Nucor Reports Results For Second Quarter And First Half Of 2014

       Nucor Reports Results For Second Quarter And First Half Of 2014

PR Newswire

CHARLOTTE, N.C., July 24, 2014

CHARLOTTE, N.C., July 24, 2014 /PRNewswire/ -- Nucor Corporation (NYSE: NUE)
announced today consolidated net earnings of $147.0 million, or $0.46 per
diluted share, for the second quarter of 2014. By comparison, Nucor reported
net earnings of $111.0 million, or $0.35 per diluted share, in the first
quarter of 2014 and net earnings of $85.1 million, or $0.27 per diluted share,
in the second quarter of 2013. Second quarter of 2014 diluted net earnings per
share of $0.46 was above our guidance range of $0.35 to $0.40 per diluted
share due to better than forecasted performance in the steel mills segment.

In the first half of 2014, Nucor reported consolidated net earnings of $258.1
million, or $0.80 per diluted share, compared with consolidated net earnings
of $169.9 million, or $0.53 per diluted share, in the first half of last
year.

Nucor's results include no charge to value inventories using the last-in,
first-out (LIFO) method of accounting in the second quarter of 2014, compared
with a charge of $14.5 million ($0.03 per diluted share) recorded in the first
quarter of 2014 and no charge in the second quarter of 2013. As a result, the
LIFO charge in the first half of 2014 was $14.5 million ($0.03 per diluted
share), compared with a charge of $18.0 million ($0.03 per diluted share) in
the first half of 2013. The second quarter of 2014 included $20.3 million
($0.04 per diluted share) of higher employee stock-based compensation expense
than the first quarter of 2014 and was comparable to the second quarter of
2013 due to the timing of annual grants that are typically authorized in June
of each year. 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 was a
$9.0 million charge ($0.02 per diluted share) related to the disposal of
assets within the steel mills segment.

Nucor's consolidated net sales increased 4% to $5.29 billion in the second
quarter of 2014 compared with $5.11 billion in the first quarter of 2014 and
increased 13% compared with $4.67 billion in the second quarter of 2013.
Average sales price per ton increased 1% over the first quarter of 2014 and
increased 4% over the second quarter of 2013. Total tons shipped to outside
customers were 6,370,000 tons in the second quarter of 2014, a 3% increase
over the first quarter of 2014 and an increase of 9% over the second quarter
of 2013. Total second quarter steel mill shipments increased 1% over the
first quarter of 2014 and 9% over the second quarter of 2013. Second quarter
downstream steel products shipments to outside customers increased 17% over
the first quarter of 2014 and increased 11% over the second quarter of 2013.

In the first half of 2014, Nucor's consolidated net sales increased 13% to
$10.40 billion, compared with $9.22 billion in last year's first half. Total
tons shipped to outside customers increased 9% from the first half of 2013,
while average sales price per ton increased 4%.

The average scrap and scrap substitute cost per ton used in the second quarter
of 2014 was $384, a 4% decrease from $398 in the first quarter of 2014 and an
increase of 2% over $377 in the second quarter of 2013. The average scrap and
scrap substitute cost per ton used in the first half of 2014 was $391, an
increase of 3% over $378 in the first half of 2013.

Overall operating rates at our steel mills increased to 79% in the second
quarter of 2014 as compared with 75% in the first quarter of 2014 and 73% in
the second quarter of 2013. Steel mill utilization increased to 77% in the
first half of 2014 from 73% in the first half of 2013.

Total steel mill energy costs in the second quarter of 2014 decreased
approximately $3 per ton compared with the first quarter of 2014 and increased
$1 per ton over the second quarter of 2013. Energy costs for the first half of
2014 increased $3 per ton over the first half of 2013 due to increased natural
gas and electricity unit costs.

Our liquidity position remains strong with $1.17 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 June, Nucor's board of directors declared a cash dividend of $0.37 per
share payable on August 11, 2014 to stockholders of record on June 30, 2014.
This dividend is Nucor's 165^th consecutive quarterly cash dividend, a record
we expect to continue.

Second quarter of 2014 earnings increased compared with the first quarter of
2014 due in large part to improved performance by the steel mills segment,
particularly at our sheet and bar mills. Sheet steel profitability improved
because of higher sales volumes and margin improvement due to continued strong
demand and supply disruptions at some of our competitors. Our bar mills also
benefited from higher sales volumes and margin improvement. Nucor-Yamato
Steel underwent a planned three week outage in the second quarter which
contributed to decreased volumes for structural steel. The improved results of
the steel mills segment were achieved despite imports being at levels not seen
since 2006. Our fabricated construction products businesses (rebar
fabrication, joist and decking and pre-engineered metal buildings) returned to
solid profitability in the second quarter of 2014, reflecting improving
conditions in the nonresidential construction markets.

The performance of our raw materials segment decreased in the second quarter
of 2014 compared with the first quarter of 2014 due to an operating loss at
our new direct reduced iron (DRI) plant in St. James Parish, Louisiana, which
was consistent with our guidance. The Louisiana DRI plant underwent a three
week outage in the second quarter to implement adjustments that will improve
yield and conversion costs. The Louisiana DRI plant has continued to exceed
our volume expectations while producing excellent quality DRI units. Also
within the raw materials segment, The David J. Joseph Company experienced
decreased profitability in the second quarter of 2014 compared to the first
quarter of 2014 due to lower scrap selling prices.

We currently expect to see a stronger improvement in earnings for the third
quarter of 2014. Although non-residential construction markets remain at
historically low levels, they are improving at a moderate pace. We therefore
expect further increased operating profits in our downstream products
businesses. Steel mill profitability is also expected to improve in the third
quarter of 2014 as our Nucor-Yamato Steel division has no planned outage and
sheet and plate margins continue to benefit from positive pricing trends. We
also expect improvement in the performance of the Louisiana DRI facility in
the third quarter, with profitable performance anticipated by the end of the
year.

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 second quarter results on July 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)    Six Months (26 Weeks) Ended
                     Ended
                     July 5,  June   Percentage  July 5,    June    Percentage
                     2014     29,                2014       29,
                              2013   Change                 2013    Change
Steel mills          5,324    4,892  9%          10,518     9,710   8%
production
Steel mills total    5,477    5,025  9%          10,909     10,100  8%
shipments
Sales tons to
outside customers:
   Steel mills       4,646    4,274  9%          9,246      8,608   7%
   Joist             97       91     7%          189        162     17%
   Deck              101      83     22%         188        152     24%
   Cold finished     133      124    7%          271        246     10%
   Fabricated
   concrete
   reinforcing       321      280    15%         560        508     10%
   steel
   Other             1,072    987    9%          2,105      1,869   13%
                     6,370    5,839  9%          12,559     11,545  9%



CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)
                             Three Months (13 Weeks)   Six Months (26 Weeks)
                            Ended                    Ended
                            July 5, 2014    June 29,   July 5, 2014  June 29,
                                            2013                     2013
Net sales                   $             $        $           $ 
                            5,291,075       4,665,588  10,399,519   9,216,360
Costs, expenses and other:
 Cost of products sold     4,875,208       4,352,463  9,606,450     8,600,019
 Marketing, administrative 132,813         123,150    266,247       239,375
and other expenses
 Equity in earnings of
unconsolidated affiliates   (3,202)         (1,585)    (7,676)       (413)
 Interest expense, net     44,391          39,228     85,132        71,719
                            5,049,210       4,513,256  9,950,153     8,910,700
Earnings before income
taxes and
noncontrolling interests    241,865         152,332    449,366       305,660
Provision for income taxes  74,930          46,062     152,735       88,662
Net earnings                166,935         106,270    296,631       216,998
Earnings attributable to
noncontrolling interests    19,894          21,125     38,559        47,064
Net earnings attributable
to
Nucor stockholders          $            $      $         $  
                            147,041        85,145    258,072      169,934
Net earnings per share:
 Basic                     $0.46           $0.27      $0.80         $0.53
 Diluted                   $0.46           $0.27      $0.80         $0.53
Average shares outstanding:
 Basic                     319,693         318,903    319,597       318,796
 Diluted                   319,981         319,023    319,872       318,934



CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
                                               July 5, 2014     Dec. 31, 2013
ASSETS
Current assets:
  Cash and cash equivalents                  $  1,067,561   $  1,483,252
  Short-term investments                     100,000          28,191
  Accounts receivable, net                   2,071,439        1,810,987
  Inventories, net                           2,738,658        2,605,609
  Other current assets                       517,132          482,007
         Total current assets                6,494,790        6,410,046
Property, plant and equipment, net           4,971,813        4,917,024
Goodwill                                     1,971,452        1,973,608
Other intangible assets, net                 842,445          874,154
Other assets                                 1,030,388        1,028,451
         Total assets                        $ 15,310,888    $ 15,203,283
LIABILITIES
Current liabilities:
  Short-term debt                            $    42,414  $    29,202
  Long-term debt due within one year         11,300           3,300
  Accounts payable                           1,124,077        1,117,078
  Salaries, wages and related accruals       276,660          282,860
  Accrued expenses and other current          562,775          527,776
  liabilities
         Total current liabilities           2,017,226        1,960,216
Long-term debt due after one year            4,368,900        4,376,900
Deferred credits and other liabilities       978,749          955,889
         Total liabilities                   7,364,875        7,293,005
EQUITY
Nucor stockholders' equity:
  Common stock                               151,172          151,010
  Additional paid-in capital                 1,867,948        1,843,353
  Retained earnings                          7,160,952        7,140,440
  Accumulated other comprehensive (loss)
  income,
         net of income taxes                 (3,952)          9,080
  Treasury stock                             (1,495,298)      (1,498,114)
         Total Nucor stockholders' equity    7,680,822        7,645,769
Noncontrolling interests                     265,191          264,509
         Total equity                        7,946,013        7,910,278
         Total liabilities and equity        $ 15,310,888    $ 15,203,283



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
                                         Six Months (26 Weeks) Ended
                                         July 5, 2014          June 29, 2013
Operating activities:
  Net earnings                          $              $       
                                         296,631               216,998
  Adjustments:
    Depreciation                         326,429               258,390
    Amortization                         36,265                37,575
    Stock-based compensation             33,752                34,043
    Deferred income taxes                (5,121)               12,304
    Distributions from affiliates        11,504                7,708
    Equity in earnings of unconsolidated (7,676)               (413)
    affiliates
    Loss on assets                       9,046                 -
    Changes in assets and liabilities
    (exclusive of
     acquisitions and dispositions):
          Accounts receivable            (249,196)             (70,785)
          Inventories                    (130,463)             36,087
          Accounts payable               90,460                (44,724)
          Federal income taxes           14,100                3,709
          Salaries, wages and related    (1,672)               (35,332)
          accruals
          Other                          19,270                29,414
Cash provided by operating activities    443,329               484,974
Investing activities:
  Capital expenditures                   (446,798)             (621,306)
  Investment in and advances to          (68,491)              (43,485)
  affiliates
  Repayment of advances to affiliates    15,000                30,500
  Disposition of plant and equipment     12,858                10,145
  Acquisitions (net of cash acquired)    (38,466)              -
  Purchases of investments               (100,000)             (19,390)
  Proceeds from the sale of investments  27,529                73,428
  Proceeds from the sale of restricted   -                     148,725
  investments
  Changes in restricted cash             -                     55,355
Cash used in investing activities        (598,368)             (366,028)
Financing activities:
  Net change in short-term debt          13,212                1,796
  Repayment of long-term debt            -                     (250,000)
  Excess tax benefits from stock-based   2,700                 1,700
  compensation
  Distributions to noncontrolling        (37,877)              (57,266)
  interests
  Cash dividends                         (237,369)             (235,280)
  Other financing activities             (1,123)               109
Cash used in financing activities       (260,457)             (538,941)
Effect of exchange rate changes on cash  (195)                 (2,400)
Decrease in cash and cash equivalents    (415,691)             (422,395)
Cash and cash equivalents - beginning of 1,483,252             1,052,862
year
Cash and cash equivalents - end of six   $                $       
months                                   1,067,561            630,467
Non-cash investing activity:
  Change in accrued plant and equipment  $              $       
  purchases                              (96,023)              (20,537)



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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