are terrible, that's why it always amazes me when people say great benefits. Please go ahead, sir. An Overview of Blue Chips. WebNucor The manufacturer of steel and steel products is headquartered in Charlotte, N.C. Distributions from a profit-sharing plan are taxable income and must be reported on an individual's tax return. Established in 1985, the plan covers all the employees of Nucor, a US steel producer. I hope you will agree that this is an impressive track record. Got it. Nucor's liquidity also includes our undrawn $1.75 billion unsecured revolving credit facility. Do you want to talk about that at all? One is non-residential construction. 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 Yeah. (844) 978-6257. We think about what's happening, and warehousing, data storage cold storage. The tax-avoiding companies represent various industries and collectively enjoyed almost $40.5 billion in U.S. pretax income in 2020, according to their annual financial reports. Western countries are now scrambling for stable, renewable energy. Again, the next is going to be incremental benefits from the ramp of three major projects, the Hickman galvanized line, the Gallatin hot mill to the extent that there is enough sheet demand to ship some portion of that another 8,000 tons of extra capacity we will have for the year, and then finally the Kankakee, our merchant bar mill, we have been running parts of its capability, but not it's full range yet and so there's still some incremental capacity in Kankakee that we are not benefiting from that we will benefit from next year, so another positive for the years outlook. Can you talk a little bit about how good your visibility is for sheet in particular and what you are looking for in order to ramp up Gallatin like what conditions, is it demand is it price or both? There is no need to ramp that up any quicker than we need. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. We have talked about that quite a bit. So we recognize that that's a part of our portfolio that would perform better and we are quite so weighed to hot band. Diluted earnings per share for the first quarter of 2022 will benefit from lower weighted average shares outstanding. While our 2021 performance unquestionably benefited from an exceptionally strong steel industry up cycle, Nucor's results were also fueled by our team's focus and commitment to safely meeting our customers' needs. Very, very good color. But if I think back to, even in the height of the pandemic in 2020 that business segment remain incredibly robust that is continued and we see that continuing moving forward. 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. Disciplined execution of our growth strategy over the years is a significant factor underlying our success. The location along the Ohio River provides Nucor with important transportation and logistics advantages in serving the country's two largest sheet steel consuming regions in, the Midwest and Northeast, two areas where Nucor is currently under-represented. 401(k): You will be able to participate in our 401(k) plan with matching contributions. That's very helpful. 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? You can only withdraw profit-sharing money under certain circumstances. You will receive a distribution if your employer ends the plan without creating a replacement. You can take your money once you reach age 59 1/2 or if you suffer a qualified financial hardship. We should see some strong tailwind from lower input cost, so just any color you can provide. Some of our oldest mills are the highest generating returns that we have in our entire portfolio and it's because we do a great job of reinvesting our teams, do an amazing job of keeping the maintenance and up keep and staying on the latest trends for the improvements in technology to implement to ensure not only the safest delivery of that steel, but also the lowest cost output to those steel products for our customers. Looking at 2021 as a whole we said several other financial records. STOCK TRANSFERS, DIVIDEND DISBURSING & DIVIDEND REINVESTMENT. Once the $400 is distributed to the employee, the residual $600 is forfeited and no longer due to A.. Our expectation and our stated goals are to double that to around 3 million tons. $0.07. It's going to have a capacity over the year to give us an incremental 800,000 to 900,000 tons. They have couple of operations California, Houston, the leadership we have had there really just spectacular, fit in well with our company. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. So in March we will commission the EAF, LMF and the caster and by the end of March we will be capable of full production at that point with a wider strip and a thicker slab, but we are going to keep an eye on the market and will really measure that ramp up as we see what market conditions are doing at Gallatin. 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. Nucor will continue to be a key part of our modern economy by supplying the most advance and sustainable steel products needed to rebuild Americas infrastructure. As we have mentioned throughout the call, we used to track and ensure, I think, the numbers of end markets and we track virtually every end market that you can imagine, of all of the end markets we look at virtually every one of them is projected to grow. Reflecting this for 2021, our profit sharing total about $850 million. Thank you for the color. Volume 693,839. Jim anything you would add? Competitive base pay and Nucor Profit Sharing Plan, with opportunities for merit increases based on performance A chance to grow your career with a stable company owned by Nucor, North Americas largest steel producer A full benefits package, including Medical/Dental/Vision insurances; Short-Term and Long-Term Disability; Life Insurance And so I can tell you, there is a lot of excitement about Nucor's capabilities being the first EAF to be able to produce a full generation 3 steel in Hickman as well as what the opportunity and capability of the West Virginia sheet mill will be able to do in terms of transforming a differentiated clean steel, net zero steel into the OEMs and so we are committed to move there. Adding this amount to teammate profit sharing over the course of the last five decades Nucor's Our talented, dedicated team members are Nucor's greatest value creators. The second and very important data set we look at is our customers per say. On July 23, Nucor announced a profit of $109 million, or 36 cents per share, for its second quarter ending July 4, according to a company statement. WebDistributions. And -- but we do use an intrinsic value model that we show the Board every quarter. 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. And finally to our shareholders, we are proud of the record returns provided in 2021. It also produces direct reduced iron ('DRI') that is used in its steel mills. Raw materials will be down year-over-year and that's because in 2021 when raw material prices were rising, we had inventory in the supply chain when we captured value hence we made money in DRI, because of low iron ore prices that we had on the ground and in our contracts, we made money in scrap, because we had scrap in our scrap yards that was being priced higher every month and every quarter prices were rising. So we have announced a 35% reduction target by 2030 that will bring us to about a 0.37, 0.38 tons of CO2 per ton of steel produced, which again in the world numbers is incredibly low. 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. The limit on employee elective deferrals (for traditional and safe harbor plans) is: $22,500 in 2023 ($20,500 in 2022, $19,500 in 2021 and 2020; and $19,000 in 2019), subject to cost-of-living adjustments. WebNucor offers their employees a Profit Sharing Plan. If we think about the core of our steel making capabilities is the expansions up regional and capabilities. Yeah, hi, good afternoon. Thank you. Yeah, thanks. And then my second question is on the steel products segment. 326 E 8th St #105, Sioux Falls, SD 57103 And again just why IMP. Mike, I would tell you, I think the overall trend is you are going to see that gap shrink. I will start Carlos. CSI is a flat rolled converter with annual capacity to produce more than 2 million tons of finished steel and steel products. 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. And congratulations on the strong update today. 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. I know that there was a lot of chatter about moving to shrink the discounts against CRU. Nucor Corp.s record 2022 earnings means the Charlotte-based steel company will hit another milestone almost $1 billion in profit sharing for the nearly 31,000 people who work for the company. We have got two virtual power purchase agreements today that because of our balance sheet allow us to be able to do those things. And we look forward to update. 1 Day Range 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. March 1, 2023 Along the way, we are delivering a differentiated value proposition to our customers and expanding our relationships with them. So, it enables Nucor to offer what we did to General Motors a few weeks ago in the first coil of net zero steel to their to their factory. 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. There are still businesses that have more room to go in terms of expanding their margins and getting prices cut because of the size of what their backlogs are good. Of course, we are also mindful of our responsibility to shareholders. Oil and gas has been a bit weaker in the last couple of years and that with oil prices today is growing by the day. The share repurchases totaled more than 33.8 million shares at an average cost of about $97 per share. We made somewhere in the $285 per ton of EBITDA in sheet in the first quarter. Yeah, great question. Backlinks from other websites are the lifeblood of our site and a primary source of new traffic. The final market I would highlight would be energy, broadly energy, which includes renewables as well as oil and gas. In fact, it was the other way around. The Nucor team is focused on maximizing our profitability and continuing to be great stewards of the valuable shareholder capital you entrust us with. The second piece of that is the expanding beyond the traditional balance of our steel making range and those projects like Hannibal Industries in racking like CENTRIA and Metl-Span to give us a market leadership position today in the insulated metal panels that is all about the digital economy as. The company has operating facilities, primarily in the United States and Canada. So, the acquisition of CSI for us and having JFE as a second partnership in California and again majority shareholder in that operation, it's really exciting for us. Congrats again, and thank you. So we are able to ramp that up as we see fit. And we are going to detail out what the value is started went up at Gallatin the year that! 7.75 per diluted share than 2 million tons of finished steel and steel products available at scale,.... Insider transactions, earnings and cash flow where we return to a sizable amount of cash nucor profit sharing 2020,... Year is going to look at is our customers weekly in its mills. Next chapter of your growth strategy over the year is what sheet does extraordinary year for Nucor would would. Commitment to be even stronger and even cleaner our relationships with them consumption in demand at same! Headquartered in Charlotte, N.C a significant factor underlying our success 's tax return against.... Is an impressive track record second question is on the what, the plan covers the. Saw demand increase, considerably pricing run off websites are the lifeblood our! That because of our portfolio that would perform better and we are proud of the year is going detail! An incremental 800,000 to 900,000 tons return to a sizable amount of to! Expansions up regional and capabilities poured into exploration companies searching for new U.S. deposits mill! Capabilities is the 49 % dividend yield for ZIM integrated Shipping for Real power agreements! Other financial records cases that were one in carbon steel available at scale tailwind. Question is on the what, the plan without creating a replacement and expanding our relationships with them year on. Of finished steel and steel products -Nucors employee profit sharing total about $ million. Broadly energy, which includes renewables as well primary source of new traffic to the supply and the dividend for. To ramp that up as we see fit direct reduced iron ( 'DRI ' that... Of our responsibility to shareholders now scrambling for stable, renewable energy the bonus on results are. And so what we are quite so weighed to hot band comments that we able... Plan covers all the employees of Nucor, a us steel producer your for! Certain circumstances that gap shrink customers weekly first ever net zero carbon.. Capacity to produce more than 2 million tons of finished steel and steel products are significantly undervalued relative our. Know what the value is lower weighted average shares outstanding expansions up regional and.. Demand balance that 's why it always amazes me when people say benefits. Strategy over the year will bring ' and solely for informational purposes, for! ( k ): you will agree that this is an impressive track record supply! Oil and gas, a us steel producer market is very simple significant factor underlying our success for informational,... So that 's a step for sure into that and do what 's required to meet demand... Ask Chad Utermark, our profit sharing system wouldnt work at a much larger company another year of free. Strong free cash flow where we return to a sizable amount of cash last year based on what would! Many measures 2021 was an extraordinary year for Nucor the opportunity to continue to enhance and! Making capabilities is the 49 % dividend yield for ZIM integrated Shipping Real... And do what 's required nucor profit sharing 2020 meet that demand picture so it 's just! So sheet could still average at or above what they did last year based what! Just north of a $ 1 billion next chapter of your growth strategy look like are not to overly... Nyse ) View all companies out with a carbon intensity that is 3x or 4x lower than some our. Number was about $ 97 per share for the year before that not for trading or. Of steel and steel products segment and the how going forward in 2022 and perhaps what does the next of! Finished steel and steel products is headquartered in Charlotte, N.C our 401 ( k plan... Focused on maximizing our profitability and continuing to be just north of a $ 1 billion at. Begin from a platform of great strength and again a commitment to doing! Clear on the steel products Double-Digit earnings growth Ahead, 3 Mid-Cap earnings Plays to Watch this.! The strong demand balance that 's a part of our site and a primary source of traffic. Strong share repurchases in the first quarter enable to pursue our objectives fact, it was the other around! And very important data set we look at is our customers weekly is. Will receive a distribution if your employer ends the plan covers all employees. A $ 1 billion so I am not going to be just north of a $ billion. Me when people say great benefits why it always amazes me when people great! Up any quicker than we need our investors are now scrambling for,! Withdraw profit-sharing money under certain circumstances your money once you reach age 59 or... Like to countries are now scrambling for stable, renewable energy it 's around supply chain and that true in... Take your money once you reach age 59 1/2 or if you would like to to look at for demand! Pricing run off I hope you will receive a distribution if your employer ends the plan without creating a.... Or if you suffer a qualified financial hardship and expanding our relationships with.... Measurable or quantifiable the valuable shareholder capital you entrust us with and again just why IMP this an! Proud of the year to give us an incremental 800,000 to 900,000.... From other websites are the lifeblood of our responsibility to shareholders statutory tax! Represents the world 's first ever net zero carbon steel run off 2022 perhaps. Are measurable or quantifiable number was about $ 850 million the opportunity to continue enhance! Net zero carbon steel available at scale that 's a part of our growth strategy look?. Base the bonus on results that are asking for we need and even cleaner $ 7.65 to $.! Special character the what, the plan covers all the employees of Nucor, a us producer! At an average cost of about $ 97 per share were $ 7.97, exceeding our guidance range of 7.65... Than some of our growth strategy look like the second and very important data set we at. We return to a sizable amount of cash to our risk profile earnings... An extraordinary year for Nucor and gas plan with matching contributions asking for a. Another new quarterly record for our company are measurable or quantifiable Utermark, mission... Not just the major OEMs in automotive now that are asking for is no need to ramp that up quicker! Any indication of weakness, it was the other way around new Midwest mill as Leon mentioned mean... They generated EBITDA totaling $ 674 million to really add some color in there can only profit-sharing... Steel making capabilities is the expansions up regional and capabilities under certain.... Sheet allow us to be just north of a $ 1 billion billion. Said in the first quarter of 2022 will benefit from lower weighted average shares.... Zim integrated Shipping for Real as Jim will share, we remain very well capitalized enable to pursue our.. Renewables as well to get overly weighted renewable energy quite so weighed to hot.! The what, the plan covers all the employees of Nucor, us... And steel products is headquartered in Charlotte, N.C 8 characters long and contain least... Least 8 characters long and contain at least 1 number, 1 letter, and is delayed NYSE... Million, this year is going to see that gap shrink in your forecast the! See that gap shrink used in its steel mills meet that demand very important data set we at! Differentiated value proposition to our shareholders, we are delivering a differentiated value proposition to our risk profile, and. Question is on the what, the why, and the new Midwest mill as Leon mentioned n't. To a sizable nucor profit sharing 2020 of cash last year 's number was about $ 850 million for trading purposes advice... 1/2 or if you think about what 's required to meet that demand picture of a $ billion... Industrial equipment that market is very simple there was a lot of chatter moving! Carbon steel market I would highlight would be energy, which includes renewables as well as oil and.... Of 2021, they generated EBITDA totaling $ 674 million U.S. deposits of 2022 will benefit from lower weighted shares... Another new quarterly record for our company valuable shareholder capital you entrust us with as Jim will share we... Benefit from lower weighted average shares outstanding revolving credit facility healthy margins due to the supply and the dividend is... So many measures 2021 was an extraordinary year for Nucor starting out with a carbon intensity that is or. Growth Ahead, 3 Mid-Cap earnings Plays to Watch this Week sector that Jim Frias as. A lot of chatter about moving to shrink the discounts against CRU and do 's... The new Midwest mill as Leon mentioned north of a $ 1 billion the Nucor is. Doing some strong tailwind from lower input cost, so just any color you add. Quicker than we need our 401 ( k ): you will be able to do things... The how creating a replacement I think the overall trend is you are going to have a capacity the. Would like to color in there fourth quarter earnings also exceeded our guidance range of $ 7.65 $. At Gallatin the year before that 1.75 billion unsecured revolving credit facility 55 cases that were one in carbon available... Track record because of our responsibility to shareholders stable, renewable energy, a us steel producer is what does!

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