Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. junior Avg
|
New words:
awarded, consecutive, declared, denied, dividend, driver, excessive, explained, heightened, largest, modestly, motion, phased, preceding, QEI, rainfall, Similarly, slightly
Removed:
achieving, connection, efficiently, employ, enhance, mentioned, organic, reduction
Financial report summary
?Risks
- We are vulnerable to the economic conditions in the regions in which our operations are concentrated.
- We rely on the availability of large amounts of electricity and natural gas. Disruptions in delivery or substantial increases in energy costs, including crude oil prices, could adversely affect our business, results of operations and financial condition.
- We may encounter labor disputes and shortages for skilled labor and/or qualified employees in operational positions, which could adversely impact our operations.
- Our business, financial condition and results of operations may be adversely impacted by the effects of inflation.
- We may have difficulty competing with companies that have a lower cost structure or access to greater financial resources.
- Operating and startup risks, as well as market risks associated with the commissioning of our micro mills, could prevent us from realizing anticipated benefits and could result in a loss of all or a substantial part of our investments.
- Our mills require continual capital investments that we may not be able to sustain.
- Unexpected equipment failures may lead to production curtailments or shutdowns, which may adversely affect our business, results of operations and financial condition.
- Information technology interruptions and breaches in data security could adversely impact our business, results of operations and financial condition.
- The impact of the Russian invasion of Ukraine on the global economy, energy supplies and raw materials is uncertain, but may continue to negatively impact our business and operations.
- The potential impact of our customers' non-compliance with existing commercial contracts and commitments, due to insolvency or for any other reason, may adversely affect our business, results of operations and financial condition.
- The agreements governing our notes and our other debt contain financial covenants and impose restrictions on our business.
- We may not be able to successfully identify, consummate or integrate acquisitions, and acquisitions may adversely affect our financial leverage.
- Goodwill or other indefinite-lived intangible asset impairment charges in the future could have a material adverse effect on our business, results of operations and financial condition.
- Impairment of long-lived assets in the future could have a material adverse effect on our business, results of operations and financial condition.
- Competition from other materials may have a material adverse effect on our business, results of operations and financial condition.
- Our operations present significant risk of injury or death.
- Fluctuations in the value of the U.S. dollar relative to other currencies may adversely affect our business, results of operations and financial condition.
- Operating internationally carries risks and uncertainties which could adversely affect our business, results of operations and financial condition.
- Hedging transactions may expose us to losses or limit our potential gains.
- There can be no assurance that we will repurchase shares of our common stock at all or in any particular amounts.
- Excess capacity and over-production by foreign producers in the steel industry as well as the startup of new steelmaking capacity in the U.S. could result in lower domestic steel prices, which would adversely affect our sales, margins and profitability.
- Rapid and significant changes in the price of metals could adversely impact our business, results of operations and financial condition.
- Physical impacts of climate change could have a material adverse effect on our costs and results of operations.
- Increased regulation associated with climate change could impose significant additional costs on both our steelmaking and metals recycling operations.
- We are involved, and may in the future become involved, in various environmental matters that may result in fines, penalties or judgments being assessed against us or liability imposed upon us which we cannot presently estimate or reasonably foresee, and which may have a material impact on our business, results of operations and financial condition.
- Changes in tax legislation and regulations in the jurisdictions in which we operate may adversely affect our financial condition or results of operations.
Management Discussion
- Net sales during 2023 remained relatively flat, compared to 2022. See discussions below, labeled North America and Europe within our Segments section, for further information on our year-over-year net sales results.
- During 2023, we achieved net earnings of $859.8 million, a decrease of $357.5 million, or 29%, compared to 2022. Included in net earnings during 2022 was a $273.3 million gain on the sale of the Rancho Cucamonga facilities. The remaining year-over-year change in net earnings was primarily due to compression in steel products metal margins in our Europe segment during 2023, contrasted by significant expansion in downstream products metal margins over scrap in our North America segment during 2023 compared to 2022. See Note 2, Changes in Business, in Part II, Item 8 of this Annual Report for more information on the sale of the Rancho Cucamonga facilities.
- SG&A expenses increased $98.6 million in 2023 compared to 2022. Contributing to the year-over-year increase was $60.5 million of incremental SG&A expenses from Tensar operations' commercial and engineering support incurred during the twelve months ended August 31, 2023, compared to the expenses recorded in the period following the Tensar Acquisition Date to August 31, 2022, as well as $12.8 million of SG&A expenses from the 2023 Acquisitions, with no such expenses in 2022. The remaining increase in SG&A expenses in 2023 compared to 2022 was due primarily to an $11.1 million increase in professional services expenses, a $10.7 million increase in expenses for our benefit restoration plan ("BRP") and a $4.2 million pension plan settlement charge, with no such settlement charge in the corresponding period. These fluctuations were partially offset by a $16.6 million decrease in labor-related expenses during 2023 compared to 2022. See Note 2, Changes in Business, in Part II, Item 8 of this Annual Report for more information about the Tensar acquisition and the 2023 Acquisitions and Note 14, Employees' Retirement Plans, in Part II, Item 8 of this Annual Report for more information on the pension plan termination activity.