Nucor Corporation

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Press Release $NUE Nucor Corporation

0 COMMENTs 18 Jul
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Nucor Reports Results For Second Quarter And First Half Of 2013

CHARLOTTE, N.C., July 18, 2013 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $85.1 million, or $0.27 per diluted share, for the second quarter of 2013. By comparison, Nucor reported net earnings of $84.8 million, or $0.26 per diluted share, in the first quarter of 2013 and net earnings of $112.3 million, or $0.35 per diluted share, in the second quarter of 2012. 

In the first half of 2013, Nucor reported consolidated net earnings of $169.9 million, or $0.53 per diluted share, compared with consolidated net earnings of $257.4 million, or $0.81 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 2013, compared with a charge of $18.0 million ($0.03 per diluted share) recorded in the first quarter of 2013 and a credit of $14.5 million ($0.03 per diluted share) recorded in the second quarter of 2012.  As a result, the LIFO charge in the first half of 2013 was $18.0 million ($0.03 per diluted share), compared with no LIFO charge in the first half of 2012.  Second quarter of 2012 earnings were also affected by non-cash purchase accounting adjustments related to the Skyline acquisition and the elimination of profit associated with our steel mills' sales to Skyline post-acquisition of $8.5 million ($0.02 per diluted share) and a non-cash impairment charge related to our Duferdofin Nucor S.r.l. joint venture of $30.0 million ($0.09 per diluted share).

Nucor's consolidated net sales increased 3% to $4.67 billion in the second quarter of 2013 compared with $4.55 billion in the first quarter of 2013 and decreased 8% compared with $5.10 billion in the second quarter of 2012. Average sales price per ton increased slightly from the first quarter of 2013 and decreased 7% from the second quarter of 2012. Total tons shipped to outside customers were 5,839,000 tons in the second quarter of 2013, a 2% increase over the first quarter of 2013 and a decrease of 1% from the second quarter of 2012.  Total second quarter steel mill shipments decreased 3%  from  the  second  quarter  of  2012 and  were  down  1%  from  the  first  quarter of  2013.  Second quarter downstream steel products shipments to outside customers decreased 4% from the second quarter of 2012 and increased 19% over the first quarter of 2013.

In the first half of 2013, Nucor's consolidated net sales decreased 9% to $9.22 billion, compared with $10.18 billion in last year's first half. Total tons shipped to outside customers decreased 3% from the first half of 2012, while average sales price per ton decreased 7%.

The average scrap and scrap substitute cost per ton used in the second quarter of 2013 was $377, a slight decrease from $379 in the first quarter of 2013 and a decrease of 12% from $427 in the second quarter of 2012. The average scrap and scrap substitute cost per ton used in the first half of 2013 was $378, a decrease of 13% from $436 in the first half of 2012.

Overall operating rates at our steel mills in the second quarter (73%) were up slightly from the first quarter (72%) and decreased from last year's second quarter (76%).  Steel mill utilization decreased from 77% in the first half of 2012 to 73% in the first half of 2013.  

Construction is nearing completion on our 2,500,000-ton DRI facility in Louisiana. We are on schedule for completion of construction and beginning of start-up late in the third quarter of 2013.  

Our liquidity position remains solid with $749.2 million in cash and cash equivalents, short-term investments, and restricted cash and an untapped $1.5 billion revolving credit facility that does not expire until December 2016.  In addition, cash flow from operations continues to be strong and was $485.0 million through the second quarter of 2013.

In June, Nucor's board of directors declared a cash dividend of $0.3675 per share payable on August 9, 2013 to stockholders of record on June 28, 2013.  This dividend is Nucor's 161st consecutive quarterly cash dividend, a record we expect to continue.

Our second quarter operating performance in the steel mills segment was down compared with first quarter performance due mainly to weakness in sheet steel.  Our steel products businesses have seen improvements from last quarter across the board, including joists and deck, building systems and rebar fabrication products.  The steel products segment as a whole returned to solid profitability in the second quarter after a modest loss in the first quarter of 2013.  We also saw significant improvement in our raw materials segment over the first quarter of 2013, due mainly to improved performance from our Trinidad DRI facility that experienced an unplanned 18 day outage last quarter.   

We currently expect to see a modest improvement in earnings for the third quarter of 2013.  We expect to see improvements in sheet steel pricing, which dropped to its lowest level since November 2010 in June but has since begun to slowly rebound.  Margins on sheet steel have followed a similar trend and are slowly recovering from lows in the second quarter.  The automotive and energy markets remain strong, while the construction market remains challenged.  We also expect to see increased earnings from our downstream businesses in the third quarter, continuing the upward trend observed in the second quarter.  Our David J. Joseph operations are expected to benefit from the bottoming of scrap pricing in the second quarter.

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 second quarter results on July 18, 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 


 Six Months (26 Weeks) Ended 




June 29, 2013


June 30, 2012


Percentage Change


June 29, 2013


June 30, 2012


Percentage Change

Steel mills production


4,892


5,061


-3%


9,710


10,320


-6%

Steel mills total shipments


5,025


5,202


-3%


10,100


10,437


-3%















Sales tons to outside customers:












Steel mills


4,274


4,449


-4%


8,608


9,039


-5%


Joist


91


75


21%


162


139


17%


Deck


83


76


9%


152


141


8%


Cold finished


124


132


-6%


246


270


-9%


Fabricated concrete














reinforcing steel


280


322


-13%


508


572


-11%


Other


987


871


13%


1,869


1,685


11%




5,839


5,925


-1%


11,545


11,846


-3%















 

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(In thousands, except per share data)










  Three Months (13 Weeks) Ended  


  Six Months (26 Weeks) Ended  










June 29, 2013


June 30, 2012


June 29, 2013


June 30, 2012









Net sales

$     4,665,588


$     5,104,199


$        9,216,360


$ 10,176,793









Costs, expenses and other:








  Cost of products sold

4,352,463


4,704,269


8,600,019


9,396,336

  Marketing, administrative and other expenses

123,150


112,528


239,375


219,647

  Equity in (earnings) losses of








unconsolidated affiliates

(1,585)


158


(413)


6,832

  Impairment of non-current assets

-


30,000


-


30,000

  Interest expense, net

39,228


41,051


71,719


82,723


4,513,256


4,888,006


8,910,700


9,735,538

Earnings before income taxes and








noncontrolling interests

152,332


216,193


305,660


441,255

Provision for income taxes

46,062


76,626


88,662


138,276

Net earnings

106,270


139,567


216,998


302,979

Earnings attributable to








noncontrolling interests

21,125


27,268


47,064


45,576

Net earnings attributable to 








Nucor stockholders

$          85,145


$        112,299


$          169,934


$      257,403









Net earnings per share:








  Basic

$0.27


$0.35


$0.53


$0.81

  Diluted

$0.27


$0.35


$0.53


$0.81









Average shares outstanding:








  Basic

318,903


317,975


318,796


317,832

  Diluted

319,023


318,040


318,934


317,910

 

 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) 

 (In thousands) 














June 29, 2013


Dec. 31, 2012

 ASSETS 






 Current assets: 






 Cash and cash equivalents 


$      630,467


$   1,052,862


 Short-term investments 


47,656


104,167


 Accounts receivable, net 


1,767,177


1,707,317


 Inventories, net 


2,279,744


2,323,641


 Other current assets 


458,119


473,377











 Total current assets 


5,183,163


5,661,364









 Property, plant and equipment, net 


4,608,997


4,283,056









 Restricted cash and investments 


71,083


275,163









 Goodwill 



1,983,107


2,004,538









 Other intangible assets, net 


912,708


959,240









 Other assets 


1,007,593


968,698











 Total assets 


$  13,766,651


$ 14,152,059









 LIABILITIES 





 Current liabilities: 






 Short-term debt 


$        31,668


$       29,912


 Long-term debt due within one year 


-


250,000


 Accounts payable 


979,220


1,046,713


 Salaries, wages and related accruals 


240,629


279,898


 Accrued expenses and other current liabilities 


489,059


423,045











 Total current liabilities 


1,740,576


2,029,568









 Long-term debt due after one year 


3,380,200


3,380,200









 Deferred credits and other liabilities 


874,645


856,917











 Total liabilities 


5,995,421


6,266,685









 EQUITY 






 Nucor stockholders' equity: 






 Common stock 


150,962


150,805


 Additional paid-in capital 


1,835,746


1,811,459


 Retained earnings 


7,058,911


7,124,523


 Accumulated other comprehensive (loss) income, 







 net of income taxes 


(9,334)


56,761


 Treasury stock 


(1,498,656)


(1,501,977)



 Total Nucor stockholders' equity 


7,537,629


7,641,571









 Noncontrolling interests 


233,601


243,803











 Total equity 


7,771,230


7,885,374











 Total liabilities and equity 


$  13,766,651


$ 14,152,059









 

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 

 (In thousands) 
















Six Months (26 Weeks) Ended
















June 29, 2013


June 30, 2012










Operating activities:







Net earnings 



$               216,998


$               302,979


Adjustments:








Depreciation



258,390


260,968



Amortization



37,575


33,122



Stock-based compensation

34,043


37,312



Deferred income taxes


12,304


(23,144)



Equity in (earnings) losses of unconsolidated affiliates

(413)


6,832



Distributions from affiliates

7,708


-



Impairment of non-current assets

-


30,000



Changes in assets and liabilities (exclusive of






     acquisitions and dispositions):







Accounts receivable


(70,785)


(76,245)




Inventories


36,087


(152,494)




Accounts payable


(44,724)


42,394




Federal income taxes


3,709


3,364




Salaries, wages and related accruals

(35,332)


(82,991)




Other



29,414


64,389










Cash provided by operating activities

484,974


446,486










Investing activities:







Capital expenditures


(621,306)


(383,448)


Investment in and advances to affiliates

(43,485)


(57,771)


Repayment of advances to affiliates

30,500


15,000


Disposition of plant and equipment

10,145


21,026


Acquisitions (net of cash acquired)

-


(746,410)


Purchases of investments


(19,390)


(409,403)


Proceeds from the sale of investments

73,428


1,200,153


Proceeds from the sale of restricted investments

148,725


87,115


Changes in restricted cash


55,355


7,078










Cash used in investing activities


(366,028)


(266,660)










Financing activities:







Net change in short-term debt


1,796


5,234


Repayment of long-term debt


(250,000)


-


Issuance of common stock


-


6,156


Excess tax benefits from stock-based compensation

1,700


3,877


Distributions to noncontrolling interests

(57,266)


(52,812)


Cash dividends



(235,280)


(232,766)


Other financing activities


109


670










Cash used in financing activities 


(538,941)


(269,641)










Effect of exchange rate changes on cash

(2,400)


1,159










Decrease in cash and cash equivalents

(422,395)


(88,656)










Cash and cash equivalents - beginning of year

1,052,862


1,200,645










Cash and cash equivalents - end of six months

$               630,467


$            1,111,989










Non-cash investing activity:






Change in accrued plant and equipment purchases

$               (20,537)


$                           -










SOURCE Nucor Corporation

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