Nucor Reports Results For Second Quarter And First Half Of 2013

       Nucor Reports Results For Second Quarter And First Half Of 2013

PR Newswire

CHARLOTTE, N.C., July 18, 2013

CHARLOTTE, N.C., July 18, 2013 /PRNewswire/ -- Nucor Corporation (NYSE: NUE)
announced today consolidated net earnings of $85.1 million, or $0.27 per
diluted share, for the second quarter of 2013. By comparison, Nucor reported
net earnings of $84.8 million, or $0.26 per diluted share, in the first
quarter of 2013 and net earnings of $112.3 million, or $0.35 per diluted
share, in the second quarter of 2012.

In the first half of 2013, Nucor reported consolidated net earnings of $169.9
million, or $0.53 per diluted share, compared with consolidated net earnings
of $257.4 million, or $0.81 per diluted share, in the first half of last
year.

Nucor's results include no charge to value inventories using the last-in,
first-out (LIFO) method of accounting in the second quarter of 2013, compared
with a charge of $18.0 million ($0.03 per diluted share) recorded in the first
quarter of 2013 and a credit of $14.5 million ($0.03 per diluted share)
recorded in the second quarter of 2012. As a result, the LIFO charge in the
first half of 2013 was $18.0 million ($0.03 per diluted share), compared with
no LIFO charge in the first half of 2012. Second quarter of 2012 earnings
were also affected by non-cash purchase accounting adjustments related to the
Skyline acquisition and the elimination of profit associated with our steel
mills' sales to Skyline post-acquisition of $8.5 million ($0.02 per diluted
share) and a non-cash impairment charge related to our Duferdofin Nucor S.r.l.
joint venture of $30.0 million ($0.09 per diluted share).

Nucor's consolidated net sales increased 3% to $4.67 billion in the second
quarter of 2013 compared with $4.55 billion in the first quarter of 2013 and
decreased 8% compared with $5.10 billion in the second quarter of 2012.
Average sales price per ton increased slightly from the first quarter of 2013
and decreased 7% from the second quarter of 2012. Total tons shipped to
outside customers were 5,839,000 tons in the second quarter of 2013, a 2%
increase over the first quarter of 2013 and a decrease of 1% from the second
quarter of 2012. Total second quarter steel mill shipments decreased 3%
from the second quarter of 2012 and were down 1% from the first
quarter of 2013. Second quarter downstream steel products shipments to
outside customers decreased 4% from the second quarter of 2012 and increased
19% over the first quarter of 2013.

In the first half of 2013, Nucor's consolidated net sales decreased 9% to
$9.22 billion, compared with $10.18 billion in last year's first half. Total
tons shipped to outside customers decreased 3% from the first half of 2012,
while average sales price per ton decreased 7%.

The average scrap and scrap substitute cost per ton used in the second quarter
of 2013 was $377, a slight decrease from $379 in the first quarter of 2013 and
a decrease of 12% from $427 in the second quarter of 2012. The average scrap
and scrap substitute cost per ton used in the first half of 2013 was $378, a
decrease of 13% from $436 in the first half of 2012.

Overall operating rates at our steel mills in the second quarter (73%) were up
slightly from the first quarter (72%) and decreased from last year's second
quarter (76%). Steel mill utilization decreased from 77% in the first half of
2012 to 73% in the first half of 2013. 

Construction is nearing completion on our 2,500,000-ton DRI facility in
Louisiana. We are on schedule for completion of construction and beginning of
start-up late in the third quarter of 2013.

Our liquidity position remains solid with $749.2 million in cash and cash
equivalents, short-term investments, and restricted cash and an untapped $1.5
billion revolving credit facility that does not expire until December 2016.
In addition, cash flow from operations continues to be strong and was $485.0
million through the second quarter of 2013.

In June, Nucor's board of directors declared a cash dividend of $0.3675 per
share payable on August 9, 2013 to stockholders of record on June 28, 2013.
This dividend is Nucor's 161^st consecutive quarterly cash dividend, a record
we expect to continue.

Our second quarter operating performance in the steel mills segment was down
compared with first quarter performance due mainly to weakness in sheet
steel. Our steel products businesses have seen improvements from last quarter
across the board, including joists and deck, building systems and rebar
fabrication products. The steel products segment as a whole returned to solid
profitability in the second quarter after a modest loss in the first quarter
of 2013. We also saw significant improvement in our raw materials segment
over the first quarter of 2013, due mainly to improved performance from our
Trinidad DRI facility that experienced an unplanned 18 day outage last
quarter.

We currently expect to see a modest improvement in earnings for the third
quarter of 2013. We expect to see improvements in sheet steel pricing, which
dropped to its lowest level since November 2010 in June but has since begun to
slowly rebound. Margins on sheet steel have followed a similar trend and are
slowly recovering from lows in the second quarter. The automotive and energy
markets remain strong, while the construction market remains challenged. We
also expect to see increased earnings from our downstream businesses in the
third quarter, continuing the upward trend observed in the second quarter.
Our David J. Joseph operations are expected to benefit from the bottoming of
scrap pricing in the second quarter.

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 second quarter results on July 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)  Six Months (26 Weeks) Ended
                       Ended
                       June   June   Percentage  June 29,  June     Percentage
                       29,    30,    Change      2013      30,      Change
                       2013   2012                         2012
Steel mills            4,892  5,061  -3%         9,710     10,320   -6%
production
Steel mills total      5,025  5,202  -3%         10,100    10,437   -3%
shipments
Sales tons to outside
customers:
   Steel mills         4,274  4,449  -4%         8,608     9,039    -5%
   Joist               91     75     21%         162       139      17%
   Deck                83     76     9%          152       141      8%
   Cold finished       124    132    -6%         246       270      -9%
   Fabricated
   concrete
   reinforcing steel   280    322    -13%        508       572      -11%
   Other               987    871    13%         1,869     1,685    11%
                       5,839  5,925  -1%         11,545    11,846   -3%



CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)
                        Three Months (13 Weeks)   Six Months (26 Weeks)
                       Ended                    Ended
                       June 29,       June 30,    June 29, 2013  June 30, 2012
                       2013           2012
Net sales              $            $         $           $ 10,176,793
                       4,665,588      5,104,199   9,216,360
Costs, expenses and
other:
 Cost of products     4,352,463      4,704,269   8,600,019      9,396,336
sold
 Marketing,
administrative and     123,150        112,528     239,375        219,647
other expenses
 Equity in (earnings)
losses of
unconsolidated         (1,585)        158         (413)          6,832
affiliates
 Impairment of        -              30,000      -              30,000
non-current assets
 Interest expense,    39,228         41,051      71,719         82,723
net
                       4,513,256      4,888,006   8,910,700      9,735,538
Earnings before income
taxes and
noncontrolling         152,332        216,193     305,660        441,255
interests
Provision for income   46,062         76,626      88,662         138,276
taxes
Net earnings           106,270        139,567     216,998        302,979
Earnings attributable
to
noncontrolling         21,125         27,268      47,064         45,576
interests
Net earnings
attributable to
Nucor stockholders     $          $        $          $  
                       85,145        112,299    169,934       257,403
Net earnings per
share:
 Basic                $0.27          $0.35       $0.53          $0.81
 Diluted              $0.27          $0.35       $0.53          $0.81
Average shares
outstanding:
 Basic                318,903        317,975     318,796        317,832
 Diluted              319,023        318,040     318,934        317,910



CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
                                               June 29, 2013    Dec. 31, 2012
ASSETS
Current assets:
  Cash and cash equivalents                  $   630,467   $  1,052,862
  Short-term investments                     47,656           104,167
  Accounts receivable, net                   1,767,177        1,707,317
  Inventories, net                           2,279,744        2,323,641
  Other current assets                       458,119          473,377
         Total current assets                5,183,163        5,661,364
Property, plant and equipment, net           4,608,997        4,283,056
Restricted cash and investments              71,083           275,163
Goodwill                                     1,983,107        2,004,538
Other intangible assets, net                 912,708          959,240
Other assets                                 1,007,593        968,698
         Total assets                        $ 13,766,651    $ 14,152,059
LIABILITIES
Current liabilities:
  Short-term debt                            $    31,668  $    29,912
  Long-term debt due within one year         -                250,000
  Accounts payable                           979,220          1,046,713
  Salaries, wages and related accruals       240,629          279,898
  Accrued expenses and other current          489,059          423,045
  liabilities
         Total current liabilities           1,740,576        2,029,568
Long-term debt due after one year            3,380,200        3,380,200
Deferred credits and other liabilities       874,645          856,917
         Total liabilities                   5,995,421        6,266,685
EQUITY
Nucor stockholders' equity:
  Common stock                               150,962          150,805
  Additional paid-in capital                 1,835,746        1,811,459
  Retained earnings                          7,058,911        7,124,523
  Accumulated other comprehensive (loss)
  income,
         net of income taxes                 (9,334)          56,761
  Treasury stock                             (1,498,656)      (1,501,977)
         Total Nucor stockholders' equity    7,537,629        7,641,571
Noncontrolling interests                     233,601          243,803
         Total equity                        7,771,230        7,885,374
         Total liabilities and equity        $ 13,766,651    $ 14,152,059



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
                                          Six Months (26 Weeks) Ended
                                          June 29, 2013    June 30, 2012
Operating activities:
 Net earnings                            $         $       
                                          216,998          302,979
 Adjustments:
   Depreciation                           258,390          260,968
   Amortization                           37,575           33,122
   Stock-based compensation               34,043           37,312
   Deferred income taxes                  12,304           (23,144)
   Equity in (earnings) losses of         (413)            6,832
   unconsolidated affiliates
   Distributions from affiliates          7,708            -
   Impairment of non-current assets       -                30,000
   Changes in assets and liabilities
   (exclusive of
    acquisitions and dispositions):
           Accounts receivable            (70,785)         (76,245)
           Inventories                    36,087           (152,494)
           Accounts payable               (44,724)         42,394
           Federal income taxes           3,709            3,364
           Salaries, wages and related    (35,332)         (82,991)
           accruals
           Other                          29,414           64,389
Cash provided by operating activities     484,974          446,486
Investing activities:
 Capital expenditures                     (621,306)        (383,448)
 Investment in and advances to affiliates (43,485)         (57,771)
 Repayment of advances to affiliates      30,500           15,000
 Disposition of plant and equipment       10,145           21,026
 Acquisitions (net of cash acquired)      -                (746,410)
 Purchases of investments                 (19,390)         (409,403)
 Proceeds from the sale of investments    73,428           1,200,153
 Proceeds from the sale of restricted     148,725          87,115
 investments
 Changes in restricted cash               55,355           7,078
Cash used in investing activities         (366,028)        (266,660)
Financing activities:
 Net change in short-term debt            1,796            5,234
 Repayment of long-term debt              (250,000)        -
 Issuance of common stock                 -                6,156
 Excess tax benefits from stock-based     1,700            3,877
 compensation
 Distributions to noncontrolling          (57,266)         (52,812)
 interests
 Cash dividends                           (235,280)        (232,766)
 Other financing activities               109              670
Cash used in financing activities        (538,941)        (269,641)
Effect of exchange rate changes on cash   (2,400)          1,159
Decrease in cash and cash equivalents     (422,395)        (88,656)
Cash and cash equivalents - beginning of  1,052,862        1,200,645
year
Cash and cash equivalents - end of six    $         $     
months                                    630,467          1,111,989
Non-cash investing activity:
 Change in accrued plant and equipment    $         $         
 purchases                                (20,537)             -

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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