Nucor Reports Results For Fourth Quarter And Year Ended 2012

         Nucor Reports Results For Fourth Quarter And Year Ended 2012

PR Newswire

CHARLOTTE, N.C., Jan. 29, 2013

CHARLOTTE, N.C., Jan. 29, 2013 /PRNewswire/ -- Nucor Corporation (NYSE: NUE)
announced today consolidated net earnings of $504.6 million, or $1.58 per
diluted share, for the full year 2012, compared with consolidated net earnings
of $778.2 million, or $2.45 per diluted share, for the full year 2011. Nucor
reported consolidated net earnings of $136.9 million, or $0.43 per diluted
share, for the fourth quarter of 2012. By comparison, Nucor reported net
earnings of $110.3 million, or $0.35 per diluted share, in the third quarter
of 2012 and net earnings of $137.1 million, or $0.43 per diluted share, in the
fourth quarter of 2011. 

Nucor recorded a credit to value inventories using the last-in, first-out
(LIFO) method of accounting of $155.9 million ($0.31 per diluted share) for
the full year 2012, compared with a charge of $142.8 million ($0.28 per
diluted share) for the full year 2011.  The LIFO credit in the fourth quarter
of 2012 was $71.9 million ($0.14 per diluted share), compared with a credit of
$84.0 million ($0.16 per diluted share) in the third quarter of 2012 and a
charge of $51.8 million ($0.11 per diluted share) in the fourth quarter of
2011. 

Non-cash inventory related purchase accounting charges associated with our
acquisition of Skyline Steel LLC decreased to $12.0 million ($0.02 per diluted
share) in the fourth quarter of 2012 compared to $28.2 million ($0.06 per
diluted share) in the third quarter of 2012.  The full year 2012 Skyline
purchase accounting charges were approximately $48.8 million ($0.10 per
diluted share). 

Third quarter of 2012 results also included a loss on the sale of the assets
of Nucor Wire Products Pennsylvania, Inc. of $17.6 million ($0.04 per diluted
share). Fourth quarter of 2011 results were impacted by a non-cash gain of
$29.0 million ($0.06 per diluted share) for the correction of an actuarial
calculation related to the medical plan covering certain eligible early
retirees.

For the full year 2012, Nucor's consolidated net sales decreased 3% to $19.43
billion, compared with $20.02 billion for 2011.  Average sales price per ton
decreased 3% from full year 2011.  Total tons shipped to outside customers
were 23,092,000 tons, a slight increase from 2011 levels.

Nucor's consolidated net sales decreased 7% to $4.45 billion in the fourth
quarter of 2012 compared with $4.80 billion in the third quarter of 2012 and
decreased 8% compared with $4.83 billion in the fourth quarter of 2011.
Average sales price per ton decreased 2% from the third quarter of 2012 and
decreased 4% from the fourth quarter of 2011. Total tons shipped to outside
customers were 5,478,000 tons in the fourth quarter of 2012, a 5% decrease
from the third quarter of 2012 and a 4% decrease from the fourth quarter of
2011. 

The average scrap and scrap substitute cost per ton used for the full year
2012 was $407, a decrease of 7% from $439 in 2011.  The average scrap and
scrap substitute cost per ton used in the fourth quarter of 2012 was $372, a
decrease of 2% from $380 in the third quarter of 2012 and a decrease of 16%
from $441 in the fourth quarter of 2011.

Overall operating rates at our steel mills were 74% for the full year 2012,
which is consistent with 2011 and an increase from 70% in 2010.  Steel mill
utilization rates in the fourth quarter of 2012 (71%) were flat when compared
with the third quarter and with last year's fourth quarter.  

For the full year 2012, total energy costs decreased approximately $2 per ton
from the prior year primarily due to lower natural gas unit costs.  In the
fourth quarter of 2012, total energy costs decreased approximately $2 per ton
from the third quarter of 2012, and decreased slightly from the fourth quarter
of 2011 primarily due to lower electricity unit costs.

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

Our liquidity position remains strong with $1.43 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 December, Nucor's board of directors declared a cash dividend of $0.3675
per share payable on February 11, 2013 to stockholders of record on December
31, 2012.  This dividend is Nucor's 159^th consecutive quarterly cash
dividend, a record we expect to continue.

Fourth quarter earnings of $0.43 per share were significantly better than our
quantitative guidance of between $0.25 and $0.30 per share.  This improved
performance was due to better than expected operating profits, primarily at
our sheet, plate and beam mills, and a larger than expected LIFO credit.  We
currently expect to see first quarter 2013 earnings below our results in the
fourth quarter of 2012.  This reflects our expectation of level operating
performance and a reversal of LIFO from a large credit in the fourth quarter
of 2012 to a small charge in the first quarter of 2013.  Construction markets
are showing some small improvement but remain at historically anemic levels. 
The strongest end markets continue to be manufactured goods including
automotive, energy and heavy equipment.  High import levels, volatility in raw
material costs and general economic uncertainty are all factors that could
undermine our expectations. 

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 fourth quarter results on January 29,
2013 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)
                        Quarter Ended December 31,  Year Ended December 31,
                        2012     2011   Percentage  2012    2011    Percentage
                                        Change                      Change
Steel mills production  4,726    4,765  -1%         19,865  19,561  2%
Steel mills total       4,762    4,933  -3%         20,242  20,125  1%
shipments
Sales tons to outside
customers:
   Steel mills          3,993    4,132  -3%         16,825  16,796  0%
   Joist                74       69     7%          291     288     1%
   Deck                 87       78     12%         308     312     -1%
   Cold finished        104      113    -8%         492     494     0%
   Fabricated concrete
   reinforcing steel    265      266    -           1,180   1,074   10%
   Other                955      1,025  -7%         3,996   4,080   -2%
                        5,478    5,683  -4%         23,092  23,044  -

 

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)
                      Quarter Ended December 31,  Year Ended December 31,
                    2012            2011          2012           2011
Net sales           $               $             $  19,429,273  $  20,023,564
                     4,451,274       4,829,677
Costs, expenses and
other:
  Cost of products  4,066,926       4,479,572     17,915,735     18,142,144
sold
  Marketing,
administrative and  120,861         90,046        454,900        439,528
other expenses
  Equity in losses
(earnings) of
unconsolidated      4,230           (4,147)       13,323         10,043
affiliates
  Impairment of     -               -             30,000         13,943
non-current assets
  Interest expense, 39,347          40,151        162,375        166,094
net
                    4,231,364       4,605,622     18,576,333     18,771,752
Earnings before
income taxes and
noncontrolling      219,910         224,055       852,940        1,251,812
interests
Provision for       59,655          65,882        259,814        390,828
income taxes
Net earnings        160,255         158,173       593,126        860,984
Earnings
attributable to
noncontrolling      23,347          21,117        88,507         82,796
interests
Net earnings
attributable to 
Nucor stockholders  $               $             $              $      
                    136,908         137,056       504,619        778,188
Net earnings per
share:
  Basic             $0.43           $0.43         $1.58          $2.45
  Diluted           $0.43           $0.43         $1.58          $2.45
Average shares
outstanding:
  Basic             318,553         317,393       318,172        316,997
  Diluted           318,613         317,464       318,240        317,161

 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) 
 (In thousands) 
                                            Dec. 31, 2012     Dec. 31, 2011
 ASSETS 
 Current assets: 
  Cash and cash equivalents                 $    1,052,862    $    1,200,645
  Short-term investments                    104,167           1,362,641
  Accounts receivable, net                  1,707,317         1,710,773
  Inventories, net                          2,323,641         1,987,257
  Other current assets                      409,177           446,765
       Total current assets                 5,597,164         6,708,081
 Property, plant and equipment, net         4,283,056         3,755,604
 Restricted cash and investments            275,163           585,833
 Goodwill                                   2,004,538         1,830,661
 Other intangible assets, net               959,240           784,640
 Other assets                               968,698           905,531
       Total assets                         $  14,087,859     $  14,570,350
 LIABILITIES 
 Current liabilities: 
  Short-term debt                           $         29,912  $          1,826
  Long-term debt due within one year        250,000           650,000
  Accounts payable                          1,046,713         958,645
  Salaries, wages and related accruals      279,898           333,341
  Accrued expenses and other current        423,045           452,247
 liabilities 
       Total current liabilities            2,029,568         2,396,059
 Long-term debt due after one year          3,380,200         3,630,200
 Deferred credits and other liabilities     792,717           837,511
       Total liabilities                    6,202,485         6,863,770
 EQUITY 
 Nucor stockholders' equity: 
  Common stock                              150,805           150,496
  Additional paid-in capital                1,811,459         1,756,534
  Retained earnings                         7,124,523         7,111,566
  Accumulated other comprehensive income
 (loss), 
       net of income taxes                  56,761            (38,177)
  Treasury stock                            (1,501,977)       (1,505,534)
       Total Nucor stockholders' equity     7,641,571         7,474,885
 Noncontrolling interests                   243,803           231,695
       Total equity                         7,885,374         7,706,580
       Total liabilities and equity         $  14,087,859     $  14,570,350

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 
                                         (In
                                        thousands) 
                                                    Year Ended December 31,
                                                    2012         2011
Operating activities:
  Net earnings                                      $            $        
                                                    593,126      860,984
  Adjustments:
      Depreciation                                  534,010      522,571
      Amortization                                  73,011       67,829
      Stock-based compensation                      50,733       49,003
      Deferred income taxes                         (25,274)     58,051
      Equity in losses of unconsolidated affiliates 13,323       10,043
      Impairment of non-current assets              30,000       13,943
      Loss on sale of assets                        17,563       -
      Changes in assets and liabilities (exclusive
      of acquisitions):
             Accounts receivable                    148,113      (274,920)
             Inventories                            (65,655)     (433,696)
             Accounts payable                       (111,496)    62,012
             Federal income taxes                   (28,022)     930
             Salaries, wages and related accruals   (60,363)     129,340
             Other                                  31,316       (35,037)
Cash provided by operating activities               1,200,385    1,031,053
Investing activities:
  Capital expenditures                              (947,608)    (438,943)
  Investment in and advances to affiliates          (180,472)    (95,950)
  Distribution from and repayment of advances to    65,446       50,000
  affiliates
  Disposition of plant and equipment                51,063       25,333
  Acquisitions (net of cash acquired)               (760,833)    (3,959)
  Purchases of investments                          (409,403)    (1,494,782)
  Proceeds from the sale of investments             1,667,142    1,285,763
  Purchases of restricted investments               -            (564,994)
  Proceeds from the sale of restricted investments  359,295      47,479
  Changes in restricted cash                        (48,625)     530,165
Cash used in investing activities                   (203,995)    (659,888)
Financing activities:
  Net change in short-term debt                     27,945       (11,450)
  Repayment of long-term debt                       (650,000)    -
  Issuance of common stock                          10,515       8,097
  Excess tax benefits from stock-based compensation 4,700        1,000
  Distributions to noncontrolling interests         (74,848)     (61,720)
  Cash dividends                                    (466,361)    (461,518)
  Other financing activities                        1,172        30,569
Cash used in financing activities                   (1,146,877)  (495,022)
Effect of exchange rate changes on cash             2,704        (904)
Decrease in cash and cash equivalents               (147,783)    (124,761)
Cash and cash equivalents - beginning of year       1,200,645    1,325,406
Cash and cash equivalents - end of year             $            $    
                                                     1,052,862    1,200,645
Non-cash investing activity:
  Accrued plant and equipment purchases             $            $            
                                                    71,726       1,559

 

SOURCE Nucor Corporation

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