2014

Nucor Reports Results For Third Quarter And Nine Months Of 2013

CHARLOTTE, N.C., Oct. 17, 2013 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $147.6 million, or $0.46 per diluted share, for the third quarter of 2013. By comparison, Nucor reported net earnings of $85.1 million, or $0.27 per diluted share, in the second quarter of 2013 and net earnings of $110.3 million, or $0.35 per diluted share, in the third quarter of 2012. 

In the first nine months of 2013, Nucor reported consolidated net earnings of $317.5 million, or $0.99 per diluted share, compared with consolidated net earnings of $367.7 million, or $1.15 per diluted share, in the first nine months of last year. 

Third quarter of 2013 earnings were negatively affected by 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 on September 25, 2013.  There were no injuries sustained, and there was no environmental impact. Nucor Steel Louisiana was finishing construction of its new direct reduced iron (DRI) plant on the site and preparing to begin production.  The start-up of operations will now be delayed until the end of the year.

Nucor recorded a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $18.0 million ($0.03 per diluted share) in the third quarter of 2013, compared with no charge or credit recorded in the second quarter of 2013 and a credit of $84.0 million ($0.16 per diluted share) recorded in the third quarter of 2012.  As a result, there is no LIFO charge in the first nine months of 2013, compared with a LIFO credit of $84.0 million ($0.16 per diluted share) in the first nine months of 2012.  Third quarter of 2012 earnings were also affected by non-cash inventory purchase accounting adjustments following the acquisition of Skyline Steel LLC in June of 2012 of $28.2 million ($0.06 per diluted share) and a loss on the sale of assets of Nucor Wire Products Pennsylvania, Inc. of $17.6 million ($0.04 per diluted share).

Nucor's consolidated net sales increased 6% to $4.94 billion in the third quarter of 2013 compared with $4.67 billion in the second quarter of 2013 and increased 3% compared with $4.80 billion in the third quarter of 2012. Average sales price per ton increased slightly from the second quarter of 2013 and decreased 4% from the third quarter of 2012. Total tons shipped to outside customers were 6,166,000 tons in the third quarter of 2013, a 6% increase over the second quarter of 2013 and a 7% increase over the third quarter of 2012.  Total third quarter steel mill shipments increased 6%  over  the  third  quarter  of  2012 and  increased  7%  from  the second quarter of  2013.  Third quarter downstream steel products shipments to outside customers decreased 4% from the third quarter of 2012 and increased 2% over the second quarter of 2013.

In the first nine months of 2013, Nucor's consolidated net sales decreased 5% to $14.16 billion, compared with $14.98 billion in last year's first nine months. Total tons shipped to outside customers increased 1% over the first nine months of 2012, while average sales price per ton decreased 6%.

The average scrap and scrap substitute cost per ton used in the third quarter of 2013 was $372, a decrease of 1% from $377 in the second quarter of 2013 and a decrease of 2% from $380 in the third quarter of 2012. The average scrap and scrap substitute cost per ton used in the first nine months of 2013 was $376, a decrease of 10% from $418 in the first nine months of 2012.

Overall operating rates at our steel mills in the third quarter (78%) were up from the second quarter (73%) and from last year's third quarter (71%).  Year-to-date steel mill utilization decreased from 75% in the third quarter of 2012 to 74% in the third quarter of 2013.

Our liquidity position has improved to $1.77 billion in cash and cash equivalents, short-term investments, and restricted cash at the end of the third quarter, compared with $749.2 million at the end of the second quarter.  During the third quarter, we issued $500.0 million of 4.00% notes due in 2023 and $500.0 million of 5.20% notes due in 2043.  The bond offering effectively refinanced $900.0 million of debt that matured between the fourth quarter of 2012 and the second quarter of 2013.  The weighted average interest rate of the new debt is 35 basis points lower than the retired debt, and the new debt also lengthens our debt maturity profile with its weighted average term to maturity of 20 years.  In addition, our undrawn $1.5 billion revolving credit facility has been amended and restated to extend the maturity date to August 2018.  Cash flows from operations continue to be strong and was $883.6 million through the third quarter of 2013.

In September, Nucor's board of directors declared a cash dividend of $0.3675 per share payable on November 8, 2013 to stockholders of record on September 27, 2013.  This dividend is Nucor's 162nd consecutive quarterly cash dividend, a record we expect to continue.

Our third quarter operating performance in the steel mills segment improved significantly compared with second quarter performance mainly due to better pricing for sheet steel. Sheet steel profitability improved as a result of competitor supply disruptions, customer inventory restocking and some market demand improvement. Structural steel profitability also improved due to Nucor-Yamato Steel's higher production following its 17 day planned outage during the second quarter and customer inventory restocking. It is also worth noting that our fabricated construction products businesses (rebar fabrication, joist and decking, and pre-engineered metal buildings) have had operating profits in five of the last six quarters.

Although we expect stability in metal margins, we typically experience lower shipping volumes in the fourth quarter due to seasonal factors. Additionally, we expect extended planned outages during the fourth quarter at our SBQ mill in Norfolk, Nebraska, our sheet mill in Berkeley County, South Carolina, and our structural mill in Blytheville, Arkansas in preparation for our previously announced capital expansion projects at those facilities.  As a result, we currently expect to see moderately lower earnings for the fourth quarter of 2013.    

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 third quarter results on October 17, 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)


















Three Months (13 Weeks) Ended


Nine Months (39 Weeks) Ended




Sept. 28,
2013


Sept. 29,
2012


Percentage
Change


Sept. 28,
2013


Sept. 29,
2012


Percentage
Change

Steel mills production


5,202


4,819


8%


14,912


15,139


-1%

Steel mills total shipments


5,359


5,043


6%


15,459


15,480


-















Sales tons to outside customers:












Steel mills


4,640


4,313


8%


13,248


13,352


-1%


Joist


86


78


10%


248


217


14%


Deck


90


80


13%


242


221


10%


Cold finished


113


118


-4%


359


388


-7%


Fabricated














concrete reinforcing steel


305


343


-11%


813


915


-11%


Other


932


836


11%


2,801


2,521


11%




6,166


5,768


7%


17,711


17,614


1%















 

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(In thousands, except per share data)










  Three Months (13 Weeks) Ended  


 Nine Months (39 Weeks) Ended  










Sept. 28, 2013


Sept. 29, 2012


Sept. 28, 2013


Sept. 29, 2012









Net sales

$    4,940,936


$     4,801,206


$      14,157,296


$ 14,977,999









Costs, expenses and other:








  Cost of products sold

4,532,393


4,452,473


13,132,412


13,848,809

  Marketing, administrative
     and other expenses

125,126


114,392


364,501


334,039

  Equity in (earnings) losses








of unconsolidated
affiliates

(2,252)


2,261


(2,665)


9,093

  Impairment of non-current 
     assets

-


-


-


30,000

  Interest expense, net

37,467


40,305


109,186


123,028


4,692,734


4,609,431


13,603,434


14,344,969

Earnings before income








taxes and noncontrolling
interests

248,202


191,775


553,862


633,030

Provision for income taxes

70,087


61,883


158,749


200,159

Net earnings

178,115


129,892


395,113


432,871

Earnings attributable to








noncontrolling interests

30,518


19,584


77,582


65,160

Net earnings attributable to 








Nucor stockholders

$       147,597


$        110,308


$          317,531


$      367,711









Net earnings per share:








  Basic

$0.46


$0.35


$0.99


$1.15

  Diluted

$0.46


$0.35


$0.99


$1.15









Average shares outstanding:








  Basic

319,341


318,463


318,979


318,042

  Diluted

319,526


318,520


319,132


318,113









 

 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) 

 (In thousands) 














Sept. 28, 2013


Dec. 31, 2012

 ASSETS 






 Current assets: 






 Cash and cash equivalents 


$    1,722,909


$   1,052,862


 Short-term investments 


48,476


104,167


 Accounts receivable, net 


1,918,165


1,707,317


 Inventories, net 


2,439,847


2,323,641


 Other current assets 


339,480


473,377











 Total current assets 


6,468,877


5,661,364









 Property, plant and equipment, net 


4,697,339


4,283,056









 Restricted cash and investments 


393


275,163









 Goodwill 



1,983,617


2,004,538









 Other intangible assets, net 


896,407


959,240









 Other assets 


1,045,143


968,698











 Total assets 


$  15,091,776


$ 14,152,059









 LIABILITIES 





 Current liabilities: 






 Short-term debt 


$        38,203


$       29,912


 Long-term debt due within one year 


-


250,000


 Accounts payable 


1,137,352


1,046,713


 Salaries, wages and related accruals 


288,730


279,898


 Accrued expenses and other current liabilities 


529,204


423,045











 Total current liabilities 


1,993,489


2,029,568









 Long-term debt due after one year 


4,380,200


3,380,200









 Deferred credits and other liabilities 


854,814


856,917











 Total liabilities 


7,228,503


6,266,685









 EQUITY 






 Nucor stockholders' equity: 






 Common stock 


150,968


150,805


 Additional paid-in capital 


1,841,499


1,811,459


 Retained earnings 


7,088,630


7,124,523


 Accumulated other comprehensive income, 







 net of income taxes 


22,545


56,761


 Treasury stock 


(1,498,436)


(1,501,977)



 Total Nucor stockholders' equity 


7,605,206


7,641,571









 Noncontrolling interests 


258,067


243,803











 Total equity 


7,863,273


7,885,374











 Total liabilities and equity 


$  15,091,776


$ 14,152,059









 

 

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 

 (In thousands) 
















Nine Months (39 Weeks) Ended
















Sept. 28, 2013


Sept. 29, 2012










Operating activities:







Net earnings 



$               395,113


$               432,871


Adjustments:








Depreciation



390,495


394,690



Amortization



56,051


53,518



Stock-based compensation

40,551


42,858



Deferred income taxes


10,881


(42,548)



Distributions from affiliates

7,708


-



Equity in (earnings) losses of unconsolidated affiliates

(2,665)


9,093



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


(204,540)


62,787




Inventories


(129,280)


41,662




Accounts payable


122,520


21,668




Federal income taxes


70,210


11,248




Salaries, wages and related accruals

12,796


(52,561)




Other



99,800


101,835










Cash provided by operating activities

883,640


1,124,684










Investing activities:







Capital expenditures


(887,929)


(613,777)


Investment in and advances to affiliates

(64,762)


(66,423)


Repayment of advances to affiliates

42,000


32,500


Disposition of plant and equipment

29,328


42,574


Acquisitions (net of cash acquired)

-


(763,657)


Purchases of investments


(19,349)


(409,403)


Proceeds from the sale of investments

73,428


1,341,913


Proceeds from the sale of restricted investments

148,725


209,930


Changes in restricted cash


126,045


(38,301)


Other investing



4,862


-










Cash used in investing activities


(547,652)


(264,644)










Financing activities:







Net change in short-term debt


8,331


28,983


Proceeds from long-term debt, net of discount

999,100


-


Repayment of long-term debt


(250,000)


-


Bond issuance costs


(7,625)


-


Issuance of common stock


-


10,515


Excess tax benefits from stock-based compensation

2,100


4,377


Distributions to noncontrolling interests

(63,318)


(66,562)


Cash dividends



(353,155)


(349,538)


Other financing activities


110


962










Cash provided by (used in) financing activities 

335,543


(371,263)










Effect of exchange rate changes on cash

(1,484)


3,775










Increase in cash and cash equivalents

670,047


492,552










Cash and cash equivalents - beginning of year

1,052,862


1,200,645










Cash and cash equivalents - end of nine months

$            1,722,909


$            1,693,197










Non-cash investing activity:






Change in accrued plant and equipment purchases

$               (30,416)


$                 77,764










SOURCE Nucor Corporation



RELATED LINKS
http://www.nucor.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.