SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 26, 2012
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation)
|(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
(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 January 26, 2012, Nucor Corporation issued a news release reporting its financial results for the year ended December 31, 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
99.1 News Release of Nucor Corporation, issued January 26, 2012
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.
|By:||/s/ James D. Frias|
|James D. Frias|
Chief Financial Officer, Treasurer
and Executive Vice President
Date: January 26, 2012
INDEX TO EXHIBITS
|99.1||News Release of Nucor Corporation, issued January 26, 2012|
Nucor Reports Results for Fourth Quarter and Year Ended 2011
CHARLOTTE, N.C., Jan. 26, 2012 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $778.2 million, or $2.45 per diluted share, for the full year 2011, an increase of more than fivefold over net earnings of $134.1 million, or $0.42 per diluted share for the full year 2010.
Nucor reported consolidated net earnings of $137.1 million, or $0.43 per diluted share, for the fourth quarter of 2011, compared with a net loss of $11.4 million, or $0.04 per diluted share, in the fourth quarter of 2010 and net earnings of $181.5 million, or $0.57 per diluted share, in the third quarter of 2011.
The 2011 results were impacted by a non-cash gain of $29.0 million ($0.06 per diluted share) recognized in the fourth quarter for the correction of an actuarial calculation related to the medical plan covering certain eligible early retirees. This calculation did not have a material impact on any previously reported results.
Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $142.8 million ($0.28 per diluted share) for the full year 2011, compared with a charge of $164.0 million in 2010 ($0.32 per diluted share). The LIFO charge in the fourth quarter of 2011 was $51.8 million ($0.11 per diluted share), compared with a charge of $28.0 million in the third quarter of 2011 ($0.05 per diluted share) and a charge of $23.0 million in the fourth quarter of 2010 ($0.04 per diluted share). The fourth quarter LIFO charge was approximately $27 million less than anticipated at the time we gave our quantitative guidance.
Pre-operating and start-up costs of new facilities were $97.1 million for the full year 2011, a decrease from $174.8 million for the full year 2010. Pre-operating and start-up costs were $20.8 million in the fourth quarter of 2011 compared to $17.0 million in the third quarter of 2011 and $39.0 million in the fourth quarter of 2010. The decrease in pre-operating and start-up costs from the prior year 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.
For the full year 2011, Nucor's consolidated net sales increased 26% to $20.02 billion, compared with $15.84 billion for 2010. Average sales price per ton increased 21% from full year 2010. Total tons shipped to outside customers were 23,044,000 tons, an increase of 5% over 2010 levels.
Nucor's consolidated net sales decreased 8% to $4.83 billion in the fourth quarter of 2011 compared with $5.25 billion in the third quarter of 2011 and increased 25% compared with $3.85 billion in the fourth quarter of 2010. Average sales price per ton decreased 6% from the third quarter of 2011 and increased 18% from the fourth quarter of 2010. Total tons shipped to outside customers were 5,683,000 tons in the fourth quarter of 2011, a decrease of 2% from the third quarter of 2011 and an increase of 7% over last year's fourth quarter.
The average scrap and scrap substitute cost per ton used for the full year 2011 was $439, an increase of 25% over $351 in 2010. The average scrap and scrap substitute cost per ton used in the fourth quarter of 2011 was $441, a decrease of 2% from $449 in the third quarter and an increase of 23% over $359 in the fourth quarter of 2010.
Overall operating rates at our steel mills were 74% for the full year 2011, increasing from 70% in 2010 and 54% in 2009. Steel mill utilization rates for the fourth quarter of 2011 (71%) decreased from the third quarter (74%) and increased from last year's fourth quarter (68%).
For the full year 2011, total energy costs increased approximately $1 per ton from the prior year primarily due to higher electricity unit costs. In the fourth quarter of 2011, total energy costs decreased approximately $5 per ton from the third quarter of 2011, primarily due to lower electricity unit costs, and were unchanged from the fourth quarter of 2010.
Construction 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 $3.15 billion in cash and cash equivalents, short-term investments, and restricted cash and investments. In December, we increased the amount of our revolving credit facility to $1.5 billion and extended its maturity date to December 2016. We have no outstanding borrowings under the revolving credit facility.
In December, Nucor's board of directors increased the quarterly cash dividend to $0.365 per share. The dividend is payable on February 10, 2012 to stockholders of record on December 30, 2011 and is Nucor's 155th consecutive quarterly cash dividend. Nucor continues a record of 39 consecutive years of increases to its regular dividend.
Fourth quarter earnings of $0.43 per share were significantly better than our quantitative guidance of between $0.22 and $0.27 per share, but as we expected were lower than third quarter 2011 earnings of $0.57 per share. The declining trend in steel margins appears to have bottomed overall as December was our most profitable month in the fourth quarter. The trend is more positive at the bar mills and beam mills where margins per ton improved in the fourth quarter compared to the third quarter of 2011. Margins at our plate and sheet mills continued to be impacted by higher import levels that began in the second quarter of 2011 and new domestic sheet mill supply. Selling prices have recently trended up for both our plate and sheet steel mills while scrap prices have been flat to slightly down. We therefore expect earnings in the first quarter of 2012 to be improved from fourth quarter 2011 levels, after adjusting for one-time benefits received in the fourth quarter. End markets such as automotive, heavy equipment, energy and general manufacturing have continued to experience improvements in demand, benefitting special bar quality, sheet and plate products. We are also seeing small but encouraging signs of improvement in our construction products business.
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; 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 fourth quarter results on January 26, 2012 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:
Quarter Ended December 31,
Year Ended December 31,
Steel mills production
Steel mills total shipments
Sales tons to outside customers:
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)
Quarter Ended December 31,
Year Ended December 31,
Costs, expenses and other:
Cost of products sold
Marketing, administrative and other expenses
Equity in losses (earnings)
of unconsolidated affiliates
Interest expense, net
Earnings (loss) before income taxes and
Provision for (benefit from) income taxes
Earnings attributable to
Net earnings (loss) attributable to
Net earnings (loss) per share:
Average shares outstanding:
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
Dec. 31, 2011
Dec. 31, 2010
Cash and cash equivalents
Accounts receivable, net
Other current assets
Total current assets
Property, plant and equipment, net
Restricted cash and investments
Other intangible assets, net
Long-term debt due within one year
Salaries, wages and related accruals
Accrued expenses and other current liabilities
Total current liabilities
Long-term debt due after one year
Deferred credits and other liabilities
Nucor stockholders' equity:
Additional paid-in capital
Accumulated other comprehensive loss,
net of income taxes
Total Nucor stockholders' equity
Total liabilities and equity
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Year Ended December 31,
Deferred income taxes
Equity in losses of unconsolidated affiliates
Changes in assets and liabilities (exclusive of acquisitions):
Federal income taxes
Salaries, wages and related accruals
Cash provided by operating activities
Investment in and advances to affiliates
Repayment of advances to affiliates
Disposition of plant and equipment
Acquisitions (net of cash acquired)
Purchases of investments
Proceeds from the sale of investments
Purchases of restricted investments
Proceeds from the sale of restricted investments
Other changes in restricted cash and investments
Cash used in investing activities
Net change in short-term debt
Repayment of long-term debt
Proceeds from issuance of long-term debt, net of discount
Debt issuance costs
Issuance of common stock
Excess tax benefits from stock-based compensation
Distributions to noncontrolling interests
Other financing activities
Cash provided by (used in) financing activities
Effect of exchange rate changes on cash
Decrease in cash and cash equivalents
Cash and cash equivalents - beginning of year
Cash and cash equivalents - end of year
CONTACT: Nucor Executive Offices, +1-704-366-7000, or fax, +1-704-362-4208