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 26, 2010

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 January 26, 2010, Nucor Corporation issued a news release reporting its financial results for the year ended December 31, 2009.  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 January 26, 2010

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:  January 26, 2010
 
 
2

 

INDEX TO EXHIBITS
 
Exhibit No.
 
Description
     
99.1
 
News Release of Nucor Corporation, issued January 26, 2010
 
 
3

 
 
News Release

 
NUCOR REPORTS RESULTS FOR FOURTH QUARTER AND YEAR ENDING 2009
 
CHARLOTTE, NORTH CAROLINA, January 26, 2010 – Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $58.9 million or $0.18 per diluted share, for the fourth quarter of 2009, an improvement over losses of $0.60, $0.43 and $0.10 per diluted share in the first, second and third quarters of 2009, respectively.  The results compare to a net income of $105.9 million or $0.34 per diluted share for the fourth quarter of 2008.
 
For the full year of 2009, Nucor reported a consolidated net loss of $293.6 million or $0.94 per diluted share, compared with net earnings of $1.83 billion or $5.98 per diluted share for 2008.
 
In the fourth quarter of 2009, Nucor’s consolidated net sales decreased 6% to $2.94 billion compared with $3.12 billion in the third quarter of 2009 and decreased 29% compared with $4.15 billion in the fourth quarter of 2008.  Average sales price per ton increased 4% from the third quarter of 2009 and decreased 35% from the fourth quarter of 2008.  Total tons shipped to outside customers were 4,638,000 tons in the fourth quarter of 2009, a decrease of 9% from the third quarter of 2009 and an increase of 8% over last year’s fourth quarter.
 
For the full year 2009, Nucor’s consolidated net sales decreased 53% to $11.19 billion, compared with $23.66 billion for 2008.  Average sales price per ton decreased 32% while total tons shipped to outside customers decreased 30% from 2008 levels.
 
As discussed in our guidance, fourth quarter results were significantly impacted by reduced earnings in our downstream, long products and scrap businesses; however, the sheet mills benefited from the absence of high-cost pig iron inventories.  The average scrap and scrap substitute cost per ton used in the fourth quarter of 2009 was $276, a decrease of 8% compared with $299 in the third quarter and a decrease of 37% from $435 in the fourth quarter of 2008.   For the full year 2009, the average scrap and scrap substitute cost per ton used was $303, a decrease of 31% from $438 in 2008.
 
In the fourth quarter of 2009, Nucor recorded a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $116.9 million, compared with a credit of $120 million in the third quarter of 2009 and a credit of $81.2 million in the fourth quarter of 2008.  For the full year 2009, the LIFO credit was $466.9 million, compared with a charge of $341.8 million in 2008.
 
Overall steel mill utilization decreased from 69% in the third quarter of 2009 to 58% in the fourth quarter of 2009, and increased from 48% in last year’s fourth quarter.  Steel mill utilization rates decreased from 80% for the full year 2008 to 54% for the full year 2009.  The quarter over quarter decrease in utilization was due to fourth quarter seasonal issues that are separate of the general economic slowdown due to the holidays and year-end plant shutdowns by some of our customers.
 
Page 1 of 6
 

Nucor Executive Offices:    1915 Rexford Road,  Charlotte, North Carolina   28211
Phone 704-366-7000    Fax 704-362-4208    www.nucor.com
 
 

 
 
News Release


NUCOR REPORTS RESULTS FOR FOURTH QUARTER AND YEAR ENDING 2009 (Continued)

Total energy costs in the fourth quarter of 2009 increased approximately $3 per ton from the third quarter of 2009 due to higher natural gas prices coupled with reduced productivity.  Total energy costs decreased approximately $5 per ton from the fourth quarter of 2008 to the fourth quarter of 2009.  For the full year 2009, total energy costs increased approximately $1 per ton from 2008.
 
Pre-operating and start-up costs of new facilities decreased from $53.8 million in the fourth quarter of 2008 to $48.1 million in the fourth quarter of 2009 and increased from $128.6 million in 2008 to $160.0 million in 2009.  In 2009, these costs primarily related to the SBQ mill in Memphis, Tennessee, the Castrip® project in Blytheville, Arkansas, the proposed iron-making facility, and the galvanizing line in Decatur, Alabama.
 
Our liquidity position remains strong with $2.24 billion in cash and cash equivalents and short-term investments and an untapped $1.3 billion revolving credit facility that matures in November 2012.
 
In December, Nucor’s board of directors increased the cash dividend 2.9% to $0.36 per share.  The dividend is payable on February 11, 2010 to stockholders of record on December 31, 2009 and is Nucor’s 147th consecutive quarterly cash dividend.  Nucor continues a record of 37 consecutive years of increases to its regular dividend.
 
Going forward, we believe that the most challenging markets for our products will be those associated with residential and non-residential construction, which continue to show little, if any, strength.  While we expect improvements of approximately 5% in steel mill shipments in the first quarter, we also expect significant increases in both sales prices and scrap costs.  As a result, we project a LIFO expense of about $25 million in the first quarter of 2010 compared to a LIFO credit of $116.9 million in the fourth quarter of 2009 and a credit of $105 million in the first quarter of 2009.  Actual first quarter earnings will be significantly impacted by these inventory valuation adjustments.  We will provide additional and more quantitative earnings guidance after the midpoint between our quarterly earnings releases.
 
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, 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.
 
Page 2 of 6
 

Nucor Executive Offices:    1915 Rexford Road,  Charlotte, North Carolina   28211
Phone 704-366-7000    Fax 704-362-4208    www.nucor.com
 
 

 

News Release

 
NUCOR REPORTS RESULTS FOR FOURTH QUARTER AND YEAR ENDING 2009 (Continued)
 
Certain statements contained in this news release are “forward-looking statements” that involve risks and uncertainties.  The words “believe,” “expect,” “project,” “will,” “should” 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) 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, 2008 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 fourth quarter results on January 26, 2010 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)
 
   
Quarter Ended December 31,
   
Year Ended December 31,
 
   
2009
   
2008
   
Percentage
Change
   
2009
   
2008
   
Percentage
Change
 
Steel mills production
    3,722       3,062       22 %     13,998       20,446       -32 %
Steel mills total shipments
    3,917       3,426       14 %     14,036       20,932       -33 %
                                                 
Sales tons to outside customers:
                                               
Steel mills
    3,368       2,900       16 %     12,075       18,185       -34 %
Joist
    70       94       -26 %     264       485       -46 %
Deck
    78       110       -29 %     310       498       -38 %
Cold finished
    87       91       -4 %     330       485       -32 %
Fabricated concrete reinforcing steel
    211       286       -26 %     954       955       0 %
Other
    824       813       1 %     3,643       4,579       -20 %
      4,638       4,294       8 %     17,576       25,187       -30 %
 
Page 3 of 6
 

Nucor Executive Offices:    1915 Rexford Road,  Charlotte, North Carolina   28211
Phone 704-366-7000    Fax 704-362-4208    www.nucor.com
 
 

 
News Release

 
NUCOR REPORTS RESULTS FOR FOURTH QUARTER AND YEAR ENDING 2009 (Continued)
 
Unaudited figures are as follows:
 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)
 
   
Quarter Ended December 31,
   
Year Ended December 31,
 
   
2009
   
2008
   
2009
   
2008
 
                         
Net sales
  $ 2,937,944     $ 4,150,936     $ 11,190,296     $ 23,663,324  
                                 
Costs, expenses and other:
                               
Cost of products sold
    2,716,824       3,670,629       11,035,903       19,612,283  
Marketing, administrative and other expenses
    92,605       145,343       430,819       750,984  
Impairment of non-current assets
    2,800       105,183       2,800       105,183  
Interest expense, net
    35,705       22,374       134,752       90,483  
      2,847,934       3,943,529       11,604,274       20,558,933  
                                 
Earnings (loss) before income taxes and noncontrolling interests
    90,010       207,407       (413,978 )     3,104,391  
Provision for (benefit from) income taxes
    3,583       43,514       (176,800 )     959,480  
Net earnings (loss)
    86,427       163,893       (237,178 )     2,144,911  
Earnings attributable to noncontrolling interests
    27,520       58,001       56,435       313,921  
Net earnings (loss) attributable to Nucor stockholders
  $ 58,907     $ 105,892     $ (293,613 )   $ 1,830,990  
                                 
Net earnings (loss) per share:
                               
Basic
  $ 0.19     $ 0.34     $ (0.94 )   $ 5.99  
Diluted
  $ 0.18     $ 0.34     $ (0.94 )   $ 5.98  
                                 
Average shares outstanding:
                               
Basic
    315,274       314,135       314,873       304,525  
Diluted
    315,740       314,247       314,873       305,006  
 
Page 4 of 6
 

Nucor Executive Offices:    1915 Rexford Road,  Charlotte, North Carolina   28211
Phone 704-366-7000    Fax 704-362-4208    www.nucor.com
 
 

 
 
News Release

 
NUCOR REPORTS RESULTS FOR FOURTH QUARTER AND YEAR ENDING 2009 (Continued)
 
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
 
   
Dec. 31, 2009
   
Dec. 31, 2008
 
ASSETS
           
Current assets:
           
Cash and cash equivalents
  $ 2,016,981     $ 2,355,130  
Short-term investments
    225,000       -  
Accounts receivable, net
    1,116,035       1,228,807  
Inventories
    1,312,903       2,408,157  
Other current assets
    511,329       405,392  
                 
Total current assets
    5,182,248       6,397,486  
                 
Property, plant and equipment, net
    4,013,836       4,131,861  
                 
Goodwill
    1,803,021       1,732,045  
                 
Other intangible assets, net
    902,922       946,545  
                 
Other assets
    669,877       666,506  
                 
Total assets
  $ 12,571,904     $ 13,874,443  
                 
LIABILITIES
               
Current liabilities:
               
Short-term debt
  $ 1,748     $ 8,622  
Long-term debt due within one year
    6,000       180,400  
Accounts payable
    707,038       534,161  
Federal income taxes payable
    -       199,044  
Salaries, wages and related accruals
    154,997       580,090  
Accrued expenses and other current liabilities
    357,274       351,875  
                 
Total current liabilities
    1,227,057       1,854,192  
                 
Long-term debt due after one year
    3,080,200       3,086,200  
                 
Deferred credits and other liabilities
    680,358       677,370  
                 
Total liabilities
    4,987,615       5,617,762  
                 
EQUITY
               
Nucor stockholders' equity:
               
Common stock
    149,877       149,628  
Additional paid-in capital
    1,675,777       1,629,981  
Retained earnings
    7,120,218       7,860,629  
Accumulated other comprehensive loss, net of income taxes
    (41,056 )     (190,262 )
Treasury stock
    (1,514,290 )     (1,520,772 )
      7,390,526       7,929,204  
                 
Noncontrolling interests
    193,763       327,477  
                 
Total equity
    7,584,289       8,256,681  
                 
Total liabilities and equity
  $ 12,571,904     $ 13,874,443  
 
Page 5 of 6
 

Nucor Executive Offices:    1915 Rexford Road,  Charlotte, North Carolina   28211
Phone 704-366-7000    Fax 704-362-4208    www.nucor.com
 
 

 
 
News Release

 
NUCOR REPORTS RESULTS FOR FOURTH QUARTER AND YEAR ENDING 2009 (Continued)
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
 
   
Year Ended December 31,
 
   
2009
   
2008
 
             
Operating activities:
           
Net earnings (loss)
  $ (237,178 )   $ 2,144,911  
Adjustments:
               
Depreciation
    494,035       479,484  
Amortization
    72,388       69,423  
Stock-based compensation
    54,665       49,873  
Deferred income taxes
    88,546       (293,476 )
Impairment of non-current assets
    2,800       105,183  
Changes in assets and liabilities
               
(exclusive of acquisitions):
               
Accounts receivable
    141,104       855,572  
Inventories
    1,117,600       (364,280 )
Accounts payable
    170,229       (861,334 )
Federal income taxes
    (422,116 )     278,663  
Salaries, wages and related accruals
    (419,800 )     129,927  
Other
    120,024       (95,218 )
                 
Cash provided by operating activities
    1,182,297       2,498,728  
                 
Investing activities:
               
Capital expenditures
    (390,500 )     (1,018,980 )
Investment in and advances to affiliates
    (63,563 )     (720,713 )
Disposition of plant and equipment
    11,371       17,180  
Acquisitions (net of cash acquired)
    (32,720 )     (1,826,030 )
Purchases of investments
    (261,389 )     (289,423 )
Proceeds from the sale of investments
    36,389       499,709  
Proceeds from currency derivative contracts
    -       1,441,862  
Settlement of currency derivative contracts
    -       (1,424,291 )
                 
Cash used in investing activities
    (700,412 )     (3,320,686 )
                 
Financing activities:
               
Net change in short-term debt
    (6,908 )     (149,837 )
Repayment of long-term debt
    (180,400 )     -  
Proceeds from issuance of long-term debt
    -       989,715  
Debt issuance costs
    -       (6,937 )
Issuance of common stock
    3,716       1,996,690  
Excess tax benefits from stock-based compensation
    (3,100 )     10,600  
Distributions to noncontrolling interests
    (190,233 )     (275,075 )
Cash dividends
    (443,109 )     (658,051 )
Acquisition of treasury stock
    -       (123,960 )
                 
Cash provided by (used in) financing activities
    (820,034 )     1,783,145  
                 
Increase (decrease) in cash and cash equivalents
    (338,149 )     961,187  
                 
Cash and cash equivalents - beginning of year
    2,355,130       1,393,943  
                 
Cash and cash equivalents - end of year
  $ 2,016,981     $ 2,355,130  
 
Page 6 of 6
 

Nucor Executive Offices:    1915 Rexford Road,  Charlotte, North Carolina   28211
Phone 704-366-7000    Fax 704-362-4208    www.nucor.com