Nucor Reports Results For First Quarter Of 2012

CHARLOTTE, N.C., April 19, 2012 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $145.1 million, or $0.46 per diluted share, for the first quarter of 2012. By comparison, Nucor reported net earnings of $159.8 million, or $0.50 per diluted share, for the first quarter of 2011 and net earnings of $137.1 million, or $0.43 per diluted share, in the fourth quarter of 2011. Diluted earnings per share of $0.46 for the first quarter are greater than our guidance range of $0.30 to $0.35 per share due primarily to actual March shipments to outside customers in the steel mills segment exceeding the expectations included in our earnings guidance.

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 2012, compared with a charge of $31.0 million ($0.06 per diluted share) in the first quarter of 2011 and a charge of $51.8 million ($0.11 per diluted share) in the fourth quarter of 2011.

Nucor's consolidated net sales increased 5% to $5.07 billion compared with $4.83 billion in the first quarter of 2011 due to a 6% increase in average sales price per ton partially offset by a 1% decrease in total tons shipped to outside customers.  Consolidated net sales increased 5% compared with $4.83 billion in the fourth quarter of 2011 due to a 1% increase in average sales price per ton and a 4% increase in total tons shipped to outside customers. First quarter downstream steel products shipments to outside customers increased 3% over the first quarter of 2011 and decreased 3% from the fourth quarter of 2011.

The average scrap and scrap substitute cost per ton used during the first quarter of 2012 was $445, an increase of 5% over $424 in the first quarter of 2011 and an increase of 1% compared to $441 in the fourth quarter of 2011.    

The first quarter 2012 results were impacted by a non-cash gain of $12.6 million ($0.04 per diluted share) related to the recognition of state tax credits and the adjustment of tax expense to previously filed returns.  These out-of-period items did not have a material impact on the current or any previously reported periods. 

Overall operating rates at our steel mills remained relatively flat at approximately 79% in the first quarter of 2012 as compared to 80% in the first quarter of 2011, but increased from 71% in the fourth quarter of 2011.

Total energy costs in the first quarter of 2012 decreased approximately $2 per ton compared to both the first and fourth quarters of 2011.  The decrease was due mainly to decreased unit costs for natural gas.

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

During the first quarter of 2012, the David J. Joseph Company ("DJJ"), through its wholly owned subsidiaries, acquired three metal recycling companies that will strengthen and expand its regional recycling platforms.  These acquisitions will provide an estimated additional annual capacity of 275,000 tons.

Our liquidity position remains strong with $2.96 billion in cash and cash equivalents, short-term investments, and restricted cash and investments, and an untapped $1.5 billion revolving credit facility that matures in December 2016.

In February, Nucor's board declared a cash dividend of $0.365 per share payable on May 11, 2012 to stockholders of record on March 30, 2012.  This dividend is Nucor's 156th consecutive quarterly cash dividend, a record we expect to continue.

First quarter diluted earnings per share of $0.46 exceeded our quantitative guidance of between $0.30 and $0.35 per diluted share, and was an improvement on fourth quarter 2011 earnings of $0.43 per share.  Our results for the first quarter of 2012 reflect a flattening in the favorable pricing and margin trends that began mid-quarter and an unexpected margin weakness in our raw materials business.  The deterioration in steel mill pricing and margin trends as compared to our earlier expectations is due to a resurgence in imports and increased competition from new and restarted domestic sheet mill supply.  For the second quarter of 2012, we currently expect to see only a modest improvement in earnings.  Construction markets remain very challenging, with evidence of only slight improvements at this time.  End markets such as automotive, heavy equipment, energy and general manufacturing have continued to experience improvements in demand, primarily benefitting special bar quality, sheet and plate products.

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 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 first quarter results on April 19, 2012 at 2:00 p.m. eastern time.  The conference call will be available over the Internet at www.nucor.com, under Investor Relations.  

Unaudited figures are as follows:  

SOURCE Nucor Corporation