Nucor announces Leon J. Topalian as Chair of the Board of Directors; names Christopher J. Kearney Lead Independent Director
Nucor Corporation announced that its President and Chief Executive Officer, Leon J. Topalian, has assumed the additional role of Chair of the Board of Directors and that Board member, Christopher J. Kearney, has been appointed Lead Director of the Board, both effective today. John H. Walker, a member of the Board since 2008 and most recently its Non-Executive Chairman, will continue to serve as a Board member. Mr. Topalian has been President and Chief Executive Officer of Nucor and a member of its Board of Directors since 2020. Prior to that time, he held various leadership positions at Nucor, including President and Chief Operating Officer in 2019, Executive Vice President from 2017 to 2019, and Vice President from 2013 to 2017. Having joined Nucor in 1996, Mr. Topalian also has served as General Manager at two of Nucor’s facilities, in Arkansas and Illinois, as well as Melting and Casting Manager, an Operations Manager, a cold mill production supervisor and a project manager. “I feel very privileged to take on this role at Nucor and thank the Board for its confidence in me,” Topalian said. “I want to thank John for his numerous contributions to Nucor. It has been an honor to work with him in his role as Non-Executive Chairman these past few years, and I have benefitted from his experience and perspective. I look forward to working closely with Chris and the rest of Board to continue to build on Nucor’s success.” Mr. Kearney, who was unanimously chosen by the independent directors of Nucor’s Board of Directors to serve as Lead Director, has been an integral member of the Board since he joined in 2008. Mr. Kearney founded Eagle Marsh Holdings, LLC in 2016 and has served as its managing partner since its inception. He also serves as a director of Otis Worldwide Corporation (having previously served as Executive Chairman of the Otis board of directors from 2020 to 2022) and served as a director of UTC from 2018 to 2020, prior to the spin-off of Otis from UTC. Mr. Kearney has served in various positions at SPX FLOW, Inc. (a spin-off of SPX Corporation) from 2015 to 2017 (including as Non-Executive Chairman of its board of directors and as Chairman, President and Chief Executive Officer) and SPX Corporation from 1997 to 2015 (including as its Chairman, President and Chief Executive Officer, Vice President, Secretary and General Counsel and as a member of the board). Mr. Kearney was also director of Polypore International, Inc. from 2012 to 2015. “I am honored to have been chosen by my fellow directors to serve as Lead Director of the Board and welcome the opportunity to serve the Board and all Nucor teammates in this new role,” Kearney said. “These changes reflect the thoughtful, planned transition of leadership at Nucor.”
Bison Gear and Engineering adds Automated Gear Tooth Grinder
The new machine improves product quality and increases production capacity Bison Gear & Engineering Corp., a provider in the power transmission industry, has added an Automated Gear Tooth Grinder to their gear hobbing department. This new equipment offers a range of benefits that improve product quality and increase production capacity. This unique machine frees up capacity on four other machines, improves the quality of gear geometry, improves the cycle time, and effectively grinds spur and helical gears. At a time when product demand outpaces production capacity, adding this single piece of equipment will help make available nearly 40% more production time on four separate hobbing machines. In this way, the Automated Gear Tooth Grinder significantly increases total gear-cutting capabilities. This new machine is also capable of grinding the gear tooth profile, leading to an exacting, .00005-inch precision. This means that the teeth will continually mesh at the same point, appreciably reducing wear and noise. This aspect of the grinder proves of great benefit to customers who have noise-sensitive applications. Customers can also obtain increased gear motor efficiency from the fact that lower-weight lubricant oils are needed when using grind-finished gear. The Automated Gear Tooth Grinder produces a better-finished product in ¼ of the time of a standard hobbing machine, significantly expediting the grinding process and improving the quality of the gear.
Nucor announces guidance for the Third Quarter of 2022 earnings
Nucor Corporation has announced guidance for its third quarter ending October 1, 2022. Nucor expects third-quarter earnings to be in the range of $6.30 to $6.40 per diluted share. Nucor reported net earnings of $9.67 per diluted share in the second quarter of 2022 and $7.28 per diluted share in the third quarter of 2021. We expect the steel mills segment earnings to be considerably lower in the third quarter of 2022 as compared to the second quarter of 2022, due to metal margin contraction and reduced shipping volumes, particularly at our sheet and plate mills. The steel products segment is expected to have another strong quarter in the third quarter of 2022, with earnings roughly in-line with the second quarter of 2022. Raw materials segment earnings are expected to be similar to the second quarter of 2022. We continue to believe that 2022 will be the most profitable year in Nucor’s history. During the third quarter, Nucor repurchased 5.3 million shares at an average price of $122.24 per share (17.5 million shares year-to-date at an average price of $134.99 per share). Nucor has returned more than $2.7 billion to stockholders in the form of share repurchases and dividend payments year-to-date.
Nucor to add Air Separation Unit at its South Carolina Sheet and Beam Mill
Nucor Corporation has announced that it will invest $200 million over a 5-year period in mill modernization projects at its Nucor Steel Berkeley division located in Huger, South Carolina. Pending permit and regulatory approvals, a portion of the capital investment will include the construction of a new air separation unit (“ASU”) for the purpose of supplying industrial gases for the mill’s steelmaking operations. When complete, the ASU will be operated by UIG LLC, a Nucor wholly owned subsidiary, that specializes in industrial gas supply. Nucor Steel Berkeley is currently supplied with industrial gases under a long-term supply agreement. This project will allow Nucor through UIG to produce and supply all the gases needed for the steel mill from the new Nucor-owned facility, both now and into the future. “Nucor acquired UIG in 2019 so that we would have the capability to build and operate our own air separation units, giving us an alternative to long-term service contracts with outside providers,” said Mike Lee, Vice President and General Manager of Nucor Steel Berkeley. “We are proud of our company’s long-time partnership with the State of South Carolina, and we are excited to continue to invest in the state where Nucor first began operating nearly 60 years ago.” The State of South Carolina provided the ASU project with a grant issued by the SC Department of Commerce Coordinating Council for Economic Development, as well as a grant from the state’s utility provider, Santee Cooper. Nucor and Berkeley County also entered into a fee-in-lieu of the tax agreement. Nucor Steel Berkeley produces up to 3.5 million tons of flat-rolled sheet and structural steel per year for a myriad of industries, including agriculture, automotive and appliance, construction, energy generation and transmission, oil and gas, heavy equipment, infrastructure, and transportation. The facility employs approximately 1000 teammates.
Perc Pineda, Ph.D., returns to Plastics Industry Association as Chief Economist
The Plastics Industry Association (PLASTICS) has announced that Dr. Perc Pineda has returned to fulfill the role of Chief Economist, effective immediately. A member of PLASTICS’ Senior team, Pineda will be an integral part of the association’s ability to continue generating original, scientific and data-driven research for, and on behalf of, the members of PLASTICS. As PLASTICS’ primary expert on economics, statistics, and industry research, Pineda will provide regular updates on the impact of national and global economies to PLASTICS members and the public. Pineda will produce various publications, including PLASTICS’ highly lauded annual Size & Impact report, analyzing the contributions of the plastics industry to the U.S. economy. Pineda will also be PLASTICS’ voice in the public, thought leadership, and conference arenas, addressing industry issues pertaining to the economy. “We are excited to have Perc return to the PLASTICS team,” said Matt Seaholm, President and CEO of the Plastics Industry Association. “He brings significant expertise that is unparalleled in our industry. Perc’s invaluable ability to identify economic trends and forecast the state of the marketplace is highly regarded and regularly anticipated by our members.” Prior to returning to PLASTICS, Pineda served as Senior Economist of the Credit Union National Association, where he tracked macroeconomic trends, conducted economic research, wrote articles for industry publications, and interfaced with the media. Pineda’s career experience also includes teaching Macroeconomics at St. Francis College in New York, and Microeconomics, Finance, and Economics of Regulations and the Law at City University of New York. Prior to his academic endeavors, Pineda served as an analyst for the International Monetary Fund. He holds both a Ph.D. and a Master of Philosophy degree in Economics from The New School (formerly The New School for Social Research), a master’s degree in Economics from American University, and a master’s degree in International Management from the University of Maryland. “The plastics industry’s value-add—its contribution to the economy—is a major force within all manufacturing sectors,” said Pineda upon his return. “I welcome the opportunity to, once again, provide economic, industry and market intel to the hundreds of PLASTICS member companies throughout the supply chain and to the industry at large.”
Ashley Hood-Morley returns to Plastics Industry Association as Vice President, Industry Engagement
The Plastics Industry Association (PLASTICS) has announced that Ashley Hood-Morley has returned to fulfill the role of Vice President, Industry Engagement, effective immediately. As a member of the Senior team, Ashley will be an integral part of PLASTICS’ growth and engagement. Ashley will lead strategy on membership acquisition and retention as well as oversee industry relationships and programs for PLASTICS stakeholders and key strategic partners. “We are excited to have Ashley rejoining the PLASTICS team,” said Glenn Anderson, Chief Operating Officer of the Plastics Industry Association. “Ashley brings a diverse and significant set of executive skills to our association and is highly regarded by our members. In her new role, Ashley’s leadership will be instrumental as we work to rebuild the culture of our association.” Hood-Morley has worked in the plastics industry for more than 15 years, and most recently, has focused on plastics recycling and sustainability. She returns to PLASTICS after serving as the Strategic Initiatives Manager on Eastman’s Corporate Sustainability team where she led the advancement of sustainability integration into business strategies and supported the success of the Circular Economy platform. In previous roles at Eastman, she worked in new product development, manufacturing, quality assurance, and product stewardship, all of which supported Eastman’s Specialty Plastics business. Ashley also spent more than 6 years at the Plastics Industry Association, where she managed new business development as well as PLASTICS’ portfolio of recycling, sustainability, and material initiatives across the organization. “We absolutely could not have found someone more perfectly suited for this role than Ashley,” said Matt Seaholm, president and CEO of PLASTICS. “Her first-hand understanding of our members from multiple perspectives, as well as her industry expertise, makes her an ideal advocate on behalf of our association.” “I am excited to return to PLASTICS and grateful for the opportunity to lead the membership and engagement teams,” Hood-Morley shared. “I am personally committed to the plastics industry and the people that this association represents. I am extremely optimistic about the great things we can accomplish on behalf of our members and looking forward to working with Matt, Glenn, and the leadership at PLASTICS.”
Nucor completes acquisition of C.H.I. Overhead Doors
Nucor Corporation has announced that it has completed its acquisition of C.H.I. Overhead Doors (C.H.I.) from KKR & Co. Inc. (NYSE: KKR) for $3.0 billion. C.H.I. is a manufacturer of overhead doors for residential and commercial markets in the United States and Canada. “We are very excited to welcome our C.H.I. teammates to the Nucor team,” said Leon Topalian, President and Chief Executive Officer of Nucor Corporation. “They have built a tremendous business with strong growth prospects that is a natural fit with our capabilities. We look forward to working with their senior management team to execute the next phase of growth for C.H.I. and Nucor.” “For all C.H.I. teammates and dealer partners, the opportunity to be part of Nucor going forward offers great potential for continued growth, supply-chain continuity, and new business collaboration,” said Dave Bangert, who has served as CEO of C.H.I. since 2016 and will continue to lead the business. “This is an exciting day for everyone associated with C.H.I. as we aspire to be a vibrant member of the Nucor family living our collective culture.” C.H.I. manufactures overhead door products for residential and commercial applications, as well as rolling steel and rubber doors for commercial and industrial customers. The company has approximately 800 teammates across two manufacturing plants in Arthur, Illinois, and Terre Haute, Indiana, and regional warehouses located in California, Colorado, New Hampshire, and New Jersey.
US Cutting Tool orders totaled $175.5 million in April 2022, bringing YTD total 9.1% over 2021
April 2022 U.S. cutting tool consumption totaled $175.5 million, according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the Cutting Tool Market Report collaboration, was down 10.1% from March’s $196.4 million and up 3.8% when compared with the $170 million reported for April 2021. With a year-to-date total of $700.4 million, 2022 is up 9.1% when compared to the same time period in 2021. These numbers and all data in this report are based on the totals reported by the companies participating in the CTMR program. The totals here represent the majority of the U.S. market for cutting tools. “Data from AMT and USCTI show April sales declined slightly from March, but the year-to-date sales are still outpacing 2021,” said Jeff Major, president of USCTI. “Supply chain issues and rising costs of manufacturing continued to hinder our business. The hope is that these factors will ease later this year. Our industry outlook continues to remain positive.” Eli Lustgarten, president at ESL Consultants, echoed Major’s near-term optimism but warned of possible challenges further over the horizon, saying, “Orders should continue to track the increase in durable goods output as supply chain issues somewhat ease, helped by below-normal industrial goods inventories and the upcoming IMTS in September. However, a growth slowdown for the U.S. economy is a near certainty, driven by the high level of inflation, global financial tightening, and economic weakness in Europe and China. The impact on the cutting tool sector will likely be more volatility in monthly orders and possibly a flattening of demand with dollar sales growth likely to be driven by inflationary pressures.” The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production, and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers’ consumption of the primary consumable in the manufacturing process – the cutting tool. Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels. Historical data for the Cutting Tool Market Report is available dating back to January 2012. This collaboration of AMT and USCTI is the first step in the two associations working together to promote and support U.S.-based manufacturers of cutting tool technology. The graph below includes the 12-month moving average for the durable goods shipments and cutting tool orders. These values are calculated by taking the average of the most recent 12 months and plotting them over time.
Fenner™ Precision Polymers relocates corporate offices
Fenner™ Precision Polymers, a Michelin Group Company and world provider in reinforced polymer technology announced the move of its corporate offices. The new location is in Manheim Township, will be at 187 West Airport Road in Lititz, Pa. Approximately 100 of Fenner’s office staff are expected to move into the new offices beginning fall of 2022. Ongoing construction updates will be underway in the space through October. The company anticipates that the remaining corporate staff will have relocated to the new facility by end of 2022. “This is a great location for us and one that is great for the business,” said Jack Krecek, Divisional Managing Director, Fenner Precision Polymers. “The West Airport Road location offers a convenient commute for employees that is just minutes away from the previous site. It also provides enhanced comfort and productivity advantages over the previous corporate headquarters. It’s a workplace in which staff will be more connected and better positioned to support our growth.” The enhanced office space brings to life the kind of environment that will attract and retain top talent in the Lancaster area. It features improved cross-functional collaboration inside the workplace and supports sustainability efforts externally, by reducing time and carbon emissions produced by travel between buildings and outside meetings. “Our relocation to the new facility marks yet another proud milestone along our journey to becoming a world-class manufacturing operation,” added Krecek. “We see it as a launch pad for innovation –increasing engineering jobs for an R&D center and creating new manufacturing jobs to support Fenner’s expanding operations.” Built in 1998, 187 West Airport Road sits on 2.94 acres. It is a 35,021 sq. ft. Industrial/Flex building consisting of office and warehouse space. Fenner and many of its brands have been members of Lancaster and Manheim communities for more than 100 years.
Nucor announces Executive Vice President MaryEmily Slate to retire, John Hollatz to be promoted
Nucor Corporation announced that MaryEmily Slate, Executive Vice President of Commercial, plans to retire due to health issues on June 11, 2022, after more than 21 years of service with Nucor. Ms. Slate began her career with Nucor in 2000 as District Sales Manager at Nucor Steel Arkansas. She later served as Sales Manager at Nucor Steel Decatur, LLC, and then as Cold Mill Manager. In 2010, Ms. Slate was promoted to General Manager of Nucor Steel Auburn, Inc. and was elected Vice President in 2012. She was promoted to Vice President of Nucor Steel Arkansas in 2015 and to Executive Vice President in 2019. Leon Topalian, Nucor’s President and CEO, commented, “For more than 21 years, MaryEmily’s dedication, exceptional leadership, and commitment to excellence have contributed greatly to the growth and profitability of Nucor. More importantly, her passion for encouraging and developing teammates will be one of her lasting legacies. On behalf of the Board of Directors and all Nucor teammates, I want to extend our deep appreciation to MaryEmily for her leadership and commitment to making Nucor a better company. We wish the very best for MaryEmily and her family.” Nucor also announced the following additional executive-level changes: Effective May 15, 2022, Dan Needham, Nucor’s Executive Vice President of Bar, Engineered Bar, and Rebar Fabrication Products, will become Executive Vice President of Commercial. In his new role, Mr. Needham will focus on Nucor’s comprehensive enterprise commercial strategy. Mr. Needham joined Nucor in 2000 as Controller at Nucor Steel Hertford County and subsequently served as Controller of Nucor Steel Decatur, LLC, and Nucor Steel Utah. Mr. Needham later served as General Manager of Nucor Steel Connecticut, Inc., Nucor Steel Utah, and Nucor Steel Indiana. He was promoted to Vice President in 2016 and to Executive Vice President in February 2021. Also, effective May 15, 2022, John Hollatz will be promoted to Executive Vice President of Bar, Engineered Bar, and Rebar Fabrication Products. Mr. Hollatz began his career with Nucor in 1999 as Design Engineer at Vulcraft Indiana and then served as Sales Engineer and Sales Manager at Vulcraft Nebraska. Mr. Hollatz later served as General Manager of Nucor Building Systems South Carolina, General Manager of Vulcraft Indiana, and President of the Vulcraft/Verco Group. He was promoted to Vice President in 2016 and currently serves as Vice President and General Manager of Nucor Steel Decatur, LLC. Chad Utermark, Nucor’s Executive Vice President of Fabricated Construction Products, has been appointed to the newly created position of Executive Vice President of New Markets and Innovation effective May 15, 2022. In his new role, Mr. Utermark will focus on Nucor’s continued growth into new markets and the integration of new businesses into the core operations of the Company. Mr. Utermark began his career as a utility operator at Nucor Steel Arkansas in 1992, subsequently serving as shift supervisor and Hot Mill Manager at that division and then Roll Mill Manager at Nucor Steel Texas. He later served as General Manager of Nucor Steel Texas and Nucor-Yamato Steel Company. He was promoted to Vice President in 2009 and to Executive Vice President in 2014. Mr. Utermark’s successor will be named at a later date. “I am very pleased to announce these executive management team changes,” said Mr. Topalian. “John is a talented leader who will be a strong addition to our executive team. These changes, including the addition of Chad’s new role, will enable our team to focus on the significant strategic investments we have made and will continue to make into new markets while also continuing to grow our core steelmaking business.”
Myers Industries expands production with acquisition of Rotational Molding facility in Georgia
Myers Industries, Inc., has announced that it is increasing its production capacities through the acquisition of the Decatur-based rotational molding manufacturing assets of Step2 Co, LLC for an undisclosed sum. This investment comes as Myers continues to expand its rotational molding capabilities across the United States. Myers’ Material Handling Segment utilizes rotational molding to provide high-quality, durable products to a broad range of end markets including outdoor recreation, construction, vehicle, and industrial applications. The 41,000 square foot Georgia facility adds production capacity to support both new and existing customers in the southern United States. “The addition of this Decatur rotational molding location represents another milestone in the execution of our long-term strategy that is unlocking additional growth and expansion opportunities to serve our customers,” said Mike McGaugh, President, and CEO of Myers Industries. “This marks our third meaningful investment in rotational molding in under two years and strengthens our position as a valuable partner for our rotational molding customers within our Material Handling Segment. We look forward to integrating this location into our Myers footprint and accelerating our organic growth efforts.” This expansion demonstrates Myers’ commitment to growing its customer sales and service range while building a presence in new markets. This is the latest action taken as part of Horizon 1 of the Company’s 3-horizon strategy, which is focused on: Self-help, Organic Growth, and Bolt-on M&A. The expansion follows Myers’s acquisitions of Elkhart Plastics and Trilogy Plastics – further increasing Myers’ market-leading reach as a rotational molder serving a variety of niche markets.
Essentra Tapes appoints new North American sales manager
Global easy-open and close tapes manufacturer Essentra Tapes has announced the appointment of a new sales manager, Mitch Larkin. Larkin, based in Colorado, USA, will be a key member of the team responsible for sales growth strategies for North America. The appointment comes as the Essentra Tapes business continues to expand on a global scale, with its tape solutions used in diverse sectors including paper and board, flexible packaging, tobacco, luxury goods, eCommerce packaging, and more. Christopher Morgan, Global Sales Director at Essentra Tapes, welcomed the appointment, saying, “We are delighted to welcome Mitch on board at a time when we are expanding and upskilling our North American sales team significantly. Mitch brings over 16 years of commercial sales expertise to our team and has had particular success in paperboard, corrugated, plastic bottles, and flexible packaging. “Mitch will be responsible for delivering tear tape and applicator business, primarily in the paper and board and flexible packaging markets but also driving sales in other key markets, too. Our mission is to continue to grow our North American business, and I am sure Mitch’s experience will be invaluable as we introduce even more customers to our market-leading tear tape solutions.” Larkin, a graduate of California State University, has over 25 years of sales and business development experience. His appointment follows that of Morgan, who became global sales director in February, and the appointment of a US-based category sales manager, Evan Mazzoni. On his appointment, Larkin said, “There is never a bad time to join a market leader, but it is an especially exciting time to join Essentra Tapes now as the US-based team is experiencing significant growth. I look forward to getting started and playing my part to drive sales in the region as part of Essentra’s global strategy.”
Wildeck welcomes Shannon Grall as VP of Human resources
Wildeck, Inc, the largest U.S. manufacturer of industrial steel work platforms, material lifts, access solutions, and safety guarding products, has been continually growing its business and workforce. Wildeck is committed to providing an excellent environment for new and existing employees and making the onboarding process as smooth as possible. To fulfill this need, Wildeck is thrilled to welcome Shannon Grall as the new Vice President of Human Resources. Shannon will work to develop a high-performing, people-oriented culture at Wildeck. She will also be responsible for core processes such as payroll, benefits administration, training, compliance, employee data management, and enforcing the company’s core values. In her role, she will collaborate with other departments to improve the organizational design and workforce planning, while creating an exceptional onboarding experience for new employees. “We are very pleased to have Shannon join our team,” said Dan Lorenz, President of Wildeck. “In this market, it is essential to attract and keep top talent. We are confident that, with Shannon’s expertise, Wildeck will receive greater recognition as a Best Place to Work and employer of choice.” Shannon joins Wildeck with an impressive twenty-plus years of human resource leadership experience, ten of which were spent as a human resource business partner in both corporate and operational roles in manufacturing. Prior to Wildeck, Shannon held a variety of HR positions at Molson Coors Beverage Company and most recently was the Sr. Talent Acquisition Manager – where she was responsible for all the North American hourly and salaried recruitment. Shannon has a strong focus on talent management and a passion for attracting, developing, and retaining top talent among client groups and HR teams.
Wildeck hires Chris Horn as VP of Engineering
Wildeck, Inc, one of the largest U.S. manufacturers of industrial steel work platforms and safety guarding products, has been continually growing its business and workforce. Wildeck is committed to ensuring the development and implementation of efficient operations and cost-effective systems to meet the current and future needs of the company. To fulfill this need, Wildeck is thrilled to welcome Chris Horn as the new Vice President of Engineering. Chris will plan, direct, coordinate, and oversee activities in the Engineering Department. He will also identify, recommend, and implement new technologies and systems to improve organizational processes and decision-making, while also keeping up to date on new developments in the field of engineering or product design. “We are so excited to welcome Chris to the team,” said Dan Lorenz, President of Wildeck. “As Wildeck continues to grow and evolve we recognize the importance of ensuring our technologies and systems are up-to-date to increase efficiency and productivity. Chris’ background makes him the perfect fit for the job.” Chris joins Wildeck with an illustrious twenty-plus years of engineering and management experience, starting as a nuclear weapons specialist for the United States Air Force. Chris was most recently the Director of Engineering at Douglas Dynamics. Prior to that role, he spent several years in various engineering roles at Harley-Davidson Motor Company. Chris has a strong focus on product development and a passion for design and manufacturing engineering.
Nucor reports results for the first quarter of 2022
Nucor Corporation today announced consolidated net earnings of $2.10 billion, or $7.67 per diluted share, for the first quarter of 2022, making it the most profitable first quarter in the Company’s history. By comparison, Nucor reported consolidated net earnings of $2.25 billion, or $7.97 per diluted share, for the fourth quarter of 2021 and $942.4 million, or $3.10 per diluted share, for the first quarter of 2021. “I’m incredibly proud of the Nucor Team’s exceptional focus on delivering world-class performance in the first quarter of 2022, especially our record results in Safety and first-quarter profitability. We are grateful for the trust our customers place in the Nucor Team with every order as we strive to offer exceptional value by delivering the cleanest and most sustainable steel solutions in the world. Our key forward-looking indicators for 2022 remain favorable and we expect another strong year in both earnings and cash generation,” said Leon Topalian, Nucor’s President and Chief Executive Officer. Selected Segment Data Earnings (loss) before income taxes and noncontrolling interests by segment for the first quarter of 2022 and 2021 were as follows (in thousands): Three Months (13 Weeks) Ended April 2, 2022 April 3, 2021 Steel mills $ 2,578,854 $ 1,314,974 Steel products 684,867 211,812 Raw materials 95,853 223,235 Corporate/eliminations (461,459) (451,775) $ 2,898,115 $ 1,298,246 Financial Review Nucor’s consolidated net sales increased 1% to $10.49 billion in the first quarter of 2022 compared with $10.36 billion in the fourth quarter of 2021 and increased 50% compared with $7.02 billion in the first quarter of 2021. The average sales price per ton in the first quarter of 2022 increased 2% compared with the fourth quarter of 2021 and increased 68% compared with the first quarter of 2021. A total of 6,394,000 tons were shipped to outside customers in the first quarter of 2022, which was similar to the fourth quarter of 2021 and decreased 11% as compared to the first quarter of 2021. Total steel mill shipments in the first quarter of 2022 decreased 1% as compared to the fourth quarter of 2021 and decreased 11% as compared to the first quarter of 2021. Steel mill shipments to internal customers represented 22% of total steel mill shipments in the first quarter of 2022, compared with 22% in the fourth quarter of 2021 and 21% in the first quarter of 2021. Downstream steel product shipments to outside customers in the first quarter of 2022 increased 7% from the fourth quarter of 2021 and increased 2% from the first quarter of 2021. The average scrap and scrap substitute cost per gross ton used in the first quarter of 2022 was $495, a 3% decrease compared to $508 in the fourth quarter of 2021 and a 22% increase compared to $405 in the first quarter of 2021. Pre-operating and start-up costs related to the Company’s growth projects were approximately $62 million, or $0.17 per diluted share, in the first quarter of 2022, compared with approximately $54 million, or $0.15 per diluted share, in the fourth quarter of 2021 and approximately $19 million, or $0.05 per diluted share, in the first quarter of 2021. Overall operating rates at the Company’s steel mills decreased to 77% in the first quarter of 2022 as compared to 89% in the fourth quarter of 2021 and 95% in the first quarter of 2021. Financial Strength At the end of the first quarter of 2022, we had $4.26 billion in cash and cash equivalents, short-term investments, and restricted cash and cash equivalents on hand. The Company’s $1.75 billion revolving credit facility remains undrawn and does not expire until November 2026. Nucor continues to have the strongest credit rating in the North American steel sector (Baa1/A-) with stable outlooks at both Moody’s and Standard & Poor’s. Commitment to Returning Capital to Stockholders During the first quarter of 2022, Nucor repurchased approximately 7.0 million shares of its common stock at an average price of $128.45 per share. As of April 2, 2022, Nucor had approximately 266,000,000 shares outstanding and approximately $2.94 billion remaining for repurchases under its existing authorized share repurchase program. This share repurchase authorization is discretionary and has no scheduled expiration date. On February 22, 2022, Nucor’s board of directors declared a cash dividend of $0.50 per share. This cash dividend is payable on May 11, 2022, to stockholders of record as of March 31, 2022, and is Nucor’s 196th consecutive quarterly cash dividend. First Quarter of 2022 Analysis Steel mill segment earnings in the first quarter of 2022 decreased from the fourth quarter of 2021, primarily due to the decreased profitability of the sheet mills. While end-market demand remains strong, average realized selling prices in sheet softened during the first quarter reflecting increased import volumes coupled with modest destocking. The steel products segment generated increased earnings in the first quarter of 2022 relative to the fourth quarter of 2021 due to continued strong nonresidential construction-related demand and expanded profit margins. Earnings for the raw materials segment increased in the first quarter of 2022 as compared to the fourth quarter of 2021 due to improving selling prices for raw materials at the end of the quarter. Second Quarter of 2022 Outlook End-use market demand remains strong for steel and steel products, and we remain confident that 2022 will be another year of very strong earnings and cash flow for Nucor. We expect that the second quarter of 2022 will be the most profitable quarter in Nucor’s history, surpassing the previous record set in the fourth quarter of 2021. Second-quarter earnings will be driven by increased profitability in the steel products segment, which continues to benefit from robust demand in nonresidential construction markets. In addition, the steel mills segment earnings are expected to strengthen due primarily to increased profitability at our sheet and plate mills. Similarly, Nucor’s raw materials segment is expected to generate increased profits in the second quarter due to relatively higher selling prices for raw materials.
Young Plastics professionals take Earth Day action on the environment
The Plastics Industry Association (PLASTICS), as part of its ongoing sustainability efforts, has announced the formation of a Community Impact Task Group by its Future Leaders in Plastics (FLiP) Committee. FLiP is dedicated to fostering association involvement and professional development among plastics professionals under the age of 40. The mission of the Community Impact Task Group is to foster collaboration among PLASTICS member companies and external organizations to further plastics industry efforts on behalf of the environment and the communities in which the industry operates. “In observation of Earth Day 2022, our FLiP members are excited to announce this new project that supports Earth Day’s purpose of preserving our planet,” said Jon Smalling, FliP Chair and Director of Sales, Automation, at Nalle Automation Systems. “Those of us in the plastics industry are committed to programs that help protect the world we live in. This cause is very important to our group as it provides the opportunity to give back to local communities and do our part to remove litter and mismanaged trash from our environment.” The Community Impact Task Group is chaired by Madeline Kline, Regional Manager of East Coast Sales for Gardner Business Media. Kline’s staff liaison at PLASTICS is Heather Nortz, Manager of Sustainability & Materials for the association. The task group’s first project will be a litter cleanup taking place during the PLASTICS Fall Meeting and National Conference, which is being held in Asheville, North Carolina, from September 20-23, 2022. Anyone attending the event will be invited to participate. The FLiP cleanup has also been planned in proximity to World Cleanup Day (September 17) to help call attention to other cleanup efforts worldwide and further opportunities for environmental awareness and education.
Diversified Plastics Inc. introduces a new rotational molding oven
Diversified Plastic, Inc., an international rotational molder based out of Latta, South Carolina, introduces a new rotational molding oven to their facility in Social Circle, GA. The implementation of the new rotational molding oven, will assist in the overall increase of productivity and allow DPI to produce larger quantities of plastic products. DPI currently has 25 plastic product lines that vary from material handling carts to commercial trash containers. This new oven has the capability to manufacture all of DPI’s product lines in an efficient manner. “We are enthusiastic to introduce the new rotational molding oven to our facility,” stated Scott Oaks, Vice President of Diversified Plastics, Inc. “It will help us to manufacture our plastic products more efficiently and allow us to expand our product lines.” Since 1976, Diversified Plastics, Inc. has been the leading rotational molding manufacturer of custom and standard material handling carts and plastic storage containers. DPI specializes in material handling carts for the industrial, textile, hospitality, laundry, agricultural and marine industries. DPI also provides waste and recycling plastic containers for restaurants, sports venues, stadiums, apartments, condominium complexes, and corporate offices. In addition to providing custom material handling solutions and waste containers for any application, DPI’s diverse product assortment includes bulk material handling carts, plastic utility carts, laundry carts, bulk containers, tote boxes, round containers, spring platform trucks, elevated carts, easy access carts, tilt trucks and more.
EP 264: A-SAFE
In this episode, I was joined by the CEO of A-SAFE, Paul Barlow. A-SAFE focuses on protective guarding products made of polymer and providing safe products for the material handling industry. We discuss how the idea of polymer guarding came about and what the differences are, between the ProGMA and the new RackEye product. Key Takeaways A-SAFE was founded as a polymer company making varying products since the beginning including polymer pallets. One day they were told that they needed to put up some protective guarding in their facility which gave the idea that their polymer pallets put on their side looked like guarding. This sparked the idea for what led to their main product now which is the polymer guards they create. The benefits to these, as Paul explains, are their flexibility and how they can take the energy of an impact. Instead of bending the steel upon impact, the polymer can flex back into place restoring its previous form. Paul and A-SAFE are part of the Protective Guarding Manufacturers Association of MHI which is a collection of different guarding manufacturers that are focused on bringing safe products to the material handling industry. They have also recently come out with a protective guarding search tool that can help you to find exactly what you need for your specific application. Their focus is to create more awareness around the types of protective guarding that are available for our industry. The newest product from A-SAFE is RackEye which is a rack monitoring system. As Paul and I discuss oftentimes it is hard to know when your racking has been damaged. You may rely on your operators to alert you if something happens but unfortunately, not everyone will feel the need to report any issues. RackEye attaches to your racking and senses when there is an impact. This then creates an alert for your management team on where to go check the racking. The technology has been in development for some time but the great part about it is that the devices are all battery powered which means you do not have to do any special wiring. Another step in the direction of the connected warehouse. Listen to the episode below and leave your thoughts in the comments. The New Warehouse Podcast EP 264: A-SAFE
Casper, Phillips & Associates Inc. (CPA) has named employees minority Associate Principals
Casper, Phillips & Associates Inc. (CPA) has named employees Richard Phillips and Andrew Hanek minority Associate Principals. Phillips and Hanek remain mechanical engineers and civil engineers respectively at CPA but are now taking on leadership roles. CPA offers a wide variety of services, including procurement, specification, design, manufacturing review, modification, and accident investigation. The three current principals—Jeff Hubbell, Tom Hubbell, and Mike Zhang—are leading the company after Rich W. Phillips, stepped down in 2020. Phillips and Hanek represent a new generation of ownership, and CPA is looking forward to a bright future. Richard Phillips Phillips, 35, has 11 years of company experience, performing peer reviews of contractors’ crane designs, including some of the largest container cranes in the world. He has experience in machine design and has designed mechanical systems for use on container cranes, overhead cranes, airplane paint stackers, and other systems. Phillips has performed finite element analysis of container cranes, rail-mounted gantry cranes, Goliath cranes, and whirly cranes. After graduating from Oregon State with a Bachelor’s degree in Mechanical Engineering (BSME), he went on to get a Master of Science in Mechanical Engineering (MSME) from the University of Southern California. Since being hired out of college, Phillips has been part of many successful projects and proven to be a valued team member. He has worked in all of CPA’s major branches and has been adaptable to the different industries the company serves. Phillips said: “I had a general idea of my career path even before attending college as my father [Rich W. Phillips] was the founder of the company. Stepping up to ownership increases the responsibility but also helps to spread out the workload shared by the principals. From a client’s perspective, they benefit from a long-term vision, enabling all parties to grow together.” Andrew Hanek Hanek, 32, has eight years of design experience with CPA, focusing on container cranes and overhead crane systems, in addition to performing peer reviews of crane designs, design of repairs and retrofits, custom software programming for finite element analysis pre-and post-processing, and 3D point cloud scanning and processing. Other notable work includes developing a container crane anti-seismic system, assisting clients in planning, and purchasing cranes, and 3D solids modeling of the wharf to soil interface for offloading. Hanek grew up in the Pacific Northwest. From high school, he knew he wanted to be a structural engineer and went to college to study structural engineering. There, he harbored ambitions of starting his own company, before graduating with a Bachelor of Science in Civil Engineering at the University of Washington and Master of Science in Civil Engineering at Oregon State University. Supported by a successful career to date, Hanek also fulfills his ambition to step into company ownership. He said: “After working with CPA over several years and getting great enjoyment from the projects we do, it’s exciting to continue to build on what we have achieved to date and cement a legacy in the business through incremental ownership. I hope to leverage my strong background in modern technologies, including programming for design. I enjoy responsibility as the in-house, go-to for our programming and 3D-related scanning questions, for example.” Ongoing collaboration The team is well prepared to meet the immediate, mid-, and long-term challenges of customers. Jeff and Tom Hubbell are licensed structural engineers; Hanek is a civil engineer and has a goal to become a licensed structural engineer; while Zhang and Phillips are licensed, mechanical engineers. Hanek has already started onboarding some of Rich W. Phillips’ clients and is helping to fill in the void that he is leaving as he transitions into retirement. Many projects will involve collaboration with multiple team members. As Phillips said, “Cranes are not just structural steel; they are a complex system of electrical, mechanical, and structural components. No individual can have expertise in all these areas of practice.” Proprietary software development One of Hanek’s immediate objectives is to maintain and develop the proprietary structural software suite, previously overseen by Rich W. Phillips., while Phillips Jr. creates a proprietary mechanical software suite. Without proper planning, the increasing size of vessels can make equipment and facilities obsolete long before the capital investment is amortized. Before the cranes are purchased, CPA can quickly analyze different crane geometry, such as the effect of rail gauges, and help ports procure cranes that best suit their specific needs. Pre-purchase engineering can ensure the cranes do not overload the dock, and the specified crane is buildable. Phillips said: “Crane manufacturers like to re-use old designs because it saves money on engineering. However, it is impractical to design a standard crane that meets the requirements of all ports worldwide. Geological conditions where the cranes will be used dictate many different design considerations. A container crane is designed for use in Florida will be designed for hurricane winds, while a crane destined for Los Angeles will be designed for earthquakes. Some locations will require that the cranes pass under a bridge during delivery.” Hanek concurred: “The challenge of standardizing a crane design starts to become more apparent when these conditions are considered. Designing a standard crane for a standard earthquake to be shipped under a standard bridge and placed on a standard dock is impractical. Therefore, CPA developed proprietary software—to analyze cranes for all the different conditions and requirements.”
Nucor Chief Financial Officer Jim Frias to retire; Steve Laxton to be promoted
Nucor Corporation has announced that Jim Frias, Chief Financial Officer, Treasurer, and Executive Vice President, plans to retire effective June 11, 2022, and will transition out of the role as of March 6, 2022. Steve Laxton, Vice President of Business Development and Strategic Planning, has been named his successor. Messrs. Frias and Laxton will work together over the next several months to conduct a seamless transition of CFO responsibilities. Mr. Frias, 65, joined Nucor in 1991 as Controller of Nucor Building Systems – Indiana. Over the years, he took on roles with increasing levels of responsibility, serving as Controller of Nucor Steel – Indiana and later as Corporate Controller. He was promoted to Vice President in 2006 and has served as Chief Financial Officer, Treasurer, and Executive Vice President since January 2010. During his tenure as CFO, Mr. Frias helped navigate some of the most challenging times in the steel industry and was part of the team that achieved record performance in 2021 – setting new records for earnings, revenue, steel shipments, and, most importantly, safety. Mr. Frias also established a capital allocation framework that has been a key part of helping Nucor achieve its most recent success. Since 2010, Nucor has returned more than $10 billion to stockholders in the form of dividends and share repurchases, while generating an average annual return on stockholders’ equity of more than 13% and maintaining the strongest credit ratings in our industry. Leon Topalian, Nucor’s President and CEO, commented, “Jim’s impact as a Nucor teammate over the last 30 years and as CFO for the last 12 years has been tremendous and will have a lasting effect on our company. Jim has ensured that we maintain our strong financial position, allowing us to reinvest to strategically position and grow our portfolio of capabilities across the steel value chain. Equally impressive as his financial stewardship are his integrity and his nurturing of Nucor’s team-oriented culture. I am personally grateful to Jim for his expertise, guidance, and candor as I transitioned into the CEO role over the last few years. “On behalf of all my Nucor teammates, I want to thank Jim for his leadership and for his immeasurable contributions to the long-term success of Nucor. We wish Jim and his family a long and happy retirement.” “It’s been a privilege to have served this great company for three decades and to have worked with such an outstanding team,” said Jim Frias. “I am confident in Nucor’s continued success and look forward to working alongside Steve over the coming months to ensure a smooth transition.” Mr. Laxton, 51, began his career with Nucor in 2003 as General Manager of Business Development and was promoted to Vice President in 2014. Prior to joining Nucor, Mr. Laxton worked for Cinergy Corp., holding various positions including Director of Asset Management and Manager of Corporate Development. Prior to Cinergy, he held various financial roles with Ashland, Inc., North American Stainless, and National City Bank. Mr. Laxton holds a Bachelor of Science degree in Finance and Marketing from Georgetown College and a Master of Business Administration from the University of Kentucky. “Steve is a proven leader whose 19 years of experience with Nucor have positioned him well to take on this new responsibility,” said Mr. Topalian. “He has a strong track record of strategic thinking, financial acumen, and exceptional leadership. He will be a great addition to our executive management team. Jim’s retirement and Steve’s promotion are the product of the robust and thoughtful succession planning process that has been a strategic priority throughout Nucor for many years.”