NUCOR CORPORATION 
By CHARLOTTE, N.C., Jan. 28, 2014 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $488.0 million, or $1.52 per diluted share, for the full year 2013, compared with consolidated net earnings of $504.6 million, or $1.58 per diluted share, for the full year 2012. Nucor reported consolidated net earnings of $170.5 million, or $0.53 per diluted share, for the fourth quarter of 2013. By comparison, Nucor reported net earnings of $147.6 million, or $0.46 per diluted share, in the third quarter of 2013 and net earnings of $136.9 million, or $0.43 per diluted share, in the fourth quarter of 2012.
Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $17.4 million ($0.04 per diluted share) for both the full year of 2013 and the fourth quarter of 2013. These charges are compared with a credit of $155.9 million ($0.31 per diluted share) for the full year 2012, a credit of $18.0 million ($0.03 per diluted share) in the third quarter of 2013 and a credit of $71.9 million ($0.14 per diluted share) recorded in the fourth quarter of 2012.
The fourth quarter and full year 2013 results were impacted by an out-of-period non-cash gain of $21.3 million ($0.07 per diluted share) related to a correction to deferred tax balances. Third quarter of 2013 results included a net $14.0 million ($0.03 per diluted share) partial write down of inventory and fixed asset balances associated with the collapse of a storage dome at Nucor Steel Louisiana in St. James Parish. Fourth quarter of 2012 earnings were affected by non-cash inventory purchase accounting adjustments following the acquisition of Skyline Steel LLC in June of 2012 of $12.0 million ($0.02 per diluted share). The full year 2012 Skyline purchase accounting charges were approximately $48.8 million ($0.10 per diluted share). A $17.6 million ($0.04 per diluted share) loss on the sale of the assets of Nucor Wire Products Pennsylvania, Inc. was also incurred in 2012.
For the full year 2013, Nucor's consolidated net sales decreased 2% to $19.05 billion, compared with $19.43 billion for 2012. Average sales price per ton decreased 5% from full year 2012. Total tons shipped to outside customers were 23,730,000 tons, an increase of 3% from 2012 levels.
Nucor's consolidated net sales decreased 1% to $4.89 billion in the fourth quarter of 2013 compared with $4.94 billion in the third quarter of 2013 and increased 10% compared with $4.45 billion in the fourth quarter of 2012. Average sales price per ton increased 1% over the third quarter of 2013 and remained flat when compared with the fourth quarter of 2012. Total tons shipped to outside customers were 6,019,000 tons in the fourth quarter of 2013, a 2% decrease from the third quarter of 2013 and a 10% increase over the fourth quarter of 2012. Total fourth quarter steel mill shipments decreased 3% from the third quarter of 2013 and increased 9% over the fourth quarter of 2012. Fourth quarter downstream steel products shipments to outside customers decreased 6% from the third quarter of 2013 and increased 3% over the fourth quarter of 2012.
The average scrap and scrap substitute cost per ton used for the full year 2013 was $376, a decrease of 8% from $407 in 2012. The average scrap and scrap substitute cost per ton used in the fourth quarter of 2013 was $377, an increase of 1% over $372 in both the third quarter of 2013 and the fourth quarter of 2012.
Overall operating rates at our steel mills were 74% for the full year 2013, which is consistent with 2012 and 2011. Steel mill utilization rates in the fourth quarter (75%) were down from the third quarter (78%), but up from last year's fourth quarter (71%).
For the full year 2013, total energy costs decreased approximately $1 per ton from the prior year primarily due to the negative impact of natural gas hedge settlements on our overall natural gas costs in 2012. In the fourth quarter of 2013, total energy costs decreased approximately $2 per ton from the third quarter of 2013 due primarily to lower electricity unit costs, and decreased approximately $3 per ton from the fourth quarter of 2012 primarily due to natural gas hedge settlement costs in the fourth quarter of last year.
Our liquidity position remains solid with $1.51 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. In addition, cash flow from operations continues to be strong and was $1.1 billion for the year.
In December, Nucor's board of directors declared a cash dividend of $0.37 per share payable on February 11, 2014 to stockholders of record on December 31, 2013. This dividend is Nucor's 163(rd) consecutive quarterly cash dividend, and it marks 41 consecutive years of an increased base dividend.
As expected, our fourth quarter 2013 operating performance in the steel mills segment was similar to the third quarter of 2013. Sheet steel profitability has continued to improve despite a four week planned outage at our sheet steel mill in Berkeley County, South Carolina to accommodate major equipment upgrades related to our wide and light product expansion. Those upgrades were completed in the fourth quarter. The increased sheet steel performance in the second half of 2013 is due to a series of pricing increases that began late in the second quarter that were supported by competitor supply disruptions and slightly improved demand. Improvements in sheet steel, however, were offset by decreased performance at our bar and structural steel mills. Lower operating performance at the bar and structural mills is mainly due to extended planned outages during the fourth quarter while key components of some of our major capital projects were installed at our SBQ mill in Norfolk, Nebraska and our structural mill in Blytheville, Arkansas. Profitability in the raw materials segment in the fourth quarter was negatively impacted by increased start-up costs at our new direct reduced iron (DRI) plant in Louisiana and additional costs incurred as a result of the storage dome collapse in September. The Louisiana DRI facility began production late in December.
We currently expect that first quarter of 2014 earnings, excluding the impact of the fourth quarter out of period tax adjustment, will be similar to the fourth quarter of 2013 levels. We anticipate that our operating performance will benefit from having no major extended planned outages at our steel mills during the first quarter and from having decreased start-up costs at our Louisiana DRI facility. These improvements will be largely offset by seasonally weaker performance in our fabricated construction products businesses, which we believe will be even further exacerbated by unusually poor weather.
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 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) 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 discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2012 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 fourth quarter results on January 28, 2014 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, Year Ended December 31,
-------------- -----------------------
2013 2012 Percentage 2013 2012 Percentage
Change Change
------ ------
Steel mills production 4,988 4,726 6% 19,900 19,865 -
Steel mills total
shipments 5,191 4,762 9% 20,650 20,242 2%
Sales tons to outside customers:
Steel mills 4,485 4,121 9% 17,733 17,473 1%
Joist 94 74 27% 342 291 18%
Deck 92 87 6% 334 308 8%
Cold finished 115 104 11% 474 492 -4%
Fabricated concrete
reinforcing
steel 252 265 -5% 1,065 1,180 -10%
Other 981 827 19% 3,782 3,348 13%
6,019 5,478 10% 23,730 23,092 3%
===== ===== ====== ======
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
--------------------------------------------------------
(In thousands, except per share data)
Quarter Ended December 31, Year Ended December 31,
-------------------------- -----------------------
2013 2012 2013 2012
---- ---- ---- ----
Net
sales $4,894,750 $4,451,274 $19,052,046 $19,429,273
---------- ---------- ----------- -----------
Costs, expenses and other:
Cost
of
products
sold 4,509,009 4,066,926 17,641,421 17,915,735
Marketing,
administrative
and
other
expenses 117,403 120,861 481,904 454,900
Equity in (earnings) losses of
unconsolidated
affiliates (6,632) 4,230 (9,297) 13,323
Impairment
of
non-
current
assets - - - 30,000
Interest
expense,
net 37,709 39,347 146,895 162,375
------ ------ ------- -------
4,657,489 4,231,364 18,260,923 18,576,333
--------- --------- ---------- ----------
Earnings before income taxes and
noncontrolling
interests 237,261 219,910 791,123 852,940
Provision
for
income
taxes 46,845 59,655 205,594 259,814
------ ------ ------- -------
Net
earnings 190,416 160,255 585,529 593,126
Earnings attributable to
noncontrolling
interests 19,922 23,347 97,504 88,507
------ ------ ------ ------
Net earnings attributable to
Nucor
stockholders $170,494 $136,908 $488,025 $504,619
======== ======== ======== ========
Net earnings per share:
Basic $0.53 $0.43 $1.52 $1.58
===== ===== ===== =====
Diluted $0.53 $0.43 $1.52 $1.58
===== ===== ===== =====
Average shares outstanding:
Basic 319,361 318,553 319,077 318,172
Diluted 319,652 318,613 319,266 318,240
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
------------------------------------------------
(In thousands)
Dec. 31, 2013 Dec. 31, 2012
------------- -------------
ASSETS
Current assets:
Cash and cash
equivalents $1,483,252 $1,052,862
Short-term
investments 28,191 104,167
Accounts
receivable, net 1,810,987 1,707,317
Inventories, net 2,605,609 2,323,641
Other current
assets 482,007 473,377
Total
current
assets 6,410,046 5,661,364
Property, plant and equipment, net 4,917,024 4,283,056
Restricted cash and investments - 275,163
Goodwill 1,973,608 2,004,538
Other intangible assets, net 874,154 959,240
Other assets 1,028,451 968,698
--------- -------
Total assets $15,203,283 $14,152,059
=========== ===========
LIABILITIES
Current liabilities:
Short-term debt $29,202 $29,912
Long-term debt
due within one
year 3,300 250,000
Accounts payable 1,117,078 1,046,713
Salaries, wages
and related
accruals 282,860 279,898
Accrued expenses
and other current
liabilities 527,776 423,045
----------
Total
current
liabilities 1,960,216 2,029,568
Long-term debt due after one year 4,376,900 3,380,200
Deferred credits and other liabilities 955,889 856,917
------- -------
Total
liabilities 7,293,005 6,266,685
--------- ---------
EQUITY
Nucor stockholders' equity:
Common stock 151,010 150,805
Additional paid-
in capital 1,843,353 1,811,459
Retained earnings 7,140,440 7,124,523
Accumulated other
comprehensive
income,
net of
income
taxes 9,080 56,761
Treasury stock (1,498,114) (1,501,977)
Total Nucor
stockholders'
equity 7,645,769 7,641,571
Noncontrolling interests 264,509 243,803
------- -------
Total equity 7,910,278 7,885,374
--------- ---------
Total
liabilities
and equity $15,203,283 $14,152,059
=========== ===========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
----------------------------------------------------------
(In thousands)
Year Ended December
31,
--------------------
2013 2012
---- ----
Operating activities:
Net earnings $585,529 $593,126
Adjustments:
Depreciation 535,852 534,010
Amortization 74,356 73,011
Stock-based
compensation 47,450 50,733
Deferred
income taxes 56,564 (25,274)
Distributions
from
affiliates 8,708 -
Equity in
(earnings)
losses of
unconsolidated
affiliates (9,297) 13,323
Impairment of
non-current
assets - 30,000
Loss on assets 14,000 17,563
Changes in assets and liabilities
(exclusive of
acquisitions and dispositions):
Accounts
receivable (103,649) 148,113
Inventories (298,074) (65,655)
Accounts
payable 39,489 (111,496)
Federal income
taxes 77,950 (28,022)
Salaries,
wages and
related
accruals 7,155 (60,363)
Other 41,916 31,316
------ ------
Cash provided by operating
activities 1,077,949 1,200,385
--------- ---------
Investing activities:
Capital
expenditures (1,196,952) (947,608)
Investment in
and advances
to affiliates (85,053) (180,472)
Repayment of
advances to
affiliates 54,500 65,446
Disposition of
plant and
equipment 34,097 51,063
Acquisitions
(net of cash
acquired) - (760,833)
Purchases of
investments (19,349) (409,403)
Proceeds from
the sale of
investments 92,761 1,667,142
Proceeds from
the sale of
restricted
investments 148,725 359,295
Changes in
restricted
cash 126,438 (48,625)
Other
investing
activities 4,863 -
----- ---
Cash used in investing activities (839,970) (203,995)
-------- --------
Financing activities:
Net change in
short-term
debt (671) 27,945
Proceeds from
long-term
debt, net of
discount 999,100 -
Repayment of
long-term
debt (250,000) (650,000)
Bond issuance
costs (7,625) -
Issuance of
common stock - 10,515
Excess tax
benefits from
stock-based
compensation 2,955 4,700
Distributions
to
noncontrolling
interests (76,798) (74,848)
Cash dividends (471,028) (466,361)
Other
financing
activities 111 1,172
--- -----
Cash provided by (used in)
financing activities 196,044 (1,146,877)
------- ----------
Effect of exchange rate changes on
cash (3,633) 2,704
------ -----
Increase (decrease) in cash and
cash equivalents 430,390 (147,783)
Cash and cash equivalents -
beginning of year 1,052,862 1,200,645
--------- ---------
Cash and cash equivalents -end of
year $1,483,252 $1,052,862
========== ==========
Non-cash investing activity:
Change in
accrued plant
and equipment
purchases $33,467 $71,726
======= =======
SOURCE Nucor Corporation
