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 20, 2006

 


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.)
2100 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 20, 2006, Nucor Corporation issued a news release reporting its financial results for the fiscal quarter ended April 1, 2006. A copy of the news release is attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits

 

  (c) Exhibits

99.1    News Release of Nucor Corporation, issued April 20, 2006

 

2


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/ Terry S. Lisenby

  Terry S. Lisenby
 

Chief Financial Officer, Treasurer and

Executive Vice President

Dated: April 20, 2006

 

3


INDEX TO EXHIBITS

 

Exhibit No.  

Description

99.1   News Release of Nucor Corporation, issued April 20, 2006

 

4

News Release

Exhibit 99.1

 

LOGO    News Release            

NUCOR REPORTS RESULTS FOR FIRST QUARTER OF 2006

CHARLOTTE, NORTH CAROLINA, April 20, 2006 – Nucor Corporation (NYSE: NUE) announced today consolidated net earnings for the first quarter of 2006 of $379.2 million, an increase of 7% over the first quarter of 2005 net earnings of $354.7 million and an increase of 11% over the fourth quarter of 2005 net earnings of $341.0 million. Diluted earnings per share increased 10% to $2.42 from $2.20 in the first quarter of 2005 and increased 11% from $2.18 in the fourth quarter of 2005.

Nucor’s consolidated net sales increased 7% to $3.55 billion compared with $3.32 billion in the first quarter of 2005 and increased 11% compared with $3.21 billion in the fourth quarter of 2005. In the first quarter of 2006, average sales price per ton decreased 5% from the first quarter of 2005 and remained flat compared to the fourth quarter of 2005. Total tons shipped to outside customers increased 12% from the first quarter of 2005 and increased 10% from the fourth quarter of 2005.

The average scrap and scrap substitute cost per ton used decreased 13% from $272 in the first quarter of 2005 to $237 in the first quarter of 2006 and decreased 1% from $240 in the fourth quarter of 2005. Total energy costs increased approximately $7 per ton from the first quarter of 2005 to the first quarter of 2006 and decreased approximately $4 per ton from the fourth quarter of 2005. Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $9.0 million in the first quarter of 2006, compared with a credit of $26.1 million in the first quarter of 2005.

In the first quarter of 2006, Nucor established company records in its steel mills segment for steel production, total steel shipments and steel sales to outside customers. Steel production was 5,791,000 tons in the first quarter of 2006, compared with 5,108,000 tons produced in the first quarter of 2005, an increase of 13%. Total steel shipments increased 13% to 5,721,000 tons in the first quarter of 2006, compared with 5,043,000 tons in last year’s first quarter. Steel shipments to outside customers increased 12% to 5,263,000 tons in the first quarter of 2006, compared with 4,688,000 tons in the first quarter of 2005. In the steel products segment, steel joist production during the first quarter was 139,000 tons, compared with 123,000 tons in the first quarter of 2005, an increase of 13%. Steel deck sales increased 6% from 80,000 tons in the first quarter of 2005 to 85,000 tons in this year’s first quarter. Cold finished steel sales increased 8% to a record 96,000 tons, compared with 89,000 tons in the first quarter of 2005.

Starting with the May 11, 2006 dividend payment, Nucor is increasing the regular quarterly cash dividend rate from $0.15 to $0.20 per share. In addition to the $0.20 per share base dividend amount, the Board of Directors approved the payment of a supplemental dividend of $0.50 per share, for a total dividend of $0.70 per share. Nucor has increased its dividend every year since Nucor began paying dividends 33 years ago.

Nucor repurchased 100,000 shares of Nucor’s common stock at a cost of approximately $10.3 million under a publicly announced stock repurchase program during the first quarter of 2006 (none in the first quarter of 2005). Approximately 12.8 million shares remain authorized for repurchase. Since the first quarter of 2005, Nucor has repurchased approximately 5.7 million shares of Nucor’s common stock.

In March 2006, Nucor announced that it had entered into an agreement to purchase substantially all of the assets of Connecticut Steel Corporation for a cash purchase price of approximately $43.0 million, subject to post-closing adjustments. Located in Wallingford, Connecticut, this bar products mill has an annual capacity of approximately 300,000 tons of wire rod and rebar and approximately 85,000 tons of wire mesh fabrication and structural mesh fabrication. The acquisition is scheduled to be completed in early May of this year after transfer of appropriate permits and operating contracts, and other closing conditions.

Nucor expects the second quarter of 2006 to be another very strong quarter. We believe that earnings will be in the range of $2.20 to $2.40 per diluted share in the second quarter of 2006, compared with $2.03 per diluted share in the second quarter of 2005.

Page 1 of 4

Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211

Phone 704-366-7000 Fax 704-362-4208 www.nucor.com


LOGO    News Release            

NUCOR REPORTS RESULTS FOR FIRST QUARTER OF 2006 (Continued)

Nucor and affiliates are manufacturers of steel products, with operating facilities in sixteen states. Products produced are: carbon and alloy steel – in bars, beams, sheet and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; metal building systems; and light gauge steel framing. Nucor is the nation’s largest recycler.

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, 2005 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 first quarter results on April 20, 2006 at 2:00 pm eastern time. The conference call will be available over the Internet at www.nucor.com, under Investor Relations.

Unaudited figures are as follows:

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(In thousands, except per share data)

 

     Three Months (13 Weeks) Ended  
     April 1, 2006     April 2, 2005  

NET SALES

   $ 3,545,097     $ 3,322,621  
                

COSTS, EXPENSES AND OTHER:

    

Cost of products sold

     2,768,142       2,620,628  

Marketing, administrative and other expenses

     154,100       125,429  

Interest (income) expense, net

     (5,732 )     4,133  

Minority interests

     40,326       31,165  

Other income

     —         (9,200 )
                
     2,956,836       2,772,155  
                

EARNINGS BEFORE INCOME TAXES

     588,261       550,466  

Provision for income taxes

     209,100       195,800  
                

NET EARNINGS

   $ 379,161     $ 354,666  
                

NET EARNINGS PER SHARE:

    

Basic

   $ 2.44     $ 2.22  

Diluted

   $ 2.42     $ 2.20  

AVERAGE SHARES OUTSTANDING:

    

Basic

     155,313       159,708  

Diluted

     156,874       161,246  

Page 2 of 4

Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211

Phone 704-366-7000 Fax 704-362-4208 www.nucor.com


LOGO    News Release            

NUCOR REPORTS RESULTS FOR FIRST QUARTER OF 2006 (Continued)

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands)

 

     April 1, 2006     Dec. 31, 2005  

Assets

    

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 1,127,978     $ 980,150  

Short-term investments

     1,077,023       857,360  

Accounts receivable, net

     1,068,752       1,000,629  

Inventories

     941,223       945,054  

Other current assets

     247,139       288,360  
                

Total current assets

     4,462,115       4,071,553  

PROPERTY, PLANT AND EQUIPMENT, NET

     2,829,925       2,855,717  

OTHER ASSETS

     212,106       211,517  
                

TOTAL ASSETS

   $ 7,504,146     $ 7,138,787  
                

Liabilities and stockholders’ equity

    

CURRENT LIABILITIES:

    

Long-term debt due within one year

   $ 1,250     $ 1,250  

Accounts payable

     592,373       501,624  

Federal income taxes payable

     155,123       -  

Salaries, wages and related accruals

     218,436       368,568  

Accrued expenses and other current liabilities

     405,147       384,257  
                

Total current liabilities

     1,372,329       1,255,699  
                

LONG-TERM DEBT DUE AFTER ONE YEAR

     922,300       922,300  
                

DEFERRED CREDITS AND OTHER LIABILITIES

     460,368       486,910  
                

MINORITY INTERESTS

     184,270       194,090  
                

STOCKHOLDERS’ EQUITY:

    

Common stock

     74,337       74,120  

Additional paid-in capital

     232,698       191,850  

Retained earnings

     4,979,167       4,709,111  

Unearned compensation

     (7,668 )     (3,287 )

Accumulated other comprehensive income, net of income taxes

     29,222       46,600  
                
     5,307,756       5,018,394  

Treasury stock

     (742,877 )     (738,606 )
                

Total stockholders’ equity

     4,564,879       4,279,788  
                

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 7,504,146     $ 7,138,787  
                

Page 3 of 4

Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211

Phone 704-366-7000 Fax 704-362-4208 www.nucor.com


LOGO    News Release            

NUCOR REPORTS RESULTS FOR FIRST QUARTER OF 2006 (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

 

     Three Months (13 Weeks)
Ended
 
     April 1, 2006     April 2, 2005  

Operating activities:

    

Net earnings

   $ 379,161     $ 354,666  

Adjustments:

    

Depreciation

     90,825       91,290  

Deferred income taxes

     (18,800 )     (16,200 )

Minority interests

     40,322       31,161  

Stock option expense

     2,546       —    

Settlement of natural gas hedges

     (4,931 )     —    

Changes in (exclusive of acquisition):

    

Current assets

     (78,984 )     2,802  

Current liabilities

     163,669       137,066  

Other

     (6,417 )     (12,847 )
                

Cash provided by operating activities

     567,391       587,938  
                

Investing activities:

    

Capital expenditures

     (69,871 )     (71,259 )

Investment in affiliates

     (14,704 )     (8,176 )

Disposition of plant and equipment

     1,439       294  

Acquisition (net of cash acquired)

     —         (44,136 )

Purchases of short-term investments

     (220,308 )     —    

Proceeds from sales of short-term investments

     645       —    
                

Cash used in investing activities

     (302,799 )     (123,277 )
                

Financing activities:

    

Issuance of common stock

     38,011       25,262  

Tax benefit from stock options exercised

     6,500       -  

Distributions to minority interests

     (50,142 )     (2,181 )

Cash dividends

     (100,870 )     (64,080 )

Acquisition of treasury stock

     (10,263 )     -  
                

Cash used in financing activities

     (116,764 )     (40,999 )
                

Increase in cash and cash equivalents

     147,828       423,662  

Cash and cash equivalents - beginning of year

     980,150       779,049  
                

Cash and cash equivalents - end of three months

   $ 1,127,978     $ 1,202,711  
                

Page 4 of 4

Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211

Phone 704-366-7000 Fax 704-362-4208 www.nucor.com