EX-99.1 2 v110868_ex99-1.htm Unassociated Document
 
News Release
 
NUCOR REPORTS RECORD RESULTS FOR FIRST QUARTER OF 2008
 
CHARLOTTE, NORTH CAROLINA, April 17, 2008 - Nucor Corporation (NYSE: NUE) announced today record first quarter net earnings for the fifth consecutive year. Consolidated net earnings for the first quarter of 2008 were $409.8 million, an increase of 8% compared to the first quarter of 2007 net earnings of $381.0 million and an increase of 12% from the fourth quarter of 2007 net earnings of $364.8 million. Diluted earnings per share increased 12% to $1.41 from $1.26 in the first quarter of 2007 and in the fourth quarter of 2007. The increase in earnings per share from the first quarter of 2007 is partially due to the reduced number of shares outstanding as a result of stock repurchases made in 2007.
 
Nucor’s consolidated net sales increased 32% to a record $4.97 billion compared with $3.77 billion in the first quarter of 2007 due to a 15% increase in average steel sales price per ton, an 11% increase in average steel products sales price per ton, and a significant increase in steel products shipments attributable to acquisitions made in 2007. The increase in sales is also due to the February 29, 2008 acquisition of the stock of SHV North America Corporation, which owns 100% of The David J. Joseph Company (“DJJ”) and its affiliates, for a cash purchase price of approximately $1.4 billion. DJJ, which now operates as a wholly owned subsidiary of Nucor Corporation, has been the broker of ferrous scrap to Nucor since 1969.

Consolidated net sales increased 13% over the fourth quarter of 2007 primarily due to an 8% increase in average steel sales price per ton and the acquisition of DJJ.
 
The average scrap and scrap substitute cost per ton used increased 29% from $259 in the first quarter of 2007 to $333 in the first quarter of 2008 and increased 17% from $285 in the fourth quarter of 2007.
 
Total energy costs increased approximately $4 per ton from the first quarter of 2007 to the first quarter of 2008 and increased approximately $3 per ton from the fourth quarter of 2007.
 
Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $69.0 million in the first quarter of 2008, compared with a charge of $24.5 million in the first quarter of 2007 and a charge of $92.3 million in the fourth quarter of 2007.
 
In the steel mills segment, steel production increased 4% to 5,831,000 tons in the first quarter of 2008, compared with 5,585,000 tons produced in the first quarter of 2007, and increased 4% over the 5,586,000 tons produced in the fourth quarter of 2007.
 
Total steel shipments increased 5% to 5,951,000 tons in the first quarter of 2008, compared with 5,660,000 tons in last year’s first quarter, and increased 5% over the 5,684,000 total tons shipped in the fourth quarter. Steel shipments to outside customers of 5,203,000 tons in the first quarter of 2008 remained flat compared with 5,229,000 tons in the first quarter of 2007, and increased 2% over the 5,078,000 tons shipped in the fourth quarter of 2007.
 

Page 1 of 6

Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
 
 
 
News Release
 
NUCOR REPORTS RECORD RESULTS FOR FIRST QUARTER OF 2008 (Continued)
 
In the steel products segment, steel joist production during the first quarter was 132,000 tons, compared with 121,000 tons in the first quarter of 2007, an increase of 9%. Steel deck sales increased 9% from 106,000 tons in the first quarter of 2007 to 116,000 tons in this year’s first quarter. Cold finished steel sales increased 51% to 136,000 tons, compared with 90,000 tons in the first quarter of 2007. Sales of fabricated concrete reinforcing steel increased from 40,000 tons in the month of March 2007 (when Nucor acquired Harris Steel Group Inc.) to 179,000 tons in the first quarter of 2008.
 
Subsequent to the first quarter Nucor completed two acquisitions, utilizing DJJ as a platform for continued growth in the scrap processing industry. In April 2008, a wholly owned subsidiary of Nucor acquired substantially all the assets of Metal Recycling Services Inc. (“MRS”). Based in Monroe, North Carolina, MRS operates a full-service processing facility and two feeder yards and expects to process 220,000 tons annually. MRS will become part of DJJ and will operate under the Metal Recycling Services, LLC name.

Also in April 2008, DJJ acquired substantially all the assets of Galamba Metals Group. Galamba operated 16 full-service scrap processing facilities in Kansas, Missouri and Arkansas and processed over 500,000 tons annually. DJJ will operate the Galamba Metals Group facilities under the Advantage Metals Recycling, LLC name.

Nucor expects to soon conclude a 50/50 joint venture with the Duferco Group (Lugano, Switzerland) for the production of beams in Italy and the distribution of beams in Europe and North Africa. The joint venture will encompass the Duferco Group’s Duferdofin subsidiary and associated distribution companies.

Starting with the May 9, 2008 dividend payment, Nucor is increasing the base quarterly cash dividend rate from $0.30 to $0.32 per share. In addition to the $0.32 per share base dividend amount, the board of directors approved the payment of a supplemental dividend of $0.20 per share, for a total dividend of $0.52 per share. Nucor has increased its regular base cash dividend every year since Nucor began paying dividends 35 years ago.

We expect second quarter earnings to be in the range of $1.55 to $1.60 per diluted share. We expect continued strength in our sheet, plate, beam and bar businesses due to the solid global demand for steel. In our overall downstream businesses we expect conditions to continue to be good, particularly for rebar fabrication, cold finish bars, steel grating, and wire rod and mesh products. We believe our upstream raw material businesses will be accretive in the second quarter. DJJ’s net earnings for the one month that they were owned by Nucor were offset by the purchase accounting adjustments in the period.
 
 
Page 2 of 6

Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
 
 
 
News Release
 
NUCOR REPORTS RECORD RESULTS FOR FIRST QUARTER OF 2008 (Continued)
 
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 joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; and wire and wire mesh. Nucor, through DJJ, also brokers ferrous and nonferrous metals, pig iron and HRI/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. 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; (4) competitive pressure on sales and pricing, including pressure from imports and substitute materials; and (5) capital investments and their impact on our performance. These and other factors are outlined in Nucor’s regulatory filings with the Securities and Exchange Commission, including those in Nucor’s December 31, 2007 Annual Report on Form 10-K. 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 first quarter results on April 17, 2008 at 2:00 p.m. eastern time. The conference call will be available over the Internet at www.nucor.com, under Investor Relations.
 
 
Page 3 of 6

Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
 
 
 
News Release
 
NUCOR REPORTS RECORD RESULTS FOR FIRST QUARTER OF 2008 (Continued)
 
Unaudited figures are as follows:

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)

   
Three Months (13 Weeks) Ended
 
           
   
March 29, 2008
  
March 31, 2007
  
           
NET SALES
  
$
4,974,269
  
$
3,768,885
  
               
COSTS, EXPENSES AND OTHER:
              
Cost of products sold
    
4,071,592
   
2,991,598
 
Marketing, administrative and other expenses
    
169,714
   
136,210
 
Interest expense (income), net
    
18,345
   
(9,162
)
Minority interests
    
91,771
   
60,572
 
     
4,351,422
   
3,179,218
 
               
EARNINGS BEFORE INCOME TAXES
    
622,847
   
589,667
 
Provision for income taxes
    
213,093
   
208,638
 
NET EARNINGS
  
$
409,754
  
$
381,029
  
               
NET EARNINGS PER SHARE:
              
Basic
  
$
1.42
  
$
1.27
  
Diluted
  
$
1.41
  
$
1.26
  
               
AVERAGE SHARES OUTSTANDING:
              
Basic
    
288,208
   
301,034
 
Diluted
    
290,201
   
303,482
 
 
 
Page 4 of 6

Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
 
 
 
News Release
 
NUCOR REPORTS RECORD RESULTS FOR FIRST QUARTER OF 2008 (Continued)

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)

   
March 29, 2008
 
Dec. 31, 2007
  
Assets
             
CURRENT ASSETS:
             
Cash and cash equivalents  
  
$
733,995
  
$
1,393,943
  
Short-term investments  
    
-
   
182,450
 
Accounts receivable, net  
    
1,965,002
   
1,611,844
 
Inventories  
    
1,877,371
   
1,601,600
 
Other current assets  
    
298,274
   
283,412
 
               
 Total current assets
   
4,874,642
   
5,073,249
 
               
PROPERTY, PLANT AND EQUIPMENT, NET
   
3,631,792
   
3,232,998
 
               
GOODWILL
   
1,698,168
   
847,887
 
               
OTHER INTANGIBLE ASSETS, NET
   
894,617
   
469,936
 
               
OTHER ASSETS
   
241,302
   
202,052
 
               
TOTAL ASSETS
 
$
11,340,521
  
$
9,826,122
  
               
Liabilities and stockholders' equity
             
CURRENT LIABILITIES:
             
Short-term debt  
  
$
12,367
  
$
22,868
  
Long-term debt due within one year  
    
175,000
   
-
 
Accounts payable  
    
1,345,322
   
691,668
 
Federal income taxes payable  
    
131,151
   
-
 
Salaries, wages and related accruals  
    
284,611
   
436,352
 
Accrued expenses and other current liabilities  
    
421,194
   
431,148
 
               
 Total current liabilities
   
2,369,645
   
1,582,036
 
               
LONG-TERM DEBT DUE AFTER ONE YEAR
   
2,491,600
   
2,250,300
 
               
DEFERRED CREDITS AND OTHER LIABILITIES
   
766,401
   
593,423
 
               
MINORITY INTERESTS
   
287,181
   
287,446
 
               
STOCKHOLDERS' EQUITY:
             
Common stock  
    
149,430
   
149,302
 
Additional paid-in capital  
    
280,981
   
256,406
 
Retained earnings  
    
6,880,580
   
6,621,646
 
Accumulated other comprehensive income,  
              
 net of income taxes
   
186,496
   
163,362
 
     
7,497,487
   
7,190,716
 
Treasury stock  
    
(2,071,793
)
  
(2,077,799
)
               
 Total stockholders' equity
   
5,425,694
   
5,112,917
 
               
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
11,340,521
  
$
9,826,122
  
 
Page 5 of 6

Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
 
 
 
News Release
 
NUCOR REPORTS RECORD RESULTS FOR FIRST QUARTER OF 2008 (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)

   
Three Months (13 Weeks) Ended
  
           
   
March 29, 2008
  
March 31, 2007
  
           
Operating activities:
              
Net earnings
 
$
409,754
  
$
381,029
  
Adjustments:
              
Depreciation 
    
109,662
   
98,402
 
Amortization 
    
13,411
   
2,005
 
Stock-based compensation 
    
9,635
   
7,649
 
Deferred income taxes 
    
(8,663
)
  
(16,946
)
Minority interests 
    
91,769
   
60,572
 
Settlement of cash flow hedges 
    
(283
)
  
(1,584
)
Changes in assets and liabilities (exclusive of acquisitions): 
              
 Accounts receivable
    
33,005
   
(122,598
)
 Inventories
    
8,014
   
(5,314
)
 Accounts payable
    
16,245
   
220,207
 
 Federal income taxes
    
189,411
   
204,993
 
 Salaries, wages and related accruals
    
(162,496
)
  
(232,499
)
 Other
    
(41,985
)
  
(30,406
)
               
Cash provided by operating activities
    
667,479
   
565,510
 
               
Investing activities:
              
Capital expenditures
    
(226,238
)
  
(91,349
)
Sale of interest in affiliate
    
-
   
29,500
 
Investment in affiliates
    
(17,118
)
  
(8,761
)
Disposition of plant and equipment
    
1,250
   
178
 
Acquisitions (net of cash acquired)
    
(1,402,179
)
  
(1,060,080
)
Purchases of investments
    
(209,605
)
  
(74,265
)
Proceeds from the sale of investments
    
392,055
   
997,433
 
Proceeds from currency derivative contracts
    
-
   
517,241
 
Settlement of currency derivative contracts
    
-
   
(511,394
)
               
Cash used in investing activities
    
(1,461,835
)
  
(201,497
)
               
Financing activities:
              
Net change in short-term debt
    
(10,501
)
  
6,096
 
Proceeds from issuance of long-term debt
    
400,000
   
-
 
Issuance of common stock
    
6,158
   
6,601
 
Excess tax benefits from stock-based compensation
    
7,300
   
6,000
 
Distributions to minority interests
    
(91,993
)
  
(105,600
)
Cash dividends
    
(176,556
)
  
(181,155
)
               
Cash provided by (used in) financing activities
   
134,408
   
(268,058
)
               
Increase (decrease) in cash and cash equivalents
    
(659,948
)
  
95,955
 
               
Cash and cash equivalents - beginning of year
    
1,393,943
   
785,651
 
               
Cash and cash equivalents - end of three months
  
$
733,995
  
$
881,606
  
 
Page 6 of 6

Nucor Executive Offices: 1915 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com