CHARLOTTE, N.C., July 23 /PRNewswire-FirstCall/ -- Nucor
Corporation (NYSE:NUE) announced today a consolidated net loss of
$133.3 million, or $0.43 per diluted share, for the second quarter
of 2009, compared to a net loss of $189.6 million, or $0.60 per
diluted share, in the first quarter of 2009, an improvement of 30%.
The results compare to net income of $580.8 million, or $1.94 per
diluted share, in the second quarter of 2008. In the first half of
2009, Nucor reported a consolidated net loss of $323.0 million, or
$1.03 per diluted share, compared with net earnings of $990.5
million, or $3.36 per diluted share, in the first half of last
year. In the second quarter of 2009, Nucor's consolidated net sales
decreased 7% to $2.48 billion compared with $2.65 billion in the
first quarter of 2009 and decreased 65% compared with $7.09 billion
in the second quarter of 2008. Average sales price per ton
decreased 16% from the first quarter of 2009 and decreased 34% from
the second quarter of 2008. Total tons shipped to outside customers
were 4,116,000 tons in the second quarter of 2009, an increase of
11% over the first quarter of 2009 and a decrease of 47% from the
second quarter of 2008. In the first half of 2009, Nucor's
consolidated net sales decreased 57% to $5.13 billion, compared
with $12.06 billion in last year's first half. Average sales price
per ton decreased 23% while total tons shipped to outside customers
decreased 45% from the first half of 2008. The average scrap and
scrap substitute cost per ton used in the second quarter of 2009
was $312, a decrease of 6% compared with $333 in the first quarter
of 2009 and a decrease of 32% from $456 in the second quarter of
2008. The average scrap and scrap substitute cost per ton used in
the first half of 2009 was $322, a decrease of 19% from $396 in the
first half of 2008. Nucor recorded a credit to value inventories
using the last-in, first-out (LIFO) method of accounting of $125.0
million in the second quarter of 2009, compared with a credit of
$105.0 million in the first quarter of 2009 and a charge of $214.0
million in the second quarter of 2008. The LIFO credit in the first
half of 2009 was $230.0 million, compared with a charge of $283.0
million in the first half of 2008. Overall steel mill utilization
increased slightly from 45% in the first quarter of 2009 to 46% in
the second quarter of 2009, and decreased from 95% in last year's
second quarter. Utilization rates decreased from 94% in the first
half of 2008 to 46% in the first half of 2009. Monthly steel mill
utilization rates increased each month during the second quarter,
improving from 38% in April to 54% in June. This improvement
reversed the first quarter trend in which utilization rates
decreased each month. Total energy costs decreased approximately $4
per ton from the first quarter of 2009 due to decreased energy
costs driven by lower natural gas prices combined with the slight
increase in overall utilization. Total energy costs increased
approximately $5 per ton from the second quarter of 2008 to the
second quarter of 2009 and increased $8 per ton from the first half
of 2008 to the first half of 2009 as a result of decreased
utilization during the period. As expected and as discussed in our
guidance, second quarter results include a substantially greater
burden than the first quarter from the accelerated consumption of
high-cost pig iron inventories at our sheet mills. This impact was
partially offset by the strong focus on overall cost reductions by
all members of the Nucor team. We expect the overhang from the
high-cost pig iron will continue to impact our results through the
third quarter. If we continue to see improvement in order entry and
operating rates, our raw material destocking process would be
accelerated with a corresponding improvement in earnings. At The
David J. Joseph Company ("DJJ"), total volumes in the second
quarter (both scrap processing and brokerage) were approximately
50% of the prior year; however, in both cases, the volumes improved
each month of the quarter and show a strong start to the third
quarter. In our downstream businesses, conditions continue to be
challenging and recovery is expected to lag Nucor's other
businesses. All of Nucor's team members continue to capitalize on
Nucor's position of strength arising from our balance sheet,
low-cost and highly flexible production capabilities, unrivaled
product diversification and, most importantly, Nucor's extremely
productive and innovative work force. Our liquidity position
remains strong with $2.20 billion in cash and cash equivalents and
short-term investments and an untapped $1.3 billion revolving
credit facility that matures in November 2012. In June, Nucor's
board of directors declared a cash dividend of $0.35 per share
payable on August 11, 2009 to stockholders of record on June 30,
2009. This dividend is Nucor's one-hundred forty-fifth consecutive
quarterly cash dividend, a record we expect to continue. The third
quarter outlook suggests that, in spite of the continued strong
negative impact of finishing up our high-cost pig iron inventories,
we should see further earnings improvement in the quarter; however,
the uncertainty in our economy is still very high. Currently we are
concerned that the marginal uptick in orders is not representative
of an increase in "real" demand but more a result of both inventory
adjustments and concern over rising prices. We will again provide
quantitative guidance after the midpoint between our quarterly
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 the largest recycler in North America.
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 second quarter results on
July 23, 2009 at 2:00 p.m. eastern time. The conference call will
be available over the Internet at http://www.nucor.com/, under
Investor Relations. TONNAGE DATA ---------------- (in thousands)
------------------ Three Months (13 Weeks) Ended
--------------------------------- Percentage July 4, 2009 June 28,
2008 Change ------------ ------------- ---------- Steel Mills:
Production 2,964 6,043 -51% Total shipments 2,999 6,117 -51%
Outside shipments 2,569 5,394 -52% Steel Products: Joist production
65 140 -54% Deck sales 73 139 -47% Cold finished sales 76 143 -47%
Fabricated concrete reinforcing steel sales 255 232 10% Six Months
(26 Weeks) Ended -------------------------------- Percentage July
4, 2009 June 28, 2008 Change ------------ ------------- ----------
Steel Mills: Production 5,843 11,874 -51% Total shipments 5,807
12,068 -52% Outside shipments 5,002 10,597 -53% Steel Products:
Joist production 125 272 -54% Deck sales 148 255 -42% Cold finished
sales 156 279 -44% Fabricated concrete reinforcing steel sales 463
411 13% Unaudited figures are as follows: CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS (Unaudited)
--------------------------------------------------------- (In
thousands, except per share data) Three Months (13 Weeks) Six
Months (26 Weeks) Ended Ended -------------------------
----------------------- July 4, 2009 June 28, 2008 July 4, 2009
June 28, 2008 ------------ ------------- ------------ -------------
NET SALES $2,478,028 $7,090,599 $5,132,347 $12,064,868 ----------
---------- ---------- ----------- Costs, expenses and other: Cost
of products sold 2,539,904 5,879,655 5,318,228 9,951,247 Marketing,
administrative and other expenses 106,925 220,172 232,301 389,886
Interest expense, net 31,957 26,734 64,322 45,079 ---------
--------- --------- ---------- 2,678,786 6,126,561 5,614,851
10,386,212 --------- --------- --------- ---------- Earnings (loss)
before income taxes and noncontrolling interests (200,758) 964,038
(482,504) 1,678,656 Provision for (benefit from) income taxes
(72,989) 295,348 (164,210) 508,441 ------- ------- -------- -------
Net earnings (loss) (127,769) 668,690 (318,294) 1,170,215 Earnings
attributable to noncontrolling interests 5,568 87,936 4,688 179,707
--------- -------- --------- -------- Net earnings (loss)
attributable to Nucor stockholders $(133,337) $580,754 $(322,982)
$990,508 ========= ======== ========= ======== NET EARNINGS PER
SHARE: Basic ($0.43) $1.94 ($1.03) $3.37 ====== ===== ====== =====
Diluted ($0.43) $1.94 ($1.03) $3.36 ====== ===== ====== =====
AVERAGE SHARES OUTSTANDING: Basic 314,752 298,262 314,532 293,291
Diluted 314,752 298,668 314,532 294,051 CONDENSED CONSOLIDATED
BALANCE SHEETS (Unaudited)
--------------------------------------------------- (In thousands)
July 4, 2009 December 31, 2008 ------------ -----------------
ASSETS Current assets: Cash and cash equivalents $2,060,203
$2,355,130 Short-term investments 136,389 - Accounts receivable,
net 960,226 1,228,807 Inventories 1,268,200 2,408,157 Other current
assets 502,810 405,392 ----------- ----------- Total current assets
4,927,828 6,397,486 Property, plant and equipment, net 4,117,542
4,131,861 Goodwill 1,776,207 1,732,045 Other intangible assets, net
922,340 946,545 Other assets 667,130 666,506 -----------
----------- Total assets $12,411,047 $13,874,443 ===========
=========== LIABILITIES Current liabilities: Short-term debt $5,942
$8,622 Long-term debt due within one year 5,400 180,400 Accounts
payable 413,347 534,161 Federal income taxes payable - 199,044
Salaries, wages and related accruals 181,006 580,090 Accrued
expenses and other current liabilities 343,492 351,875 ----------
---------- Total current liabilities 949,187 1,854,192 ----------
----------- Long-term debt due after one year 3,086,200 3,086,200
----------- ----------- Deferred credits and other liabilities
671,416 677,370 ----------- ----------- Total liabilities 4,706,803
5,617,762 ----------- ----------- EQUITY Nucor stockholders'
equity: Common stock 149,810 149,628 Additional paid-in capital
1,655,252 1,629,981 Retained earnings 7,316,054 7,860,629
Accumulated other comprehensive loss, net of income taxes (151,203)
(190,262) Treasury stock (1,514,695) (1,520,772) -----------
----------- 7,455,218 7,929,204 Noncontrolling interests 249,026
327,477 ----------- ----------- Total equity 7,704,244 8,256,681
----------- ----------- Total liabilities and equity $12,411,047
$13,874,443 =========== =========== CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)
------------------------------------------------ (In thousands) Six
Months (26 Weeks) Ended ---------------------- July 4, 2009 June
28, 2008 ------------ ------------- Operating activities: Net
earnings (loss) $(318,294) $1,170,215 Adjustments: Depreciation
242,475 231,232 Amortization 36,001 32,066 Stock-based compensation
31,660 31,148 Deferred income taxes (31,659) (66,881) Changes in
assets and liabilities (exclusive of acquisitions): Accounts
receivable 278,055 (591,318) Inventories 1,147,421 (570,570)
Accounts payable (121,847) 494,549 Federal income taxes (285,735)
123,517 Salaries, wages and related expenses (392,276) (14,505)
Other 51,323 (11,214) --------- ---------- Cash provided by
operating activities 637,124 828,239 --------- ---------- Investing
activities: Capital expenditures (240,428) (501,669) Investment in
and advances to affiliates (57,904) (27,903) Disposition of plant
and equipment 8,610 6,551 Acquisitions (net of cash acquired)
(24,714) (1,591,817) Purchases of investments (136,389) (209,605)
Proceeds from the sale of investments - 392,055 Proceeds from
currency derivative contracts - 1,441,862 Settlement of currency
derivative contracts - (1,424,292) --------- ---------- Cash used
in investing activities (450,825) (1,914,818) --------- ----------
Financing activities: Net change in short-term debt (2,694)
(21,429) Proceeds from the issuance of long- term debt - 989,715
Repayment of long- term debt (175,000) - Issuance of common stock
1,518 1,994,565 Bond issuance costs - (6,937) Excess tax benefits
from stock-based compensation (700) 9,200 Distributions to
noncontrolling interests (83,223) (153,218) Cash dividends
(221,127) (327,380) ---------- ---------- Cash provided by (used
in) financing activities (481,226) 2,484,516 ---------- ----------
Increase (decrease) in cash and cash equivalents (294,927)
1,397,937 Cash and cash equivalents - beginning of year 2,355,130
1,393,943 --------- ---------- Cash and cash equivalents - end of
six months $2,060,203 $2,791,880 ========== ========== DATASOURCE:
Nucor Corporation CONTACT: Nucor Executive Offices,
+1-704-366-7000, or fax, +1-704-362-4208 Web Site:
http://www.nucor.com/
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