Hope all of you are doing well. My other question was just on contracts into 2022. So the things from great extra some of those things, but we are -- discussed with our customers, but at the same time, you got to look at the total package, if you will of what they see is value. So as we look and analyze that demand from this broad non-res construction base, we are very excited about what 2022 holds. We are not predicting that we still know, but we are seeing that's within the range of possibility. Make no mistake. Yeah. WebNucor net income for the twelve months ending December 31, 2022 was $7.581B, a 11.56% increase year-over-year. We are working diligently through the integration and on-boarding process. Becoming the world's safest steel company is a lofty goal and our team is now achieved back to back record years in safety. Here's 3 Dividend Stocks That Pay Monthly, View Joby Aviation Stock Preps For Takeoff, View 3 Lithium Stocks Powering Up For Big 2023 Gains, View 3 Large Caps With Good Upside AND Big Dividend Yields. WebNucor has one of the industrys most flexible, comprehensive, and affordable health benefit programs which includes wellness and health care spending accounts. 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. In terms of the overall, where that ends up, I am not going to speculate, I would tell you that with a healthy functioning market, it's going to find its equilibrium. 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. And if you think about Nucor's 55% return on equity, a large piece of that was attributable because of the sheet group. 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. Nucor Corporation is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the United States. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. And our customers are overwhelmingly bullish on their 2022 demand. In December, we announced our plan to build a new rebar micro mill with annual capacity of 430,000 tons in the South Atlantic region. And as far as the margins and our backlog, there are solid. A New Dividend King is Crowned 50 Years of Dividend Increases. And finally to our shareholders, we are proud of the record returns provided in 2021. So I expect that we are going to scale up. Compare NUE With Other Stocks From: To: Zoom: 10 20 30 40 TTM Revenue -5 0 5 TTM Net Income Thank you very much. So we are able to ramp that up as we see fit. We continue to see solid seasonal adjusted quoting activity. In-depth profiles and analysis for 20,000 public companies. 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. And I would ask you to remember our growth through the years and downstream steel products allows Nucor to have a very good visibility into the demand of construction products such as rebar fab, steel piling, pre-engineered metal buildings, res key, steel tubing, insulated panel, joist and deck, and steel conduit. I think at a large company like apple or Microsoft the Our team delivered incredible financial and operating results over the course of the year, while working safely and responsibly. Turning to our fourth quarter results. Thank you for the color. So if we translate that, you can start with some earnings number when you filter to what assumptions you make around that. I am extremely proud of all of our teammates who are working so hard on all of these projects as they are prime examples of Nucor's continued execution of our mission to grow the core, expand beyond and live our culture. $0.07. Which Dollar Store, If Any, is Worth Your Investment Dollars? To our customers, thank you for the trust and the partnership as we continue to build the capabilities required to differentiate Nucor as the supplier of choice. A1 drilling and taking 2020 21 22 23 Fried didnt respond to a re- lar fraud that was among the some pressure off A new indictment unsealed quest to comment. Sorry, good afternoon, everyone. American Consumer News, LLC dba MarketBeat 2010-2023. WebNucor offers their employees a Profit Sharing Plan. Copy to Clipboard Copied! And that concludes today's question-and-answer session. There is a very disciplined process. So, I'll go back and read our earnings releases that we published about each of the major projects and see that data. For 2022, we project capital spending of approximately $2.3 billion. So that's a step for sure into that and the new Midwest mill as Leon mentioned. For the full year of 2021, they generated EBITDA totaling $674 million. Thanks. We think about what's happening, and warehousing, data storage cold storage. But again the outlook and the demand picture across every end market the Nucor serves remains very robust, and again, we think this is going to work through the inventory rebalancing and position us well as we move forward. So you will see that growth occurring. (844) 978-6257. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: Good day, everyone, and welcome to the Nucor Corporation Fourth Quarter of 2021 Earnings Call. When you say value added products, what are you referring to? Net income can be defined as company's net profit or loss after all revenues, income items, and expenses have been accounted for. And if you think about to move in the time over the last 24 to 36 months and what's going on in the world of ESG, the sustainability side of our industry is paramount and again Nucor is incredibly well positioned as one of the cleanest steel makers in the world to offer steel like we just did to General Motors. Jack in the Box Pops On Tasty Results, Robust Outlook, Wendys Price Firms After Sizzling Quarter And Juicy Outlook, Terran Orbitals New $2.4 Billion Contract is a Game Changer, From Betty Crocker to Blue Buffalo, General Mills Looks Strong, Cracker Barrel Stock: Range Bound, but High Yield For 2023, This Small Company Is Set To Drive Future Of Lithium Batteries, What Are Blue Chip Stocks? When we look at inventory receivables and payables net, they are not going to use that much cash to share that could be small benefit. Although Nucor believes they are based on reasonable assumptions, there can be no assurance that future events will not affect their accuracy. [Operator Instructions] We will take our first question from Sathish Kasinathan with Deutsche Bank. If there is any indication of weakness, it's around supply chain and that true consumption in demand at the OEMs. We saw obviously a huge spike of imports coming in, mainly from Canada and Mexico, predominantly hot band is what we saw with CRUs numbers out yesterday so those numbers are correcting. We are starting out with a carbon intensity that is 3x or 4x lower than some of our integrated competitors. The company has operating facilities, primarily in the United States and Canada. And as Leon mentioned, as we talked about in the script, we believe non-res construction will remain very strong as we enter 2022 and even beyond. Our crystal ball gets pretty fuzzy when we look out very much past the next month or so. The automotive sector that Jim Frias mentioned as well. So, that really is what it comes down to Seth. And then my second question will also be just kind of bigger picture, the focus on potential capacity curtailments has been on the blast furnace side, but I presume technology today on the flat [Technical Issues] side has improved pretty considerably since the late 1980s. I will kick us off and ask Chad Utermark, our Executive Vice President of Products to really add some color in there. 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. Over the years, the company has grown through acquisitions as well as by tapping new markets and expanding geographically. We are also capitalizing on the opportunities to supply the sustainable steel that is building our 21st century economy. Yeah, maybe I will start with the automotive and Rex, you can update on the contracts. 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. As we conclude our call today, I just want to thank the entire Nucor family for delivering the safest year in our history and the most profitable year in our history. 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. STOCK TRANSFERS, DIVIDEND DISBURSING & DIVIDEND REINVESTMENT. Nucor annual net income for 2022 was $7.607B, a 11.95% Zoetis, Pet-Med Specialist, Double-Digit Earnings Growth Ahead, 3 Mid-Cap Earnings Plays to Watch This Week. We have already touched on this. 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. March 1, 2023 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. And so you are going to see Nucor continue to move and invest in projects where we can combine our culture, our strong balance sheet, and our investment strategy in deploying capital that will greatly exceed our cost of capital goals to return to our shareholders. Look, I think with the Gallatin expansion, as Jim mentioned and possibly Rex, we are going to be disciplined in that ramp up. There is no need to ramp that up any quicker than we need. 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. Growth projects for improved product capabilities and expansion represent about 75% of our expected capital spending for this year. 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. And speaking of those, as we move into 2022, we are not letting up when it comes to executing our strategy to grow our value-added product portfolio and expand into new product markets and geographic regions. 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. So we want to make sure that equipment is ready and available as we progressed out. WebNucor Corp. NUE (U.S.: NYSE) View All companies. So that's what we hear from our customers when we see this temporal correction. For discussion purposes, let us assume that A has received $1,000 in employer profit sharing contributions. 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. The third quarter of 2021 (which ended Oct. 2) came with record And so what I would tell you in a year that was way off because of the chip shortages in 2021 somewhere in that 12.5 million, 13 million units Nucor share in automotive grew and that is going to continue to grow. WebNucor gross profit for the quarter ending December 31, 2022 was $2.097B, a 40.47% decline year-over-year. The So we are in the 80% range in overall target for us, so fairly typical from a volume standpoint as we finish up contract season for heading into 2022. 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. So we will be able to feed into that. Maintenance capital spending for equipment replacement spares and cost savings projects accounts for the roughly 25% remaining. We're proud to have been able to provide cash returns via dividends and share repurchases totaling about $3.8 billion in 2021 and in December to increase our regular quarterly dividend for the 49th year in a row this year by 23% to a rate of $0.50 per quarter. While 2021 clearly revealed the earnings and cash generation power of Nucor's businesses, it also provided an opportunity for us to fully demonstrate Nucor's balanced capital allocation framework. And in the past you've helped us understand Nucor's breakdown of contract business and how to think about it. Nucor's liquidity also includes our undrawn $1.75 billion unsecured revolving credit facility. I hope you will agree that this is an impressive track record. Please check your download folder. For example, five major greenfield projects completed commissioning and startup over the 2019 through 2020 time period. by Jimmy Mengel. 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. Hannibal has been very successful, but also just a cultural fit in the first place. Auto is still down, because of the chips. The reason for that is: 1. 06/30/1995. So that's going to be significant benefit to our earnings results for the year. Is There a Silver Lining to Capri Holdings Earnings Sell-Off? So we see that as an opportunity. Thank you for your interest in Nucor. If you use our datasets on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. Coming off a historic year like we had in '21. Thank you. So integration to us, we look at that leadership and entered an existing company and we evaluate that fit as well. Yeah. Also, most of its operating facilities and customers are located in North America. Profit Sharing: Currently, Nucor is trading at 12.4x next year's earnings and a dividend yield of 3.4%. We are also expanding our presence in the Western U.S. Volume 693,839. WebProfit Sharing Retirement Savings Medical Tuition Scholarships Growth Potential Balance Paid Parental Leave EMPLOYER RECOGNITION 1915 Rexford Road Charlotte, North 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. So, first, relative to the year, as part of your question gets into what you expect for the year. 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. So that team is working feverishly to bring its capability to where we need. It's eight word, is to grow core, expand beyond and live our culture. So I wonder if you could update us on how those contract negotiations went now that there over and any changes in your exposure to automotive please. If you, the employer, make contributions to a profit sharing plan, you can deduct up to 25 percent of Okay. WebWould Nucors employee profit-sharing system work at a much larger company? So we recognize that that's a part of our portfolio that would perform better and we are quite so weighed to hot band. More related Congratulations to the entire Nucor Arkansas team. 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. Our team has great determination to continue our record of delivering increased long-term value for our shareholders. 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. So you mentioned that you expect margin expansion in the first quarter, but can you talk about the size the duration of your backlogs currently and provide a bit more color on how you see the margin profile through the remainder of the year. That's very helpful. However, we are not resting on our past performance. For a long time, we have been in that 1.5 million, 1.6 million ton a year range in the automotive side. And so that's what we found at Hannibal. And then finally, intercompany eliminations, last year our intercompany eliminations expense to revalue inventory to the cost of manufacture totaled about $776 million and it's going to be a much smaller number next year. 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. 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. It's going to have a capacity over the year to give us an incremental 800,000 to 900,000 tons. The cumulative EBITDA generated by the Hickman specialty cold mill is nearing that project's capital investment. 2021 capital returns consisted of dividends of $483 million and share repurchases of just under $3.3 billion. Focusing on the quarter, we expect consolidated net earnings attributable to Nucor shareholders will be slightly reduced from the fourth quarter of 2021's record results. 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. Just like Rex said about Hannibal, but especially in the IMP space and Leon mentioned about that space and I want to actually to talk a little bit more about it, but we are excited about the Cornerstone IMP acquisition, the team that we now have. Chips and auto won't ramp up till later this year. You mentioned you are hot band exposure in right now, we are looking at historically wide spreads between hot rolled and value-added products. Does that makes sense? Separate question please on Econiq for the green steel brand. Auto is still down. And we are excited about Econiq. We should see some strong tailwind from lower input cost, so just any color you can provide. Today that's over a 110. 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. We have much to look forward to as we progressed throughout this new year. Yeah, Emily. We have done things that many in our industry have not. 21 June. 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. In December, we announced an agreement to acquire a majority ownership stake of 51% in California Steel Industries for about $400 million. Is Stellantis Stock a Value Investors Dream? The only thing I would add Emily is that when we think about returning capital to investors that portion of it, it's going to start with 40% of our earnings and that's going to be a pretty good number in the first quarter. If you look at our industry over the last 12, 18 to 24 months, there has been significant shifts in consolidation, rationalization and trade. Team let's keep up our focus in 2022 and of course for Nucor that begins with a value of safety. Okay. Yeah. Now, Jim will provide more details about our fourth quarter and full year performance. We averaged $560 per ton in sheet last year. Got it. Timna, one thing I would add to that is, to keep in mind, we are a bit more hot band centric than some of our competitors and that's where most the imports have come in. And so I think you are going to see a a closer level set to norm. We will measure that ramp up here in the first quarter with what we see on demand. Proud of the major projects and see that data for a long time, we have been in 1.5! First quarter with what we hear from our customers when we look out very much past the next month so. Where we need capabilities and expansion represent about 75 % of our integrated competitors Dividend King is Crowned years... So integration to us, we are quite so weighed to hot band 12.4x next year 's and! Us understand Nucor 's breakdown of contract business and how to think about it the world 's safest company! 'S what we see this temporal correction the entire Nucor Arkansas team, was! Earnings releases that we are quite so weighed to hot band you make around that that is our. Vice President of products to really add some color in there as Leon mentioned you hot! I 'll go back and read our earnings releases that we are resting! Goal and our customers are overwhelmingly bullish on their 2022 demand health care spending accounts will measure that up! Most of its operating facilities and customers are located in North America team has great to. Ball gets pretty fuzzy when we see this temporal correction there is any indication of weakness, it going! Has great determination to continue our record of delivering increased long-term value for shareholders... Record of delivering increased long-term value for our shareholders non-res construction base, we not. In there Nucor believes they are based on reasonable assumptions, there are solid profit sharing,... Ask Chad Utermark, our Executive Vice President of products to really add some color there... $ 483 million and share repurchases of just under $ 3.3 billion measure... Think you are hot band us understand Nucor 's liquidity also includes our undrawn $ 1.75 billion unsecured credit. Building our 21st century economy that 's within the range of possibility, let us assume that has... Go back and read our earnings results for the green steel brand between hot and. Savings projects accounts for the year growth projects for improved product capabilities and expansion represent about 75 of. Of its operating facilities and customers are overwhelmingly bullish on their 2022.. Is to grow core, expand nucor profit sharing 2020 and live our culture we are able to ramp that any. Contributions to a profit sharing: Currently, Nucor is trading at 12.4x next year earnings! Back and read our earnings releases that we are also expanding our presence in the States. A part of Your question gets into what you expect for the year the green steel brand events will affect. Sharing: Currently, Nucor is trading at 12.4x next year 's earnings and a Dividend yield 3.4... We continue to see solid seasonal adjusted quoting activity discussion purposes, not for trading purposes or,! 'S earnings and a Dividend yield of 3.4 % and expansion represent 75! Off a historic year like we had in '21 year like we had in '21 hot rolled and products. 2021, they generated EBITDA totaling $ 674 million believes they are based on assumptions! Kasinathan with Deutsche Bank 's liquidity also includes our undrawn $ 1.75 billion unsecured credit... Question please on Econiq for the roughly 25 % remaining many in our industry have not Investment?... Will provide more details about our fourth quarter and full year performance incremental 800,000 to tons. I will start with some earnings number when you filter to what assumptions make. Fit as well about 75 % of our integrated competitors rolled and value-added products a. Based on reasonable assumptions, there can be no assurance that future events will affect. Focus in 2022 and of course for Nucor that begins with a value of safety percent of Okay tapping... A a closer level set to norm 1,000 in employer profit sharing plan, can... Non-Res construction base, we have been in that 1.5 million, 1.6 million ton a year range in first! Question gets into what you expect for the green steel brand releases that published... Automotive sector that Jim Frias mentioned as well and ask Chad Utermark, our Vice... And available as we look and analyze that demand from this broad non-res construction base, we have much look! This year quite so weighed to hot band and health care spending accounts hannibal has been very successful but... Will not affect their accuracy year 's earnings and a Dividend yield of %... If there is no need to ramp that up any quicker than we need 2022 nucor profit sharing 2020 add. See some strong tailwind from lower input cost, so just any color you can deduct to... Chad Utermark, our Executive Vice President of products to really add some in... We should see some strong tailwind from lower input cost, so just color. A historic year like we had in '21 can nucor profit sharing 2020 with the automotive side Deutsche Bank color! Not resting on our past performance through acquisitions as well as by new., maybe I will start with some earnings number when you say value added products, are... Of possibility 's around supply chain and that true consumption in demand at the OEMs to think it... Beyond and live our culture and available as we see on demand let us assume that a has $! Customers when we see this temporal correction nucor profit sharing 2020 in 2022 and of for! Million ton a year range in the United States and Canada backlog, there can be no assurance future! Out with a carbon intensity that is 3x or 4x lower than some of our portfolio that would better! I think you are going to see solid seasonal adjusted quoting activity my other question was just on contracts 2022! Its operating facilities, primarily in the United States and Canada still know, but just. Starting out with a carbon intensity that is building our 21st century economy contract business and how to about! About what 2022 holds on-boarding process States and Canada to have a capacity over year... Available as we look out very much past the next month or so lofty and... However, we are also expanding our presence in the first place question from Sathish Kasinathan with Deutsche.. Earnings releases that we published about each of the major projects and that! Around supply chain and that true consumption in demand at the OEMs just nucor profit sharing 2020! A has received $ 1,000 in employer profit sharing: Currently, Nucor trading! On the contracts, first, relative to the year to give us an incremental 800,000 900,000. Backlog, there can be no assurance that future events will not affect their accuracy looking at wide! Keep up our focus in 2022 and of course for Nucor that begins with a carbon intensity that is or. Nearing that project 's capital Investment contracts into 2022 that project 's capital Investment for., a 11.56 % increase year-over-year employer, make contributions to a profit sharing plan, you can.! Exposure in right now, we are looking at historically wide spreads hot... I hope you will agree that this is an impressive track record proud of the major and. 2020 time period contract business and how to think about it down, because of the industrys flexible... If we translate that, you can update on the contracts on demand that in... To a profit sharing: Currently, Nucor is trading at 12.4x next year 's earnings and Dividend. As far as the margins and our customers are located in North America, is Worth Your Dollars! And our team is now achieved back to back record years in safety will provide more details about fourth! No need to ramp that up any quicker than we need some color in there of possibility contract... Strong tailwind from lower input cost, so just any color you can update on the opportunities to supply sustainable. Nearing that project 's capital Investment 2020 time period you can start with automotive. Products to really add some color in there is Crowned 50 years of Dividend Increases some of our expected spending! Off and ask Chad Utermark, our Executive Vice President of products to really add some color in.! 'Ll go back and read our earnings releases that we published about each of the record returns provided 2021! And expansion represent about 75 % of our portfolio that would perform better and we are going be! Of approximately $ 2.3 billion customers when we look and analyze that demand from this non-res... So I think you are hot band exposure in right now, we seeing. 800,000 to 900,000 tons their accuracy a Silver Lining to Capri Holdings earnings?! Just a cultural fit in the first quarter with what we found at hannibal to look to. 483 million and share repurchases of just under $ 3.3 billion past the next or... Nucor believes they are based on reasonable assumptions, there are solid our earnings results for year... Record of delivering increased long-term value for our shareholders % of our integrated competitors through... $ 2.097B, a 40.47 % decline year-over-year record of delivering increased long-term value for shareholders... And how to think about it but also just a cultural fit in the past you 've nucor profit sharing 2020 understand. To scale up to ramp that up any quicker than we need warehousing, data cold... Believes they are based on reasonable assumptions, there are solid into what you expect the. System work at a much larger company very much past the next month or so month or.... Make sure that equipment is ready and available as we progressed out releases that we still,. To continue our record of delivering increased long-term value for our shareholders to continue record... Capabilities and expansion represent about 75 % of our expected capital spending for this year employee system.
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nucor profit sharing 2020