In announcing its first-quarter guidance on Thursday, the steelmaker said it is anticipating earnings of between US$3.70 and US$3.80 per diluted share, down about 23% from the fourth quarter of 2022. Profits also are expected to fall from the first quarter of 2022, when Nucor reported earnings of US$7.67 per diluted share. 2022 was a record year for the company. 

Nucor said its first-quarter bottom line is a product of accounting and not a reflection of business activity. 

“We expect consolidated net earnings to decrease compared to the fourth quarter of 2022 due to less favorable intercompany eliminations in the first quarter of 2023 and the absence of state tax benefits that were recorded in the fourth quarter of 2022,” it said. 

“On a combined basis, the operating income during the first quarter of 2023 from our three business segments is expected to exceed that of the fourth quarter of 2022,” it added. 

The company said its steel mills are reporting higher margins and volumes this quarter, with the largest improvements taking place at its sheet mills. Meanwhile, its direct reduced iron plants and its scrap yards are seeing higher volumes.  

And while its steel products segments is seeing some quarter-to-quarter decreases due slower construction activity reductions in realized pricing, the company is expecting continued strength in profitability.

“Overall, we expect first-quarter 2023 steel products segment earnings to be higher than the first quarter of 2022,” it said.