EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

LOGO   News Release

 

NUCOR REPORTS RECORD RESULTS FOR 2005

 

CHARLOTTE, NORTH CAROLINA, January 27, 2006 – Nucor Corporation (NYSE: NUE) announced today record consolidated net earnings and sales for 2005. Nucor’s consolidated net earnings for 2005 were $1.31 billion ($8.26 per diluted share), an increase of 17% over net earnings of $1.12 billion ($7.02 per diluted share) in 2004. Consolidated net earnings of $341.0 million ($2.18 per diluted share) in this year’s fourth quarter were flat compared with $341.4 million ($2.12 per diluted share) earned in the fourth quarter of 2004 and increased 17% from the $291.9 million ($1.86 per diluted share) earned in the third quarter of 2005. Fourth quarter earnings per share improved 3% over the fourth quarter of 2004 primarily due to a smaller number of shares outstanding during the quarter.

 

Nucor’s consolidated net sales for 2005 increased 12% to $12.70 billion, compared with $11.38 billion in 2004. Average sales price per ton increased 4% while total tons shipped to outside customers increased 7% from 2004. In the fourth quarter of 2005, Nucor’s consolidated net sales increased 4% to $3.21 billion, compared with $3.09 billion in the fourth quarter of 2004 and increased 6% compared with $3.03 billion from the third quarter of 2005. Average sales price per ton decreased 10% from the fourth quarter of 2004 and increased 10% from the third quarter of 2005. Total tons shipped to outside customers were 5,089,000 tons in the fourth quarter of 2005, an increase of 15% over the fourth quarter of 2004 and a decrease of 4% from the third quarter of 2005.

 

The average scrap and scrap substitute cost per ton used increased 3% from $238 in 2004 to $244 in 2005, decreased 14% from $278 in the fourth quarter of 2004 to $240 in the fourth quarter of 2005, and increased 11% from $217 in the third quarter of 2005. Total energy costs increased approximately $7 per ton from 2004 to 2005, increased approximately $10 per ton from the fourth quarter of 2004 to the fourth quarter of 2005, and increased approximately $3 per ton from the third quarter of 2005 to the fourth quarter of 2005. Nucor is partially hedged against exposure to increases in energy costs.

 

Nucor incurred a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $151.6 million in 2005, compared with a charge of $375.9 million in 2004. In the fourth quarter of 2005, the LIFO credit was $3.6 million, compared with a charge of $152.5 million in the fourth quarter of 2004, and a credit of $52.0 million in the third quarter of 2005. The fourth quarter LIFO credit was well below our forecast of $50.0 million.

 

In 2005, Nucor established company records in its steel mills segment for steel production, total steel shipments and steel sales to outside customers. Steel production was 20,332,000 tons, compared with 19,737,000 tons produced in 2004, an increase of 3%. Total steel shipments increased 6% to 20,669,000 tons in 2005, compared with 19,464,000 tons in 2004. Based on the strength of our bar, plate and beam products, steel shipments to outside customers increased 7% to 19,020,000 tons in 2005, compared with 17,787,000 tons in 2004. In the steel products segment, steel joist production during 2005 increased to 554,000 tons, compared with 522,000 tons in 2004. Steel deck sales increased to a record 380,000 tons in 2005, compared with 364,000 tons in 2004. Cold finished steel sales increased to a record 342,000 tons, compared with 271,000 tons in 2004.

 

Page 1 of 5

 

Nucor Executive Offices:        2100 Rexford Road, Charlotte, North Carolina 28211

Phone 704-366-7000        Fax 704-362-4208        www.nucor.com

 

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NUCOR REPORTS RECORD RESULTS FOR 2005 (Continued)

 

In 2005, Nucor increased its base dividend and paid a quarterly supplemental dividend, resulting in dividend payments tripling from $69.7 million in 2004 to $209.8 million in 2005. We recently announced an additional increase in the supplemental dividend to $0.50 per share for a total dividend of $0.65 per share to be paid in the first quarter of 2006, compared with the total dividend of $0.40 per share paid in the fourth quarter of 2005.

 

Nucor repurchased approximately 845,000 shares of Nucor’s common stock at a cost of approximately $46.1 million under a publicly announced stock repurchase program during the fourth quarter of 2005, and repurchased approximately 5.6 million shares at a cost of about $291.2 million during 2005. Approximately 12.9 million shares remain authorized for repurchase.

 

Nucor expects that the first quarter of 2006 will be another strong quarter, as we continue to benefit from product line diversification. We expect that overall demand and margins for our products will remain strong and that earnings will be in the range of $1.90 to $2.10 per diluted share.

 

Nucor and affiliates are manufacturers of steel products, with operating facilities in sixteen states. Products produced are: carbon and alloy steel – in bars, beams, sheet and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; metal building systems; and light gauge steel framing. Nucor is the nation’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, 2004 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 fourth quarter results on January 27, 2006 at 2:00 pm eastern time. The conference call will be available over the Internet at www.nucor.com, under Investor Relations/Investor Information.

 

Page 2 of 5

 

Nucor Executive Offices:        2100 Rexford Road, Charlotte, North Carolina 28211

Phone 704-366-7000        Fax 704-362-4208        www.nucor.com

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NUCOR REPORTS RECORD RESULTS FOR 2005 (Continued)

 

Unaudited figures are as follows:

 

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(In thousands, except per share data)

 

     Year Ended December 31,
     Quarter Ended December 31,
     2005
     2004
     2005
     2004

NET SALES

      $12,700,999       $11,376,828       $3,207,464       $3,088,998
    
 
 
 

COSTS, EXPENSES AND OTHER:

                               

Cost of products sold

      10,085,396       9,128,872       2,509,400       2,445,069

Marketing, administrative and

                               

other expenses

      493,560       415,030       147,382       96,052

Interest expense (income), net

      4,201       22,352       (3,195 )     4,521

Minority interests

      110,674       80,894       34,079       20,547

Other income

      (9,200 )     (1,596 )     —         —  
    
 
 
 
       10,684,631       9,645,552       2,687,666       2,566,189
    
 
 
 

EARNINGS BEFORE

                               

INCOME TAXES

      2,016,368       1,731,276       519,798       522,809

Provision for income taxes

      706,084       609,791       178,764       181,391
    
 
 
 

NET EARNINGS

    $ 1,310,284     $ 1,121,485     $ 341,034     $ 341,418
    
 
 
 

NET EARNINGS PER SHARE:

                               

Basic

    $ 8.34     $ 7.08     $ 2.20     $ 2.14
    
 
 
 

Diluted

    $ 8.26     $ 7.02     $ 2.18     $ 2.12
    
 
 
 

AVERAGE SHARES OUTSTANDING:

                               

Basic

      157,128       158,383       154,941       159,268

Diluted

      158,565       159,754       156,433       160,777

 

Page 3 of 5

 

Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211

Phone 704-366-7000 Fax 704-362-4208 www.nucor.com

 

 

LOGO   News Release

 

 

NUCOR REPORTS RECORD RESULTS FOR 2005 (Continued)

 

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands)

 

     Dec. 31, 2005
     Dec. 31, 2004
  

Assets

                 

CURRENT ASSETS:

                 

Cash and short-term investments

    $ 1,837,510     $ 779,049  

Accounts receivable

      1,000,629       962,755  

Inventories

      945,054       1,239,888  

Other current assets

      288,360       193,256  
    
 

Total current assets

      4,071,553       3,174,948  

PROPERTY, PLANT AND EQUIPMENT

      2,855,717       2,818,307  

OTHER ASSETS

      211,517       139,952  
    
 

TOTAL ASSETS

    $ 7,138,787     $ 6,133,207  
    
 

Liabilities and stockholders' equity

                 

CURRENT LIABILITIES:

                 

Long-term debt due within one year

    $ 1,250     $ —  

Accounts payable

      501,624       471,549  

Federal income taxes payable

      —         28,957  

Salaries, wages and related accruals

      368,568       320,276  

Accrued expenses and other current liabilities

      384,257       245,008  
    
 

Total current liabilities

      1,255,699       1,065,790  
    
 

LONG-TERM DEBT DUE AFTER ONE YEAR

      922,300       923,550  
    
 

DEFERRED CREDITS AND OTHER LIABILITIES

      486,910       514,569  
    
 

MINORITY INTERESTS

      194,090       173,313  
    
 

STOCKHOLDERS' EQUITY:

                 

Common stock

      74,120       73,753  

Additional paid-in capital

      191,850       147,206  

Retained earnings

      4,709,111       3,688,555  

Unearned compensation

      (3,287 )     (392 )

Accumulated other comprehensive income (loss), net of income taxes

      46,600       (1,177 )
    
 
       5,018,394       3,907,945  

Treasury stock

      (738,606 )     (451,960 )
    
 

Total stockholders' equity

      4,279,788       3,455,985  
    
 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

    $ 7,138,787     $ 6,133,207  
    
 

 

Page 4 of 5

 

Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211

Phone 704-366-7000 Fax 704-362-4208 www.nucor.com

LOGO   News Release

 

 

NUCOR REPORTS RECORD RESULTS FOR 2005 (Continued)

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

 

     Year Ended December 31,
  
     2005
     2004
  

Operating activities:

                 

Net earnings

    $ 1,310,284     $ 1,121,485  

Adjustments:

                 

Depreciation

      375,054       383,305  

Impairment of assets

      —         13,200  

Deferred income taxes

      (29,379 )     6,693  

Minority interests

      110,663       80,892  

Settlement of natural gas hedges

      12,365       —    

Changes in (exclusive of acquisitions):

                 

Accounts receivable

      (19,425 )     (354,897 )

Inventories

      337,862       (635,641 )

Accounts payable

      17,259       130,604  

Federal income taxes

      (68,331 )     35,403  

Salaries, wages and related accruals

      46,376       228,203  

Other

      43,887       15,509  
    
 

Cash provided by operating activities

      2,136,615       1,024,756  
    
 

Investing activities:

                 

Capital expenditures

      (331,466 )     (285,925 )

Investment in affiliates

      (41,903 )     (82,458 )

Disposition of plant and equipment

      752       3,094  

Acquisitions (net of cash acquired)

      (154,864 )     (169,646 )
    
 

Cash used in investing activities

      (527,481 )     (534,935 )
    
 

Financing activities:

                 

Proceeds from long-term debt

      —         20,000  

Issuance of common stock

      40,209       68,630  

Distributions to minority interests

      (89,886 )     (84,858 )

Cash dividends

      (209,752 )     (69,676 )

Acquisition of treasury stock

      (291,244 )     —    

Termination of interest rate swap agreement

      —         4,800  
    
 

Cash used in financing activities

      (550,673 )     (61,104 )
    
 

Increase in cash and short-term investments

      1,058,461       428,717  

Cash and short-term investments—beginning of year

      779,049       350,332  
    
 

Cash and short-term investments—end of year

    $ 1,837,510     $ 779,049  
    
 

 

Page 5 of 5

 

Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211

Phone 704-366-7000 Fax 704-362-4208 www.nucor.com