NUCOR CORPORATION 
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 162(nd) 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) Nine Months (39 Weeks)
Ended Ended
------------------------ -----------------------
Sept. 28, Sept. 29, Percentage Sept. 28, Sept. 29, Percentage
2013 2012 Change 2013 2012 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) Nine Months (39 Weeks)
Ended 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 125,126 114,392 364,501 334,039
and other expenses
Equity in (earnings) losses
of
unconsolidated (2,252) 2,261 (2,665) 9,093
affiliates
Impairment of
non-current - - - 30,000
assets
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 248,202 191,775 553,862 633,030
interests
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
