Nucor today announced net earnings attributable to Nucor stockholders of $1.14 billion for the first quarter of 2023. By comparison, Nucor reported net earnings of $1.26 billion for the fourth quarter of 2022, and $2.10 billion for the first quarter of 2022.
Nucor's consolidated net sales were $8.71 billion in the first quarter of 2023, similar to $8.72 billion in the fourth quarter of 2022 and 17 percent lower than the $10.49 billion recorded in the first quarter of 2022.
Average sales price per ton in the first quarter of 2023 decreased 11 percent compared with the fourth quarter of 2022 and decreased 18 percent compared with the first quarter of 2022. A total of 6,443,000 tons were shipped to outside customers in the first quarter of 2023, an increase of 12 percent compared to the fourth quarter of 2022 and an increase of 1 percent compared to the first quarter of 2022.
Total steel mill shipments in the first quarter of 2023 increased 18 percent compared to the fourth quarter of 2022 and increased 4 percent compared to the first quarter of 2022. Steel mill shipments to internal customers represented 20 percent of total steel mill shipments in the first quarter of 2023, compared with 20 percent in the fourth quarter of 2022 and 22 percent in the first quarter of 2022. Downstream steel product shipments to outside customers in the first quarter of 2023 decreased 3 percent from the fourth quarter of 2022 and decreased 8 percent from the first quarter of 2022.
Overall operating rates at the Company's steel mills increased to 79 percent in the first quarter of 2023 as compared to 70 percent in the fourth quarter of 2022 and 77 percent in the first quarter of 2022.
In a press release, Nucor said steel mill segment earnings in the first quarter of 2023 increased from the fourth quarter of 2022, primarily due to higher margins and volumes. The steel products segment earnings in the first quarter of 2023 decreased relative to the fourth quarter of 2022 due primarily to reductions in realized pricing, Nucor said. Earnings for the raw materials segment increased in the first quarter of 2023 as compared to the fourth quarter of 2022 due to higher volumes at the company’s direct reduced iron facilities and scrap recycling and brokerage operations.
As for an outlook, the company said it expects earnings in the second quarter of 2023 to increase compared to the first quarter of 2023. Nucor expects earnings for the steel mills segment to improve in the second quarter of 2023 as compared to the first quarter of 2023 primarily due to margin expansion at sheet mills. The steel products segment is expected to deliver strong results in the second quarter of 2023, but will moderate from the first quarter of 2023 due to expected lower average selling prices offsetting higher volumes, Nucor said. The raw materials segment is expected to improve in the second quarter of 2023 as compared to the first quarter of 2023 due to the improved profitability of the company’s DRI facilities.