Nucor Reports Results For Fourth Quarter And Year Ended 2012

29 Jan, 2013, 09:00 ET from Nucor Corporation

CHARLOTTE, N.C., Jan. 29, 2013 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $504.6 million, or $1.58 per diluted share, for the full year 2012, compared with consolidated net earnings of $778.2 million, or $2.45 per diluted share, for the full year 2011. Nucor reported consolidated net earnings of $136.9 million, or $0.43 per diluted share, for the fourth quarter of 2012. By comparison, Nucor reported net earnings of $110.3 million, or $0.35 per diluted share, in the third quarter of 2012 and net earnings of $137.1 million, or $0.43 per diluted share, in the fourth quarter of 2011. 

Nucor recorded a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $155.9 million ($0.31 per diluted share) for the full year 2012, compared with a charge of $142.8 million ($0.28 per diluted share) for the full year 2011.  The LIFO credit in the fourth quarter of 2012 was $71.9 million ($0.14 per diluted share), compared with a credit of $84.0 million ($0.16 per diluted share) in the third quarter of 2012 and a charge of $51.8 million ($0.11 per diluted share) in the fourth quarter of 2011. 

Non-cash inventory related purchase accounting charges associated with our acquisition of Skyline Steel LLC decreased to $12.0 million ($0.02 per diluted share) in the fourth quarter of 2012 compared to $28.2 million ($0.06 per diluted share) in the third quarter of 2012.  The full year 2012 Skyline purchase accounting charges were approximately $48.8 million ($0.10 per diluted share). 

Third quarter of 2012 results also included a loss on the sale of the assets of Nucor Wire Products Pennsylvania, Inc. of $17.6 million ($0.04 per diluted share). Fourth quarter of 2011 results were impacted by a non-cash gain of $29.0 million ($0.06 per diluted share) for the correction of an actuarial calculation related to the medical plan covering certain eligible early retirees.

For the full year 2012, Nucor's consolidated net sales decreased 3% to $19.43 billion, compared with $20.02 billion for 2011.  Average sales price per ton decreased 3% from full year 2011.  Total tons shipped to outside customers were 23,092,000 tons, a slight increase from 2011 levels.

Nucor's consolidated net sales decreased 7% to $4.45 billion in the fourth quarter of 2012 compared with $4.80 billion in the third quarter of 2012 and decreased 8% compared with $4.83 billion in the fourth quarter of 2011. Average sales price per ton decreased 2% from the third quarter of 2012 and decreased 4% from the fourth quarter of 2011. Total tons shipped to outside customers were 5,478,000 tons in the fourth quarter of 2012, a 5% decrease from the third quarter of 2012 and a 4% decrease from the fourth quarter of 2011. 

The average scrap and scrap substitute cost per ton used for the full year 2012 was $407, a decrease of 7% from $439 in 2011.  The average scrap and scrap substitute cost per ton used in the fourth quarter of 2012 was $372, a decrease of 2% from $380 in the third quarter of 2012 and a decrease of 16% from $441 in the fourth quarter of 2011.

Overall operating rates at our steel mills were 74% for the full year 2012, which is consistent with 2011 and an increase from 70% in 2010.  Steel mill utilization rates in the fourth quarter of 2012 (71%) were flat when compared with the third quarter and with last year's fourth quarter.  

For the full year 2012, total energy costs decreased approximately $2 per ton from the prior year primarily due to lower natural gas unit costs.  In the fourth quarter of 2012, total energy costs decreased approximately $2 per ton from the third quarter of 2012, and decreased slightly from the fourth quarter of 2011 primarily due to lower electricity unit costs.

Construction is going well on our 2,500,000-ton DRI facility in Louisiana. The majority of the equipment arrived in 2012, and we are on schedule for start-up in mid-2013.

Our liquidity position remains strong with $1.43 billion in cash and cash equivalents, short-term investments, and restricted cash and investments.  Our $1.5 billion revolving credit facility that matures in December 2016 remains unused.

In December, Nucor's board of directors declared a cash dividend of $0.3675 per share payable on February 11, 2013 to stockholders of record on December 31, 2012.  This dividend is Nucor's 159th consecutive quarterly cash dividend, a record we expect to continue.

Fourth quarter earnings of $0.43 per share were significantly better than our quantitative guidance of between $0.25 and $0.30 per share.  This improved performance was due to better than expected operating profits, primarily at our sheet, plate and beam mills, and a larger than expected LIFO credit.  We currently expect to see first quarter 2013 earnings below our results in the fourth quarter of 2012.  This reflects our expectation of level operating performance and a reversal of LIFO from a large credit in the fourth quarter of 2012 to a small charge in the first quarter of 2013.  Construction markets are showing some small improvement but remain at historically anemic levels.  The strongest end markets continue to be manufactured goods including automotive, energy and heavy equipment.  High import levels, volatility in raw material costs and general economic uncertainty are all factors that could undermine our expectations. 

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 outlined in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2011 Annual Report on Form 10-K.  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 29, 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)

Quarter Ended December 31,

Year Ended December 31,

2012

2011

Percentage Change

2012

2011

Percentage Change

Steel mills production

4,726

4,765

-1%

19,865

19,561

2%

Steel mills total shipments

4,762

4,933

-3%

20,242

20,125

1%

Sales tons to outside customers:

Steel mills

3,993

4,132

-3%

16,825

16,796

0%

Joist

74

69

7%

291

288

1%

Deck

87

78

12%

308

312

-1%

Cold finished

104

113

-8%

492

494

0%

Fabricated concrete

reinforcing steel

265

266

-

1,180

1,074

10%

Other

955

1,025

-7%

3,996

4,080

-2%

5,478

5,683

-4%

23,092

23,044

-

 

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(In thousands, except per share data)

  Quarter Ended December 31,

Year Ended December 31,

2012

2011

2012

2011

Net sales

$    4,451,274

$    4,829,677

$  19,429,273

$  20,023,564

Costs, expenses and other:

  Cost of products sold

4,066,926

4,479,572

17,915,735

18,142,144

  Marketing, administrative and other expenses

120,861

90,046

454,900

439,528

  Equity in losses (earnings) of

unconsolidated affiliates

4,230

(4,147)

13,323

10,043

  Impairment of non-current assets

-

-

30,000

13,943

  Interest expense, net

39,347

40,151

162,375

166,094

4,231,364

4,605,622

18,576,333

18,771,752

Earnings before income taxes and

noncontrolling interests

219,910

224,055

852,940

1,251,812

Provision for income taxes

59,655

65,882

259,814

390,828

Net earnings

160,255

158,173

593,126

860,984

Earnings attributable to

noncontrolling interests

23,347

21,117

88,507

82,796

Net earnings attributable to 

Nucor stockholders

$       136,908

$       137,056

$       504,619

$       778,188

Net earnings per share:

  Basic

$0.43

$0.43

$1.58

$2.45

  Diluted

$0.43

$0.43

$1.58

$2.45

Average shares outstanding:

  Basic

318,553

317,393

318,172

316,997

  Diluted

318,613

317,464

318,240

317,161

 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) 

 (In thousands) 

Dec. 31, 2012

Dec. 31, 2011

 ASSETS 

 Current assets: 

 Cash and cash equivalents 

$    1,052,862

$    1,200,645

 Short-term investments 

104,167

1,362,641

 Accounts receivable, net 

1,707,317

1,710,773

 Inventories, net 

2,323,641

1,987,257

 Other current assets 

409,177

446,765

 Total current assets 

5,597,164

6,708,081

 Property, plant and equipment, net 

4,283,056

3,755,604

 Restricted cash and investments 

275,163

585,833

 Goodwill 

2,004,538

1,830,661

 Other intangible assets, net 

959,240

784,640

 Other assets 

968,698

905,531

 Total assets 

$  14,087,859

$  14,570,350

 LIABILITIES 

 Current liabilities: 

 Short-term debt 

$         29,912

$          1,826

 Long-term debt due within one year 

250,000

650,000

 Accounts payable 

1,046,713

958,645

 Salaries, wages and related accruals 

279,898

333,341

 Accrued expenses and other current liabilities 

423,045

452,247

 Total current liabilities 

2,029,568

2,396,059

 Long-term debt due after one year 

3,380,200

3,630,200

 Deferred credits and other liabilities 

792,717

837,511

 Total liabilities 

6,202,485

6,863,770

 EQUITY 

 Nucor stockholders' equity: 

 Common stock 

150,805

150,496

 Additional paid-in capital 

1,811,459

1,756,534

 Retained earnings 

7,124,523

7,111,566

 Accumulated other comprehensive income (loss), 

 net of income taxes 

56,761

(38,177)

 Treasury stock 

(1,501,977)

(1,505,534)

 Total Nucor stockholders' equity 

7,641,571

7,474,885

 Noncontrolling interests 

243,803

231,695

 Total equity 

7,885,374

7,706,580

 Total liabilities and equity 

$  14,087,859

$  14,570,350

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 

 (In thousands) 

Year Ended December 31,

2012

2011

Operating activities:

Net earnings 

$         593,126

$         860,984

Adjustments:

Depreciation

534,010

522,571

Amortization

73,011

67,829

Stock-based compensation

50,733

49,003

Deferred income taxes

(25,274)

58,051

Equity in losses of unconsolidated affiliates

13,323

10,043

Impairment of non-current assets

30,000

13,943

Loss on sale of assets

17,563

-

Changes in assets and liabilities (exclusive of acquisitions):

Accounts receivable

148,113

(274,920)

Inventories

(65,655)

(433,696)

Accounts payable

(111,496)

62,012

Federal income taxes

(28,022)

930

Salaries, wages and related accruals

(60,363)

129,340

Other

31,316

(35,037)

Cash provided by operating activities

1,200,385

1,031,053

Investing activities:

Capital expenditures

(947,608)

(438,943)

Investment in and advances to affiliates

(180,472)

(95,950)

Distribution from and repayment of advances to affiliates

65,446

50,000

Disposition of plant and equipment

51,063

25,333

Acquisitions (net of cash acquired)

(760,833)

(3,959)

Purchases of investments

(409,403)

(1,494,782)

Proceeds from the sale of investments

1,667,142

1,285,763

Purchases of restricted investments

-

(564,994)

Proceeds from the sale of restricted investments

359,295

47,479

Changes in restricted cash

(48,625)

530,165

Cash used in investing activities

(203,995)

(659,888)

Financing activities:

Net change in short-term debt

27,945

(11,450)

Repayment of long-term debt

(650,000)

-

Issuance of common stock

10,515

8,097

Excess tax benefits from stock-based compensation

4,700

1,000

Distributions to noncontrolling interests

(74,848)

(61,720)

Cash dividends

(466,361)

(461,518)

Other financing activities

1,172

30,569

Cash used in financing activities 

(1,146,877)

(495,022)

Effect of exchange rate changes on cash

2,704

(904)

Decrease in cash and cash equivalents

(147,783)

(124,761)

Cash and cash equivalents - beginning of year

1,200,645

1,325,406

Cash and cash equivalents - end of year

$      1,052,862

$      1,200,645

Non-cash investing activity:

Accrued plant and equipment purchases

$           71,726

$             1,559

 

SOURCE Nucor Corporation



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