EX-99.1 2 v146762_ex99-1.htm
 
News Release
 
NUCOR REPORTS RESULTS FOR FIRST QUARTER OF 2009
 
CHARLOTTE, NORTH CAROLINA, April 23, 2009 – Nucor Corporation (NYSE: NUE) announced today a consolidated net loss of $189.6 million, or $0.60 per diluted share, for the first quarter of 2009.  By comparison, Nucor earned $409.8 million, or $1.41 per diluted share, in the first quarter of 2008 and earned $105.9 million, or $0.34 per diluted share, in the fourth quarter of 2008.
 
Nucor’s consolidated net sales decreased 47% to $2.65 billion compared with $4.97 billion in the first quarter of 2008 due to a 43% decrease in total tons shipped to outside customers and a 7% decrease in average sales price per ton.  Consolidated net sales decreased 36% compared with $4.15 billion in the fourth quarter of 2008 due to a 14% decrease in total tons shipped to outside customers and a 26% decrease in average sales price per ton.

The average scrap and scrap substitute cost per ton used remained flat at $333 in the first quarters of 2008 and 2009 and decreased 23% from $435 in the fourth quarter of 2008.
 
Nucor incurred a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $105 million in the first quarter of 2009, compared with a charge of $69 million in the first quarter of 2008 and a credit of $81 million in the fourth quarter of 2008.  Nucor also incurred a charge of about $60 million in the first quarter of 2009 to write down inventories to the lower of cost or market.
 
The steel mill utilization rate has decreased to approximately 45% in the first quarter from 92% in last year’s first quarter and 48% in the fourth quarter.  As a result of this decreased utilization, total energy costs increased approximately $11 per ton from the first quarter of 2008 to the first quarter of 2009 and increased approximately $5 per ton from the fourth quarter of 2008.
 
The dramatically lower production rates of our mills have further slowed the rate at which our sheet mills are consuming higher cost iron units, in particular pig iron inventories, which were purchased prior to the collapse in both the economy and scrap/pig iron pricing in last year’s fourth quarter.  We expect that the impact from higher cost scrap will disappear during the second quarter.  If these current production rates continue, the overhang from the high cost pig iron will, however, continue to impact our results through the third quarter.  Pig iron consumption was increased midway through the first quarter.  This increased consumption rate is expected to result in approximately $80 million higher raw material costs at our sheet mills for the second quarter.  Any significant improvement in order entry and operating rates will speed up our raw material destocking process with a corresponding improvement in earnings.
 
Our liquidity position remains strong with $1.9 billion in cash and cash equivalents and an untapped $1.3 billion revolving credit facility that matures in November 2012.  We have maintained this strong liquidity position despite a $175 million debt maturity in January, and payments in the first quarter of approximately $305 million for profit sharing and extraordinary bonuses related to our 2008 record performance. 
 
In February, Nucor’s board declared a cash dividend of $0.35 per share payable on May 12, 2009 to stockholders of record on March 31, 2009.  This dividend is Nucor’s one-hundred forty-fourth consecutive quarterly cash dividend, a record we expect to continue.
 
Page 1 of 5
 
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 RESULTS FOR FIRST QUARTER OF 2009 (Continued)
 
As we have progressed from September 2008 to March 2009, we have seen business and market conditions worsen each succeeding month.  Entering the second quarter of 2009, both the U.S. economy and steel market conditions have continued to deteriorate, and we expect a second quarter loss greater than the first quarter as a result.  Continued low operating rates, lower pricing and the consumption of high cost pig iron inventories for the full quarter at our sheet mills will negatively impact earnings.  Our second quarter guidance will only be qualitative at this time.  We will update our guidance midway between the first and second quarter earnings releases.
 
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 HBI/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, 2008 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 23, 2009 at 2:00 p.m. eastern time.  The conference call will be available over the Internet at www.nucor.com, under Investor Relations.
 
TONNAGE DATA
(in thousands)

   
Quarter (13 weeks) Ended
  
   
April 4, 2009
    
March 29, 2008
    
Percentage
Change
  
Steel Mills:
                  
Production
     2,879       5,831       -51 %
Total shipments
     2,808       5,951       -53 %
Outside shipments
     2,433       5,203       -53 %
                         
Steel Products:
                        
Joist production
     60       132       -55 %
Deck sales
     75       116       -35 %
Cold finish sales
     80       136       -41 %
Fabricated concrete
                        
reinforcing steel sales
     208       179       16 %
 
Page 2 of 5
  
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 RESULTS FOR FIRST QUARTER OF 2009 (Continued)
 
Unaudited figures are as follows:
 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)

   
Three Months (13 Weeks) Ended
  
   
April 4, 2009
    
March 29, 2008
  
             
Net sales
   $ 2,654,319     $ 4,974,269  
                 
Costs, expenses and other:
                
Cost of products sold
     2,778,324       4,071,592  
Marketing, administrative and other expenses
     125,376       169,714  
Interest expense, net
     32,365       18,345  
      2,936,065       4,259,651  
Earnings (loss) before income taxes and noncontrolling interests
     (281,746 )     714,618  
Provision for (benefit from) income taxes
     (91,221 )     213,093  
Net earnings (loss)
     (190,525 )     501,525  
Earnings (loss) attributable to noncontrolling interests
     (880 )     91,771  
Net earnings (loss) attributable to Nucor stockholders
   $ (189,645 )   $ 409,754  
                 
Net earnings per share:
                
Basic
   $ (0.60 )   $ 1.42  
Diluted
   $ (0.60 )   $ 1.41  
                 
Average shares outstanding:
                
Basic
     314,319       288,208  
Diluted
     314,319       289,305  

Page 3 of 5
  
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 RESULTS FOR FIRST QUARTER OF 2009 (Continued)
 
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)

   
April 4, 2009
    
Dec. 31, 2008
  
ASSETS
            
Current assets:
            
Cash and cash equivalents
   $ 1,900,079     $ 2,355,130  
Accounts receivable, net
     933,763       1,228,807  
Inventories
     1,883,956       2,408,157  
Other current assets
     472,046       405,392  
                 
Total current assets
     5,189,844       6,397,486  
                 
Property, plant and equipment, net
     4,126,427       4,131,861  
                 
Goodwill
     1,728,442       1,732,045  
                 
Other intangible assets, net
     925,986       946,545  
                 
Other assets
     615,775       666,506  
                 
Total assets
   $ 12,586,474     $ 13,874,443  
                 
LIABILITIES
                
Current liabilities:
                
Short-term debt
   $ 6,299     $ 8,622  
Long-term debt due within one year
     5,400       180,400  
Accounts payable
     406,218       534,161  
Federal income taxes payable
     -       199,044  
Salaries, wages and related accruals
     168,729       580,090  
Accrued expenses and other current liabilities
     353,527       351,875  
                 
Total current liabilities
     940,173       1,854,192  
                 
Long-term debt due after one year
     3,086,200       3,086,200  
                 
Deferred credits and other liabilities
     695,613       677,370  
                 
Total liabilities
     4,721,986       5,617,762  
                 
EQUITY
                
Nucor stockholders' equity:
                
Common stock
     149,654       149,628  
Additional paid-in capital
     1,641,678       1,629,981  
Retained earnings
     7,560,360       7,860,629  
Accumulated other comprehensive loss,
               
net of income taxes
     (249,055 )     (190,262 )
Treasury stock
     (1,515,387 )     (1,520,772 )
      7,587,250       7,929,204  
Noncontrolling interests
     277,238       327,477  
                 
Total equity
     7,864,488       8,256,681  
                 
Total liabilities and equity
   $ 12,586,474     $ 13,874,443  
 
Page 4 of 5
  
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 RESULTS FOR FIRST QUARTER OF 2009 (Continued)
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
 
   
Three Months (13 Weeks) Ended
  
   
April 4, 2009
    
March 29, 2008
  
             
Operating activities:
            
Net earnings (loss)
   $ (190,525 )   $ 501,525  
Adjustments:
                
Depreciation
     119,699       109,662  
Amortization
     18,142       13,411  
Stock-based compensation
     10,225       9,635  
Deferred income taxes
     (51,693 )     (8,663 )
Settlement of derivative hedges
     (13,355 )     (283 )
Changes in assets and liabilities (exclusive of acquisitions):
                
Accounts receivable
     292,398       33,005  
Inventories
     522,744       8,014  
Accounts payable
     (127,657 )     16,245  
Federal income taxes
     (204,553 )     189,411  
Salaries, wages and related accruals
     (404,173 )     (162,496 )
Other
     42,742       (41,987 )
                 
Cash provided by operating activities
     13,994       667,479  
                 
Investing activities:
                
Capital expenditures
     (125,966 )     (226,238 )
Investment in affiliates
     (8,468 )     (17,118 )
Disposition of plant and equipment
     2,234       1,250  
Acquisitions (net of cash acquired)
     -       (1,402,179 )
Purchases of investments
     -       (209,605 )
Proceeds from the sale of investments
     -       392,055  
                 
Cash used in investing activities
     (132,200 )     (1,461,835 )
                 
Financing activities:
                
Net change in short-term debt
     (2,320 )     (10,501 )
Proceeds from issuance of long-term debt
     -       400,000  
Repayment of long-term debt
     (175,000 )     -  
Issuance of common stock
     1,028       6,158  
Excess tax benefits from stock-based compensation
     (700 )     7,300  
Distributions to noncontrolling interests
     (49,339 )     (91,993 )
Cash dividends
     (110,514 )     (176,556 )
                 
Cash provided by (used in) financing activities
     (336,845 )     134,408  
                 
Decrease in cash and cash equivalents
     (455,051 )     (659,948 )
                 
Cash and cash equivalents - beginning of year
     2,355,130       1,393,943  
                 
Cash and cash equivalents - end of three months
   $ 1,900,079     $ 733,995  

Page 5 of 5
  
Nucor Executive Offices:    1915 Rexford Road,  Charlotte, North Carolina   28211
Phone 704-366-7000    Fax 704-362-4208    www.nucor.com