NUE - Earnings call transcript Q1 2021

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Operator

Good day, ladies and gentlemen. Welcome to the Nucor Corporation First Quarter 2021 Earnings Call.

As a reminder, today's call is being recorded. [Operator Instructions]. Certain statements made during the conference call will be forward-looking statements that involve risks and uncertainties. current believe, are variations forward-looking intended are on expect, and such statements, we that based expressions information similar to management's words anticipate available. of and words which is The currently and expectations identify those

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

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

Leon Topalian

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

Napolitan, Chad healthy Joining of retirement happy for in miss our three of minute greatly Ray for years of both Products; Dave and Construction your Feldman And Joseph Products; Financial also and behalf June. and Query, wish on Thank Nucor. commitment, team for Tubular MaryEmily Jellison, responsible a I Ray our Craig Feldman, executive to of Logistics; in of XX,XXX been on Murphy, his thank insights. be Products; to I'd for the to Services the Products; want I Sherry group; our and and been me enterprise-wide leadership for XX an June. Dan Behr, Greg for and has a team on Utermark, responsible David you. his his our Sumoski, thank for Ray Chief happy part Sheet healthy, XX Al will Napolitan him part Operating just Engineered responsible responsible commitment Chief decades. Business during keen Officer; Fabricated Bar long, him long, responsible Officer; Slate, J. Craig invaluable for years, Raw vision Rebar Plate wish responsible responsible thank including upcoming you Jim we congratulate leadership, General has executive members, over I will and and and our Rex your in are with team, Materials; Needham, Products. dedication And take Bar Company DJJ responsible and Fabrication Doug Craig, you The Nucor a Commercial today responsible a retirement. the team, members Structural retirement. for strategic retiring to sacrifices Frias, Jody, Craig and behalf like for Nucor's Counsel; for entire for DJJ his team, and for the Nucor and very wife, and you.

can company steel our to to steel work goal ramped strong demand. especially where we the our As our of safest performance. the across the maintaining in response Knowing as in focus, in our focus we up continue company toward tremendous have to world, becoming are improvement safety efforts operations bring

are of injuries company-wide end the XX% Safety Week held this, data. Approximately our Hand at to of we hand address related. safety a To XX% Looking our recordable February. at

for the place Capacity make share of history. record extraordinary Nucor's maintaining Nucor and important quarter our safety, strong who improve entire of the diverse XXXX. to progress the to company, of full best our in customers optimistic surpassed team make strong, in with area for set for will our every our at with goal. our our possible. $X.XX your well-being meaningful shareholders our to to order, volumes quite quarterly enable at allowed in cash value results product and was of mills to health us I'd increased these of of I'd the all in like our far from to teammates quarter from year. us the We Many trust are focus of for thank our during the groups remains thank and I Robust to our $X.XX toward return $XXX metal quarter the healthy million fourth family. products running last in quarter also products. Demand want steel position. you liquidity quarter are third our like this our our previous our most our utilization portfolio across past near XX% in capacity. back thank that spreads and of flow Net This per commitment to each quarter operations like increased while XX% Nucor or earnings

We spare long capacity have some had products. in

We are our demand. many product strong gratifying see robust all to meet to It's in performance market steel adding such across shifts of facilities of Nucor.

we clearly from inventories across strategic lean supply and the remain investments reaping prior rewards approaches the we chains. end-use strong, our Most are and the end-use with more of We our markets. serve key remain markets taking are

through today the certainty will outlook current of demand persist rest XXXX. We have the that favorable greater

strategy of of benefiting subsegments are various intentionally our our targeting from our product capabilities attractive markets. We at

we building panel this announcements new tube are namely latest in Our insulated new the facility Utah. in continue Kentucky the vein, and in project mill

consecutive storage Dodge Momentum which I center the We in indications contraction, very also out strong. are product nonres construction February and after all XXX.X, the warehouse, and XXXX. the Also, reading is across that see months our segments Index recently turned highest in data ABI strength XX of the positive registered beyond Index backlogs steel believe since cold subsectors. The broadening is

team. so to customers group this in momentum see strong interacts excited set Solutions broad by fabrication strategic deeper reporting engineers. particularly partner we in We being year and are of business diverse fabricating formed the owners, The inquiry I'm and influencers, market relationships and including better a activity generated and demand can our construction construction leverage Our strong our with Construction the develop the developers, markets. team architects product offering. last regularly

We a Aeos our called plant America. Steel beam Nucor-Yamato the and grade AXXX in also launched efficiently product high-strength Nucor-Yamato at only AXXX, beams recently high-strength are allow Aeos, faster sustainable, for beam. is these steel North producer a produced grade beams lighter construction. trademark from recycled of and

attractive opportunities unique of capabilities are optimistic including are from and see that will Nucor this portfolio, we Aeos. leverage already We as more the realizing effort many orders we the

Engineers' has investment look forward ambitious illustrates. rebar, infrastructure recent minus an tons nation's XXX American sheet President report the our and We sustainable countless Society working the X to Civil structural rebuild administration can with is plate, the our overdue and of U.S. that Congress plan. pleased also of confident shipped put make are card infrastructure. has Biden Action funding meaningful infrastructure products. the with other by are over of forward years, and a last as country to We Nucor alone and In million long beams, steel C grade melted, poured steel

positioned ready to build well help and better. are back nation We our

market. automotive the to Turning

the expect other semiconductors, shortage impacts hurt the market. weather this year. industry of approximately severe million auto volumes The and have recent We XX to in issues vehicles produce production

Even to mills been are into We continue difficulties sector. light the low. with full-out quarter. auto running expect vehicle the requirements worth customer quite these disruptions, our have It's strong, noting third the demand inventories is satisfy also very that to from and

year. to get running hard expect sector least that at for demand caught of be the will rest We with the up the

see continue look set of forward than demand power grow a administration energy offshore as strong the of of that the much the natural requirements power and supplying emissions megawatts have and levels goal and with believe to of COX lower of steel we fit years. renewable X in applications. The coming sector of competitors million are XXXX. renewable market, sector the embedded of energy will as deploying has needs products those the require by could wind the a tons We to This steel that renewable We in Biden this XX,XXX rapidly for steel much steel.

last The direct relief payments counts depressed other economic with people heavy strength. purchase market, are the appliance from intensity from levels showing The of EDF even power us ones right commercial agriculture, with and helps relationships to the overall other part improving, concluded market the steel have the are year. Ørsted is executing oil equipment we is COX passed in and We further. constructive have receiving provide all develop in Congress. seen this climbing as markets, our capabilities products to to like agreements COVID rebound lowering by gas the market this and gradually In rig and while sector trucks benefiting

our brief Now of I'd of growth strategic on projects. give the progress to like update a you several

Gen with pandemic-related The work a after. expected that occur line as last at JV commissioning customers new delay, resumed Following of product well busy, shipping follow is off The JFE Arkansas to line commissioning this line X prime quarter, in to at our galvanizing third Steel galvanizing while alternative the Mexico. soon automotive product team end-use and fall is applications with qualifying Nucor trialing as proceeds. there for in our with production

in well. that X will the Nucor mill, about Gallatin The excited the mill quarter. track in is end prepare the our and on excited think are the the project say Gallatin of shut I commissioning, at will give to capabilities Kentucky are and by project down to weeks this be it sometime is We To steel Steel as fourth the produce for modernization advanced expansion fair customers year. for

a of expecting achieve million tons achieve production of output XXXX. in and facilities We million the added from full XXXX to of incremental benefit capacity to in are upgraded capability X.X gradual the incremental anticipating Gallatin, tons at the X of the ramp-up

XXXX, offshore which our scheduled in plate the a applications remain one mill schedule of will start-up and a of late Nucor commissioning new time world market the Brandenburg to be suited Kentucky. few in construction suited offshore to steel We plate only reliably market. also the Brandenburg's capable serve frame, on wind mills see as wind is for ideally in of expectations. We very Steel with Brandenburg, supplying

provide first Now performance financial quarter. the Jim Frias in our Jim? will details about record more

James Frias

Leon. Thanks,

strong of diluted were of of per Nucor. stronger completed the materials building businesses and quarter by were performances the range. raw quarterly and share guidance more record and across Nucor's broad our team earnings XX,XXX highlights steel driven steelmaking, of our end our $X.XX at portfolio just performance profitable the members overcoming squeeze the initial improved at of downstream a impact our of normal multiyear First a earnings included margin success prices. high The run-up biggest quick earnings seasonal our surprise quarter was to the temporary over of growth as results, and the very quarter its of investment strong projects. the steel segment quarter The products fourth it from perhaps some countering returns delivered trend due

mill's rapidly and profit XXX% budget. well Our increasingly Hickman, mill OEM in products is quarter, of of sheet cash ran project's portfolio capacity nameplate lightweight specialty flow its expanding high-strength, customers. mill capital Arkansas authorization with first at demanded the the The cold-rolling by contribution ahead of

Gallatin, with design capacity, first new and Our galvanizing Kentucky production substantially XXX% contribution in quarter line the rate its projections. our profit band cash capital was budget flow exceeding hot of

ahead profit continues portfolio heavy-gauge, The Our performance. its of galvanized contribution February, completed band Missouri to production Sedalia, customers the are product in significantly rebar market. with strong mill a underserved and year success. in strong of spooled Gallatin teammates micro Midwest Sedalia's also other automotive project's the rebar budgeted commercial first enjoy cash building and of flow hot

Our their Florida, our production for well micro profitability Frostproof congratulate achieved and this month rebar ahead began in schedule. for of significant Frostproof, incredibly in second the mill, of fast achieving located ramp, March. team We December milestone

and achieved merchant for rolling on proceeding an completion this flow Midwest our positioned December, to a Illinois year. MBQ for product month with Further upgrades the Steel the serve With March. and the later equipment and in in positive February to unrivaled Kankakee's well of melt commissioning completed market Kankakee, state-of-the-art schedule mill product heart Our in Nucor portfolio. of are trials Kankakee customers is its shop capabilities, mill cash bar new

believe with We team's successful execution. this our We capabilities. and strategies are ramp-up the additions new the focus these validates of on important to consistent both delighted new Nucor's

billion. percent to the $X.X a with are range strategically the only maintained cycles to XXXX first us We total At of net debt generating with first while Nucor prospects net has operating earnings investment-grade debt in period. economic power. economic $XXX under was to feel somewhat to cash investments quarter, million as total to economic confident debt capital ability XX% XX% reduced course, rating generally enabling be Total present, flow of when consistent our was attractive critical and $X to free strength represented for are flow grow over more and XX%. that We we uncertain. cycle. underleveraged. long-term the cash We reflects the At long-term post volatility strong debt capital. during our billion. close returns Financial CapEx cash our the is We cash, years. in projects' This our approach capital continue to keep of to approximately Gross conservative throughout early restricted strong again of a generated within total the of the seek totaled credit the about company's this underpinning XX%, fund a quarter, continues these just holdings outlook was of short-term through to

We of million paying the years has since manage income as going net above capital slightly adjust an past. Cash every dividends target payment capitalization in returning will first its to million, during was XX price took shares the to average consecutive our of that returned or have XX% just or of dividend $XX in per forward our We steps this base with we And shareholders Nucor including excess quarter. repurchase for in began $XXX dividend, to direction will share. shareholders and first the increased February XXXX. by X.X we continue year to some quarterly at the

allocation in our capital to investing priority businesses long-term continued and remains profitability. growth our highest ensure Our

at capital About cost half billion. Approximately capital and total X spending XXXX Kentucky X We of XXXX Hickman, mill. for the mill; projects: Arkansas the remaining continue of flexible total XXXX the is XX% savings Generation expansion for Gallatin, of Kentucky major is plate for line the approximately estimate product and the to of $X mill; and spending the our sheet Brandenburg, capital the anticipated spending capabilities projects. sheet improved modernization galvanizing greenfield

XXXX. the outlook quarter of to Turning for second the

further We supply At sheet the conditions served time, end-use quarter chain second record mentioned, set expansion margin primary throughout of of increase the plate As the by expected at we market are mills. new Earnings Leon see the are optimistic. remain to in the XXXX driver The the for our vast markets same or again improving inventories majority for stable company. a and for this is Nucor. lean.

quarter record in first confidence being performance our are strategic for reinforces ahead the value the Our by Nucor our created exciting. initiatives. The opportunities team

deliver Thank to determination long-term begin value to great our our your have for company. Operator, ready we are We for increasing you shareholders. in Q&A. interest

Operator

question Morgan take We'll with Carlos Instructions]. Alba our Stanley. De [Operator first from

Carlos De Alba

for that of quite important on can I the you know away, on it Leon -- could Maybe is the I comment this a the is still Congrats don't know strong but Jim, or results. if bit company. is you please how you do little plate ramp-up mill? see the

that do wind from see in So -- ramp-up may of and you have how we -- quarter volume offshore the the with coming this coming turbines, may contribution and the we see strong the mill XXXX from the onwards? in years demand

Leon Topalian

ideally in Okay. incredibly you we our Kentucky. plate facility continue the appreciate you largest done little our in and care EVP congrats. Al has Products, be we're We're the background plate-consuming over the plate Carlos, excited to thank but and strong United ramp-up believe, on base, in for region our Brandenburg customer Behr, and yes, the positions rest our XXXX how going really team team's detail of of that start-up there, maintained to to of I'm market we the Plate a Al? States. the the more the and of in execution about the proud mill, to question, take of leader The has and and spite team question challenges phenomenal 'XX. a into turn give job The in to its Nucor of

Allen Behr

question, for Thanks track about a project. talk on It's that budget. start-up the on opportunity XXXX. the in Carlos. to Yes. It's late Appreciate for

going we is as just plan. everything would exactly So

obviously wind watching carefully we're offshore That's something the market. excited very and mentioned very about. You

is Brandenburg things about As that that the market generate us. Leon mill There's of positioning ideal. that truly mentioned, of within capability competitive advantage many the for

is width. them of the One

range. feet, outstanding up The advantage well for others. that With really and wind many as it's grade market. to as as the and capability within exceptional offshore the range, XX the It's an offshore capabilities an advantage as out grade of that's create squarely market quality market aimed at chemistry that the mill got well

very we The the ideal. projects, are really carefully. based just at information projects, we offshore on all end that mill 'XX, So announced about up timing of coming wind, of planned projects, the permitted very, watching have is the

exciting very project very, and question about your us. So the it chance it about excited to to running. Appreciate get talk for We're it.

Carlos De Alba

what mill to expect And of you could you maybe is that in comment XXXX? the see production out that

Leon Topalian

Carlos, I we tell quickly. on expect to would very ramp-up -- you is come the is what

navigates pretty team numbers, of the by to want challenges certainly we a quote we'll year. of expect I to commissioning, but of XX% the 'XX. think be easily approaching don't that be As end to 'XX nameplate XX% I strong

Carlos De Alba

the year missed outlook second of I particularly what Maybe half coming -- in in Perfect. and for this XXXX the XXXX? years, CapEx but it, is

James Frias

cold That's Gallatin projects not at We're quarters to line X a Hickman; we the that phases the year. We've big this going the going plate we're billion spend probably and, complete, going going Brandenburg a lower yet the course, near different what and complete say. be company. Roughly flow our coming galvanizing the some completion: completion, billion new mill to about essentially are be unless interim Gallatin we're our X made the to of spend not next over XXXX with to up with the together But but year. expansion. it's that of we've billion XXXX, expansion; spent $X than on actually free this $X mill. put cash $X come is for budget at strong about projects, comments projections Gen any Hickman X But

so much at And that have plenty we're to. least in liquidity going wanted of if we to to invest

Operator

Emily our Goldman question Sachs. with from take We'll Chieng next

Emily Chieng

is is particular, seeing that chain? the are one segment the in if component others? order that and partial warehousing full. sounds My first segment. you're particular from strength think a very And restocking to seeing what it Are demand the would books end that really a of construction demand Or in from just in taking like surprise any you you Is true -- particular supply nonres maybe share been there's market still that the your outside the It helpful. be here, we're there? segment of upside could on

Leon Topalian

Yes. our Emily. the for you Fabricated to And ask maybe our us Utermark, I'll and our building Products, EVP off, kick question. well. as answer Construction Vulcraft/Verco systems, Thank of Chad

the And approximately so tell Nucor's is XX% sector. I products you would what of construction move into

mentioned I differently Nucor our doing excited the Nucor. of is Construction is comments, launch about better positioning in And As the Solutions to really really that team of what the breadth and team. my we're capabilities opening utilize

about in bigger We not getting are capacity.

customers. arm We launching capabilities products serve to about truly branding and in of differentiates enhanced Construction Aeos, marketplace. the us the And like it are the Solutions by our

Nucor's a really that to strategic fully engineers, so fabricators, value capture of helping to complement how offerings now designers the unique And utilize is recognize in architects, advantage.

that of nonres But the all we market, of it's think of indicators are about we that strong. that the more for. leverage we very, provide what the about spend how have something again, backlog, very very those as MaryEmily Chad, just the Solutions in think breadth the market, strength that deal maybe a the great her segments But construction on. I'm little responsible proud Construction we market. again, and that you into of track a As color of done And backdrop and team team, time you're

Chad Utermark

question. Emily, Leon, and Yes. Thanks, the thanks, for

and aspects many have touch know, nonres downstream we you many they construction businesses, market. of As the

quarters, for mentioning market. we the really several the construction we've are about of been nonres resiliency excited As

nonres construction look out XXXX we will through forward, believe solid and we into remain XXXX. As

continues to and backlogs. been And record very our Furthermore, all-time robust. of businesses of most our very downstream has have activity strong backlogs. in be quoting Our have businesses, some we

into year, half expect and QX second we from through see move businesses. the the to earnings of we significant these As do

about solid it's across centers data really obviously, about and ABI asked we're talked markets. almost industrial centers, residential, distribution specific just seeing all You commercial, came institution. are And this But warehouses, sectors demand. driving out demand.

So is firing the nonres industry on all cylinders. most

Emily Chieng

I Across if And with is can color. to. industry decarbonization look a steel theme helpful the one clearly, big forward That's globally, to up follow Great. question.

peers to advantage for and target is being an of come out guess be ESG the a We signing, with from on Nucor longer an you'd also we one should that you're a But the there come? perspective operator yesterday has aside big EAF saw term. your recycler I anything net-zero that that clearly, focused from PPAs highlight here.

Leon Topalian

And today, we've is to Emily. of believe planet. Absolutely, the past, We Yes. as the Nucor discussed most sustainability. committed We're sustainable on in steelmakers recycler. the we're largest the one

the like edge the steps cleanest, most just continue things the that of to very in on going agreements are we've to take we're -- world. make to that the steelmakers sustainable leading we're sure the part the steelmaking of So signed PPA

very and targets as releasing to our our in open Scope setting well you're going X in see launch conversation expectations see very so Nucor coming to about clear we public coming and as a X expect improvements the years. emissions for And the months, and the

again where few next in the to stay make again, to highlight better. out strong going is to come become to we already think very even That's what going tuned. best-in-class some and we're commitments So months

Operator

next our from Seth We'll Rosenfeld take Exane. with question

Seth Rosenfeld

I've separate got two questions.

segment forward? obviously any please. scrap how are with expectations kind us regards upside tighter-for-longer material prime walk on recycling of Can come performance really of I'll capital, raw looking past with your scrap And DRI materials update increasing The business? that DRI on a you capital, then on us can And to the had for First, either some you through working the secondly, this progressing? working please. drivers on back potentially to or quarter. and market, remarkable volumes raw that, give

Leon Topalian

over actually, and Jellison maybe Okay. chime at I'll this end. to in begin Doug? the Yes. Doug and Well, turn let him

Douglas Jellison

Seth, Okay. was what for through job did quarter the safely The a great challenging pretty approaching thanks of the question. team a quarter.

spent increase in great the saw preparing weather time transportation in proof things, you deal the demand, a we've these and for challenges, But of quarter. short-term As was challenges. this in the execution

yards had quarter. record recycling Our a volume

Our there our DRIs had we go the a up, raw production. lag at standpoint, solid financial From a is are based markets materials and as come as in. the lower cost

best the of we So to first strong quarter be the expect throughout quarter. will but performance, our see performance the rest

outages of but we May bit, terms We to been DRI, those are and In December have off to adjustments. well. continue perform have scheduled them little -- be so will expect volumes and well. a planned they do some performing We'll anticipated in

James Frias

about working question a had capital? You

Seth Rosenfeld

might a think for for please. move? example, capital? be you what Yes, further in for and of us QX into we your been the to Have through cyclical in through able capital working inventories, significant very that looking the Obviously, of Do Can half value investment the walk after year? you a working QX. reset there's expect business. need That you in big back would QX record investment

James Frias

Yes.

prices, it a XX.X%, up fairly up So receivables which driven like combination and and was volume, percentage, of XX%. was were a large up by

would we be close will next so to think the quarter, volumes And same.

And to a price we're so going have driver. just

pricing. increased some see will We

will about goes receivables days. how pricing up generally depend up. go receivables XX much in We much collect on how So

X%. customers. is roughly days to our our Relative of XX sheet on outstanding of up inventories balance what's our to went neighborhood So in the inventory, sales outside

scrap -- up Of ton course, cost iron significant pig because and well. a the were as prices up per went being and of DRI amount

likely in not up quarter. next And inventories volume go are, again, so to

I think going to be flat. they're relatively

to And so in less receivables we because just another we're shouldn't to be compared will saw first but be big maybe increase much in And too, closer QX quite quarter, smaller. the the same should to see same in in have the increase pricing we QX. going inventories that

Operator

Timna Tanners next our from America. of with question We'll take Bank

Timna Tanners

probe to bit wanted more. I a little

were although the The expected, quarter, levels. But to first volumes run long than ago of up, they makes better rate as sheet products, sense. quarter, second your year below were fourth some still

that little comment forward a kind go going color wanted just the just on on now should that on based expect So volumes. up of if and to we flatter

wanted So you little comment to industry, kind your utilization about on for like given the I has improvements on take customers seemed we on to get really to the of barely if that. that. clamoring color I'd on could, budge a and why hear that, can top and that in then volume of supply? hear And restarts

Leon Topalian

side -- at but not and structural or that can't structurally, significantly mills, the us are saw Yes. Steel up XX% of the seeing sheet. moved also rates. beams our was plate backlog and question XXXX so the incredibly to Berkeley mills try probably utilization rebar competitor And Nucor-Yamato But significant with speak I'm market. XX% We're start and driving And of -- last over in were very, they're structural strong quarter very for But roughly And backlogs last. sure that last move. strongest the our this Maybe a for since and fourth to quarter we moving there at much their of backlogs I'll come and the but plate from to are not decade in anyway. the I understood certainly XX%, fully overall rates. utilization historic, you demand strong, again, I the and the quarter

sector, forward, structural will Al, into only robust side? the be we they that those So anything but that think, serve, moving as on year. see not we markets continue the well that you'd add

Allen Behr

Yes.

had picked quarter. in of bit thing the Texas the things it We through highlighted, into range That it, project shaken our up fully such One it's was to modernization broad That tremendously right, impacted up beam cycle. that that Arkansas we successful, mill. you storm we January a Timna, other in but and Arkansas. impacted first extent. beam from a quarter little group. winter things. And fourth on were stretched got of some product the a significant the and couple before a a entire was the Just was product a of mill that came out that upgrade couple slowing There's

That's as very So mill it has. today ever efficiently a that been as is running successful upgrade.

to point are pointed all-time about out, made significantly, just and weeks in number to QX down of ticked So But Leon an the are no, even as reasons at They've be backlogs. little year-over-year you those your the last bit, and point improved couple rates just about expect run excellent. a the we why. record. QX, the

Timna Tanners

question, a I wanted another to bit topic. the could, green super ask on Okay. I steel switching That's if helpful. gears

that? So then of has green, you know for wind, Is many the that's obviously, quantify get whole a -- green Jersey guess. how customers -- there as of way I indeed quantify of that's you that wind sense clamoring mentioned be hear is steel? little I always I said, X your going been Saudi the million the are that customers history. actually a your bit can to to and for to side, I Arabia And on wind, New you renewable is and of But wanted just part on Nucor

and help couple million that X of that of over So opportunity is opportunity? of get time? producers? Is tons you potentially solar us over a that there. Can sense and there's lot a a But that

Leon Topalian

Yes.

about I up, meaningful, large-scale production there X those and of we starting begin X stuff now are in we'll MaryEmily, please think approved jump that 'XX. think in. are if very there's there's solar wind side, miss offshore But wind, the projects right 'XX, as on the shifts. And I

kind that see to as really, of of build-out. time frame ramps up, So 'XX 'XX 'XX, 'XX, is the we that

We will executive is XX,XXX order tons exactly. over X that's several do X, just the million an we X -- behind President don't offshore an going these power, signing X that know be I years. what yes, X, of What lot awful a with of activity do years, period more megawatts to drive So projects. commissioning believe

to marketplace. the late full that forward. that capitalize positioned with of take increase and expect we start-up to up, of advantage is and number So incredibly could opportunity in as that Again, 'XX, well it in we the move Brandenburg ramp really

with the doing just the in go-to-market mentioned don't little bit side, On is kind I Construction that Timna we being you MaryEmily's Why And thunder. what Solutions strategy a how run? share of the actually, won't team. and in solar solar like we're steal

MaryEmily Slate

Timna. question, the for Thanks Absolutely.

will a Solar galvanizing wonderfully We'll the for next target growth with change. a market. Feeding is there. Gallatin significant make on that see mill years, chain. the market of over that if line And the absolutely torque actually positioned few you such as tubes. it's just amount mill it target construction, efficient the industry an like announcement especially off administration that Difficulty] And will growth with production the we see [Technical the a and saw supply solar

provide Construction and our So to faster. better they working to as companies we've expectation those market make grow that's with -- just solutions like Solutions, get a group got them to

Leon Topalian

making required much it, when in, last we've wasn't is things appreciate comment maybe of Nucor that much been because years. Timna, for can that is do. right more federal equipment job We at one building a our much done offensively I'd data part minded the remember proactively, did or with XX thing But more we're not regulated, was more state And sharing the it I openly. story the been company make to on telling wasn't started I and as it law. to actually now green. I've by when that good of decisions we that Berkeley, have our put I

how again, again, You're to but through transparent, Nucor verbally, for sharing year, going in X significant Scope and up very we to say, the full hey, to do that. and not we've better, we we impacts emissions to see industry can our of also and anyone X in can. helping stand months we a the believe think commitment to this coming the and step got to world do the just And that because be

Operator

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

Andreas Bokkenheuser

tight Seth's on Do going going quickly be to technical on tight potentially any kind assume any I market, and cost like on or be prices more you anything and market to and you wanted question, pig market in where scrap prime supply that to prime view, And that obviously come so do high become does all EAF DRI assuming of a in up let's market. -- of your load point I a know other very I'm and you've some all of feedstock Just forward? of so to kind ability tightness from from of the forth. especially it tight are follow that, this but prime the producers offset going mean moment prime question there's a some to as a a question here in I'm super out to you have there, the related of sure commentary kind out the people prime. ability terms about seen on believing on have or the answer do like relief? into well, to furnaces that for

James Frias

Yes.

in me Let answering Andreas. start that,

the yes, what's The -- substitutes, we mills lot on are not a are they use of vessels, iron, of at primarily plate only second locations have it's mix our HBI. supply yes, suppliers, sheet being mix mills. flexibility. mills the on can where which we've on question and probably receive can products. feedstocks consumed from efficiently, domestic most your most other deepwater very those because the think most include But of or those about again, oftentimes. based of as of pig a suppliers because got costs shipments the scrap from of flexible products we mills, product using DRI, but other We some We a and the larger of mills, the use waters offshore chain, and at at our barge the we the part be We ports available positioning some And on change our regular well fairly use we basis. mix, we're the and but of what prime sheet already

And so that's business plan. a our part strategic of

scrap plants. In we terms years this coming and building long saw in started that's markets why several term, of DRI ago, tightness we prime

So meant so competitors sense The build when makes And our is usage we it build give in supply DRI. chain. us I much question plants. we've our in of we question have DRI I'm the we more HBI. out use we can we we capital prime plant, at the capture what get the that competitive often with an then max if think follow-on that mills that scrap DRI we option that plants got help steel. make prime X what then depressed, to our sheet use HBI, against more is me view profits have an is A we're get we sorry, DRI we scrap should profits, let's prices disadvantage keep today. And get against cost other follow-up HBI, investment. -- at our integrated advantage advantage I that with would DRI get profits by not said we mini right is for should If our have can integrateds. now we And a that more we price And a say tight If and ask I you really published look see mills. helping

Andreas Bokkenheuser

Right. Right.

Sorry, go ahead.

Leon Topalian

No, I the was point to reiterate did. no, no, Jim going exact really please. just

of structure the can Let where terms is our themselves, decide results you our and cost our in performance. and speak for delivery

Andreas Bokkenheuser

is of Could how prime furnace on wanted that every consumption? can going maybe lot to of X%? sense. mean a question you any to? you of altogether there you so is Is can realize mean, way you and go different saying any way about I one go exclude makes go And Can on XX%? the the appreciate forth. on and so technical forward? low think That I But you if side. to prime I follow-up there I answer. kind

David Sumoski

is This to the is Certainly, mix Dave Sumoski. dependent. product Yes. be going very

go go prime all bar side, almost with cases. we We in do the can zero zero with On prime.

in but XX% to On going move side, around. depending range, still sheet can probably yes, but that we can that we the you're be vary -- that need to

James Frias

use to against the neighborhood which We XX% of Yes. -- in of with obsolete. -- XX% can prime XX%, of prime XX% substitutes

Andreas Bokkenheuser

That's fourth appreciate steel just so forth Any of clear. final of continue Obviously, prices versus question, gear on and capital shifting the in buybacks, allocation very quarter? dividends, updated commentary that. And so on up. kind share thoughts during I terms your well. to then as go

James Frias

Yes.

in targeted We've That think published we technically about new up that XX% I so comments, on. the to capital our And capital net that you if -- being as XX%. my we're a we've I actually to published for to debt disclosure is past. not number now folks right listened hopefully our time, debt first underleveraged. like net was the range picked talked XX%

want year as and the of free have And further very, the stock of us underleveraged. don't balance going flow, for We're profitable plenty And to so I to to the would expect progresses. to buying continue back cash be get going we're we very year.

Operator

We'll take our next question KeyBanc Capital from Phil with Gibbs Markets.

Philip Gibbs

saw goes an where intercompany tends around. on eliminations eliminations. here just obviously as the to was that QX? see the And do Did intercompany sizable. intra-quarter, that something shuffle And I that peak Question you clearly on? that with year know that were we Jim, to in produced the move outsized They number. inflation we expect

James Frias

did. We

more a me. hang give cheat me detailed can cheat find with because have you on that. sheet Just I sheet on, Bear let a so my color do I

elims was so were The million. $XXX were $XXX corporate -- million. elims pieces Okay, total profits intercompany intercompany

of first quarter than than that was year's fourth it $XXX in more $XXX last million was it So was It was million quarter. more in the last year.

big specific pretax So lower was going quarter a targeting and XX% not that's that go number, million. going going a It that's was money in amount. be to sharing, was but to so next a second quarter, Profit of the it's up. down. is to number, by to significant. which make going fair $XXX We're We're more profits, come

$XX going in were be be expenses $XX that about flat in same just would $XX was will -- put million. comp next And related, your million. quarter. it money so interest Other quarter incentive that other So corporate to to That million projection, pool. incentive that million. sharing isn't was that's you up -- second up comp that based that's same expect extra. $XX quarter. be expense to on more hit expense profit a And I timing there's to to quarter. the about that. I going range sorry, was with be was similar probably the next I'm a And compensation of stock next million to RSUs. that's because quarter, Other $XX expect other And it than in the the I interest in $XX be grant generally, million, expect second $XX we of the million should happened

Philip Gibbs

hard to hit clearly got data down was starts Okay. And said lot, you There relates but some nonres X are XX was rebar months, lot. those indicators point, to The leading some last actually, your better, In well. indicators. are that pointing the it of deck as construction, to then there as a lagging of the year. growth. that fab are Well, are market guys joist that leading parts are a and have nonresidential some to you up

together, out mean, I right lot kind us of help just of a there put this So mixed now. signals

Chad Utermark

Yes. Phil, this And is Chad are correct. you again.

through backlogs this are and downstream that different in sitting our on backlog our and and look a look hotter, year. But serve of already businesses of portfolio some businesses -- have demand stronger. I customers, at markets record of and joist starting the we building general, is next rest We I across systems, high-level deck year are and and to listened at record the to

things future about of concerts I and get the the to seeing business. and you're segment reopen vaccinated. -- people to already go more that going the as excited as And more starts out eat company think we're in to to people so wanting And

I will for lot bill, levels it I this if nonres market. don't strong a the commercial would that But back it. come hope it fuel of I so expect that, know around I that an come world And the rhetoric back. would but strength we to. know that happen, don't will add was we seeing. to of it will so there's infrastructure think to that So long were

jump in. else So if can someone

Leon Topalian

that I only relative. Phil, think it's is also add Yes. I'd but the is comment other accurate, your thing

fabricated with don't break would the Nucor our As contributed tell profitability as you while they've maybe certain to look at has been ever. the their what the as of strong individual years groups, I and we it's done couple just projects that out restructuring segments, Nucor construction over of you is last profitability

expect strong returns that continue. to realizing And we they're some in businesses. again, So very their

James Frias

was been but a a speak Chad, bit, little I a in had pointed quarter the well volumes as to little fab in I that And fab. rebar market person, forgot. -- profit rebar or fabulous We bit may I'm wrong the more I have more Dan you fab. timing that, the down, rebar could on sorry, think, related. The Needham, strength

Daniel Needham

This appreciate I can our actually, certainly record do rebar gave. But question the that Dan I for backlogs Phil. Needham. now, you is on that, fabrication. sitting right we're

demand of and projects So is point. in us at the terms outlook for very coming about this looking good

Philip Gibbs

-- have in got boom. lumber nature during closer guys then lumber in you of unamenable even lot in Okay. steel appreciate terms pushback prices have run. I housing know the of And been ago, in if seeing XX of cases that those just wood? curious to X I short to usage being years. some things had some last of But some any goes that. there I increase with was longer, when taken some X -- years it could remember, the about I as XX Are ago, into wood the high higher? applications some maybe of conversations over or And XxXs a big years steel a steel you astronomically of lumber obviously spec of share terms this in in and Would

David Sumoski

off. I'll All again. price. Sumoski start commodities are in Dave this is up going Phil, one that

with the steel both be rising. and build to buildings would So cost wood

going and some to switch back. So time take it's to --

try So to there's seen that opportunities way. understand talk and we lot about it switchback either some haven't we a any but yet,

Chad Utermark

comment they've want And we've the one pace just that number there's the the that script since obviously, to is it's you But see in published, that they seen one the mentioned numbers, of another I highest think that seen marker since the and those and XX, XX.X, almost inquiries. In XXXX. I 'XX. and of is number make. ABI, Phil, last indexes the Leon highest

things us build little see that stronger. a platforms. view is overall, is a across a may the many just of So pretty to coming signal inquiries strong. yes, markets But it's little And or different there this there pretty is strong pent-up in demand that I certain weaker are be amount to expand and the to

Philip Gibbs

of include pace coming fact inquiries and requotes the that that and up would on rebids the Chad, market also lame obviously for people the running asking with them? for potential keeps just

Chad Utermark

could. this and But just with I point. we're again, direct at cancellations we them not seeing customers, backlogs, see It our think our on it could. and conversations with

James Frias

for quotes. the But architects time work Architects don't orders. index. and companies for give all This free don't into work is don't that Steel architectural free. turn give quotes

quotes. think I people inquiries, it's getting they're just not if So getting

Operator

with We'll Markets. queue take from question BMO in final Capital the Gagliano our David

David Gagliano

on years capital switch defined -- a perspective on All capacity. well a done fruit certain right. the Obviously, thoughts. and fairly in including restart respect. from to industry Nucor to side wanted Obviously, pipeline allocation longer-term behind much point greenfield a is I the few of now. being getting over kind a last where gears bit growth shifted to it's low-hanging the to The profile, little steelmaking the the aggressive more is

when we So if be is, really there, seen the we considering with capacity, add so, that And steelmaking start continue we've Brandenburg? should thinking meaningful steelmaking like see landscape, hearing Nucor will should my about Gallatin out and to question capacity that? everything you

Leon Topalian

the Jim, want last several over billion. Number you $X Yes. over it off coming of for add. David, to one, kick if capital thank we're campaign there's And you the off. a I'll question. anything years

with bring focus of Nucor safely start-up Brandenburg today and #X capacity Our culminates is XXXX. the that late online, to in reliably which

So to amounts satisfied back we're capital really execute significant same we're with is a of return the our the time, David, at short-term not our where shareholders. growth focus today. and well very to At We're position company.

challenged and can position to where well downstream to our are do looking we're for team I tell invest think I the that our So in continue about hard to you operations we future. grow. to us

how capability isn't earlier, It's volume. doing I differentiate get bigger to investment our to by As by and we competition mentioned our strategy ourselves add strategic so. from

going Gen a automotive differentiator only to is for in Arkansas, to for full investment Our be product anywhere producer Nucor. Hickman, industry, to EAF be make the the X a

The to continue to long or So XX- play. how for to hard the we're XX- grow term. It's Brandenburg going a look we on or play. investment XX-year X- isn't or continue in X-year a

well finishing as we think really about been billion culminating opportunities it in the and And $X do again, then we've more how think does so about hard give before sort you the with the us, of need to where and we position And detail than include. And executing continuing to I other tell campaign to on. and Nucor growth begins much won't really how we're looking that for future.

James Frias

is Leon, going commercial that in like renewables, to it's serving serving the thing strategies sectors the we marketplace. about, idea what only MaryEmily The like have talked certain with add, I'd dovetail

portfolio And and driven any to gives opportunities be a by than serve better can so those going with else. complete it's to where we markets a partly to customers solution place see leveraging more those get that them they

David Gagliano

helpful. That's Okay.

assuming. I'm -- projects, timing a from are these lead time In terms just of perspective, decent

we we or -- Nucor? should from you hear expect more from to are some big greenfield works, would should the hear when to Nucor? when when there projects more expect in So If

Leon Topalian

to we're Yes. get ready What you'll hear. I when specific, be David. tell first Look, I don't the you to announce very those, want is to would

that so strategy. think And we've -- as we got to through

All of our in of executives and growth are delivering their respective each areas. challenged to committed

maintained the I'm our capital that's going strategy, we move about executing our in excited so about we and continue to as I'm And discipline future. excited forward.

not at. going not stand we're So but where going we'll still. to stay very be deliberate, to We're we're

continue We will to grow.

Operator

concludes back or the Leon turn additional for Ladies today's remarks. conference At session. this and Topalian time, question-and-answer this gentlemen, closing I'd to like to any

Leon Topalian

Thank you.

support from keeping safely your benefit us opportunity on to opportunities running been available customers And years and Thank my appreciate thank like resilient repeatedly we tomorrow. the pandemic you the would out, from to coming in all off, and team everyone last you all year, to sign I in all model we let here interest communities we would thank a our experiencing out that again We thank this market now. thrive just serve preparing we focus you to challenges has want company and are. great day. wouldn't thrive customers, to our have We both the today how say by one learned I shareholders, just do and we're Before business for that needs for We suppliers, to are. of said economic so for presented the that you, our for today. the survive crisis. Through company. our we and this truly of crisis. the me Nucor the our Nucor conditions team. and facilities want your and smoothly We and can come

Operator

gentlemen, Ladies today's appreciate and this concludes conference. your participation. We

You may now disconnect.

Nucor (NUE) 23 Apr 212021 Q1 Earnings call transcript