filings.toolsItem 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Certain statements made in this report, or in other public filings, press releases, or other written or oral communications made by Nucor, which are not historical facts are forward-looking statements subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties which we expect will or may occur in the future and may impact our business, financial condition and results of operations. The words “anticipate,” “believe,” “expect,” “intend,” “project,” “may,” “will,” “should,” “could” and similar expressions are intended to identify those forward-looking statements. These forward-looking statements reflect the Company’s best judgment based on current information, and, although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this report. Factors that might cause the Company’s actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including pressure from imports and substitute materials; (2) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to general market conditions, and in particular, prevailing market steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) the availability and cost of electricity and natural gas, which could negatively affect our cost of steel production or result in a delay or cancellation of existing or future drilling within our natural gas drilling programs; (5) critical equipment failures and business interruptions; (6) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the United States; (7) impairment in the recorded value of inventory, equity investments, fixed assets, goodwill or other long-lived assets; (8) uncertainties and volatility surrounding the global economy, including excess world capacity for steel production, inflation and interest rate changes; (9) fluctuations in currency conversion rates; (10) significant changes in laws or government regulations affecting environmental compliance, including legislation and regulations that result in greater regulation of greenhouse gas emissions that could increase our energy costs, capital expenditures and operating costs or cause one or more of our permits to be revoked or make it more difficult to obtain permit modifications; (11) the cyclical nature of the steel industry; (12) capital investments and their impact on our performance; (13) our safety performance; (14) our ability to integrate businesses we acquire; (15) the impact of any pandemic or public health situation; and (16) the risks discussed in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and elsewhere in this report.
Caution should be taken not to place undue reliance on the forward-looking statements included in this report. We assume no obligation to update any forward-looking statements except as may be required by law. In evaluating forward-looking statements, these risks and uncertainties should be considered, together with the other risks described from time to time in our reports and other filings with the United States Securities and Exchange Commission.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this report, as well as the audited consolidated financial statements and the notes thereto, “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in Nucor’s Annual Report on Form 10-K for the year ended December 31, 2023.
Overview
Nucor and its affiliates manufacture steel and steel products. Nucor also produces DRI for use in its steel mills. Through DJJ, the Company also processes ferrous and nonferrous metals and brokers ferrous and nonferrous metals, pig iron, hot briquetted iron and DRI. Most of Nucor’s operating facilities and customers are located in North America. Nucor’s operations include international trading and sales companies that buy and sell steel and steel products manufactured by the Company and others. Nucor is North America’s largest recycler, using scrap steel as the primary raw material in producing steel and steel products.
Nucor reports its results in the following segments: steel mills, steel products and raw materials. The steel mills segment includes carbon and alloy steel in sheet, bars, structural and plate; steel trading and rebar distribution businesses; and Nucor’s equity method investment in NuMit. The steel products segment includes steel joists and joist girders, steel deck, fabricated concrete reinforcing steel, cold finished steel, precision castings, steel fasteners, metal building systems, insulated metal panels, overhead doors, steel grating, tubular products, steel racking, piling products, wire and wire mesh, and utility towers and structures. The raw materials segment includes DJJ, primarily a scrap broker and processor; Nu-Iron Unlimited and Nucor Steel Louisiana, two facilities that produce DRI used by the steel mills; and our natural gas production operations.
The average utilization rates of all operating facilities in the steel mills, steel products and raw materials segments were approximately 77%, 59% and 73%, respectively, in the first nine months of 2024 compared with approximately 80%, 66% and 74%, respectively, in the first nine months of 2023.
Results of Operations
Nucor reported net earnings attributable to Nucor stockholders of $249.9 million, or $1.05 per diluted share, for the third quarter of 2024, as compared to net earnings attributable to Nucor stockholders of $1.14 billion, or $4.57 per diluted share, for the third quarter of 2023.
Included in the third quarter of 2024 net earnings was $123.0 million of losses and impairments of assets (none in the third quarter of 2023). Of that amount, $83.0 million related to certain non-current assets in the raw materials segment and $40.0 million related to certain non-current assets in the steel products segment.
Excluding the losses and impairments of assets, the largest driver of the decrease in earnings in the third quarter of 2024 compared to the third quarter of 2023 was the decreased earnings of the steel mills segment. Though shipments to outside customers improved slightly in the third quarter of 2024 as compared to the third quarter of 2023, metal margins decreased significantly as average selling prices decreased across all product groups within the steel mills segment. The steel products segment’s earnings in the third quarter of 2024 decreased significantly compared to the third quarter of 2023. The primary driver of the decrease in the earnings of the steel products segment was the decreased earnings of our joist and deck businesses, which had decreased average selling prices and lower volumes. Earnings in the raw materials segment decreased in the third quarter of 2024 compared to the third quarter of 2023, primarily due to the decreased performance of our scrap processing and DRI operations.
Nucor reported net earnings attributable to Nucor stockholders of $1.74 billion, or $7.22 per diluted share, for the first nine months of 2024, as compared to net earnings attributable to Nucor stockholders of $3.74 billion, or $14.83 per diluted share, for the first nine months of 2023. Earnings decreased across all three segments for the first nine months of 2024 as compared to the first nine months of 2023, with the largest decrease in the steel products segment. In the steel products segment, average selling prices for our joist and deck businesses have moderated from historically high levels and steadily declined from the beginning of 2023 through the first nine months of 2024. The decrease in average selling prices, combined with lower volumes for the joist and deck businesses, were the largest contributors to the decrease in the earnings of the steel products segment in the first nine months of 2024 as compared to the first nine months of 2023. The steel mills segment's earnings decreased in the first nine months of 2024 compared to the first nine months of 2023, primarily due to lower metal margins caused by lower average selling prices and decreased volumes. Earnings in the raw materials segment decreased in the first nine months of 2024 compared to the first nine months of 2023, primarily due to the decreased earnings of our scrap processing and DRI operations.
The following discussion provides a greater quantitative and qualitative analysis of Nucor’s performance in the third quarter and first nine months of 2024 as compared to the third quarter and first nine months of 2023.
Net Sales
Net sales to external customers 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 | % Change | September 28, 2024 | September 30, 2023 | % Change | |||||||
| Steel mills | $4,459,509 | $5,091,479 | -12% | $14,486,492 | $15,636,508 | -7% | ||||||
| Steel products | 2,496,160 | 3,235,969 | -23% | 7,715,804 | 9,954,828 | -22% | ||||||
| Raw materials | 488,491 | 448,286 | 9% | 1,456,119 | 1,417,634 | 3% | ||||||
| Total net sales to external customers | $7,444,160 | $8,775,734 | -15% | $23,658,415 | $27,008,970 | -12% |
Net sales for the third quarter of 2024 decreased 15% from the third quarter of 2023. Average sales price per ton decreased 15% from $1,406 in the third quarter of 2023 to $1,201 in the third quarter of 2024. Total tons shipped to outside customers in the third quarter of 2024 were approximately 6,196,000 tons, a 1% decrease from the third quarter of 2023.
Net sales for the first nine months of 2024 decreased 12% from the first nine months of 2023. Average sales price per ton decreased 10% from $1,402 in the first nine months of 2023 to $1,265 in the first nine months of 2024. Total tons shipped to outside customers in the first nine months of 2024 were approximately 18,709,000 tons, a 3% decrease from the first nine months of 2023.
In the steel mills segment, sales tons 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 | % Change | September 28, 2024 | September 30, 2023 | % Change | |||||||
| Outside steel shipments | 4,607 | 4,578 | 1% | 13,900 | 14,156 | -2% | ||||||
| Inside steel shipments | 1,112 | 1,168 | -5% | 3,576 | 3,604 | -1% | ||||||
| Total steel shipments | 5,719 | 5,746 | - | 17,476 | 17,760 | -2% |
Net sales for the steel mills segment decreased 12% in the third quarter of 2024 from the third quarter of 2023, due primarily to a 13% decrease in the average sales price per ton, from $1,114 to $967.
Net sales for the steel mills segment decreased 7% in the first nine months of 2024 from the first nine months of 2023, due primarily to a 6% decrease in the average sales price per ton, from $1,105 to $1,042, and a 2% decrease in volumes.
Outside sales tonnage for the steel products segment for the third quarter and first nine months of 2024 and 2023 was as follows (in thousands):
| Three Months (13 Weeks) Ended | Nine Months (39 Weeks) Ended | |||||||||||
| September 28, 2024 | September 30, 2023 | % Change | September 28, 2024 | September 30, 2023 | % Change | |||||||
| Joist sales | 90 | 127 | -29% | 292 | 404 | -28% | ||||||
| Deck sales | 79 | 104 | -24% | 242 | 310 | -22% | ||||||
| Rebar fabrication products sales | 278 | 307 | -9% | 781 | 918 | -15% | ||||||
| Tubular products sales | 213 | 223 | -4% | 635 | 737 | -14% | ||||||
| Building systems sales | 60 | 71 | -15% | 181 | 185 | -2% | ||||||
| Other steel products sales | 291 | 309 | -6% | 919 | 921 | - | ||||||
| Total steel products sales | 1,011 | 1,141 | -11% | 3,050 | 3,475 | -12% |
Net sales for the steel products segment decreased 23% in the third quarter of 2024 compared to the third quarter of 2023, due to an 11% decrease in shipping volumes and a 13% decrease in the average sales price per ton, from $2,837 to $2,469.
Net sales for the steel products segment decreased 22% in the first nine months of 2024 compared to the first nine months of 2023, due to a 12% decrease in shipping volumes and a 12% decrease in the average sales price per ton, from $2,865 to $2,530.
Net sales for the raw materials segment increased 9% in the third quarter of 2024 compared to the third quarter of 2023, due to increased tons shipped to outside customers by the scrap brokerage operations of DJJ. In the third quarter of 2024, approximately 93% of outside sales for the raw materials segment were from the scrap brokerage operations of DJJ, and approximately 3% of outside sales were from the scrap processing operations of DJJ (approximately 92% and 4%, respectively, in the third quarter of 2023).
Net sales for the raw materials segment increased 3% in the first nine months of 2024 compared to the first nine months of 2023, due to increased tons shipped to outside customers by the scrap brokerage operations of DJJ. In the first nine months of 2024, approximately 93% of outside sales for the raw materials segment were from the scrap brokerage operations of DJJ, and approximately 4% of outside sales were from the scrap processing operations of DJJ (approximately 93% and 3%, respectively, in the first nine months of 2023).
Gross Margins
Nucor recorded gross margins of $757.9 million (10%) in the third quarter of 2024, which was a decrease compared to $1.92 billion (22%) in the third quarter of 2023.
The largest driver of the decrease in gross margins in the third quarter of 2024 as compared to the third quarter of 2023 was lower metal margins across the steel mills segment. Metal margin is the difference between the selling price of steel and the cost of scrap and scrap substitutes.
Scrap and scrap substitutes are the most significant element in the total cost of steel production. In the steel mills segment, the average scrap and scrap substitute cost per gross ton used in the third quarter of 2024 was $378, a 9% decrease compared to $415 in the third quarter of 2023. Though scrap and scrap substitute costs decreased in the third quarter of 2024 as compared to the third quarter of 2023, total metal margin dollars decreased as the decrease in average selling prices outpaced the decrease in scrap and scrap substitute costs.
Scrap prices are driven by the global supply and demand for scrap and other iron-based raw materials used to make steel. As we enter the fourth quarter of 2024, scrap prices are comparable to the third quarter of 2024.
Gross margins in the steel products segment decreased in the third quarter of 2024 compared to the third quarter of 2023, primarily due to decreases at our joist and deck businesses.
Pre-operating and start-up costs of new facilities were approximately $168 million in the third quarter of 2024 and approximately $100 million in the third quarter of 2023. Pre-operating and start-up costs in the third quarter of both 2024 and 2023 primarily included costs related to the plate mill in Kentucky and the sheet mill under construction in West Virginia. Nucor defines pre-operating and start-up costs, all of which are expensed, as the losses attributable to facilities or major projects that are either under construction or in the early stages of operation. Once these facilities or projects have attained a utilization rate that is consistent with our similar operating facilities, Nucor no longer considers them to be in start-up.
Gross margins in the raw materials segment decreased in the third quarter of 2024 as compared to the third quarter of 2023 primarily due to the decreased earnings of the scrap processing and DRI operations.
Nucor recorded gross margins of $3.48 billion (15%) in the first nine months of 2024, which was a decrease compared to $6.42 billion (24%) in the first nine months of 2023.
The largest driver of the decrease in gross margins in the first nine months of 2024 as compared to the first nine months of 2023 was the decreased earnings of the steel products segment, which was primarily due to the decreased profitability of our joist and deck businesses.
In the steel mills segment, 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. However, the decrease in scrap and scrap substitute costs was more than offset by the decreases in average selling prices and volumes, resulting in lower metal margins.
Pre-operating and start-up costs of new facilities increased to approximately $430 million in the first nine months of 2024 from approximately $273 million in the first nine months of 2023. Pre-operating and start-up costs in the first nine months of both 2024 and 2023 primarily included costs related to the plate mill in Kentucky and the sheet mill under construction in West Virginia.
Gross margins in the raw materials segment decreased in the first nine months of 2024 as compared to the first nine months of 2023 primarily due to the decreased earnings of the scrap processing and DRI operations.
Marketing, Administrative and Other Expenses A major component of marketing, administrative and other expenses is profit sharing and other incentive compensation costs. These costs, which are based upon and fluctuate with Nucor’s financial performance, decreased by $119.7 million in the third quarter of 2024 as compared to the third quarter of 2023, and decreased by $285.1 million in the first nine months of 2024 as compared to the first nine months of 2023. These decreases were due to Nucor's decreased profitability in the third quarter and first nine months of 2024 as compared to the respective prior year periods, which resulted in decreased accruals related to profit sharing.
Equity in (Earnings) Losses of Unconsolidated Affiliates
Equity in earnings of unconsolidated affiliates was $5.3 million in the third quarter of 2024, and equity in losses of unconsolidated affiliates was $1.1 million in the third quarter of 2023. Equity in earnings of unconsolidated affiliates was $24.1 million and $3.7 million in the first nine months of 2024 and 2023, respectively. The increases in equity method investment earnings were primarily due to the increased results of NuMit.
Losses and Impairments of Assets
Included in the third quarter of 2024 net earnings was $123.0 million of losses and impairments of assets (none in the third quarter of 2023). During the third quarter of 2024, management determined it was probable that a long-term note receivable in the raw materials segment was no longer collectable and recorded an $83.0 million impairment charge to fully reserve the note receivable. The remaining $40.0 million is related to certain non-current assets, mostly property, plant and equipment, net, related to a business in the steel products segment.
Interest Expense (Income)
Net interest expense (income) for the third quarter and first nine months of 2024 and 2023 was 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 | |||||||||||||
| Interest expense | $ | 65,376 | $ | 63,228 | $ | 175,715 | $ | 186,716 | ||||||||
| Interest income | (58,094 | ) | (77,361 | ) | (208,526 | ) | (186,068 | ) | ||||||||
| Interest expense (income), net | $ | 7,282 | $ | (14,133 | ) | $ | (32,811 | ) | $ | 648 |
Interest expense increased in the third quarter of 2024 compared to the third quarter of 2023 due to higher average interest rates on debt and an increase in average debt outstanding. Interest expense decreased in the first nine months of 2024 compared to the first nine months of 2023 due to an increase in capitalized interest.
Interest income decreased in the third quarter of 2024 compared to the third quarter of 2023 due to a decrease in average investment levels. Interest income increased in the first nine months of 2024 compared to the first nine months of 2023 primarily due to an increase in average interest rates on cash investments.
Earnings Before Income Taxes and Noncontrolling Interests
The table below presents earnings before income taxes and noncontrolling interests by segment for the third quarter and first nine months of 2024 and 2023 (in thousands). The changes between periods were driven by the quantitative and qualitative factors previously discussed.
| 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 |
Noncontrolling Interests
Noncontrolling interests represent the income attributable to the holders of noncontrolling interests in Nucor’s joint ventures, NYS, CSI and NJSM. Nucor owns a 51% controlling interest in each of NYS, CSI and NJSM. The decrease in earnings attributable to noncontrolling interests in the third quarter of 2024 compared to the third quarter of 2023 was primarily due to the decreased earnings of NYS and CSI, and the losses of NJSM in the current year (NJSM was not included in noncontrolling interests until the fourth quarter of 2023, when Nucor obtained a controlling interest). The decrease in earnings attributable to noncontrolling interests in the first nine months of 2024 compared to the first nine months of 2023 was primarily due to the decreased earnings of NYS and CSI, and the losses of NJSM in the current year.
Provision for Income Taxes
The effective tax rate for the third quarter of 2024 was 22.0% compared to 21.1% for the third quarter of 2023. The expected effective tax rate for the full year of 2024 is approximately 21.5%.
We estimate that in the next 12 months our gross unrecognized tax benefits, which totaled $213.8 million at September 28, 2024, exclusive of interest, could decrease by as much as $9.2 million as a result of the expiration of the statute of limitations and the closures of examinations, substantially all of which would impact the effective tax rate.
The IRS is currently examining Nucor’s 2015, 2019 and 2020 federal income tax returns. Nucor has concluded U.S. federal income tax matters for the tax years through 2014, and for the tax years 2016 through 2018. The tax years 2021 through 2023 remain open to examination by the IRS. The 2015 through 2021 Canadian income tax returns for Nucor Rebar Fabrication Group Inc. (formerly known as Harris Steel Group Inc.) and certain related affiliates are currently under examination by the Canada Revenue Agency. The tax years 2016 through 2023 remain open to examination by other major taxing jurisdictions to which Nucor is subject (primarily Canada, Trinidad & Tobago, and other state and local jurisdictions).
Net Earnings Attributable to Nucor Stockholders and Return on Equity
Nucor reported net earnings attributable to Nucor stockholders of $249.9 million, or $1.05 per diluted share, in the third quarter of 2024 as compared to net earnings attributable to Nucor stockholders of $1.14 billion, or $4.57 per diluted share, in the third quarter of 2023. Net earnings attributable to Nucor stockholders as a percentage of net sales were 3.4% and 13.0% in the third quarter of 2024 and 2023, respectively.
Nucor reported net earnings attributable to Nucor stockholders of $1.74 billion, or $7.22 per diluted share, in the first nine months of 2024 as compared to net earnings attributable to Nucor stockholders of $3.74 billion, or $14.83 per diluted share, in the first nine months of 2023. Net earnings attributable to Nucor stockholders as a percentage of net sales were 7.4% and 13.8% in the first nine months of 2024 and 2023, respectively. Annualized return on average stockholders’ equity was 11.2% and 25.6% in the first nine months of 2024 and 2023, respectively.
Outlook
We expect consolidated net earnings attributable to Nucor stockholders in the fourth quarter of 2024 to decrease compared to earnings per diluted share of $1.05 reported for the third quarter of 2024. The largest driver of the expected decrease in earnings in the fourth quarter of 2024 is the expected decrease in earnings of the steel mills segment caused by lower average selling prices and decreased volumes. We expect earnings in the steel products segment to decrease in the fourth quarter of 2024 as compared to the third quarter of 2024 due to lower average selling prices and decreased volumes. The earnings of the raw materials segment are expected to increase in the fourth quarter of 2024 as compared to the third quarter of 2024 (excluding the impairment charge taken during the third quarter of 2024).
Nucor’s largest exposure to market risk is in our steel mills and steel products segments. Our largest single customer in the third quarter of 2024 represented approximately 5% of sales and has consistently paid within terms. In the raw materials segment, we are exposed to price fluctuations related to the purchase of scrap and scrap substitutes, pig iron and iron ore. Businesses within the steel mills segment account for the majority of the raw materials segment’s sales.
Liquidity and Capital Resources
We currently have the highest credit ratings of any steel producer headquartered in North America, with an A- long-term rating from Standard & Poor’s, an A- long-term rating from Fitch Ratings and a Baa1 long-term rating from Moody’s. Our credit ratings are dependent, however, upon a number of factors, both qualitative and quantitative, and are subject to change at any time. The disclosure of our credit ratings is made in order to enhance investors’ understanding of our sources of liquidity and the impact of our credit ratings on our cost of funds.
Our liquidity position as of September 28, 2024 remained strong, consisting of total cash and cash equivalents and short-term investments of $4.86 billion ($7.13 billion as of December 31, 2023). Approximately $899.1 million of the cash and cash equivalents position at September 28, 2024, was held by our majority-owned and controlled subsidiaries as compared to $1.05 billion at December 31, 2023.
Cash provided by operating activities was $3.25 billion in the first nine months of 2024 as compared to $5.59 billion in the first nine months of 2023. The $2.34 billion decrease was primarily driven by net earnings before noncontrolling interests of $1.97 billion for the first nine months of 2024, which represented a decrease of $2.07 billion from net earnings before noncontrolling interests for the prior year period of $4.04 billion. In addition, changes in operating assets and operating liabilities (exclusive of acquisitions and dispositions) provided cash of $130.9 million in the first nine months of 2024 as compared to $604.5 million in the first nine months of 2023.
The funding provided by our working capital in the first nine months of 2024 decreased by $473.6 million compared to the first nine months of 2023 mainly due to the change in accounts payable using $371.2 million more cash, federal income taxes providing less cash of $224.1 million and the change in accounts receivable providing $124.8 million less cash compared to the same period in 2023. These changes were partially offset by the change in inventories providing more cash of $287.0 million.
The current ratio was 2.6 at the end of the third quarter of 2024 and 3.6 at year-end 2023. The decrease in the current ratio at the end of the third quarter of 2024 compared to year-end 2023 was primarily due to the $2.86 billion, or 17%, decrease in current assets. The main driver of the decrease in current assets was the $2.12 billion, or 33% decrease in cash and cash equivalents. Also contributing to the decrease in the current ratio was the $622.3 million, or 14%, increase in current liabilities. The increase in current liabilities was primarily due to the $966.3 million increase in the current portion of long-term debt and finance lease obligations and the $94.5 million increase in short-term debt. These changes were offset by the $117.4 million decrease in accounts payable and the $351.8 million decrease in salaries, wages and related accruals.
Cash used in investing activities in the first nine months of 2024 was $2.77 billion as compared to $1.84 billion in the first nine months of 2023, an increase of $929.7 million. Cash used for capital expenditures of $2.29 billion in the first nine months of 2024 increased by $797.6 million as compared to the same period of 2023 primarily due to the sheet mill under construction in West Virginia, the sheet mill expansion in Indiana and the rebar micro mill under construction in North Carolina. Capital expenditures for 2024 are estimated to be approximately $3.2 billion as compared to $2.20 billion for 2023. The projects that we anticipate will have the largest capital expenditures in 2024 are the sheet mill under construction in West Virginia, the sheet mill expansion in Indiana, the rebar micro mill under construction in North Carolina and the construction of two manufacturing locations to expand Nucor Towers & Structures. Also contributing to the increase in cash used in investing activities in the first nine months of 2024 over the same period of 2023 was the acquisition (net of cash acquired) of Rytec for approximately $565.0 million during the third quarter of 2024.
Cash used in financing activities in the first nine months of 2024 was $2.60 billion as compared to $2.24 billion in the first nine months of 2023. The primary uses of cash were stock repurchases of $1.90 billion in the first nine months of 2024 as compared to $1.38 billion in the first nine months of 2023, which represented an increase of $524.8 million. Partially offsetting the increase in stock repurchases was the $79.0 million decrease in distributions to noncontrolling interests in the first nine months of 2024 as compared to the first nine months of 2023.
Nucor’s $1.75 billion revolving credit facility matures on November 5, 2026. The revolving credit facility includes only one financial covenant, which is a limit of 60% on the ratio of funded debt to total capital. In addition, the revolving credit facility contains customary non-financial covenants, including a limit on Nucor’s ability to pledge the Company’s assets and a limit on consolidations, mergers and sales of assets. As of September 28, 2024, the funded debt to total capital ratio was 24.4% and we were in compliance with all non-financial covenants under the revolving credit facility. No borrowings were outstanding under the revolving credit facility as of September 28, 2024.
In September 2024, Nucor’s Board of Directors declared a quarterly cash dividend on Nucor’s common stock of $0.54 per share payable on November 8, 2024 to stockholders of record on September 27, 2024. This dividend is Nucor’s 206th consecutive quarterly cash dividend.
Funds provided from operations, cash and cash equivalents, short-term investments and new borrowings under our existing credit facilities are expected to be adequate to meet future capital expenditure and working capital requirements for existing operations for at least the next 24 months. We also believe we have adequate access to capital markets for liquidity purposes.
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