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 21, 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.)

 

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 July 21, 2006, Nucor Corporation issued a news release reporting its financial results for the fiscal quarter ended July 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 July 21, 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: July 21, 2006

 

3


INDEX TO EXHIBITS

 

Exhibit No.  

Description

99.1   News Release of Nucor Corporation, issued July 21, 2006

 

4

Press Release

Exhibit 99.1

 

LOGO

   News Release

NUCOR REPORTS RECORD RESULTS FOR FIRST HALF AND SECOND QUARTER OF 2006

CHARLOTTE, NORTH CAROLINA, July 21, 2006 – Nucor Corporation (NYSE: NUE) announced today record consolidated net earnings and sales for the first half and second quarter of 2006. Net earnings per share and average shares outstanding for all periods reflect a two-for-one stock split effective in May 2006.

Nucor’s consolidated net earnings for the first half of 2006 were $831.9 million ($2.65 per diluted share), an increase of 23% over net earnings of $677.4 million ($2.11 per diluted share) in last year’s first half. Consolidated net earnings of $452.8 million ($1.45 per diluted share) in this year’s second quarter were an increase of 40% over $322.7 million ($1.01 per diluted share) earned in the second quarter of 2005 and an increase of 19% from the $379.2 million ($1.21 per diluted share) earned in the first quarter of 2006.

In the first half of 2006, Nucor’s consolidated net sales increased 14% to $7.35 billion, compared with $6.47 billion in last year’s first half. Average sales price per ton was flat while total tons shipped to outside customers increased 14% from the first half of 2005. In the second quarter of 2006, Nucor’s consolidated net sales increased 21% to $3.81 billion, compared with $3.15 billion in the second quarter of 2005 and increased 7% compared with $3.55 billion in the first quarter of 2006. Average sales price per ton increased 5% from the second quarter of 2005 and increased 4% from the first quarter of 2006. Total tons shipped to outside customers were a record 5,819,000 tons in the second quarter of 2006, an increase of 15% over the second quarter of 2005 and an increase of 4% over the first quarter of 2006.

The average scrap and scrap substitute cost per ton used in the first half of 2006 was $242, a decrease of 7% compared with $259 in the first half of 2005. The average scrap and scrap substitute cost per ton used in the second quarter of 2006 was $247, flat compared with $246 in the second quarter of 2005 and an increase of 4% compared with $237 in the first quarter of 2006. Total energy costs increased approximately $3 per ton from the first half of 2005 to the first half of 2006, decreased $1 per ton from the second quarter of 2005 to the second quarter of 2006, and decreased $4 per ton from the first quarter of 2006 to the second quarter of 2006.

Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $24.5 million in the first half of 2006, compared with a credit of $96.0 million in the first half of 2005. In the second quarter of 2006, the LIFO charge was $15.5 million, compared with a credit of $69.9 million in the second quarter of 2005.

In the steel mills segment, steel production increased 15% to 11,519,000 tons in the first half of 2006, compared with 10,051,000 tons produced in the first half of 2005. Total steel shipments increased 14% to 11,616,000 tons in the first half of 2006, compared with 10,146,000 tons in last year’s first half. Steel shipments to outside customers increased 14% to 10,713,000 tons in the first half of 2006, compared with 9,381,000 tons in last year’s first half. In the steel products segment, steel joist production during the first half of 2006 increased to 281,000 tons, compared with 262,000 tons in the first half of 2005. Steel deck sales decreased to 179,000 tons in the first half of 2006, compared with 181,000 tons in last year’s first half. Cold finished steel sales increased to 187,000 tons, compared with 176,000 tons in the first half of 2005.

Page 1 of 5

Nucor Executive Offices:    1915 Rexford Road, Charlotte, North Carolina 28211

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


LOGO

   News Release

NUCOR REPORTS RECORD RESULTS FOR FIRST HALF AND SECOND QUARTER OF 2006

(Continued)

Starting with the August 11, 2006 dividend payment, Nucor is increasing the supplemental dividend rate from $0.25 per share to $0.50 per share. This supplemental dividend is in addition to the $0.10 per share base dividend, for a total dividend of $0.60 per share.

Nucor repurchased approximately 3.6 million shares of Nucor’s common stock at a cost of approximately $186.4 million under a publicly announced stock repurchase program during the second quarter of 2006, and repurchased approximately 3.8 million shares at a cost of about $196.7 million during the first half of 2006. Approximately 22.0 million shares remain authorized for repurchase under the current program. Since the first quarter of 2005, Nucor has purchased approximately 15.0 million shares of Nucor’s common stock.

In May 2006, Nucor’s wholly owned subsidiary, Nucor Steel Connecticut, Inc., purchased substantially all of the assets of Connecticut Steel Corporation for a cash purchase price of approximately $43.9 million. 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.

Also in May 2006, Nucor announced plans to construct its fourth facility to produce metal building systems and components. The facility will be located in the western United States and will have an annual capacity of approximately 45,000 tons. It is expected to cost approximately $27 million and to employ more than 200 people.

In June 2006, Nucor announced plans to construct its fourth sheet steel galvanizing facility which will be located at Nucor’s sheet mill in Decatur, Alabama. Annual capacity will be approximately 500,000 tons, and the facility will have the ability to produce 72-inch wide sheet. Total cost is estimated to be approximately $150 million.

In July 2006, Nucor announced plans to construct a steel mill in the southern United States that will produce special bar quality products. The facility will have a capacity of approximately 850,000 tons and will produce high quality carbon and alloy rounds and round cornered squares from 3” to 9” for the automotive, heavy equipment and service center markets. Several locations are currently under consideration.

For all three recently announced projects, construction is expected to begin after satisfactory resolution of site location, regulatory approvals, tax matters and various contracts.

Current orders and backlogs are healthy across all product lines. The strong business conditions experienced in the second quarter should continue through the third quarter and well into the fourth quarter. We expect that earnings for the third quarter will continue to be very strong.

Nucor and affiliates are manufacturers of steel products, with operating facilities in seventeen 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.

Page 2 of 5

Nucor Executive Offices:    1915 Rexford Road, Charlotte, North Carolina 28211

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


LOGO

   News Release

NUCOR REPORTS RECORD RESULTS FOR FIRST HALF AND SECOND QUARTER OF 2006

(Continued)

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 second quarter results on July 21, 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)

 

     Six Months (26 Weeks) Ended     Three Months (13 Weeks) Ended
     July 1, 2006     July 2, 2005     July 1, 2006     July 2, 2005

NET SALES

   $ 7,351,447     $ 6,467,624     $ 3,806,350     $ 3,145,003
                              

COSTS, EXPENSES AND OTHER:

        

Cost of products sold

     5,705,017       5,153,320       2,925,975       2,524,892

Marketing, administrative and other expenses

     289,802       215,448       146,602       97,819

Interest (income) expense, net

     (15,320 )     6,474       (9,588 )     2,341

Minority interests

     88,932       51,680       48,606       20,515

Other income

     —         (9,200 )     —         —  
                              
     6,068,431       5,417,722       3,111,595       2,645,567
                              

EARNINGS BEFORE INCOME TAXES

     1,283,016       1,049,902       694,755       499,436

Provision for income taxes

     451,072       372,529       241,972       176,729
                              

NET EARNINGS

   $ 831,944     $ 677,373     $ 452,783     $ 322,707
                              

NET EARNINGS PER SHARE:

        

Basic

   $ 2.68     $ 2.13     $ 1.46     $ 1.02

Diluted

   $ 2.65     $ 2.11     $ 1.45     $ 1.01

AVERAGE SHARES OUTSTANDING:

        

Basic

     310,435       317,751       310,243       316,000

Diluted

     313,352       320,607       312,955       318,634

Page 3 of 5

Nucor Executive Offices:    1915 Rexford Road, Charlotte, North Carolina 28211

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


LOGO

   News Release

NUCOR REPORTS RECORD RESULTS FOR FIRST HALF AND SECOND QUARTER OF 2006

(Continued)

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands)

 

     July 1, 2006     Dec. 31, 2005  

Assets

    

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 883,321     $ 980,150  

Short-term investments

     1,270,808       857,360  

Accounts receivable, net

     1,224,390       1,000,629  

Inventories

     1,050,485       945,054  

Other current assets

     268,451       288,360  
                

Total current assets

     4,697,455       4,071,553  

PROPERTY, PLANT AND EQUIPMENT, NET

     2,825,107       2,855,717  

OTHER ASSETS

     223,191       211,517  
                

TOTAL ASSETS

   $ 7,745,753     $ 7,138,787  
                

Liabilities and stockholders’ equity

    

CURRENT LIABILITIES:

    

Long-term debt due within one year

   $ 1,250     $ 1,250  

Accounts payable

     712,999       501,624  

Salaries, wages and related accruals

     325,925       368,568  

Accrued expenses and other current liabilities

     474,535       384,257  
                

Total current liabilities

     1,514,709       1,255,699  
                

LONG-TERM DEBT DUE AFTER ONE YEAR

     922,300       922,300  
                

DEFERRED CREDITS AND OTHER LIABILITIES

     456,580       486,910  
                

MINORITY INTERESTS

     201,331       194,090  
                

STOCKHOLDERS’ EQUITY:

    

Common stock

     148,798       74,120  

Additional paid-in capital

     166,586       191,850  

Retained earnings

     5,246,265       4,709,111  

Unearned compensation

     —         (3,287 )

Accumulated other comprehensive income, net of income taxes

     18,370       46,600  
                
     5,580,019       5,018,394  

Treasury stock

     (929,186 )     (738,606 )
                

Total stockholders’ equity

     4,650,833       4,279,788  
                

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 7,745,753     $ 7,138,787  
                

Page 4 of 5

Nucor Executive Offices:    1915 Rexford Road, Charlotte, North Carolina 28211

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


LOGO

   News Release

NUCOR REPORTS RECORD RESULTS FOR FIRST HALF AND SECOND QUARTER OF 2006

(Continued)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

 

     Six Months (26 Weeks) Ended  
     July 1, 2006     July 2, 2005  

Operating activities:

    

Net earnings

   $ 831,944     $ 677,373  

Adjustments:

    

Depreciation

     182,488       185,271  

Deferred income taxes

     (45,900 )     (33,071 )

Minority interests

     88,919       51,669  

Settlement of natural gas hedges

     (3,868 )     —    

Changes in (exclusive of acquisitions):

    

Current assets

     (267,462 )     146,258  

Current liabilities

     147,752       (67,945 )

Other

     6,636       (10,163 )
                

Cash provided by operating activities

     940,509       949,392  
                

Investing activities:

    

Capital expenditures

     (137,316 )     (147,098 )

Investment in affiliates

     (26,756 )     (32,523 )

Disposition of plant and equipment

     1,674       611  

Acquisitions (net of cash acquired)

     (43,879 )     (152,864 )

Purchases of short-term investments

     (594,633 )     —    

Proceeds from sales of short-term investments

     181,185       —    
                

Cash used in investing activities

     (619,725 )     (331,874 )
                

Financing activities:

    

Issuance of common stock

     44,240       26,400  

Excess tax benefits from stock-based compensation

     10,500       —    

Distributions to minority interests

     (81,678 )     (29,772 )

Cash dividends

     (210,019 )     (126,602 )

Acquisition of treasury stock

     (180,656 )     (205,838 )
                

Cash used in financing activities

     (417,613 )     (335,812 )
                

Increase (decrease) in cash and cash equivalents

     (96,829 )     281,706  

Cash and cash equivalents - beginning of year

     980,150       779,049  
                

Cash and cash equivalents - end of six months

   $ 883,321     $ 1,060,755  
                

Page 5 of 5

Nucor Executive Offices:    1915 Rexford Road, Charlotte, North Carolina 28211

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