In a Tuesday interview with CNBC’s Jim Cramer, Nucor CEO Leon Topalian gave reassurances that the steelmaker is on the right track despite quarterly earnings that fell short of expectations and weak guidance for the current period.
“I’m comfortable with where we’re at — while prices have moderated some, we’re seeing some strength as we look towards the back half of the year,” Topalian said. “From a volume standpoint, pricing’s a little bit softer, it’s moderated, but, again, this is not time to throw the baby out with the bathwater. We still think 2024 will be a very good year for Nucor.”
Nucor released its quarterly report Monday evening and by Tuesday’s close, shares had declined more than 8%. The company said it expects its steel products segment to have “moderately decreased earnings” in the second quarter compared to the first due to “lower average selling prices, partially offset by increased volumes.”
Topalian conceded that the second quarter would be “a little bit lower,” but insisted that steel products has been “one of our strongest, most resilient, robust performers.” And according to him, Nucor is seeing its earnings moderate after the past few years of intense growth following the pandemic.
“Our shareholders have made a lot of money because we invest for the long term,” he said. “We’re not guiding to, you know, one quarter to the next results, we’re looking for the long-term performance. … Our best days are still in front of us.”
