Nucor Reports Results For First Quarter Of 2014

               Nucor Reports Results For First Quarter Of 2014

PR Newswire

CHARLOTTE, N.C., April 24, 2014

CHARLOTTE, N.C., April 24, 2014 /PRNewswire/ --Nucor Corporation (NYSE: NUE)
announced today consolidated net earnings of $111.0 million, or $0.35 per
diluted share, for the first quarter of 2014. By comparison, Nucor reported
net earnings of $84.8 million, or $0.26 per diluted share, for the first
quarter of 2013 and net earnings of $170.5 million, or $0.53 per diluted
share, in the fourth quarter of 2013.

Nucor incurred a charge to value inventories using the last-in, first-out
(LIFO) method of accounting of $14.5 million ($0.03 per diluted share) in the
first quarter of 2014, compared with a charge of $18.0 million ($0.03 per
diluted share) in the first quarter of 2013 and a charge of $17.4 million
($0.04 per diluted share) in the fourth quarter of 2013. Included in the first
quarter of 2014 earnings was a $12.8 million ($0.04 per diluted share) charge
primarily related to tax legislation changes in the state of New York. Also
included in first quarter results is a $9.0 million charge ($0.02 per diluted
share) related to the disposal of assets within the steel mills segment.
Earnings in the fourth quarter of 2013 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. 

Nucor's consolidated net sales increased 12% to $5.11 billion in the first
quarter of 2014 from $4.55 billion in the first quarter of 2013 and increased
4% compared with $4.89 billion in the fourth quarter of 2013. Average sales
price per ton increased 3% over the first quarter of 2013 and increased 1%
over the fourth quarter of 2013. Total tons shipped to outside customers were
6,189,000 tons in the first quarter of 2014, an 8% increase over the first
quarter of 2013 and a 3% increase over the fourth quarter of 2013, despite
severe weather conditions. Total first quarter steel mill shipments increased
5% fromthefourth quarterof2013 andincreased7% over the first quarter
of 2013. First quarter downstream steel products shipments to outside
customers decreased 1% from the fourth quarter of 2013 and increased 13% over
the first quarter of 2013.

The average scrap and scrap substitute cost per ton used during the first
quarter of 2014 was $398, an increase of 5% from $379 in the first quarter of
2013 and an increase of 6% compared to $377 in the fourth quarter of 2013. 

Overall operating rates at our steel mills increased to 75% in the first
quarter of 2014 as compared to 72% in the first quarter of 2013 and were the
same as the fourth quarter of 2013.

Total steel mill energy costs in the first quarter of 2014 increased
approximately $5 per ton compared to the first quarter of 2013 and $7 per ton
compared to the fourth quarter of 2013. The increases were attributable to
increased natural gas and electricity unit costs.

Our liquidity position remains strong with $1.25 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.

We continue to be pleased with the progress of our new direct reduced iron
(DRI) plant in St. James Parish, Louisiana. In the first quarter of 2014, the
Louisiana DRI plant produced 455,000 tons with peak operating rates exceeding
90% of the name plate capacity while achieving world-class metallization and
carbon percentages. 

In February, Nucor's board of directors declared a cash dividend of $0.37 per
share payable on May 12, 2014 to stockholders of record on March 31, 2014.
This dividend is Nucor's 164^th consecutive quarterly cash dividend, a record
we expect to continue.

In March, a jury in a federal district court in Houston, Texas, returned a
verdict against Nucor and five other co-defendants in an antitrust litigation
brought by plaintiff MM Steel, LP, a steel plate service center located in
Houston. The jury returned a verdict of $52 million in damages against all
defendants jointly and severally. This amount is subject to trebling under the
federal antitrust laws. The portion of damages, if any, that Nucor may be
required to pay is unknown at this time. Nucor will continue to pursue all
available post-trial motions and appeals to seek to have the verdict
overturned. We continue to believe that MM Steel, LP's claims against Nucor
are meritless and that Nucor acted entirely within its legal rights.
Accordingly, we have not recorded a charge related to this case.

As expected, first quarter of 2014 earnings, excluding the impact of the tax
and disposal of assets charges in the first quarter of 2014, were below the
fourth quarter of 2013 levels, excluding the out-of-period tax adjustment in
the fourth quarter of 2013. The largest factor contributing to this decrease
was severe weather conditions, which disrupted customer demand, decreased the
amount of railcar availability, contributed to increased energy costs at our
steel mills and exacerbated conditions in the seasonally weaker performance of
our fabricated construction products businesses. Additionally, import levels
negatively impacted pricing and margins at our bar and sheet mills. Our
operating performance did benefit from having no major extended planned
outages at our steel mills during the first quarter.

We currently expect some improvement in second quarter of 2014 earnings from
the first quarter of 2014, excluding the impact of the tax and disposal of
assets charges incurred in the first quarter. We anticipate improved
performance at both our steel mills and fabricated construction product
businesses (rebar fabrication, joist and decking and pre-engineered metal
buildings), although imports are expected to continue to pressure pricing and
margins at our steel mills. We remain cautiously optimistic about the small
but noticeable improvement in the nonresidential construction markets in
2014.

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, 2013 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 first quarter results on April 24, 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)
                             Three Months (13 Weeks) Ended
                             April 5, 2014  March 30, 2013  Percentage
                                                            Change
Steel mills production       5,194          4,818           8%
Steel mills total shipments  5,432          5,075           7%
Sales tons to outside customers:
     Steel mills             4,600          4,334           6%
     Joist                   92             71              30%
     Deck                    87             69              26%
     Cold finished           138            122             13%
     Fabricated concrete
     reinforcing steel       239            228             5%
     Other                   1,033          882             17%
                             6,189          5,706           8%





CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)
                                            Three Months (13 Weeks) Ended
                                           April 5, 2014     March 30, 2013
Net sales                                  $   5,108,444   $   4,550,772
Costs, expenses and other:
 Cost of products sold                    4,731,242         4,247,556
 Marketing, administrative and other      133,434           116,225
expenses
 Equity in (earnings) losses of           (4,474)           1,172
unconsolidated affiliates
 Interest expense, net                    40,741            32,491
                                           4,900,943         4,397,444
Earnings before income taxes and
noncontrolling interests                   207,501           153,328
Provision for income taxes                 77,805            42,600
Net earnings                               129,696           110,728
Earnings attributable to
noncontrolling interests                   18,665            25,939
Net earnings attributable to
Nucor stockholders                         $    111,031  $     84,789
Net earnings per share:
 Basic                                    $0.35             $0.26
 Diluted                                  $0.35             $0.26
Average shares outstanding:
 Basic                                    319,505           318,686
 Diluted                                  319,768           318,842





CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
                                             April 5, 2014      Dec. 31, 2013
ASSETS
Current assets:
 Cash and cash equivalents                 $   1,152,542   $  1,483,252
 Short-term investments                    100,000            28,191
 Accounts receivable, net                  1,900,293          1,810,987
 Inventories, net                          2,724,194          2,605,609
 Other current assets                      432,844            482,007
     Total current assets                  6,309,873          6,410,046
Property, plant and equipment, net         4,960,948          4,917,024
Goodwill                                   1,958,967          1,973,608
Other intangible assets, net               851,013            874,154
Other assets                               1,037,210          1,028,451
     Total assets                          $  15,118,011    $ 15,203,283
LIABILITIES
Current liabilities:
 Short-term debt                           $     27,072  $    29,202
 Long-term debt due within one year        3,300              3,300
 Accounts payable                          1,062,572          1,117,078
 Federal income taxes payable              29,582             -
 Salaries, wages and related accruals      218,916            282,860
 Accrued expenses and other current         554,526            527,776
 liabilities
     Total current liabilities             1,895,968          1,960,216
Long-term debt due after one year          4,376,900          4,376,900
Deferred credits and other liabilities     984,608            955,889
     Total liabilities                     7,257,476          7,293,005
EQUITY
Nucor stockholders' equity:
 Common stock                              151,025            151,010
 Additional paid-in capital                1,849,737          1,843,353
 Retained earnings                         7,132,776          7,140,440
 Accumulated other comprehensive (loss)
 income,
     net of income taxes                   (35,797)           9,080
 Treasury stock                            (1,495,586)        (1,498,114)
     Total Nucor stockholders' equity      7,602,155          7,645,769
Noncontrolling interests                   258,380            264,509
     Total equity                          7,860,535          7,910,278
     Total liabilities and equity          $  15,118,011    $ 15,203,283





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
                                              Three Months (13 Weeks) Ended
                                              April 5, 2014    March 30, 2013
Operating activities:
 Net earnings                                $         $       
                                              129,696          110,728
 Adjustments:
   Depreciation                               161,480          130,425
   Amortization                               18,432           19,048
   Stock-based compensation                   5,408            6,035
   Deferred income taxes                      8,312            11,183
   Distribution from affiliates               -                6,708
   Equity in (earnings) losses of             (4,474)          1,172
   unconsolidated affiliates
   Loss on assets                             9,046            -
   Changes in assets and liabilities
   (exclusive of acquisitions and
   dispositions):
             Accounts receivable              (97,183)         (90,688)
             Inventories                      (123,145)        (63,222)
             Accounts payable                 7,489            (175)
             Federal income taxes             56,526           11,654
             Salaries, wages and related      (59,147)         (74,206)
             accruals
             Other operating activities       36,774           60,149
Cash provided by operating activities         149,214          128,811
Investing activities:
 Capital expenditures                         (258,058)        (330,585)
 Investment in and advances to affiliates     (7,105)          (20,678)
 Repayment of advances to affiliates          3,000            7,500
 Disposition of plant and equipment           4,540            2,958
 Acquisitions (net of cash acquired)          (1,408)          -
 Purchases of investments                     (100,000)        -
 Proceeds from the sale of investments        27,529           73,428
 Proceeds from the sale of restricted         -                148,725
 investments
 Changes in restricted cash                   -                (20,135)
Cash used in investing activities             (331,502)        (138,787)
Financing activities:
 Net change in short-term debt                (2,130)          12,512
 Excess tax benefits from stock-based         300              500
 compensation
 Distributions to noncontrolling interests    (24,794)         (34,594)
 Cash dividends                               (118,680)        (117,618)
 Other financing activities                   (601)            109
Cash used in financing activities            (145,905)        (139,091)
Effect of exchange rate changes on cash       (2,517)          (1,095)
Decrease in cash and cash equivalents         (330,710)        (150,162)
Cash and cash equivalents - beginning of year 1,483,252        1,052,862
Cash and cash equivalents - end of three      $           $       
months                                        1,152,542       902,700
Non-cash investing activity:
 Change in accrued plant and equipment        $         $       
 purchases                                    (60,864)         (24,590)





SOURCE Nucor Corporation

Website: http://www.nucor.com
Contact: Nucor Executive Offices, +1-704-366-7000, or fax, +1-704-362-4208
 
Press spacebar to pause and continue. Press esc to stop.