Nucor Reports Results For Third Quarter And First Nine Months Of 2012

    Nucor Reports Results For Third Quarter And First Nine Months Of 2012

PR Newswire

CHARLOTTE, N.C., Oct. 18, 2012

CHARLOTTE, N.C., Oct. 18, 2012 /PRNewswire/ --Nucor Corporation (NYSE: NUE)
announced today consolidated net earnings of $110.3 million, or $0.35 per
diluted share, for the third quarter of 2012. By comparison, Nucor reported
net earnings of $112.3 million, or $0.35 per diluted share, in the second
quarter of 2012 and net earnings of $181.5 million, or $0.57 per diluted
share, in the third quarter of 2011. Third quarter of 2012 results include
non-cash inventory related purchase accounting charges of approximately $28.2
million ($0.06 per diluted share) associated with our acquisition of Skyline
Steel LLC ("Skyline"), which occurred late in the second quarter of 2012.
Third quarter of 2012 results were also negatively impacted by a loss on the
sale of the assets of Nucor Wire Products Pennsylvania, Inc. of $17.6 million
($0.04 per diluted share).

In the first nine months of 2012, Nucor reported consolidated net earnings of
$367.7 million, or $1.15 per diluted share, compared with consolidated net
earnings of $641.1 million, or $2.02 per diluted share, in the first nine
months of last year. The year-to-date of impact of Skyline inventory related
purchase accounting adjustments was $36.8 million ($.08 per diluted share).
We expect such charges to be much lower in the fourth quarter.

Nucor recorded a credit to value inventories using the last-in, first-out
(LIFO) method of accounting of $84.0 million ($0.16 per diluted share) in the
third quarter of 2012, compared with a credit of $14.5 million ($0.03 per
diluted share) in the second quarter of 2012 and a charge of $28.0 million
($0.05 per diluted share) in the third quarter of 2011. The LIFO credit in
the first nine months of 2012 was $84.0 million ($0.16 per diluted share)
compared with a charge of $91.0 million ($0.17 per diluted share) in the first
nine months of 2011.

Nucor's consolidated net sales decreased 6% to $4.80 billion in the third
quarter of 2012 compared with $5.10 billion in the second quarter of 2012 and
decreased 9% compared with $5.25 billion in the third quarter of 2011. Average
sales price per ton decreased 3% from the second quarter of 2012 and decreased
8% from the third quarter of 2011. Total tons shipped to outside customers
were 5,768,000 tons in the third quarter of 2012, a 3% decrease from the
second quarter of 2012 and a slight decrease from the third quarter of 2011.
Total third quarter steel mill shipments were down 3% from the second
quarter of 2012 and decreased 2% from the third quarter of 2011.
Third quarter downstream steel products shipments to outside customers
increased 1% over the second quarter of 2012 and 4% over the third quarter of
2011.

In the first nine months of 2012, Nucor's consolidated net sales decreased 1%
to $14.98 billion, compared with $15.19 billion in last year's first nine
months. Total tons shipped to outside customers increased 1% over the first
nine months of 2011, while average sales price per ton decreased 3%.

The average scrap and scrap substitute cost per ton used in the third quarter
of 2012 was $380, a decrease of 11% from $427 in the second quarter of 2012
and a decrease of 15% from $449 in the third quarter of 2011. The average
scrap and scrap substitute cost per ton used in the first nine months of 2012
was $418, a decrease of 5% from $439 in the first nine months of 2011.

Overall operating rates at our steel mills in the third quarter (71%) were
down from the second quarter (76%) and from last year's third quarter (74%).
Year-to-date steel mill utilization was flat (75%) compared with the prior
year period. 

Total energy costs increased approximately $5 per ton over the second quarter
of 2012 primarily due to higher electricity and natural gas unit costs.
Energy costs decreased approximately $2 per ton from the third quarter of 2011
and decreased $3 per ton from the first nine months of 2011 primarily due to
lower natural gas unit costs.

Construction is going well on our 2,500,000-ton DRI facility in Louisiana. The
majority of the equipment will arrive in 2012, and we are on schedule for
completion of construction and beginning of start-up in mid-2013.

Our liquidity position remains strong with $2.54 billion in cash and cash
equivalents, short-term investments, and restricted cash and investments. Our
$1.5 billion revolving credit facility that matures in December 2016 remains
unused.

In September, Nucor's board of directors declared a cash dividend of $0.365
per share payable on November 9, 2012 to stockholders of record on September
28, 2012. This dividend is Nucor's 158^th consecutive quarterly cash
dividend, a record we expect to continue.

Our third quarter results reflect a continuing trend of reduced operating
profits at our steel mills, most significantly in sheet and plate. Lower
steel mill margins are primarily the result of very high import levels, which
began rising in 2011. According to U.S. Census Bureau reports, 2012 steel
products imports are on pace to reach 27.7 million short tons in 2012. This
represents an increase of 21% from 2011 imports of 22.8 million tons and is
43% higher than 2010 import levels of 19.3 million tons. In addition, U.S.
sheet steel markets have been negatively impacted by new domestic supply that
began ramping up production in 2011.

We currently expect to see some further reduction in earnings exclusive of
one-time charges for the fourth quarter of 2012. In addition to high import
levels and excess domestic sheet supply, slowing economic growth both
domestically and globally is expected to be a negative factor through the end
of the year. Volatility in scrap prices, together with a combination of
political and economic uncertainty in global markets, is impacting steel buyer
confidence and therefore supply-chain stocking levels. The strongest end
markets continue to be manufactured goods including automotive, energy and
heavy equipment. The construction market continues to be very challenging.

Nucor and affiliates are manufacturers of steel products, with operating
facilities primarily in the U.S. and Canada. Products produced include: carbon
and alloy steel -- in bars, beams, sheet and plate; steel piling; steel joists
and joist girders; steel deck; fabricated concrete reinforcing steel; cold
finished steel; steel fasteners; metal building systems; steel grating and
expanded metal; and wire and wire mesh. Nucor, through The David J. Joseph
Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI;
supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is
North America's largest recycler.

Certain statements contained in this news release are "forward-looking
statements" that involve risks and uncertainties. The words "believe,"
"expect," "project," "will," "should," "could" and similar expressions are
intended to identify those forward-looking statements. 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) the
sensitivity of the results of our operations to prevailing steel prices and
the changes in the supply and cost of raw materials, including scrap steel;
(2) market demand for steel products; (3) energy costs and availability; and
(4) competitive pressure on sales and pricing, including competition from
imports and substitute materials. These and other factors are outlined in
Nucor's regulatory filings with the Securities and Exchange Commission,
including those in Nucor's December 31, 2011 Annual Report on Form 10-K. The
forward-looking statements contained in this news release speak only as of
this date, and Nucor does not assume any obligation to update them.

You are invited to listen to the live broadcast of Nucor's conference call in
which management will discuss Nucor's third quarter results on October 18,
2012 at 2:00 p.m. eastern time. The conference call will be available over the
Internet at www.nucor.com, under Investor Relations.

TONNAGE DATA
(in thousands)
                         Three Months (13 Weeks)  Nine Months (39 Weeks)
                         Ended                    Ended
                         Sept.  Oct.   Percentage  Sept.   Oct. 1,  Percentage
                         29,    1,     Change      29,     2011     Change
                         2012   2011               2012
Steel mills production   4,819  4,910  -2%         15,139  14,796   2%
Steel mills total        5,043  5,128  -2%         15,480  15,192   2%
shipments
Sales tons to outside
customers:
   Steel mills           4,144  4,194  -1%         12,832  12,664   1%
   Joist                 78     82     -5%         217     219      -1%
   Deck                  80     83     -4%         221     234      -6%
   Cold finished         118    118    -           388     381      2%
   Fabricated concrete
   reinforcing steel     343    312    10%         915     808      13%
   Other                 1,005  996    1%          3,041   3,055    -
                         5,768  5,785  -           17,614  17,361   1%



CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)
                        Three Months (13 Weeks)   Nine Months (39 Weeks)
                       Ended                    Ended
                       Sept. 29,    Oct. 1, 2011  Sept. 29,      Oct. 1, 2011
                       2012                       2012
Net sales              $           $            $ 14,977,999  $ 15,193,887
                       4,801,206   5,252,144
Costs, expenses and
other:
 Cost of products     4,452,473    4,794,014     13,848,809     13,662,572
sold
 Marketing,
administrative and     114,392      108,532       334,039        349,482
other expenses
 Equity in losses of
unconsolidated         2,261        11,247        9,093          14,190
affiliates
 Impairment of        -            13,943        30,000         13,943
non-current assets
 Interest expense,    40,305       40,193        123,028        125,943
net
                       4,609,431    4,967,929     14,344,969     14,166,130
Earnings before income
taxes and
noncontrolling         191,775      284,215       633,030        1,027,757
interests
Provision for income   61,883       84,104        200,159        324,946
taxes
Net earnings           129,892      200,111       432,871        702,811
Earnings attributable
to
noncontrolling         19,584       18,593        65,160         61,679
interests
Net earnings
attributable to
Nucor stockholders     $         $          $           $   
                       110,308      181,518       367,711        641,132
Net earnings per
share:
 Basic                $0.35        $0.57         $1.15          $2.02
 Diluted              $0.35        $0.57         $1.15          $2.02
Average shares
outstanding:
 Basic                318,463      317,194       318,042        316,866
 Diluted              318,520      317,287       318,113        317,061



CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
                                            Sept. 29, 2012    Dec. 31, 2011
ASSETS
Current assets:
 Cash and cash equivalents                $  1,693,197    $  1,200,645
 Short-term investments                   430,266           1,362,641
 Accounts receivable, net                 1,799,305         1,710,773
 Inventories, net                         2,217,374         1,987,257
 Other current assets                     481,931           446,765
      Total current assets                6,622,073         6,708,081
Property, plant and equipment, net        4,106,238         3,755,604
Restricted cash and investments           414,203           585,833
Goodwill                                  2,008,461         1,830,661
Other intangible assets, net              980,348           784,640
Other assets                              865,924           905,531
      Total assets                        $ 14,997,247     $ 14,570,350
LIABILITIES
Current liabilities:
 Short-term debt                          $     30,865  $     1,826
 Long-term debt due within one year       900,000           650,000
 Accounts payable                         1,186,665         958,645
 Salaries, wages and related accruals     286,780           333,341
 Accrued expenses and other current        482,717           452,247
 liabilities
      Total current liabilities           2,887,027         2,396,059
Long-term debt due after one year         3,380,200         3,630,200
Deferred credits and other liabilities    866,446           837,511
      Total liabilities                   7,133,673         6,863,770
EQUITY
Nucor stockholders' equity:
 Common stock                             150,798           150,496
 Additional paid-in capital               1,804,156         1,756,534
 Retained earnings                        7,129,236         7,111,566
 Accumulated other comprehensive income
 (loss),
      net of income taxes                 51,313            (38,177)
 Treasury stock                           (1,502,159)       (1,505,534)
      Total Nucor stockholders' equity    7,633,344         7,474,885
Noncontrolling interests                  230,230           231,695
      Total equity                        7,863,574         7,706,580
      Total liabilities and equity        $ 14,997,247     $ 14,570,350



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
                                            Nine Months (39 Weeks) Ended
                                            Sept. 29, 2012    Oct. 1, 2011
Operating activities:
  Net earnings                             $             $    
                                            432,871           702,811
  Adjustments:
    Depreciation                            394,690           391,847
    Amortization                            53,518            51,675
    Stock-based compensation                42,858            40,323
    Deferred income taxes                   (42,548)          40,855
    Equity in losses of unconsolidated      9,093             14,190
    affiliates
    Impairment of non-current assets        30,000            13,943
    Loss on sale of facility                17,563            -
    Changes in assets and liabilities
    (exclusive of acquisitions):
           Accounts receivable              62,787            (401,237)
           Inventories                      41,662            (634,048)
           Accounts payable                 21,668            290,885
           Federal income taxes             11,248            2,217
           Salaries, wages and related      (52,561)          141,407
           accruals
           Other                            101,835           28,616
Cash provided by operating activities       1,124,684         683,484
Investing activities:
  Capital expenditures                      (613,777)         (328,592)
  Investment in and advances to affiliates  (66,423)          (76,678)
  Repayment of advances to affiliates       32,500            15,000
  Disposition of plant and equipment        42,574            22,155
  Acquisitions (net of cash acquired)       (763,657)         -
  Purchases of investments                  (409,403)         (614,982)
  Proceeds from the sale of investments     1,341,913         456,055
  Purchases of restricted investments       -                 (564,994)
  Proceeds from the sale of restricted      209,930           18,299
  investments
  Changes in restricted cash                (38,301)          538,644
Cash used in investing activities           (264,644)         (535,093)
Financing activities:
  Net change in short-term debt             28,983            (5,646)
  Issuance of common stock                  10,515            6,957
  Excess tax benefits from stock-based      4,377             700
  compensation
  Distributions to noncontrolling interests (66,562)          (55,855)
  Cash dividends                            (349,538)         (346,005)
  Other financing activities                962               30,000
Cash used in financing activities          (371,263)         (369,849)
Effect of exchange rate changes on cash     3,775             (2,511)
Increase (decrease) in cash and cash        492,552           (223,969)
equivalents
Cash and cash equivalents - beginning of    1,200,645         1,325,406
year
Cash and cash equivalents - end of nine     $   1,693,197  $   1,101,437
months
Non-cash investing activity:
  Accrued property and equipment purchases  $            $    
                                            77,764            (10,340)

SOURCE Nucor Corporation

Website: http://www.nucor.com
Contact: Nucor Executive Offices, +1-704-366-7000, or fax, +1-704-362-4208
 
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