NUE - Earnings call transcript Q2 2021

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Operator

Good day, everyone, and welcome to the Nucor Corporation Second Quarter of 2021 Earnings Call.

As a reminder, today's call is being recorded. Later, we will conduct a question-and-answer session and instructions will come at that time. Certain statements made during this conference will be forward-looking statements that involve risks and uncertainties. The words we expect, believe, anticipate and variations of such words and 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

these Nucor's found about statements which and are information the the and forward-looking XX-Qs, relating For SEC's on and risks subsequently filed may The Nucor's in to be available latest website. XX-K uncertainties forward-looking as new any only and Nucor date, future made statements obligation update otherwise. of to as in of this conference this a them, or events either not information, call assume result speak does

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

Leon Topalian

welcome quarter Good call. afternoon, second our to and earnings

goal Engineered us responsible we and Thank steel MaryEmily not and Tubular for for becoming Construction have performance, most operating responsible world's Enterprise of Nucor's Dave including Financial Products; responsible Raw Fabricated remaining Greg Plate responsible Joining our and for Strategy; today. the lost our Rex Chief Materials Chief Frias, Sumoski, and Needham, of joining executive Jellison, Logistics; With Bar Sheet in and demand team, General Counsel; Utermark, Behr, you me peak call Structural members on the strong responsible Fabrication responsible Slate, for Commercial Officer; Jim for Products. Rebar Chad Dan and for safest Officer; today focus Business our Operating Al are steel Doug facilities for at Query, for our Products; Services Bar for and company. responsible Products; of on Murphy, our the

I world-class year. last achieve front just our their we on performance achieving safety our sheet safety our make besting teammates quarterly year We by year. maintain our of can our record I DRI acknowledge for in record demonstrated particular, the continue posted progress goal second safest safety our last as the look have two guidance, that we in to far all we most perform Consistent want the to Nucor XXXX focus to set this month's with on mills so for well earnings quarter. ever, facilities important so set encourage In to the company.

of surpassed per record set our share $X.XX earnings Our per earnings quarter. share previous last

quarter the and years quarter third in growing of our result My this of the for minutes. and few experiencing today. in Nucor conditions several that entire of monitor There robust most the are we is of market important today. drivers all these Nucor congratulations virtually to are growing. improvement steel strategically thrive Our we profitability Nucor. our company a This more and provide first demand, year excellent our are In generate per XXXX. All $X.XX our also execution record operating in our of greatest in due higher to Steel first earnings quarter. sheet half of prices selling Steel strong performance from about segments details $X.XX share our plate to average the mills. our The benefiting is of the positioning is are and improved strong Mills team. conditions like full markets will exceeds saw use across set EPS robust performance continuing market three of the to to Jim group level outlook segment, from we end fundamental The profits compared the Products performance work demand,

our equipment sign an rebound. by and customers, trucking, economic sector. automotive, increase be new up the that here growth activity state beyond manufacturing think construction automotive noteworthy from the to investment we market catch has we Very and we and demand, increasing new up of confidence steel housing DOTs, are pandemic-induced but ranging next are in supply loan temporary investment, the There sense resiliency the in spending One energy this all it of a ag about heavy is on markets this greater than simply may year focused from warehouses Nucor. Some e-commerce, goes experienced in creating growth across U.S., not strong for chain whose also creating better mention expected. demand, held for infrastructure U.S. drivers opportunities steel for and projects are from renewable incremental

Sedalia, teammates several to reflect online come We investments at and better-than-expected mill. demands. of projects quickly Steel results contributions cold Mills market meet are have Marion, fortunate these ramp have growth new from who locations, to Hickman's new Gallatin's galvanizing these our My this safely worked especially to line period, in that our our Frostproof, during Kankakee, Nucor and strategic thanks, up

our strategy core, live culture. the expand grow Our continues to and beyond be:

are grow power. to long-term and make and investments acquisitions We our in to share attractive increase our markets continuing targeted earnings

solutions. second We the are investment broad with a our focused Acquisition on to made we to leverage deliver sharpened the mission part portfolio value commercial enabling our us that integrated of quarter complementing statement. expand our customers strategy in with announcements focus is increased beyond are more and our

Metal of I've of IMP mentioned. is fastest-growing Brands, squarely for the short, Panels Our aimed markets Insulated acquisition Building pending Cornerstone business, at some

maintenance and an is efficiency. confident that products easier with usage energy emissions in on solutions. Buildings The institutions and centers distribution market Group by other share investments all require Cornerstone's growing product as and environments. roofing environmental driven to IMP a are server market and center delivery excellent we help business gas evolving take products example, performance category. can is team level. energy an superior operations-related lower products well as innovator even continue overall expansion consumer and install wall the are reduces focus Cornerstone's and IMP of IMP IMP e-commerce versus the and greenhouse are For the Nucor of temperature-controlled fit with IMP to IMP farms, leader as higher we performance companies there regarding insulating preferences and grocery cost performance to business data which gaining Additionally,

growth the a rack that manufacturers agreement also deck, Hannibal offering one earlier week in market, industrial, We buildings metal of Hannibal steel Hannibal new insulated storage e-commerce, pallet panels. U.S. the Nucor and the metal serving joist our retail warehouse course, to our racking center platform segments. beams, this and, solutions announced food distribution Industries, including provides of largest to Adding acquire creates broadens to to the

in XXXX an out our a As lower optimistic these build great that employee-owned our Industries with will be gases, company, cost own Gases with initiatives. joined we are while supply on Nucor fit to job Also, continue streams growth The of mills, front, that great we expand team a enabling third culture. beyond creating acquisition Hannibal continues to the additional platform industrial parties. our do to executing with Nucor Universal Industrial steel in to also sales revenue of the

separation air Hertford liquid on Nucor actively the We unit at gases have and market. open selling an are operating

running We up months. will more continue the other our to and in have coming mills ASUs supporting

Nucor are these performance-driven, team-oriented culture each safety-focused, teammates and to the the to excited Nucor businesses, We we family. are bringing these of to welcome

the producers take environmental will planet, of continue leadership Nucor steel one position the our to on As cleanest further. even

greenhouse gas world carbon commitment average. new today's down XX% to below intensity Our our take reduction will

Climate in signed. against achieved the benchmark combined current has the was gas X to commitment our is the steel be Agreement. the commitment measured This by Scope Our and At Paris XX%. emissions gas already XXXX our established greenhouse Paris Agreement X greenhouse sector a the intensity, baseline, will intensity reduce year Nucor

intermediate around many our and is what aspiring 'XX, than are Our near beyond. XXXX, to better their our And now going many get performance achieve of 'XX better. point today globe our integrated by is we're competitors already goals, to competitors, the even and to compared of starting and

today leader a as commitment will forward. steel in a sustainable reduce our move and our emissions leader to further are We keep production intensity us we

all incredibly will bipartisan reached of together spending to in to to well infrastructure year We provide by the S. increase U.S. competitiveness, the not to much on strongly a demand safer. our as billion consideration economic mention, boost us steel believe nation's X every recent funding that infrastructure. for to bill. Federal make framework pass expected steel currently infrastructure $XXX tons come Senate Turning projects new plans good U. our making to modernizing We investment. significant million positioned urge for Congress as and infrastructure across per Nucor is infrastructure under are

our encouraged recent parties excellent years. to continue focus form paying work this off We're have first capital To strong incredibly and see on solution. bipartisan a we are expanded it acquisitions because about congratulations President half and team, and market. to that offer how customers hard both the can our that issue, of hopeful are investments the entire we in this Nucor an XXXX. made in and capabilities members they Again, the of excited steel together planning gratifying to we is from on We come of are years can

Let's continue this profitable our to and and execute most safest make year.

performance more provide will the Jim? in second our Frias quarter. Jim Now, about details

Jim Frias

Thanks, Leon.

project's rated the Hickman example no the These Nucor exceeds in cold and line. to micro galvanizing footprint. specialty also as the commissioning an rolling mill new assets range. the our portfolio at mills, our and projects joist value mills earnings Arkansas fabrication, creation Second projects of These team earnings businesses, There of America are share bar line Hickman match Nucor's sheet state-of-the-art cold Missouri originally at long-term will we the capabilities and flexible is of capital ramp rebar the at earning Nucor's Nucor mill; mill, ran of and targeted these further mills profitable automotive our products bar of The line The the deck. capabilities quarter of our Florida; diverse guidance of broad sheet powerful the a modernization were sheet cold grow made of mills, quarter, bar that rebar mill shareholders our significant mill. expanding mill begins June than new growing Arkansas is further merchant a it of products first rolling is Better-than-expected including tubular Ohio driver are excellent our contributions earnings forecast. in at Nucor Kentucky and substantially power rolling and carbon its Hickman, completed mill; projected to exceeded rebar half life-to-date In consistently band second the of serve. $X.XX the production in mill North hot above and equipment. double the capabilities. results looking its investments in diluted growth per galvanizing and month initial our customers. capacity, budget steel our enabling year. Illinois of mill mills, work strategy. for are to across this markets time beam group mid-XXXX, And its at more beginning the profitability specialty XXX% achieved ahead a Since of share specialty operations this other position third-generation range for Recently

provide We long future. high-strength greenest, deals will advanced our their the in customers provide customers the ultimate solution steels These that the industry. will most needs, automotive the our satisfies into

bringing success capital. Nucor like online of reflects commitment the team's projects to strategic valuable being shareholders' this effective our Our stewards

liquidity to volatility the through a of our growth line reduced a cash objectives with to Our million. the targeted end million, attractive repurchases $XXX the the defined to holdings underpinning earnings of and strength share short-term economic increase cash $X.X quarter includes at items investments approximately while the revolving position At totaling a somewhat market as about XX% That quarter Industries. materially with range to to this anticipate capital with payables dividends of continues XXXX. was critical and long-term Nucor's of our underleveraged debt end. and that Hannibal not first $XXX and quarter but total XX%, approximately will April remain debt well was of portion, our mature unsecured which We're targeted moving facility, long-term also Total we XX%. current $X.X and forward as funding position, restricted second expenditures $XXX billion, generate compared debt, total be excited cash Gross $XXX on business credit receivables $XXX after deploy are until below net grow increased basis, close We capital totaled be percent inventory of million. cash, Nucor's to second billion investments million platforms. at Financial growth quarter, remains Cornerstone's does about new was of of returns by expansion is IMP of on million, these ability our change power. acquire this $X.X and working undrawn capital including capital to opportunities billion capital we the XX% cycle. the

remains We most significant Arkansas $X.X sheet Generation now approximately spending billion. Gallatin, Each of but the Nucor's in strength plate modernization to the mill, executing businesses, the capital materially provided At add some cash provided expansion to mill; late or the earnings Nucor's was has for we balanced flow deliveries at free and flexible cash schedule overall, been years consistent operations Kentucky these by and projects, that mill; first allows flow numerous and billion. expect our along capital We activities Hickman, billion. and a line growth commissioning. on cash galvanizing flow half capital the Brandenburg, the the cash with Nucor's ahead. capital of internal approach $X.X operating $X.X generation the have spending projects total timing on, year estimate will schedule. remain three sheet been for of the through-the-cycle Kentucky the greenfield minus of by delayed, of project on for X Brandenburg, was XXXX robust XXXX allocation. equipment financial Cash

second continued $XX cost shares, X.XXX the at value an repurchasing share. attractive approximately quarter, see of million to our we shares in per During average

been first by year, cost the the XXXX $XX outstanding share share. of repurchases totaled about an have approximately Shares reduced per this Over at from than X% million of shares level. average Nucor year-end half XX more

totaled total of the repurchases period. and dividends net returned billion, just XXXX, through shareholders approximately half cash the of to for For earnings under representing first XX% $X.X share

said shareholders. of have minimum we to As to previously, we income our return net XX% intend a of Nucor

strong We with returns profit maintaining to while substantial growth balance future and sheet. invest are rewarding cash shareholders a continuing for

are third encouraged outlook number a to we Turning the of quarter positive our XXXX, markets. of by for impacting factors the

conditions mentioned, we stable served market markets Leon vast or the As end-use Nucor. the improving majority for see of by

Further outlook, inventories of the our In XXXX. businesses backlogs supporting order fact, at our most strength suggest throughout chain optimistic remain into supply well lean.

in segment. three new to quarter We record. all XXXX of earnings notably expect of our Compared our segments, earnings again at third set second to quarter, Mills we expect the growth the a most Steel

the quarter, expectation half building more first we stronger exceed a of highlight earnings earnings. half fourth of XX,XXX record of our success strong our Nucor's a members with Nucor. will Additionally, profitable believe of team XXXX XXXX and results second

company. XXXX our performance remain opportunities ahead simply by for team's We the excited is Our outstanding.

for We your our great our you have to deliver determination Thank in means value Living increasing for company. shareholders. performance. sustainable interest long-term driving culture our

take to your we'd questions. Now, Operator? be happy

Operator

first our ahead. go Instructions] Goldman Emily And [Operator from Please Chieng take with we'll question Sachs.

Emily Chieng

ahead of today. Good Nucor. afternoon, Leon you and off start of the M&A you guys out I'd there looked have of same currently? capacity more be steel opportunity Jim. assets type downstream Thanks even sort when But of type for look about the or think production that like strategy the that Clearly, the upstream? Could and at far. for you've there, to the sort with fabrication is so it update at set further assets you've consolidation that's potential focused on

Leon Topalian

market culmination sector, a full able perspective, investment plate-consuming to outside automotive, produce going beyond be the the energy grows opportunities the next grow and timing of business. that but in demands live attractive And the region Hickman going about meet we history, first expansion States. plate about that in Look, our become is think opportunities positioned steel different Emily. is mill heart to mission particularly we culture. ideally our see opening It's for we into wind, see be core, my well our expanding in and that. the footprint galvanizing onshore to our to energy, I renewable both of Nucor's at suited mentioned three the to EAF line incredibly the Kentucky, core, as the brought online at core mill and would the the be We think generation the as Gallatin question, about in the single in we largest and as that's broadly, United from the think also largest year. automotive Thanks the But more like to of when you growing in as with a sheet and to growth Yes. our as that That's Brandenburg, sector. in that's remarks, a offshore located I expansions tell in sectors mill returns for the a expand

the traditional of times continue going long-term of Cornerstone And are truly Nucor's maximizing for Hannibal objectives returns. into And you're and of expanding that are recent see growing. but both markets acquisitions also shareholder strategic so steelmaking But there on lanes that to Nucor we've the to a fit half Emily, is that with framework operated in look focus last within it's moving that that century, a beyond. the also

As we maximize strength, is we renewable space market business a cyclical a in see its a digital what and opportunity fast-growing its perspective into Nucor and and economy in in see stewardship the for businesses. is what steel and those and bring economy you to the know, increasing leadership industry to green leverage cultural those

Emily Chieng

know One reiteration That's follow-up. line some details you time the you Hickman, Can similar expansion really Thank start-up. a the hot capacity updated Brandenburg you. mentioned the and sense. sort at of and helpful I band of makes the provide for quick or galvanizing timing please? Gallatin of

Leon Topalian

that I'll a to Chief little Dave both Sumoski, more color those Officer, Yes, of on our Operating projects. provide turn to

David Sumoski

end Yes, the mentioned, are both expanded and bring. scheduled both those that. those will this to the about year. up that projects both of capabilities projects come really Leon Jim And as on for we're still They're at excited target

excitement that been team up Some ever a shown faster up had, lot come the these and of and come and of us projects to better we've ever. will than that recent up and has do, or came running than gives lot projects they'll that it that the able a success confidence

way nameplate. line, about inflate the the at capacity. the galvanizing than think that past the they're cold in over running If Arkansas running already Jim mill Gallatin mentioned higher you

is well on So ran under slightly their heel. nameplate in Florida as right they basically Florida. moving higher than

very So projects of the providing safely. capabilities excited team's about bringing team the these online these projects and or

Jim Frias

Hickman to said these I When One he referring Brandenburg not projects, the line clarification. is was both XXXX. late Dave Gallatin. think until and

David Sumoski

correct. That's Yes.

Leon Topalian

capability. Emily, really of growth Nucor and Nucor think looking through share as build strategic is The we backdrop, a final like it is not We're point all strategies, to looking to as filters growth build our as about I'd capacity. to

strategy, differentiated for value. so And growth proposition customers offering again, about It's we value create, volume our to long-term a our as about think play. a not it's about shareholder

Operator

Our next question Morgan with Stanley. from Alba come will go De Carlos Please ahead.

Carlos De Alba

you everyone, much quarter. very Thank solid very

So a of I questions, if couple may.

Just one that see quite is of Prices working quite this on half also How second consumed cash strong, progressing quarter. you obviously, volumes in capital, do year? the the it remain solid.

you So of have or prime any a assume would what And outlook is quarters? great. perform? the run be rate scrap coming the levels? quarters at in the stable operations about HPI the a in we how That I if stabilization similar comments then coming more ask these if may And for should

Jim Frias

I'll working QX. DRI consumed and of But about first cash take decide -- capital receivables not at to look working in payables, HBI. let going If it and talk over capital, Leon million I'll $XXX is the inventory one, who's that's we okay.

balance they the way of course, do. pricing require impact. up, because if going It's expect in some of our We that moderate is how the CRU we contracts It And going much know depend sheet of the prices the on still go scrap to will increase. to year. up

well. think products we announced just as increases in I some recently price other

not QX. So, the but working at capital experienced go we inflation as in will we'll to up pace see further, same probably some cause that price

Leon Topalian

Materials, to Yes. two EVP Doug our a wanted give our second facilities. little of And on ask DRI the update Raw on you to Jellison, I Carlos, part,

Doug Jellison

prime a kind leveling a Prime just steady DRI scrap the of The very standard the facilities are performing the both the of well. of flow reliabilities pretty Carlos, and year there. pretty outstanding. world-class scrap are at excitement there. we being teams We no in price see routine, and balance off is market, see uptime, prime in our operating of quality in the scrap,

Carlos De Alba

so Alright. Excellent. much. DRI, you recently. thought much very API yes, Thank I

Doug Jellison

worries. No

Operator

hear go All Woodworth we'll right. from And Credit Please next, Suisse. Curt up ahead. with

Curt Woodworth

seen seems And the the I question, the have positive X significant First sold the of recovery to months. out markets. plate some to the know been X press, beam market in but actually sheet we've heard a get long lot product of next sizes in the in that most pretty we've specialty of

was just plate if a compare And could I products? hoping, So on what you're backlog kind to and of would those it bit across the lead levels more relative what be long sheet markets, color how times, you little you in seeing seeing provide market? you're

Leon Topalian

we a for an of for Yamato. the beam move as Nucor. certainly It's in million we automotive XX the contrast, my lot important Yes. mill the and right, great Maybe into on off, at and we a get spent want at a several we I'll ton market. for to years if you kick I've a of Sheet as the to Rex think bit point, lot point. us on But about deeper may It's think little a more mind plate, reasons obvious Al, sheet Nucor segment sector. it dive your about a of then about. think then And of the as front be you're It's year side. as does opportunities press. It's

is would Over seen utilization for that we've I so, range. that They're today, the last in not Nucor say averaged XX% or approaching XX% a and decade Yamato decade. nearly

well 'XX, through that profitability-wise. we're But the into period, of performance incredible this exemplary as many not in groups. in are the through in Order has we just strength year, an are of been the improving Backlogs move, that those conditions now strength. forecast through so but rest cycle market, some in mill improving. the of the cases, And seeing

don't include. say, that rather, in a to bill meaningful sector. passed that creating for being Rex of is of But touch long same Al, again, that on or thought exist is do why All and again, any products. of and include the in And have on we could United say none you and infrastructure opportunity the of then in what -- we conditions room, more generating to sheet? steel States plate have terms

Al Behr

Yes. Thanks, Curt.

or that covered obviously year. it strength plate think I so, That's to but speaks with of In strong. lot and is A back that it's one it now. well a one that we've move plate market non-res well. cars, all and for as this construction Construction quite are huge really to heavy seen And to starting market, of oil is Leon signs beams even the to the show is a for the all starting way and markets The of warehouse starting centered slow some not continued ag in last really markets, rail to gas come specifically, on and showing life. low-rise market, year is take in transportation industrial, to is beam gas and oil distribution, and centers, the over very, see construction the in we're cars, it's some or left been the you've weaker oil data high-rise, activity pipeline, has construction then high-rise it's of but what's very the start is car. tailwinds for only another. got been if which market life tank

continued see year half the between in see supply the of what we market. pricing we some. second balance see demand. this the That's of good drives We and through the strike and continued and product, then so And strength a plate

Doug Jellison

building comparable what mentioned, to remains Yes. Rex a very, sheet very Al on side, Curt. It's a follow Query, about Leon, just from, capability, backlog strong. not comments couple To comment the It's to very necessarily capacity. on of add.

with the On projects that Dave the both. We've mentioned. mentioned, sheet Sumoski that side got

not at that some the have Gallatin. strong, capabilities that able our see. building We're squeezing when of We going right now. the increasing online side pulling Hickman the more auto we but we Sectors our renewable produce the are construction with more. we sheet can outages. are outages We're And at to energy some compromise we're capacity on going is the -- on tepid our reliability, gal, so on to coming days out side

chip that that with the issues So on. we seen are going haven't

on So as that the we see about there's a opportunity see strength future to comes in future that.

side. sheet So that's the

Curt Woodworth

Great. for would specialty facilities in business value-add you dependent pig things about drive market on, lot a additional and that the there's And of overly Do being carbon investment incremental to Thanks. that. the shortage more into for into scope you about think like longer-term Just progression and fit metallics Russia demand I additional think and and debate support how does in think how DJJ? or of fits of more quality becoming been prime also say, there's that that higher scrap assume as DRI you curious iron the strategy? from and platem,

Leon Topalian

Thanks, Curt. And look, on I'll ask in. touch Doug, to it chime and Jim or

think framing, about your right. you're we As

some competitors value-added into As further we expanding think more of and about upstream businesses. Nucor expanding our

strategy they've to more metallics On the ago the thoughtful I'm of EAF the long-term the is long control team. prime I'm Nucor why began a our that's done. we the in facility proud of tighter. Louisiana. proud very side, demand that for and of why inventory. again, get going built to And And that And is work

reliability terms earlier downturn but after of one in up world-class reliability, that time, operating next. Trinidad, for which what in they years in this now Their Louisiana. way For capability marrying is shared Doug issue that call, has to fix with now our the not itself took shared back a too XXXX in just done long issues to on we many the reliability manifested

to And those we sourced control, that buyer new side, we supportive metallics competitors some them integrated an work as certain direct forward. the in that's United about absolutely. Nucor So, again, for and we're our control, think for sort and And through. demand But about country through of are and again, would Yes, is tons this in our facilities opportunity on and there's there million a move confident pig today. in the about be under think absolutely have the But as metallic States, of DRI that opportunities is I make strategy. think in expansion in to iron capability X.X we -- course opportunity? have there

Doug Jellison

Leon. that, to add to much Not

you a good did think on I that. job

Operator

Capital And we'll Phil Please ahead. Gibbs go KeyBanc hear with from now Markets.

Phil Gibbs

expectations quarter been now What year. of They've volumes? right terms second quarter the the just obviously of the are in first steel strong the third in very half in versus your overall

Sometimes you know get here seasonality, sometimes don't. you there. outages you're I and taking

for steel your are what So the expectations volumes? just

Leon Topalian

I would more what a slightly than Yes. you we higher tell we're saw expecting QX. Look, in that

we and greater, So some see QX. us the little substantially markets, bit not think is stronger to there do end but opportunity run for a improving we in

Phil Gibbs

flow of And did know Jim, from in remind you some balance cash statement just into tax the I for with you of much how that of notice cash avoidance assets that I new had inflows on left your year XXXX? Can the then maybe just service. some us, in was and taxes. terms putting then have And Okay. anticipated you some

Jim Frias

I'm sorry. interrupted. got I

me Phil? Ask again,

Phil Gibbs

just said on you that I flow had cash I No, the statement cash inflows. noticed some tax

the taxes some So of cash avoided you year. the half first in

I think comes tax could the into between do $XXX then what inflows effective service, million half, And in is in it be, And that your you as cash from difference terms cash of that? there in What more inflow XXXX, taxes? from have memory. was and if around coming back the anything, if Gallatin anything?

Jim Frias

Paul, number? and at my here, why he's whisper it the you give right I don't to is me, understanding. fingertips, not to and have I'm trying don't him Paul

Paul Donnelly

accelerated It's $XXX 'XX and another about from million or so in million Phil, benefits. probably about this depreciation $XXX year,

Jim Frias

make our just flow, more of of the the that's of you initially But It's to we payments versus cash that number timing the the be clear, in accrual quarterly. not exactly. Phil, statement saw

capital accelerated that is So true the related be get to benefits from purely those depreciation we being would investments. on that

Okay?

Phil Gibbs

Okay.

$XXX yes, go ahead. portion the just So the take million, --

Jim Frias

in million $XXX Well, it's $XXX get next to this what we year. we're at of But not simple statement just benefit we looking pay million accrued what to of flows year versus and that going of as line see. cash as

Phil Gibbs

that to the your sort Okay. been And a of terms second your know then you lot what right the their some outs I demand, the in in terms the squishy, been withhold has are end volume what our earlier all said and some quarter in the on lap direction. it's read kept that any you are spend? of end had mean, automotive very of tough one and hope and automotive that seeing because from standpoint? I now, markets competitors signals And have planning this manufacturers had Right inventory, year. taken you given what of of to are downtime they push later in to thoughts said today in of for they

Leon Topalian

long on to But inventory time several going as exciting nation across is let world me have the and numbers be most of one We think things we the a that Look, is as is, this needs as about and staggeringly about And automotive years, of learned think the We're question, this to take builds car our Yes. about in well million X.X automotive car the and side. in networks your replenish of whether got days and hand, to move double that. manufacturing fleets a think through it's next the backdrop in about mentioned, answer hand for dealer are that days really things this the sector. think XX in PPE, nation, low. rental semiconductors as country, directly Americans the of inventory strategies But with equipment tons to, today semiconductors. pharma, this the we've again, to investment you nation devices automotive the about I begin pandemic focus Nucor. and be kind our into to our makes we on restore it medical the rental

that to relationships proud of General the a years back Supplier be row, job. OEM more years, we've couldn't built back Our the three now I has Motors phenomenal back team done. work our that's the in done Year a becoming years, of to over

right? on It's going I take some GM while can't they None of a think going get we're do out some see going obviously, their need. in lot trucks. our to to because they and some talking Silverados headlines they're pressure, There's be the right? announced to the that that we constraints, So by you're design, of customers. building their to reading are pickup parts downtime of The is of as

exciting material customers OEM while want again, long-term have direct we where are volumes as industry, opportunity And off. have an a asking shares, So platform have it goals will to our impact bigger the significantly Nucor about strategy think that where are not today to to XX that to we unique and the investment an Nucor's be automotive. our is, overall we take up in marrying

Phil Gibbs

getting I I appreciate seeing one you that. And and are the then wonky kind pipelines. the more, supply better said chain? some of think are one then of drilling if in And seeing now side oil I your the could side competitors failed what the ask of and I also gas a you two-part. right sector? is guess SBQ is because transmission what essentially in

Leon Topalian

for begin maybe the we'd little gas. engineered Chad, then want Utermark if we Maybe start with group. is to I'll just the a end, oil backdrop. our And you provide on bar responsible there, touch don't Chad and why Sure. and Chad,

Chad Utermark

getting the stronger, we we're -- came about SBQ as we're and even gas. would lagged Yes. but Thanks, market, of Obviously, pickup, back. our things, starting Leon, all lot a as truck which the Yes, that of I heavy strong Phil. led by there's transportation, on it XXXX, strength oil heavy probably auto, classify some becoming into and the see we auto come starting constraints the overall, those equipment, talked and markets see et to part. to

overall, in move optimistic we So I'm forward as SBQ the markets.

Leon Topalian

We improved of move OCTG in and and to to all improving I 'XX just continue recovery the we demand into life the as continue Phil, rest we move of do of improve. end question to there, and think Obviously, difficult oil as obviously, serve, year the longest think your but markets pipe ongoing recover, the say, that most some I see end We're line the forward. markets I weakest activity through this prices we And forecast optimistic certainly that will energy the or 'XX. cautiously through mean, to signs 'XX. and will Yes. I'd gas, suggest around ahead,

Operator

turn our concludes any I'll for that additional over call back today. the session Q&A closing And to for remarks. Mr. or Topalian Leon

Leon Topalian

today once our important Thank well-being the how customers, in value, the Thank for you. again of your our focused most team, interest health, conclude our a great Nucor care and take teammates have of we to culture your on living our for like shareholders, and to for family. commitment by safety entire company, you our thanking delivering Nucor and and I'd day.

Operator

And this concludes today's now you call. you may your and thank We participation, for do disconnect.

Leon Topalian	President and Chief Executive Officer
Jim Frias	Chief Financial Officer
Dave Sumoski	Chief Operating Officer
Al Behr	Executive Vice President Plate and Structural Products
Doug Jellison	Executive Vice President Raw Materials
Greg Murphy	Executive Vice President of Business Services and General Counsel
Dan Needham	Executive Vice President Bar and Rebar Fabrication Products
Rex Query	Executive Vice President of Sheet and Tubular Products
MaryEmily Slate	Executive Vice President of Commercial
Chad Utermark	Executive Vice President Engineered Bar Products and Fabricated Construction Products
Paul Donnelly	Head of Investor Relations
Emily Chieng	Goldman Sachs
Carlos De Alba	Morgan Stanley
Curt Woodworth	Credit Suisse.
Phil Gibbs	KeyBanc Capital Markets

Nucor (NUE) 22 Jul 212021 Q2 Earnings call transcript