NUCOR CORPORATION 
By CHARLOTTE, N.C., Jan. 26 /PRNewswire-FirstCall/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $58.9 million or $0.18 per diluted share, for the fourth quarter of 2009, an improvement over losses of $0.60, $0.43 and $0.10 per diluted share in the first, second and third quarters of 2009, respectively. The results compare to a net income of $105.9 million or $0.34 per diluted share for the fourth quarter of 2008.
For the full year of 2009, Nucor reported a consolidated net loss of $293.6 million or $0.94 per diluted share, compared with net earnings of $1.83 billion or $5.98 per diluted share for 2008.
In the fourth quarter of 2009, Nucor's consolidated net sales decreased 6% to $2.94 billion compared with $3.12 billion in the third quarter of 2009 and decreased 29% compared with $4.15 billion in the fourth quarter of 2008. Average sales price per ton increased 4% from the third quarter of 2009 and decreased 35% from the fourth quarter of 2008. Total tons shipped to outside customers were 4,638,000 tons in the fourth quarter of 2009, a decrease of 9% from the third quarter of 2009 and an increase of 8% over last year's fourth quarter.
For the full year 2009, Nucor's consolidated net sales decreased 53% to $11.19 billion, compared with $23.66 billion for 2008. Average sales price per ton decreased 32% while total tons shipped to outside customers decreased 30% from 2008 levels.
As discussed in our guidance, fourth quarter results were significantly impacted by reduced earnings in our downstream, long products and scrap businesses; however, the sheet mills benefited from the absence of high-cost pig iron inventories. The average scrap and scrap substitute cost per ton used in the fourth quarter of 2009 was $276, a decrease of 8% compared with $299 in the third quarter and a decrease of 37% from $435 in the fourth quarter of 2008. For the full year 2009, the average scrap and scrap substitute cost per ton used was $303, a decrease of 31% from $438 in 2008.
In the fourth quarter of 2009, Nucor recorded a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $116.9 million, compared with a credit of $120 million in the third quarter of 2009 and a credit of $81.2 million in the fourth quarter of 2008. For the full year 2009, the LIFO credit was $466.9 million, compared with a charge of $341.8 million in 2008.
Overall steel mill utilization decreased from 69% in the third quarter of 2009 to 58% in the fourth quarter of 2009, and increased from 48% in last year's fourth quarter. Steel mill utilization rates decreased from 80% for the full year 2008 to 54% for the full year 2009. The quarter over quarter decrease in utilization was due to fourth quarter seasonal issues that are separate of the general economic slowdown due to the holidays and year-end plant shutdowns by some of our customers.
Total energy costs in the fourth quarter of 2009 increased approximately $3 per ton from the third quarter of 2009 due to higher natural gas prices coupled with reduced productivity. Total energy costs decreased approximately $5 per ton from the fourth quarter of 2008 to the fourth quarter of 2009. For the full year 2009, total energy costs increased approximately $1 per ton from 2008.
Pre-operating and start-up costs of new facilities decreased from $53.8 million in the fourth quarter of 2008 to $48.1 million in the fourth quarter of 2009 and increased from $128.6 million in 2008 to $160.0 million in 2009. In 2009, these costs primarily related to the SBQ mill in Memphis, Tennessee, the Castrip(®) project in Blytheville, Arkansas, the proposed iron-making facility, and the galvanizing line in Decatur, Alabama.
Our liquidity position remains strong with $2.24 billion in cash and cash equivalents and short-term investments and an untapped $1.3 billion revolving credit facility that matures in November 2012.
In December, Nucor's board of directors increased the cash dividend 2.9% to $0.36 per share. The dividend is payable on February 11, 2010 to stockholders of record on December 31, 2009 and is Nucor's 147th consecutive quarterly cash dividend. Nucor continues a record of 37 consecutive years of increases to its regular dividend.
Going forward, we believe that the most challenging markets for our products will be those associated with residential and non-residential construction, which continue to show little, if any, strength. While we expect improvements of approximately 5% in steel mill shipments in the first quarter, we also expect significant increases in both sales prices and scrap costs. As a result, we project a LIFO expense of about $25 million in the first quarter of 2010 compared to a LIFO credit of $116.9 million in the fourth quarter of 2009 and a credit of $105 million in the first quarter of 2009. Actual first quarter earnings will be significantly impacted by these inventory valuation adjustments. We will provide additional and more quantitative earnings guidance after the midpoint between our quarterly earnings releases.
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" 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; (4) competitive pressure on sales and pricing, including pressure from imports and substitute materials; and (5) capital investments and their impact on our performance. These and other factors are outlined in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2008 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, 2010 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)
Quarter Ended December 31,
--------------------------
Percentage
2009 2008 Change
---- ---- -----------
Steel mills production 3,722 3,062 22%
Steel mills total
shipments 3,917 3,426 14%
Sales tons to outside
customers:
Steel mills 3,368 2,900 16%
Joist 70 94 -26%
Deck 78 110 -29%
Cold finished 87 91 -4%
Fabricated concrete
reinforcing steel 211 286 -26%
Other 824 813 1%
--- ---
4,638 4,294 8%
===== =====
Year Ended December 31,
-----------------------
Percentage
2009 2008 Change
---- ---- -----------
Steel mills production 13,998 20,446 -32%
Steel mills total
shipments 14,036 20,932 -33%
Sales tons to outside
customers:
Steel mills 12,075 18,185 -34%
Joist 264 485 -46%
Deck 310 498 -38%
Cold finished 330 485 -32%
Fabricated concrete
reinforcing steel 954 955 0%
Other 3,643 4,579 -20%
----- -----
17,576 25,187 -30%
====== ======
Unaudited figures are as follows:
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
---------------------------------------------------------
(In thousands, except per share data)
Quarter Ended
December 31,
-------------
2009 2008
---- ----
Net sales $2,937,944 $4,150,936
---------- ----------
Costs, expenses and other:
Cost of products sold 2,716,824 3,670,629
Marketing, administrative
and other expenses 92,605 145,343
Impairment of non-current
assets 2,800 105,183
Interest expense, net 35,705 22,374
------ ------
2,847,934 3,943,529
--------- ---------
Earnings (loss) before
income taxes and
noncontrolling interests 90,010 207,407
Provision for (benefit
from) income taxes 3,583 43,514
----- ------
Net earnings (loss) 86,427 163,893
Earnings attributable to
noncontrolling interests 27,520 58,001
------ ------
Net earnings (loss)
attributable to Nucor
stockholders $58,907 $105,892
======= ========
Net earnings (loss) per
share:
Basic $0.19 $0.34
Diluted $0.18 $0.34
Average shares outstanding:
Basic 315,274 314,135
Diluted 315,740 314,247
Year Ended December 31,
-----------------------
2009 2008
---- ----
Net sales $11,190,296 $23,663,324
----------- -----------
Costs, expenses and other:
Cost of products sold 11,035,903 19,612,283
Marketing, administrative
and other expenses 430,819 750,984
Impairment of non-current
assets 2,800 105,183
Interest expense, net 134,752 90,483
------- ------
11,604,274 20,558,933
---------- ----------
Earnings (loss) before
income taxes and
noncontrolling interests (413,978) 3,104,391
Provision for (benefit
from) income taxes (176,800) 959,480
-------- -------
Net earnings (loss) (237,178) 2,144,911
Earnings attributable to
noncontrolling interests 56,435 313,921
------ -------
Net earnings (loss)
attributable to Nucor
stockholders $(293,613) $1,830,990
========= ==========
Net earnings (loss) per
share:
Basic ($0.94) $5.99
Diluted ($0.94) $5.98
Average shares outstanding:
Basic 314,873 304,525
Diluted 314,873 305,006
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
-------------------------------------------------
(In thousands)
Dec. 31, Dec. 31,
ASSETS 2009 2008
--------- ---------
Current assets:
Cash and cash equivalents $2,016,981 $2,355,130
Short-term investments 225,000 -
Accounts receivable, net 1,116,035 1,228,807
Inventories 1,312,903 2,408,157
Other current assets 511,329 405,392
------- -------
Total current assets 5,182,248 6,397,486
Property, plant and equipment, net 4,013,836 4,131,861
Goodwill 1,803,021 1,732,045
Other intangible assets, net 902,922 946,545
Other assets 669,877 666,506
------- -------
Total assets $12,571,904 $13,874,443
=========== ===========
LIABILITIES
Current liabilities:
Short-term debt $1,748 $8,622
Long-term debt due within one
year 6,000 180,400
Accounts payable 707,038 534,161
Federal income taxes payable - 199,044
Salaries, wages and related
accruals 154,997 580,090
Accrued expenses and other current
liabilities 357,274 351,875
------- -------
Total current liabilities 1,227,057 1,854,192
Long-term debt due after one year 3,080,200 3,086,200
Deferred credits and other
liabilities 680,358 677,370
------- -------
Total liabilities 4,987,615 5,617,762
--------- ---------
EQUITY
Nucor stockholders' equity:
Common stock 149,877 149,628
Additional paid-in capital 1,675,777 1,629,981
Retained earnings 7,120,218 7,860,629
Accumulated other comprehensive
loss, net of income taxes (41,056) (190,262)
Treasury stock (1,514,290) (1,520,772)
---------- ----------
7,390,526 7,929,204
Noncontrolling interests 193,763 327,477
------- -------
Total equity 7,584,289 8,256,681
--------- ---------
Total liabilities and equity $12,571,904 $13,874,443
=========== ===========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
Year Ended December 31,
----------------------
2009 2008
---- ----
Operating activities:
Net earnings (loss) $(237,178) $2,144,911
Adjustments:
Depreciation 494,035 479,484
Amortization 72,388 69,423
Stock-based compensation 54,665 49,873
88,546 (293,476)
Deferred income taxes
Impairment of non-current assets 2,800 105,183
Changes in assets and liabilities
(exclusive of acquisitions):
Accounts receivable 141,104 855,572
Inventories 1,117,600 (364,280)
Accounts payable 170,229 (861,334)
Federal income taxes (422,116) 278,663
Salaries, wages and related accruals (419,800) 129,927
Other 120,024 (95,218)
------- -------
Cash provided by operating activities 1,182,297 2,498,728
--------- ---------
Investing activities:
Capital expenditures (390,500) (1,018,980)
Investment in and advances to
affiliates (63,563) (720,713)
Disposition of plant and equipment 11,371 17,180
Acquisitions (net of cash acquired) (32,720) (1,826,030)
Purchases of investments (261,389) (289,423)
Proceeds from the sale of investments 36,389 499,709
Proceeds from currency derivative
contracts - 1,441,862
Settlement of currency derivative
contracts - (1,424,291)
--- ----------
Cash used in investing activities (700,412) (3,320,686)
-------- ----------
Financing activities:
Net change in short-term debt (6,908) (149,837)
Repayment of long-term debt (180,400) -
Proceeds from issuance of long-term
debt - 989,715
Debt issuance costs - (6,937)
Issuance of common stock 3,716 1,996,690
Excess tax benefits from stock-based
compensation (3,100) 10,600
Distributions to noncontrolling
interests (190,233) (275,075)
Cash dividends (443,109) (658,051)
Acquisition of treasury stock - (123,960)
--- --------
Cash provided by (used in) financing
activities (820,034) 1,783,145
-------- ---------
Increase (decrease) in cash and cash
equivalents (338,149) 961,187
Cash and cash equivalents -beginning
of year 2,355,130 1,393,943
--------- ---------
Cash and cash equivalents -end of
year $2,016,981 $2,355,130
========== ==========
SOURCE Nucor Corporation
