-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, D3xnT48ludLu7IL9CyepujvhppDV6WdVtYKRbtDwJMxIq+lRnd2W7846Y3NW72li wQ8ONAcA6cmYtITH4dmYEw== 0000950168-98-003455.txt : 19981111 0000950168-98-003455.hdr.sgml : 19981111 ACCESSION NUMBER: 0000950168-98-003455 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981003 FILED AS OF DATE: 19981110 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUCOR CORP CENTRAL INDEX KEY: 0000073309 STANDARD INDUSTRIAL CLASSIFICATION: STEEL WORKS, BLAST FURNACES ROLLING MILLS (COKE OVENS) [3312] IRS NUMBER: 131860817 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-04119 FILM NUMBER: 98742908 BUSINESS ADDRESS: STREET 1: 2100 REXFORD RD CITY: CHARLOTTE STATE: NC ZIP: 28211 BUSINESS PHONE: 7043667000 MAIL ADDRESS: STREET 1: 2100 REXFORD ROAD CITY: CHARLOTTE STATE: NC ZIP: 28211 FORMER COMPANY: FORMER CONFORMED NAME: NUCLEAR CORP OF AMERICA INC DATE OF NAME CHANGE: 19680911 FORMER COMPANY: FORMER CONFORMED NAME: AZTEC MECHANICAL CONTRACTORS INC DATE OF NAME CHANGE: 19660629 10-Q 1 NUCOR 10-Q THIRD ----- QUARTER ------- 1998 ---- SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarter ended October 3, 1998 Commission file number 1-4119 -------------------- -------- NUCOR CORPORATION - -------------------------------------------------------------------------------- (Exact name as specified in charter) Delaware 13-1860817 - -------------------------------------------- --------------------------- (State or other jurisdiction of (I.R.S. employer incorporation or organization) identification no.) 2100 Rexford Road, Charlotte, North Carolina 28211 - -------------------------------------------- --------------------------- (Address of principal executive offices) (Zip code) Telephone number, including area code: (704) 366-7000 --------------------------- Indication by check mark whether Nucor Corporation (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months, and (2) has been subject to such filing requirements for the past 90 days: Yes X No ------ ------ 87,572,645 shares of common stock were outstanding at October 3, 1998. - 1 - PART I - FINANCIAL INFORMATION ------------------------------ Nucor Corporation - Consolidated Condensed Statements of Earnings - -----------------------------------------------------------------
Nine Months (39 Weeks) Ended Three Months (13 Weeks) Ended ---------------------------- ----------------------------- Oct. 3, 1998 Oct. 4, 1997 Oct. 3, 1998 Oct. 4, 1997 ------------ ------------ ------------ ------------ (Unaudited) (Unaudited) (Unaudited) (Unaudited) ----------- ----------- ----------- ----------- Net sales................... $3,278,173,618 $3,147,201,389 $1,010,961,380 $1,101,620,966 -------------- -------------- -------------- -------------- Costs and expenses: Cost of products sold..... 2,845,263,175 2,692,579,797 869,452,694 936,249,493 Marketing, administrative and other expenses...... 119,581,871 112,776,041 40,632,470 40,541,814 Interest expense (income). (3,060,864) 1,254,821 (949,697) (154,665) -------------- ------------- ------------- -------------- 2,961,784,182 2,806,610,659 909,135,467 976,636,642 -------------- ------------- ------------- -------------- Earnings before federal income taxes...... 316,389,436 340,590,730 101,825,913 124,984,324 Federal income taxes...... 113,900,000 122,600,000 36,700,000 45,000,000 -------------- ------------- ------------- -------------- Net earnings............ $ 202,489,436 $ 217,990,730 $ 65,125,913 $ 79,984,324 ============== ============= ============= ============= Net earnings per share...... $2.30 $2.48 $.74 $.91 ===== ===== ==== ==== Dividends declared per share............... $.36 $.30 $.12 $.10 ==== ==== ==== ==== Average number of shares outstanding.... 88,000,181 87,860,682 87,914,877 87,894,245
The information furnished reflects all adjustments that are, in the opinion of management, necessary to a fair statement of the results for the interim periods. The information furnished has not been audited and is subject to year-end adjustments. - 2 - Nucor Corporation - Consolidated Condensed Balance Sheets - ---------------------------------------------------------
Oct. 3, December 31, 1998 1997 -------------- -------------- Assets (Unaudited) (Audited) - ------ ----------- --------- Current assets: Cash and short-term investments................. $ 274,283,065 $ 283,381,137 Accounts receivable............................. 319,189,974 386,352,612 Inventories..................................... 492,135,716 397,048,379 Other current assets............................ 59,954,856 58,726,336 -------------- -------------- Total current assets.......................... 1,145,563,611 1,125,508,464 -------------- -------------- Property, plant and equipment..................... 2,054,985,913 1,858,874,894 -------------- -------------- Total assets.................................. $3,200,549,524 $2,984,383,358 ============== ============== Liabilities and stockholders' equity - ------------------------------------ Current liabilities: Long-term debt due within one year.............. $ -- $ 250,000 Accounts payable................................ 231,448,905 260,268,115 Salaries, wages and related accruals............ 134,316,703 110,730,654 Federal income taxes............................ 19,499,331 9,988,843 Accrued expenses and other current liabilities.. 165,186,585 143,215,998 -------------- -------------- Total current liabilities..................... 550,451,524 524,453,610 -------------- -------------- Long-term debt due after one year................. 215,450,000 167,950,000 -------------- -------------- Deferred credits and other liabilities............ 141,361,449 139,361,449 -------------- -------------- Minority interests................................ 262,347,909 276,192,433 -------------- -------------- Stockholders' equity: Common stock.................................... 36,020,714 35,994,843 Additional paid-in capital...................... 65,407,997 62,041,288 Retained earnings............................... 1,966,118,705 1,795,276,453 -------------- -------------- 2,067,547,416 1,893,312,584 Treasury stock.................................. (36,608,774) (16,886,718) -------------- -------------- 2,030,938,642 1,876,425,866 -------------- -------------- Total liabilities and stockholders' equity.... $3,200,549,524 $2,984,383,358 ============== ==============
Inventories consisted of approximately 60% raw materials and supplies, and 40% finished and semi-finished products, at October 3, 1998 (60% and 40% at December 31, 1997). Inventories valued on the last-in, first-out (LIFO) method of accounting represent approximately 90% of total inventories at October 3, 1998 (90% at December 31, 1997). If the first-in, first-out (FIFO) method of accounting had been used, inventories would have been $92,855,518 higher at October 3, 1998 ($100,575,518 at December 31, 1997). The information furnished has not been audited and is subject to year-end adjustments. - 3 - Nucor Corporation - Consolidated Condensed Statements of Cash Flows - -------------------------------------------------------------------
Nine Months (39 Weeks) Ended ---------------------------- Oct. 3, 1998 Oct. 4, 1997 ------------ ------------ (Unaudited) (Unaudited) ----------- ----------- Operating activities: Net earnings............................................ $202,489,436 $217,990,730 Adjustments: Depreciation of plant and equipment................... 178,455,588 159,434,445 Minority interests.................................... 71,838,035 63,907,106 Changes in: Current assets...................................... (29,153,219) (80,079,224) Current liabilities................................. 26,247,914 106,180,076 Other............................................... (9,173,379) 15,018,852 ------------ ------------ Cash provided by operating activities................. 440,704,375 482,451,985 ------------ ------------ Investing activities: Capital expenditures (net).............................. (363,393,228) (223,889,313) ------------ ------------ Cash used in investing activities..................... (363,393,228) (223,889,313) ------------ ------------ Financing activities: Increase in long-term debt.............................. 47,250,000 14,850,000 Distributions to minority interests..................... (85,682,559) (70,538,065) Issuance of common stock................................ 3,516,586 3,241,450 Acquisition of treasury stock........................... (19,846,062) -- Cash dividends.......................................... (31,647,184) (26,363,513) ------------ ------------ Cash used in financing activities..................... (86,409,219) (78,810,128) ------------ ------------ Increase (decrease) in cash and short-term investments.... $ (9,098,072) $179,752,544 ============ ============
The information furnished has not been audited and is subject to year-end adjustments. - 4 - Nucor Corporation - Analysis of Operations and Finances - ------------------------------------------------------- Operations - ---------- Net sales decreased by about 8% from the third quarter of 1997 to the third quarter of 1998, with substantially all of the net sales decrease resulting from a decrease in sales volume. Net sales increased close to 4% from the first nine months of 1997 to the first nine months of 1998, primarily as a result of an increase in sales volume. Average sales prices were basically unchanged in both the third quarter of 1998 compared with the third quarter of 1997, and the first nine months of 1998 compared with the first nine months of 1997. The major component of cost of products sold is raw material costs. The average price of raw materials decreased close to 2% from the third quarter of 1997 to the third quarter of 1998, and increased about 2% from the first nine months of 1997 to the first nine months of 1998. Major components of marketing, administrative and other expenses are freight and profit sharing costs. Unit freight costs increased about 2% from the third quarter of 1997 to the third quarter of 1998, and were unchanged from the first nine months of 1997 to the first nine months of 1998. Profit sharing costs decreased about 22% from the third quarter of 1997 to the third quarter of 1998, and decreased about 10% from the first nine months of 1997 to the first nine months of 1998. Profit sharing costs are based upon and generally fluctuate with pre-tax earnings. Interest income, net of interest expense, increased for the third quarter and first nine months of 1998 from the third quarter and first nine months of 1997, due primarily to increased earnings from short-term investments. Federal income taxes were at a rate of about 36% for the third quarter and first nine months of 1998, and the third quarter and first nine months of 1997. Net earnings decreased from the third quarter of 1997 to the third quarter of 1998 primarily due to decreased volume and increased pre-operating and start-up costs of new facilities, and decreased from the first nine months of 1997 to the first nine months of 1998 due to decreased margins. Margins were about 14% for the third quarter of 1998 and about 13% for the first nine months of 1998, compared with about 15% for the third quarter of 1997 and about 14% for the first nine months of 1997. Liquidity and capital resources - ------------------------------- The current ratio was about 2.1 at both the end of the first nine months of 1998 and at year-end 1997. The percentage of long-term debt to total capital was close to 9% at the end of the first nine months of 1998, and about 7% at year-end 1997. Capital expenditures increased close to 63% during the first nine months of 1998, compared with the first nine months of 1997. Capital expenditures are projected to be more than $400 million for all of 1998. Funds provided from operations, existing credit facilities, and new long-term debt are expected to be more than adequate to meet future capital expenditure and working capital requirements. - 5 - Year 2000 - --------- Nucor has implemented a Year 2000 readiness program designed to have all significant business and manufacturing systems functioning properly with respect to the Year 2000 issue. Affected systems are being replaced or remediated, with testing performed concurrently. Nucor is also reviewing the progress of critical vendors and customers in addressing the Year 2000 issue. Failure to correct a material Year 2000 issue could result in an interruption of normal business operations. PART II - OTHER INFORMATION --------------------------- Item 6 - Exhibits and Reports on Form 8-K Exhibit 11 - Computation of net earnings per share. - ---------------- Reports on Form 8-K - None filed for the quarter. - ---------------- Exhibit 11 - Computation of net earnings per share - --------------------------------------------------
Nine Months (39 Weeks) Ended Three Months (13 Weeks) Ended ---------------------------- ----------------------------- Oct. 3, 1998 Oct. 4, 1997 Oct. 3, 1998 Oct. 4, 1997 ------------ ------------ ------------ ------------ (Unaudited) (Unaudited) (Unaudited) (Unaudited) ----------- ----------- ----------- ----------- Basic: Basic net earnings............. $202,489,436 $217,990,730 $65,125,913 $79,984,324 ============ ============ =========== =========== Average shares outstanding..... 88,000,181 87,860,682 87,914,877 87,894,245 ========== ========== ========== ========== Basic net earnings per share... $2.3010 $2.4811 $.7408 $.9100 ======= ======= ====== ====== Diluted: Diluted net earnings........... $202,489,436 $217,990,730 $65,125,913 $79,984,324 ============ ============ =========== =========== Diluted average shares outstanding: Basic shares outstanding..... 88,000,181 87,860,682 87,914,877 87,894,245 Dilutive effect of employee stock options..... 17,633 61,626 9,643 78,475 ---------- ---------- ---------- ---------- 88,017,814 87,922,308 87,924,520 87,972,720 ========== ========== ========== ========== Diluted net earnings per share. $2.3006 $2.4794 $.7407 $.9092 ======= ======= ====== ======
The information furnished has not been audited and is subject to year-end adjustments. - 6 - SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, Nucor Corporation has duly caused this report to be signed on its behalf by the undersigned, who is (1) a duly authorized officer, and (2) the principal financial officer. NUCOR CORPORATION By: /s/ SAMUEL SIEGEL ---------------------------- Samuel Siegel Vice Chairman, Dated: November 11, 1998 Chief Financial Officer - 7 - EX-27 2 ART. 5 FDS FOR 3RD QUARTER 10-Q
5 9-MOS DEC-31-1998 OCT-03-1998 274,283,065 0 319,189,974 20,298,532 492,135,716 1,145,563,611 3,331,017,414 1,276,031,501 3,200,549,524 550,451,524 215,450,000 36,020,714 0 0 1,994,917,928 3,200,549,524 3,278,173,618 3,278,173,618 2,845,263,175 2,845,263,175 119,581,871 0 (3,060,864) 316,389,436 113,900,000 202,489,436 0 0 0 202,489,436 2.30 2.30
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