Nucor Reports Results For First Quarter Of 2013 PR Newswire CHARLOTTE, N.C., April 18, 2013 CHARLOTTE, N.C., April 18, 2013 /PRNewswire/ --Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $84.8 million, or $0.26 per diluted share, for the first quarter of 2013. By comparison, Nucor reported net earnings of $145.1 million, or $0.46 per diluted share, for the first quarter of 2012 and net earnings of $136.9 million, or $0.43 per diluted share, in the fourth quarter of 2012. Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $18.0 million ($0.03 per diluted share) in the first quarter of 2013, compared with a charge of $14.5 million ($0.03 per diluted share) in the first quarter of 2012 and a credit of $71.9 million ($0.14 per diluted share) in the fourth quarter of 2012. Also affecting earnings in the first quarter 2012 was a non-cash gain of $12.6 million ($0.04 per diluted share) related to the recognition of state tax credits and the adjustment of tax expense to previously filed returns. Nucor's consolidated net sales decreased 10% to $4.55 billion in the first quarter of 2013 from $5.07 billion in the first quarter of 2012 and increased 2% compared with $4.45 billion in the fourth quarter of 2012. Average sales price per ton decreased 7% from the first quarter of 2012 and decreased 2% from the fourth quarter of 2012. Total tons shipped to outside customers were 5,706,000 tons in the first quarter of 2013, a 4% decrease from the first quarter of 2012 and a 4% increase over the fourth quarter of 2012. The average scrap and scrap substitute cost per ton used during the first quarter of 2013 was $379, a decrease of 15% from $445 in the first quarter of 2012 and an increase of 2% compared to $372 in the fourth quarter of 2012. Overall operating rates at our steel mills decreased to 72% in the first quarter of 2013 as compared to 79% in the first quarter of 2012, but increased from 71% in the fourth quarter of 2012. Total energy costs in the first quarter of 2013 increased approximately $1 per ton compared to the first quarter of 2012 attributable mainly to the increased cost of electricity due to lower production volumes and increased unit costs. Energy costs decreased approximately $1 per ton from the fourth quarter of 2012 due mainly to decreased natural gas costs. Construction is progressing on our 2,500,000-ton DRI facility in Louisiana. Due to extreme weather conditions in the first quarter, we now expect to start up late in the third quarter of 2013. Our liquidity position remains strong with $1.08 billion in cash and cash equivalents, short-term investments, and restricted cash and investments, and an untapped $1.5 billion revolving credit facility that matures in December 2016. In February, Nucor's board declared a cash dividend of $0.3675 per share payable on May 10, 2013 to stockholders of record on March 28, 2013. This dividend is Nucor's 160^th consecutive quarterly cash dividend, a record we expect to continue. Metal margins at our steel mills for the first quarter remained flat compared with the fourth quarter of 2012. Overall, our steel mills have not experienced the seasonal improvement in volume and pricing that is typical in the first quarter of the year. As expected, our downstream steel products segment experienced a seasonal slowdown in the first quarter, and that segment reported a modest loss following three straight quarters of profitable operating performance. Our raw materials segment also reported weaker results due to an unplanned 18 day outage at our Trinidad DRI facility and weather-related effects negatively impacting the flow of scrap in our scrap processing business. For the second quarter of 2013, we currently expect to see some improvement in earnings driven by better performance at our fabricated construction products businesses (rebar fabrication, joist and decking and pre-engineered metal buildings), raw materials businesses and most steel mill product groups, partially offset by weaker performance in sheet steel. Import levels and general economic and political uncertainty continue to negatively affect our business. We continue to be cautiously optimistic about non-residential construction markets in 2013 as they continue to improve slowly from historically low levels. The strongest end markets continue to be in manufactured goods including energy and automotive. 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 discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2012 Annual Report on Form 10-K, Item 1A. Risk Factors. 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 first quarter results on April 18, 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) Three Months (13 Weeks) Ended March 30, 2013 March 31, 2012 Percentage Change Steel mills production 4,818 5,259 -8% Steel mills total shipments 5,075 5,235 -3% Sales tons to outside customers: Steel mills 4,277 4,424 -3% Joist 71 64 11% Deck 69 65 6% Cold finished 122 138 -12% Fabricated concrete reinforcing steel 228 250 -9% Other 939 980 -4% 5,706 5,921 -4% Unaudited figures are as follows: CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (In thousands, except per share data) Three Months (13 Weeks) Ended March 30, 2013 March 31, 2012 Net sales $ 4,550,772 $ 5,072,594 Costs, expenses and other: Cost of products sold 4,247,556 4,692,067 Marketing, administrative and other 116,225 107,119 expenses Equity in losses of unconsolidated 1,172 6,674 affiliates Interest expense, net 32,491 41,672 4,397,444 4,847,532 Earnings before income taxes and noncontrolling interests 153,328 225,062 Provision for income taxes 42,600 61,650 Net earnings 110,728 163,412 Earnings attributable to noncontrolling interests 25,939 18,308 Net earnings attributable to Nucor stockholders $ 84,789 $ 145,104 Net earnings per share: Basic $0.26 $0.46 Diluted $0.26 $0.46 Average shares outstanding: Basic 318,686 317,689 Diluted 318,842 317,779 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) March 30, 2013 Dec. 31, 2012 ASSETS Current assets: Cash and cash equivalents $ 902,700 $ 1,052,862 Short-term investments 29,503 104,167 Accounts receivable, net 1,791,321 1,707,317 Inventories, net 2,381,648 2,323,641 Other current assets 441,569 473,377 Total current assets 5,546,741 5,661,364 Property, plant and equipment, net 4,450,945 4,283,056 Restricted cash and investments 146,573 275,163 Goodwill 1,990,903 2,004,538 Other intangible assets, net 934,395 959,240 Other assets 969,453 968,698 Total assets $ 14,039,010 $ 14,152,059 LIABILITIES Current liabilities: Short-term debt $ 42,384 $ 29,912 Long-term debt due within one year 250,000 250,000 Accounts payable 1,021,076 1,046,713 Salaries, wages and related accruals 202,041 279,898 Accrued expenses and other current 471,486 423,045 liabilities Total current liabilities 1,986,987 2,029,568 Long-term debt due after one year 3,380,200 3,380,200 Deferred credits and other liabilities 869,580 856,917 Total liabilities 6,236,767 6,266,685 EQUITY Nucor stockholders' equity: Common stock 150,807 150,805 Additional paid-in capital 1,817,429 1,811,459 Retained earnings 7,091,645 7,124,523 Accumulated other comprehensive income, net of income taxes 6,248 56,761 Treasury stock (1,499,033) (1,501,977) Total Nucor stockholders' equity 7,567,096 7,641,571 Noncontrolling interests 235,147 243,803 Total equity 7,802,243 7,885,374 Total liabilities and equity $ 14,039,010 $ 14,152,059 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Three Months (13 Weeks) Ended March 30, 2013 March 31, 2012 Operating activities: Net earnings $ 110,728 $ 163,412 Adjustments: Depreciation 130,425 131,338 Amortization 19,048 16,584 Stock-based compensation 6,035 6,835 Deferred income taxes 11,183 (21,897) Distribution from affiliates 6,708 - Equity in losses of unconsolidated 1,172 6,674 affiliates Changes in assets and liabilities (exclusive of acquisitions): Accounts receivable (90,688) (74,627) Inventories (63,222) (263,153) Accounts payable (175) 222,847 Federal income taxes 11,654 73,281 Salaries, wages and related (74,206) (119,116) accruals Other 60,149 59,641 Cash provided by operating activities 128,811 201,819 Investing activities: Capital expenditures (330,585) (161,497) Investment in and advances to (20,678) (38,441) affiliates Repayment of advances to affiliates 7,500 - Disposition of plant and equipment 2,958 7,953 Acquisitions (net of cash acquired) - (58,848) Purchases of investments - (185,073) Proceeds from the sale of investments 73,428 349,729 Proceeds from the sale of restricted 148,725 38,350 investments Changes in restricted cash (20,135) (38,707) Cash used in investing activities (138,787) (86,534) Financing activities: Net change in short-term debt 12,512 6,158 Issuance of common stock - 5,876 Excess tax benefits from stock-based 500 5,200 compensation Distributions to noncontrolling (34,594) (39,857) interests Cash dividends (117,618) (116,325) Other financing activities 109 357 Cash used in financing activities (139,091) (138,591) Effect of exchange rate changes on cash (1,095) 2,475 Decrease in cash and cash equivalents (150,162) (20,831) Cash and cash equivalents - beginning of 1,052,862 1,200,645 year Cash and cash equivalents - end of three $ 902,700 $ 1,179,814 months Non-cash investing activity: Change in accrued plant and equipment $ $ purchases (24,590) 5,832 SOURCE Nucor Corporation Website: http://www.nucor.com Contact: Nucor Executive Offices, Phone 704-366-7000, Fax 704-362-4208
Nucor Reports Results For First Quarter Of 2013
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