Nucor Corporation (NYSE: NUE) has reported its consolidated net earnings attributable to Nucor stockholders for the second quarter of 2024 at $645.2 million, or $2.68 per diluted share. Comparatively, this is a decrease from the first quarter of 2024, where Nucor reported consolidated net earnings of $844.8 million, or $3.46 per diluted share. Moreover, it is also a substantial decline from the second quarter of 2023, where the company reported consolidated net earnings of $1.46 billion, or $5.81 per diluted share.
The company's consolidated net sales decreased 1% to $8.08 billion in the second quarter of 2024 compared to $8.14 billion in the first quarter of 2024 and decreased 15% compared to $9.52 billion in the second quarter of 2023. Additionally, the average sales price per ton in the second quarter of 2024 decreased 2% compared with the first quarter of 2024 and decreased 11% compared with the second quarter of 2023.
Total tons shipped to outside customers in the first six months of 2024 were approximately 12,513,000 tons, a decrease of 4% compared with the first six months of 2023, and the average sales price per ton in the first six months of 2024 decreased 7% compared with the first six months of 2023.
The company's operating rates at its steel mills decreased to 75% in the second quarter of 2024 compared to 82% in the first quarter of 2024 and 84% in the second quarter of 2023. Operating rates in the first six months of 2024 decreased to 79% compared to 82% in the first six months of 2023.
At the end of the second quarter of 2024, Nucor had $5.43 billion in cash and cash equivalents and short-term investments on hand. The company’s $1.75 billion revolving credit facility remains undrawn and does not expire until November 2026.
Nucor repurchased approximately 2.9 million shares of its common stock during the second quarter of 2024 at an average price of $170.70 per share and approximately 8.5 million shares during the first six months of 2024 at an average price of $177.30 per share. As of June 29, 2024, Nucor had approximately $1.82 billion remaining authorized and available for repurchases under its share repurchase program.
Nucor's board of directors declared a cash dividend of $0.54 per share on June 6, 2024, payable on August 9, 2024, to stockholders of record as of June 28, 2024. This marks Nucor’s 205th consecutive quarterly cash dividend.
The largest driver of the decrease in earnings in the second quarter of 2024 compared to the first quarter of 2024 was the decreased earnings of the steel mills segment, primarily due to lower average selling prices, and, to a lesser extent, decreased volumes.
Looking ahead, Nucor expects earnings in the third quarter of 2024 to decrease compared to the second quarter of 2024. The largest driver for the expected decrease in earnings in the third quarter of 2024 is the expected decrease in earnings of the steel mills segment, primarily due to lower average selling prices. Following these announcements, the company's shares moved -1.2%, and are now trading at a price of $161.4. For the full picture, make sure to review Nucor's 8-K report.
