Nucor faces risks from competitive pressure, trade policies, fluctuating steel prices and raw material costs, energy costs, equipment failures, market demand (especially for non-residential construction), asset impairments, global economic volatility, currency fluctuations, environmental regulations, the cyclical nature of the steel industry, integration of acquisitions, and pandemics. The company's joint venture, Nucor-JFE Steel Mexico, S. de R.L. de C.V., also poses a risk of impairment if performance continues to underperform.
Financial Upside
Nucor's liquidity position is strong, with high credit ratings and ample cash and cash equivalents. The company has a share repurchase program with $1.42 billion available. The acquisition of Rytec Corporation, a manufacturer of overhead doors, is expected to help grow sales to the commercial market. Increased results from NuMit, an equity method investment, are also a positive factor.
