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):  October 21, 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:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o 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 October 21, 2010, Nucor Corporation issued a news release reporting its financial results for the fiscal quarter ended October 2, 2010.  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 October 21, 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:  October 21, 2010
 
 
 

 

INDEX TO EXHIBITS
 
 
Exhibit No.  Description
   
99.1
News Release of Nucor Corporation, issued October 21, 2010
 
 
 

 

Nucor Reports Results for Third Quarter and First Nine Months of 2010

CHARLOTTE, N.C., Oct. 21 /PRNewswire-FirstCall/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $23.5 million, or $0.07 per diluted share, for the third quarter of 2010. By comparison, Nucor reported net earnings of $91.0 million, or $0.29 per diluted share, in the second quarter of 2010 and a net loss of $29.5 million, or $0.10 per diluted share, in the third quarter of 2009.

In the first nine months of 2010, Nucor reported consolidated net earnings of $145.5 million, or $0.46 per diluted share, compared with a net loss of $352.5 million, or $1.12 per diluted share, in the first nine months of 2009.

In the third quarter of 2010, Nucor's consolidated net sales decreased 1% to $4.14 billion compared with $4.20 billion in the second quarter of 2010 and increased 33% compared with $3.12 billion in the third quarter of 2009.  Average sales price per ton decreased 3% from the second quarter of 2010 and increased 20% over the third quarter of 2009.  Total tons shipped to outside customers were 5,633,000 tons in the third quarter of 2010, an increase of 1% over the second quarter of 2010 and an increase of 10% over the third quarter of 2009.  Total third quarter steel mill shipments increased 9% over the third quarter of 2009 and increased 2% over the second quarter of 2010.  Third quarter downstream steel products shipments to outside customers increased 13% over the third quarter of 2009 and 5% over the second quarter of 2010.

In the first nine months of 2010, Nucor's consolidated net sales increased 45% to $11.99 billion, compared with $8.25 billion in last year's first nine months.  Average sales price per ton increased 13% while total tons shipped to outside customers increased 29% over the first nine months of 2009.

The average scrap and scrap substitute cost per ton used in the third quarter of 2010 was $354, a decrease of 5% compared with $373 in the second quarter of 2010 and an increase of 18% over $299 in the third quarter of 2009.  The average scrap and scrap substitute cost per ton used in the first nine months of 2010 increased 12% to $348 compared to $312 in the first nine months of 2009.  

Nucor recorded a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $50 million in the third quarter of 2010, compared with a charge of $67 million in the second quarter of 2010 and a credit of $120 million in the third quarter of 2009.  In the first nine months of 2010, the LIFO charge was $141 million compared to a credit of $350 million in the first nine months of 2009.  The third quarter LIFO charge was less than anticipated at the time we gave our quantitative guidance.

Overall operating rates at our steel mills in the third quarter (68%) were down from the second quarter (71%) and were flat compared to the third quarter of last year.  Steel mill utilization increased from 53% in the first nine months of 2009 to 71% in the first nine months of 2010.

Total energy costs increased approximately $4 per ton from the second quarter of 2010 and from the third quarter of 2009 primarily due to higher electricity unit costs.  During the first nine months of 2010, total energy costs decreased $4 per ton compared with the first nine months of 2009 primarily due to an increase in production.  

Pre-operating and start-up costs of new facilities decreased from $47.1 million in the third quarter of 2009 to $41.9 million in the third quarter of 2010 and increased from $111.9 million in the first nine months of 2009 to $135.8 million in the first nine months of 2010.  In 2010, these costs primarily related to the special bar quality ("SBQ") mill in Memphis, Tennessee, and the galvanizing line in Decatur, Alabama.

In September, Nucor issued $600 million in debt maturing in 2022 with an interest rate of 4.125%. Our liquidity position remains strong with $2.01 billion in cash and cash equivalents and short-term investments and an undrawn $1.3 billion revolving credit facility that matures in November 2012.

In September, Nucor's board of directors declared a cash dividend of $0.36 per share payable on November 11, 2010 to stockholders of record on September 30, 2010.  This dividend is Nucor's 150th consecutive quarterly cash dividend, a record we expect to continue.

Also in September, Nucor announced the selection of St. James Parish, Louisiana, for the construction of a planned $750 million iron making facility, subject to receipt of all requisite environmental permits.  The 2,500,000 tons-per-year iron making facility will use direct reduction technology to convert natural gas and iron ore pellets into high quality direct reduced iron ("DRI") used by Nucor's steel mills, along with recycled scrap, in producing numerous high quality steel products such as sheet, plate and SBQ steel.  The DRI facility is the first phase of a multi-phase plan that may include an additional DRI facility, coke plant, blast furnace, pellet plant and steel mill.

Operating results excluding LIFO deteriorated from the second quarter, primarily due to lower margins stemming from lower realized selling prices on most steel mill products.  This performance is consistent with our comments at the end of the second quarter in which we noted that there was a general slowdown taking place across all product lines.  The economy has entered into a period of increased uncertainty, both in the U.S. and globally.  The fourth quarter may indeed turn out to be the most challenging quarter of the year.  The most challenging markets for our products continue to be those associated with residential and non-residential construction, which continue to show little, if any, strength.  This is true for our downstream businesses, particularly rebar fabrication where pricing has continued to deteriorate because of extremely weak demand.  It is also true for our sheet and plate mills, which compete in an over-supplied market that has been further pressured by recent new sheet capacity.  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.

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 competition 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, 2009 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 third quarter results on October 21, 2010 at 2:00 p.m. eastern time.  The conference call will be available over the Internet at www.nucor.com, under Investor Relations.  

Unaudited figures are as follows:

TONNAGE DATA

(in thousands)


















Three Months (13 Weeks) Ended


Nine Months (39 Weeks) Ended




Oct. 2, 2010


Oct. 3, 2009


Percentage
Change


Oct. 2, 2010


Oct. 3, 2009


Percentage
Change

Steel mills production


4,426


4,433


-


13,786


10,276


34%

Steel mills total shipments

4,702


4,312


9%


14,005


10,119


38%















Sales tons to outside customers:














Steel mills


3,993


3,705


8%


11,981


8,707


38%


Joist


71


69


3%


202


194


4%


Deck


81


84


-4%


230


232


-1%


Cold finished


123


87


41%


351


243


44%


Fabricated concrete














reinforcing steel


291


280


4%


751


743


1%


Other


1,074


889


21%


3,170


2,819


12%




5,633


5,114


10%


16,685


12,938


29%



CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(In thousands, except per share data)










 Three Months (13 Weeks) Ended  


 Nine Months (39 Weeks) Ended  










Oct. 2, 2010


Oct. 3, 2009


Oct. 2, 2010


Oct. 3, 2009









Net sales

$4,140,069


$3,120,005


$11,990,877


$8,252,352









Costs, expenses and other:








 Cost of products sold

3,949,779


3,000,851


11,279,755


8,319,079

 Marketing, administrative and other expenses

88,866


96,280


289,230


268,783

 Equity in losses of unconsolidated affiliates

5,732


9,633


31,481


69,431

 Interest expense, net

37,686


34,725


112,796


99,047


4,082,063


3,141,489


11,713,262


8,756,340

Earnings (loss) before income taxes and








noncontrolling interests

58,006


(21,484)


277,615


(503,988)

Provision for (benefit from) income taxes

7,982


(16,173)


80,179


(180,383)

Net earnings (loss)

50,024


(5,311)


197,436


(323,605)

Earnings attributable to








noncontrolling interests

26,529


24,227


51,985


28,915

Net earnings (loss) attributable to








Nucor stockholders

$     23,495


$    (29,538)


$     145,451


$  (352,520)









Net earnings (loss) per share:








 Basic

$0.07


($0.10)


$0.46


($1.12)

 Diluted

$0.07


($0.10)


$0.46


($1.12)









Average shares outstanding:








 Basic

316,223


315,173


315,842


314,743

 Diluted

316,756


315,173


316,483


314,743



CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands)














Oct. 2, 2010


Dec. 31, 2009

ASSETS






Current assets:






Cash and cash equivalents


$        1,850,093


$        2,016,981


Short-term investments


156,495


225,000


Accounts receivable, net


1,468,676


1,116,035


Inventories, net


1,649,605


1,312,903


Other current assets


636,244


511,329











Total current assets


5,761,113


5,182,248









Property, plant and equipment, net


3,847,931


4,013,836









Goodwill



1,831,685


1,803,021









Other intangible assets, net


870,636


902,922









Other assets


949,560


669,877











Total assets


$      13,260,925


$      12,571,904









LIABILITIES





Current liabilities:






Short-term debt


$               3,092


$               1,748


Long-term debt due within one year


-


6,000


Accounts payable


817,785


707,038


Salaries, wages and related accruals


236,505


154,997


Accrued expenses and other current liabilities


420,883


357,274











Total current liabilities


1,478,265


1,227,057









Long-term debt due after one year


3,680,200


3,080,200









Deferred credits and other liabilities


672,111


680,358











Total liabilities


5,830,576


4,987,615









EQUITY






Nucor stockholders' equity:






Common stock


150,158


149,877


Additional paid-in capital


1,701,921


1,675,777


Retained earnings


6,922,580


7,120,218


Accumulated other comprehensive loss,







net of income taxes


(37,356)


(41,056)


Treasury stock


(1,509,986)


(1,514,290)



Total Nucor stockholders' equity


7,227,317


7,390,526









Noncontrolling interests


203,032


193,763











Total equity


7,430,349


7,584,289











Total liabilities and equity


$      13,260,925


$      12,571,904



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)
















Nine Months (39 Weeks) Ended
















Oct. 2, 2010


Oct. 3, 2009










Operating activities:







Net earnings (loss)



$    197,436


$   (323,605)


Adjustments:








Depreciation



385,107


367,966



Amortization



53,378


54,138



Stock-based compensation

34,115


43,460



Deferred income taxes


30,150


51,104



Equity in losses of unconsolidated affiliates

31,481


69,431



Changes in assets and liabilities (exclusive of acquisitions):







Accounts receivable


(340,933)


92,210




Inventories


(325,549)


1,113,104




Accounts payable


107,902


212,291




Federal income taxes


(48,024)


(381,153)




Salaries, wages and related accruals

86,315


(366,261)




Other



4,863


17,575










Cash provided by operating activities

216,241


950,260










Investing activities:







Capital expenditures


(238,330)


(316,024)


Investment in and advances to affiliates

(427,788)


(60,295)


Repayment of advances to affiliates

48,885


-


Disposition of plant and equipment

18,998


10,486


Acquisitions (net of cash acquired)

(64,885)


(24,714)


Purchases of investments


(240,495)


(261,389)


Proceeds from the sale of investments

309,000


-










Cash used in investing activities


(594,615)


(651,936)










Financing activities:







Net change in short-term debt


1,343


(5,222)


Repayment of long-term debt


(6,000)


(180,400)


Proceeds from issuance of long-term debt, net of discount

598,992


-


Debt issuance costs


(4,050)


-


Issuance of common stock


3,648


3,556


Excess tax benefits from stock-based compensation

(1,500)


(3,200)


Distributions to noncontrolling interests

(42,723)


(186,104)


Cash dividends



(342,863)


(332,096)










Cash provided by (used in) financing activities

206,847


(703,466)










Effect of exchange rate changes on cash

4,639


7,683










Decrease in cash and cash equivalents

(166,888)


(397,459)










Cash and cash equivalents - beginning of year

2,016,981


2,355,130










Cash and cash equivalents - end of nine months

$ 1,850,093


$ 1,957,671





CONTACT:  Nucor Executive Offices, +1-704-366-7000, or fax, +1-704-362-4208