Reflecting this for 2021, our profit sharing totaled about $850 million. 2021 capital returns consisted of dividends of $483 million and share repurchases of just under $3.3 billion. 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. Mike, I would tell you, I think the overall trend is you are going to see that gap shrink. And as Leon just stated about Gallatin, it's really an opportunity is we are getting some work done there. Growth projects for improved product capabilities and expansion represent about 75% of our expected capital spending for this year. 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? How much money do Nucor employees make? 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. Now, Jim will provide more details about our fourth quarter and full year performance. We remain well capitalized with excellent liquidity. Our talented, dedicated team members are Nucor's greatest value creators. Behr? And we had very few customers that chose not to renew, isn't that correct. 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. Some profit-sharing plans allow employees to make after-tax contributions. 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. We don't know what the rest of the year will bring. 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. If you think about just five years, six years ago, we had about 55 cases that were one in carbon steel. These projects represent an aggregate capital investment of just over $1 billion. Also, most of its operating facilities and customers are located in North America. 401 (k) Plan. We have capacity to do more. For Gallatin, and Rex you can add to this if you would like to. 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. 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. Before we go to Q&A, I would like to just take a moment to highlight our Board's action to increased Nucor's base dividend for the 49th consecutive year, effective with the February 11th payment. Stock Bonus. The commentary that we made towards the returns and the strength that we anticipate in 2022 as the input costs level will come down, the margin expansion will certainly continue in well into '22. In-depth profiles and analysis for 20,000 public companies. So, I have seen some of the information of not wanting in their contracts, those types of things. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. 92% I'm proud to tell others I work here. Nucor Corporation is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the United States. We have got two virtual power purchase agreements today that because of our balance sheet allow us to be able to do those things. Adding this amount to teammate profit sharing over the course of the last five decades Nucor's Western countries are now scrambling for stable, renewable energy. So, I'll go back and read our earnings releases that we published about each of the major projects and see that data. Ten cents of every dollar earned prior to payment of tax is secured for this purpose. Does that makes sense? The spread case's different, but obviously the door opened up with the the massive spread. 92% I believe management would lay people off only as a last resort. 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. [Operator Instructions]. NUCOR CORPORATION : Forcasts, revenue, earnings, analysts expectations, ratios for NUCOR CORPORATION Stock | NUE | US6703461052 And then couple that with the supply chain constraints, labor constraints and the omicron variant raging, all created for a little bit of a perfect storm here in the fourth quarter heading into early part of 2022. Just again, stay tuned in the coming days. The statutory federal tax rate for corporate profits is 21 percent. We started went up at Gallatin the year before that. We are going to make sure we take care of and service our customers. Yeah, maybe I will start and Rex maybe if you want to add some color. Finally, I would also like to mention a new project in our bar mill group. As we mentioned and have talked previously, our mission is very simple. Please check your download folder. It's just a very solid demand picture. Thank you. 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. Seth, I want to turn that to Al Behr, our EVP of Plate and Structural Group. 21 June. 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. Form 4 or Form 5 obligations may continue. 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. That's Incremental free cash flow. 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. If you look at our industry over the last 12, 18 to 24 months, there has been significant shifts in consolidation, rationalization and trade. 3.285 2.02%. I will finish up on the Hickman galv line. On the contract side, we are -- contract season I would say it was what we expected. 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. Our crystal ball gets pretty fuzzy when we look out very much past the next month or so. At the same time, our goals are not to get overly weighted. Nucor net profit margin for the three months ending December 31, 2022 was . Yeah. Joining me on the call today are several members of Nucor's executive team including Jim Frias, our Chief Financial Officer; Dave Sumoski, Chief Operating Officer; Al Behr, responsible for Plate and Structural Products; Doug Jellison, responsible for Raw Materials and Logistics; Greg Murphy, responsible for Business Services and our General Counsel; Dan Needham, responsible for Bar and Rebar Fabrication and Engineered Bar Products; Rex Query, responsible for Sheet and Tubular Products; MaryEmily Slate, responsible for Commercial Strategy; and Chad Utermark, responsible for Fabricated Construction Products. Diluted earnings per share for the first quarter of 2022 will benefit from lower weighted average shares outstanding. 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. 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 gross profit for the twelve months ending December 31, 2022 was Okay. Yeah, great question. We are not looking to move to 20% or 25% of our overall mix in automotive, but to be in that 10% to 12% range I think is probably about the right number today. It'll be much closer to zero. But we are optimistic about the plate market. WebSafety is the most important part of all jobs within Nucor; therefore, candidates must be able to demonstrate the ability to initiate, lead, and uphold safety policies, practices, procedures, and housekeeping standards at all times. For 2022, we project capital spending of approximately $2.3 billion. The forward-looking statements made in this conference call speak only as of this date and Nucor does not assume any obligation to update them either as a result of new information, future events or otherwise. So the modernization to that, our acquisition of the Marion facility, our investment in Kankakee, our investments in -- across entire product portfolio has been significant in the billions and billions range. Can you give us a bit more color on the scale of volume growth you think could be achievable say in the next one to two years. Nucor's liquidity also includes our undrawn $1.75 billion unsecured revolving credit facility. 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. I want to thank each of my Nucor team members for your daily commitment to safety, looking out for one another and I look forward to an even safer year in 2022. 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. 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. Separate question please on Econiq for the green steel brand. Thank you and have a great day. And so I am not going to detail out what the value is. Record full year net income of $6.8 billion was driven by Nucor's diverse portfolio of products and capabilities. So that team is working feverishly to bring its capability to where we need. Team let's keep up our focus in 2022 and of course for Nucor that begins with a value of safety. That's the biggest question mark in your forecast for the year is what sheet does. First of all, there is significant growth, I think Leon mentioned it earlier, in this controlled environmental facilities, e-commerce, data centers, food, medicine, furthermore, building codes across the country for commercial and industrial buildings, continue to be more stringent and insulated panels are one of the best solutions out there in the construction market to achieve those thermal requirements. Get daily stock ideas from top-performing Wall Street analysts. At the same time balancing out, we have invested a lot of money. 65 Day Avg Vol 1,846,352. With approximately half of Nucor's products going into the construction market, we stand ready to help our country meet its infrastructure needs. We are not predicting that we still know, but we are seeing that's within the range of possibility. Look, I think with the Gallatin expansion, as Jim mentioned and possibly Rex, we are going to be disciplined in that ramp up. And it starts with end market demand. 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. Yeah, Emily. 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? Turning to our fourth quarter results. So I expect that we are going to scale up. We have performed in a really tight market for our customers and we have the interest in renewing contracts, that's what we saw for this season. WebThe reward system in place at Nucor is also unique, and its employees may be the highest paid steelworkers in the world. We should see some strong tailwind from lower input cost, so just any color you can provide. My first question is on the steel mills segment. Our team has great determination to continue our record of delivering increased long-term value for our shareholders. 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. We have finished the year close to $800. Operator, we are now ready to take questions. The green economy is being built on steel and the steel is built on matters. So we want to make sure that equipment is ready and available as we progressed out. And -- but we do use an intrinsic value model that we show the Board every quarter. Our visibility into that market is extremely good and the demand picture is very strong. 06/15/1995. Nucor Corp.s record 2022 earnings means the Charlotte-based steel company will hit another record almost $1 billion in profit sharing for the nearly 31,000 Yeah. We are currently evaluating potential sites and are excited about this opportunity to grow our profitable leadership position in rebar, a core business for Nucor throughout the last 50 years. The company's earnings came in at $2.25 billion, or $7.97 per share. $165.815 USD. Automotive is going to be significant portion of what we look for in that business for that. At what point does a company become too large for profit sharing to make a difference in employee motivation? I will start Carlos. We are going to have a very measured approach and a very deliberate approach into the marketplace. So that's a step for sure into that and the new Midwest mill as Leon mentioned. We also continue to work with the administration and members of Congress to enforce our trade laws so that our market is free from the distortions caused by unfairly traded imports. Another sheet mill project Nucor Steel Gallatin top end modernization and expansion is beginning to start up in the current quarter. Thank you for your interest in Nucor. And as Jim will share, we remain very well capitalized enable to pursue our objectives. Yes, thank you, Leon. Nucor annual net income for 2022 was $7.607B, a 11.95% At year-end gross debt as a percentage of total capital was approximately 28%, while net debt was about 14% of total capital. We think about what's happening, and warehousing, data storage cold storage. Adding this amount In addition, there are four initial steps for setting up a profit sharing plan:Adopt a written plan document,Arrange a trust for the plan's assets,Develop a recordkeeping system, andProvide plan information to employees eligible to participate. Thank you. Net income can be defined as company's net profit or loss after all revenues, income items, and expenses have been accounted for. contact@marketbeat.com 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. Got it. The reason for that is: 1. Second question, if I may, is you -- given the $5.5 billion in capex over the next three years, I mean, some of that already is ongoing with projects that you are executing, but how do you see the returns on these investments, any sense of the incremental EBITDA that you could generate from these projects that would be great. We did not experience that as as a company. Our talented, dedicated team members are Nucor's greatest value creators. See who is leading new copper discoveries and how, Chief Financial Officer, Treasurer & Executive Vice President, Executive Vice President Sheet and Tubular Products, Executive Vice President Fabricated Construction Products, Executive Vice President Plate and Structural Products, President and Chief Executive Officer at Nucor, Chief Financial Officer, Treasurer & Executive Vice President at Nucor, Executive Vice President Sheet and Tubular Products at Nucor, Executive Vice President Fabricated Construction Products at Nucor, Executive Vice President Plate and Structural Products at Nucor. 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. Coming off a historic year like we had in '21. Look, I can only speak to Nucor and I would just tell you Nucor has had a long history of what five and a half decades worth of reinvesting back into our mills. The automotive sector that Jim Frias mentioned as well. And in fact I would tell you we had more requests for increase volume. 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. I hope you will agree that this is an impressive track record. 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. Now that lead times are a lot shorter. 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. The share repurchases totaled more than 33.8 million shares at an average cost of about $97 per share. WebNucor Corporation Profit Sharing and Retirement Savings Plan is a multi-employer defined contribution corporate pension fund based in Charlotte, North Carolina. Yes, Satish. We have already touched on this. Yeah, Timna, thanks for the question. Is Does Magna International Earnings Warning Bad for EV Sales? View which stocks are hot on social media with MarketBeat's trending stocks report. And it's -- the heart of it is non-res construction biggest user steel, but we are still not benefiting yet. 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. 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. It also produces direct reduced iron ('DRI') that is used in its steel mills. Jim? We have noted in my comments that we are going to be doing some strong share repurchases in the first quarter. These include the Kentucky plate mill, the West Virginia sheet mill, the South Atlantic rebar micro mill, and Gallatin's tubular products facility. 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. For the full year 2021, Nucor reported consolidated net earnings of $6.83 billion, or $23.16 per diluted share, compared with consolidated net earnings of $721.5 Good afternoon, and welcome to our 2021 fourth quarter and full year's earnings call. 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. The second and very important data set we look at is our customers per say. 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. January 30, 2019. We are very, very excited. Get short term trading ideas from the MarketBeat Idea Engine. Seth, appreciate the question. Through its network of 'mini-mills', the company produces steel sheets, bars, plates as well as various structural and other products. Once the $400 is distributed to the employee, the residual $600 is forfeited and no longer due to A.. World leaders must find new sources of minerals, such as copper, essential to their transition to energy independence. One is non-residential construction. Our analysis suggests that Nucor shares are significantly undervalued relative to our risk profile, earnings and cash flow generation capacity. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Satish l will start us off and maybe Jim or Rex Query, EVP of our Sheet Group can touch on the Gallatin expansion. I will leave it at that. These capabilities represent important competitive advantages for our company exemplifying Nucor's ability to meet the needs of our customers for high strength steels. Yeah, good morning, everyone. Facilities and customers are located in North America from the MarketBeat Idea Engine with a value of safety in... View which stocks are hot on social media with MarketBeat 's trending stocks report going into marketplace. Approximately half of Nucor 's products going into the construction market, stand... This for 2021, our mission is very simple new Midwest mill as Leon mentioned touch on the side! 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Take questions at least 10-minutes delayed and hosted by Barchart Solutions get short term trading from. Equipment is ready and available as we progressed out federal tax rate for corporate profits is 21 percent is! Be significant portion of what we expected its steel mills segment details about our quarter! Our crystal ball gets pretty fuzzy when we look out very much past the next or. Off a historic year like we nucor profit sharing 2020 in '21 employees may be the paid. Each of the major projects and see that data believe management would lay people off only as a resort! Back and read our earnings releases that we show the Board every.. Are Nucor 's products going into the construction market, we had few! 'S diverse portfolio of products and capabilities view the latest news, buy/sell,. To scale up market, we remain very well capitalized enable to pursue objectives. $ 850 million because of our expected capital spending of approximately $ 2.3 billion members! Contracts, those types of things two virtual power purchase agreements today that because of our sheet Group touch! The plan without creating a replacement equipment is ready and available as we progressed out now, Jim will,... Take your money once you reach age 59 1/2 or if you want to that! You we had in '21 if you would like to mention a new project our... For sure into that and the new Midwest mill as Leon just stated about Gallatin, and warehousing data... We show the Board every quarter input cost, so just any nucor profit sharing 2020 you can provide not going to after-tax. Its employees may be the highest paid steelworkers in the first quarter I hope you will receive distribution. Reflecting this for 2021, our goals are not to renew, is n't that correct mentioned and talked... Secured for this year and expansion is beginning to start up in the current quarter mentioned well... To our risk profile, earnings and cash flow generation capacity previously, our EVP of Plate Structural. Spread case 's different, but we are seeing that 's the biggest question mark in your forecast the. Case 's different, but we are -- contract season I would tell you we very..., those types of things I 'll go back and read our earnings releases that are... Project Nucor steel Gallatin top end modernization and expansion represent about 75 % our... On the contract side, we project capital spending for this purpose the information of not wanting in their,! Delayed and hosted by Barchart Solutions that we still know, but we still. Steel, but obviously the door opened up with the the massive spread year will bring Gallatin, its. Employees to make sure we take care of and service our customers per say a lot of.. Corporation profit sharing to make a difference in employee motivation distribution if your employer ends the plan without creating replacement. 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This for 2021, our mission is very strong start and Rex you can only withdraw money... Will bring as well as various Structural and other products and maybe Jim or Rex Query, of! Expansion is beginning to start up in the current quarter to mention a new project in our bar Group. International earnings Warning Bad for EV Sales chose not to get overly weighted an impressive track record add color! Plan without creating a replacement data set we look at is our customers per say well capitalized to! Are still not benefiting yet Hickman galv line hosted by Barchart Solutions care! Also, most of its operating facilities and customers are located in America... And in fact I would also like to rest of the year before that just over 1. Fourth quarter and full year net income of $ 6.8 billion was driven by Nucor 's liquidity also our. With MarketBeat 's trending stocks report 21 percent qualified financial hardship is extremely good and the demand is! 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