Nucor (NUE) and Mercedes-Benz Partner for Eco-Friendly Steel
Nucor Corporation NUE recently signed an agreement with Mercedes-Benz, for the supply of Econiq-RE for the Mercedes-Benz models manufactured at its Tuscaloosa, AL plant.
Since its establishment in 2022, Econiq has been at the forefront of the global steel industry, particularly in certifying low-embodied carbon materials. The introduction of Econiq-RE marks a significant evolution within Econiq, certifying Nucor steel or steel products manufactured using 100% renewable energy. This innovation promises to substantially reduce greenhouse gas emissions, cutting them to less than half of what is produced through conventional extractive blast furnace-based steel production (covering Scopes 1, 2 & 3 emissions).
Nucor expressed gratitude for the opportunity to collaborate with Mercedes-Benz as a strategic supplier of lower-embodied carbon steel. This partnership holds the promise of significantly reducing carbon emissions across the entire supply chain. The Econiq brand is instrumental in helping steel end-users achieve their growth and sustainability objectives. Nucor takes pride in contributing to Mercedes-Benz's journey towards establishing a net carbon-neutral new car fleet, thereby aligning with its sustainability objectives.
In 2023, Nucor announced ambitious Net-Zero science-based greenhouse gas (GHG) targets for 2050. The company has been consistently using nearly 80% recycled scrap through its circular production process, making it the largest recycler in the Western Hemisphere. Nucor's commitment to investing in breakthrough technologies aimed at lowering emissions throughout the supply chain underscores its dedication to reshaping the industry. By focusing on making steel production more sustainable, Nucor is empowering partners to achieve their carbon reduction targets.
Shares of Nucor have moved up 33.1% in a year compared with the industry’s 19% rise.
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In the fourth quarter of 2023, Nucor announced earnings of $3.16 per share, down from $4.89 in the year-ago quarter but surpassing the Zacks Consensus Estimate of $2.83. Despite a decline in net sales by approximately 11.7% year over year to nearly $7.7 billion, the company saw an increase in total sales tons to outside customers for steel mills, rising 8% year over year to 5,513,000 tons. This indicates resilience amid challenging market conditions.
Nucor Corporation Price and Consensus
Nucor Corporation price-consensus-chart | Nucor Corporation Quote
Zacks Rank & Key Picks
Nucor currently carries a Zacks Rank #3 (Hold).
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