CHARLOTTE, N.C. - Nucor Corporation (NYSE: NYSE:NUE), a leading manufacturer of steel and steel products, has agreed to provide Mercedes-Benz (OTC:MBGAF) with Econiq™-RE, a low-embodied carbon steel. The material will be used in vehicles produced at the Mercedes-Benz plant in Tuscaloosa, AL.
The Econiq™-RE steel is part of Nucor's commitment to sustainability, produced using 100% renewable energy. It is designed to significantly reduce greenhouse gas emissions compared to traditional steelmaking processes. Nucor claims that this innovative steel can cut emissions to less than half of those produced by blast furnace-based steel production.
Dan Needham, EVP of Commercial at Nucor, expressed the company's enthusiasm for the partnership, emphasizing the role of Econiq™ in helping end-users like Mercedes-Benz achieve their sustainability objectives. According to Needham, Nucor's product will contribute to Mercedes-Benz's goal of a net carbon-neutral new car fleet.
In 2023, Nucor announced its Net-Zero greenhouse gas (GHG) targets for 2050, highlighting an average use of nearly 80 percent recycled scrap in its circular production process. As the largest recycler in the Western Hemisphere, Nucor continues to invest in technologies aimed at reducing emissions along the supply chain.
The agreement with Mercedes-Benz demonstrates Nucor's strategy to align with partners that share a commitment to reducing carbon footprints.
This news is based on a press release statement from Nucor Corporation.
InvestingPro Insights
As Nucor Corporation (NYSE: NUE) aligns its business with sustainable practices, it's also worth noting the company's financial health and market performance, which are key considerations for investors. According to InvestingPro data, Nucor boasts a robust market capitalization of $82.95 billion, underlining its significant presence in the steel industry.
Investors might find Nucor's low earnings multiple particularly attractive; the company's P/E ratio stands at 5.47, with an adjusted P/E ratio for the last twelve months as of Q4 2023 at an even lower 5.3. This suggests that the stock could be undervalued compared to its earnings, which is a point of interest for value investors. Additionally, the company's dividend yield as of early May 2024 is substantial at 7.15%, with a history of raising its dividend for the past 4 consecutive years, demonstrating Nucor's commitment to returning value to its shareholders.
For those looking to delve deeper into the financial nuances of Nucor Corporation, additional InvestingPro Tips highlight the company's stable cash flows, which can sufficiently cover interest payments, and its status as a prominent player in the Automobiles industry. With 12 more InvestingPro Tips available, including insights into the company's stock price volatility and return over the last five years, investors can gain a comprehensive understanding of Nucor's financial landscape.
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