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Press release from PR Newswire

Nucor Reports Results For First Quarter Of 2013

Thursday, April 18, 2013

Nucor Reports Results For First Quarter Of 2013

09:00 EDT Thursday, April 18, 2013

CHARLOTTE, N.C., April 18, 2013 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $84.8 million, or $0.26 per diluted share, for the first quarter of 2013. By comparison, Nucor reported net earnings of $145.1 million, or $0.46 per diluted share, for the first quarter of 2012 and net earnings of $136.9 million, or $0.43 per diluted share, in the fourth quarter of 2012. 

Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $18.0 million ($0.03 per diluted share) in the first quarter of 2013, compared with a charge of $14.5 million ($0.03 per diluted share) in the first quarter of 2012 and a credit of $71.9 million ($0.14 per diluted share) in the fourth quarter of 2012.  Also affecting earnings in the first quarter 2012 was 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. 

Nucor's consolidated net sales decreased 10% to $4.55 billion in the first quarter of 2013 from $5.07 billion in the first quarter of 2012 and increased 2% compared with $4.45 billion in the fourth quarter of 2012.  Average sales price per ton decreased 7% from the first quarter of 2012 and decreased 2% from the fourth quarter of 2012. Total tons shipped to outside customers were 5,706,000 tons in the first quarter of 2013, a 4% decrease from the first quarter of 2012 and a 4% increase over the fourth quarter of 2012. 

The average scrap and scrap substitute cost per ton used during the first quarter of 2013 was $379, a decrease of 15% from $445 in the first quarter of 2012 and an increase of 2% compared to $372 in the fourth quarter of 2012.    

Overall operating rates at our steel mills decreased to 72% in the first quarter of 2013 as compared to 79% in the first quarter of 2012, but increased from 71% in the fourth quarter of 2012.

Total energy costs in the first quarter of 2013 increased approximately $1 per ton compared to the first quarter of 2012 attributable mainly to the increased cost of electricity due to lower production volumes and increased unit costs.  Energy costs decreased approximately $1 per ton from the fourth quarter of 2012 due mainly to decreased natural gas costs.

Construction is progressing on our 2,500,000-ton DRI facility in Louisiana.  Due to extreme weather conditions in the first quarter, we now expect to start up late in the third quarter of 2013.

Our liquidity position remains strong with $1.08 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 $0.3675 per share payable on May 10, 2013 to stockholders of record on March 28, 2013.  This dividend is Nucor's 160th consecutive quarterly cash dividend, a record we expect to continue.

Metal margins at our steel mills for the first quarter remained flat compared with the fourth quarter of 2012.  Overall, our steel mills have not experienced the seasonal improvement in volume and pricing that is typical in the first quarter of the year.  As expected, our downstream steel products segment experienced a seasonal slowdown in the first quarter, and that segment reported a modest loss following three straight quarters of profitable operating performance.  Our raw materials segment also reported weaker results due to an unplanned 18 day outage at our Trinidad DRI facility and weather-related effects negatively impacting the flow of scrap in our scrap processing business. 

For the second quarter of 2013, we currently expect to see some improvement in earnings driven by better performance at our fabricated construction products businesses (rebar fabrication, joist and decking and pre-engineered metal buildings), raw materials businesses and most steel mill product groups, partially offset by weaker performance in sheet steel.  Import levels and general economic and political uncertainty continue to negatively affect our business.  We continue to be cautiously optimistic about non-residential construction markets in 2013 as they continue to improve slowly from historically low levels.  The strongest end markets continue to be in manufactured goods including energy and automotive. 

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 first quarter results on April 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 

March 30, 2013

March 31, 2012

PercentageChange

Steel mills production

4,818

5,259

-8%

Steel mills total shipments

5,075

5,235

-3%

Sales tons to outside customers:

Steel mills

4,277

4,424

-3%

Joist

71

64

11%

Deck

69

65

6%

Cold finished

122

138

-12%

Fabricated concrete

reinforcing steel

228

250

-9%

Other

939

980

-4%

5,706

5,921

-4%

Unaudited figures are as follows:

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(In thousands, except per share data)

  Three Months (13 Weeks) Ended  

March 30, 2013

March 31, 2012

Net sales

$     4,550,772

$     5,072,594

Costs, expenses and other:

  Cost of products sold

4,247,556

4,692,067

  Marketing, administrative and other expenses

116,225

107,119

  Equity in losses of unconsolidated affiliates

1,172

6,674

  Interest expense, net

32,491

41,672

4,397,444

4,847,532

Earnings before income taxes and

noncontrolling interests

153,328

225,062

Provision for income taxes

42,600

61,650

Net earnings

110,728

163,412

Earnings attributable to

noncontrolling interests

25,939

18,308

Net earnings attributable to 

Nucor stockholders

$          84,789

$        145,104

Net earnings per share:

  Basic

$0.26

$0.46

  Diluted

$0.26

$0.46

Average shares outstanding:

  Basic

318,686

317,689

  Diluted

318,842

317,779

 

 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) 

 (In thousands) 

March 30, 2013

Dec. 31, 2012

 ASSETS 

 Current assets: 

 Cash and cash equivalents 

$        902,700

$   1,052,862

 Short-term investments 

29,503

104,167

 Accounts receivable, net 

1,791,321

1,707,317

 Inventories, net 

2,381,648

2,323,641

 Other current assets 

441,569

473,377

 Total current assets 

5,546,741

5,661,364

 Property, plant and equipment, net 

4,450,945

4,283,056

 Restricted cash and investments 

146,573

275,163

 Goodwill 

1,990,903

2,004,538

 Other intangible assets, net 

934,395

959,240

 Other assets 

969,453

968,698

 Total assets 

$    14,039,010

$ 14,152,059

 LIABILITIES 

 Current liabilities: 

 Short-term debt 

$          42,384

$       29,912

 Long-term debt due within one year 

250,000

250,000

 Accounts payable 

1,021,076

1,046,713

 Salaries, wages and related accruals 

202,041

279,898

 Accrued expenses and other current liabilities 

471,486

423,045

 Total current liabilities 

1,986,987

2,029,568

 Long-term debt due after one year 

3,380,200

3,380,200

 Deferred credits and other liabilities 

869,580

856,917

 Total liabilities 

6,236,767

6,266,685

 EQUITY 

 Nucor stockholders' equity: 

 Common stock 

150,807

150,805

 Additional paid-in capital 

1,817,429

1,811,459

 Retained earnings 

7,091,645

7,124,523

 Accumulated other comprehensive income, 

 net of income taxes 

6,248

56,761

 Treasury stock 

(1,499,033)

(1,501,977)

 Total Nucor stockholders' equity 

7,567,096

7,641,571

 Noncontrolling interests 

235,147

243,803

 Total equity 

7,802,243

7,885,374

 Total liabilities and equity 

$    14,039,010

$ 14,152,059

 

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 

 (In thousands) 

Three Months (13 Weeks) Ended

March 30, 2013

March 31, 2012

Operating activities:

Net earnings 

$         110,728

$         163,412

Adjustments:

Depreciation

130,425

131,338

Amortization

19,048

16,584

Stock-based compensation

6,035

6,835

Deferred income taxes

11,183

(21,897)

Distribution from affiliates

6,708

-

Equity in losses of unconsolidated affiliates

1,172

6,674

Changes in assets and liabilities (exclusive of acquisitions):

Accounts receivable

(90,688)

(74,627)

Inventories

(63,222)

(263,153)

Accounts payable

(175)

222,847

Federal income taxes

11,654

73,281

Salaries, wages and related accruals

(74,206)

(119,116)

Other

60,149

59,641

Cash provided by operating activities

128,811

201,819

Investing activities:

Capital expenditures

(330,585)

(161,497)

Investment in and advances to affiliates

(20,678)

(38,441)

Repayment of advances to affiliates

7,500

-

Disposition of plant and equipment

2,958

7,953

Acquisitions (net of cash acquired)

-

(58,848)

Purchases of investments

-

(185,073)

Proceeds from the sale of investments

73,428

349,729

Proceeds from the sale of restricted investments

148,725

38,350

Changes in restricted cash

(20,135)

(38,707)

Cash used in investing activities

(138,787)

(86,534)

Financing activities:

Net change in short-term debt

12,512

6,158

Issuance of common stock

-

5,876

Excess tax benefits from stock-based compensation

500

5,200

Distributions to noncontrolling interests

(34,594)

(39,857)

Cash dividends

(117,618)

(116,325)

Other financing activities

109

357

Cash used in financing activities 

(139,091)

(138,591)

Effect of exchange rate changes on cash

(1,095)

2,475

Decrease in cash and cash equivalents

(150,162)

(20,831)

Cash and cash equivalents - beginning of year

1,052,862

1,200,645

Cash and cash equivalents - end of three months

$         902,700

$       1,179,814

Non-cash investing activity:

Change in accrued plant and equipment purchases

$          (24,590)

$              5,832

 

SOURCE Nucor Corporation

For further information: Nucor Executive Offices, Phone 704-366-7000, Fax 704-362-4208

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