UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

-------------------------

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): April 23, 2015

 

NUCOR CORPORATION

 

(Exact name of registrant as specified in its charter)

 

Delaware

 

(State or other jurisdiction of incorporation)

 

1-4119   13-1860817
     
(Commission File Number)   (IRS Employer Identification No.)

 

1915 Rexford Road, Charlotte, North Carolina   28211
     
(Address of principal executive offices)   (Zip Code)

 

Registrant's telephone number, including area code: (704) 366-7000

 

N/A

(Former name or former address, if changed since last report.)

-------------------------

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
 

 

Item 2.02 Results of Operations and Financial Condition

 

On April 23, 2015, Nucor Corporation issued a news release reporting its financial results for the fiscal quarter ended April 4, 2015. A copy of the news release is furnished as Exhibit 99.1 and incorporated herein by reference.

 

The information contained in this Current Report on Form 8-K, including the exhibit attached hereto, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Furthermore, the information contained in this Current Report on Form 8-K shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.

 

 

Item 9.01 Financial Statements and Exhibits

 

(d) Exhibits

 

99.1 News Release of Nucor Corporation, issued April 23, 2015

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  NUCOR CORPORATION
   
  By:  /s/ James D. Frias
    James D. Frias
Chief Financial Officer, Treasurer and Executive Vice President

  

Dated: April 23, 2015

 

 
 

 

 

INDEX TO EXHIBITS

 

Exhibit No. Description
   
99.1 News Release of Nucor Corporation, issued April 23, 2015

 

 

 

 

Exhibit 99.1

Nucor Reports Results for First Quarter of 2015

CHARLOTTE, N.C., April 23, 2015 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $67.8 million, or $0.21 per diluted share, for the first quarter of 2015. By comparison, Nucor reported net earnings of $111.0 million, or $0.35 per diluted share, for the first quarter of 2014 and net earnings of $210.4 million, or $0.65 per diluted share, for the fourth quarter of 2014.

Earnings (loss) before income taxes and noncontrolling interests by segment were as follows for the first quarter of 2015 and 2014 (in thousands):










Three Months (13 Weeks) Ended




April 4, 2015


April 5, 2014








Steel mills


$              217,128


$                    317,797


Steel products


32,458


1,720


Raw materials


(41,497)


8,359


Corporate/eliminations


(89,044)


(120,375)




$              119,045


$                    207,501













Nucor's results include a credit of $16.5 million ($0.03 per diluted share) to value inventories using the last-in, first-out (LIFO) method of accounting. The credit is compared with a charge of $14.5 million ($0.03 per diluted share) in the first quarter of 2014 and a credit of $57.3 million ($0.11 per diluted share) in the fourth quarter of 2014. Included in the fourth quarter of 2014 results were $8.9 million ($0.02 per diluted share) of non-cash inventory related purchase accounting charges associated with the acquisition of Nucor Steel Gallatin and a $13.2 million ($0.04 per diluted share) out-of-period non-cash gain related to a correction to tax balances. Included in the first quarter of 2014 earnings was a $12.8 million ($0.04 per diluted share) charge primarily related to tax legislation changes in the state of New York. Also included in first quarter of 2014 results was a $9.0 million charge ($0.02 per diluted share) related to the disposal of assets within the steel mills segment.

Nucor's consolidated net sales decreased 14% to $4.40 billion in the first quarter of 2015 from $5.11 billion in the first quarter of 2014 and decreased 12% compared with $5.00 billion in the fourth quarter of 2014. Average sales price per ton in the first quarter of 2015 decreased 5% from both the first quarter of 2014 and the fourth quarter of 2014. Total tons shipped to outside customers were 5,635,000 tons in the first quarter of 2015, a 9% decrease from the first quarter of 2014 and a 7% decrease from the fourth quarter of 2014. Total first quarter steel mill shipments decreased 10% from the first quarter of 2014 and decreased 8% from the fourth quarter of 2014. First quarter downstream steel products shipments to outside customers increased 1% over the first quarter of 2014 and decreased 4% from the fourth quarter of 2014.

The average scrap and scrap substitute cost per ton used during the first quarter of 2015 was $324, a decrease of 19% from $398 in the first quarter of 2014 and a decrease of 11% compared to $363 in the fourth quarter of 2014. We expect to further benefit from the large decrease in scrap prices that occurred in February during the second quarter of 2015, as we finish consuming scrap and pig iron purchased before the February price correction.

Overall operating rates at our steel mills decreased to 65% in the first quarter of 2015 as compared to 75% in the first quarter of 2014 and 76% in the fourth quarter of 2014.

Total steel mill energy costs in the first quarter of 2015 decreased approximately $3 per ton compared to the first quarter of 2014 and increased approximately $2 per ton compared to the fourth quarter of 2014. The decrease from the first quarter of 2014 was primarily due to lower natural gas unit costs. The increase from the fourth quarter of 2014 was due to reduced electricity productivity caused by lower steel mill utilization rates and slightly higher electricity unit costs.

Our liquidity position remains strong with $1.27 billion in cash and cash equivalents and short-term investments and an untapped $1.5 billion revolving credit facility that does not expire until August 2018. Nucor had no commercial paper outstanding at the end of the first quarter of 2015.

In February, Nucor's board of directors declared a cash dividend of $0.3725 per share payable on May 11, 2015 to stockholders of record on March 31, 2015. This dividend is Nucor's 168th consecutive quarterly cash dividend, a record we expect to continue.

Nucor Steel Louisiana successfully resumed operations late in the first quarter following completion of repairs related to the failure of the process gas heater that occurred on November 2, 2014. The restart of the direct reduced iron (DRI) facility has progressed as planned. The facility is once again producing DRI at the world class level of quality we expect and is regularly operating at 85% of capacity.

As expected, overall operating performance at the steel mills segment for the first quarter of 2015 decreased significantly compared to the fourth quarter of 2014. This lower performance is primarily due to lower selling prices and margins resulting from the exceptionally high level of steel imports flooding the domestic market. It is estimated that imports accounted for 33% of the finished steel market in the first quarter of 2015. Import levels in February and March were lower than the peak in January, but remain at the exceptionally high levels experienced during most of 2014. We anticipate selling prices to remain under pressure as the flood of imports continues in the second quarter of 2015. Global overcapacity built by foreign, state-owned enterprises continues to be a significant risk factor to our business.

Automotive markets remain strong and we continue to see improving demand in nonresidential construction markets. Conditions remain challenging in energy markets, in which the collapse in oil prices and continued high levels of imported oil country tubular goods products has caused an inventory glut in the pipe and tube sector. We cannot determine when these conditions will improve, but once energy market steel inventories are rebalanced we expect overall steel demand to meet or exceed levels seen in 2014.

The overall operating performance of the downstream products segment for the first quarter of 2015 decreased from the fourth quarter of 2014 due to typical seasonality experienced in the first quarter; however, the results of the downstream products segment in the first quarter of 2015 increased over the first quarter of 2014 due to both lower input costs and improved volumes. The operating performance of the raw materials segment for the first quarter of 2015 decreased from the fourth quarter of 2014 due to a larger operating loss of approximately $44 million ($0.09 per diluted share) at Nucor Steel Louisiana and decreased performance of our scrap processing business and natural gas drilling working interests.

Earnings in the second quarter of 2015 are expected to be somewhat improved from the first quarter of 2015. Although margins in the steel mills segment are expected to improve, they will remain under pressure during the second quarter of 2015 as selling prices have not yet fully stabilized and imports remain at exceptionally high levels. This pricing pressure is expected to mitigate the benefits of lower average raw materials costs in the second quarter. We expect much better performance in the downstream products segment in the second quarter of 2015. The performance of the raw materials segment is expected to decrease in the second quarter of 2015 due to a planned one month outage at our DRI facility in Trinidad. We anticipate an operating loss similar to the first quarter of 2015 at Nucor Steel Louisiana, which, due to the extended length of the time the facility was not operating, will work through higher cost iron ore inventory that was purchased in 2014. Performance in the second half of 2015 is expected to further improve on the strength of continuing improvement in nonresidential construction and its impact on our downstream products businesses and steel mills. Additionally, steel pricing is expected to stabilize and rebound as service center destocking runs its course.

Nucor and its 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 piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating and expanded metal; and wire and wire mesh. Nucor, through The David J. Joseph Company, 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. The words "believe," "expect," "project," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. 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) competitive pressure on sales and pricing, including competition from imports and substitute materials; (2) 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; (3) market demand for steel products; and (4) energy costs and availability. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's fiscal 2014 Annual Report on Form 10-K, Item 1A. Risk Factors. 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, 2015 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) 












 Three Months (13 Weeks) Ended 




April 4, 2015


April 5, 2014


Percentage
Change

Steel mills production


4,758


5,194


-8%

Steel mills total shipments


4,887


5,432


-10%









Sales tons to outside customers:








Steel mills


4,165


4,600


-9%


Joist


89


92


-3%


Deck


82


87


-6%


Cold finished


130


138


-6%


Fabricated concrete








reinforcing steel


262


239


10%


Other


907


1,033


-12%




5,635


6,189


-9%









CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(In thousands, except per share data)






  Three Months (13 Weeks) Ended  






April 4, 2015


April 5, 2014





Net sales

$   4,399,440


$         5,108,444





Costs, expenses and other:




  Cost of products sold

4,111,158


4,731,242

  Marketing, administrative and other expenses

124,561


133,434

  Equity in losses (earnings) of unconsolidated affiliates

259


(4,474)

  Interest expense, net

44,417


40,741


4,280,395


4,900,943

Earnings before income taxes and




noncontrolling interests

119,045


207,501

Provision for income taxes

34,753


77,805

Net earnings

84,292


129,696

Earnings attributable to




noncontrolling interests

16,492


18,665

Net earnings attributable to 




Nucor stockholders

$         67,800


$            111,031





Net earnings per share:




  Basic

$0.21


$0.35

  Diluted

$0.21


$0.35





Average shares outstanding:




  Basic

320,315


319,505

  Diluted

320,483


319,768





 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) 

 (In thousands) 














April 4, 2015


Dec. 31, 2014

 ASSETS 






 Current assets: 






 Cash and cash equivalents 


$      1,165,864


$     1,024,144


 Short-term investments 


100,000


100,000


 Accounts receivable, net 


1,711,101


2,068,298


 Inventories, net 


2,405,916


2,745,032


 Other current assets 


480,108


504,414











 Total current assets 


5,862,989


6,441,888









 Property, plant and equipment, net 


5,184,235


5,287,639









 Goodwill 



2,043,315


2,068,664









 Other intangible assets, net 


834,805


862,093









 Other assets 


930,094


955,643











 Total assets 


$    14,855,438


$   15,615,927









 LIABILITIES 






 Current liabilities: 






 Short-term debt 


$            26,891


$        207,476


 Long-term debt due within one year 


16,300


16,335


 Accounts payable 


746,184


993,872


 Salaries, wages and related accruals 


225,600


352,488


 Accrued expenses and other current liabilities 


509,831


527,605











 Total current liabilities 


1,524,806


2,097,776









 Long-term debt due after one year 


4,360,600


4,360,600









 Deferred credits and other liabilities 


1,064,361


1,082,433











 Total liabilities 


6,949,767


7,540,809









 EQUITY 






 Nucor stockholders' equity: 






 Common stock 


151,242


151,237


 Additional paid-in capital 


1,890,886


1,883,356


 Retained earnings 


7,326,244


7,378,214


 Accumulated other comprehensive loss, 







 net of income taxes 


(264,503)


(145,708)


 Treasury stock 


(1,492,357)


(1,494,629)



 Total Nucor stockholders' equity 


7,611,512


7,772,470









 Noncontrolling interests 


294,159


302,648











 Total equity 


7,905,671


8,075,118











 Total liabilities and equity 


$    14,855,438


$   15,615,927

















 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 

 (In thousands) 
















Three Months (13 Weeks) Ended
















April 4, 2015


April 5, 2014










Operating activities:







Net earnings 



$                          84,292


$                       129,696


Adjustments:








Depreciation



157,934


161,480



Amortization



18,655


18,432



Stock-based compensation


6,453


6,088



Deferred income taxes


(10,173)


8,312



Equity in losses (earnings) of unconsolidated affiliates

259


(4,474)



Loss on assets



-


9,046



Changes in assets and liabilities (exclusive of acquisitions and dispositions):







Accounts receivable


343,497


(97,183)




Inventories



330,842


(123,145)




Accounts payable


(237,847)


7,489




Federal income taxes


39,397


56,526




Salaries, wages and related accruals

(122,226)


(59,147)




Other operating activities


(47,389)


36,094










Cash provided by operating activities


563,694


149,214










Investing activities:







Capital expenditures



(77,523)


(258,058)


Investment in and advances to affiliates

(20,776)


(7,105)


Repayment of advances to affiliates


-


3,000


Disposition of plant and equipment


2,604


4,540


Acquisitions (net of cash acquired)


-


(1,408)


Purchases of investments


(100,000)


(100,000)


Proceeds from the sale of investments


100,000


27,529


Other investing activities


1,870


-










Cash used in investing activities


(93,825)


(331,502)










Financing activities:







Net change in short-term debt


(180,239)


(2,130)


Issuance of common stock


423


-


Excess tax benefits from stock-based compensation

200


300


Distributions to noncontrolling interests

(24,980)


(24,794)


Cash dividends



(119,712)


(118,680)


Other financing activities


(537)


(601)










Cash used in financing activities 


(324,845)


(145,905)










Effect of exchange rate changes on cash


(3,304)


(2,517)










Increase (decrease) in cash and cash equivalents

141,720


(330,710)










Cash and cash equivalents - beginning of year

1,024,144


1,483,252










Cash and cash equivalents - end of three months

$                   1,165,864


$                   1,152,542










Non-cash investing activity:







Change in accrued plant and equipment purchases

$                           (7,812)


$                        (60,864)












CONTACT: For Investor/Analyst Inquiries: Gregg Lucas 704-972-1841, For Media Inquiries: Katherine Miller 704-353-9015