-----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, E2qJOlHrE0JQ0rNNamettkWMhHNM8cxJ5PmJ1azwhXhTEl2NAwmH9A1jM1shsryg 6BnRxbkFFhXg84AQJtZZ6Q== 0000950168-99-001469.txt : 19990512 0000950168-99-001469.hdr.sgml : 19990512 ACCESSION NUMBER: 0000950168-99-001469 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990403 FILED AS OF DATE: 19990511 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: 99616611 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 CORPORATION 10-Q FIRST QUARTER 1999 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 APRIL 3, 1999 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 [ ] 87,261,331 SHARES OF COMMON STOCK WERE OUTSTANDING AT APRIL 3, 1999. -1- PART I - FINANCIAL INFORMATION NUCOR CORPORATION - CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS THREE MONTHS (13 WEEKS) ENDED ----------------------------- APRIL 3, 1999 APRIL 4, 1998 ------------- ------------- (UNAUDITED) (UNAUDITED) NET SALES....................................... $893,822,996 $1,138,862,155 ------------ -------------- COSTS AND EXPENSES: COST OF PRODUCTS SOLD......................... 818,906,709 999,505,973 MARKETING, ADMINISTRATIVE AND OTHER EXPENSES.. 31,386,532 38,867,752 INTEREST EXPENSE (INCOME)..................... (443,637) (1,349,083) ------------ -------------- 849,849,604 1,037,024,642 ------------ -------------- EARNINGS BEFORE FEDERAL INCOME TAXES............ 43,973,392 101,837,513 FEDERAL INCOME TAXES.......................... 15,800,000 36,700,000 ------------ -------------- NET EARNINGS................................ $ 28,173,392 $ 65,137,513 ============ ============== NET EARNINGS PER SHARE.......................... $.32 $.74 ==== ==== DIVIDENDS DECLARED PER SHARE.................. $.13 $.12 ==== ==== AVERAGE NUMBER OF SHARES OUTSTANDING........ 87,309,502 88,020,407 THE INFORMATION FURNISHED REFLECTS ALL ADJUSTMENTS WHICH 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
APRIL 3, DECEMBER 31, 1999 1998 -------------- --------------- ASSETS (UNAUDITED) (AUDITED) CURRENT ASSETS: CASH AND SHORT-TERM INVESTMENTS................. $ 458,510,964 $ 308,696,460 ACCOUNTS RECEIVABLE............................. 293,110,179 299,244,794 INVENTORIES..................................... 421,881,895 435,884,838 OTHER CURRENT ASSETS............................ 88,403,207 85,641,291 -------------- -------------- TOTAL CURRENT ASSETS.......................... 1,261,906,245 1,129,467,383 -------------- -------------- PROPERTY, PLANT AND EQUIPMENT..................... 2,081,053,516 2,097,078,473 -------------- -------------- TOTAL ASSETS.................................. $3,342,959,761 $3,226,545,856 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: ACCOUNTS PAYABLE................................ $ 199,804,497 $ 198,329,771 SALARIES, WAGES AND RELATED ACCRUALS............ 74,808,617 113,619,322 FEDERAL INCOME TAXES............................ 17,873,348 26,090,271 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES.. 160,806,499 148,857,793 -------------- -------------- TOTAL CURRENT LIABILITIES..................... 453,292,961 486,897,157 -------------- -------------- LONG-TERM DEBT DUE AFTER ONE YEAR................. 390,450,000 215,450,000 -------------- -------------- DEFERRED CREDITS AND OTHER LIABILITIES............ 168,250,449 169,250,449 -------------- -------------- MINORITY INTERESTS................................ 245,642,300 282,396,469 -------------- -------------- STOCKHOLDERS' EQUITY: COMMON STOCK.................................... 36,020,714 36,020,714 ADDITIONAL PAID-IN CAPITAL...................... 67,341,161 67,252,936 RETAINED EARNINGS............................... 2,033,685,588 2,016,856,168 -------------- -------------- 2,137,047,463 2,120,129,818 TREASURY STOCK.................................. (51,723,412) (47,578,037) -------------- -------------- 2,085,324,051 2,072,551,781 -------------- -------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY.... $3,342,959,761 $3,226,545,856 ============== ==============
INVENTORIES CONSISTED OF APPROXIMATELY 45% RAW MATERIALS AND SUPPLIES, AND 55% FINISHED AND SEMI-FINISHED PRODUCTS, AT APRIL 3, 1999 (50% AND 50% AT DECEMBER 31, 1998). INVENTORIES VALUED ON THE LAST-IN, FIRST-OUT (LIFO) METHOD OF ACCOUNTING REPRESENT APPROXIMATELY 85% OF TOTAL INVENTORIES AS OF APRIL 3, 1999 AND AS OF DECEMBER 31, 1998. IF THE FIRST-IN, FIRST-OUT METHOD (FIFO) OF ACCOUNTING HAD BEEN USED, INVENTORIES WOULD HAVE BEEN $13,420,960 HIGHER AT APRIL 3, 1999 ($5,120,960 AT DECEMBER 31, 1998). THE INFORMATION FURNISHED HAS NOT BEEN AUDITED AND IS SUBJECT TO YEAR-END ADJUSTMENTS. -3- NUCOR CORPORATION - CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
THREE MONTHS (13 WEEKS) ENDED ----------------------------- APRIL 3, 1999 APRIL 4, 1998 ------------- ------------- (UNAUDITED) (UNAUDITED) OPERATING ACTIVITIES: NET EARNINGS ....................................... $ 28,173,392 $ 65,137,513 ADJUSTMENTS: DEPRECIATION OF PLANT AND EQUIPMENT .............. 61,661,474 58,943,255 MINORITY INTERESTS ............................... 14,866,351 23,301,515 CHANGES IN: CURRENT ASSETS ................................. 17,375,642 (16,773,637) CURRENT LIABILITIES ............................ (33,604,196) 2,850,919 OTHER .......................................... (1,014,433) 2,007,769 ------------- ------------- CASH PROVIDED BY OPERATING ACTIVITIES ............ 87,458,230 135,467,334 ------------- ------------- INVESTING ACTIVITIES: CAPITAL EXPENDITURES (NET) ......................... (45,622,084) (91,344,604) ------------- ------------- CASH USED IN INVESTING ACTIVITIES ................ (45,622,084) (91,344,604) ------------- ------------- FINANCING ACTIVITIES: INCREASE (DECREASE) IN LONG-TERM DEBT .............. 175,000,000 (250,000) DISTRIBUTIONS TO MINORITY INTERESTS ................ (51,620,520) (49,901,360) ISSUANCE OF COMMON STOCK ........................... 150,895 2,550,674 ACQUISITION OF TREASURY STOCK ...................... (4,208,045) -- CASH DIVIDENDS ..................................... (11,343,972) (10,566,505) ------------- ------------- CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES .. 107,978,358 (58,167,191) ------------- ------------- INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS $ 149,814,504 $ (14,044,461) ============= =============
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 more than 20% from the first quarter of 1998 to the first quarter of 1999, with about half of the net sales decrease resulting from a decrease in sales volume and about half resulting from a decrease in average sales prices. The major component of cost of products sold is raw material costs. The average price of raw materials decreased more than 25% from the first quarter of 1998. Major components of marketing, administrative and other expenses are freight and profit sharing costs. Unit freight costs decreased about 5% from the first quarter of 1998, and profit sharing costs decreased by more than 60% compared with the 1998 first quarter. Profit sharing costs are based upon and generally fluctuate with pre-tax earnings. Interest income, net of interest expense, decreased for the first quarter of 1999 from the first quarter of 1998, primarily due to increased debt. Federal income taxes were at a rate of about 36% for the first quarter of 1999 and 1998. Net earnings decreased approximately 55% during the first quarter of 1999, compared with the first quarter of 1998, due to decreased margins, decreased sales volume and increased pre-operating and start-up costs. Margins were about 8% for the first quarter of 1999 and about 12% for the first quarter of 1998. LIQUIDITY AND CAPITAL RESOURCES The current ratio was about 2.8 At the end of the 1999 first quarter, and about 2.3 At year-end 1998. The percentage of long-term debt to total capital was about 14% at the end of the first quarter of 1999, and about 8% at year-end 1998. Capital expenditures decreased close to 50% during the first quarter of 1999 compared with the first quarter of 1998. Capital expenditures are projected to be in the range of $450 million for all of 1999. Funds provided from operations, existing credit facilities and new borrowings are expected to be more than adequate to meet future capital expenditure and working capital requirements. -5- YEAR 2000 (Y2K) Nucor has implemented a readiness program designed to have all significant business and manufacturing systems functioning properly with respect to the Y2K issue. Affected systems are being replaced or remediated, with testing performed concurrently. Nucor anticipates that most mission-critical systems will be remediated and tested by July 1999, with the remainder to be completed by the end of 1999. Nucor is also reviewing the progress of significant vendors and customers in addressing this issue. Failure by Nucor or its vendors and customers to make material corrections could result, in some circumstances, 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 THREE MONTHS (13 WEEKS) ENDED ----------------------------- APRIL 3, 1999 APRIL 4, 1998 ------------- ------------- (UNAUDITED) (UNAUDITED) BASIC: BASIC NET EARNINGS............................... $28,173,392 $65,137,513 =========== =========== AVERAGE SHARES OUTSTANDING....................... 87,309,502 88,020,407 =========== =========== BASIC NET EARNINGS PER SHARE..................... $.32 $.74 ==== ==== DILUTED: DILUTED NET EARNINGS............................. $28,173,392 $65,137,513 =========== =========== DILUTED AVERAGE SHARES OUTSTANDING: BASIC SHARES OUTSTANDING....................... 87,309,502 88,020,407 DILUTIVE EFFECT OF EMPLOYEE STOCK OPTIONS...... 22,144 16,146 ---------- ---------- 87,331,646 88,036,553 ========== ========== DILUTED NET EARNINGS PER SHARE................... $.32 $.74 ==== ==== The information furnished has not been audited and is subject to year-end adjustments. 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 accounting officer. NUCOR CORPORATION BY: ------------------------------- TERRY S. LISENBY VICE PRESIDENT, DATED: MAY 12, 1999 CORPORATE CONTROLLER -6- EX-27 2 FDS FOR 1ST QUARTER 10-Q
5 3-MOS DEC-31-1999 APR-03-1999 458,510,964 0 293,110,179 16,943,877 421,881,895 1,261,906,245 3,443,404,884 1,362,351,368 3,342,959,761 453,292,961 390,450,000 0 0 36,020,714 2,049,303,337 3,342,959,761 893,822,996 893,822,996 818,906,709 818,906,709 31,386,532 0 (443,637) 43,973,392 15,800,000 28,173,392 0 0 0 28,173,392 .32 .32
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