CHARLOTTE, N.C., April 21,
2016 /PRNewswire/ -- Nucor Corporation (NYSE: NUE)
announced today consolidated net earnings of $70.8 million, or $0.22 per diluted share, for the first quarter of
2016. By comparison, Nucor reported net earnings of $67.8 million, or $0.21 per diluted share, for the first quarter of
2015 and adjusted net earnings of $144.7
million, or $0.45 per diluted
share, for the fourth quarter of 2015. Fourth quarter of 2015
adjusted net earnings excludes a $153.0
million ($0.47 per diluted
share) impairment charge related to our Duferdofin Nucor S.r.l.
joint venture and an $84.1 million ($0.17 per diluted share) impairment charge
on assets related to a blast furnace project that will not be
utilized in the future. Including these impairment charges, Nucor's
net loss for the fourth quarter of 2015 was $62.0 million, or $0.19 per diluted share.
Earnings (loss) before income taxes and noncontrolling interests
by segment were as follows for the first quarter of 2016 and 2015
(in thousands):
|
|
|
|
|
|
|
Three Months (13
Weeks) Ended
|
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
Steel
mills
|
|
$
279,835
|
|
$
217,128
|
Steel
products
|
|
42,367
|
|
32,458
|
Raw
materials
|
|
(63,372)
|
|
(41,497)
|
Corporate/eliminations
|
|
(117,304)
|
|
(89,044)
|
|
|
$
141,526
|
|
$
119,045
|
Nucor's first quarter of 2016 results include a charge of
$27.5 million ($0.05 per diluted share) to value inventories
using the last-in, first-out (LIFO) method of accounting. The
charge is compared with a credit of $16.5
million ($0.03 per diluted
share) in the first quarter of 2015 and a credit of $217.8 million ($0.41 per diluted share) in the fourth quarter of
2015. The LIFO charge taken in the first quarter of 2016 was above
our quantitative guidance of $15.0
million ($0.03 per diluted
share) as recent increases in scrap prices affected our estimate of
expected inventory values at the end of 2016. Also included
in the first quarter of 2016 earnings are out-of-period non-cash
gains totaling $13.4 million ($0.04 per diluted share) related to a
noncontrolling interest adjustment and to tax adjustments.
Nucor's consolidated net sales decreased 16% to $3.72 billion in the first quarter of 2016 from
$4.40 billion in the first quarter of
2015 and increased 7% compared with $3.46
billion in the fourth quarter of 2015. Average sales price
per ton in the first quarter of 2016 decreased 23% from the first
quarter of 2015 and decreased 11% from the fourth quarter of 2015.
Total tons shipped to outside customers were 6,148,000 tons in the
first quarter of 2016, a 9% increase from the first quarter of 2015
and a 20% increase from the fourth quarter of 2015. Total first
quarter steel mill shipments increased 16% from the first quarter
of 2015 and increased 27% from the fourth quarter of 2015. First
quarter downstream steel products shipments to outside customers
decreased 1% from the first quarter of 2015 and decreased 6% from
the fourth quarter of 2015.
The average scrap and scrap substitute cost per ton used during
the first quarter of 2016 was $193, a
decrease of 40% from $324 in the
first quarter of 2015 and a decrease of 12% compared to
$219 in the fourth quarter of
2015.
Overall operating rates at our steel mills increased to 74% in
the first quarter of 2016 as compared to 65% in the first quarter
of 2015 and 63% in the fourth quarter of 2015.
Total steel mill energy costs in the first quarter of 2016
decreased approximately $7 per ton
compared to the first quarter of 2015 and decreased approximately
$2 per ton compared to the fourth
quarter of 2015. The decrease from the first quarter of 2015 was
due to significantly lower electricity and natural gas unit costs
and improved productivity from higher steel production volumes. The
decrease from the fourth quarter of 2015 was due to improved
productivity from higher steel production volumes and lower natural
gas unit costs.
Our liquidity position remains strong with $2.33
billion in cash and cash equivalents and short-term
investments. Subsequent to the end of the first quarter, we amended
and extended our undrawn $1.5 billion
line of credit to mature in April
2021.
In February, Nucor's board of directors declared a cash dividend
of $0.375 per share payable on
May 11, 2016 to stockholders of
record on March 31, 2016. This
dividend is Nucor's 172nd consecutive quarterly cash dividend, a
record we expect to continue.
As expected, operating performance at the steel mills segment
for the first quarter of 2016 increased compared to the fourth
quarter of 2015. First quarter performance benefited from a lower
average cost of inventory at the beginning of the quarter and
improved market conditions. Positive market factors included a
small decline in import volumes and more balanced inventory levels
at service center customers. Energy, heavy equipment and
agricultural markets remain weak. The automotive markets remain
strong.
Imports continue to impact the U.S. steel industry. Several
important trade cases are in progress, and the Department of
Commerce has announced preliminary duties. We are confident
that once all the facts are known, final determinations by the
Department of Commerce will fully address all dumping and subsidies
associated with these cases.
The performance of our downstream products segment decreased
from the fourth quarter of 2015 due to typical first quarter
seasonality in nonresidential construction markets, but increased
compared to the first quarter of 2015. We expect nonresidential
construction activity to outpace 2015 levels for the balance of the
year.
The performance of the raw materials segment improved from the
fourth quarter of 2015 primarily due to improved performance at our
scrap processing businesses. Nucor Steel Louisiana completed a
planned maintenance outage in the fourth quarter of 2015, and the
facility did not immediately resume operations until late January
due to market conditions. The profitability of both of our direct
reduced iron (DRI) facilities has been negatively impacted by the
depressed levels of pricing for alternative raw materials.
We expect earnings in the second quarter of 2016 to be
significantly improved from the first quarter of 2016. Performance
of the steel mills segment is expected to improve in the second
quarter of 2016 as compared to the first quarter of 2016 as
recently announced price increases for many of our products are
being accepted in the market. This improved performance by the
steel mills segment in the second quarter of 2016 will be tempered
by rising scrap prices. We expect increased profitability for
our downstream products segment in the second quarter of 2016 as
compared to the first quarter of 2016 due to seasonal factors as
improving weather conditions benefit nonresidential construction
markets. The performance of the raw materials segment is expected
to improve in the second quarter of 2016 as compared to the first
quarter of 2016 due to improved pricing at both our scrap
processing businesses and DRI facilities.
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 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 2015 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 first
quarter results on April 21, 2016 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
|
|
|
|
April 2,
2016
|
|
April 4,
2015
|
|
Percentage
Change
|
Steel mills
production
|
|
5,390
|
|
4,758
|
|
13%
|
Steel mills total
shipments
|
|
5,647
|
|
4,887
|
|
16%
|
|
|
|
|
|
|
|
|
Sales tons to
outside customers:
|
|
|
|
|
|
|
|
Steel
mills
|
|
4,899
|
|
4,165
|
|
18%
|
|
Joist
|
|
98
|
|
89
|
|
10%
|
|
Deck
|
|
101
|
|
82
|
|
23%
|
|
Cold
finished
|
|
119
|
|
130
|
|
-8%
|
|
Fabricated
concrete
|
|
|
|
|
|
|
|
reinforcing
steel
|
|
242
|
|
262
|
|
-8%
|
|
Other
|
|
689
|
|
907
|
|
-24%
|
|
|
|
6,148
|
|
5,635
|
|
9%
|
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
|
(In thousands,
except per share data)
|
|
|
|
|
|
Three
Months (13 Weeks) Ended
|
|
|
|
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
Net
sales
|
$ 3,715,576
|
|
$
4,399,440
|
|
|
|
|
Costs, expenses
and other:
|
|
|
|
Cost of
products sold
|
3,428,628
|
|
4,111,158
|
Marketing,
administrative and other expenses
|
109,745
|
|
124,561
|
Equity in
(earnings) losses of unconsolidated affiliates
|
(9,245)
|
|
259
|
Interest
expense, net
|
44,922
|
|
44,417
|
|
3,574,050
|
|
4,280,395
|
Earnings before
income taxes and
|
|
|
|
noncontrolling
interests
|
141,526
|
|
119,045
|
Provision for
income taxes
|
37,065
|
|
34,753
|
Net
earnings
|
104,461
|
|
84,292
|
Earnings
attributable to
|
|
|
|
noncontrolling
interests
|
33,707
|
|
16,492
|
Net earnings
attributable to
|
|
|
|
Nucor
stockholders
|
$
70,754
|
|
$
67,800
|
|
|
|
|
Net earnings per
share:
|
|
|
|
Basic
|
$0.22
|
|
$0.21
|
Diluted
|
$0.22
|
|
$0.21
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
Basic
|
319,240
|
|
320,315
|
Diluted
|
319,294
|
|
320,483
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 2,
2016
|
|
Dec. 31,
2015
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
2,278,488
|
|
$ 1,939,469
|
|
Short-term
investments
|
|
50,000
|
|
100,000
|
|
Accounts
receivable, net
|
|
1,493,892
|
|
1,383,823
|
|
Inventories,
net
|
|
2,007,879
|
|
2,145,444
|
|
Other
current assets
|
|
175,890
|
|
185,644
|
|
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
6,006,149
|
|
5,754,380
|
|
|
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
4,813,565
|
|
4,891,153
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
2,025,380
|
|
2,011,278
|
|
|
|
|
|
|
|
|
Other
intangible assets, net
|
|
756,724
|
|
770,672
|
|
|
|
|
|
|
|
|
Other
assets
|
|
793,286
|
|
799,461
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 14,395,104
|
|
$ 14,226,944
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
|
$
36,655
|
|
$
51,315
|
|
Accounts
payable
|
|
758,703
|
|
566,527
|
|
Salaries,
wages and related accruals
|
|
237,107
|
|
289,004
|
|
Accrued
expenses and other current liabilities
|
|
517,665
|
|
478,327
|
|
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
1,550,130
|
|
1,385,173
|
|
|
|
|
|
|
|
|
Long-term
debt due after one year
|
|
4,337,875
|
|
4,337,145
|
|
|
|
|
|
|
|
|
Deferred
credits and other liabilities
|
|
729,027
|
|
718,613
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
6,617,032
|
|
6,440,931
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Nucor
stockholders' equity:
|
|
|
|
|
|
Common
stock
|
|
151,426
|
|
151,426
|
|
Additional
paid-in capital
|
|
1,925,255
|
|
1,918,970
|
|
Retained
earnings
|
|
7,206,570
|
|
7,255,972
|
|
Accumulated
other comprehensive loss,
|
|
|
|
|
|
|
net of
income taxes
|
|
(296,164)
|
|
(351,362)
|
|
Treasury
stock
|
|
(1,560,619)
|
|
(1,558,128)
|
|
|
Total Nucor
stockholders' equity
|
|
7,426,468
|
|
7,416,878
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
351,604
|
|
369,135
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
7,778,072
|
|
7,786,013
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and equity
|
|
$ 14,395,104
|
|
$ 14,226,944
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months (13
Weeks) Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 2,
2016
|
|
April 4,
2015
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
Net
earnings
|
|
|
$
104,461
|
|
$
84,292
|
|
Adjustments:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
152,249
|
|
157,934
|
|
|
Amortization
|
|
|
18,112
|
|
18,655
|
|
|
Stock-based
compensation
|
|
7,300
|
|
6,453
|
|
|
Deferred income
taxes
|
|
5,529
|
|
(10,173)
|
|
|
Distributions from
affiliates
|
|
36,015
|
|
-
|
|
|
Equity in
(earnings) losses of unconsolidated affiliates
|
(9,245)
|
|
259
|
|
|
Changes in assets
and liabilities (exclusive of acquisitions and
dispositions):
|
|
|
|
|
|
|
Accounts
receivable
|
|
(104,252)
|
|
343,497
|
|
|
|
Inventories
|
|
|
142,516
|
|
330,842
|
|
|
|
Accounts
payable
|
|
197,350
|
|
(237,847)
|
|
|
|
Federal income
taxes
|
|
23,273
|
|
39,397
|
|
|
|
Salaries, wages
and related accruals
|
(49,453)
|
|
(122,226)
|
|
|
|
Other operating
activities
|
|
27,004
|
|
(47,389)
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
|
550,859
|
|
563,694
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(80,697)
|
|
(77,523)
|
|
Investment in and
advances to affiliates
|
(6,098)
|
|
(20,776)
|
|
Disposition of
plant and equipment
|
|
5,309
|
|
2,604
|
|
Acquisitions (net
of cash acquired)
|
|
(1,386)
|
|
-
|
|
Purchases of
investments
|
|
(50,000)
|
|
(111,927)
|
|
Proceeds from the
sale of investments
|
|
100,000
|
|
100,000
|
|
Other investing
activities
|
|
792
|
|
1,870
|
|
|
|
|
|
|
|
|
|
Cash used in
investing activities
|
|
(32,080)
|
|
(105,752)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
Net change in
short-term debt
|
|
(14,671)
|
|
(180,239)
|
|
Issuance of common
stock
|
|
-
|
|
423
|
|
Excess tax
benefits from stock-based compensation
|
353
|
|
200
|
|
Distributions to
noncontrolling interests
|
(49,853)
|
|
(24,981)
|
|
Cash
dividends
|
|
|
(120,153)
|
|
(119,712)
|
|
Acquisition of
treasury stock
|
|
(5,173)
|
|
-
|
|
Other financing
activities
|
|
(559)
|
|
(536)
|
|
|
|
|
|
|
|
|
|
Cash used in
financing activities
|
|
(190,056)
|
|
(324,845)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
10,296
|
|
(3,304)
|
|
|
|
|
|
|
|
|
|
Increase in cash
and cash equivalents
|
|
339,019
|
|
129,793
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents - beginning of year
|
1,939,469
|
|
1,024,144
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents - end of three months
|
$
2,278,488
|
|
$
1,153,937
|
|
|
|
|
|
|
|
|
|
Non-cash investing
activity:
|
|
|
|
|
|
|
Change in accrued
plant and equipment purchases
|
$
(4,949)
|
|
$
(7,812)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nucor-reports-results-for-first-quarter-of-2016-300255319.html
SOURCE Nucor Corporation