Nucor Reports 1999 Results and Record Quarterly Earnings

CHARLOTTE, N.C., Feb. 9 /PRNewswire/ -- Nucor Corporation's (NYSE: NUE) consolidated sales for 1999 were $4,009,000,000, compared with $4,151,000,000 in 1998. Nucor's consolidated net earnings were $244,600,000 ($2.80 per share), compared with $263,700,000 ($3.00 per share) in 1998.

In the fourth quarter of 1999, Nucor's consolidated sales were $1,092,000,000, compared with $873,000,000 in last year's fourth quarter. Net earnings for this year's fourth quarter were a record $97,600,000 ($1.12 per share), compared with $61,200,000 ($.70 per share) in the fourth quarter of 1998.

Pre-operating and start-up costs of new facilities decreased to $42,800,000 in 1999, compared with $72,400,000 in 1998. For the fourth quarter of 1999, pre-operating and start-up costs decreased to $6,200,000, compared with $37,600,000 in the fourth quarter of 1998.

Steel production in 1999 was 10,376,000 tons, compared with 9,642,000 tons produced in 1998. Total steel shipments were 10,122,000 tons in 1999, compared with 9,445,000 tons in 1998. Steel sales to outside customers were 8,734,000 tons, compared with 8,162,000 tons in 1998. Steel joist production for 1999 was 616,000 tons, compared with 600,000 tons a year earlier. Steel deck sales were 375,000 tons, compared with 342,000 tons in 1998. Cold finished steel sales were 243,000 tons, compared with 261,000 tons in 1998.

"Earnings in the fourth quarter were a record for Nucor, and the fourth quarter was also the second best in shipments in Nucor's history," said David Aycock, Nucor's Chairman and Chief Executive Officer. "Business conditions improved significantly for Nucor in the fourth quarter and we expect 2000 to be a record year."

Construction is continuing satisfactorily at Nucor's new 1,000,000 tons- per-year steel plate mill in Hertford County, North Carolina. This facility will cost over $350,000,000, and start up is expected early in the third quarter. Construction is nearly complete on Nucor's third building systems facility, located in Terrell, Texas, with start up anticipated in the second quarter.

Construction is continuing satisfactorily on the second caster addition at the steel sheet mill in Berkeley County, South Carolina. This addition will cost more than $40,000,000 and will increase this mill's hot-band capacity from 1,500,000 tons to 2,300,000 tons per year. Start-up is expected in the third quarter of this year. Construction will begin soon on a second cold rolling facility at Berkeley County, increasing this mill's cold rolled steel capacity from 750,000 tons to 1,500,000 tons per year, at a cost of about $40,000,000. Start-up should be late this year.

Nucor is actively searching for a site for the previously announced Vulcraft facility in the northeast United States to produce steel joists, joist girders, and steel deck. This facility should cost about $50,000,000 and construction will start after satisfactory resolution of site location, regulatory approvals, tax matters, utility contracts, and equipment contracts.

Nucor is the largest recycler in the United States. Nucor and affiliates are manufacturers of steel products, with operating facilities in eight states. Products include: carbon and alloy steel, steel joists and joist girders, steel deck, cold finished steel, steel grinding balls, steel fasteners, metal building systems, and steel bearing products.

                       Year Ended December 31,  Quarter Ended December 31,
                         1999         1998           1999            1998

    NET SALES       $4,009,346,082 $4,151,232,283 $1,091,668,870 $873,058,665

    COSTS AND EXPENSES:
     Cost of
      products sold  3,480,478,687  3,591,782,838    900,874,709  746,519,663
     Marketing,
      administrative
      and other
      expenses         154,773,600    147,973,101     44,078,481   28,391,230
     Interest expense
      (income)          (5,095,299)    (3,832,252)    (2,890,843)    (771,388)
                     3,630,156,988  3,735,923,687    942,062,347  774,139,505
    EARNINGS BEFORE
     FEDERAL INCOME
     TAXES             379,189,094    415,308,596    149,606,523   98,919,160
      Federal income
       taxes           134,600,000    151,600,000     52,000,000   37,700,000

      NET EARNINGS    $244,589,094   $263,708,596    $97,606,523  $61,219,160

    NET EARNINGS PER SHARE   $2.80          $3.00          $1.12         $.70

    Average shares
     outstanding        87,247,160     87,861,501     87,098,763   87,431,438

SOURCE Nucor Corporation
CONTACT: Nucor Corporation, 704-366-7000