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): July 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:

 

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-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 July 23, 2015, Nucor Corporation issued a news release reporting its financial results for the fiscal quarter ended July 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 July 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: July 23, 2015

 

 
 

 

INDEX TO EXHIBITS

 

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

 

 

 

 
Exhibit 99.1
 

Nucor Reports Results for Second Quarter and First Half of 2015

CHARLOTTE, N.C., July 23, 2015 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $124.8 million, or $0.39 per diluted share, for the second quarter of 2015. By comparison, Nucor reported net earnings of $67.8 million, or $0.21 per diluted share, in the first quarter of 2015 and net earnings of $147.0 million, or $0.46 per diluted share, in the second quarter of 2014. Second quarter of 2015 diluted net earnings per share of $0.39 was above our guidance range of $0.20 to $0.25 per diluted share due to better than forecasted performance in the steel mills segment.

In the first half of 2015, Nucor reported consolidated net earnings of $192.6 million, or $0.60 per diluted share, compared with consolidated net earnings of $258.1 million, or $0.80 per diluted share, in the first half of last year.

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




Three Months (13 Weeks) Ended


Six Months (26 Weeks) Ended




July 4, 2015


July 5, 2014


July 4, 2015


July 5, 2014

Earnings (loss) before income








taxes and noncontrolling interests:









Steel mills


$             198,500


$       368,138


$     415,628


$      685,935


Steel products

70,636


42,612


103,094


44,332


Raw materials

(38,104)


(9,635)


(79,601)


(1,276)


Corporate/eliminations

(14,810)


(159,250)


(103,854)


(279,625)




$             216,222


$       241,865


$     335,267


$      449,366

Nucor's results include a $95.5 million credit ($0.19 per diluted share) to value inventories using the last-in, first-out (LIFO) method of accounting in the second quarter of 2015, compared with a credit of $16.5 million ($0.03 per diluted share) recorded in the first quarter of 2015 and no charge in the second quarter of 2014. As a result, the LIFO credit in the first half of 2015 was $112.0 million ($0.22 per diluted share), compared with a charge of $14.5 million ($0.03 per diluted share) in the first half of 2014. Also included in the second quarter of 2015 results was a $9.3 million ($0.03 per diluted share) benefit related to state tax credits.

Nucor's consolidated net sales decreased 1% to $4.36 billion in the second quarter of 2015 compared with $4.40 billion in the first quarter of 2015 and decreased 18% compared with $5.29 billion in the second quarter of 2014. Average sales price per ton decreased 8% from the first quarter of 2015 and decreased 13% from the second quarter of 2014. Total tons shipped to outside customers were 6,055,000 tons in the second quarter of 2015, a 7% increase over the first quarter of 2015 and a decrease of 5% from the second quarter of 2014. Total second quarter steel mill shipments increased 9% over the first quarter of 2015 and decreased 2% from the second quarter of 2014. Second quarter downstream steel products shipments to outside customers increased 12% over the first quarter of 2015 and decreased 3% from the second quarter of 2014.

In the first half of 2015, Nucor's consolidated net sales decreased 16% to $8.76 billion, compared with $10.40 billion in last year's first half. Total tons shipped to outside customers decreased 7% from the first half of 2014, while average sales price per ton decreased 10%.

The average scrap and scrap substitute cost per ton used in the second quarter of 2015 was $271, a 16% decrease from $324 in the first quarter of 2015 and a decrease of 29% from $384 in the second quarter of 2014. The average scrap and scrap substitute cost per ton used in the first half of 2015 was $297, a decrease of 24% from $391 in the first half of 2014.

Overall operating rates at our steel mills increased to 73% in the second quarter of 2015 as compared with 65% in the first quarter of 2015 and decreased from 79% in the second quarter of 2014. Steel mill utilization decreased to 69% in the first half of 2015 from 77% in the first half of 2014.

Total steel mill energy costs in the second quarter of 2015 decreased approximately $4 per ton compared with the first quarter of 2015 due to increased production volumes and lower unit costs for electricity and natural gas. Total steel mill energy costs in the second quarter of 2015 decreased approximately $4 per ton compared with the second quarter of 2014 due primarily to lower natural gas unit costs. Energy costs for the first half of 2015 decreased $1 per ton from the first half of 2014.

Our liquidity position remains strong with $1.69 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. Cash provided by operating activities in the first half of 2015 was robust at $1.20 billion compared to $443.3 million in the first half of 2014.

In June, Nucor's board of directors declared a cash dividend of $0.3725 per share payable on August 11, 2015 to stockholders of record on June 30, 2015. This dividend is Nucor's 169th consecutive quarterly cash dividend, a record we expect to continue.

The performance of the steel mills segment in the second quarter of 2015 decreased from the first quarter of 2015. Pricing has begun to stabilize, but we experienced some margin erosion as the steel mills worked through higher cost scrap, work-in-process and finished goods inventories. Pricing remains under pressure from exceptionally high levels of imports. Imports accounted for an estimated 32% of the finished steel market in the first six months of 2015, compared with an estimated 27% in the first six months of 2014. The biggest factors driving these exceptionally high levels of imports are the trade-distorting practices of some foreign governments. We are pleased with recently passed legislation that strengthens our trade laws and provides the steel industry with more effective tools to fight back against unfair trade. While these trade law changes alone will not address the serious challenges facing the U.S. steel industry due to systemic steel overcapacity overseas, they do strengthen our hand against illegal trade practices.

The operating performance of the downstream products segment has improved in the second quarter of 2015 as compared to the second quarter of 2014 and the first quarter of 2015 due to the continuing gradual improvement in nonresidential construction markets. The increased operating performance of the downstream products segment in the second quarter of 2015 compared to the first quarter of 2015 also benefited from typical seasonality in nonresidential construction markets as weather conditions improved.

The performance of the raw materials segment improved from the first quarter of 2015. Nucor Steel Louisiana had an operating loss of approximately $20 million ($0.04 per diluted share), which included a $10.0 million ($0.02 per diluted share) payment received related to warranty claims associated with the repair of the process gas heater. This performance is improved compared to the first quarter of 2015 operating loss of approximately $44 million ($0.09 per diluted share). Nucor Steel Louisiana's second quarter operating loss reflects the impact of working through higher cost iron ore inventory that was purchased in 2014. The ramp-up in production at the Louisiana direct reduced iron (DRI) facility has gone extremely well, with the facility producing DRI at world class quality levels. Nucor Steel Louisiana produced approximately 540,000 tons of DRI in the second quarter of 2015. The raw materials segment also benefited from the improved performance of our scrap processing business in the second quarter of 2015 as compared to the first quarter of 2015. Partially offsetting these improvements was the decreased performance of our DRI facility in Trinidad, due to a 20-day planned outage that occurred in the second quarter of 2015.

Earnings in the third quarter of 2015 are expected to be improved compared to the second quarter of 2015 mainly due to improved performance of the steel mills segment. The steel mills segment will benefit from a lower average cost of inventories to begin the third quarter. The strongest end markets continue to be automotive and construction. We expect improved performance in the downstream products segment in the third quarter of 2015 as compared to the second quarter of 2015 due to the continuing gradual improvement in nonresidential construction markets. The performance of the raw materials segment in the third quarter of 2015 is expected to be comparable to the second quarter of 2015.

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 second quarter results on July 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


 Six Months (26 Weeks) Ended




July 4, 2015


July 5, 2014


Percentage
Change


July 4, 2015


July 5, 2014


Percentage
Change

Steel mills production


5,196


5,324


-2%


9,954


10,518


-5%

Steel mills total shipments


5,348


5,477


-2%


10,235


10,909


-6%















Sales tons to outside customers:














Steel mills


4,578


4,646


-1%


8,743


9,246


-5%


Joist


97


97


0%


186


189


-2%


Deck


92


101


-9%


174


188


-7%


Cold finished


117


133


-12%


247


271


-9%


Fabricated concrete














reinforcing steel


324


321


1%


586


560


5%


Other


847


1,072


-21%


1,754


2,105


-17%




6,055


6,370


-5%


11,690


12,559


-7%

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(In thousands, except per share data)










  Three Months (13 Weeks) Ended 


  Six Months (26 Weeks) Ended 










July 4, 2015


July 5, 2014


July 4, 2015


July 5, 2014









Net sales

$     4,357,609


$     5,291,075


$        8,757,049


$ 10,399,519









Costs, expenses and other:








  Cost of products sold

3,971,303


4,875,208


8,082,461


9,606,450

  Marketing, administrative and other expenses

128,592


132,813


253,153


266,247

  Equity in earnings of








unconsolidated affiliates

(694)


(3,202)


(435)


(7,676)

  Interest expense, net

42,186


44,391


86,603


85,132


4,141,387


5,049,210


8,421,782


9,950,153

Earnings before income taxes and








noncontrolling interests

216,222


241,865


335,267


449,366

Provision for income taxes

56,878


74,930


91,631


152,735

Net earnings

159,344


166,935


243,636


296,631

Earnings attributable to








noncontrolling interests

34,589


19,894


51,081


38,559

Net earnings attributable to








Nucor stockholders

$        124,755


$        147,041


$          192,555


$      258,072









Net earnings per share:








  Basic

$0.39


$0.46


$0.60


$0.80

  Diluted

$0.39


$0.46


$0.60


$0.80









Average shares outstanding:








  Basic

320,506


319,693


320,409


319,597

  Diluted

320,708


319,981


320,594


319,872

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

 (In thousands)














July 4, 2015


Dec. 31, 2014

 ASSETS






 Current assets:






 Cash and cash equivalents


$    1,576,496


$   1,024,144


 Short-term investments


112,236


100,000


 Accounts receivable, net


1,791,523


2,068,298


 Inventories, net


2,267,394


2,745,032


 Other current assets


407,088


504,414











 Total current assets


6,154,737


6,441,888









 Property, plant and equipment, net


5,120,870


5,287,639









 Goodwill



2,046,098


2,068,664









 Other intangible assets, net


819,050


862,093









 Other assets


927,422


955,643











 Total assets


$  15,068,177


$ 15,615,927









 LIABILITIES





 Current liabilities:






 Short-term debt


$        42,664


$     207,476


 Long-term debt due within one year


8,300


16,335


 Accounts payable


820,557


993,872


 Salaries, wages and related accruals


270,506


352,488


 Accrued expenses and other current liabilities


548,050


527,605











 Total current liabilities


1,690,077


2,097,776









 Long-term debt due after one year


4,360,600


4,360,600









 Deferred credits and other liabilities


1,042,415


1,082,433











 Total liabilities


7,093,092


7,540,809









 EQUITY






 Nucor stockholders' equity:






 Common stock


151,423


151,237


 Additional paid-in capital


1,907,049


1,883,356


 Retained earnings


7,331,006


7,378,214


 Accumulated other comprehensive loss,







 net of income taxes


(236,708)


(145,708)


 Treasury stock


(1,492,067)


(1,494,629)



 Total Nucor stockholders' equity


7,660,703


7,772,470









 Noncontrolling interests


314,382


302,648











 Total equity


7,975,085


8,075,118











 Total liabilities and equity


$  15,068,177


$ 15,615,927

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

 (In thousands)
















Six Months (26 Weeks) Ended
















July 4, 2015


July 5, 2014










Operating activities:







Net earnings



$               243,636


$               296,631


Adjustments:








Depreciation



314,521


326,429



Amortization



36,895


36,265



Stock-based compensation

33,947


33,752



Deferred income taxes


(35,383)


(5,121)



Distributions from affiliates

12,142


11,504



Equity in earnings of unconsolidated affiliates

(435)


(7,676)



Loss on assets


-


9,046



Changes in assets and liabilities (exclusive of






     acquisitions and dispositions):







Accounts receivable


254,343


(249,196)




Inventories


472,104


(130,463)




Accounts payable


(159,872)


90,460




Federal income taxes


128,391


14,100




Salaries, wages and related accruals

(77,214)


(1,672)




Other



(28,371)


19,270










Cash provided by operating activities

1,194,704


443,329










Investing activities:







Capital expenditures


(175,253)


(446,798)


Investment in and advances to affiliates

(23,750)


(68,491)


Repayment of advances to affiliates

-


15,000


Disposition of plant and equipment

17,932


12,858


Acquisitions (net of cash acquired)

(253)


(38,466)


Purchases of investments


(111,927)


(100,000)


Proceeds from the sale of investments

100,000


27,529


Other investing activities


1,870


-










Cash used in investing activities


(191,381)


(598,368)










Financing activities:







Net change in short-term debt


(164,466)


13,212


Repayment of long-term debt


(8,000)


-


Issuance of common stock


423


-


Excess tax benefits from stock-based compensation

1,200


2,700


Distributions to noncontrolling interests

(39,347)


(37,877)


Cash dividends



(239,476)


(237,369)


Other financing activities


(1,081)


(1,123)










Cash used in financing activities


(450,747)


(260,457)










Effect of exchange rate changes on cash

(224)


(195)










Increase (decrease) in cash and cash equivalents

552,352


(415,691)










Cash and cash equivalents - beginning of year

1,024,144


1,483,252










Cash and cash equivalents - end of six months

$            1,576,496


$            1,067,561










Non-cash investing activity:






Change in accrued plant and equipment purchases

$               (12,644)


$               (96,023)



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