-----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, CR3Tjtk+vi3gInEBK7f/kxBLGZSftfsAyYkE9HzzdsxKGvBICyOjGfM3nsI2TuE2 I7ec99lL+5Yo63tmlY1Tog== 0000950168-99-002815.txt : 19991111 0000950168-99-002815.hdr.sgml : 19991111 ACCESSION NUMBER: 0000950168-99-002815 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991002 FILED AS OF DATE: 19991110 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: 99745399 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 THIRD 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 OCTOBER 2, 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 --- --- 87,213,262 SHARES OF COMMON STOCK WERE OUTSTANDING AT OCTOBER 2, 1999. - 1 - PART I - FINANCIAL INFORMATION NUCOR CORPORATION - CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
NINE MONTHS (39 WEEKS) ENDED THREE MONTHS (13 WEEKS) ENDED ---------------------------- ----------------------------- OCT. 2, 1999 OCT. 3, 1998 OCT. 2, 1999 OCT. 3, 1998 ------------- ------------ ------------ ------------- (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) NET SALES................... $2,917,677,212 $3,278,173,618 $1,026,687,893 $1,010,961,380 -------------- -------------- -------------- -------------- COSTS AND EXPENSES: COST OF PRODUCTS SOLD..... 2,579,603,978 2,845,263,175 876,327,900 869,452,694 MARKETING, ADMINISTRATIVE AND OTHER EXPENSES...... 110,695,119 119,581,871 45,643,099 40,632,470 INTEREST EXPENSE (INCOME). (2,204,456) (3,060,864) (1,745,072) (949,697) -------------- -------------- -------------- -------------- 2,688,094,641 2,961,784,182 920,225,927 909,135,467 -------------- -------------- -------------- -------------- EARNINGS BEFORE FEDERAL INCOME TAXES...... 229,582,571 316,389,436 106,461,966 101,825,913 FEDERAL INCOME TAXES...... 82,600,000 113,900,000 38,300,000 36,700,000 -------------- -------------- -------------- -------------- NET EARNINGS............ $ 146,982,571 $ 202,489,436 $ 68,161,966 $ 65,125,913 ============== ============== ============== ============== NET EARNINGS PER SHARE...... $1.68 $2.30 $.78 $.74 ===== ===== ==== ==== DIVIDENDS DECLARED PER SHARE............... $.39 $.36 $.13 $.12 ==== ==== ==== ==== AVERAGE NUMBER OF SHARES OUTSTANDING.... 87,295,726 88,000,181 87,289,209 87,914,877
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
OCTOBER 2, DECEMBER 31, 1999 1998 -------------- --------------- ASSETS (UNAUDITED) (AUDITED) CURRENT ASSETS: CASH AND SHORT-TERM INVESTMENTS................. $ 598,982,078 $ 308,696,460 ACCOUNTS RECEIVABLE............................. 357,203,753 299,244,794 INVENTORIES..................................... 398,804,133 435,884,838 OTHER CURRENT ASSETS............................ 86,526,122 85,641,291 -------------- -------------- TOTAL CURRENT ASSETS.......................... 1,441,516,086 1,129,467,383 -------------- -------------- PROPERTY, PLANT AND EQUIPMENT..................... 2,113,096,749 2,097,078,473 -------------- -------------- TOTAL ASSETS.................................. $3,554,612,835 $3,226,545,856 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: ACCOUNTS PAYABLE................................ $ 221,187,345 $ 198,329,771 SALARIES, WAGES AND RELATED ACCRUALS............ 132,980,920 113,619,322 FEDERAL INCOME TAXES............................ 33,272,539 26,090,271 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES.. 196,198,551 148,857,793 -------------- -------------- TOTAL CURRENT LIABILITIES..................... 583,639,355 486,897,157 -------------- -------------- LONG-TERM DEBT DUE AFTER ONE YEAR................. 390,450,000 215,450,000 -------------- -------------- DEFERRED CREDITS AND OTHER LIABILITIES............ 147,764,449 169,250,449 -------------- -------------- MINORITY INTERESTS................................ 253,598,798 282,396,469 -------------- -------------- STOCKHOLDERS' EQUITY: COMMON STOCK.................................... 36,038,230 36,020,714 ADDITIONAL PAID-IN CAPITAL...................... 69,024,713 67,252,936 RETAINED EARNINGS............................... 2,129,812,481 2,016,856,168 TREASURY STOCK.................................. (55,715,191) (47,578,037) -------------- -------------- 2,179,160,233 2,072,551,781 -------------- -------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY.... $3,554,612,835 $3,226,545,856 ============== ==============
INVENTORIES CONSISTED OF APPROXIMATELY 45% RAW MATERIALS AND SUPPLIES, AND 55% FINISHED AND SEMI-FINISHED PRODUCTS, AT OCTOBER 2, 1999 (50% AND 50% AT DECEMBER 31, 1998). INVENTORIES VALUED ON THE LAST-IN, FIRST-OUT (LIFO) METHOD OF ACCOUNTING REPRESENT APPROXIMATELY 90% OF TOTAL INVENTORIES AS OF OCTOBER 2, 1999 (85% AS OF DECEMBER 31, 1998). IF THE FIRST-IN, FIRST-OUT METHOD (FIFO) OF ACCOUNTING HAD BEEN USED, INVENTORIES WOULD HAVE BEEN $30,170,960 HIGHER AT OCTOBER 2, 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
NINE MONTHS (39 WEEKS) ENDED ---------------------------- OCT. 2, 1999 OCT. 3, 1998 ------------ ------------ (UNAUDITED) (UNAUDITED) OPERATING ACTIVITIES: NET EARNINGS............................................ $146,982,571 $202,489,436 ADJUSTMENTS: DEPRECIATION OF PLANT AND EQUIPMENT................... 191,624,257 178,455,588 MINORITY INTERESTS.................................... 50,490,209 71,838,035 CHANGES IN: CURRENT ASSETS...................................... (21,763,085) (29,153,219) CURRENT LIABILITIES................................. 96,742,198 26,247,914 OTHER............................................... (20,804,992) (9,173,379) ------------ ------------ CASH PROVIDED BY OPERATING ACTIVITIES................. 443,271,158 440,704,375 ------------ ------------ INVESTING ACTIVITIES: CAPITAL EXPENDITURES (NET).............................. (208,323,541) (363,393,228) ------------ ------------ CASH USED IN INVESTING ACTIVITIES..................... (208,323,541) (363,393,228) ------------ ------------ FINANCING ACTIVITIES: INCREASE IN LONG-TERM DEBT.............................. 175,000,000 47,250,000 DISTRIBUTIONS TO MINORITY INTERESTS..................... (79,287,880) (85,682,559) ISSUANCE OF COMMON STOCK................................ 2,490,011 3,516,586 ACQUISITION OF TREASURY STOCK........................... (8,837,872) (19,846,062) CASH DIVIDENDS.......................................... (34,026,258) (31,647,184) ------------ ------------ CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES....... 55,338,001 (86,409,219) ------------ ------------ INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS.... $290,285,618 $ (9,098,072) ============ ============
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 INCREASED BY ABOUT 2% FROM THE THIRD QUARTER OF 1998 TO THE THIRD QUARTER OF 1999, WITH THE INCREASE RESULTING FROM AN INCREASE IN SALES VOLUME, PARTIALLY OFFSET BY A DECREASE IN AVERAGE SALES PRICES. NET SALES DECREASED BY 11% FROM THE FIRST NINE MONTHS OF 1998 TO THE FIRST NINE MONTHS OF 1999, PRIMARILY AS A RESULT OF A DECREASE IN SALES PRICE. AVERAGE SALES PRICES DECREASED BY APPROXIMATELY 8% FROM THE THIRD QUARTER OF 1998 TO THE THIRD QUARTER OF 1999, AND DECREASED MORE THAN 10% FROM THE FIRST NINE MONTHS OF 1998 TO THE FIRST NINE MONTHS OF 1999. THE MAJOR COMPONENT OF COST OF PRODUCTS SOLD IS RAW MATERIAL COSTS. THE AVERAGE PRICE OF RAW MATERIALS DECREASED APPROXIMATELY 20% FROM THE THIRD QUARTER OF 1998 TO THE THIRD QUARTER OF 1999, AND DECREASED ABOUT 23% FROM THE FIRST NINE MONTHS OF 1998 TO THE FIRST NINE MONTHS OF 1999. MAJOR COMPONENTS OF MARKETING, ADMINISTRATIVE AND OTHER EXPENSES ARE FREIGHT AND PROFIT SHARING COSTS. UNIT FREIGHT COSTS INCREASED LESS THAN 5% FROM THE THIRD QUARTER OF 1998 TO THE THIRD QUARTER OF 1999, AND WERE UNCHANGED FROM THE FIRST NINE MONTHS OF 1998 TO THE FIRST NINE MONTHS OF 1999. PROFIT SHARING COSTS INCREASED ABOUT 5% FROM THE THIRD QUARTER OF 1998 TO THE THIRD QUARTER OF 1999, AND DECREASED ABOUT 30% FROM THE FIRST NINE MONTHS OF 1998 TO THE FIRST NINE MONTHS OF 1999. PROFIT SHARING COSTS ARE BASED UPON AND GENERALLY FLUCTUATE WITH PRE-TAX EARNINGS. INTEREST INCOME, NET OF INTEREST EXPENSE, INCREASED FROM THE THIRD QUARTER OF 1998 TO THE THIRD QUARTER OF 1999, DUE PRIMARILY TO INCREASED AVERAGE SHORT-TERM INVESTMENTS, AND DECREASED FROM THE FIRST NINE MONTHS OF 1998 TO THE FIRST NINE MONTHS OF 1999, AS A RESULT OF INCREASED LONG-TERM DEBT. FEDERAL INCOME TAXES WERE AT A RATE OF ABOUT 36% FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 1999, AND THE THIRD QUARTER AND FIRST NINE MONTHS OF 1998. NET EARNINGS INCREASED FROM THE THIRD QUARTER OF 1998 TO THE THIRD QUARTER OF 1999 PRIMARILY DUE TO INCREASED VOLUME AND DECREASED PRE-OPERATING AND START-UP COSTS OF NEW FACILITIES, AND DECREASED FROM THE FIRST NINE MONTHS OF 1998 TO THE FIRST NINE MONTHS OF 1999 DUE TO DECREASED MARGINS AND INCREASED PRE-OPERATING AND START-UP COSTS OF NEW FACILITIES. MARGINS WERE ABOUT 15% FOR THE THIRD QUARTER OF 1999 AND ABOUT 12% FOR THE FIRST NINE MONTHS OF 1999, COMPARED WITH ABOUT 14% FOR THE THIRD QUARTER OF 1998 AND ABOUT 13% FOR THE FIRST NINE MONTHS OF 1998. LIQUIDITY AND CAPITAL RESOURCES THE CURRENT RATIO WAS ABOUT 2.5 AT THE END OF THE FIRST NINE MONTHS OF 1999, AND AT ABOUT 2.3 AT YEAR-END 1998. THE PERCENTAGE OF LONG-TERM DEBT TO TOTAL CAPITAL WAS CLOSE TO 14% AT THE END OF THE FIRST NINE MONTHS OF 1999, AND ABOUT 8% AT YEAR-END 1998. CAPITAL EXPENDITURES DECREASED CLOSE TO 40% DURING THE FIRST NINE MONTHS OF 1999, COMPARED WITH THE FIRST NINE MONTHS OF 1998. CAPITAL EXPENDITURES ARE PROJECTED TO BE ABOUT $400 MILLION FOR ALL OF 1999. 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 (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 HAS DEVELOPED MITIGATION, CONTINGENCY AND RECOVERY PLANS. 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. 2, 1999 OCT. 3, 1998 OCT. 2, 1999 OCT. 3, 1998 ------------- ------------ ------------ ------------ (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) BASIC: BASIC NET EARNINGS............. $146,982,571 $202,489,436 $68,161,966 $65,125,913 ============ ============ =========== =========== AVERAGE SHARES OUTSTANDING..... 87,295,726 88,000,181 87,289,209 87,914,877 ========== ========== ========== ========== BASIC NET EARNINGS PER SHARE... $1.6837 $2.3010 $.7809 $.7408 ======= ======= ====== ====== DILUTED: DILUTED NET EARNINGS........... $146,982,571 $202,489,436 $68,161,966 $65,125,913 ============ ============ =========== =========== DILUTED AVERAGE SHARES OUTSTANDING: BASIC SHARES OUTSTANDING..... 87,295,726 88,000,181 87,289,209 87,914,877 DILUTIVE EFFECT OF EMPLOYEE STOCK OPTIONS..... 37,552 17,633 33,772 9,643 ---------- ---------- ---------- ---------- 87,333,278 88,017,814 87,322,981 87,924,520 ========== ========== ========== ========== DILUTED NET EARNINGS PER SHARE. $1.6830 $2.3006 $.7806 $.7407 ======= ======= ====== ======
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: NOVEMBER 11, 1999 CORPORATE CONTROLLER - 6 - EX-27 2 EXHIBIT 27
5 9-MOS DEC-31-1999 OCT-02-1999 598,982,078 0 357,203,753 18,573,366 398,804,133 1,441,516,086 3,605,534,465 1,492,437,716 3,554,612,835 583,639,355 390,450,000 0 0 36,038,230 2,143,122,003 3,554,612,835 2,917,677,212 2,917,677,212 2,579,603,978 2,579,603,978 110,695,119 0 (2,204,456) 229,582,571 82,600,000 146,982,571 0 0 0 146,982,571 1.68 1.68
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