Nucor Reports Results For Third Quarter And Nine Months Of 2013 PR Newswire CHARLOTTE, N.C., Oct. 17, 2013 CHARLOTTE, N.C., Oct. 17, 2013 /PRNewswire/ --Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $147.6 million, or $0.46 per diluted share, for the third quarter of 2013. By comparison, Nucor reported net earnings of $85.1 million, or $0.27 per diluted share, in the second quarter of 2013 and net earnings of $110.3 million, or $0.35 per diluted share, in the third quarter of 2012. In the first nine months of 2013, Nucor reported consolidated net earnings of $317.5 million, or $0.99 per diluted share, compared with consolidated net earnings of $367.7 million, or $1.15 per diluted share, in the first nine months of last year. Third quarter of 2013 earnings were negatively affected by a net $14.0 million ($0.03 per diluted share) partial write down of inventory and fixed asset balances associated with the collapse of a storage dome at Nucor Steel Louisiana in St. James Parish on September 25, 2013. There were no injuries sustained, and there was no environmental impact. Nucor Steel Louisiana was finishing construction of its new direct reduced iron (DRI) plant on the site and preparing to begin production. The start-up of operations will now be delayed until the end of the year. Nucor recorded a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $18.0 million ($0.03 per diluted share) in the third quarter of 2013, compared with no charge or credit recorded in the second quarter of 2013 and a credit of $84.0 million ($0.16 per diluted share) recorded in the third quarter of 2012. As a result, there is no LIFO charge in the first nine months of 2013, compared with a LIFO credit of $84.0 million ($0.16 per diluted share) in the first nine months of 2012. Third quarter of 2012 earnings were also affected by non-cash inventory purchase accounting adjustments following the acquisition of Skyline Steel LLC in June of 2012 of $28.2 million ($0.06 per diluted share) and a loss on the sale of assets of Nucor Wire Products Pennsylvania, Inc. of $17.6 million ($0.04 per diluted share). Nucor's consolidated net sales increased 6% to $4.94 billion in the third quarter of 2013 compared with $4.67 billion in the second quarter of 2013 and increased 3% compared with $4.80 billion in the third quarter of 2012. Average sales price per ton increased slightly from the second quarter of 2013 and decreased 4% from the third quarter of 2012. Total tons shipped to outside customers were 6,166,000 tons in the third quarter of 2013, a 6% increase over the second quarter of 2013 and a 7% increase over the third quarter of 2012. Total third quarter steel mill shipments increased 6% over the third quarter of 2012 and increased 7% from the second quarter of 2013. Third quarter downstream steel products shipments to outside customers decreased 4% from the third quarter of 2012 and increased 2% over the second quarter of 2013. In the first nine months of 2013, Nucor's consolidated net sales decreased 5% to $14.16 billion, compared with $14.98 billion in last year's first nine months. Total tons shipped to outside customers increased 1% over the first nine months of 2012, while average sales price per ton decreased 6%. The average scrap and scrap substitute cost per ton used in the third quarter of 2013 was $372, a decrease of 1% from $377 in the second quarter of 2013 and a decrease of 2% from $380 in the third quarter of 2012. The average scrap and scrap substitute cost per ton used in the first nine months of 2013 was $376, a decrease of 10% from $418 in the first nine months of 2012. Overall operating rates at our steel mills in the third quarter (78%) were up from the second quarter (73%) and from last year's third quarter (71%). Year-to-date steel mill utilization decreased from 75% in the third quarter of 2012 to 74% in the third quarter of 2013. Our liquidity position has improved to $1.77 billion in cash and cash equivalents, short-term investments, and restricted cash at the end of the third quarter, compared with $749.2 million at the end of the second quarter. During the third quarter, we issued $500.0 million of 4.00% notes due in 2023 and $500.0 million of 5.20% notes due in 2043. The bond offering effectively refinanced $900.0 million of debt that matured between the fourth quarter of 2012 and the second quarter of 2013. The weighted average interest rate of the new debt is 35 basis points lower than the retired debt, and the new debt also lengthens our debt maturity profile with its weighted average term to maturity of 20 years. In addition, our undrawn $1.5 billion revolving credit facility has been amended and restated to extend the maturity date to August 2018. Cash flows from operations continue to be strong and was $883.6 million through the third quarter of 2013. In September, Nucor's board of directors declared a cash dividend of $0.3675 per share payable on November 8, 2013 to stockholders of record on September 27, 2013. This dividend is Nucor's 162^nd consecutive quarterly cash dividend, a record we expect to continue. Our third quarter operating performance in the steel mills segment improved significantly compared with second quarter performance mainly due to better pricing for sheet steel. Sheet steel profitability improved as a result of competitor supply disruptions, customer inventory restocking and some market demand improvement. Structural steel profitability also improved due to Nucor-Yamato Steel's higher production following its 17 day planned outage during the second quarter and customer inventory restocking. It is also worth noting that our fabricated construction products businesses (rebar fabrication, joist and decking, and pre-engineered metal buildings) have had operating profits in five of the last six quarters. Although we expect stability in metal margins, we typically experience lower shipping volumes in the fourth quarter due to seasonal factors. Additionally, we expect extended planned outages during the fourth quarter at our SBQ mill in Norfolk, Nebraska, our sheet mill in Berkeley County, South Carolina, and our structural mill in Blytheville, Arkansas in preparation for our previously announced capital expansion projects at those facilities. As a result, we currently expect to see moderately lower earnings for the fourth quarter of 2013. 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 third quarter results on October 17, 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) Nine Months (39 Weeks) Ended Ended Sept. Sept. Percentage Sept. Sept. Percentage 28, 29, Change 28, 29, Change 2013 2012 2013 2012 Steel mills production 5,202 4,819 8% 14,912 15,139 -1% Steel mills total 5,359 5,043 6% 15,459 15,480 - shipments Sales tons to outside customers: Steel mills 4,640 4,313 8% 13,248 13,352 -1% Joist 86 78 10% 248 217 14% Deck 90 80 13% 242 221 10% Cold finished 113 118 -4% 359 388 -7% Fabricated concrete reinforcing 305 343 -11% 813 915 -11% steel Other 932 836 11% 2,801 2,521 11% 6,166 5,768 7% 17,711 17,614 1% CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (In thousands, except per share data) Three Months (13 Weeks) Nine Months (39 Weeks) Ended Ended Sept. 28, 2013 Sept. 29, Sept. 28, 2013 Sept. 29, 2012 2012 Net sales $ 4,940,936 $ $ $ 14,977,999 4,801,206 14,157,296 Costs, expenses and other: Cost of products 4,532,393 4,452,473 13,132,412 13,848,809 sold Marketing, administrative 125,126 114,392 364,501 334,039 andother expenses Equity in (earnings) losses of unconsolidated (2,252) 2,261 (2,665) 9,093 affiliates Impairment of non-current - - - 30,000 assets Interest expense, 37,467 40,305 109,186 123,028 net 4,692,734 4,609,431 13,603,434 14,344,969 Earnings before income taxes and noncontrolling 248,202 191,775 553,862 633,030 interests Provision for income 70,087 61,883 158,749 200,159 taxes Net earnings 178,115 129,892 395,113 432,871 Earnings attributable to noncontrolling 30,518 19,584 77,582 65,160 interests Net earnings attributable to Nucor stockholders $ $ $ $ 147,597 110,308 317,531 367,711 Net earnings per share: Basic $0.46 $0.35 $0.99 $1.15 Diluted $0.46 $0.35 $0.99 $1.15 Average shares outstanding: Basic 319,341 318,463 318,979 318,042 Diluted 319,526 318,520 319,132 318,113 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) Sept. 28, 2013 Dec. 31, 2012 ASSETS Current assets: Cash and cash equivalents $ 1,722,909 $ 1,052,862 Short-term investments 48,476 104,167 Accounts receivable, net 1,918,165 1,707,317 Inventories, net 2,439,847 2,323,641 Other current assets 339,480 473,377 Total current assets 6,468,877 5,661,364 Property, plant and equipment, net 4,697,339 4,283,056 Restricted cash and investments 393 275,163 Goodwill 1,983,617 2,004,538 Other intangible assets, net 896,407 959,240 Other assets 1,045,143 968,698 Total assets $ 15,091,776 $ 14,152,059 LIABILITIES Current liabilities: Short-term debt $ 38,203 $ 29,912 Long-term debt due within one year - 250,000 Accounts payable 1,137,352 1,046,713 Salaries, wages and related accruals 288,730 279,898 Accrued expenses and other current 529,204 423,045 liabilities Total current liabilities 1,993,489 2,029,568 Long-term debt due after one year 4,380,200 3,380,200 Deferred credits and other liabilities 854,814 856,917 Total liabilities 7,228,503 6,266,685 EQUITY Nucor stockholders' equity: Common stock 150,968 150,805 Additional paid-in capital 1,841,499 1,811,459 Retained earnings 7,088,630 7,124,523 Accumulated other comprehensive income, net of income taxes 22,545 56,761 Treasury stock (1,498,436) (1,501,977) Total Nucor stockholders' equity 7,605,206 7,641,571 Noncontrolling interests 258,067 243,803 Total equity 7,863,273 7,885,374 Total liabilities and equity $ 15,091,776 $ 14,152,059 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Nine Months (39 Weeks) Ended Sept. 28, 2013 Sept. 29, 2012 Operating activities: Net earnings $ $ 395,113 432,871 Adjustments: Depreciation 390,495 394,690 Amortization 56,051 53,518 Stock-based compensation 40,551 42,858 Deferred income taxes 10,881 (42,548) Distributions from affiliates 7,708 - Equity in (earnings) losses of (2,665) 9,093 unconsolidated affiliates Impairment of non-current assets - 30,000 Loss on assets 14,000 17,563 Changes in assets and liabilities (exclusive of acquisitions and dispositions): Accounts receivable (204,540) 62,787 Inventories (129,280) 41,662 Accounts payable 122,520 21,668 Federal income taxes 70,210 11,248 Salaries, wages and related 12,796 (52,561) accruals Other 99,800 101,835 Cash provided by operating activities 883,640 1,124,684 Investing activities: Capital expenditures (887,929) (613,777) Investment in and advances to (64,762) (66,423) affiliates Repayment of advances to affiliates 42,000 32,500 Disposition of plant and equipment 29,328 42,574 Acquisitions (net of cash acquired) - (763,657) Purchases of investments (19,349) (409,403) Proceeds from the sale of investments 73,428 1,341,913 Proceeds from the sale of restricted 148,725 209,930 investments Changes in restricted cash 126,045 (38,301) Other investing 4,862 - Cash used in investing activities (547,652) (264,644) Financing activities: Net change in short-term debt 8,331 28,983 Proceeds from long-term debt, net of 999,100 - discount Repayment of long-term debt (250,000) - Bond issuance costs (7,625) - Issuance of common stock - 10,515 Excess tax benefits from stock-based 2,100 4,377 compensation Distributions to noncontrolling (63,318) (66,562) interests Cash dividends (353,155) (349,538) Other financing activities 110 962 Cash provided by (used in) financing 335,543 (371,263) activities Effect of exchange rate changes on cash (1,484) 3,775 Increase in cash and cash equivalents 670,047 492,552 Cash and cash equivalents - beginning 1,052,862 1,200,645 of year Cash and cash equivalents - end of nine $ $ months 1,722,909 1,693,197 Non-cash investing activity: Change in accrued plant and equipment $ $ purchases (30,416) 77,764 SOURCE Nucor Corporation Website: http://www.nucor.com Contact: Nucor Executive Offices, +1-704-366-7000, or fax, +1-704-362-4208
Nucor Reports Results For Third Quarter And Nine Months Of 2013
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