Nucor sees Q1 EPS $3.70-$3.80, consensus $3.84

Included in the fourth quarter of 2022 earnings were the following: an approximately $60.4 million net benefit, or $0.24 per diluted share, related to state tax credits; an approximately $88.0 million, or $0.34 per diluted share, net benefit related to a change in a valuation allowance of a state deferred tax asset; and a pre-tax $96.0 million, or $0.29 per diluted share, charge to write-off the remaining carrying value of our leasehold interest in unproved oil and gas properties. The profitability of the steel mills segment is expected to increase in the first quarter of 2023 as compared to the fourth quarter of 2022 due to higher margins and volumes, with the largest improvement expected to occur at our sheet mills. Within the steel products segment, we expect continued strong profitability in the first quarter of 2023, with some decrease expected from the fourth quarter of 2022 due to slower construction activity and some reductions in realized pricing. Overall, we expect first quarter 2023 steel products segment earnings to be higher than the first quarter of 2022. In the raw materials segment, excluding the impact of the impairment charge recorded in the fourth quarter of 2022, we expect increased profitability compared to the fourth quarter of 2022 due to higher volumes at our DRI facilities and scrap recycling and brokerage operations. On a combined basis, the operating income during the first quarter of 2023 from our three business segments is expected to exceed that of the fourth quarter of 2022. However, we expect consolidated net earnings to decrease compared to the fourth quarter of 2022 due to less favorable intercompany eliminations in the first quarter of 2023 and the absence of state tax benefits that were recorded in the fourth quarter of 2022. Fluctuations in intercompany eliminations are largely driven by sales activity between segments and the change in value of intercompany inventory at the end of each quarter based on the timing of shipments between segments and to external customers.