NUE - Earnings call transcript Q2 2020

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Operator

Good day, everyone and welcome to the Nucor Corporation’s Second Quarter of 2020 Earnings Conference Call.

As a reminder, today's call is being recorded. Later we will conduct a question-and-answer session and instructions will be given at that time. Certain statements made during this conference call will be forward-looking statements that involve risks and uncertainties. The words we expect believe anticipate and variations of such words or similar expressions are intended to identify those forward-looking statements, which are based on management's current expectations and information that is currently available.

are that reasonable affect future they be there their believes assurance no events Nucor based assumptions, on can accuracy. Although, will not the Nucor found about statements XX-Q, XX-K which information the on and filed related More the available SEC's risks and subsequently may site. the in to be are Nucor's Web latest uncertainties forward-looking result assume forward-looking of either date and this statements as only of them, events future made The information, update does new in any not or speak as to this a conference call obligation Nucor otherwise.

call now For sir. to opening I and Nucor introductions, Topalian, remarks of Chief ahead go Leon and like Corporation. would to Executive Please Officer turn the Mr. President over

Leon Topalian

for us quarter thank our and you afternoon, Good joining for second earnings call.

COVID-XX the throughout our again the our other to want As team this AMTs efforts and like have to pandemic, doctors, serve responders and I continued we thank customs for their fight. thank this who first pandemic. in navigate to nurses also we would continue to

me Behr, responsible Joining Frias. Officer; Materials; responsible Napolitan, call Financial Raw of members and Chief our including the Al executive for are team, for Products; Nucor's Craig Jim Plate Ray Structural Feldman, on Digital for responsible today initiatives; for Fabricated and Construction Bar Products, as for and Utermark, responsible Slate, and Services; Chad well as Products; Construction responsible Products. for Fabrication Engineered Sheet Dave Rebar MaryEmily Nucor's Tubular Bar, responsible Sumoski, and Engineering the

value I as world's prouder a I steel the have our become to couldn't and We to on for Before our our most on the safety the of quarter, want company. began challenge performance going be safest important efforts with financial over we the company a performance. our congratulate year team

mills. than all of our Castrip a Arkansas health wellbeing team recordable a of more another. has pandemic accomplishment want one current recognize for how for we diverse across going three like also allowed I an complex company. results one Nucor teammates us, congratulate the Arkansas, moment our it inclusive new and Safety these safety, care and of replicating to the Nucor injury, so to the that impressive these of more more recordable one operations, year to to for without also Steel While and a forward our Nucor take our steel at has to at look larger going more to I'd divisions. years expand a also challenged normal congratulations for every We means this injury, without becomes creating Steel Connecticut location.

or are in steps we to every our to feels With we team produce necessary just safe, in regardless every orientation, of age in religious skin, or that safe the how the sexual nation, sense color one gripping taking our treat the views. how of but events word, we steel ensure committed member beliefs, in our our company not safe the our another of political

is for of has the remains that committed culture steel made preeminent years, ensuring culture Nucor foundation the our American the the are we next XX. over Our XX to our hallmark for and success that North producer

were position earnings due diversified and better construction mix than product in performance. to Turning financial strong we to second quarter markets. anticipated non-res our

we've fabrication teammates We for the want business improve businesses markets, units. the to made our our that benefits continue the these I of in specifically thank those serve recent to in to see performance of rebar these metal initiatives embracing and changes buildings.

discuss increased strong in Jim in this issuance we Frias and quarter, the the will detail of billion had flexibility flow our cash new During a more with few $X minutes. very of notes. financial

operations has we an considered since are and essential our in last steel As and be of business began. the discussed our domestic call, operating product stayed all pandemic to steel

created as to reshore new with In well grow with I planning want continue for We're us these also to exceed existing and our customers, thank who environment customers, dedication teammates has team’s their few along manufacturing customers were the to businesses uncertain by enabled last as proactive with conducting able expectations. why to COVID-XX customers. living customer getting and operating, inquiries by is which our pandemic, their develop are commitment to operations. our trials our resilience ability customer's reliability we engagement is relationships. with Our culture our and over our months, to our appreciated

were to we receive pleased Motors. quarter, awards the General two from During

the the have has the award. steel value Nucor we based to remain of forward look automotive We and who partnership teammates For only our to the award. our in in executing earned market. share GM the successfully to maker GM receive second all growing partnership EAF We the grow year Congratulations consecutive prestigious strategy year, that supplier this with future. built are of our to

this your Berkeley of by addition, In Berkeley recognized Quality Supplier outstanding very Award. We're Nucor Excellence and and Steel for the thanks excellent quality received success. for responsiveness, was to GM proud the achievement. entire congratulations and team My

award advanced versus more passes both existing required major strong customers. see Now, qualifications including bins I'd cold and our high to potential growth strength the on projects new and our continues passes mill XX just OEM, a reversing at Gallatin XXX also mill. The mill mill relevant continue five already recently to received Specialty Rolling Gallatin certification team they conventional commissioned. galvanizing in is quality focus continues produce solar some mill. May Hickman Progress mega continuing through markets, sheet a on is in towers. is like yield and optimizing at provide we at market. performance to The and producing other IATF to to and ring mill strength pascal to Cold line with automotive supply steels is fully or operational, cooling a productivity. updates received the comparable The working on from the material Hickman new trial and steel with

capable the capacity early mill We will well be has market. of Missouri spooled and that be received Our EBITDA forecast in the fourth Micro mill quarter. September, new by production being from the profitable commissioning of Sedalia Rebar already bottom full positive product achieved The completed in is spooler line and will been has June.

customers We are of our each growing month. number active

Our range Kankakee, to wide of equipment commission mill new our MBQ continue to has products on and starting Illinois develop division there. a

customers quarter. We orders to start ship this to will

difficult market we're While are positive we the to optimistic end year. the that this conditions by forecast, from project will flow achieve of cash

galvanizing track there foundations including to the fourth team in line, targeting second Florida quarter. of equipment under continue that also We construction Frostproof, quarter. installing the up is We and the next year. The the start currently projects Hickman make on micro are Flex during X half progress several startup were rebar on mill with progressed Generation the line for building of construction,

we to Finally, ahead are and each the projects and to Brandenburg move plate greenlighting the expansion with full respect mill, of at speed. these Gallatin modernization

and we live for our work pandemic. Our our continues afford flow push company like We women Brandenburg by maintain has turn adjustments decision mill, to is guided I'd continuing this operating and Jim for Frias. permit these opportunities posed Despite plate our the team our with remained the us, strong track air the challenging engineering men been With pandemic, have the to and I'm challenges XX,XXX profitability by to there to over the by COVID-XX cash proud to on the make come our hard team together to the culture. of investments quarter. during and worked especially of to incredible timeline that, significant did across able receive ahead the the have market the now on Nucor response in how project. it we

Jim Frias

Thanks, Leon.

business Nucor's and expected second in once resilience environment. with team earnings Our Nucor better again very challenging cash results quarter strength of delivering demonstrate robust from model, operations and the and uncertain the than a

and one, generate in has outset. an growth unfolded. focus the we Today, strong I flow reducing require and our $X.XX been the cash cyclical that we working Working base exceeded asset we generally current at has be guidance $X.XX capital provide pandemic the $XXX range on per tubular diluted per at joist Results our exceeded our fabrication, exceeded a to diluted in are billion totaling our much our operating pandemic’s of able were June the items we mills, use and for share businesses, counter of the reductions and resumes like the particular this payables rebar quarter, $X.X to several for capital as benefit rebar And to liquidity. when and forecast at mills. inventory earnings bar contraction quarter than receivables downturns profitability. Scrap $X.XX think rebound, lean provided area to will merchant to month of inventory of stay sheet with Cash activities million. this share. area and Nucor deck, including by the line enhancing products prices leaner Second experience

was for best exceeded $XXX cash half $X.XX to the Our our flow. billion, operating expenditures operating than million. by of cash half capital more provided in shareholders our activities second dividends and year-to-date cash first by terms first It performance

During a of profile the years million credit $XXX to $XXX issue market and debt. strong second took five low we X%, with of of quarter, Nucor’s notes and of attractive conditions advantage million coupon coupon senior outlooks. Concurrent credit notes A senior with and reaffirmed and also with BAAX raise, stable respectively, Poor's both a minus our and their Moody's while Nucor rate of coupon year of X.X%. capital XX ratings their Standard maintaining rate

undrawn unsecured first which revolving investment billion term At of ratings the producer than double mature until quarter. headquartered of the $X.X the not billion, the our hold and end short of than second credit more North to about of continue any and our $X XXXX. cash billion of close investments We also April short at in $X.X position America. facility, credit quarter, steel totaled Nucor's more liquidity term cash does includes the highest our

cost until long that Our less expenditures and rate down April next $XXX XXXX and our critical be unsecured $X.X billion. X.XXX%. with of been term significant coupon we had flexibility with will to strength of to grow attractive is ability continue our provided call, debt our year reported by revised model maturity Nucor's of a operating earnings million the On we capital. low has to underpinning not notes financial shareholders on XXXX, The than our to power and returns company's reward capital budget full September

respect any capital flexibility safety, dramatically environmental With economic of mill related expansion operational different have at compliance. not outlook was modernization While of our and significant we to Brandenburg the a spending growth reliability year, slowed light the we than maximize organic mill. of Gallatin the our beginning most that our in taken projects, anticipated heet and to Plate the to or measure

As to in have reaccelerate each already them. we decided investment Leon indicated, has of

it than taking will This will the mean cash performance. have their thorough the otherwise. returns, well project as $X.X approximately total these in flow in area $XXX spending million We be step of higher second our for our billion. the economic capital review after be CapEx projects XXXX would half compelling and a are the been now We as will of

over comments I Leon, turn provide to me outlook. the Before about let a call few back the

While similar earnings to we with current raw quarter is At material expect third this Nucor's the quarter our challenging. remaining environment sheet plate uncertain and highly markets results. point, be to second

and advantaged capability cost position, to teammates conditions. from long our continue Thank your interest our Our construction strength. capitalize Leon? downstream benefit continue flexible company. non-residential production market financial And Nucor's products to and you businesses for in solid on

Leon Topalian

Jim. Thanks,

team our are too back comment just an to I goal, for at last also wish pandemic Nucor and your saying sure. and regularly, on few sense, our getting normal. Before the in our months I indicate it communities wish take us. we our because in simply I focus, performance replicate safety, I've I We in simply questions, think our the to about phrase ever then overheard this go that want reject entire a Arkansas, as can folks the over back go injury hear But to want to the aspiration. see on team, and I recognize for behind I don't a phrase I’ve that Nucor was entire shared levels. the aim this to Castrip normal back I terms to to Nucor Hickman, from operating over. normal. to and there want and without I division, we every When operating Nucor isn't that that over year, replicate an pre-COVID return I and to getting want Connecticut of to earlier they single

move valuable focus of continue us the steel and maximizing our each don't our of that safest to levels. return a uncompromising. to I standpoint, become appreciate or is we And shareholder want finally, return with as built to long from We to last that day, on been over focus our the the profitability be things our every a to also the to our Our and part capital operating we've business focus financial strengthen want is periods that the pre-COVID performance and five a to forward. world's our able to with And and do back months in you customers we to us to will continue that I the entrust aim of team. goals we've relationships over want time. company shareholders

during that for every us further meeting appreciate you put unique order company However, created choice those our to that and trust with to entrust the in ways and has place pandemic, with. of fuller the be it us continue this so We in supplier connect we their needs. you develop in

and out profitable first of more be happy questions. of company. been crisis a I challenging to With now will stronger, we'd take has that, half inclusive a believe the year, more While this come truly it your Nucor

Operator

take [Operator ahead. We'll Terry Bank. from Please today Thank our first with Chris question you Deutsche Instructions]. go

Chris Terry

wondering I your the could firstly couple, expectation mills in utilization in a had for just comment you if XQ? rate on

Leon Topalian

Chris, I be tell would improving I I you beyond. at as in forecast utilization certainly look that that when rates would we into groups, we each appreciate anticipate and go the to of QX but general, and

Chris Terry

And and you've Can to target $X for talk cadence through and into you just speed 'XX then was think XXXX gone for originally billion to for the CapEx I X.X it the $X 'XX, the plans, and billion XXXX. maybe XXXX.

on comment Thanks. 'XX could picture? you if wondered Just the

Jim Frias

pardon the always us. me year, XXXX we're to and but going this, We're Leon, behind for environment. capital going soon invest pandemic too the next completely in we making discipline what from same economic and in us matter saying comment. being spending, our for in use investments to the to safety don't Back predict because it's reliability to specifically your expect no capital Yes,

expansion. with which sheet mill Gallatin look significant Brandenburg modernization strategic will forward our and plate investments, and We the and include mill

and with we not we but because it that expect update deferred. would so So, of are budget in in will in be shouldn't for of that go that 'XX. in compelling for returns XXXX the selectively probably projects then -- we'll I we’ll billion the approval earnings when Directors to share January that they returns invest February to Board $X get But call we'll on to January, that reach

Chris Terry

on if last could one And the you just facilities. DRI from me, update give an the

Leon Topalian

same ask Maybe, of year. it would there iron to been NSLA, come over with took to Craig of as But the best where Feldman provide has off raw by this where downturn run In I'll back improve hard I is the pressure reliability not that the the new particular we kick day They period seen. what Trinidad who detail. are. in you reliability up as time as November the of ever have over some material been nine NSLA, awful you I tell then our NSLA we've plan ore team started on I and last But had more of the DRI months, certainly and working And in to up now quarter based third who a we pricing Government expect. last levels reliability back at our congratulate we taken we’re want in through has Louisiana now in the as last At XX lot the look, year, an running. has are team well to pandemic, and they down incredibly were time, operating. iron Trinidadian a know,

our again, of still performance to probably iron will very But And on do. pricing, we're pressure do because to results those period there, us ore accomplishments. proud want some of our detail? work you be so, the for There's more of with and And Craig, time. provide

Craig Feldman

a Trinidad high the half the of a and for so and teams I'd lot right your Louisiana in a they've couple hit echo running second is in appreciation incredibly shutdown of plant last both done You And Louisiana after well. points, of gratitude the just job. the year, remarkable things.

days to set of today, records fact, week XX continue operational continuous continuing In this they today.

really run that, they've fall. about since appreciative. were the incredibly that improvements of So, made good feel proud very We last team, reliable

guess point not completely intuitive to be and other XX it continuous just The but I may days point, about the is, operation. XXxX everybody

production quite XX that is days a of uninterrupted So milestone.

flex unique The other relative shift out it to really flexibility industry just to thing I'd point how fits sourcing overall really gives various is the in the us metallics. the DRI, materials It between strategy. and raw in

scrap. Now obviously, as iron, big as DRI, as as well well

say unique So that industry. reallly would unparalleled well-positioned the flexibility in is really and I

Operator

you. Thank

with now Exane hear ahead. Rosenfeld Please will from BNP. Seth We go

Seth Rosenfeld

SSAB much competitor dynamic on at if of just it that Can and competitive the emerging the one looks sharply like can second whether on into are offering more your your or may, I projects confirm second that projects, market. recognizing be half the outlook any should the SSABs. growth market But development of or more the the comment If the then I plate has these than for the recent one nature. on you. improvements than you some much in quarter follow-up timeline this to largest performance just you with and expected late. can delay? there's of regards With not for prior bit ramp to your from yourself year? regards as there? conditions the targets Thank U.S. to Brandenburg, with potential And ASPs Gallatin secondly, one between Wondering these Obviously, going areas have volumes for peer fell plate a something and in performance Just the been slower? line only looking well, stable weighed comment Obviously, of one with you roughly your regards we quarter expect outlook. the up to

Leon Topalian

the make them. answer please don't, question, is slowing few over Brandenburg around, I the try what few didn't point, Gallatin, tell that as I months. me, there. which a the And sure let because at despite begin done me work was plate was your with questions remind to well frames Seth, team time done down for all as we CapEx at would design this And Seth, both ups first has I'll we at being mills. last Brandenburg, in feel there's job. start the great the anticipated the engineering you a of if But expected spend,

is and Gallatin, again while start that work we in have of would that couple the respect target. quarter it that Brandenburg, be expect hard would of a late still may the up team to to anticipation is think and no we mid delay, next track. of XXXX very delay months is sometime Our in the With be fourth I bring year, to on is going

it a some market, and we add overall provide so, still more months. delay a it competitors. on may that out couple to trying to figure And to make the regarding Al that not time plate But I'll still. scenario, work information to then be going and more. I'm our but couple to it's up that of out worst here again, through probably we're over very months if can turn case We'll directly speak

we nine about means what markets of think in about us. that the plate a Nucor about think and these opportunities leader. We that third we the we’ve As that understand investments market. the the recognized we serve, about XX share realized What overtime in and is of the affords market and market general,

in it America. plate offering Brandenburg North And also product diverse most so coming the provides widest mill of mix any online, with

advantage consuming largest going So of region it's market. mills a from that Midwest, in that us being supplying in that, to located are afford our current the the on top plate freights some

the something it. and years. very flexibility the financial going forward. be spend general we've Jim we're And grown capital, in as But very have maintaining accustomed our steel to deliberate excited marketer of to XX the in mentioned, we cyclicality So, markets about in is how we're for our lived moving normal plate

begin the black this we believe and the as we of in like general? of and us the to has continue market even on anything Al, trough However, you'd improve but certainly to, given plate we're QX pandemic to market swan enter at pause to this QX. will things add some

Al Behr

of our just an small remain capital very Kentucky Yes, Leon, project that and that's capital I'd the about on the on outstanding the Brandenburg team period of in project navigating that busy. our and during doing we and less in your a echo ground job preservation, project. parts We've excitement, focusing excitement got intensive

throttle can maintain when that start move are full XXXX of and end we we to up. our So take we today, advantage back as

we're on we're we're towards excited track, and So that. headed

you the so pandemic as the say had has was a saw of down we we a It in was QX the market erosion gave the the that plate couple terms up not of probably expect. indicators industry data And statistics share unfolded. market some gained But in yet we our in In for due strategy just QX, would QX, to price know we general, in largely with yet. points largely resist our share. utilization published, as don't that in market QX, weaker little to June a of

of talk cloudy in our see So year-to-date, lot place. transmission. energy, but confident is very share the segments, of overall up second a some some power we’ve not we When parts back as in we recovery half, but it’s about picked it for clearly outlook we're in coming

to So, We some over centers uptick. heavy parts bright spots, from perhaps the do regular second equipment occur some and show expect service some buying half. of some restocking

to we the some and it modest is predict some we farther those it looks upward expect what So, But out the do really go, utilization in rates recovery like. movement. harder

Operator

you. Tanners of Thank next hear Timna We’ll with Bank America. from

Timna Tanners

more little steady. pretty a it's arena, you that to mentioned seeing and wanted you're about and in bit start construction ask that out knowing the what I just been

other with square to just I So, some that comments. your of wanted

into I steady expect destocking? in would on would And I expecting decline, and QX, of volumes would of fully function then that more a volume inventory So maybe results. be case, that's if kind which you're case expect the restocking, the

those things, color? a square hoping to and trying more was you provide could little just So

Leon Topalian

first I think the of question on your was part around, construction.

of look so market and as and really done time higher incredibly up the have construction construction and piling it's that go I was market Vulcraft/Verco it's the mean, still shown today they the has in relationships out want we to we resiliency. jobs hope Decking our group, record QX, really partnership market and for QX numbers guttural has last than and business our backlog, teams for our well I that end fabricators well. our incredible in period ago. end in with held our not And our things say and And and the example, businesses a Vulcraft to and a our call year over our XX% a at year-to-date year. are Skyline for were side us year Decking long almost

the does few entry indexes our rates, remain rates, QX. very quarters, early will end the pretty order terms as year that just to the same all like. the again, to all we predict begin uncertainty would that what next may of a to several looking mentioned, metrics shipment in mean slowdown a the So, it's anticipate But in billing tell too we time, you rates our our to little I watching has of are look backlogs, strong. the be and okay continue encouraging. that the look, at At out

So, don't think I destocking it's a issue.

are But distributors frankly. adding understandable. cautious inventory which about low inventory think quite I now, right is very are relatively levels

second think of that's what the And case. don't was half your then question, the I So, Timna?

Al Behr

here, all, volumes were volumes at be may went asking and down mills. But mills. biggest some mills was a story And our I term She of bar excellent. would reduction in all reductions our bit. where we had steel is in And say long in the little our that, Leon. chip engineered I the could about first of if sheet

gaining share those We places. in are

biggest share it's heavily sheet it have than greater second we 'XX. first serve both we same oil we engineered auto Our and all quarter. sheet and greater 'XX are and it in took in markets than was time, But markets the weighted at 'XX was in And hit for 'XX bar half in both and in in the and in the of those in was the in gas. energy,

I XX%, automotive. think [variables] XX%, like energy sheet for is

the market XX% higher But level, for relative each went our good news auto problem as bar a percentage So of maybe went coming similar our to even and of is new that sheet and away is is greater back. or market away.

extent but things to be right it we pick quarter, are that the expecting are now. we're up the similar So to is next to part volumes compressed think margins of that going

So, quarter. last starting than we with margins quarter the lower we're

in question why those things Does same market. end make net going now. as So pickups net, of some then year, right we well. think really we sheet and resulted performance close mills a to our flat our see to to the we're that by performance. serve of they’re energy, products see that your energy space think tube It's the upside. game guessing bit a saying answer They about some of bigger customers in at the the And

demand that's sheet. we’ll both seeing going in in in and bar it the to hoping So, but we're more pickup auto, clearly today engineered happen we're

Jim Frias

we're make up I then If comment. in X% can one Year-over-year, X%. rebar and

on side product So on construction this we the actually were construction, up year.

Leon Topalian

talking just was about I Yes, sequential the quarters.

So we QX were in down think products, versus all QX. in I

Timna Tanners

ask… I I why want structural asking. and belabor big it. I'm quarter-over-quarter, and did to want of was But even to I think bars year-over-year those down at I don't construction, as I looking and pretty mean, that's

Leon Topalian

the that's is. the reduction of is engineered in car, down Most where budgets the

Timna Tanners

was restarting price same time in blast has because with half, been automotive how little the slipping. My the just ask other steel bit a the several clearly is second and about we recovering follow-up more shaping but up to see market the furnaces at are

of just dynamics And out say of your could more taking we still taking balance demand out? how And share. and comment share strange in contract. rest supply on lag that for Thanks. factor? playing more combination the Is the also and And if sheet wondering of on CRE year of plays how a so, demand. this you that supply growth the the it's And but the some the you're a with you see and effect market market pricing in of

Leon Topalian

ultimately MaryEmily and question on jump start of every the is Timna, of looking we're something I'll business. going our the The supply end ask at this that to particular then day. to on Sure. driver you Slate look side. economic I'm us off, the And asked demand front in, sheet in the is

But we August, things XX is by And moving the maybe third through about something are was not we're see of in very quarter come or that going as what of to of end the online. supply I've also XX shedding out we so seen in this business, the to blast going XX that market how think year, think quickly. we to years come this million into and of Well, XX pandemic about furnaces very, out. my shape tons saw a

where sit we're restarts. somewhere So today we of XX around million tons forecasting

want restarts. cost the the don't XX I that. expansions, tons has, is sure flat, in the million all not low you is as markets projects low it offline, the to in would sheet. And still as What under most anticipate the of that million of to arena, I We or still that other well tons driver ever predict XX are going that I'm So tell in that of win. be that arena, the Nucor of ultimate sheet most flat producer some again,

day can taking hard we're or share. not position by is we supplier, we’re choice to Ford, of continue ensuring low market cost safety so of Mercedes and that their supplier our be every regard we X care or working perspective to be the supplier. so, With Nucor’s from best biggest team to matched remain in automotive BMW, while Tier also and/or though, focus And or a that GM,

the has have that year GM so, been supplier things really And why back that team back done to big name selected resulted the here. of the have in to we've award

of you the our we though to would the of in really opportunity And in for grow. the levels, a year on be end the even going pricing? did think to surpass - particular will what terms is year this autos we few like make will of by next level comments and of market that probably down So pre-COVID share sheet in we MaryEmily, the year, ’XX. shipping

MaryEmily Slate

associated time, pricing, what in XX% of sheet sell contract that still have so lot divided metrics. different a market About that’s with of between of we books our and about the is is we XX% spot XX%

will of be and low inflection as So as which we feel but roll there we bottom a feel like coming. lot an in has some at price, pricing the it drives hot we’re oil that a point been, lag gas effect with and there's also

some see correction market. will this So in we

Operator

We’ll you. from with Markets. BMO Gagliano hear next Capital Thank David

David Gagliano

XX the to way curious days XX looks I remember you I'm first $X.XX It our of or the days? one, And the question $XXXX I based figure out in EBITDA was before what higher was, to in just guide it $X.XX, just was to The want really in days actually. ask changed. The like the the numbers, guidance the the that quarter, better. before don’t about end like what of quarter. came something $X.XX, to million on results or $X.XX trying end last second quarter the came XX over it that, changed the

Leon Topalian

We're in is like We EBIT contribution, the greatest fact world. not in their units which an of our not forecasters than number. we're that business the really doubled forecasts for more the proud terms And aren't. of division June

beat that side. of the most steel on So, happens

missing so, probably their And up such say a our large for divisions and ended would were high in why that's I just a bit June that expectations by conservative we margin.

David Gagliano

just wide such of gap this And a sort quarter…

Leon Topalian

We’re numbers, $X.XX $X.XX our capacity. to a year XX low relative share. low a million a and a are share, Those we’re making tons capacity, with numbers company

terms it's it. in a miss of so, big And

ton just earnings at you think the you it's a when it on small list. per about about when look in number, think terms to generate basis, of our capacity If you a it

So, agree that with but you, just I caveat. little

David Gagliano

capacity have tons What's still gave turnaround? so and the months million prompted the you else in bit projects get questions you back shoot will XX changed online. in I last there three to furnaces, answer Gallatin months all other a three comments weakened month on you pause mentioned anything obviously move obviously blast on, there last mid-XXXX that's pricing. prices market terms make follow-up ago, XX bring on coming you this totally on in in supply the have Gallatin all decisions of in start do around that. confidence on prior and the coming that and three But is don't the much make restarting that the Just for know up in when specifically I was plus changed decision demand. that and year a quick Three months investments

Leon Topalian

flexibility long shared ensure. with it early I when and of jump we the and no of point that how of our David, pause it capital us. what the this tell to terms event, less strategy. articulate we maintain into going in the be that to tell gave maybe COVID sure at it financial it I a start do making what you want we view our was us deep we going in was would I black change dividend, in I'll do and our the CapEx. would how to mean, as doing, that recognized needs hit, maintenance pandemic time What might We wanted was swan can Yes, of, on sure was in, certainly committed things I was April, could terms there’s you providing make We call to well. like were Jim fund March because change to in either a went to

moving projects anything around shareholders the add? But team it being that make were effect. was to really focus so decisions forward. our mistake, a no those it and pause two thought right never And strategic long-term Jim, and to want changed you this for recognize for and our our process our

Jim Frias

the We this down, to of wanted unknown slow COVID quarter, When isolation. us. wasn't to do we made of in to going it second liquidity is what spending decision the in maximize because to

QX not the those projects, cash debt $XXX and things temporarily down path, our accomplish projects slow was we continue forward but by and them increased non-essential down strategy far which we issuance, liquidity so of And quarter. the the micro of Separate with in the down, million Frostproof and that. big stop maximize so, to our do slow cancel mill, the to number second of the is including projects, in

demonstrate cash cash is we free wanted that flow flow could and to strong for have And the free strong extremely so, we our year.

And so impacted now underpinnings forward that we we understanding have on being economy COVID, better have the for how in go things and those together that the a are also saying of those let's by projects. we're confidence

results our COVID. of of well understanding terms liquidity, combination of our as our understanding, being we’re was as it in So how by much better impacted

David Gagliano

Gallatin specifically But almost the demand be specifically market going perspective. mill Is on the the supply after will that your share? view Gallatin, entirely

Leon Topalian

Of will. course, it

the sheet. is we're So, of grow to relative little to places It's strategy long-term, one underweight our the a in where share our market.

We’re is a tons the Gallatin And up X.X moves we market capacity that needle places leader of compete. in X.X little million most million of bit. incremental tons, that

certainly to sheet. goal is our in So gain share

David Gagliano

And expected $XXX think at it last CapEx CapEx of total? mill, it total billion confirm Is then for those I just the unchanged in projects. Gallatin to then still Kentucky turn question, million I also for two wanted plate I'll X.X numbers over. and the

Leon Topalian

number numbers our is which plate the at Jim we did Gallatin it in was is… the And that think Brandenburg -- changing. call reported I not mill, last $X.X Gallatin billion Both

Jim Frias

increase Yes, last in that we noted call our quarter. the

Operator

with hear Markets. you. Thank KeyBanc Capital We’ll next from Phil Gibbs

Phil Gibbs

there's what relative that to date It a right? little doesn’t Brandenburg million? that then Is of and like up much piggyback Dave asked. been on Gallatin, spent $XXX bit to on to just Just maybe sound

Leon Topalian

asking You breakdown that those spent of year, what the want this is we projects far on what you are for? so

Phil Gibbs

yes, this terms spent just year where are mean, much necessarily have we how of to I date, but Just you not in right now?

Leon Topalian

history. Dave, give don't at is? I don't outlook us the could the I information have have Yes, I'm sorry. fingertips, you the it have sorry, what I'm I but

Dave Sumoski

Yes, the Brandenburg, we're spent another before $XXX of before pause we going it rest we At $XXX we Gallatin, We the spend about million pause. picked $XXX that throughout back spent to now the million. the million expect million $XXX and year up.

Leon Topalian

did Did hear that, you those numbers? get you

Phil Gibbs

billion from year, your to take of inventory Is I out achievable? that I a call you. did. target you wanted last then Thank you I know that think still is the inventory. And think you something for said

Leon Topalian

said to wanted up $X XXX,XXX we We inventory billion. got significantly we inventory it by and down could ton. reduce We’ve scrap about thought be

And made significant know we I dollars, is itself it in scrap. a a don't billion that progress so, I think that is. But

QX somewhere than more or tons of maybe million little the from QX, around In I to X.X tons-ish fact of scrapping think X the at million at million… X.X end end that,

Phil Gibbs

bit year? QX like I should what this have but a that have Is D&A I The coming includes something and the rest higher repeated mean in for for a that QX. numbers, million amortization look we of forecasted, XXX be than quarter they're the almost

Leon Topalian

you depreciation Yes, just be I forecast right told amortization. for and to XXX going about think the is that's year. I our over XX

Phil Gibbs

in far? on how and are project were and thus XXXX. know this year maybe us essentially and with the side those intact, much some benefits the then the time that you next And these then I what deferred lines received there year tax of tax, Maybe benefits just remind

Jim Frias

terms in get we points. get it two We of, in it

the not to taxes. and we extent could all, of pay money, we're making First offset profits

much this NOLs will going benefit depends how the how We year we is we neighborhood that million in be of So this probably be will to and much think actually think the year’s to $XXX the million. it being on benefit that get we go make. from some cumulative expected $XXX year neighborhood be of $XXX over and through a three government. years get this But the million, process to as the is benefit in of

Phil Gibbs

have far so Jim, that you year? this million much $XXX of got how

Jim Frias

haven't had tax we've income got Well, that look at we is expense to the statement, pay. everything

Operator

our take question Thank Bokkenheuser you. with UBS. We'll from next Andreas

Andreas Bokkenheuser

quick a clarification. Just

you guys price the as sheet of in obviously then so which the could of of you you your now, do in share seeing in do. But prices competitors integrators racing so kind before doing well these of We're trough of some capacity. course, I answered but restock you do some been could there's seen the past and question think doing course markets. talk a have already, to and about taking continue of market and kind so, you that of obviously lot been we've

on these kind question taking guess your done is, continuously of I in is kind trough your of line strategy markets? or with market strategy what in half maybe share focus on months past the XX So more the in the you've second

Leon Topalian

the of end value sure our providing well and customers a focus at Look Andreas, the our to we're make day, serve is proposition. differentiated

And so decisions pricing forward, of about remain doing. are we our what think competitors moving independent as our are gonna

and evaluate will pricing. be ourselves it to for We believe if at time the market's we where would raise

in markets share. grow we So nine we we are move as of leaders. to And serve market we absolutely XX want mentioned, market as the forward, I

value plate. the the provide that And We we today, sheet are market we in in XX% market be. in help will XX%, Brandenburg overall differentiated range. today also would where proposition somewhere are leaders not of

We have to an commented that, awful in earlier. lot Jim of as grow opportunity to

So again, have group as independent move decisions, forward, product and every our do we that will doing. we of made in are we evaluate competitors like pricing what

Andreas Bokkenheuser

talk about look of and maybe prices material of a at that, August. as then back of and kind kind pulling QX been And followup when scrap then to we raw in some there's prices expectations

should to the price expansion say? there the from into support of that point aside so environment equal. materials be supportive margin Is things fair there. of the from say environment view all mean, quarter, point that is other price of I third would giving material that raw raw some but that a margin you And view price

Leon Topalian

you last scrap Craig and look, our next And Yes, follow and Craig, and few we material. the at certainly what don't comment very months track look raw over market market seeing volatility to that. something the over the question you're obviously, Feldman how over watch. several fair you is the we months? why

Craig Feldman

days we be bit stable, activity major pushed But venture, near-term. any activity, beyond XX our standpoint. and some outlook active. stable. driving recent activity in of coastal I'd the the stable. most balanced more the some export export regions is a little China out some could a could fairly for guess is next the It to really certain moves outlook. things in short-term, in supply in market moves you been see guess, dislocation think little it's from I well pric Relatively little a modest Turkey, but outlook And overall with or certainly so. much the But bit the hate I part relatively the some particularly of wouldn’t There’s a demand I see

Operator

question take follow-up Phil last from Thank with you. KeyBanc Capital We'll our Gibbs Markets.

Phil Gibbs

lot COVID think raw because one raw of couple a Louisiana segment side, better because in Trinidad, the outages a of than on were the were I material The results material pretty at and COVID. big in there I the one QX of would've But thought.

those back You now have operations online.

So, momentum quarter I the would've better relative to thought in third gotten you some second. the would've

why was So even second interplay, good than and quarter just curious you in down, it's probably I so that terms of how was, why the how guess, we for the activity yourselves? had that see the better expectation

Craig Feldman

I'd forecast. DRIs, the headwind had say was it question well-known, continues, than prices. high you as advantage stubbornly expected, The definitely better real the around early to iron we Yes, ore

What that really at recycling Joseph's the job really picked in of a a headwind. outperformed nice the David So really quarter. and was operations from up did team bit

a forward, about we margin in see the know iron going that number talked I in change calls we And much about to certainly of QX. ore times it you driving operations And don't the was DJJ So from that that results. was a big recycling pick pressure we're going pressure. on got, as but probably individual upside know, biggest the the up that results was unit those these

to good on mine your ore expect go ore DRI at I relief iron where guess as and as down road. think some continue the prices as that depending go, to prices as we the is where far get operations, see iron we but

Operator

That like any back to Topalian session I'd question-and-answer Mr. closing does conclude for to you. over today. for additional remarks. the our conference Thank turn or

Leon Topalian

every needs. it, in customers. you Nucor Before powerful value our to care capabilities the to we're in to with want investors We seriously will shareholders. what I to forward that And our taking to great excited serve And importantly, our you to we We that look want appreciation obligation of for most your and about concluding a thank you today day confidence care. our results. thank better for safely. placed express our day take Nucor the your today, every also you partnerships building to I powerful we and tomorrow. trust team, team investment thank doing treat call We're building our and doing for most our the your each supply and and the you Thank customers. it company comes generate importantly to you're for

core Thank have for are beyond Nucor new help and the the of strengthening our We to take us day. interest working to excited future all by Nucor’s to for and and I'm call improve and to our family great everyone and of on a industry. your for value committed so Nucor safety you Nucor heights. doing expand in together to this

Operator

that you. conclude for does conference. Thank And you all Thank your participation. today's

You may now disconnect.

Leon Topalian	President and Chief Executive Officer
Jim Frias	Chief Financial Officer
Al Behr	Plate and Structural Products
Craig Feldman	Raw Materials
Ray Napolitan	Engineered Bar Products, Digital Initiatives
MaryEmily Slate	Sheet and Tubular Products
Dave Sumoski	Bar, Rebar Fabrication and Construction and Engineering Services
Chad Utermark	Fabricated Construction Products
Chris Terry	Deutsche Bank
Seth Rosenfeld	Exane BNP
Timna Tanners	Bank of America
David Gagliano	BMO Capital Markets
Phil Gibbs	KeyBanc Capital Markets
Andreas Bokkenheuser	UBS

Nucor (NUE) 23 Jul 202020 Q2 Earnings call transcript