CHARLOTTE, N.C., Oct. 22, 2015 /PRNewswire/ -- Nucor
Corporation (NYSE: NUE) announced today consolidated net earnings
of $227.1 million, or $0.71 per diluted share, for the third quarter of
2015. By comparison, Nucor reported net earnings of $124.8 million, or $0.39 per diluted share, in the second quarter of
2015 and net earnings of $245.4
million, or $0.76 per diluted
share, in the third quarter of 2014. Third quarter of 2015 diluted
net earnings per share of $0.71 was
above our guidance range of $0.45 to
$0.50 per diluted share due to a larger than forecasted LIFO
credit and better than forecasted performance in the steel mills
segment.
In the first nine months of 2015, Nucor reported consolidated
net earnings of $419.7 million, or
$1.30 per diluted share, compared
with consolidated net earnings of $503.5
million, or $1.57 per diluted
share, in the first nine months of last year.
Earnings (loss) before income taxes and noncontrolling interests
by segment were as follows for the third quarter and first nine
months of 2015 and 2014 (in thousands):
|
|
|
Three Months (13
Weeks)
Ended
|
|
Nine Months (39
Weeks)
Ended
|
|
|
|
October
3, 2015
|
|
October
4, 2014
|
|
October
3, 2015
|
|
October
4, 2014
|
Earnings (loss)
before income
|
|
|
|
|
|
|
|
|
taxes and
noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
Steel
mills
|
|
$
260,776
|
|
$
502,703
|
|
$
676,404
|
|
$
1,188,638
|
|
Steel
products
|
|
96,167
|
|
63,890
|
|
199,261
|
|
108,222
|
|
Raw
materials
|
|
(43,177)
|
|
(19,321)
|
|
(122,778)
|
|
(20,597)
|
|
Corporate/eliminations
|
|
40,505
|
|
(143,287)
|
|
(63,349)
|
|
(422,912)
|
|
|
|
$
354,271
|
|
$
403,985
|
|
$
689,538
|
|
$
853,351
|
|
|
|
|
|
|
|
|
|
|
Nucor's results include a $137.0
million credit ($0.27 per
diluted share) to value inventories using the last-in, first-out
(LIFO) method of accounting in the third quarter of 2015, compared
with a credit of $95.5 million
($0.19 per diluted share) recorded in
the second quarter of 2015 and a credit of $14.5 million ($0.03 per diluted share) in the third quarter of
2014. As a result, the LIFO credit in the first nine months of 2015
was $249.0 million ($0.48 per diluted share), compared with no charge
or credit in the first nine months of 2014. The third quarter of
2015 results were impacted by an out-of-period non-cash gain of
$10.2 million ($0.03 per diluted share) related to a correction
of deferred tax balances. Included in the second quarter of 2015
results was a $9.3 million
($0.03 per diluted share) benefit
related to state tax credits. Earnings in the third quarter of 2014
included a $12.5 million charge
($0.03 per diluted share) related to
the partial write down of assets within the steel mills
segment.
Nucor's consolidated net sales decreased 3% to $4.23 billion in the third quarter of 2015
compared with $4.36 billion in the
second quarter of 2015 and decreased 26% compared with $5.70 billion in the third quarter of 2014.
Average sales price per ton remained consistent with the second
quarter of 2015 and decreased 15% from the third quarter of 2014.
Total tons shipped to outside customers were 5,883,000 tons in the
third quarter of 2015, a 3% decrease from the second quarter of
2015 and a decrease of 13% from the third quarter of 2014. Total
third quarter steel mill shipments decreased 3% from the second
quarter of 2015 and decreased 10% from the third quarter of 2014.
Third quarter downstream steel products shipments to outside
customers increased 9% over the second quarter of 2015 and
decreased 3% from the third quarter of 2014.
In the first nine months of 2015, Nucor's consolidated net sales
decreased 19% to $12.98 billion,
compared with $16.10 billion in last
year's first nine months. Total tons shipped to outside customers
decreased 9% from the first nine months of 2014, while average
sales price per ton decreased 11%.
The average scrap and scrap substitute cost per ton used in the
third quarter of 2015 was $262, a 3%
decrease from $271 in the second
quarter of 2015 and a decrease of 31% from $379 in the third quarter of 2014. The average
scrap and scrap substitute cost per ton used in the first nine
months of 2015 was $285, a decrease
of 26% from $387 in the first nine
months of 2014.
Overall operating rates at our steel mills decreased to 69% in
the third quarter of 2015 as compared with 73% in the second
quarter of 2015 and decreased from 81% in the third quarter of
2014. Steel mill utilization decreased to 69% in the first nine
months of 2015 from 78% in the first nine months of 2014.
Total steel mill energy costs in the third quarter of 2015
increased approximately $2 per ton
compared with the second quarter of 2015 due to decreased steel
production volumes and the resulting reduced efficiencies. Total
steel mill energy costs in the third quarter of 2015 decreased
approximately $2 per ton compared
with the third quarter of 2014 due primarily to lower natural gas
unit costs and slightly lower electricity unit costs. Energy costs
for the first nine months of 2015 decreased approximately
$3 per ton from the first nine months
of 2014.
Our liquidity position remains strong with $2.00 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 nine months of 2015 was robust at
$1.76 billion compared to
$925.6 million in the first nine
months of 2014.
In September, Nucor's board of directors declared a cash
dividend of $0.3725 per share payable
on November 10, 2015 to stockholders
of record on September 30, 2015. This
dividend is Nucor's 170th consecutive quarterly cash dividend, a
record we expect to continue.
The performance of the steel mills segment in the third quarter
of 2015 improved compared to the second quarter of 2015. Margins
are improved as our steel mills benefited from a lower average cost
of inventory in the third quarter as compared to the second
quarter. The automotive market remains strong, while nonresidential
construction markets are continuing to gradually improve. Energy,
heavy equipment and agricultural markets remain weak. Steel prices
and margins remain under pressure from exceptionally high levels of
imports that continue to flood the domestic market. Imports
accounted for an estimated 30% of the finished steel market in the
first nine months of 2015, compared with an estimated 27% in the
first nine months of 2014.
The operating performance of the downstream products segment
improved in the third quarter of 2015 as compared to the second
quarter of 2015 due to increased volumes and lower steel costs. The
downstream products segment's profitability in the first nine
months of 2015 has significantly improved compared to the first
nine months of 2014 primarily due to lower steel costs.
The performance of the raw materials segment decreased from the
second quarter of 2015. Nucor Steel Louisiana had an operating loss
of approximately $28 million
($0.06 per diluted share) in the
third quarter of 2015, which included a $7.7
million ($0.02 per diluted
share) net charge related to the write off of the two remaining
storage domes at the facility. Nucor Steel Louisiana had an
operating loss of approximately $20
million ($0.04 per diluted
share) in the second quarter of 2015, which included the benefit of
a $10.0 million ($0.02 per diluted share) payment received related
to warranty claims associated with the repair of the process gas
heater. The performance of the raw materials segment was also
impacted by decreased performance in our scrap processing
businesses in the third quarter of 2015 as compared to the second
quarter of 2015 due to the continued decline in scrap prices. Our
direct reduced iron (DRI) facility in Trinidad experienced improved performance in
the third quarter of 2015 as compared to the second quarter of
2015, which included a 20-day planned outage.
Earnings in the fourth quarter of 2015 are expected to decrease
compared to the third quarter of 2015 due to continued
deterioration in global steel markets. A slowing economy in
China is causing further global
overcapacity and resulting in significant levels of steel imports
into the U.S. market. The performance of our downstream products
segment is expected to decrease due to end of year seasonality that
is typical in the fourth quarter. We expect slightly lower
performance in the raw materials segment due to the general impact
of lower scrap and metallic commodity prices. We are encouraged by
the ongoing strength in the automotive market and the continued
gradual improvement in the nonresidential construction market, the
largest end market for Nucor products.
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 third
quarter results on October 22, 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
|
|
Nine Months
(39 Weeks) Ended
|
|
|
|
Oct. 3,
2015
|
|
Oct. 4,
2014
|
|
Percentage
Change
|
|
Oct. 3,
2015
|
|
Oct. 4,
2014
|
|
Percentage
Change
|
Steel mills
production
|
|
4,942
|
|
5,412
|
|
-9%
|
|
14,896
|
|
15,930
|
|
-6%
|
Steel mills total
shipments
|
|
5,166
|
|
5,741
|
|
-10%
|
|
15,401
|
|
16,650
|
|
-8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales tons to
outside customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
mills
|
|
4,440
|
|
4,851
|
|
-8%
|
|
13,183
|
|
14,097
|
|
-6%
|
|
Joist
|
|
124
|
|
128
|
|
-3%
|
|
310
|
|
317
|
|
-2%
|
|
Deck
|
|
117
|
|
113
|
|
4%
|
|
291
|
|
301
|
|
-3%
|
|
Cold
finished
|
|
107
|
|
129
|
|
-17%
|
|
354
|
|
400
|
|
-12%
|
|
Fabricated
concrete
|
|
|
|
|
|
|
|
|
|
|
|
|
|
reinforcing
steel
|
|
339
|
|
342
|
|
-1%
|
|
925
|
|
902
|
|
3%
|
|
Other
|
|
756
|
|
1,221
|
|
-38%
|
|
2,510
|
|
3,326
|
|
-25%
|
|
|
|
5,883
|
|
6,784
|
|
-13%
|
|
17,573
|
|
19,343
|
|
-9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
Three
Months (13 Weeks) Ended
|
|
Nine Months
(39 Weeks) Ended
|
|
|
|
|
|
|
|
|
|
Oct. 3,
2015
|
|
Oct. 4,
2014
|
|
Oct. 3,
2015
|
|
Oct. 4,
2014
|
|
|
|
|
|
|
|
|
Net
sales
|
$ 4,225,514
|
|
$ 5,701,869
|
|
$
12,982,563
|
|
$ 16,101,388
|
|
|
|
|
|
|
|
|
Costs, expenses
and other:
|
|
|
|
|
|
|
|
Cost of
products sold
|
3,701,678
|
|
5,102,283
|
|
11,784,139
|
|
14,708,733
|
Marketing,
administrative and other expenses
|
124,339
|
|
152,604
|
|
377,492
|
|
418,851
|
Equity in
earnings of
|
|
|
|
|
|
|
|
unconsolidated
affiliates
|
(115)
|
|
(2,352)
|
|
(550)
|
|
(10,028)
|
Interest
expense, net
|
45,341
|
|
45,349
|
|
131,944
|
|
130,481
|
|
3,871,243
|
|
5,297,884
|
|
12,293,025
|
|
15,248,037
|
Earnings before
income taxes and
|
|
|
|
|
|
|
|
noncontrolling
interests
|
354,271
|
|
403,985
|
|
689,538
|
|
853,351
|
Provision for
income taxes
|
86,535
|
|
129,784
|
|
178,166
|
|
282,519
|
Net
earnings
|
267,736
|
|
274,201
|
|
511,372
|
|
570,832
|
Earnings
attributable to
|
|
|
|
|
|
|
|
noncontrolling
interests
|
40,610
|
|
28,754
|
|
91,691
|
|
67,313
|
Net earnings
attributable to
|
|
|
|
|
|
|
|
Nucor
stockholders
|
$
227,126
|
|
$
245,447
|
|
$
419,681
|
|
$
503,519
|
|
|
|
|
|
|
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$0.71
|
|
$0.76
|
|
$1.30
|
|
$1.57
|
Diluted
|
$0.71
|
|
$0.76
|
|
$1.30
|
|
$1.57
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
320,819
|
|
320,023
|
|
320,544
|
|
319,737
|
Diluted
|
320,900
|
|
320,337
|
|
320,695
|
|
320,025
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct. 3,
2015
|
|
Dec. 31,
2014
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
1,895,425
|
|
$ 1,024,144
|
|
Short-term
investments
|
|
100,000
|
|
100,000
|
|
Accounts
receivable, net
|
|
1,716,356
|
|
2,068,298
|
|
Inventories,
net
|
|
2,361,071
|
|
2,745,032
|
|
Other
current assets
|
|
392,879
|
|
504,414
|
|
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
6,465,731
|
|
6,441,888
|
|
|
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
5,040,902
|
|
5,287,639
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
2,023,788
|
|
2,068,664
|
|
|
|
|
|
|
|
|
Other
intangible assets, net
|
|
793,046
|
|
862,093
|
|
|
|
|
|
|
|
|
Other
assets
|
|
946,001
|
|
955,643
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 15,269,468
|
|
$ 15,615,927
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
|
$
54,601
|
|
$ 207,476
|
|
Long-term
debt due within one year
|
|
-
|
|
16,335
|
|
Accounts
payable
|
|
907,332
|
|
993,872
|
|
Salaries,
wages and related accruals
|
|
329,499
|
|
352,488
|
|
Accrued
expenses and other current liabilities
|
|
555,979
|
|
527,605
|
|
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
1,847,411
|
|
2,097,776
|
|
|
|
|
|
|
|
|
Long-term
debt due after one year
|
|
4,360,600
|
|
4,360,600
|
|
|
|
|
|
|
|
|
Deferred
credits and other liabilities
|
|
1,014,116
|
|
1,082,433
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
7,222,127
|
|
7,540,809
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Nucor
stockholders' equity:
|
|
|
|
|
|
Common
stock
|
|
151,425
|
|
151,237
|
|
Additional
paid-in capital
|
|
1,913,240
|
|
1,883,356
|
|
Retained
earnings
|
|
7,438,155
|
|
7,378,214
|
|
Accumulated
other comprehensive loss,
|
|
|
|
|
|
|
net of
income taxes
|
|
(301,911)
|
|
(145,708)
|
|
Treasury
stock
|
|
(1,491,822)
|
|
(1,494,629)
|
|
|
Total Nucor
stockholders' equity
|
|
7,709,087
|
|
7,772,470
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
338,254
|
|
302,648
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
8,047,341
|
|
8,075,118
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and equity
|
|
$ 15,269,468
|
|
$ 15,615,927
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months (39
Weeks) Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct. 3,
2015
|
|
Oct. 4,
2014
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
Net
earnings
|
|
$
511,372
|
|
$
570,832
|
|
Adjustments:
|
|
|
|
|
|
|
Depreciation
|
|
469,239
|
|
486,684
|
|
|
Amortization
|
|
55,673
|
|
54,127
|
|
|
Stock-based
compensation
|
39,542
|
|
40,325
|
|
|
Deferred income
taxes
|
(52,661)
|
|
(43,712)
|
|
|
Distributions from
affiliates
|
14,149
|
|
11,504
|
|
|
Equity in earnings
of unconsolidated affiliates
|
(550)
|
|
(10,028)
|
|
|
Loss on
assets
|
7,700
|
|
21,546
|
|
|
Changes in assets
and liabilities (exclusive of acquisitions and
dispositions):
|
|
|
|
|
|
|
Accounts
receivable
|
328,671
|
|
(418,353)
|
|
|
|
Inventories
|
370,445
|
|
(80,975)
|
|
|
|
Accounts
payable
|
(83,396)
|
|
84,161
|
|
|
|
Federal income
taxes
|
113,458
|
|
94,999
|
|
|
|
Salaries, wages
and related accruals
|
(15,993)
|
|
65,027
|
|
|
|
Other operating
activities
|
(350)
|
|
49,426
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
1,757,299
|
|
925,563
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Capital
expenditures
|
(283,087)
|
|
(557,249)
|
|
Investment in and
advances to affiliates
|
(41,271)
|
|
(94,128)
|
|
Repayment of
advances to affiliates
|
-
|
|
26,500
|
|
Disposition of
plant and equipment
|
24,996
|
|
18,748
|
|
Acquisitions (net
of cash acquired)
|
(253)
|
|
(38,466)
|
|
Purchases of
investments
|
(111,927)
|
|
(100,000)
|
|
Proceeds from the
sale of investments
|
111,452
|
|
27,529
|
|
Other investing
activities
|
2,947
|
|
-
|
|
|
|
|
|
|
|
|
Cash used in
investing activities
|
(297,143)
|
|
(717,066)
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Net change in
short-term debt
|
(152,529)
|
|
11,900
|
|
Repayment of
long-term debt
|
(16,300)
|
|
(3,300)
|
|
Issuance of common
stock
|
423
|
|
4,465
|
|
Excess tax
benefits from stock-based compensation
|
1,700
|
|
3,200
|
|
Distributions to
noncontrolling interests
|
(56,085)
|
|
(51,401)
|
|
Cash
dividends
|
|
(359,461)
|
|
(356,230)
|
|
Other financing
activities
|
(1,630)
|
|
(1,651)
|
|
|
|
|
|
|
|
|
Cash used in
financing activities
|
(583,882)
|
|
(393,017)
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(4,993)
|
|
(2,787)
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
871,281
|
|
(187,307)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents - beginning of year
|
1,024,144
|
|
1,483,252
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents - end of nine months
|
$
1,895,425
|
|
$
1,295,945
|
|
|
|
|
|
|
|
|
Non-cash investing
activity:
|
|
|
|
|
Change in accrued
plant and equipment purchases
|
$
(14,577)
|
|
$
(98,050)
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nucor-reports-results-for-third-quarter-and-nine-months-of-2015-300164632.html
SOURCE Nucor Corporation