2014

Nucor Reports Results For Fourth Quarter And Year Ended 2012

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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