Nucor(NUE) - 2024 Q4 - Annual Report

Financial Performance - Nucor reported consolidated net earnings of $2.03 billion, or$8.46 per diluted share, in 2024, a decrease from $4.53 billion, or$18.00 per diluted share, in 2023[218]. - Net earnings for 2024 were $2.03 billion, or$8.46 per diluted share, down from $4.53 billion, or$18.00 per diluted share in 2023, representing a 55.3% decrease[236]. - Total net sales to external customers decreased by 11% from $34.71 billion in 2023 to$30.73 billion in 2024, with an average sales price per ton decreasing by 10% from $1,377 to$1,241[221]. Sales and Market Demand - The steel products segment experienced a 21% decrease in net sales from $12.76 billion in 2023 to$10.09 billion in 2024, primarily due to a 12% decrease in average sales price per ton[224]. - Joist sales in the steel products segment fell by 23% from 510,000 tons in 2023 to 391,000 tons in 2024, reflecting a broader decline in construction-related demand[223]. - Total tons shipped to outside customers decreased by 2% from 25,205,000 tons in 2023 to 24,767,000 tons in 2024[221]. - Operating rates at Nucor's steel mills decreased slightly to 76% in 2024 from 78% in 2023, indicating a softening in steel market demand[201]. Cost and Margin Analysis - Gross margins decreased from $7.82 billion (23$4.10 billion (13%) in 2024, reflecting the impact of lower selling prices and increased raw material costs[226]. - Gross margins in the steel mills segment decreased significantly due to decreased metal margins, with average scrap costs per gross ton decreasing by 6% from $421 in 2023 to$394 in 2024[37]. - The steel mills segment's net sales decreased by 7% in 2024 compared to 2023, driven by a 7% decrease in average sales price per ton[222]. Investments and Capital Expenditures - Planned capital expenditures for 2025 are approximately $3.0 billion, with significant investments in ongoing projects including a sheet mill in West Virginia and two new manufacturing locations[262]. - Cash used in investing activities increased by$1.24 billion to $3.17 billion in 2024, primarily due to$758 million for acquisitions compared to $71 million in 2023, with$565 million allocated to the acquisition of Rytec[250]. - Pre-operating and start-up costs of new facilities increased to approximately $594 million in 2024 from approximately$400 million in 2023, primarily related to new mills in Kentucky, West Virginia, and Arizona[37]. Shareholder Returns - Nucor returned approximately $2.7 billion to stockholders in 2024 through dividends and share repurchases, maintaining a commitment to return a minimum of 40$2.22 billion in 2024, up from $1.55 billion in 2023, an increase of$663 million, while cash dividends to stockholders rose slightly to $522 million from$515 million[251]. - Nucor paid aggregate dividends of $2.16 per share in 2024, an increase from$2.04 per share in 2023, and declared a quarterly cash dividend of $0.55 per share for May 2025[257]. Liquidity and Financial Ratios - Cash and cash equivalents decreased to$3.56 billion in 2024 from $6.38 billion in 2023, reflecting a significant reduction in liquidity[242]. - The current ratio declined to 2.5 at year-end 2024 from 3.6 at year-end 2023, impacted by lower cash and cash equivalents and increased current portion of long-term debt[242]. - Total accounts receivable turnover was approximately every five weeks in 2024, consistent with 2023, while inventory turnover improved from approximately every 11 weeks in 2023 to every ten weeks in 2024[243]. Debt and Obligations - Nucor's funded debt to total capital ratio was 24.5$1.75 billion undrawn revolving credit facility maturing on November 5, 2026[252]. - Total contractual obligations as of December 31, 2024, amounted to $17.25 billion, with long-term debt obligations of$6.73 billion[259]. - Nucor's long-term debt consists of 21% variable-rate instruments and 79% fixed-rate instruments as of December 31, 2024[283]. Risk Management - A hypothetical 10% change in natural gas prices could negatively affect pre-tax earnings by $11 million, while a 25$28 million impact[286]. - The company is exposed to foreign currency risk primarily through operations in Canada, Europe, and Mexico, with insignificant open foreign currency derivative contracts as of December 31, 2024[287]. - Nucor's DRI facilities in Trinidad and Louisiana provide flexibility in managing input costs, particularly when demand for prime scrap increases[284]. Other Financial Metrics - Equity in earnings of unconsolidated affiliates rose to $30 million in 2024 from$13 million in 2023, mainly due to decreased losses at NJSM[228]. - Losses and impairments of assets in 2024 totaled $137 million, including an$83 million impairment charge related to a long-term note receivable[229]. - Interest expense decreased to $228 million in 2024 from$246 million in 2023, while interest income decreased to $258 million from$276 million[230].