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
Nucor Reports Results For Fourth Quarter And Year Ended 2013
Press spacebar to pause and continue. Press esc to stop.