Nucor Reports Results For Fourth Quarter And Year Ended 2013

         Nucor Reports Results For Fourth Quarter And Year Ended 2013

PR Newswire

CHARLOTTE, N.C., Jan. 28, 2014

CHARLOTTE, N.C., Jan.28, 2014 /PRNewswire/ --Nucor Corporation (NYSE: NUE)
announced today consolidated net earnings of $488.0 million, or $1.52 per
diluted share, for the full year 2013, compared with consolidated net earnings
of $504.6 million, or $1.58 per diluted share, for the full year 2012. Nucor
reported consolidated net earnings of $170.5 million, or $0.53 per diluted
share, for the fourth quarter of 2013. By comparison, Nucor reported net
earnings of $147.6 million, or $0.46 per diluted share, in the third quarter
of 2013 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 $17.4 million ($0.04 per diluted share) for
both the full year of 2013 and the fourth quarter of 2013. These charges are
compared with a credit of $155.9 million ($0.31 per diluted share) for the
full year 2012, a credit of $18.0 million ($0.03 per diluted share) in the
third quarter of 2013 and a credit of $71.9 million ($0.14 per diluted share)
recorded in the fourth quarter of 2012. 

The fourth quarter and full year 2013 results were impacted by an
out-of-period non-cash gain of $21.3 million ($0.07 per diluted share) related
to a correction to deferred tax balances. Third quarter of 2013 results
included 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. Fourth quarter of 2012
earnings were affected by non-cash inventory purchase accounting adjustments
following the acquisition of Skyline Steel LLC in June of 2012 of $12.0
million ($0.02 per diluted share). The full year 2012 Skyline purchase
accounting charges were approximately $48.8 million ($0.10 per diluted
share). A $17.6 million ($0.04 per diluted share) loss on the sale of the
assets of Nucor Wire Products Pennsylvania, Inc. was also incurred in 2012.

For the full year 2013, Nucor's consolidated net sales decreased 2% to $19.05
billion, compared with $19.43 billion for 2012. Average sales price per ton
decreased 5% from full year 2012. Total tons shipped to outside customers
were 23,730,000 tons, an increase of 3% from 2012 levels.

Nucor's consolidated net sales decreased 1% to $4.89 billion in the fourth
quarter of 2013 compared with $4.94 billion in the third quarter of 2013 and
increased 10% compared with $4.45 billion in the fourth quarter of 2012.
Average sales price per ton increased 1% over the third quarter of 2013 and
remained flat when compared with the fourth quarter of 2012. Total tons
shipped to outside customers were 6,019,000 tons in the fourth quarter of
2013, a 2% decrease from the third quarter of 2013 and a 10% increase over the
fourth quarter of 2012. Total fourth quarter steel mill shipments decreased
3% from the third quarter of 2013 and increased 9% over the fourth
quarter of 2012. Fourth quarter downstream steel products shipments to
outside customers decreased 6% from the third quarter of 2013 and increased 3%
over the fourth quarter of 2012.

The average scrap and scrap substitute cost per ton used for the full year
2013 was $376, a decrease of 8% from $407 in 2012. The average scrap and
scrap substitute cost per ton used in the fourth quarter of 2013 was $377, an
increase of 1% over $372 in both the third quarter of 2013 and the fourth
quarter of 2012.

Overall operating rates at our steel mills were 74% for the full year 2013,
which is consistent with 2012 and 2011. Steel mill utilization rates in the
fourth quarter (75%) were down from the third quarter (78%), but up from last
year's fourth quarter (71%).

For the full year 2013, total energy costs decreased approximately $1 per ton
from the prior year primarily due to the negative impact of natural gas hedge
settlements on our overall natural gas costs in 2012. In the fourth quarter
of 2013, total energy costs decreased approximately $2 per ton from the third
quarter of 2013 due primarily to lower electricity unit costs, and decreased
approximately $3 per ton from the fourth quarter of 2012 primarily due to
natural gas hedge settlement costs in the fourth quarter of last year.

Our liquidity position remains solid with $1.51 billion in cash and cash
equivalents and short-term investments and an untapped $1.5 billion revolving
credit facility that does not expire until August 2018. In addition, cash
flow from operations continues to be strong and was $1.1 billion for the year.

In December, Nucor's board of directors declared a cash dividend of $0.37 per
share payable on February 11, 2014 to stockholders of record on December 31,
2013. This dividend is Nucor's 163^rd consecutive quarterly cash dividend,
and it marks 41 consecutive years of an increased base dividend.

As expected, our fourth quarter 2013 operating performance in the steel mills
segment was similar to the third quarter of 2013. Sheet steel profitability
has continued to improve despite afour week planned outage at our sheet steel
mill in Berkeley County, South Carolina to accommodate major equipment
upgrades related to our wide and light product expansion. Those upgrades were
completed in the fourth quarter. The increased sheet steel performance in the
second half of 2013 is due to a series of pricing increases that began late in
the second quarter that were supported by competitor supply disruptions and
slightly improved demand. Improvements in sheet steel, however, were offset
by decreased performance at our bar and structural steel mills. Lower
operating performance at the bar and structural mills is mainly due to
extended planned outages during the fourth quarter while key components of
some of our major capital projects were installed at our SBQ mill in Norfolk,
Nebraska and our structural mill in Blytheville, Arkansas. Profitability in
the raw materials segment in the fourth quarter was negatively impacted by
increased start-up costs at our new direct reduced iron (DRI) plant in
Louisiana and additional costs incurred as a result of the storage dome
collapse in September. The Louisiana DRI facility began production late in
December.

We currently expect that first quarter of 2014 earnings, excluding the impact
of the fourth quarter out of period tax adjustment, will be similar to the
fourth quarter of 2013 levels. We anticipate that our operating performance
will benefit from having no major extended planned outages at our steel mills
during the first quarter and from having decreased start-up costs at our
Louisiana DRI facility. These improvements will be largely offset by
seasonally weaker performance in our fabricated construction products
businesses, which we believe will be even further exacerbated by unusually
poor weather. 

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 fourth quarter results on January 28,
2014 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,
                      2013     2012     Percentage  2013    2012    Percentage
                                        Change                      Change
Steel mills           4,988    4,726    6%          19,900  19,865  -
production
Steel mills total     5,191    4,762    9%          20,650  20,242  2%
shipments
Sales tons to outside
customers:
 Steel mills          4,485    4,121    9%          17,733  17,473  1%
 Joist                94       74       27%         342     291     18%
 Deck                 92       87       6%          334     308     8%
 Cold finished        115      104      11%         474     492     -4%
 Fabricated concrete
 reinforcing steel    252      265      -5%         1,065   1,180   -10%
 Other                981      827      19%         3,782   3,348   13%
                      6,019    5,478    10%         23,730  23,092  3%







CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)
                        Quarter Ended December 31,  Year Ended December 31,
                        2013          2012          2013          2012
Net sales               $ 4,894,750   $ 4,451,274   $ 19,052,046  $ 19,429,273
Costs, expenses and
other:
 Cost of products sold 4,509,009     4,066,926     17,641,421    17,915,735
 Marketing,
administrative and      117,403       120,861       481,904       454,900
other expenses
 Equity in (earnings)
losses of
unconsolidated          (6,632)       4,230         (9,297)       13,323
affiliates
 Impairment of         -             -             -             30,000
non-current assets
 Interest expense, net 37,709        39,347        146,895       162,375
                        4,657,489     4,231,364     18,260,923    18,576,333
Earnings before income
taxes and
noncontrolling          237,261       219,910       791,123       852,940
interests
Provision for income    46,845        59,655        205,594       259,814
taxes
Net earnings            190,416       160,255       585,529       593,126
Earnings attributable
to
noncontrolling          19,922        23,347        97,504        88,507
interests
Net earnings
attributable to
Nucor stockholders      $  170,494  $  136,908  $           $  
                                                    488,025      504,619
Net earnings per share:
 Basic                 $0.53         $0.43         $1.52         $1.58
 Diluted               $0.53         $0.43         $1.52         $1.58
Average shares
outstanding:
 Basic                 319,361       318,553       319,077       318,172
 Diluted               319,652       318,613       319,266       318,240



CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
                                               Dec. 31, 2013    Dec. 31, 2012
ASSETS
Current assets:
  Cash and cash equivalents                  $  1,483,252    $  1,052,862
  Short-term investments                     28,191           104,167
  Accounts receivable, net                   1,810,987        1,707,317
  Inventories, net                           2,605,609        2,323,641
  Other current assets                       482,007          473,377
          Total current assets               6,410,046        5,661,364
Property, plant and equipment, net           4,917,024        4,283,056
Restricted cash and investments              -                275,163
Goodwill                                     1,973,608        2,004,538
Other intangible assets, net                 874,154          959,240
Other assets                                 1,028,451        968,698
          Total assets                       $ 15,203,283     $ 14,152,059
LIABILITIES
Current liabilities:
  Short-term debt                            $    29,202  $    29,912
  Long-term debt due within one year         3,300            250,000
  Accounts payable                           1,117,078        1,046,713
  Salaries, wages and related accruals       282,860          279,898
  Accrued expenses and other current          527,776          423,045
  liabilities
          Total current liabilities          1,960,216        2,029,568
Long-term debt due after one year            4,376,900        3,380,200
Deferred credits and other liabilities       955,889          856,917
          Total liabilities                  7,293,005        6,266,685
EQUITY
Nucor stockholders' equity:
  Common stock                               151,010          150,805
  Additional paid-in capital                 1,843,353        1,811,459
  Retained earnings                          7,140,440        7,124,523
  Accumulated other comprehensive income,
          net of income taxes                9,080            56,761
  Treasury stock                             (1,498,114)      (1,501,977)
          Total Nucor stockholders' equity   7,645,769        7,641,571
Noncontrolling interests                     264,509          243,803
          Total equity                       7,910,278        7,885,374
          Total liabilities and equity       $ 15,203,283     $ 14,152,059



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
                                              Year Ended December 31,
                                              2013             2012
Operating activities:
  Net earnings                               $   585,529   $   593,126
  Adjustments:
    Depreciation                              535,852          534,010
    Amortization                              74,356           73,011
    Stock-based compensation                  47,450           50,733
    Deferred income taxes                     56,564           (25,274)
    Distributions from affiliates             8,708            -
    Equity in (earnings) losses of            (9,297)          13,323
    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              (103,649)        148,113
             Inventories                      (298,074)        (65,655)
             Accounts payable                 39,489           (111,496)
             Federal income taxes             77,950           (28,022)
             Salaries, wages and related      7,155            (60,363)
             accruals
             Other                            41,916           31,316
Cash provided by operating activities         1,077,949        1,200,385
Investing activities:
  Capital expenditures                        (1,196,952)      (947,608)
  Investment in and advances to affiliates    (85,053)         (180,472)
  Repayment of advances to affiliates         54,500           65,446
  Disposition of plant and equipment          34,097           51,063
  Acquisitions (net of cash acquired)         -                (760,833)
  Purchases of investments                    (19,349)         (409,403)
  Proceeds from the sale of investments       92,761           1,667,142
  Proceeds from the sale of restricted        148,725          359,295
  investments
  Changes in restricted cash                  126,438          (48,625)
  Other investing activities                  4,863            -
Cash used in investing activities             (839,970)        (203,995)
Financing activities:
  Net change in short-term debt               (671)            27,945
  Proceeds from long-term debt, net of        999,100          -
  discount
  Repayment of long-term debt                 (250,000)        (650,000)
  Bond issuance costs                         (7,625)          -
  Issuance of common stock                    -                10,515
  Excess tax benefits from stock-based        2,955            4,700
  compensation
  Distributions to noncontrolling interests   (76,798)         (74,848)
  Cash dividends                              (471,028)        (466,361)
  Other financing activities                  111              1,172
Cash provided by (used in) financing          196,044          (1,146,877)
activities
Effect of exchange rate changes on cash       (3,633)          2,704
Increase (decrease) in cash and cash          430,390          (147,783)
equivalents
Cash and cash equivalents - beginning of year 1,052,862        1,200,645
Cash and cash equivalents - end of year       $  1,483,252    $  1,052,862
Non-cash investing activity:
  Change in accrued plant and equipment       $    33,467  $    71,726
  purchases

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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