Nucor reports results for the Third Quarter of 2024
Consolidated net earnings attributable to Nucor stockholders of $249.9 million, or $1.05 per diluted share Adjusted net earnings attributable to Nucor stockholders of $353.0 million, or $1.49 per diluted share Net sales of $7.44 billion Net earnings before noncontrolling interests of $302.8 million; EBITDA of $869.0 million Nucor Corporation announced consolidated net earnings attributable to Nucor stockholders of $249.9 million, or $1.05 per diluted share, for the third quarter of 2024. Excluding non-cash impairment charges taken during the quarter, Nucor’s third quarter of 2024 adjusted net earnings attributable to Nucor stockholders were $353.0 million, or $1.49 per diluted share. By comparison, Nucor reported consolidated net earnings attributable to Nucor stockholders of $645.2 million, or $2.68 per diluted share, for the second quarter of 2024 and $1.14 billion, or $4.57 per diluted share, for the third quarter of 2023. Reflected in the third quarter of 2024, losses and impairments of assets are non-cash charges of $83.0 million, or $0.27 per diluted share, and $40.0 million, or $0.17 per diluted share, related to the impairment of certain noncurrent assets in the raw materials and steel products segments, respectively. In the first nine months of 2024, Nucor reported consolidated net earnings attributable to Nucor stockholders of $1.74 billion, or $7.22 per diluted share, compared with consolidated net earnings attributable to Nucor stockholders of $3.74 billion, or $14.83 per diluted share, in the first nine months of 2023. “Thank you to our Nucor teammates for continuing to set new records for safety performance while generating over $1.30 billion of cash from operations for the quarter,” said Leon Topalian, Nucor’s Chair, president, and Chief Executive Officer. “Nucor’s market leadership, product diversity, and strong balance sheet enable us to provide meaningful returns to shareholders and execute our growth strategy even in the face of market uncertainty.” Selected Segment Data Earnings (loss) before income taxes and noncontrolling interests by segment for the third quarter and first nine months of 2024 and 2023 were as follows (in thousands): Three Months (13 Weeks) Ended Nine Months (39 Weeks) Ended September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023 Steel mills $ 309,123 $ 882,614 $ 2,056,689 $ 3,124,549 Steel products 313,972 806,731 1,266,922 2,788,322 Raw materials (66,332) 71,367 (17,355) 267,918 Corporate/eliminations (168,490) (212,630) (794,479) (986,141) $ 388,273 $ 1,548,082 $ 2,511,777 $ 5,194,648 Financial Review Nucor’s consolidated net sales decreased 8% to $7.44 billion in the third quarter of 2024 compared with $8.08 billion in the second quarter of 2024 and decreased 15% compared with $8.78 billion in the third quarter of 2023. Average sales price per ton in the third quarter of 2024 decreased 6% compared with the second quarter of 2024 and decreased 15% compared with the third quarter of 2023. Approximately 6,196,000 tons were shipped to outside customers in the third quarter of 2024, a 1% decrease compared with the second quarter of 2024 and the third quarter of 2023. Total steel mill shipments in the third quarter of 2024 decreased 3% compared with the second quarter of 2024 and were comparable to the third quarter of 2023. Steel mill shipments to internal customers represented 19% of total steel mill shipments in the third quarter of 2024, compared with 21% in the second quarter of 2024 and 20% in the third quarter of 2023. Downstream steel product shipments to outside customers in the third quarter of 2024 decreased 6% compared with the second quarter of 2024 and decreased 11% compared with the third quarter of 2023. In the first nine months of 2024, Nucor’s consolidated net sales of $23.66 billion decreased 12% compared with consolidated net sales of $27.01 billion in the first nine months of 2023. Total tons shipped to outside customers in the first nine months of 2024 were approximately 18,709,000 tons, a decrease of 3% compared with the first nine months of 2023, and the average sales price per ton in the first nine months of 2024 decreased 10% compared with the first nine months of 2023. The average scrap and scrap substitute cost per gross ton used in the third quarter of 2024 was $378, a 5% decrease compared to $396 in the second quarter of 2024 and a 9% decrease compared to $415 in the third quarter of 2023. The average scrap and scrap substitute cost per gross ton used in the first nine months of 2024 was $399, a 7% decrease compared to $429 in the first nine months of 2023. Pre-operating and start-up costs related to the Company’s growth projects were approximately $168 million, or $0.54 per diluted share, in the third quarter of 2024, compared with approximately $137 million, or $0.43 per diluted share, in the second quarter of 2024 and approximately $101 million, or $0.31 per diluted share, in the third quarter of 2023. In the first nine months of 2024, pre-operating and start-up costs related to the Company’s growth projects were approximately $430 million, or $1.36 per diluted share, compared with approximately $273 million, or $0.83 per diluted share, in the first nine months of 2023. Overall, operating rates at the Company’s steel mills were 75% in the third quarter and second quarter of 2024 and 77% in the third quarter of 2023. Operating rates in the first nine months of 2024 decreased to 77%, compared to 80% in the first nine months of 2023. Financial Strength At the end of the third quarter of 2024, we had $4.86 billion in cash and cash equivalents and short-term investments 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 ratings in the North American steel sector (A-/A-/Baa1), with stable outlooks at Standard & Poor’s and Fitch Ratings and a positive outlook at Moody’s. Commitment to Returning Capital to Stockholders Nucor repurchased approximately 2.5 million shares of its common stock during the third quarter of 2024 at an average price of $156.07 per share (approximately 11.0 million shares year-to-date
Semi-automated pallet shuttle technology optimizes material handling storage
For businesses seeking optimal warehouse logistics management, Steel King Industries, an OEM with extensive expertise in designing and manufacturing high-quality pallet rack systems, offers a new semi-automated technology as a turnkey solution. The pallet shuttle is a lithium-ion powered Pallet Runner™ deep lane storage system from partner Automha Americas, a pioneering pallet shuttle provider, that efficiently moves pallets in and out of high-density storage lanes, creating increased storage density in an existing space. The system is particularly suited to applications with high-volume SKUs, as pallets are loaded into the system by lift truck and transported into deep lanes by the Pallet Runner cart. Once the load is positioned, the cart returns to the front of the system to receive the next pallet. The lift truck operator travels only between load source and lane entry, and the cart does the rest. This maximizes productivity and minimizes travel distance for both product loading and unloading. The Pallet Runner is a cost-effective option for companies looking to streamline their storage processes, reduce operational costs, and ensure a competitive edge in the rapidly evolving market. The deep lanes of the system increase storage density by reducing aisles and utilizing depth space, maximizing storage capacity within the same footprint. The system moves quickly and seamlessly, enhancing efficiency, expediting pallet loading/unloading, and reducing wait time for trucks at loading docks compared to traditional forklift operations. The system can be scaled up or reconfigured with relative ease to accommodate growth or changes in product lines. With less need for forklift drivers to enter storage lanes, the Pallet Runner system reduces labor requirements and associated expenses while improving safety. “The seamless integration of the pallet shuttle technology with the pallet rack systems will offer warehouses and distribution centers increased automation, efficiency, flexibility, productivity, and safety,” said Don Heemstra, VP of Sales and Marketing for Steel King. About the Author: Del Williams is a technical writer based in Torrance, California.
MAHLE aftermarket achieves milestone in Operational Efficiency with AutoStore empowered by Kardex
MAHLE Aftermarket turned to Kardex for an automated storage and retrieval solution following a shift in orders from large pallets to mixed-SKU single cartons and storage constraints at its Olive Branch, Mississippi fulfillment center, with the global parts and solutions provider ultimately selecting AutoStore empowered by Kardex Having witnessed a trend towards more small package orders and less frequent large stock pallet orders, MAHLE Aftermarket selected a highly efficient AutoStore empowered by the Kardex robotic cube storage system to increase capacity and throughput. A global parts and solutions provider to the independent aftermarket was also experiencing storage capacity constraints at its Olive Branch, Mississippi distribution center. MAHLE looked for a high-density storage solution that would enable it to adapt to the shift in customer order profiles and is scalable for future growth. Having examined various options, MAHLE Aftermarket invested in the AutoStore empowered by the Kardex solution. The project has been hailed a success by MAHLE, helping the company store more products in less space and ship small orders more efficiently. Working together proves successful for MAHLE and Kardex MAHLE chose Kardex to implement the intelligent goods-to-person automated storage and retrieval system (ASRS) tailored to MAHLE Aftermarket’s material flow, with market-leading inventory storage density and processing. The complete AutoStore solution at the Mississippi facility comprises 42,000 bins, seven ports, and 18 robots, in addition to a connected conveyor solution with 18 gravity lanes used for consolidation. Designed and planned by the experts at Kardex, the AutoStore solution was built and commissioned on schedule and ramped up quickly and smoothly. Kardex FulfillX maximizes the capabilities of AutoStore robotic cube systems to optimize resources and processes, delivering the fastest order fulfillment solution per square foot on the market. It increases storage capacity by up to 4 times and enhances performance by up to 10 times compared with traditional methods without additional workforce. MAHLE praises density, scalability, and hands-on support MAHLE Aftermarket has hailed the support Kardex provided throughout the project. Lorraine Hinderer, MAHLE Aftermarket Head of Business Innovation and Excellence, says, “One of the reasons we chose Kardex is because compared to the other integrators, they were able to provide an end-to-end solution tailored to our material flow, whereas the others were focused on selling their solution and not a holistic approach. I would recommend Kardex to other companies – and have actually – just due to the way that they support in the whole initial design and sizing… but also in actually implementing the system on-site.” Rhiannon Fisher, MAHLE Aftermarket Head of Business Excellence for the North America region, adds, “The support provided by Kardex exceeded expectations. During the design process, they were very hands-on. They provided support on-site during the entire process and ultimately delivered a turnkey solution.” Fred Fox, Director of Project Success for the Kardex Solutions AutoStore team, explains that Kardex offers clients the flexibility to either leverage Kardex FulfillX, the purpose-built software package designed specifically for AutoStore end-user solutions, integrate other warehouse management systems (WMS), or utilize their own software. In the case of MAHLE Aftermarket, it chose to integrate with its existing SAP Warehouse Management System. “Together, we got a really good solution in place, and that’s just part of who we are and what we want to do,” Fox states. MAHLE Aftermarket prepares for the future with AutoStore empowered by Kardex Following the success of the Olive Branch project, MAHLE Aftermarket automated a second operation in Décines-Charpieu (Lyon), France, including 22,440 storage bins, seven robots, and two workstations. MAHLE continues to evaluate its other locations worldwide to assess if AutoStore, empowered by Kardex, can enhance customer service, increase efficiencies, and standardize its operations. Kardex delivers a wide range of potential solutions for both logistics and manufacturing operations.
Nucor reports 11% consolidated net sales decrease for the first six months compared to prior year
Nucor Corporation announced consolidated net earnings attributable to Nucor stockholders of $645.2 million, or $2.68 per diluted share, for the second quarter of 2024. By comparison, Nucor reported consolidated net earnings attributable to Nucor stockholders of $844.8 million, or $3.46 per diluted share, for the first quarter of 2024 and $1.46 billion, or $5.81 per diluted share, for the second quarter of 2023. In the first six months of 2024, Nucor reported consolidated net earnings attributable to Nucor stockholders of $1.49 billion, or $6.14 per diluted share, compared with consolidated net earnings attributable to Nucor stockholders of $2.60 billion, or $10.26 per diluted share, in the first six months of 2023. “While market conditions have softened compared to recent record-setting years, Nucor remains focused on its long-term growth strategy and has returned more than $1.7 billion to investors through June,” said Leon Topalian, Nucor’s Chair, President and Chief Executive Officer. “Nucor’s strategy to grow our core steelmaking operations and expand into steel-adjacent downstream markets positions the company to create attractive shareholder value and improve the company’s through-cycle earnings profile. I am incredibly proud of the 32,000 men and women of Nucor who are executing this growth plan while achieving the safest start to any year in Nucor’s history.” Financial Review Nucor’s consolidated net sales decreased 1% to $8.08 billion in the second quarter of 2024 compared with $8.14 billion in the first quarter of 2024 and decreased 15% compared with $9.52 billion in the second quarter of 2023. Average sales price per ton in the second quarter of 2024 decreased 2% compared with the first quarter of 2024 and decreased 11% compared with the second quarter of 2023. Approximately 6,289,000 tons were shipped to outside customers in the second quarter of 2024, a 1% increase compared with the first quarter of 2024 and a 5% decrease compared with the second quarter of 2023. Total steel mill shipments in the second quarter of 2024 were comparable to the first quarter of 2024 and decreased 2% compared to the second quarter of 2023. Steel mill shipments to internal customers represented 21% of total steel mill shipments in the second quarter of 2024, compared with 21% in the first quarter of 2024 and 20% in the second quarter of 2023. Downstream steel product shipments to outside customers in the second quarter of 2024 increased by 11% compared with the first quarter of 2024 and decreased by 10% compared with the second quarter of 2023. In the first six months of 2024, Nucor’s consolidated net sales of $16.21 billion decreased 11% compared with consolidated net sales of $18.23 billion reported in the first six months of 2023. Total tons shipped to outside customers in the first six months of 2024 were approximately 12,513,000 tons, a decrease of 4% compared with the first six months of 2023, and the average sales price per ton in the first six months of 2024 decreased 7% compared with the first six months of 2023. The average scrap and scrap substitute cost per gross ton used in the second quarter of 2024 was $396, a 6% decrease compared to $421 in the first quarter of 2024 and a 13% decrease compared to $455 in the second quarter of 2023. The average scrap and scrap substitute cost per gross ton used in the first six months of 2024 was $409, a 6% decrease compared to $435 in the first six months of 2023. Pre-operating and start-up costs related to the Company’s growth projects were approximately $137 million, or $0.43 per diluted share, in the second quarter of 2024, compared with approximately $125 million, or $0.39 per diluted share, in the first quarter of 2024 and approximately $90 million, or $0.27 per diluted share, in the second quarter of 2023. In the first six months of 2024, pre-operating and start-up costs related to the Company’s growth projects were approximately $262 million, or $0.82 per diluted share, compared with approximately $172 million, or $0.52 per diluted share, in the first six months of 2023. Overall, operating rates at the Company’s steel mills decreased to 75% in the second quarter of 2024, compared to 82% in the first quarter of 2024 and 84% in the second quarter of 2023. Operating rates in the first six months of 2024 decreased to 79%, compared to 82% in the first six months of 2023. Financial Strength At the end of the second quarter of 2024, we had $5.43 billion in cash and cash equivalents and short-term investments 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 ratings in the North American steel sector (A-/A-/Baa1), with stable outlooks at Standard & Poor’s and Fitch Ratings and a positive outlook at Moody’s. Commitment to Returning Capital to Stockholders During the second quarter of 2024, Nucor repurchased approximately 2.9 million shares of its common stock at an average price of $170.70 per share (approximately 8.5 million shares during the first six months of 2024 at an average price of $177.30 per share). As of June 29, 2024, Nucor had approximately $1.82 billion remaining authorized and available for repurchases under its share repurchase program. This share repurchase authorization is discretionary and has no scheduled expiration date. On June 6, 2024, Nucor’s Board of Directors declared a cash dividend of $0.54 per share. This cash dividend is payable on August 9, 2024, to stockholders of record as of June 28, 2024, and is Nucor’s 205th consecutive quarterly cash dividend. Second Quarter of 2024 Analysis The largest driver of the decrease in earnings in the second quarter of 2024 as compared to the first quarter of 2024 was the decreased earnings of the steel mills segment, primarily due to lower average selling prices and, to a lesser extent, decreased volumes. The steel products segment had decreased earnings in the second quarter of 2024 as compared to the first quarter of 2024 due to lower average
Fairchild Systems named a 2023 Great 8 Dealer
Fairchild Systems, a division of Fairchild Equipment, has been named one of the top 8 dealers, receiving the prestigious 2023 Great 8 Dealer Award for Wholesale Pallet Rack Products (WPRP). This esteemed recognition highlights Fairchild Systems’ unwavering commitment to excellence, outstanding performance, and dedication to providing top-notch services in the Material Handling Industry. The award underscores the company’s hard work, innovative strategies, and exceptional customer service, setting it apart from the competition. “We are absolutely thrilled to receive the 2023 Great 8 Dealer Award. This honor is a testament to our team’s dedication to delivering the highest quality customized pallet racking solutions for our customers’ unique needs,” said Mike Bruno, Systems Engineering Manager of Fairchild Systems. “Our focus has always been on providing innovative and effective solutions, and this award reinforces our commitment to excellence.” In a highly competitive market, being recognized as one of the Great 8 Dealers is a significant accomplishment that reflects Fairchild Systems’ professionalism and ability to consistently deliver high-quality pallet racking solutions. This success showcases the company’s expertise in the field of warehouse storage and reinforces its position as a leader in the industry. “The Fairchild Systems division of Fairchild Equipment exemplifies our company’s commitment to innovation, quality, and customer satisfaction,” said Van Clarkson, President of Fairchild Equipment. “The team’s relentless pursuit of excellence in providing customized warehouse design, storage, and product flow solutions has been instrumental in achieving this remarkable recognition,” Clarkson added. With a dedicated team of warehouse engineers, Fairchild Systems is committed to delivering customized warehouse design, storage, and product flow solutions to maximize productivity and return on investment (ROI) in customers’ warehouses. The division’s success not only highlights its expertise but also demonstrates its ability to meet and exceed its clients’ material handling needs. Fairchild Systems specializes in warehouse space planning, design, layout, budgeting, supply, installation, and servicing to meet every customer’s material handling needs.
Vertical reciprocating conveyors elevate AGVs and AMRs to new levels of efficiency
Vertical reciprocating conveyors (VRCs) act as the pivotal link between two major trends in warehouse operations that are dramatically increasing efficiency and profitability: Mobile Robots — The widespread adoption of Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs) is transforming the horizontal movement of materials across facilities, revolutionizing logistics and material handling processes. Vertical Space Utilization — Driven by the pursuit of logistics efficiency, along with escalating real estate costs and last-mile distribution demands, warehouses and production facilities are optimizing “cube space utilization” by expanding upwards rather than outwards. Vertical reciprocating conveyors seamlessly integrate the horizontal and vertical material handling processes, facilitating the smooth automated flow of material in three dimensions. These flexible and compact systems can be incorporated into a wide variety of layouts and serve a multitude of different applications. Combining VRCs with mobile robots and other manual and automated equipment often represents the most efficient, safest, and cost-effective solution for accessing taller racking, pick modules, mezzanines, and multiple floor levels, in virtually any type of warehouse or production environment. Rapid Adoption of Mobile Robots AGVs and AMRs are revolutionizing logistics across many industry sectors. In factories, these technological advancements automate material handling and assembly line tasks. This not only boosts production rates but also improves workplace safety by taking over hazardous or repetitive tasks from human workers. Automated Guided Vehicles adhere to predetermined paths, whereas Autonomous Mobile Robots employ sophisticated sensors and artificial intelligence for flexible navigation. AGVs, with their lower initial costs, are sometimes preferred by production and packaging operations in obstacle-free routes where predictable timing of material delivery is paramount. Conversely, AMRs offer unparalleled adaptability in dynamic and chaotic settings, making them ideal for large warehouses and distribution centers. Mobile robots are crucial to the advancement of Industry 4.0, boosting efficiency, flexibility, and automation within manufacturing landscapes. Their capacity for autonomous navigation and task execution across diverse scenarios renders them indispensable in the drive towards more intelligent and interconnected factory ecosystems. In warehouses, the impact of these robots is even more visible and transformative. Several factors are driving the swift adoption: E-commerce Growth: As E-commerce continues to experience explosive growth, with next-day-delivery expectations and direct-to-consumer marketing models, AGVs and AMRs are key to meeting the demand for quicker order fulfillment and inventory management. Complexity of Modern Distribution: The modern warehouses and distribution centers need to rapidly evolve from classic distribution models to an omni-channel model with the agility to pick case packs, fill retail store orders, pick and pack single consumer orders, and process customer returns and product refurbishments. Labor Shortages and Rising Costs: With ongoing labor shortages, particularly in logistics and manufacturing, AGVs and AMRs offer a solution by automating repetitive tasks. Technological Advancements: Enhanced sensors, AI, and better batteries have made AGVs and AMRs more adaptable and efficient, capable of performing complex tasks autonomously. Safety and Efficiency: Compared to forklifts and manual material handling equipment, AGVs and AMRs improve workplace safety and operational efficiency, handling hazardous tasks and operating 24/7 with precision. Vertical Cube Utilization Two to three decades ago, distribution centers typically featured clear heights of 24 to 32 feet – the vertical space from the floor to the ceiling. Today, driven by the scarcity and increased costs of land, especially near urban centers, and advances in fire protection and material handling technology, the industry standard for clear heights has shifted to 36 and 40 feet, with demand growing for even taller structures. The shift towards taller buildings is also fueled by the rapid growth in multi-level facilities, specifically designed to optimize last mile distribution, accommodating the increasing demand for faster and more efficient delivery systems in densely populated areas. Leveraging the “vertical cube” not only maximizes storage but also streamlines operations, improving material handling, increasing productivity, and ensuring safety without necessitating horizontal expansion. The utilization of upper levels also frees up prime dock-level real estate for crucial shipping, receiving, or re-packaging processes. Furthermore, the concept of cubic utilization in warehouse and factory design marks a significant shift towards sustainability and energy efficiency. By maximizing cubic space while minimizing the square footage of the building’s exterior envelope, facilities significantly reduce HVAC costs. This approach not only lowers initial investment in land and construction but also yields long-term savings in maintenance, operations, and even property taxes. VRCs are Ideal for Automated Material Handling The symbiotic relationship between these two trends — mobile robots and the utilization of vertical space — mediated through Vertical Reciprocating Conveyor technology, exemplifies how the strategic adoption of advanced automation technologies and space utilization concepts can revolutionize warehousing and manufacturing. A VRC functions like an elevator, with one fundamental difference — VRCs are intended to move material loads, not people. They are regulated as a conveyor (under ASME B20.1) and not people-moving elevators, making them less costly to install and maintain than an elevators. VRCs have an enclosed platform that prevents loads from falling as they are lifted and lowered. This makes them far safer to operate than forklifts or scissor lifts. VRCs safeguard employees from injuries incurred while transporting items on staircases and deter the misuse of forklifts beyond their safe mast lift height limits. Flexibility VRCs are a versatile solution that can be installed next to mezzanines, in existing elevator shafts, or through floors, and they can also be installed outdoors. Vertical Reciprocating Conveyors (VRCs) stand out for their exceptional versatility and adaptability, opening a myriad of automated material handling opportunities. They seamlessly integrate with mobile robots and automated conveyor systems, or they can be manually loaded and unloaded. AGVs, AMRs and driverless forklifts can travel with the load on the VCR and continue travel when they arrive at the destination floor. Alternatively, they can efficiently transfer loads onto the VRC at one level, and then another system —whether it’s another AGV, AMR, or a different automated or manual material handling method — can take over at a different level. Furthermore, VRCs can effortlessly connect with automated horizontal conveyor systems, facilitating the smooth flow of
Nucor reports results for the First Quarter of 2024
Net earnings attributable to Nucor stockholders of $844.8 million, or $3.46 per diluted share Net sales of $8.14 billion Net earnings before noncontrolling interests of $959.0 million; EBITDA of $1.50 billion Nucor Corporation has announced consolidated net earnings attributable to Nucor stockholders of $844.8 million, or $3.46 per diluted share, for the first quarter of 2024. By comparison, Nucor reported consolidated net earnings attributable to Nucor stockholders of $785.4 million, or $3.16 per diluted share, for the fourth quarter of 2023 and $1.14 billion, or $4.45 per diluted share, for the first quarter of 2023. “Nucor’s performance continues to be strong even as steel market conditions have come off their post-pandemic record highs,” said Leon Topalian, Nucor’s Chair, President, and Chief Executive Officer. “We also took several bold steps to advance our growth, sustainability, and commercial strategies during the first quarter. We broadened our capabilities in the rapidly growing data center market, announced new partnerships to supply our customers with low-carbon steel and accelerate the development of cleaner forms of energy, and introduced the Nucor Consumer Spot Price for our hot-rolled coil products to provide our customers with more timely and transparent information.” Selected Segment Data Earnings (loss) before income taxes and noncontrolling interests by segment for the first quarter of 2024 and 2023 were as follows (in thousands): Three Months (13 Weeks) Ended March 30, 2024 April 1, 2023 Steel mills $ 1,102,251 $ 838,388 Steel products 511,559 970,802 Raw materials 9,581 58,140 Corporate/eliminations (398,050) (270,546) $ 1,225,341 $ 1,596,784 Financial Review Nucor’s consolidated net sales were $8.14 billion in the first quarter of 2024, a 6% increase compared to $7.70 billion in the fourth quarter of 2023 and a 7% decrease compared to $8.71 billion in the first quarter of 2023. Average sales price per ton in the first quarter of 2024 increased 1% compared to the fourth quarter of 2023 and decreased 3% compared to the first quarter of 2023. A total of 6,224,000 tons were shipped to outside customers in the first quarter of 2024, an increase of 5% compared to the fourth quarter of 2023 and a decrease of 3% compared to the first quarter of 2023. Total steel mill shipments in the first quarter of 2024 increased 7% compared to the fourth quarter of 2023 and decreased 2% compared to the first quarter of 2023. Steel mill shipments to internal customers represented 21% of total steel mill shipments in the first quarter of 2024, compared to 20% in the fourth quarter of 2023 and the first quarter of 2023. Downstream steel product shipments to outside customers in the first quarter of 2024 decreased 5% from the fourth quarter of 2023 and decreased 15% from the first quarter of 2023. The average scrap and scrap substitute cost per gross ton used in the first quarter of 2024 was $421, a 6% increase compared to $397 in the fourth quarter of 2023 and a 2% increase compared to $414 in the first quarter of 2023. Pre-operating and start-up costs related to the Company’s growth projects were approximately $125 million, or $0.39 per diluted share, in the first quarter of 2024, compared with approximately $127 million, or $0.39 per diluted share, in the fourth quarter of 2023 and approximately $82 million, or $0.24 per diluted share, in the first quarter of 2023. Overall operating rates at the Company’s steel mills increased to 82% in the first quarter of 2024 compared to 74% in the fourth quarter of 2023 and 79% in the first quarter of 2023. Financial Strength At the end of the first quarter of 2024, we had $5.54 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 (A-/A-/Baa1) with stable outlooks at Standard & Poor’s, Fitch Ratings and Moody’s. Commitment to Returning Capital to Stockholders During the first quarter of 2024, Nucor repurchased approximately 5.5 million shares of its common stock at an average price of $180.79 per share. As of March 30, 2024, Nucor had approximately $2.32 billion remaining authorized and available for repurchases under its share repurchase program. This share repurchase authorization is discretionary and has no scheduled expiration date. On February 20, 2024, Nucor’s Board of Directors declared a cash dividend of $0.54 per share. This cash dividend is payable on May 10, 2024 to stockholders of record as of March 28, 2024 and is Nucor’s 204th consecutive quarterly cash dividend. First Quarter of 2024 Analysis Steel mills segment earnings in the first quarter of 2024 increased from the fourth quarter of 2023, primarily due to higher average selling prices and increased volumes, particularly at our sheet mills. Earnings in the steel products segment decreased in the first quarter of 2024 as compared to the fourth quarter of 2023 due to lower average selling prices and decreased volumes. Earnings in the raw materials segment increased in the first quarter of 2024 as compared to the fourth quarter of 2023. Second Quarter of 2024 Outlook We expect earnings in the second quarter of 2024 to decrease compared to the first quarter of 2024. The largest driver for the expected decrease in earnings in the second quarter of 2024 is the decreased earnings of the steel mills segment, primarily due to lower average selling prices partially offset by modestly increased volumes. The steel products segment is expected to have moderately decreased earnings in the second quarter of 2024 as compared to the first quarter of 2024 due to lower average selling prices, partially offset by increased volumes. Earnings in the raw materials segment are expected to be higher in the second quarter of 2024 as compared to the first quarter of 2024 due to the increased profitability of our direct reduced iron facilities and scrap processing operations.
Nucor to acquire manufacturer of data center infrastructure
Nucor Corporation just announced that it has acquired Southwest Data Products, Inc. (SWDP), a manufacturer and installer of data center infrastructure for $115 million. SWDP’s offices and manufacturing facility are in San Bernardino, California and the company employs approximately 147 teammates. Nucor is also announcing the launch of Nucor Data Systems, a new business unit that will help better serve our customers in the data center infrastructure industry. “We are excited to add SWDP and new teammates to our Nucor family of companies. This acquisition will give us new capabilities to serve a rapidly growing market and will bolster Nucor as a preferred supplier to many of the nation’s largest and most innovative hyperscale cloud and colocation data center operators,” said Chad Utermark, Executive Vice President of New Markets and Innovation. “The SWDP acquisition furthers our expand beyond strategy to invest in steel-centric businesses that operate outside of the cyclical nature of steel production.” Specifically, SWDP and Nucor Data Systems will provide Nucor’s Warehouse Systems businesses with expanded capabilities in airflow containment structures, as well as new product capabilities that include manufacturing cabinets/enclosures and caging for data centers and installation services. SWDP’s compatibility with Nucor Warehouse Systems’ current manufacturing capabilities will create significant growth opportunities, and SWDP’s location near Nucor Warehouse Systems’ production facility in southern California will facilitate both integration and growth efforts. This acquisition also creates a number of synergies with Nucor’s core steelmaking business. SWDP uses many types of steel as raw material that can be provided by Nucor facilities, including sheet steel, steel tubing, and wire mesh. With our circular, recycling-based steel production process, sourcing steel from Nucor mills will ensure our nation’s green and digital economy is being built with low embodied carbon steel. SWDP has a strong reputation for high-quality products, fast lead times, and quality installation services. The company has an exceptional customer base of leading companies requiring data centers. Growth in data centers is being fueled by the increasing use of artificial intelligence, cloud-based services, and video streaming across a growing number of applications.
Google, Microsoft, and Nucor announced a new clean electricity technology initiative
Google LLC, Microsoft Corporation, and Nucor Corporation have announced they will work together across the electricity ecosystem to develop new business models and aggregate their demand for advanced clean electricity technologies. These models will be designed to accelerate the development of first-of-a-kind (FOAK) and early commercial projects, including advanced nuclear, next-generation geothermal, clean hydrogen, long-duration energy storage (LDES), and others. As a first step, the companies will issue an RFI in several US regions for potential projects in need of offtake, and encourage technology providers, developers, investors, utilities, and others interested in responding to get in touch here. According to the International Energy Agency (IEA), firm, dispatchable clean electricity technologies and advanced energy storage systems are needed to cost-effectively decarbonize grids and help the world meet its growing electricity demand with carbon-free energy sources. These advanced clean electricity technologies can fill gaps in wind and solar production and support grid reliability – needs that today are still being met by fossil fuel generation. Yet, these advanced clean electricity technologies face challenges, in part because the novelty and risk of early projects make it difficult to secure the financing they need. By developing new commercial structures and aggregating demand from three of the world’s largest energy buyers, this approach aims to reduce the risks for utilities and developers considering early commercial projects and enable the investments that are needed – ultimately helping to bring these projects online by the early 2030s and reducing technology costs through repeated deployment. The companies will initially focus on proving out the demand aggregation and procurement model through advanced technology pilot projects in the United States. The companies will pilot a project delivery framework focused on three enabling levers for early commercial projects: signing offtake agreements for technologies that are still early on the cost curve, bringing a clear customer voice to policymakers and other stakeholders on broader long-term ecosystem improvements, and developing new enabling tariff structures in partnership with energy providers and utilities. In addition to supporting innovative technologies that can help decarbonize electricity systems worldwide, this demand aggregation model will bring clear benefits to large energy buyers. Pooling demand enables buyers to offtake larger volumes of carbon-free electricity from a portfolio of plants, reducing project-specific development risk, and enables procurement efficiencies and shared learnings. To ensure that the project delivery framework that they develop is transparent and scalable, Google, Microsoft, and Nucor will share their lessons learned and the roadmap from their first pilot projects, and encourage other companies to consider how they can also support advanced clean electricity projects.
Nucor Warehouse Systems begins rack supported AS/RS cold storage project
Nucor Warehouse Systems has been selected to provide a structural rack for a hundred-foot-tall, rack-supported building using an advanced AS/RS for a cold storage warehouse that houses dairy products on the East Coast. This new project is part of the company’s strategy of increasing automation projects and leveraging its internal expertise for rack-supported buildings where temperature, precision, and engineering are paramount. What makes this project unique is its need to connect to an existing structure that is also a cold-storage environment. Due to the height of the building, the flexibility of the new system is key to allow for both structures to work independently and ensure the safety of the structure and its temperature-sensitive products during usage. With more than 7,600 pallet positions planned for this warehouse, the AS/RS will also include two, three pallet-deep cranes as well as pick tunnels to allow for human intervention for fast picking and loading onto trucks as needed. “Nucor Warehouse Systems made a commitment last year to continue to invest in projects that would leverage our expertise of planning, engineering, and executing on rack-supported buildings,” said Daniel Aguirre, national sales manager at Nucor Warehouse Systems. “As we go into production on this large-scale project, we are working with the customer to ensure all challenges are met with confidence and a proactive approach.” The project goes into production this spring and the system is expected to be delivered onsite as the building begins construction in the summer 2024
Steele Solutions showcasing advanced structural steel platforms and material handling chutes at MODEX 2024
Booth highlights will include exclusive demonstrations of the future of elevated structural platforms and SST™ material handling chutes, with individual consultations on enhancing operational efficiency. Steele Solutions Inc., a manufacturer of structural steel work/equipment platforms, material handling chutes, and public-safety security lockers, has announced its participation in MODEX 2024 at the Georgia World Congress Center in Atlanta, Georgia, Monday, March 11 – Thursday, March 14. Attendees are invited to visit Steele Solution’s booth #C5081, conveniently located in Hall C on the main aisle, opposite the main entrance, and near the MODEX Backyard food court. “Steele Solutions is committed to delivering superior engineering and manufacturing solutions that meet the evolving needs of our customers,” said Kevin O’Neill, CEO of Steele Solutions. “Our participation in MODEX 2024 represents an excellent opportunity to showcase our latest innovations in structural steel platforms and chutes. We enjoy meeting one-on-one with attendees, listening to their challenges, and demonstrating how our tailored solutions can enhance operational efficiency and safety for businesses across various industries.” What to Expect at Steele Solution’s MODEX 2024 booth: Advanced elevated structural platforms: Discover the most advanced platforms that eliminate cross-bracing and offer increased space for walkways, workspaces, and storage. Slick Surface Technology (SST™) Material Handling Chutes: Experience firsthand the quality of SST material handling chutes, featuring a 100% welded, bolt-free frame for easier assembly, improved structural integrity, and reduced maintenance. Solution Center for Custom Solution Capabilities: Visit our new Solutions Center to learn how Steel Solution’s team of over 60 engineers can tackle complex challenges with tailored product solutions. Expert consultations: Schedule a meeting with our team of sales and project management representatives to discuss specific product needs and find out how we can assist in optimizing operations. Steele Solutions is known for its engineering expertise and dedication to producing high-quality products in the United States, serving e-commerce, retail, distribution, and manufacturing customers globally. For an in-depth and hands-on review of the future of structural steel platforms and material handling chutes, MODEX 2024 attendees can visit booth #C5081 on Monday, March 11, until Wednesday, March 13, from 10:00 a.m. – 5:00 p.m., and Thursday, March 14, from 9:00 a.m. – 1:00 p.m.
New Age Industrial promotes Scott Schrum to Assistant National Sales Manager
New Age Industrial has announced the promotion of Scott Schrum to Assistant National Sales Manager of the Material Handling Division. Scott is a driven business leader with over 30 years of success driving growth through effective sales and management strategies. He holds a Bachelor of Business Administration degree with a minor in Economics obtained from the University of Kansas. “With his deep commitment to customer focus, workplace safety, and efficiency, Scott truly embodies the core values of New Age Industrial,” said Tom Sharp, Vice President at New Age Industrial. “His ability to build strong, meaningful relationships will be crucial as we continue to expand our national presence. We’re thrilled to have him on the leadership team; his expertise in supply chain optimization and problem-solving skills will drive improvements throughout our operations and benefit our customers as well.” In his new position, Scott will collaborate with the New Age Industrial Sales and Marketing Teams, along with the manufacturer’s representatives, to secure existing business and generate new opportunities. Additionally, he will represent the company at key national trade shows alongside the Material Handling Team. Scott is eager to share his expertise in custom aluminum solutions and collaborate with manufacturers’ representatives, dealers, and consultants to optimize operations for their customers. Scott shared, “We have a unique opportunity to empower businesses by improving efficiency, safety, and overall operations through customized solutions.” Vice President, Tom Sharp said, “We congratulate Scott Schrum on his recent promotion to Assistant National Sales Manager. He will be instrumental in driving continued growth and success. We are confident that he will make significant contributions to the company and look forward to the future with him on board.”
Maximizing Warehouse Space: Unleashing potential with Next Level’s Mezzanine Solutions
Optimizing warehouse space is a critical endeavor for businesses looking to enhance efficiency and reduce operational costs. One innovative solution gaining popularity is the use of mezzanine systems, and Next Level stands out as a provider that prioritizes strength, stability, and cost-effectiveness. In this article, we explore how Next Level’s mezzanine systems can help you maximize your warehouse space with their robust features and thoughtful design. Section 1: The Strength Advantage Next Level distinguishes itself through an unwavering commitment to providing mezzanine systems with unparalleled strength. The foundation of this strength lies in the meticulous selection of materials and construction techniques employed by Next Level, ensuring that their mezzanine systems offer robust support for diverse loads while maintaining long-term durability. Next Level’s emphasis on utilizing the strongest possible connections within their mezzanine systems speaks directly to the reliability and safety of these structures. Heavy-duty columns, carefully chosen for their load-bearing capabilities, are strategically incorporated to create a solid framework that stands up to the challenges of a bustling warehouse environment. This robust construction not only allows for the efficient use of vertical space but also instills confidence in businesses looking to optimize their storage and operational capacities. Moreover, the strength advantage provided by Next Level’s mezzanine systems contributes to the overall stability of the structure. This is especially crucial in warehouses dealing with heavy inventory or machinery. The mezzanine’s ability to withstand substantial loads without compromising stability ensures a secure and dependable platform for storage or operational needs. Beyond the immediate benefits, the strength advantage becomes a long-term asset for businesses, minimizing concerns related to structural integrity and reducing the likelihood of costly repairs or replacements. By investing in Next Level’s mezzanine systems, businesses can be confident that their warehouse space is fortified with a foundation designed to withstand the rigors of daily operations while providing a robust and enduring solution for maximizing storage capacity. Section 2: Stability without Bracing One of the distinctive features that sets Next Level’s mezzanine systems apart is their innovative design that eliminates the need for knee bracing or diagonal bracing. This design philosophy goes beyond mere aesthetics, presenting tangible benefits in terms of both installation simplicity and the creation of a versatile and unencumbered workspace beneath the mezzanine. Traditional mezzanine structures often require diagonal bracing or knee bracing to enhance stability, which can, in turn, limit the open space below. Next Level challenges this norm by engineering mezzanine systems that boast inherent stability without the need for additional bracing elements. This not only simplifies the installation process but also opens up possibilities for businesses seeking a more flexible and streamlined floor plan. The absence of knee bracing or diagonal bracing beneath the mezzanine creates a spacious and obstruction-free area that businesses can utilize for a variety of purposes. Whether it’s organizing inventory, setting up workstations, or accommodating machinery, the unobstructed space fosters an environment where operational efficiency and adaptability thrive. Furthermore, this design choice contributes to a cleaner and more visually appealing warehouse layout. The absence of additional bracing elements not only enhances the overall aesthetics but also facilitates easier navigation and movement within the warehouse. Businesses can, therefore, design their floor space with greater freedom, optimizing the layout to suit specific operational needs without the constraints imposed by traditional bracing requirements. In summary, Next Level’s commitment to stability without bracing not only simplifies the installation process but also transforms the space beneath the mezzanine into a versatile canvas for businesses to optimize their workflow and spatial efficiency. It’s a testament to Next Level’s forward-thinking approach to mezzanine design, providing a solution that not only meets structural requirements but also enhances the overall functionality and aesthetic appeal of the warehouse environment. Section 3: Zinc Coating for Durability Next Level takes a proactive approach to ensuring the longevity and durability of their mezzanine systems by offering zinc-coated beams, struts, and joists as a standard feature from the factory, without incurring any additional cost. This meticulous coating process involves applying a layer of zinc to the structural components, creating a protective barrier against corrosion, rust, and environmental wear and tear. The zinc coating not only serves as a shield against the harsh conditions commonly found in industrial environments but also enhances the overall lifespan of the mezzanine system. This protective layer acts as a corrosion-resistant barrier, preventing degradation over time and reducing the need for frequent maintenance. As a result, businesses can rely on Next Level’s mezzanine systems for sustained performance, minimizing the risk of structural deterioration that might compromise the safety and functionality of the warehouse space. In addition to its protective qualities, the zinc coating contributes to the aesthetic appeal of the mezzanine components. The clean and polished appearance not only reflects a commitment to quality but also adds a professional touch to the overall warehouse environment. By incorporating zinc-coated elements into their mezzanine systems, Next Level ensures that businesses not only maximize their storage capacity but also invest in a solution that stands the test of time and looks great doing it. Section 4: Cost-Effective Solutions Next Level’s dedication to providing zinc-coated components without additional charges extends beyond durability; it translates into a cost-effective solution for businesses seeking to expand their warehouse space. The decision to include zinc coating as a standard feature without extra cost reflects Next Level’s commitment to delivering value and reducing the total cost of ownership over the lifespan of the mezzanine system. By opting for Next Level’s mezzanine systems, businesses not only benefit from the durability and corrosion resistance of zinc-coated components but also make a strategic investment in long-term cost savings. The reduced need for maintenance and potential replacements due to corrosion leads to lower operational costs and a higher return on investment over time. In summary, Next Level’s combination of zinc coating for durability and a commitment to cost-effective solutions ensures that businesses not only maximize their warehouse space but do so with a keen eye on durability, maintenance costs, and long-term financial benefits. It’s
MODEX attendees bring big spending plans to the biggest supply chain event of 2024
Attendees are looking to invest in automation, robotics, and tech solutions to improve the speed and resiliency of their supply chain operations With MODEX 2024 just over one month away, attendee registrations are tracking well above the last in-person MODEX event. Looking at attendees that have registered to date, they are high in quality as well and represent the majority of the Fortune 1000, top 100 retailers, and top 100 consumer goods firms. We are also seeing record numbers of buying teams from these firms planning to attend. When attendees register, they are asked to answer a variety of demographic questions indicating their industry, product interest, buying authority, and spending plans. Below are some highlights from current MODEX attendee demographics. 85% have buying power 81% are coming to see new products and innovations 62% are coming to network and learn 35% plan on spending over $1 million over the next 18 months 47% are corporate or senior management 32% are middle management or IT/Engineering 69% are looking for solutions for distribution centers or warehouses supporting manufacturing 23% are looking for solutions for manufacturing facilities When it comes to the solutions, MODEX 2024 attendees are looking for a wide range of equipment and technologies for their supply chain operations. However, there is a heightened interest in automation, robotics, autonomous vehicles, and emerging technologies. The top product interest categories for attendees currently are: Automatic Guided Vehicle Systems Artificial Intelligence/Machin Learning Automated Storage/Retrieval Systems Autonomous Fork Trucks Conveyors Robotics Autonomous Mobile Robots Forklift Trucks Distribution & Warehousing Software Sustainability and Alternative Energy Solutions including Batteries Racks Pallets and Palletizers Order Picking and E-commerce Fulfillment Packaging and Parcel Shipping Solutions These statistics are an early indication of growth of the MODEX event and the high interest attendees in investing in the manufacturing and supply chain equipment and systems that will be showcased at MODEX. MODEX will be held March 11-14 at Atlanta’s Georgia World Congress Center and will be the most important week in 2024 for the manufacturing and supply chain industry. The event will feature over 1,175 exhibits, 200 educational seminars and 5 keynotes. For more information and to register for free admission to attend MODEX, visit modexshow.com.
Creform flow rack is ready to provide an organized flow of materials.
Creform Corporation, a manufacturer of unique products for material handling structures has designed and built a stair-stepped mobile flow rack to be used lineside by an automotive parts supplier. The flow rack enables lean manufacturing principles by providing a seamless and organized flow of materials and helps reduce waste while improving overall efficiency in the production process. The gravity flow rack assists in first-in, first-out (FIFO) inventory management. ensuring that materials are used in the order that they are received. The compact design allows for lineside placement, minimizing the need for excessive floor space. The pictured unit is 63″ T x 66″ D x 66″ W, can hold up to 1500 lb., and is built using Creform 28 mm pipe which provides flexibility and reusability for the user. Higher capacity and custom rack sizes and configurations are possible with Creform’s 42mm product line of pipe and joints. Further, the 42mm product line can integrate seamlessly with the 28mm system. The flow rack features three supply levels and one return level for product presentation in a stair-stepped setup. Each level has four lanes utilizing Creform skate wheel conveyors for shallow flow lane angles that are suitable for both plastic returnable totes as well as cardboard. Creform conveyors are sturdy and made with durable materials to ensure a robust and long-lasting flow rack. They are designed to withstand the demands of the toughest industrial environments. Lane dividers are located in the middle of each section of the rack and are used to organize the boxes into a specific lane. Each of the cart’s levels can be repositioned with only simple tools. With the stair step design, each level can be raised or lowered without changing the length of the conveyor. This greatly simplifies adjustment. The unit features six swivel-lock casters and three fixed in the center to allow for stability and ease of movement. Each caster can be locked in place when the need arises. The unit is built with blue pipe color, but as with all Creform flow racks, a wide variety of pipe colors are available, and accessories can include information sheet holders, label holders, tool storage, hooks to hang tools, and other supplies. As well as built with feet, rather than wheels. Creform Structures can be built for ESD for anti-static applications. Available as a kit or an assembled structure or in the component form for a complete DIY solution. The Creform System is used to create an array of material handling and efficiency-enhancing devices and is a proven component in continuous improvement and lean manufacturing programs. The company partners with customers in developing and implementing these programs.
Nucor reports results for the Fourth Quarter and Full Year 2023
Fourth quarter and full year 2023 diluted EPS of $3.16 and $18.00, respectively. Fourth quarter and full year 2023 net earnings before noncontrolling interests of $872.8 million and $4.91 billion, respectively; EBITDA of $1.36 billion and $7.41 billion, respectively. 2024 is expected to be another strong year as Nucor executes its strategy to grow the core and expand its portfolio of solutions. Capital deployment is expected to increase in 2024 with planned capital expenditures of $3.5 billion, continued evaluation of acquisitions, and share repurchases set to outpace the prior year. Nucor Corporation has announced consolidated net earnings of $785.4 million, or $3.16 per diluted share, for the fourth quarter of 2023. By comparison, Nucor reported consolidated net earnings of $1.14 billion, or $4.57 per diluted share, for the third quarter of 2023 and $1.26 billion, or $4.89 per diluted share, for the fourth quarter of 2022. For the full year 2023, Nucor reported consolidated net earnings of $4.52 billion, or $18.00 per diluted share, compared with consolidated net earnings of $7.61 billion, or $28.79 per diluted share, in 2022. “The Nucor team delivered a strong finish to 2023, which represents the third-most profitable year in our Company’s history. Nucor’s strategy to grow our core steelmaking capabilities and expand beyond into steel-adjacent business lines continues to deliver strong results,” said Leon Topalian, Nucor’s Chair, President, and Chief Executive Officer. “Over the past four years, Nucor has generated an average annual ROE of 33% and has returned approximately $9.7 billion to its shareholders through dividends and share repurchases. We remain optimistic that Nucor’s best days are ahead of us, with a resilient U.S. economy and steel-intensive megatrends driving increased demand for our products. With our strong balance sheet and a broad array of sustainable steel solutions, we believe Nucor is unparalleled for its ability to leverage these market drivers for continued growth.” Financial Review Nucor’s consolidated net sales decreased 12% to $7.70 billion in the fourth quarter of 2023 compared with $8.78 billion in the third quarter of 2023 and decreased 12% compared with $8.72 billion in the fourth quarter of 2022. Average sales price per ton in the fourth quarter of 2023 decreased 8% compared with the third quarter of 2023 and decreased 15% compared with the fourth quarter of 2022. Approximately 5,934,000 tons were shipped to outside customers in the fourth quarter of 2023, a 5% decrease from the third quarter of 2023 and a 3% increase from the fourth quarter of 2022. Total steel mill shipments in the fourth quarter of 2023 decreased 4% compared to the third quarter of 2023 and increased 8% compared to the fourth quarter of 2022. Steel mill shipments to internal customers represented 20% of total steel mill shipments in the fourth quarter of 2023, which was unchanged from the third quarter of 2023 and the fourth quarter of 2022. Downstream steel product shipments to outside customers in the fourth quarter of 2023 decreased 11% from the third quarter of 2023 and decreased 14% from the fourth quarter of 2022. For the full year 2023, Nucor’s consolidated net sales of $34.71 billion decreased 16% compared with consolidated net sales of $41.51 billion reported for the full year 2022. Total tons shipped to outside customers in 2023 were approximately 25,205,000 tons, a decrease of 1% from 2022, while the average sales price per ton in 2023 decreased 15% from 2022. The average scrap and scrap substitute cost per gross ton used in the fourth quarter of 2023 was $397, a 4% decrease compared to $415 in the third quarter of 2023 and a 7% decrease compared to $427 in the fourth quarter of 2022. The average scrap and scrap substitute cost per gross ton used in the full year 2023 was $421, a 14% decrease compared to $492 in the full year 2022. Pre-tax, pre-operating and start-up costs related to the Company’s growth projects were approximately $127 million, or $0.39 per diluted share, in the fourth quarter of 2023, compared with approximately $101 million, or $0.31 per diluted share, in the third quarter of 2023 and approximately $73 million, or $0.22 per diluted share, in the fourth quarter of 2022. In the full year 2023, pre-tax, pre-operating and start-up costs related to the Company’s growth projects were approximately $400 million, or $1.21 per diluted share, compared with approximately $247 million, or $0.71 per diluted share, in the full year 2022. Overall operating rates at the Company’s steel mills were 74% in the fourth quarter of 2023 as compared to 77% in the third quarter of 2023 and 70% in the fourth quarter of 2022. Operating rates for the full year 2023 increased to 78% as compared to 77% for the full year 2022. Included in the results for the fourth quarter of 2022 was an after-tax net benefit of $60.4 million, or $0.24 per diluted share, related to state tax credits and an after-tax net benefit of $88.0 million, or $0.34 per diluted share, related to a change in the valuation allowance of a state deferred tax asset. Also included in the fourth quarter of 2022 results was a pre-tax $96.0 million, or $0.29 per diluted share, write-off of the remaining carrying value of the Company’s leasehold interest in unproved oil and gas properties that is included in the raw materials segment. Financial Strength At the end of the fourth quarter of 2023, Nucor had $7.13 billion in total liquidity, not including the Company’s $1.75 billion revolving credit facility. Nucor continues to have the strongest credit ratings in the North American steel sector (A-/A-/Baa1) with stable outlooks at Standard & Poor’s, Fitch Ratings and Moody’s. Commitment to Returning Capital to Stockholders On December 14, 2023, Nucor’s Board of Directors declared a cash dividend of $0.54 per share. This represents a 6% increase over the prior cash dividend, and is payable on February 9, 2024 to stockholders of record as of December 29, 2023. Nucor has increased its regular, or base, dividend for 51 consecutive years – every year since it first began paying dividends in 1973. During the fourth quarter of 2023, Nucor repurchased approximately 1.0 million shares of its common stock at an average price of $177.18 per share (approximately 9.75 million shares during the full year 2023 at an average price of $159.34 per share). As of December 31, 2023, Nucor had approximately $3.32 billion, or 26 million shares, remaining authorized and available for repurchases under its share repurchase program. This share repurchase authorization is discretionary and has no scheduled expiration date. For the full
Creform to feature several of its products at 2024 Assembly Show South
Creform Corporation, a manufacturer of unique products for the design and building of material handling structures and AGVs, will showcase AGVS, gravity roller conveyors, workstations, carts, and flow racks in booth 863, at the 2024 Assembly Show South, May 1-2, 2024 Nashville, TN. Highlighting the exhibit will be gravity roller conveyors and an AGV which can control up to 50 courses with 128 commands each via HMI touch screen and built-in RFID for traffic control. The Creform System consists of over 700 components including plastic-coated steel pipe, fittings, and accessories for building AGVs, flow racks, carts, workstations, and other material handling structures. The company has over 15 gravity roller conveyors, including Placon and skatewheel. Gravity roller conveyors are effective for difficult material handling challenges because their superior construction and wide plastic wheels accommodate a broad range of applications while being noticeably quiet. AGVs, from simple bolt-on units to sophisticated low-profile tuggers. Systems can be simple loops for kit cart delivery to plant-wide material delivery that are managed by Creform’s traffic control system. Units have a variety of load ratings, configurations, and power sources. Flow racks are designed and built as single-lane parts feeders to supermarket systems for kitting. As with all Creform flow racks, capacity, size, and configurations are all custom-designed for the application. Carts, from small general-purpose push carts to model-specific kitting carts are Creform specialties. They are built using a system of 28 mm and 42 mm plastic-coated steel pipe and metal joints and can be configured for ESD (anti-static) applications. Creform workstations are built for single-person use to multi-person assembly cells. Workstations can be configured for a stand-up or a sit-down position and can be built and designed on wheels or stationary. The Creform System is used to create an array of material handling and efficiency-enhancing devices and is a proven component in continuous improvement and lean manufacturing programs. The company partners with customers in developing and enhancing these programs.
Pat O’Connor announces retirement from Columbia Machine Palletizer Division
Columbia Machine, Inc has announced the retirement of Pat O’Connor after more than 12 years of distinguished service. Pat joined Columbia in August 2011 as the Business Development Manager for the Palletizer Division before being promoted to the role of President in 2014. Pat has spent his entire career in the conveyor, palletizing and material handling industry. Under Pat’s leadership, Columbia’s Palletizer Division has shown sustained growth, developing the broadest and most advanced palletizer product line in the industry. With more than 40 years of experience in engineering, sales, and product development, Pat’s expertise has been vital in solidifying our position as the market leader in North America. “We are grateful for Pat’s exceptional contributions,” said Rick Goode, Chairman and CEO of Columbia Machine, Inc. “His profound knowledge and extensive experience have played a pivotal role in the transformation and advancement of Columbia’s entire palletizer product line. Pat’s visionary leadership has culminated in the formation of an exceptional team, and his unwavering dedication to our customers, our company, and the industry at large will undoubtedly leave a lasting legacy for generations to come.” “As we approach this transition, we are pleased to announce that Mark MacDonald will take over the role of President of our Palletizer Division.” said Goode. Mark began his career at Columbia in January 2015 as the Applications Engineering Manager and has built a team highly qualified Engineers. Mark has a Mechanical Engineering Degree from the University of Missouri School of Science and Technology and an MBA from St. Louis University. Prior to joining Columbia, Mark has previously held positions as an Applications Engineer (in the Palletizer industry), Sourcing Commodities Manager at GKN Aerospace and Purchasing Manager at Duke Manufacturing. A planned leadership transition has already begun with Pat and will continue over the next few months. “Please join me in thanking Pat for his years of committed service and wishing him all the best in his retirement. Let us also extend a welcome to Mark as he steps into his new role.” added Goode.
Containment netting for rack supported Mezzanine Safety Gates
Mezzanine Safeti-Gates, Inc., an innovator in the design and manufacturing of pallet drop safety gates that provide fall protection in distribution centers, warehouses, and manufacturing and material handling facilities, announced that the Rack Supported safety gate designs can now include product containment netting. The Product Containment add-on offers high strength, and high visibility netting on the ledge gate to prevent products from falling from elevated rack systems. Fall protection topped the Occupational Safety and Health Administration’s (OSHA) list of most frequently cited standards in 2023, and in 2020 the Bureau of Labor Statistics reported almost 17% of worker injuries were caused by contact with objects or equipment, which includes being struck by falling objects. The Product Containment option for the Rack Supported safety gate design eliminates both the risk of employees and products falling from ledges of pallet drop areas in pick modules or large rack storage systems. “Today’s material handling environment emphasizes speed when moving products through facilities, which can sometimes lead to pallet jacks and other equipment accidentally knocking product out of place,” said Aaron Conway, president of Mezzanine Safeti-Gates, Inc. “This brings not only a risk of product falling and striking an employee but also the human tendency to reach into the loading zone to grab that object.” Product containment netting systems for mezzanine safety gates prevent items two (2) inches or larger from falling from the elevated pallet drop area. When the area is being loaded with material, the ledge gate is open with the netting compacted out of the way, into the system. After loading is complete, the ledge gate is closed and the netting extends from the deck to the top frame of the gate, providing full-length coverage on the ledge side. In addition, the netting prevents employees from inserting their hands into the loading zone. Used in thousands of locations throughout the world, pallet drop safety gate systems offered by Mezzanine Safeti-Gates fully comply with OSHA’s Walking-Working Surface Fall Protection regulations as well as ANSI fall protection standards. Safety gate designs can be purchased in a variety of sizes including standard stock single and double wide pallet widths, and custom-engineering to accommodate specific requirements. Power, remote operation, radio frequency sensors, photo eyes, and integration with WMS systems can be added to all models.
Boosting efficiencies in the warehouse in a tough labor market
Ken Ramoutar sees productivity as a multi-dimensional concept. Ramoutar, chief marketing officer at Lucas Systems, said when he started in the industry over two decades ago, few would have anticipated the coming labor force challenges. “I’m not sure warehouse workers were viewed as a huge value and asset, and now they are,” said Ramoutar, who said the pandemic has accelerated this view. Now, the focus is on how to compete for the workforce, he said. “It’s more than productivity,” said Ramoutar, who said the traditional concept of more work for lower expenses has expanded. “There’s a whole notion of what can I do, not to make everybody work faster, but how do I make the jobs easier. If I make the job easier, I am more likely to have a workforce that wants to be here and stay here,” he said, adding that this calculation includes labor competition from other warehouses. Lucas Systems offers warehouse optimization solutions using AI, smart software and voice, according to the business website. The company’s tools are in over 400 warehouses worldwide, Ramoutar said. “We talk to customers all day long. The number one issue is the workforce,” he said. Working smarter Lucas Systems’ Jennifer™ software is the heart of the company’s software system, according to Ramoutar. “It’s the Alexus or Siri of the Lucas Systems,” he said, adding that the AI-based system incorporates a real voice and is somewhat like a hand-free system for a personal phone. “A distribution center is a busy place. Instead of looking down at screens or paper, workers can do their work and feel liberated,” Ramoutar said. He said the system helps avoid errors and bolsters efficiency. “There are a couple of things Jennifer does really well. One is around travel pass optimization,” said Ramoutar, who said the system is constantly computing the most efficient travel path inside the warehouse to get the work done, sometimes coordinating pathways for 100 to 200 workers at a time. Ramoutar said running smarter instead of faster using a system like Jennifer can help boost productivity in the range of 20 to 40 percent. Lucas Systems tends to work with mid-size to larger companies, and the sizes of warehouses are increasing, Ramoutar said. “The warehouses are getting bigger. And everybody loves e-commerce. Where’s that all going? That’s accelerating,” he said. Meanwhile, the labor needs are not going away. “All of the data around the labor issue suggest it’s not going to get better,” said Ramoutar, noting that the retiring Boomer generation is 4 million greater than Generation Z. Added to those numbers is the need to appear to younger workers. “Tech plays a pretty big role,” said Ramoutar, who said handing a new employee a clipboard and sending them into the warehouse is not going to appeal to many younger workers. “Companies are going to have to get better at attracting and keeping the labor,” he said. Software and tools like those provided by Lucas help check multiple boxes of need, Ramoutar said. “Software is the fastest thing you can do to get returns,” he said. “As soon as you start running, you’ll get returns right away.” Jennifer was designed to be user-friendly, and Ramoutar said workers typically find that after a few hours that they are comfortable with the technology. The system includes automatic speech recognition and includes over 30 language options. “This is a big deal for some operators. They may have a fairly multicultural workforce. With Jennifer, they can speak their native language and still work in the warehouse,” said Ramoutar, adding that this is appealing for workers. “It’s also attractive for the workforce. We’re going to give you stuff easy for you to use,” he said. The next wave of worker engagement will be using more video game mechanics in the tools, Ramoutar said. “There’s a lot of things that have come out of the gaming industry that can be applied in a service environment,” he said, naming features like competing against oneself or other workers, getting feedback and earning incentives. “It’s kind of making work fun. We think there’s a big opportunity for that,” he said. It all adds up to making the warehouse more dynamic, especially as warehouses handle ever-larger volumes of orders, according to Ramoutar, who said Lucas Systems’ will continually recalculate while operating. “We are constantly making sure everything is optimized,” he said. Productivity at the end of the line At SupplyOne, productivity is also a key area of focus. The company, a distributor of end-of-line packaging equipment, operates in both manufacturing and distribution centers. Chip Reavley, senior vice president of packaging automation, handles oversight and responsibility for the packing equipment and automation team, which includes equipment engineers and factory certified technicians. End-of-line packaging can also be referred to as secondary packaging, according to Reavley. “They’re really synonymous,” he said, noting the wide array of automation points covered by secondary packaging. The company bills itself as the largest independent supplier of custom corrugated and other value-added packaging products, equipment, and services in the U.S. SupplyOne offers a full gamut of automatic and semi-automatic case erecting and case sealing systems, strappers, banders, palletizing and wrapping equipment, as well as associated consumable including custom or stock corrugated films, tapes, strapping, and other materials, according to a SupplyOne press release. The company provides mid-sized manufacturers, food processors, and medical and e-commerce companies “leading packaging programs and complete packaging solutions,” the statement said. SupplyOne’s approach is to offer best-in-class solutions to customers, according to Reavley. “It allows SupplyOne to offer state-of-the-art proven solutions,” he said. The pressure of the labor market continues to influence industry developments, Reavley said. “The labor market has, and continues to be, challenging,” he said, referencing both finding and retaining skilled workers. While labor eliminations were originally a concern with automation, Reavley said the current trend for many is to implement automation to allow for labor reallocation. “It’s so hard to find good labor. They’re redeploying into other areas and automating,” he said. The interest in automation, overall, has been on the rise, according to Reavley. For those unsure about pricing on solutions, he will sometimes ask