NUE - Earnings call transcript Q3 2021

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Operator

Good day, ladies and gentlemen. And welcome to the Nucor Corporation, Third 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 call will be forward-looking statements that involved 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

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

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

Leon Topalian

And afternoon. earnings us for for thank joining quarter call. our third you Good

are and Joining Jellison for Dave towards members Counsel, for of products; deliver Construction Operating our responsible Murphy, Rebar today Raw Services world's our sheet Al steel Needham, Fabricated Chief goal Business and for for Sumoski, and Slate, call results for tubular Financial continues Bar including responsible Rex and for responsible we performance the our Nucor General Company. as to Doug Dan and Commercial the the on Engineered team, our Bar of and Products. Nucor's Officer; Strategy; our responsible Behr, Utermark, Logistics; work Greg safety in Officer; Structural Jim Chad our Fabrication Frias, Products; Query, me Products; becoming safest responsible MariaEmily Plate executive strong Enterprise Chief Materials responsible for our responsible in

XXXX in history. was which in the of ahead is Nucor's performance safest year Our slightly last year,

those eliminating injury. which risks identifying is team and to could Our to committed lead

Our value the health, is and our safety, well-being important of family. most entire Nucor

once achieved results we the $X.XX. again record earnings-per-share quarter, of with During third

performance together. business ever quarter on advance goals. our set incredibly year, been entire our Since would and year, $X.XX founding record focused in them with the safety of of that before, congratulate to and like than phenomenal seen proud we in and help success XXXX. we years delivering sustainability our growth at quarter have by objectives. own XX meet third their model. see accomplishing More what matches Our previous to this we sustainability full-year I opportunities Nucor staying team of the customers Nucor's partnering of surpasses earnings I'm core team ago, of $X.XX continued second back has our to so far we're our record this nearly the while set for our results the

but the provide a Our recent not from of our line products that carbon them the value trust a that purchasing launch of Econiq, meet zero future. only customers which their Nucor sustainability confidence them net new the steel is goals are help will for products and they gives for proposition differentiated emission

emissions is XXXX, future. process. be of a offsets advance emissions renewable Our electricity General scrap-based the customer remaining applying to our Econex high-quality for that global to from XX% steel slated for a key Motors recycled intensity piece going enables our by at any below will GM's the current steelmaking net early Econiq. still the XXX% from technology use negate credits delighted Econiq us of With operate GHG further X industry. We're leadership EAF and our carbon position of be to first shipments first vision owner for scope will zero

sustainability of And I'm first be report aligned can model with products. our corporate lineup, We also end Mill supply information markets their As Econiq the consuming along across segment. carbon of all look their SASB steel you report to will reducing our more report and other found hope new and broadly our meet towards forward chain while goals help from through work and numerous to GM throughout customers we on nucor.com on TCFD topic aligned and emissions their to electrification develop this sustainability, updated Steel find continues sustainable deploying useful. from and informative more

of our the mills HVAC, Nucor imperatives our approximately a and state-of-the-art strategically, cold to The be transformation core, the to annual by is continue quarter on initially agricultural, engulfed. help sustainability. new X/X Northeast. eventful very culture. X products Midwest build tandem to be And mission inches, to country's up economic mill. million the that is the mix capacity. This with to live Nucor a market These Midwest and a galvanizing consuming serve heavy our driven value-added and We beyond, its transportation, third announced grow the expand rolled XXth, equipment, closed investments The mill announced of our where position structural to in will U.S. underrepresented width several COO as was September automotive share on for us advance appliance, market dual lines, undergoing construction a product to one applications. regions we The XX cold will steel mill steel will will of the plan sheet and currently located in grow Nucor largest regions, from mill Company's efficiency are the sheet tonnes with

positioned our steel market innovation and than execution, nearby leading mill Our With Nucor record and is have acceleration, this a to and transformation. be will of carbon uniquely continue state-of-the-art strength multi-decade track lower significantly financial footprint competitors.

represents our a remarks. will while out expand of Our repurchases. in west. our to investing this acquisitions cost return that at continuation of opening allocation. returns this share of substantially approach balanced income XX% projects stockholders Sheet plans combination continuing announced generate capital, Mill in further capital to greenfield a to expected Jim least investment to Nucor's discuss to also and in his net of recently we and our through dividends exceed Also,

in one This capacity in our growth at facility to capacity XXX,XXX a market leadership typically our melt the positions on We region, position and which new infrastructure Nucor it. of the mills States. adding bar of existing the shop build experiencing that to population tons have will investment the annually United will melt both Western is build accompanies

very steelmaking group XX bar on where it our ago, years capital. over Our mill generate returns to continues is and attractive started

our are executing prudently we to addition investing expand to beyond. steel In core grow to our opportunities businesses, on

serving Cornerstone offer markets, of a steel able solutions. warehouses metal aimed of Each panel insulated products We're to broad now the insulated fast-growing and manufacturer. these we business as data metal and as acquired as panels squarely range well Industries, a During is quarter, centers. such racking racking businesses at Hannibal

more end-use strategic attractive, economy rely investments continue be at and as evolves renewable Our will Internet-based to to growing, markets to services. Nucor there power aimed serve on positioning

family. to are We welcome excited the our newest to members Nucor team

can resilient are requirement As Democrats workers, steel passed. ensure to infrastructure. of to can get path Company's Century the opportunities In this in hope sustainable growth presence bipartisan economy, extend see, sustainable green you our position key miss of urgently find needed a and opportunity. cannot afford creation. safety this agree forward our a provide health steel our have that attractive our the bill capabilities the to for increase and XXst Infrastructure is order the to Bill of and needed, Republicans a modern, American to long we and to Nucor's and markets Congress adding products economy of and is build future that citizens, and value Congress economy, we record we

I to our the me to Before a team. take over congratulate Jim, turn call let moment

while responsibly, the results X We steelmaker. in and will months these all to of year can thank of capabilities you you Nucor to you the if the reliably. Thank do value and provide again, each the our our our the as you and Nucor's Once And year, of profitable safest what most you end benefit in a and make strong diverse You facilities let's in history. market XXXX very help for our all first for to future Nucor approach should continue differentiated achieved customers be of only the invest running of any proud are of what conditions we from win. most safety financial year. to safely, set proposition do. offering continue

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

Jim Frias

Leon. Thanks,

to report our quarterly diluted quarter proud are $X.XX We share, record. of XXXX a earnings establishing per earnings third new of

earnings favorably compare also third diluted share. results quarter's year-ago of $X.XX quarter with This per

We $XX.XX customers creation annual Due products slightly portfolio diverse strong than per continues Nucor's a below for were shareholders. share. powerful Nucor's capabilities. to earnings from profitability per be are Nucor diluted per demand inventory diluted across product are of more share to $X.XX higher-than-expected and earnings earnings benefiting of profit Year-to-date and breadth guidance driver of eliminations, value and quarter to both record XXXXs $X.XX third share. of diluted our $X.XX range double of

upcycle We this are year the pandemic experienced the through of current team's we and performance strong challenges during proud have last. all extremely related our and

competitive Our in never Nucor's confidence positioning has greater. been

rolling commissioning years and well over the period. profit to completed approximately our are XXXX each billion team. the life-to-date hot our returns opportunities projections. investment mill, at galvanizing our rebar investment aggregate $X significant mill, our over Marion, Missouri, results original XXXX As rebar the sheet reinvestment rolling line our execute delivering X operations capital the months our strong specialty execution projects band and reflect micromill at their and mill Arkansas Kentucky at years, the organic modernization micromill outstanding look these in in mill, sheet Florida, mill product full from in ahead, on growth The ability above consistent we rebar of further cold startup in by and representing Ohio projects the to in the

together generated million. quarter, $XXX capability exceeding projects two additional EBITDA During merit comments. this mill expansion past sheet these projects completed The

$XXX value-added America, positioned Gulf inches tubing, serve third two to North widest at grain The this ran storage. design operations cumulative in automotive, the capacity projects line in the September at hot-band of uniquely facility EBITDA and after lines, as investment, beginning of Colbert, XXXX, line exceeds XXX% the XXXX. XX and and quarter solar such towers. galvanizing rolling Just markets, is in years Kentucky cooling is wide the hot million galvanizing of

these continues the mill beginning and locations Hickman's After facility another Arkansas specialty This to strength, at project's congratulations Hickman high in the Mills Cold at OEM flexible third cold for demanded our cold lightweight the early XXX% quarter exceeds especially in mill half products team great capital an capabilities XXXX. you is applications in capacity are Specialty EBITDA operations already still story. developing success to by your and mid-XXXX, also cold to Further, cumulated the produce of To rated ran outstanding be unique the investment. that the of Next, mill process increasingly Nucor, very leveraging thank across work. our product customers. and rolling teammates of

aware, Generation start-up Hickman, is the galvanizing the are commence. production on with you are expand and will of X installation. fourth in the Sheet XXrd galvanizing At approximately two the flexible more for the outage further quarter. most schedule outage Hickman of modernization during on They production product and Prime XX-day into projects major underway are investments Gallatin production. As capability begin a startup December. to sheet of Mill. begin will Nucor's final and billion expected at line will capabilities line equipment Gallatin the November market. commissioning sheet also capital a commissioning flexible hot-band After, These the $X expansion totaling mill's

products about into next our Located late startup Project-to-date in market and million. a track positions while Looking the $XXX on of U.S. consuming mill able team capital year. leadership in $X.X towers billion domestic plate the mill Brandenburg, plate to state-of-the-art this of support the of produce largest plate. plate position is production constructing totaled Nucor for consumed XX% wind XXXX, spending domestically, region to middle securing Kentucky

provided capital to of billion. billion. cash Turning spending by activities was approximately XXXX cash operations sheet. flow billion balance $X.X months the $X.X $X.X cash flow for about first was operating free minus nine Cash provided by Nucor's and the of or

short-term For million about now full cash capital the a spending our decline we holdings and X.X XXX of level. cash investments year $X.X third restricted At billion. the totaled of XXXX, This estimate close from second is approximately billion. of quarter the quarter,

from to of and bonds the At approximately quarter, was grow was a to funded shareholders. XX%, returns operations, provide the returning minimum to significant million, debt $XXX X.X including primarily project. funded long-term quarter, $X.X of ability expansion totaling cash of totaling cash ongoing green be capital receipt total from uses capital was about a to Brandenburg remain a as third issuance including cash attractive approximately close $X.X portion cash of strong time. of continues were of billion, of underpinning third the current and capital billion. debt income while inventory, Financial Nucor's power cash over committed XX% and XX% spending cash critical of plus total of repurchases, acquisitions receivables, $XXX percentage investments to total on payables, capital debt dividends, tied Nucor and share a capital. and the to net share We long-term approximately Gross dividends our the million. and strength net drawdown from of These uses through earnings repurchases net of During million accruals million, the working of of $XXX generated billion, XXX million, Nucor's XXX short-term

cash the That year-to-date consisted totaled of this repurchases. and approximately for Nucor's capital shareholders represents of billion. returns of to $X.X For dividends XX% first net months $X.X share period. billion XXXX, $XXX of returned million almost income of nine The

$XX approximately shares at an the million over average share. cost of average cost totaled During share. million shares we quarter, Year-to-date $XXX an repurchased repurchases of third XX.XX per X.X at just per

first of nine outstanding Nucor the X.X%. decreased have XXXX, by Over shares about months

will approach year-end, Nucor's consider Board dividend XXXX. we increase for As a

dividends every We have increased paid XXXX. regular and instituted year quarterly in our dividend since were

end Since significant and sustainable the repurchases both power quarter. production grown have XXXX, to Issued in same bar the our approximately XXX of have has XX% XXXX Nucor's we achieve about X.X see us businesses. shares consider been framework for XX%, capacity the reduced steel from tons. Board's helped investors. effects and shares that of of by moving will third expect our more value-creation the Over allocation our We million end deliberations we the the at than recent million to the end XXX at shares capital million our earnings period, by outstanding of

our We of to have also about million [Indiscernible] tons X business. capability added processing value-added

more X products Additionally, grow capacity tons. our construction further projects more have sheet tons our capacity under plate significant power earnings million to respectively to steel than that and for our than has increasing we grown X also and by million X will decades Today, come. million

missed generate in to XXXX, a it per but not than to share Nucor's earnings having are ability year should continuing be grow. We remarkable higher is

XXXX, the Turning Nucor. robust we the outlook for demand by the quarter most are encouraged conditions ongoing of to fourth of in by end-market served

well backlogs fact, strength same order at the into Logistical At time, continue a In remain businesses most risk economy inventories throughout represent the XXXX. to our customer factor. challenges lean. of suggests relatively

of The will or our Raw in be challenged of having likely Compared quarter. duration segments. product business. margin However, mills quarter influence in in moderating We demand steel prolong steel be to is at the segments' DOI the fourth third this current this economic Materials the favorable pressures third expect the by achieved record on we the believe earnings our level may earnings and XXXX cycle. at growth quarter, are to near performance

and X We XXXX future. in are of our months encouraged by we great see first our performance opportunities

we for are long-term our value our Operator, to your ready Living questions. performance. you committed interest now Company. means We for increasing driving in shareholders. our delivering are for Thank culture

Operator

moment opportunity [Indiscernible] first to signal our go Deutche allow a questions. We'll to with We'll ahead. take for just Thank you. from Please Instructions] [Operator pause everyone Bank. an question

Unidentified Participant

would could my requirement if annual inflation. mainly steel gas your talk remind of the Yes. for the you're gas exposed cost helpful is than is seeing mills? on for spot My Hi. by Also, other what Can or side you natural own is how you covered us have gas wells, percentage to Thanks and you. Thank Good about you pricing. from that your the the production first DRA question your natural questions. and afternoon. scrap, taking context cost what much be on fixed-price

Leon Topalian

I appreciate the you Thank and question.

ask the obviously mostly affects that labor, of details. that we're at domestically. in start segment costs in, energy Let to coming again, and me performance the all how bottom-line Jim and across on and whether some they're goods of again, chime Nucor maybe But scrap, and services broadly our looking are

we're in our and moving constraints, supply source those of trucks seeing and we're out, in the watching. we impacts. we're as tracking But little and at while getting some barges, and impact. costs with look certainly those in chain as some are from sheltered we cases So, obviously cases having shifts certainly labor, What seeing at so most products domestically an following most we energy, and here -- a been we've of materials, look

We the years we've over that drill. have wells to gas not natural continued

again, see how believe sustainable. that we will a really that's determine it's ongoing -- anything how part market long Do how well bullish of into moving are about forward, And do to analysis Jim, of add the continue -- the you'd that? as we as However, we that our question now future? believe we move we future up, team’s that analysis now to

Jim Frias

Thanks, Yeah. Leon.

active We out risk, to a cover in hedges Company risk consumption about commercial our gas. of at management over have have right gas risk especially price gas as team we into cover total to going consumption our energy And XXXX XX% related that and place do looks that an now. natural

with obviously So, we're lot place. the costs, hedges that it's of in have seeing by being but gas some inflation a we offset

Unidentified Participant

the for the versus were led planned color that down also see. My shutdown expansion improvement? look normal seasonality some an quarter-on-quarter for and Mill about should Gallatin guidance question quarter-on-quarter. what for quarter shipments on decline your second previous is for And the you'll we provide volumes Thanks you given color. how X% Okay. the on fourth Can shipments. at the to

Leon Topalian

Yeah.

X%, our took equated We quarters' Nucor's We again, and in operating from perspective, down we worth we've down. down the of mills we because our a $X.X largely time shipments. and Group. a we week to Mill the guidance performance, think our that generated outages sheet of was me of better were that but didn't think Let against shipments flows. that And Year-to-date, cash is of at across measure each shipment’s as approximately miss the about roughly Sheet think billion that performed cash perspective, because were be that about about We clear. took how period. a our we of

in that. generated X.X alone, the we quarter billion However, of third

earnings accrued three accounted the or of in nearly the year's overall were So for half last months.

of to driving the drivers very, take With we in you terms that piece more that and So, we that, that accrued the I'll interCompany demand it our color for Jim, let him performance, that. a robust. or remain around turn very business, through our eliminations. they underestimated accounted The was little how

Jim Frias

Yes. you, Thank Leon.

all, There in of been on use what let XXX.X in about First each quarter. the first year. million the in they quarter were me elims some third jumped in quarter, million inter-Company XXX.X XXX quarter, second to this have data million the and

let's talk so, about such jump large by amount. why And they

demand that year, tons. and was has because And and Our down inventory, talking that steel around the trended been for have finished to sold It's a that downstream needs sister normal goes from quarter purpose. second steel down products It steel X.XXX million I'm the that tons. this million business of interCompany division fact, end about up at X.X some amount of market normally go a to the down, in of time-to-time. strong

down than million normal third end the a of X.XX tons bit. It's more up the what that of now quarter, third at little a quarter, And the we came inventory in tons. would XXX,XXX So consider level.

in inventory miss around the up $XX our caused us And of tons and earnings of most didn't or so and impact was our million. by -- forecast equivalent very about share. That went per that -tax margins earnings XX,XXX -- the our pre it forecast happened about So to $X.XX we by within that September were and on roughly large it. by XX

because much accounting the -- our It's operational as we we vertical call customers business. it out a to it's was happens, we over it advantage interCompany of thing So, strategic that's view to that's XX% tied not consumed is that item integration. a important an something view fact issue. would onetime steel We so have by as that an in-house our

we inventory quarter a we little And required, a enough September they stepped so, have that -- in you incorporate. in don't specifically and up the we it a in in little the and way hand-to-mouth. to them had September, see Wasn't and

sell many customers, it measure quarter. the until You the basis books only internal have at there's to of timely that to way that we what still businesses end so close that was on steel and the And a us for the makes happened.

Unidentified Participant

clear Thank for -- that. very great a quarter. for thanks Thanks and congrats It the on was you.

Jim Frias

Thank you.

Leon Topalian

Thank you.

Operator

next ahead. our Seaport take with question from go Partners. We'll Englert Martin Research Please

Martin Englert

everyone. afternoon, good Hi,

Leon Topalian

Good afternoon, Martin. Martin.

Martin Englert

increasing we're maybe substitutes? EAF increasing American Rolled strategy that on are briefly, substitutes North technology anything and touch more you the there for or or your in Given imports Flat scraps that of market. metallic prime you on Can the seeing undertaking metallurgical that capacity front with scrap so is

Leon Topalian

to the Trinidad and areas, our facility material produced the and Yeah, we that our I'll many, Materials. us more I'll Doug begin us that to iron of control whether Louisiana amount DRI, goes in in give built to was very different EVP with out that way That that gave iron Raw subsequently significant in something years long a we it's of offset Martin. details balance then and a build many had some a turn in what the Jellison of of internally approach of more are kick off pig DRI ago to us it obviously units control It's certainly some Nucor. focus back then out. could to and we

as on exceptional it's big had we're moving we in with well performance calls. at up been started that But of Doug, many some has Nucor Xth our the team and those in how or in had speak November they're come of that documented the mix The I these significantly. want since 'XX. look of years, the outage Louisiana the we Over we're looking about reliability challenges of some things Prime balances to Their at we more has forward. specifically up for you quarter

Doug Jellison

Thanks, Good question. Leon.

with some I just bit capabilities we that a detail putting around think start little of the I'll have.

sometimes lose sight we think of I this.

capacity tons recycling X.X is about million have which our We in obsolete. of primarily yards,

We about million of little last scrap a or a have is what grow continuing And a see controls six over that call tons we year, prime sixfold the group the there. years. a that in five over Industrial which we about increase to

facilities We then was purchases have the X.X that's that, group that talked all brokerage about use we all about that manages GRI national million our tied our the tons and of of capacity our with international of and purchases. together

So, different can a many react that very we and move of set in capabilities have we markets. robust

see we them use best place best value for. our and to growth take be at able get we'll to the capacity, As steelmaking of the products the

So, sources. using now rigs may different shift might places, from we places that be DRI different other that them with to backfill

improving grade things constantly better time. at recycling new looking our the shred. We're all we're produce As yards of far technologies, as to a

new constantly recovering around that non-ferrous here, world, of more are We broad wherever increasing value and then way a it the is. scope the materials just technologies and

we're doing. So, aggressive and comfortable where we're what with are in pretty pretty we

Martin Englert

think that and that historical you think you've to do obsolete undertaken is that that grades what's scrap average or higher? you ongoing prime enough what relative spread maintain there's risk moves previously to Do the

Leon Topalian

-- going a on certainly there's without what increased to Martin, be doubt. pressure Prime

we if and Prime about and the as roughly applications. scrap. is mills me end chain But value at more sheet our the wrong, I'm demanding of correct up day move XX% others our make and the mix Nucor of As

into it's So, that need. a we of not were XX%, at XX%, the involved commodity mix XX% that

a what David this DRI Doug we've going the what grades, the increase, don't Joseph the in relationships that we today driven doing offsets between today and Doug been those do feel to believe what's in pay where we're end-use DRI set product the requirements. DRI. that what we think but Yes, in done, the market mills and positioned We're keeps mills because we using we it's to will and which we that incredibly that mix going currently level a of but usage, again the but good building we've in are it shift increase? actually It obsolete well prime with will for mentioned, mixes. that are but rationalizing need and some other required, with Company, generate customer are mentioned our So, commodity governor the what

build to as again, be we make to we we the markets. positioned applications get and mill, we feel into highest new the need, we in well grades automotive sheet as this So move that very other the able the that to mix want

Martin Englert

be when ESG now, another on something blast basis? helpful. all I'm but would talk are back some probably consider Thanks the been DRI, you given for detail there, hydrogen been that's that's sure focus curious had a -- I'm like furnace, it would years about potential off back there the the when Louisiana you pursuing which a slag and table come wouldn't

Leon Topalian

would is going to to two chance blast is is Actually, and at there shifted and Nucor a then this Martin, blast first I timing the furnace. furnaces Louisiana at the looked point we I zero site you tell the reversed building actually think build at DRI.

your reforming here hydrogen and whether to evaluating, cost around its it's the sequestration to comment However, hydrogen whether that business. it's impact we're to

particularly the We have more making, on we're to and going some a Motors making first General significant. that in to some being of again, of family in automotive Jellison a and inquiry our that with steel and a part edge steel we're and products, been us was that product Group, customers, But that further. since the to And cutting interest Nucor's for to today in move big future. for team that Econiq, are that's the of invest very announcement, fracking. going to we're our Dozens sustainable close under Doug the that to going it's net-zero that 's launch demand that offering of sure of and stay explore following Relationship customer technically technologies

Martin Englert

get you --? versus for product that any type premium Do of line

Leon Topalian

Yes. Yes.

Martin Englert

do. you Yeah,

team the and for all helpful. interesting. the the Congratulations on Thank Very you quarter. look on forward color Okay. next to Very detail. you quarter and to

Leon Topalian

Thanks very much, Appreciate it. Martin.

Operator

Will next JPMorgan. Michael Glick go with Please take ahead. from question our

Michael Glick

following inorganic capital your projects for analysis organic, recent other acquisitions, or and growth growth should think how on Just we going incremental, about mill your projects, appetite organic forward?

Leon Topalian

Let macro in. me Jim, start at the jump please and

to As we're to growth going and we Nucor's about think continue grow. Company,

statement, it's is culture. live core, grown times X our mission shared expand and Our several words: beyond, I've the

organic both And Brandenburg next mill We're growth in so, going completing those sheet to building those year. Brandenburg late look of about and coming continue the and online projects a announcement the our to things going we're like we're to look in for excited Midwest. so projects

So, to to are as as give what we're one us a and that look continue those position. going well that standard at to look the expanding at deviation removed differentiated continue

acquisitions the us gave -- business market a over half market. insulated or the metal insulated that's today. leadership in half nearly of panel the So, building pedal position market And instantly growth of

the Hannibal as on with of those storage about the storage think The data we move green we Those be cyclicality. is are will significant and type As steel. industry, steel focus racking the growth forward. warehousing economy digital built in cold economy and not growing, under are

on cost the where are detail, you returns. those continue So, to many can I but focus capital get culture our bring our very for continue areas. would irons tell to above in you're based fires that Nucor going approach, deliberate, to of on significantly still to I grow into there see believe Nucor can't market-driven we a

Michael Glick

volume really the this fabrication shaping you peaks? versus is perspective pricing of terms strong backlog a quarter. and how a on Could that bit just book And obviously, up in then called talk business, prior about the from

Leon Topalian

products Utermark, there. Yeah, since -- who's certainly I'll Fabrication over some will. I Chad Actually, ask share to our detail

Chad Utermark

and non-res Leon to Leon. but it, that's economy as with that? demand products, across it's are the you quoting growth breadth U.S. we also industry-leading and in groups backlogs. the as and all that firing the probably distribution activity continues very all-time steel be When some forward seeing XXXX. a place. to It's our at all very arena, and businesses in is it steel we we product been really downstream happening. cases construction very then strong we has cylinders, plants. overall, consumer on red in expansion warehouses, our And have take backlogs touched backlogs Michael, creating storage facilities. digitization of is and record centers, healthy We're across server why this look on of robust our look And see starts most manufacturing you, a significant in strong a backdrop for and Thank all

far and in as continue about we healthy we're our very and but phenomenon, to XXXX -- through excited a that's obviously, downstream pricing market-driven it's spot, a moved As up XXXX very beyond businesses. in really see pricing,

Leon Topalian

Chad. Thanks,

Chad Utermark

you. Thank it. Got

Operator

from question Stanley. with check mute next Carlos, Please your line Alba our ahead. de take is go your Morgan Carlos Please We'll open. button.

Carlos De Alba

in seeing and you helpful. terms And much, business? how Thank of on industry terms as of help very end-market comments has prime maybe understand your how a -- do you beyond. reported if as In the what so do we're scrap need? you're seeing coming Any And how very for obsolete of last we're -- in the much you your are well constructive months. fourth you range, comments in What your data times for to obviously us terms outlook in and versus in Can -- industry the this even down will as obsolete, then reconcile but few can the a lead what data comment using? is the it scrap, are times, everyone. mix be and I showing much And prime and quarter DRI. evolved, lead seeing

Leon Topalian

latter off Doug widest I'll other America. offering has within product the of and address your Nucor. steel can terms Prime segments your seeing are on kick any maybe around market the in we're question on maybe Nucor of Carlos, and question Company grades. North there Look, initial Yeah, in certain us what

Our serve arena, happening. provide ability to obviously heavy automotive, to backdrop sectors, end-use a the markets insight renewable unique Ag, from what and HVAC construction economy, the is digital equipment,

seen half well Chad there, XXXX. into robust as mentioned, of demand products out into construction move we the mentioned, is think As about as arena. our Chad The

supply that I'll for today, Nucor's X.X the our disposable of very X into a see but income going unique at automotive that with One like the automotive. tons markets come when to The slowing automotive in move is really going by are auto is shortage to XX% we X.X and want that. the that to slowness, something ends companies into increase. We overall million some So, we're to double that markets chip industry, chip consumers it's shortages boon X some that's continued United opportunities. demand heavily certainly pent-up no in are If And we're seeing touch but for think at next the over not with, laden people that -- from Nucor to mix, that all. familiar two the the million years. Obviously, well-documented, there and I subsides, also on. be States

is more to So, or We is some rebounding some construction. I but supply chain seeing demand-driven. that be it some I and it's from the we're not elasticity the think of issues other in think constraints, in is going see there a

sites we're their issues, seeing having are across are getting finding customers trucks containers overseas having they're deliveries are or if and then or waterways are While parts up and getting that chemicals overseas getting across, that the their there again, being some strong, ocean. the jobs demand is requiring trouble, in slowing needs end held because from

that are pieces see are that. being of think again, the maybe some fourth there the very anticipate in question potentially So, But again, prime. the to we that going but eclipsing could we that create quarter see softening opening we'll wait it just and record, on as overall, I QX to Doug slightly around or touching of this stronger. that, strong be results obviously robust

Doug Jellison

Yes.

the of cover is of mix question? rigs DRI. all about and mills, look and you prime our about Did our across steel XX% I scrap, XX% If

Carlos De Alba

just the Maybe the obsolete. right? is different of obsolete, of grades Yeah. Or rest neck

Doug Jellison

and There's balance XX%[Indiscernible] in obsolete. is there the

Carlos De Alba

much. very Excellent. Good Thank you luck quarter. in the

Leon Topalian

you. Thank

Operator

We'll take Paribas. our go ahead. with Exane, next Tristan question Glasser Please from BNP

Tristan Glasser

you questions. Thank my Hi. for Yes. taking

able X.X know lower off-takes growth first capital, to the maybe one-off weakness working if be a the there? billion could cash some any you And in can, in projects you and there in soon some also, on over The you'd the due don't I expect mentioned all related you impact was QX, price one from to you OEM cash is use was or QX of release it FX? think or still what

Leon Topalian

them -- give look the it question I'm just not part make I was performance to let around capital, have trying clear on wanting me working you I Tristan, of the to of the -- were get. or? you gist initial sure what sure caught QX understand the

Tristan Glasser

was still in there if elevated what to you any you in think had. impact The bit if be was to on And capital there's use came going QX just expectation one of Inventory we can of cash I compared working working touch your is build effects. capital. in if wondering a price or also, QX,

Jim Frias

us ton, Besides you clarifying owed about much they valuation went inventories we're each It inventories. XX went customer days up. went and the of up. issue. building portfolio, only both an Thank it Frias. well so finished talked by go value tens in up for went either and still that question. really Jim much, the in didn't The of a per tons of value is They inventory I as significantly receivables, tons essentially wasn't of This price the for receivables our up up collecting goods, thousands Company really scrap the as was of evaluation of

billion of we cash receivables $X.X in about payables in QX. inventory so, And used net between

at could So, the as that we've third we but expansion, think about QX, rate margin the we think some not be achieved quarter. in same there

to dramatically. be going capital's of think but a it $X.X working should number won't we nearly billion that cash at level. down We're not So, forecast be use

Tristan Glasser

see to That's XXXX? a have the a year gain on visibility notably the to you lower-carbon How savings, second way COX margins opportunity really given automotive or going generate. next market? to rather would able be maybe on helpful. you and your boost to be question the for see interested as And know maybe you steel, share and you're to tonnage commercial Do this Econiq market in of much

Leon Topalian

to Yes, the above, Tristan.

not to excited both Nucor's proposition do this as as there your announced, about with -- with yes, interest wider. to with Motors, be so a the provides beyond, General is differentiated auto but we're again, pieces the partnership we're to working excited in the question. within value value-added. the other we're capability that sector Yes, much just companies but and So also able companies, in of other

the the think significant you at is volumes. exactly the insignificant quick. that to scale, going say very acceptance we're what significant family. our talking we I'm going supply piece going for that But Econiq not about So, volumes tonnages, to are. Nucor's that when we and tell other it's is of to market What not be we're also into be that talking tonnages to going state is I would

tuned just because yeah, so, to stay up ramp very And quickly. going that's

Tristan Glasser

you. Thank

Operator

We Hauser next will take our go with from UBS, Andreas question please ahead.

Andreas Hauser

much. Thank you very

the ultra Just a follow-up question on [Indiscernible].

looking in obviously one producers. in that. ultra-market? hearing well of as to seeing the capturing you're that arc more share electric market were shifting they also the been it market you been the confirmed your obviously, want certainly furnace that of here guys And, peers seeing that have more the capture second far second share. Are half year of You the producers half How to orders in is We've so year? that

Leon Topalian

excited a family We're providing automakers output. the the nation. And I tell opportunities that to Yes, going you then very opportunity to the is at market. end absolutely. And you going piece the done of this day, quickly in a that commitments OEMs major very, -- in building up of that providing specific net-zero ramping again, amazing numbers, I'm about with again, give of steel an team has net-zero serve would job the the our and not to the in is but a be relationships Econiq

their with producer. unlike order goals, we for differentiated have them proposition believe got other to offer steels start reach value a to any So, to today net-zero We steel. they've in those a

about that. very excited So we're yeah,

the quality be It what high-strength anywhere the will past. built with very and capabilities carbon very, significant focus It new mills we've up is move mill built being share and and is the market part match that the again, to in that's The footprint Our not chain. of advanced will continue growing. differentiated. in nicely is And there value mirror world. provide that steel lowest

and that relationship about that excited the Nucor's tremendously again, we're, So, built.

back-to-back Nucor's worked ever that X are EEF Supplier a the of in fruits years, row relationships lot GM the a receive hard, very so paid now but only work again, award. a and it's back and to We've the that built are Year are years dividends. done that We to the producer at of of been years

Andreas Hauser

you. just Thank on second And this very question That's a year. maybe of half clear. the second

into stays you So stable been a shutdowns any to restocking guys maintenance little ensure obviously fourth at Have moment. your ahead the bit volume shutdown the in we of are season quarter? maintenance

Leon Topalian

little Yeah. we color over I'll about of as our think EVP we maybe as about to startup Tubular. a switch him our is Rex, broadly think and and specifically then that Sheet of of who the just bit Rex Query project. Gallatin

Rex Query

outage plant various Andreas. question, the we're common may that start at and It's able on. broader we sheet and at the have having a would have practice mills. I with needs us an look we'll from for plants a outages extended X Appreciate on to sense support a standpoint, Nucor customer's as going

the prepping common about and December; the that's expansion we're to concluding unusual We've the to and progressing right accommodate is outage already going outage. now soon well, up of notoriety shift time. been be getting going for that's with months pretty largest So that of We'll that outage and most that. a we have conclude excited ahead that's coming our for us. it for Gallatin not in that's XX-day practice, between to plants we're the Probably supply with

from already will can we other to coil of sand from have had of through we'll but have So, our some we galv care also, shift pickle and continue take continue customers to plants. so the there, that line

Thank on that, prior prep of volume due to a you. the sheet the impact So, time. our you'll based ahead on total minimal see side and

Andreas Hauser

appreciate question. you. thank I you the Thank answers. much. taking No, you my very Thank for

Leon Topalian

you. Thank

Operator

our We'll from David with Capital next BMO question Markets. take Gagliano

David Gagliano

even about XXXX on to and ask for thanks just XXXX this some insights questions. Hi, potentially spending point. my at taking capital I wanted

Jim Frias

up won't that -- are the year. final bigger give color But next projects Frias We around this our you year don't is have some wrapping this Jim and yet. have in budget

flipped an document we my when has that information. So, to Yes.

range. that million think the neighborhood For fourth we million there XXX in And is XXX million we'll quarter then be spending the the year in somewhere be XX range. in to to cap Brandenburg, in million XXX of next that going to

going line five in the the up I expenses of at to the start and there's in. carryover quarter, the X in quarter bills the but it's Arkansas, come fourth when For was fourth because roughly when galvanizing timing million always of

in bigger probably X the another those be million items. fourth quarter. probably XXs range year. XX are Gallatin in next So there's first in the year And into quarter spend in will and million the high the the probably next carryover low-to-mid

we So, a have don't budget formal yet.

have We have in them and to plan capital our with go December for the it. improve Board

year. So going level in of give the year, in we're but think this spending wouldn't our a next dynamically to up than I this year different be appropriate doing us number be for going to be what range total for don't is it's to

David Gagliano

that for a for XXXX-time follow-ups. That's the you Just line do sustaining starting XXXX, capital up in Capex other question in new will basis? quick of the mill, what of one an terms What share you of that's annual [Indiscernible]? couple now on the the and say when one frame, have is --

Jim Frias

half, can if about Dave you and ramp first mill's the you do or -- I'll Leon could talk for Capex. the new

XXX think so million in of So, the year, being we maintenance of Capex neighborhood per is first half. that's

Leon Topalian

David, than but. you more a of just maybe little bit Maybe or What's color asked for

end. finalize we the year's site 'XX anything will the of well new and anticipate to think next step of As Capex 'XX. ramp which for midyear be about of much really that start In as XX, into is don't XXXX, by us probably Really, up, we early materially. maybe see about think we selection, mill,

David Gagliano

Thank helpful. that's very you much. Okay,

Leon Topalian

Thank you, David.

Operator

gentlemen, question Ladies and ahead. final go from come Please Bloomberg Intelligence. Andrew our Cosgrove will with

Andrew Cosgrove

for thanks question. Hi, my taking

sort carbon clear forward. advantage against And protect obviously curious advantageous Steel. the given for some if about that in on one section some talk adjustment Washington that produced there's quick would U.S. at has a producers U.S. low the be was to to carbon in Just a border respect XXX, XXX fact obviously with future, positively I replacing the any point imports of with been going

and are. been So that if what was guys’ you about any there's talk curious thoughts

Leon Topalian

Ty is you've would work framed in you well going very now what's the to already and Look, with they concern. certainly job, the Washington this tell the a and Look, the very we're a Secretary to Ormando there's Europe. it piece I what Andrew think Yes. know USTR market, in a the Katherine administration conversations, have they with of continue absolutely done issue and been is being again, know is very, conducted with great industry well I the works a

XXX should economy, those that's overseas steals rate see, the States, think what going most it's built as very outcome to so, in to Congress whether as we dirtier and there cleanest away, like is are and think a we'll the final environmental tariff EAF not that as the like it obviously a a but of the members projects the the advantage. the with move And we quarter. consented you and looks from producers, be found in But energy we renewable, companies well significant about think advantage, is in House from mentioned, world, sustainable, with as but American the huge about about there as important when steel of United Steel Nucor think we piece consumer, other recognizing green and are here a both built that the renewable wait

Secretary new will nations XXX you again, and that's understanding to the an have high is product. vocal. and tell but to provided also again, Steel negotiate table advocate, to adjustment Nucor's tax going to it better can't away point, for in some commentary a to negotiating a is that We're we're vehicle so not Katherine apples-to-apples bring when because go on order a and if Ormando happens, what continue must at but and we ounces so, but be arrangement. the our very going Ty to regard And other include analysis there's it do issues I and trade

Andrew Cosgrove

should of Okay. additional expect X.X Great. at Gallatin briefly the when tons row last approximately we just you one just Thank be million hit the to schedule? about ramp-up you. just And cadence then just the chat would start-up the could the if quickly

Leon Topalian

our Rex turn that again, EVP over to of Query I'll Yeah, sheets.

Rex Query

you late be as producing then Andrew, that'll first quarter mill begin, mentioned, and begin the just latter Startup additional next I focused stay year. project, tell you so mill. X.X million-tonne sometime we'll total outage year, somewhere after would mentioned. into the close the tonnage bottle startup half -- into we be the quarter. tonnage continue We've would that will like December. the on through would that around of somewhere the this we -- basis products to and tell The through will that as first For targeted for next million year you tonnes I in the mark. that's

for tons. XXXX, additional For the

somewhere that's million year. X likely be that plant to to XXX,XXX through tonnes So in next

Andrew Cosgrove

in -- Have great gentlemen. one. Thanks, Congratulations Great. quarter a the

Leon Topalian

you, Thank you. Andrew. Thank

Operator

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

Leon Topalian

the our capitol we day. on is well-being continued health, every you you safety, solutions Nucor Thank your Company will like As the about with. of and Nucor Nucor focus that entire work hard achieve with extremely I'd the you trust continue the valuable we the that today, and you future teammates the earn placed you you Nucor the goals returns have and our a our entrust stewardship shareholders, their customers. and will to to great day finally, our to generate. thank for call excited enable and family our we in the team provide products your with take we each of conclude Thank and our business for to to seriously order, to shareholder

Operator

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

You may disconnect. now

Leon Topalian	President and Chief Executive Officer
Jim Frias	Chief Financial Officer
Dave Sumoski	Chief Operating Officer
Al Behr	Plate and Structural Products
Doug Jellison	Raw Materials and Logistics
Greg Murphy	Business Services and our General Counsel,
Dan Needham	Bar and Rebar Fabrication Products;
Rex Query	Sheet and tubular products;
MariaEmily Slate	Enterprise Commercial Strategy; and
Chad Utermark	Engineered Bar in Fabricated Construction Products.
Unidentified Participant	Deutche Bank
Martin Englert	Seaport Research Partners
Michael Glick	JPMorgan
Carlos De Alba	Morgan Stanley
Tristan Glasser	BNP Paribas
Andreas Hauser	UBS
David Gagliano	BMO Capital Markets
Andrew Cosgrove	Bloomberg Intelligence

Nucor (NUE) 22 Oct 212021 Q3 Earnings call transcript