CHARLOTTE, N.C., July 23, 2015 /PRNewswire/ -- Nucor Corporation
(NYSE: NUE) announced today consolidated net earnings of
$124.8 million, or $0.39 per diluted share, for the second quarter
of 2015. By comparison, Nucor reported net earnings of $67.8 million, or $0.21 per diluted share, in the first quarter of
2015 and net earnings of $147.0
million, or $0.46 per diluted
share, in the second quarter of 2014. Second quarter of 2015
diluted net earnings per share of $0.39 was above our guidance range of
$0.20 to $0.25 per diluted share due
to better than forecasted performance in the steel mills
segment.
In the first half of 2015, Nucor reported consolidated net
earnings of $192.6 million, or
$0.60 per diluted share, compared
with consolidated net earnings of $258.1
million, or $0.80 per diluted
share, in the first half of last year.
Earnings (loss) before income taxes and noncontrolling interests
by segment were as follows for the second quarter and first six
months of 2015 and 2014 (in thousands):
|
|
|
Three Months (13
Weeks) Ended
|
|
Six Months (26
Weeks) Ended
|
|
|
|
July 4,
2015
|
|
July 5,
2014
|
|
July 4,
2015
|
|
July 5,
2014
|
Earnings (loss)
before income
|
|
|
|
|
|
|
|
taxes and
noncontrolling interests:
|
|
|
|
|
|
|
|
|
Steel
mills
|
|
$
198,500
|
|
$
368,138
|
|
$ 415,628
|
|
$
685,935
|
|
Steel
products
|
70,636
|
|
42,612
|
|
103,094
|
|
44,332
|
|
Raw
materials
|
(38,104)
|
|
(9,635)
|
|
(79,601)
|
|
(1,276)
|
|
Corporate/eliminations
|
(14,810)
|
|
(159,250)
|
|
(103,854)
|
|
(279,625)
|
|
|
|
$
216,222
|
|
$
241,865
|
|
$ 335,267
|
|
$
449,366
|
Nucor's results include a $95.5
million credit ($0.19 per
diluted share) to value inventories using the last-in, first-out
(LIFO) method of accounting in the second quarter of 2015, compared
with a credit of $16.5 million
($0.03 per diluted share) recorded in
the first quarter of 2015 and no charge in the second quarter of
2014. As a result, the LIFO credit in the first half of 2015 was
$112.0 million ($0.22 per diluted share), compared with a charge
of $14.5 million ($0.03 per diluted share) in the first half of
2014. Also included in the second quarter of 2015 results was a
$9.3 million ($0.03 per diluted share) benefit related to state
tax credits.
Nucor's consolidated net sales decreased 1% to $4.36 billion in the second quarter of 2015
compared with $4.40 billion in the
first quarter of 2015 and decreased 18% compared with $5.29 billion in the second quarter of 2014.
Average sales price per ton decreased 8% from the first quarter of
2015 and decreased 13% from the second quarter of 2014. Total tons
shipped to outside customers were 6,055,000 tons in the second
quarter of 2015, a 7% increase over the first quarter of 2015 and a
decrease of 5% from the second quarter of 2014. Total second
quarter steel mill shipments increased 9% over the first quarter of
2015 and decreased 2% from the second quarter of 2014. Second
quarter downstream steel products shipments to outside customers
increased 12% over the first quarter of 2015 and decreased 3% from
the second quarter of 2014.
In the first half of 2015, Nucor's consolidated net sales
decreased 16% to $8.76 billion,
compared with $10.40 billion in last
year's first half. Total tons shipped to outside customers
decreased 7% from the first half of 2014, while average sales price
per ton decreased 10%.
The average scrap and scrap substitute cost per ton used in the
second quarter of 2015 was $271, a
16% decrease from $324 in the first
quarter of 2015 and a decrease of 29% from $384 in the second quarter of 2014. The average
scrap and scrap substitute cost per ton used in the first half of
2015 was $297, a decrease of 24% from
$391 in the first half of 2014.
Overall operating rates at our steel mills increased to 73% in
the second quarter of 2015 as compared with 65% in the first
quarter of 2015 and decreased from 79% in the second quarter of
2014. Steel mill utilization decreased to 69% in the first half of
2015 from 77% in the first half of 2014.
Total steel mill energy costs in the second quarter of 2015
decreased approximately $4 per ton
compared with the first quarter of 2015 due to increased production
volumes and lower unit costs for electricity and natural gas. Total
steel mill energy costs in the second quarter of 2015 decreased
approximately $4 per ton compared
with the second quarter of 2014 due primarily to lower natural gas
unit costs. Energy costs for the first half of 2015 decreased
$1 per ton from the first half of
2014.
Our liquidity position remains strong with $1.69 billion in cash and cash equivalents and
short-term investments and an untapped $1.5
billion revolving credit facility that does not expire until
August 2018. Cash provided by
operating activities in the first half of 2015 was robust at
$1.20 billion compared to
$443.3 million in the first half of
2014.
In June, Nucor's board of directors declared a cash dividend of
$0.3725 per share payable on
August 11, 2015 to stockholders of
record on June 30, 2015. This
dividend is Nucor's 169th consecutive quarterly cash dividend, a
record we expect to continue.
The performance of the steel mills segment in the second quarter
of 2015 decreased from the first quarter of 2015. Pricing has begun
to stabilize, but we experienced some margin erosion as the steel
mills worked through higher cost scrap, work-in-process and
finished goods inventories. Pricing remains under pressure from
exceptionally high levels of imports. Imports accounted for an
estimated 32% of the finished steel market in the first six months
of 2015, compared with an estimated 27% in the first six months of
2014. The biggest factors driving these exceptionally high levels
of imports are the trade-distorting practices of some foreign
governments. We are pleased with recently passed legislation that
strengthens our trade laws and provides the steel industry with
more effective tools to fight back against unfair trade. While
these trade law changes alone will not address the serious
challenges facing the U.S. steel industry due to systemic steel
overcapacity overseas, they do strengthen our hand against illegal
trade practices.
The operating performance of the downstream products segment has
improved in the second quarter of 2015 as compared to the second
quarter of 2014 and the first quarter of 2015 due to the continuing
gradual improvement in nonresidential construction markets. The
increased operating performance of the downstream products segment
in the second quarter of 2015 compared to the first quarter of 2015
also benefited from typical seasonality in nonresidential
construction markets as weather conditions improved.
The performance of the raw materials segment improved from the
first quarter of 2015. Nucor Steel Louisiana had an operating loss
of approximately $20 million
($0.04 per diluted share), which
included a $10.0 million
($0.02 per diluted share) payment
received related to warranty claims associated with the repair of
the process gas heater. This performance is improved compared to
the first quarter of 2015 operating loss of approximately
$44 million ($0.09 per diluted share). Nucor Steel Louisiana's
second quarter operating loss reflects the impact of working
through higher cost iron ore inventory that was purchased in 2014.
The ramp-up in production at the Louisiana direct reduced iron (DRI) facility
has gone extremely well, with the facility producing DRI at world
class quality levels. Nucor Steel Louisiana produced approximately
540,000 tons of DRI in the second quarter of 2015. The raw
materials segment also benefited from the improved performance of
our scrap processing business in the second quarter of 2015 as
compared to the first quarter of 2015. Partially offsetting these
improvements was the decreased performance of our DRI facility in
Trinidad, due to a 20-day planned
outage that occurred in the second quarter of 2015.
Earnings in the third quarter of 2015 are expected to be
improved compared to the second quarter of 2015 mainly due to
improved performance of the steel mills segment. The steel mills
segment will benefit from a lower average cost of inventories to
begin the third quarter. The strongest end markets continue to be
automotive and construction. We expect improved performance in the
downstream products segment in the third quarter of 2015 as
compared to the second quarter of 2015 due to the continuing
gradual improvement in nonresidential construction markets. The
performance of the raw materials segment in the third quarter of
2015 is expected to be comparable to the second quarter of
2015.
Nucor and its 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 piling; 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) competitive pressure on sales and pricing,
including competition from imports and substitute materials; (2)
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; (3) market demand for steel
products; and (4) energy costs and availability. These and
other factors are discussed in Nucor's regulatory filings with the
Securities and Exchange Commission, including those in Nucor's
fiscal 2014 Annual Report on Form 10-K, Item 1A. Risk Factors. 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 second
quarter results on July 23, 2015 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
(13 Weeks) Ended
|
|
Six Months
(26 Weeks) Ended
|
|
|
|
July 4,
2015
|
|
July 5,
2014
|
|
Percentage
Change
|
|
July 4,
2015
|
|
July 5,
2014
|
|
Percentage
Change
|
Steel mills
production
|
|
5,196
|
|
5,324
|
|
-2%
|
|
9,954
|
|
10,518
|
|
-5%
|
Steel mills total
shipments
|
|
5,348
|
|
5,477
|
|
-2%
|
|
10,235
|
|
10,909
|
|
-6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales tons to
outside customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
mills
|
|
4,578
|
|
4,646
|
|
-1%
|
|
8,743
|
|
9,246
|
|
-5%
|
|
Joist
|
|
97
|
|
97
|
|
0%
|
|
186
|
|
189
|
|
-2%
|
|
Deck
|
|
92
|
|
101
|
|
-9%
|
|
174
|
|
188
|
|
-7%
|
|
Cold
finished
|
|
117
|
|
133
|
|
-12%
|
|
247
|
|
271
|
|
-9%
|
|
Fabricated
concrete
|
|
|
|
|
|
|
|
|
|
|
|
|
|
reinforcing
steel
|
|
324
|
|
321
|
|
1%
|
|
586
|
|
560
|
|
5%
|
|
Other
|
|
847
|
|
1,072
|
|
-21%
|
|
1,754
|
|
2,105
|
|
-17%
|
|
|
|
6,055
|
|
6,370
|
|
-5%
|
|
11,690
|
|
12,559
|
|
-7%
|
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
Three
Months (13 Weeks) Ended
|
|
Six Months
(26 Weeks) Ended
|
|
|
|
|
|
|
|
|
|
July 4,
2015
|
|
July 5,
2014
|
|
July 4,
2015
|
|
July 5,
2014
|
|
|
|
|
|
|
|
|
Net
sales
|
$ 4,357,609
|
|
$ 5,291,075
|
|
$
8,757,049
|
|
$ 10,399,519
|
|
|
|
|
|
|
|
|
Costs, expenses
and other:
|
|
|
|
|
|
|
|
Cost of
products sold
|
3,971,303
|
|
4,875,208
|
|
8,082,461
|
|
9,606,450
|
Marketing,
administrative and other expenses
|
128,592
|
|
132,813
|
|
253,153
|
|
266,247
|
Equity in
earnings of
|
|
|
|
|
|
|
|
unconsolidated
affiliates
|
(694)
|
|
(3,202)
|
|
(435)
|
|
(7,676)
|
Interest
expense, net
|
42,186
|
|
44,391
|
|
86,603
|
|
85,132
|
|
4,141,387
|
|
5,049,210
|
|
8,421,782
|
|
9,950,153
|
Earnings before
income taxes and
|
|
|
|
|
|
|
|
noncontrolling
interests
|
216,222
|
|
241,865
|
|
335,267
|
|
449,366
|
Provision for
income taxes
|
56,878
|
|
74,930
|
|
91,631
|
|
152,735
|
Net
earnings
|
159,344
|
|
166,935
|
|
243,636
|
|
296,631
|
Earnings
attributable to
|
|
|
|
|
|
|
|
noncontrolling
interests
|
34,589
|
|
19,894
|
|
51,081
|
|
38,559
|
Net earnings
attributable to
|
|
|
|
|
|
|
|
Nucor
stockholders
|
$
124,755
|
|
$
147,041
|
|
$
192,555
|
|
$
258,072
|
|
|
|
|
|
|
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$0.39
|
|
$0.46
|
|
$0.60
|
|
$0.80
|
Diluted
|
$0.39
|
|
$0.46
|
|
$0.60
|
|
$0.80
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
320,506
|
|
319,693
|
|
320,409
|
|
319,597
|
Diluted
|
320,708
|
|
319,981
|
|
320,594
|
|
319,872
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4,
2015
|
|
Dec. 31,
2014
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$ 1,576,496
|
|
$ 1,024,144
|
|
Short-term
investments
|
|
112,236
|
|
100,000
|
|
Accounts
receivable, net
|
|
1,791,523
|
|
2,068,298
|
|
Inventories,
net
|
|
2,267,394
|
|
2,745,032
|
|
Other
current assets
|
|
407,088
|
|
504,414
|
|
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
6,154,737
|
|
6,441,888
|
|
|
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
5,120,870
|
|
5,287,639
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
2,046,098
|
|
2,068,664
|
|
|
|
|
|
|
|
|
Other
intangible assets, net
|
|
819,050
|
|
862,093
|
|
|
|
|
|
|
|
|
Other
assets
|
|
927,422
|
|
955,643
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 15,068,177
|
|
$ 15,615,927
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
|
$
42,664
|
|
$ 207,476
|
|
Long-term
debt due within one year
|
|
8,300
|
|
16,335
|
|
Accounts
payable
|
|
820,557
|
|
993,872
|
|
Salaries,
wages and related accruals
|
|
270,506
|
|
352,488
|
|
Accrued
expenses and other current liabilities
|
|
548,050
|
|
527,605
|
|
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
1,690,077
|
|
2,097,776
|
|
|
|
|
|
|
|
|
Long-term
debt due after one year
|
|
4,360,600
|
|
4,360,600
|
|
|
|
|
|
|
|
|
Deferred
credits and other liabilities
|
|
1,042,415
|
|
1,082,433
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
7,093,092
|
|
7,540,809
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Nucor
stockholders' equity:
|
|
|
|
|
|
Common
stock
|
|
151,423
|
|
151,237
|
|
Additional
paid-in capital
|
|
1,907,049
|
|
1,883,356
|
|
Retained
earnings
|
|
7,331,006
|
|
7,378,214
|
|
Accumulated
other comprehensive loss,
|
|
|
|
|
|
|
net of
income taxes
|
|
(236,708)
|
|
(145,708)
|
|
Treasury
stock
|
|
(1,492,067)
|
|
(1,494,629)
|
|
|
Total Nucor
stockholders' equity
|
|
7,660,703
|
|
7,772,470
|
|
|
|
|
|
|
|
|
Noncontrolling interests
|
|
314,382
|
|
302,648
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
7,975,085
|
|
8,075,118
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and equity
|
|
$ 15,068,177
|
|
$ 15,615,927
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months (26
Weeks) Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4,
2015
|
|
July 5,
2014
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
Net
earnings
|
|
|
$
243,636
|
|
$
296,631
|
|
Adjustments:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
314,521
|
|
326,429
|
|
|
Amortization
|
|
|
36,895
|
|
36,265
|
|
|
Stock-based
compensation
|
33,947
|
|
33,752
|
|
|
Deferred income
taxes
|
|
(35,383)
|
|
(5,121)
|
|
|
Distributions from
affiliates
|
12,142
|
|
11,504
|
|
|
Equity in earnings
of unconsolidated affiliates
|
(435)
|
|
(7,676)
|
|
|
Loss on
assets
|
|
-
|
|
9,046
|
|
|
Changes in assets
and liabilities (exclusive of
|
|
|
|
|
|
acquisitions and
dispositions):
|
|
|
|
|
|
|
Accounts
receivable
|
|
254,343
|
|
(249,196)
|
|
|
|
Inventories
|
|
472,104
|
|
(130,463)
|
|
|
|
Accounts
payable
|
|
(159,872)
|
|
90,460
|
|
|
|
Federal income
taxes
|
|
128,391
|
|
14,100
|
|
|
|
Salaries, wages
and related accruals
|
(77,214)
|
|
(1,672)
|
|
|
|
Other
|
|
|
(28,371)
|
|
19,270
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
1,194,704
|
|
443,329
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
(175,253)
|
|
(446,798)
|
|
Investment in and
advances to affiliates
|
(23,750)
|
|
(68,491)
|
|
Repayment of
advances to affiliates
|
-
|
|
15,000
|
|
Disposition of
plant and equipment
|
17,932
|
|
12,858
|
|
Acquisitions (net
of cash acquired)
|
(253)
|
|
(38,466)
|
|
Purchases of
investments
|
|
(111,927)
|
|
(100,000)
|
|
Proceeds from the
sale of investments
|
100,000
|
|
27,529
|
|
Other investing
activities
|
|
1,870
|
|
-
|
|
|
|
|
|
|
|
|
|
Cash used in
investing activities
|
|
(191,381)
|
|
(598,368)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
Net change in
short-term debt
|
|
(164,466)
|
|
13,212
|
|
Repayment of
long-term debt
|
|
(8,000)
|
|
-
|
|
Issuance of common
stock
|
|
423
|
|
-
|
|
Excess tax
benefits from stock-based compensation
|
1,200
|
|
2,700
|
|
Distributions to
noncontrolling interests
|
(39,347)
|
|
(37,877)
|
|
Cash
dividends
|
|
|
(239,476)
|
|
(237,369)
|
|
Other financing
activities
|
|
(1,081)
|
|
(1,123)
|
|
|
|
|
|
|
|
|
|
Cash used in
financing activities
|
|
(450,747)
|
|
(260,457)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(224)
|
|
(195)
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
552,352
|
|
(415,691)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents - beginning of year
|
1,024,144
|
|
1,483,252
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents - end of six months
|
$
1,576,496
|
|
$
1,067,561
|
|
|
|
|
|
|
|
|
|
Non-cash investing
activity:
|
|
|
|
|
|
Change in accrued
plant and equipment purchases
|
$
(12,644)
|
|
$
(96,023)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nucor-reports-results-for-second-quarter-and-first-half-of-2015-300117729.html
SOURCE Nucor Corporation