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 20, 2011                                                      

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 20, 2011, Nucor Corporation issued a news release reporting its financial results for the fiscal quarter ended October 1, 2011.  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 20, 2011
 
 
 
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 20, 2011
 
 
2

 
 
INDEX TO EXHIBITS
 
Exhibit No.   Description
   
99.1
News Release of Nucor Corporation, issued October 20, 2011

 
3

 

Nucor Reports Results for Third Quarter and First Nine Months of 2011

CHARLOTTE, N.C., Oct. 20, 2011 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $181.5 million, or $0.57 per diluted share, for the third quarter of 2011. By comparison, Nucor reported net earnings of $23.5 million, or $0.07 per diluted share, in the third quarter of 2010 and net earnings of $299.8 million, or $0.94 per diluted share, in the second quarter of 2011.

In the first nine months of 2011, Nucor reported consolidated net earnings of $641.1 million, or $2.02 per diluted share, compared with net earnings of $145.5 million, or $0.46 per diluted share, in the first nine months of 2010, an increase of 340%.

Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $28.0 million ($0.05 per diluted share) in the third quarter of 2011, compared with a charge of $32.0 million ($0.06 per diluted share) in the second quarter of 2011 and a charge of $50.0 million ($0.10 per diluted share) in the third quarter of 2010. The LIFO charge in the first nine months of 2011 was $91.0 million ($0.17 per diluted share) compared to a charge of $141.0 million ($0.28 per diluted share) in the first nine months of 2010.

Pre-operating and start-up costs of new facilities were $17.0 million in the third quarter of 2011 compared to $31.4 million in the second quarter of 2011 and $41.9 million in the third quarter of 2010. For the nine-month period, pre-operating and start-up costs decreased from $135.8 million in 2010 to $76.3 million in 2011. The decrease in pre-operating and start-up costs was due to several projects coming out of start-up, including the special bar quality ("SBQ") mill in Memphis, Tennessee, the wire rod products mill in Kingman, Arizona, and the galvanizing line in Decatur, Alabama.

Nucor's consolidated net sales increased 3% to $5.25 billion in the third quarter of 2011 compared to $5.11 billion in the second quarter of 2011 and increased 27% compared with $4.14 billion in the third quarter of 2010. Average sales price per ton decreased less than 1% from the second quarter of 2011 and increased 24% over the third quarter of 2010. Total tons shipped to outside customers were 5,785,000 tons in the third quarter of 2011, an increase of 3% over both the second quarter of 2011 and the third quarter of 2010. Total third quarter steel mill shipments increased 9% over the third quarter of 2010 and increased 5% over the second quarter of 2011. Third quarter downstream steel products shipments to outside customers increased 5% over the third quarter of 2010 and 7% over the second quarter of 2011.

In the first nine months of 2011, Nucor's consolidated net sales increased 27% to $15.19 billion, compared with $11.99 billion in last year's first nine months. Average sales price per ton increased 22% while total tons shipped to outside customers increased 4% over the first nine months of 2010.

The average scrap and scrap substitute cost per ton used in the third quarter of 2011 was $449, an increase of 1% over $444 in the second quarter of 2011 and an increase of 27% over $354 in the third quarter of 2010. The average scrap and scrap substitute cost per ton used increased 26% from $348 in the first nine months of 2010 to $439 in the first nine months of 2011.

Overall operating rates at our steel mills in the third quarter (74%) increased from the second quarter (71%) and third quarter of last year (68%). Steel mill utilization increased from 71% in the first nine months of 2010 to 75% in the first nine months of 2011.

Total energy costs increased approximately $3 per ton over both the second quarter of 2011 and the third quarter of 2010 primarily due to higher electricity unit costs. During the first nine months of 2011, total energy costs increased $1 per ton compared with the first nine months of 2010 also due to higher electricity unit costs.

Construction, primarily infrastructure, is continuing on our 2,500,000-ton direct reduced iron ("DRI") facility in Louisiana. The majority of the equipment will begin arriving in 2012, and we are on schedule for completion of construction and beginning of start-up in mid-2013.

Our liquidity position remains strong with $3.02 billion in cash and cash equivalents, short-term investments, and restricted cash and investments, and an untapped $1.3 billion revolving credit facility that matures in November 2012.

In September, Nucor's board of directors declared a cash dividend of $0.3625 per share payable on November 11, 2011 to stockholders of record on September 30, 2011. This dividend is Nucor's 154th consecutive quarterly cash dividend, a record we expect to continue.

While third quarter earnings of $0.57 per share were, as we expected, below the level achieved in the second quarter of 2011, they remain well ahead of 2010 levels of $0.07 per share. This deterioration from the second quarter reflects lower steel prices and significantly lower metal margins for sheet mill products due to increases in the supply/demand imbalances from both new domestic supply and increased imports. We continue to benefit from our diversified product mix as our other steel mills delivered a solid improvement quarter over quarter. Scrap prices remained relatively high and stable in the third quarter. This price stability, combined with generally low service center inventories, has minimized volatility in order rates and pricing in our long product business. End markets such as automotive, heavy equipment, energy and general manufacturing have continued to show the most strength compared to 2010 but have shown very little improvement compared to the first half of 2011. Although we have seen only minimal improvement in non-residential construction markets and expect to see only slight improvement in demand through the end of 2011, our combined construction businesses (steel mills and downstream facilities) will continue to operate profitably. We expect further margin compression in the sheet market in the fourth quarter. We also expect a smaller compression in plate margins due to imports. As a result, we expect our overall earnings to be lower than the third quarter. The magnitude of margin compression will be favorably impacted by expected lower scrap costs through the quarter. We will provide quantitative earnings guidance later in the quarter.

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," "could" 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; and (4) competitive pressure on sales and pricing, including competition from imports and substitute materials. These and other factors are outlined in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2010 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 20, 2011 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. 1, 2011


Oct. 2, 2010


Percentage Change


Oct. 1, 2011


Oct. 2, 2010


Percentage Change

Steel mills production


4,910


4,426


11%


14,796


13,786


7%

Steel mills total shipments


5,128


4,702


9%


15,192


14,005


8%















Sales tons to outside customers:














Steel mills


4,194


3,993


5%


12,664


11,981


6%


Joist


82


71


15%


219


202


8%


Deck


83


81


2%


234


230


2%


Cold finished


118


123


-4%


381


351


9%


Fabricated concrete














reinforcing steel


312


291


7%


808


751


8%


Other


996


1,074


-7%


3,055


3,170


-4%




5,785


5,633


3%


17,361


16,685


4%



CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(In thousands, except per share data)










 Three Months (13 Weeks) Ended  


 Nine Months (39 Weeks) Ended  










Oct. 1, 2011


Oct. 2, 2010


Oct. 1, 2011


Oct. 2, 2010









Net sales

$           5,252,144


$           4,140,069


$            15,193,887


$      11,990,877









Costs, expenses and other:








 Cost of products sold

4,776,283


3,949,779


13,613,399


11,279,755

 Marketing, administrative and other expenses

140,206


88,866


412,598


289,230

 Equity in losses of unconsolidated affiliates

11,247


5,732


14,190


31,481

 Interest expense, net

40,193


37,686


125,943


112,796


4,967,929


4,082,063


14,166,130


11,713,262

Earnings before income taxes and








 noncontrolling interests

284,215


58,006


1,027,757


277,615

Provision for income taxes

84,104


7,982


324,946


80,179

Net earnings

200,111


50,024


702,811


197,436

Earnings attributable to








 noncontrolling interests

18,593


26,529


61,679


51,985

Net earnings attributable to








 Nucor stockholders

$              181,518


$                23,495


$                 641,132


$           145,451









Net earnings per share:








 Basic

$0.57


$0.07


$2.02


$0.46

 Diluted

$0.57


$0.07


$2.02


$0.46









Average shares outstanding:








 Basic

317,194


316,223


316,866


315,842

 Diluted

317,287


316,756


317,061


316,483



CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands)














Oct. 1, 2011


Dec. 31, 2010

ASSETS






Current assets:






Cash and cash equivalents


$        1,101,437


$        1,325,406


Short-term investments


1,312,551


1,153,623


Accounts receivable, net


1,838,126


1,439,828


Inventories, net


2,188,828


1,557,574


Other current assets


452,954


384,744











Total current assets


6,893,896


5,861,175









Property, plant and equipment, net


3,766,643


3,852,118









Restricted cash and investments


607,721


598,482









Goodwill



1,830,338


1,836,294









Other intangible assets, net


802,086


856,125









Other assets


906,581


917,716











Total assets


$      14,807,265


$      13,921,910









LIABILITIES





Current liabilities:






Short-term debt


$               7,624


$             13,328


Long-term debt due within one year


350,000


-


Accounts payable


1,175,195


896,703


Salaries, wages and related accruals


344,511


207,168


Accrued expenses and other current liabilities


480,755


387,239











Total current liabilities


2,358,085


1,504,438









Long-term debt due after one year


3,930,200


4,280,200









Deferred credits and other liabilities


839,799


806,578











Total liabilities


7,128,084


6,591,216









EQUITY






Nucor stockholders' equity:






Common stock


150,480


150,181


Additional paid-in capital


1,748,732


1,711,518


Retained earnings


7,090,836


6,795,988


Accumulated other comprehensive loss,







net of income taxes


(21,599)


(27,776)


Treasury stock


(1,505,713)


(1,509,841)



Total Nucor stockholders' equity


7,462,736


7,120,070









Noncontrolling interests


216,445


210,624











Total equity


7,679,181


7,330,694











Total liabilities and equity


$      14,807,265


$      13,921,910



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)
















Nine Months (39 Weeks) Ended
















Oct. 1, 2011


Oct. 2, 2010










Operating activities:







Net earnings



$               702,811


$               197,436


Adjustments:








Depreciation



391,847


385,107



Amortization



51,675


53,378



Stock-based compensation

40,323


34,115



Deferred income taxes


40,855


30,150



Equity in losses of unconsolidated affiliates

14,190


31,481



Changes in assets and liabilities (exclusive of acquisitions):







Accounts receivable


(401,237)


(340,933)




Inventories


(634,048)


(325,549)




Accounts payable


280,545


107,902




Federal income taxes


2,217


(48,024)




Salaries, wages and related accruals

141,407


86,315




Other



42,559


4,863










Cash provided by operating activities

673,144


216,241










Investing activities:







Capital expenditures


(318,252)


(238,330)


Investment in and advances to affiliates

(76,678)


(427,788)


Repayment of advances to affiliates

15,000


48,885


Disposition of plant and equipment

22,155


18,998


Acquisitions (net of cash acquired)

-


(64,885)


Purchases of investments


(614,982)


(240,495)


Proceeds from the sale of investments

456,055


309,000


Purchases of restricted investments

(564,994)


-


Proceeds from the sale of restricted investments

18,299


-


Other changes in restricted cash and investments

538,644


-










Cash used in investing activities


(524,753)


(594,615)










Financing activities:







Net change in short-term debt


(5,646)


1,343


Repayment of long-term debt


-


(6,000)


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

-


598,992


Debt issuance costs


-


(4,050)


Issuance of common stock


6,957


3,648


Excess tax benefits from stock-based compensation

700


(1,500)


Distributions to noncontrolling interests

(55,855)


(42,723)


Cash dividends



(346,005)


(342,863)


Other financing activities


30,000


-










Cash provided by (used in) financing activities

(369,849)


206,847










Effect of exchange rate changes on cash

(2,511)


4,639










Decrease in cash and cash equivalents

(223,969)


(166,888)










Cash and cash equivalents - beginning of year

1,325,406


2,016,981










Cash and cash equivalents - end of nine months

$            1,101,437


$            1,850,093





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