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): January 30, 2018

 

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))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

 

 

 

Item 2.02.Results of Operations and Financial Condition.

 

On January 30, 2018, Nucor Corporation issued a news release reporting its financial results for the year ended December 31, 2017. A copy of the news release is furnished as Exhibit 99.1 and incorporated herein by reference.

 

Item 9.01.Financial Statements and Exhibits.

 

(d)       Exhibits

 

99.1       News Release of Nucor Corporation, issued January 30, 2018

 

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 Exchange Act of 1934, as amended (the “Exchange Act”), 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, or the Exchange Act, except as shall be expressly set forth by specific reference in any such registration statement or other document.

 

 

 

 

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
   
Date: January 30, 2018 By:  /s/ James D. Frias
    Chief Financial Officer, Treasurer and
Executive Vice President

 

 

 

 

Exhibit 99.1

Nucor Reports Results for Fourth Quarter and Year Ended 2017

CHARLOTTE, N.C., Jan. 30, 2018 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $383.9 million, or $1.20 per diluted share, for the fourth quarter of 2017. By comparison, Nucor reported consolidated net earnings of $254.9 million, or $0.79 per diluted share, for the third quarter of 2017 and $159.6 million, or $0.50 per diluted share, for the fourth quarter of 2016.

Nucor reported consolidated net earnings of $1.32 billion, or $4.10 per diluted share, for fiscal 2017 compared to $796.3 million, or $2.48 per diluted share for fiscal 2016.

Earnings (loss) before income taxes and noncontrolling interests by segment were as follows for the fourth quarter and full year 2017 and 2016 (in thousands):



Three Months (13 Weeks) Ended


Twelve Months (52 Weeks) Ended



Dec. 31, 2017


Dec. 31, 2016


Dec. 31, 2017


Dec. 31, 2016

Steel mills


$        349,958


$        321,270


$     2,084,203


$     1,724,168

Steel products


74,849


52,079


206,805


249,970

Raw materials


26,721


(18,881)


129,296


(95,121)

Corporate/eliminations

(129,287)


(99,428)


(670,347)


(580,358)



$        322,241


$        255,040


$     1,749,957


$     1,298,659

Included in the fourth quarter of 2017 results was a net benefit of $175.2 million, or $0.55 per diluted share, related to the impacts of U.S. federal tax legislation enacted in the fourth quarter of 2017. Future expenses or benefits related to the new legislation may need to be recorded as additional guidance and clarification of certain aspects of the legislation are provided, but cannot be estimated at this time. Third quarter of 2017 results included a net benefit totaling $13.2 million, or $0.04 per diluted share, related to tax return true-ups and state credits. Also included in the third quarter of 2017 earnings was an expense of $22.5 million, or $0.05 per diluted share, related to certain legal matters. Included in the fourth quarter of 2016 results were the effects of a change in estimate related to the cost of certain inventories that resulted in a benefit of $77.6 million, or $0.16 per diluted share.

Nucor's consolidated net sales decreased 2% to $5.09 billion in the fourth quarter of 2017 compared with $5.17 billion in the third quarter of 2017 and increased 29% compared with $3.96 billion in the fourth quarter of 2016. Average sales price per ton was comparable with the third quarter of 2017 and increased 14% compared to the fourth quarter of 2016. Total tons shipped to outside customers were 6,542,000 tons in the fourth quarter of 2017, a 1% decrease from the third quarter of 2017 and an increase of 13% from the fourth quarter of 2016. Total fourth quarter steel mill shipments decreased 2% from the third quarter of 2017 and increased 18% from the fourth quarter of 2016. Fourth quarter downstream steel products shipments to outside customers decreased 3% from the third quarter of 2017 and increased 13% from the fourth quarter of 2016.

For fiscal 2017, Nucor's consolidated net sales increased 25% to $20.25 billion, compared with $16.21 billion for fiscal 2016. Total tons shipped to outside customers in fiscal 2017 were 26,492,000, an increase of 9% from fiscal 2016, while average sales price per ton increased 15%.

The average scrap and scrap substitute cost per ton used in the fourth quarter of 2017 was $317, unchanged from the third quarter of 2017 and a 34% increase compared to $236 in the fourth quarter of 2016. The average scrap and scrap substitute cost per ton used for the full year 2017 was $307, a 35% increase from $228 in for the full year 2016.

Overall operating rates at our steel mills decreased to 81% in the fourth quarter of 2017 as compared to 83% in the third quarter of 2017 and increased compared to 72% in the fourth quarter of 2016. Steel mill operating rates for the full year 2017 increased to 85% as compared to 78% for the full year 2016.

Total steel mill energy costs in the fourth quarter of 2017 decreased approximately $2 per ton compared to the third quarter of 2017 and decreased approximately $1 compared to the fourth quarter of 2016. The decrease from the third quarter of 2017 was due to lower electricity unit costs and the decrease from the fourth quarter of 2016 was due to improved steel mill productivity as well as lower unit costs for electricity and natural gas. Energy costs for the full year 2017 increased approximately $1 per ton from the full year 2016 due to higher unit costs for electricity and natural gas.

Our liquidity position remains strong with $999.1 million in cash and cash equivalents and short-term investments and an untapped $1.5 billion revolving credit facility that does not expire until April 2021.

In November, Nucor announced that it will build a full-range merchant bar quality (MBQ) mill at its existing steel mill located in Bourbonnais, Illinois. The MBQ mill is expected to have an annual capacity of approximately 500,000 tons and to cost $180 million. We anticipate the project will take approximately two years to complete. This project will allow Nucor to fully utilize the Company's existing bar mill by optimizing its melt capacity and infrastructure. It will also take advantage of a scrap supply that is currently abundant in the region, as well as the Company's commercial footprint in the central United States.

Also in November, Nucor announced that it will build a rebar micro mill in Sedalia, Missouri, about 90 miles east of Kansas City. This project represents at least $250 million in new investments. The new micro mill is expected to start-up in 2019 pending the final approval and awarding of state and local incentives as well as required permits and regulatory approvals. Rebar supply to the Kansas City, upper Midwestern and Plains markets currently travels long distances, giving the micro mill in Sedalia a logistical advantage. This location will also allow the company to take advantage of the scrap supply that is currently abundant in the immediate area provided by Nucor's scrap business, The David J. Joseph Company.

In December, Nucor's board of directors declared a cash dividend of $0.38 per share payable on February 9, 2018 to stockholders of record on December 29, 2017. This dividend is Nucor's 179th consecutive quarterly cash dividend, and it marks 45 consecutive years of an increased base dividend.

Imports continue to negatively impact the U.S. steel industry. Total steel imports in 2017 increased by more than five million net tons, or 15.5%, compared to 2016. Additionally, finished steel imports accounted for an estimated 27% share of the U.S. market. Along with other domestic steel producers, Nucor continues to pursue trade cases to combat unfairly traded imports. In 2017, the United States Department of Commerce made several rulings imposing duties on additional steel products that are favorable to the domestic steel industry. In December, the Commerce Department made a preliminary determination that corrosion-resistant and cold-rolled steel from Vietnam that originated in China evaded U.S. anti-dumping and anti-subsidy orders. As a petitioner in the case, Nucor believes the preliminary determination is an important step in fighting efforts to circumvent trade duties. A final determination is expected to be announced in the next few months. We are encouraged by the steady progress that we are achieving through the prosecution of product and country specific trade cases, although the process is still slower than we believe is appropriate. We attribute this success to date to the overwhelming evidence that many foreign competitors receive support from illegal subsidies.

The profitability of the steel mills segment in the fourth quarter of 2017 decreased from the third quarter of 2017 due to margin compression as imports, which surged in the summer of 2017, continued to work through to our end markets. Weakness in plate steel negatively impacted the earnings of the steel mills segment in the fourth quarter of 2017 as compared to the third quarter of 2017. The performance of the steel products segment during the fourth quarter of 2017 improved compared to the third quarter of 2017. The performance of the raw materials segment in the fourth quarter of 2017 was better compared to the third quarter of 2017 due to the improved performance of our direct reduced iron facilities.

Earnings in the first quarter of 2018 are expected to increase compared to the fourth quarter of 2017, exclusive of the benefit recorded in the fourth quarter of 2017 related to tax reform. We believe there is significant optimism in steel end use markets and are encouraged by positive pricing momentum building throughout the quarter for all of our steel mill products. Coupled with these positive trends, first quarter of 2018 results will be negatively impacted by higher scrap prices and weather related interruptions at some of our sheet mills. We expect decreased earnings in the steel products segment due to typical seasonality. We expect earnings in our raw materials segment in the first quarter of 2018 to improve compared to the fourth quarter of 2017.

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; hollow structural section tubing; electrical conduit; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating; 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 2016 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 fourth quarter results on January 30, 2018 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 


 Twelve Months (52 Weeks) Ended 



Dec. 31, 2017


Dec. 31, 2016


Percentage Change


Dec. 31, 2017


Dec. 31, 2016


Percentage Change

Steel mills total shipments:













Sheet 

2,566


2,225


15%


10,607


9,735


9%


Tubular products

225


86


162%


917


86


966%


Bars

1,982


1,794


10%


8,009


7,307


10%


Structural

557


511


9%


2,295


2,332


-2%


Plate

556


471


18%


2,300


2,041


13%


Other

173


64


170%


590


440


34%



6,059


5,151


18%


24,718


21,941


13%














Sales tons to outside customers:













Steel mills

4,998


4,400


14%


20,618


18,846


9%


Joist

140


123


14%


472


445


6%


Deck

128


110


16%


457


442


3%


Cold finished

126


98


29%


487


426


14%


Fabricated concrete













reinforcing steel

285


258


10%


1,142


1,115


2%


Other

865


826


5%


3,316


3,035


9%



6,542


5,815


13%


26,492


24,309


9%

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(In thousands, except per share data)










Three Months (13 Weeks) Ended


Twelve Months (52 Weeks) Ended










Dec. 31, 2017


Dec. 31, 2016


Dec. 31, 2017


Dec. 31, 2016









Net sales

$    5,092,328


$    3,956,538


$  20,252,393


$  16,208,122









Costs, expenses and other:








  Cost of products sold

4,571,760


3,513,112


17,682,986


14,182,215

  Marketing, administrative and other expenses

168,102


156,082


687,531


596,761

  Equity in earnings of unconsolidated affiliates

(11,860)


(8,525)


(41,661)


(38,757)

  Interest expense, net

42,085


40,829


173,580


169,244


4,770,087


3,701,498


18,502,436


14,909,463

Earnings before income taxes and








noncontrolling interests

322,241


255,040


1,749,957


1,298,659

Provision for income taxes

(72,853)


79,855


369,386


398,243

Net earnings

395,094


175,185


1,380,571


900,416

Earnings attributable to








noncontrolling interests

11,203


15,546


61,883


104,145

Net earnings attributable to 








Nucor stockholders

$        383,891


$        159,639


$    1,318,688


$        796,271









Net earnings per share:








  Basic

$1.20


$0.50


$4.11


$2.48

  Diluted

$1.20


$0.50


$4.10


$2.48









Average shares outstanding:








  Basic

319,210


319,921


319,990


319,563

  Diluted

319,967


320,396


320,773


319,822

 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) 

 (In thousands) 












Dec. 31, 2017


Dec. 31, 2016

 ASSETS 





 Current assets: 





 Cash and cash equivalents 

$         949,104


$      2,045,961


 Short-term investments 

50,000


150,000


 Accounts receivable, net 

2,028,545


1,631,676


 Inventories, net 

3,461,686


2,479,958


 Other current assets 

335,085


198,798










 Total current assets 

6,824,420


6,506,393








 Property, plant and equipment, net 

5,093,147


5,078,650








 Goodwill 


2,196,058


2,052,728








 Other intangible assets, net 

914,646


866,835








 Other assets 

812,987


718,912










 Total assets 

$   15,841,258


$    15,223,518








 LIABILITIES 





 Current liabilities: 





 Short-term debt 

$           52,833


$            17,959


 Long-term debt due within one year 

500,000


600,000


 Accounts payable 

1,181,346


838,109


 Salaries, wages and related accruals 

516,660


428,829


 Accrued expenses and other current liabilities 

573,925


505,069










 Total current liabilities 

2,824,764


2,389,966








 Long-term debt due after one year 

3,242,242


3,739,141








 Deferred credits and other liabilities 

689,464


839,703










 Total liabilities 

6,756,470


6,968,810








 EQUITY 





 Nucor stockholders' equity: 





 Common stock 

151,960


151,734


 Additional paid-in capital 

2,021,339


1,974,672


 Retained earnings 

8,463,709


7,630,916


 Accumulated other comprehensive loss, 






 net of income taxes 

(254,681)


(317,843)


 Treasury stock 

(1,643,291)


(1,559,614)



 Total Nucor stockholders' equity 

8,739,036


7,879,865








 Noncontrolling interests 

345,752


374,843










 Total equity 

9,084,788


8,254,708










 Total liabilities and equity 

$   15,841,258


$    15,223,518

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 

 (In thousands) 
















Twelve Months (52 Weeks) Ended
















Dec. 31, 2017


Dec. 31, 2016








Operating activities:







Net earnings 



$                1,380,571


$           900,416


Adjustments:








Depreciation



635,833


613,192



Amortization



91,228


73,862



Stock-based compensation


64,176


56,511



Deferred income taxes


(221,173)


71,455



Distributions from affiliates


49,295


40,602



Equity in earnings of unconsolidated affiliates

(41,661)


(38,757)



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







Accounts receivable


(329,501)


(217,736)




Inventories


(900,946)


(132,639)




Accounts payable


314,817


236,788




Federal income taxes


(107,577)


3,555




Salaries, wages and related accruals

83,625


133,544




Other operating activities

32,576


9,127










Cash provided by operating activities


1,051,263


1,749,920










Investing activities:







Capital expenditures


(448,555)


(604,840)


Investment in and advances to affiliates

(59,000)


(63,167)


Divestiture of affiliates


-


135,000


Disposition of plant and equipment

25,315


18,571


Acquisitions (net of cash acquired)

(544,041)


(474,788)


Purchases of investments


(50,000)


(650,000)


Proceeds from the sale of investments

150,000


600,000


Other investing activities


7,389


14,106










Cash used in investing activities


(918,892)


(1,025,118)










Financing activities:







Net change in short-term debt


34,872


(33,360)


Repayment of long-term debt


(600,000)


-


Issuance of common stock


11,145


15,751


Payment of tax withholdings on certain stock-based compensation

(14,408)


(12,387)


Excess tax benefits from stock-based compensation

-


2,784


Distributions to noncontrolling interests

(90,974)


(99,588)


Cash dividends



(485,321)


(481,083)


Acquisition of treasury stock


(90,304)


(5,173)


Other financing activities


(3,241)


(13,297)










Cash used in financing activities 


(1,238,231)


(626,353)










Effect of exchange rate changes on cash

9,003


8,043










(Decrease) increase in cash and cash equivalents

(1,096,857)


106,492










Cash and cash equivalents - beginning of year

2,045,961


1,939,469










Cash and cash equivalents - end of year

$                   949,104


$        2,045,961










Non-cash investing activity:






Change in accrued plant and equipment purchases and 





assets acquired by capital lease arrangements

$                      58,519


$             12,837












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