Nucor Reports Results For Third Quarter And Nine Months Of 2013

       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