Nucor CEO Leon Topalian recently discussed the steelmaking company’s earnings report with CNBC’s Jim Cramer, shedding light on why Nucor has experienced significant profitability in recent years.
As the largest steelmaker in North America, Nucor accounts for one-quarter of all steel produced in the U.S. According to Topalian, the company has achieved remarkable financial success over the past three years, surpassing its earnings from the previous two decades combined. This achievement, Topalian attributes in part to Nucor’s diversified business operations across various sectors.
“This represents the third most profitable year in Nucor’s history behind 2022 and 2021,” Topalian highlighted during the company’s earnings call. “In fact, Nucor’s combined net earnings over the past three years exceed the combined net earnings of the last 20 years. This is a testament to the focus and dedication of our team as we execute our strategy to grow the core, Expand Beyond, and live our culture.”
Topalian emphasized Nucor’s strategic approach of expanding its core steelmaking assets while venturing into adjacent steel-centric businesses that are less susceptible to the cyclical nature of the steel industry. “We’re touching every sector of the economy from automotive to Ag to energy to all the megatrends, we’re moving our company and positioning us for higher highs,” he explained.
Nucor’s success is further bolstered by government initiatives aimed at boosting demand for steel and promoting domestic manufacturing. Topalian cited the Biden administration’s $1 trillion infrastructure bill and legislation supporting U.S. semiconductor production as key drivers of increased business for Nucor. As chip makers construct new plants, Nucor stands to benefit from heightened demand for steel.
“We think about power transmission, grid hardening, rebuilding the entire infrastructure of the United States,” Topalian noted. “Nucor is poised and ready to capitalize on all of that.”
Following these revelations, Nucor’s stock surged nearly 7% by the close of trading on Tuesday.a
