-----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, Qn2DTFjntZfUaMp/1uvaQ4XqkDhl2SoELVPoMr1vdBau9rNoD62DhLRmSq7zX5AA It4UJ+jDUdNac8XAnGe9Og== 0000950168-99-002094.txt : 19990811 0000950168-99-002094.hdr.sgml : 19990811 ACCESSION NUMBER: 0000950168-99-002094 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990703 FILED AS OF DATE: 19990810 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: 99682127 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 FORM 10-Q SECOND 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 July 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 --- --- 87,291,667 shares of common stock were outstanding at July 3, 1999. - 1 - PART I - FINANCIAL INFORMATION Nucor Corporation - Consolidated Condensed Statements of Earnings
Six Months (26 Weeks) Ended Three Months (13 Weeks) Ended ------------------------------ ------------------------------ July 3, 1999 July 4, 1998 July 3, 1999 July 4, 1998 -------------- ------------- --------------- -------------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net sales................... $1,890,989,319 $2,267,212,238 $997,166,323 $1,128,350,083 --------------- ---------------- ------------ --------------- Costs and expenses: Cost of products sold..... 1,703,276,078 1,975,810,481 884,369,369 976,304,508 Marketing, administrative and other expenses...... 65,052,020 78,949,401 33,665,488 40,081,649 Interest expense (income). (459,384) (2,111,167) (15,747) (762,084) -------------- ------------- ----------- ------------- 1,767,868,714 2,052,648,715 918,019,110 1,015,624,073 -------------- ------------- ----------- ------------- Earnings before federal income taxes...... 123,120,605 214,563,523 79,147,213 112,726,010 Federal income taxes...... 44,300,000 77,200,000 28,500,000 40,500,000 -------------- -------------- ----------- ----------- Net earnings............ $ 78,820,605 $ 137,363,523 $ 50,647,213 $ 72,226,010 =============== =============== ============= ============== Net earnings per share...... $.90 $1.56 $.58 $.82 ==== ===== ==== ==== Dividends declared per share............... $.26 $.24 $.13 $.12 ==== ==== ==== ==== Average number of shares outstanding... 87,298,950 88,042,141 87,288,165 88,064,592
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
July 3, December 31, 1999 1998 ---------- ------------ Assets (Unaudited) (Audited) ----- --------- ------- Current assets: Cash and short-term investments................. $ 517,898,884 $308,696,460 Accounts receivable............................. 342,218,745 299,244,794 Inventories..................................... 384,073,126 435,884,838 Other current assets............................ 87,374,704 85,641,291 -------------- ------------- Total current assets.......................... 1,331,565,459 1,129,467,383 -------------- ------------- Property, plant and equipment..................... 2,093,098,100 2,097,078,473 -------------- ------------- Total assets.................................. $3,424,663,559 $3,226,545,856 ============== ============== Liabilities and stockholders' equity - ------------------------------------ Current liabilities: Accounts payable................................ $ 213,116,952 $ 198,329,771 Salaries, wages and related accruals............ 103,250,836 113,619,322 Federal income taxes............................ 22,042,012 26,090,271 Accrued expenses and other current liabilities.. 180,121,265 148,857,793 --------------- -------------- Total current liabilities..................... 518,531,065 486,897,157 -------------- -------------- Long-term debt due after one year................. 390,450,000 215,450,000 -------------- ----------- Deferred credits and other liabilities............ 144,250,449 169,250,449 -------------- ----------- Minority interests................................ 245,488,216 282,396,469 -------------- ------------ Stockholders' equity: Common stock.................................... 36,036,490 36,020,714 Additional paid-in capital...................... 68,730,351 67,252,936 Retained earnings............................... 2,072,984,884 2,016,856,168 Treasury stock.................................. (51,807,896) (47,578,037) -------------- --------------- 2,125,943,829 2,072,551,781 -------------- --------------- Total liabilities and stockholders' equity.... $3,424,663,559 $3,226,545,856 ============== ==============
Inventories consisted of approximately 40% raw materials and supplies, and 60% finished and semi-finished products, at July 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 July 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 $21,870,960 higher at July 3, 1999 ($5,120,960 higher 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
Six Months (26 Weeks) Ended ----------------------------- July 3, 1999 July 4, 1998 ------------- ------------ (Unaudited) (Unaudited) --------- --------- Operating activities: Net earnings............................................ $ 78,820,605 $137,363,523 Adjustments: Depreciation of plant and equipment................... 125,881,911 118,748,941 Minority interests.................................... 32,785,427 48,188,268 Changes in: Current assets...................................... 7,104,348 (15,294,510) Current liabilities................................. 31,633,908 (13,330,182) Other............................................... (24,874,977) (8,918,147) ------------ ------------ Cash provided by operating activities................. 251,351,222 266,757,893 ------------ ------------ Investing activities: Capital expenditures (net).............................. (122,026,561) (212,953,010) ------------ ------------ Cash used in investing activities..................... (122,026,561) (212,953,010) ------------ ------------ Financing activities: Increase in long-term debt.............................. 175,000,000 47,250,000 Distributions to minority interests..................... (69,693,680) (75,329,763) Issuance of common stock................................ 2,114,280 3,323,609 Acquisition of treasury stock........................... (4,850,948) - Cash dividends.......................................... (22,691,889) (21,134,866) ------------ ------------ Cash provided by (used in) financing activities....... 79,877,763 (45,891,020) ------------ ------------ Increase in cash and short-term investments............... $209,202,424 $ 7,913,863 ============ ===========
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 12% from the second quarter of 1998 to the second quarter of 1999, with substantially all of the net sales decrease resulting from a decrease in average sales prices. Net sales decreased close to 17% from the first half of 1998 to the first half of 1999, with about 65% of the net sales decrease resulting from a decrease in average sales prices and about 35% of the decrease resulting from a decrease in sales volume. Average sales prices decreased about 11% both from the second quarter of 1998 to the second quarter of 1999, and from the first half of 1998 to the first half of 1999. The major component of cost of products sold is raw material costs. The average price of raw materials decreased approximately 24% in both the second quarter of 1999 compared with the second quarter of 1998, and the first half of 1999 compared with the first half of 1998. Major components of marketing, administrative and other expenses are freight and profit sharing costs. Unit freight costs decreased less than 5% from both the second quarter of 1998 to the second quarter of 1999, and from the first half of 1998 to the first half of 1999. Profit sharing costs decreased about 40% from the second quarter of 1998 to the second quarter of 1999, and decreased about 50% from the first half of 1998 to the first half of 1999. Profit sharing costs are based upon and generally fluctuate with pre-tax earnings. Interest income, net of interest expense, decreased for the second quarter and first half of 1999 from the second quarter and first half of 1998, due primarily to increased debt. Federal income taxes were at a rate of about 36% for the second quarter and first half of 1999, and the second quarter and first half of 1998. Net earnings decreased during the second quarter and first half of 1999, compared with the second quarter and first half of 1998, due to decreased margins and increased pre-operating and start-up costs. Margins were about 11% for the second quarter of 1999 and about 10% for the first half of 1999, compared with about 13% for the second quarter and first half of 1998. Liquidity and capital resources The current ratio was about 2.6 at the end of the first half of 1999, 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 half of 1999, and about 8% at year-end 1998. Capital expenditures decreased close to 40% during the first half of 1999, compared with the first half of 1998. Capital expenditures are projected to be more than $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. 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. Most mission-critical systems have been remediated and tested, 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. Nucor has developed internal guidelines for business continuity planning and is in process of developing appropriate mitigation, contingency and recovery plans. - 5 - PART II - OTHER INFORMATION Item 4 - Submission of Matters to a Vote of Security Holders At the annual meeting of stockholders held on May 13, 1999, two directors were elected for terms of three years expiring in 2002; 76,752,246 shares were voted for Peter C. Browning (668,995 abstained), and 76,741,176 shares were voted for Victoria F. Haynes (680,065 abstained). 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
Six Months (26 Weeks) Ended Three Months (13 Weeks) Ended --------------------------- ----------------------------- July 3, 1999 July 4, 1998 July 3, 1999 July 4, 1998 ------------- ------------ -------------- ------------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) Basic: Basic net earnings............. $78,820,605 $137,363,523 $50,647,213 $72,226,010 =========== ============ ============ ============ Average shares outstanding..... 87,298,950 88,042,141 87,288,165 88,064,592 ========== ========== ============ ============ Basic net earnings per share... $.9029 $1.5602 $.5802 $.8201 ====== ======= ====== ====== Diluted: Diluted net earnings........... $78,820,605 $137,363,523 $50,647,213 $72,226,010 =========== ============ ============ ============ Diluted average shares outstanding: Basic shares outstanding..... 87,298,950 88,042,141 87,288,165 88,064,592 Dilutive effect of employee stock options..... 39,420 21,564 57,077 27,160 ---------- ---------- ----------- ------------ 87,338,370 88,063,705 87,345,242 88,091,752 ========== ========== =========== ============ Diluted net earnings per share. $.9025 $1.5598 $.5799 $.8199 ====== ======= ====== ======
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: August 11, 1999 Corporate Controller - 6 - EX-27 2 ART. 5 FDS FOR 2ND QUARTER 10-Q
5 6-MOS DEC-31-1999 JUL-03-1999 517,898,884 0 342,218,745 16,575,772 384,073,126 1,331,565,459 3,519,732,589 1,426,634,489 3,424,663,559 518,531,065 390,450,000 36,036,490 0 0 2,089,907,339 3,424,663,559 1,890,989,319 1,890,989,319 1,703,276,078 1,703,276,078 65,052,020 0 (459,384) 123,120,605 44,300,000 78,820,605 0 0 0 78,820,605 .90 .90
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