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 19, 2007

 


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 19, 2007, Nucor Corporation issued a news release reporting its financial results for the fiscal quarter ended March 31, 2007. 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

 

  (c) Exhibits

99.1    News Release of Nucor Corporation, issued April 19, 2007

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 19, 2007

 

2


INDEX TO EXHIBITS

 

Exhibit No.  

Description

99.1   News Release of Nucor Corporation, issued April 19, 2007

 

3

News Release

Exhibit 99.1

 

LOGO    News Release

NUCOR REPORTS RESULTS FOR FIRST QUARTER OF 2007

CHARLOTTE, NORTH CAROLINA, April 19, 2007 – Nucor Corporation (NYSE: NUE) announced today record first quarter net earnings for the fourth consecutive year. Consolidated net earnings for the first quarter of 2007 were $381.0 million, similar to the first quarter of 2006’s net earnings of $380.0 million and a decrease of 6% from the fourth quarter of 2006 net earnings of $405.1 million. Diluted earnings per share increased 4% to $1.26 from $1.21 in the first quarter of 2006 and decreased 6% from $1.34 in the fourth quarter of 2006.

Nucor’s consolidated net sales increased 6% to $3.77 billion compared with $3.55 billion in the first quarter of 2006 and increased 9% compared with $3.47 billion in the fourth quarter of 2006. In the first quarter of 2007, average sales price per ton increased 6% from the first quarter of 2006 and decreased 2% compared to the fourth quarter of 2006. Total tons shipped to outside customers increased 1% from the first quarter of 2006 and increased 11% from the fourth quarter of 2006.

The average scrap and scrap substitute cost per ton used increased 9% from $237 in the first quarter of 2006 to $259 in the first quarter of 2007 and increased 7% from $243 in the fourth quarter of 2006. Total energy costs decreased approximately $3 per ton from the first quarter of 2006 to the first quarter of 2007 and decreased approximately $1 per ton from the fourth 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 quarter of 2007, compared with a charge of $9.0 million in the first quarter of 2006 and a credit of $39.6 million in the fourth quarter of 2006.

Steel production decreased 4% to 5,585,000 tons in the first quarter of 2007, compared with 5,791,000 tons produced in the first quarter of 2006, and increased 10% over the 5,064,000 tons produced in the fourth quarter of 2006. Total steel shipments decreased 1% to 5,660,000 tons in the first quarter of 2007, compared with 5,721,000 tons in last year’s first quarter, and increased 12% over the 5,060,000 total tons shipped in the fourth quarter. Steel shipments to outside customers decreased 1% to 5,229,000 tons in the first quarter of 2007, compared with 5,263,000 tons in the first quarter of 2006, and increased 11% over the 4,713,000 tons shipped in the fourth quarter. In the steel products segment, steel joist production during the first quarter was 121,000 tons, compared with 139,000 tons in the first quarter of 2006, a decrease of 13%. Steel deck sales increased 25% from 85,000 tons in the first quarter of 2006 to 106,000 tons in this year’s first quarter. Cold finished steel sales decreased 6% to 90,000 tons, compared with 96,000 tons in the first quarter of 2006.

Starting with the May 11, 2007 dividend payment, Nucor is increasing the regular quarterly cash dividend rate from $0.10 to $0.11 per share. In addition to the $0.11 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 $0.61 per share. Nucor has increased its dividend every year since Nucor began paying dividends 34 years ago.

In March 2007, a wholly owned subsidiary of Nucor acquired all the issued and outstanding shares of Harris Steel Group Inc. (“Harris Steel”) for a cash purchase price of Cdn$46.25 per Harris Steel share. The total purchase price of approximately $1.45 billion includes $1.06 billion paid in cash and the assumption of $393.6 million in liabilities. Harris Steel, which now operates as a subsidiary of Nucor, manufactures industrial products principally in the U.S. and Canada. Harris Steel also participates in steel trading on a worldwide basis, and in the distribution of reinforcing steel and related products to U.S. customers. The transaction has been immediately accretive to Nucor.

Also in the first quarter, Nucor sold its interest in the Ferro Gusa Carajas S.A. joint venture to its partner, Companhia Vale do Rio Doce (“CVRD”), and has entered into an off-take agreement with CVRD for the production of this facility.

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

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

 

Page 1 of 4


LOGO    News Release

NUCOR REPORTS RESULTS FOR FIRST QUARTER OF 2007 (Continued)

Our outlook for the second quarter remains positive with rising prices for most of our products favorably impacting our margins as we work through our higher cost scrap inventories. Overall, end-use demand remains very healthy for long products and plate. While we see improving conditions in our flat-rolled business, these improvements are coming from the very soft market conditions of the fourth quarter of 2006 and the first quarter of 2007. We expect this improvement to continue through the second and third quarters.

The cost of ferrous scrap is down sharply for our April buys and should be down again in May. This will have a positive impact on margins by mid-May through the end of the quarter. We expect to see some margin compression in some products in the early part of the second quarter, as the first quarter scrap run-up works its way through our inventories.

Risks to our outlook for the second quarter remain: scrap volatility, potential surges in imports, and a slowing down of inventory reductions by our customers. We will provide numerical guidance near the midpoint of the interval between earnings reports.

Nucor and 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 joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; and wire and wire mesh. 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, 2006 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 19, 2007 at 2:00 p.m. eastern time. The conference call will be available over the Internet at www.nucor.com, under Investor Relations.

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

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

 

Page 2 of 4


LOGO    News Release

NUCOR REPORTS RESULTS FOR FIRST QUARTER OF 2007 (Continued)

Unaudited figures are as follows:

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(In thousands, except per share data)

 

     Three Months (13 Weeks) Ended  
     March 31, 2007     As Adjusted
April 1, 2006
 

NET SALES

   $ 3,768,885     $ 3,545,097  
                

COSTS, EXPENSES AND OTHER:

    

Cost of products sold

     2,991,598       2,778,171  

Marketing, administrative and other expenses

     136,210       143,200  

Interest income, net

     (9,162 )     (5,732 )

Minority interests

     60,572       39,858  
                
     3,179,218       2,955,497  
                

EARNINGS BEFORE INCOME TAXES

     589,667       589,600  

Provision for income taxes

     208,638       209,569  
                

NET EARNINGS

   $ 381,029     $ 380,031  
                

NET EARNINGS PER SHARE:

    

Basic

   $ 1.27     $ 1.22  

Diluted

   $ 1.26     $ 1.21  

AVERAGE SHARES OUTSTANDING:

    

Basic

     301,034       310,626  

Diluted

     303,482       313,748  

(On January 1, 2007, Nucor adopted FASB Staff Position AUG AIR-1, “Accounting for Planned Major Maintenance Activities,” which eliminates the method that Nucor had previously used of accruing in advance for planned major maintenance activities. In accordance with this position statement, Nucor now uses the deferral method of accounting for such maintenance activities. The prior period has been adjusted to reflect the effects of applying this new accounting principle.)

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

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

 

Page 3 of 4


LOGO    News Release

NUCOR REPORTS RESULTS FOR FIRST QUARTER OF 2007 (Continued)

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands)

 

     March 31, 2007     As Adjusted
Dec. 31, 2006
 

Assets

    

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 881,606     $ 785,651  

Short-term investments

     487,465       1,410,633  

Accounts receivable, net

     1,432,123       1,067,322  

Inventories

     1,408,285       1,141,194  

Other current assets

     218,954       278,265  
                

Total current assets

     4,428,433       4,683,065  

PROPERTY, PLANT AND EQUIPMENT, NET

     2,978,735       2,856,415  

GOODWILL

     625,117       143,265  

OTHER INTANGIBLE ASSETS, NET

     308,144       5,015  

OTHER ASSETS

     145,305       205,258  
                

TOTAL ASSETS

   $ 8,485,734     $ 7,893,018  
                

Liabilities and stockholders’ equity

    

CURRENT LIABILITIES:

    

Short-term debt

   $ 92,774     $ —    

Accounts payable

     796,320       516,640  

Federal income taxes payable

     136,051       —    

Salaries, wages and related accruals

     226,164       455,051  

Accrued expenses and other current liabilities

     428,069       450,226  
                

Total current liabilities

     1,679,378       1,421,917  
                

LONG-TERM DEBT DUE AFTER ONE YEAR

     922,300       922,300  
                

DEFERRED CREDITS AND OTHER LIABILITIES

     545,533       448,084  
                

MINORITY INTERESTS

     201,860       243,366  
                

STOCKHOLDERS’ EQUITY:

    

Common stock

     149,150       149,006  

Additional paid-in capital

     221,201       195,543  

Retained earnings

     6,067,615       5,840,067  

Accumulated other comprehensive income, net of income taxes

     23,064       4,470  
                
     6,461,030       6,189,086  

Treasury stock

     (1,324,367 )     (1,331,735 )
                

Total stockholders’ equity

     5,136,663       4,857,351  
                

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 8,485,734     $ 7,893,018  
                

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

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

 

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