NUCOR CORPORATION 
By CHARLOTTE, N.C., Jan. 29, 2013 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $504.6 million, or $1.58 per diluted share, for the full year 2012, compared with consolidated net earnings of $778.2 million, or $2.45 per diluted share, for the full year 2011. Nucor reported consolidated net earnings of $136.9 million, or $0.43 per diluted share, for the fourth quarter of 2012. By comparison, Nucor reported net earnings of $110.3 million, or $0.35 per diluted share, in the third quarter of 2012 and net earnings of $137.1 million, or $0.43 per diluted share, in the fourth quarter of 2011.
Nucor recorded a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $155.9 million ($0.31 per diluted share) for the full year 2012, compared with a charge of $142.8 million ($0.28 per diluted share) for the full year 2011. The LIFO credit in the fourth quarter of 2012 was $71.9 million ($0.14 per diluted share), compared with a credit of $84.0 million ($0.16 per diluted share) in the third quarter of 2012 and a charge of $51.8 million ($0.11 per diluted share) in the fourth quarter of 2011.
Non-cash inventory related purchase accounting charges associated with our acquisition of Skyline Steel LLC decreased to $12.0 million ($0.02 per diluted share) in the fourth quarter of 2012 compared to $28.2 million ($0.06 per diluted share) in the third quarter of 2012. The full year 2012 Skyline purchase accounting charges were approximately $48.8 million ($0.10 per diluted share).
Third quarter of 2012 results also included a loss on the sale of the assets of Nucor Wire Products Pennsylvania, Inc. of $17.6 million ($0.04 per diluted share). Fourth quarter of 2011 results were impacted by a non-cash gain of $29.0 million ($0.06 per diluted share) for the correction of an actuarial calculation related to the medical plan covering certain eligible early retirees.
For the full year 2012, Nucor's consolidated net sales decreased 3% to $19.43 billion, compared with $20.02 billion for 2011. Average sales price per ton decreased 3% from full year 2011. Total tons shipped to outside customers were 23,092,000 tons, a slight increase from 2011 levels.
Nucor's consolidated net sales decreased 7% to $4.45 billion in the fourth quarter of 2012 compared with $4.80 billion in the third quarter of 2012 and decreased 8% compared with $4.83 billion in the fourth quarter of 2011. Average sales price per ton decreased 2% from the third quarter of 2012 and decreased 4% from the fourth quarter of 2011. Total tons shipped to outside customers were 5,478,000 tons in the fourth quarter of 2012, a 5% decrease from the third quarter of 2012 and a 4% decrease from the fourth quarter of 2011.
The average scrap and scrap substitute cost per ton used for the full year 2012 was $407, a decrease of 7% from $439 in 2011. The average scrap and scrap substitute cost per ton used in the fourth quarter of 2012 was $372, a decrease of 2% from $380 in the third quarter of 2012 and a decrease of 16% from $441 in the fourth quarter of 2011.
Overall operating rates at our steel mills were 74% for the full year 2012, which is consistent with 2011 and an increase from 70% in 2010. Steel mill utilization rates in the fourth quarter of 2012 (71%) were flat when compared with the third quarter and with last year's fourth quarter.
For the full year 2012, total energy costs decreased approximately $2 per ton from the prior year primarily due to lower natural gas unit costs. In the fourth quarter of 2012, total energy costs decreased approximately $2 per ton from the third quarter of 2012, and decreased slightly from the fourth quarter of 2011 primarily due to lower electricity unit costs.
Construction is going well on our 2,500,000-ton DRI facility in Louisiana. The majority of the equipment arrived in 2012, and we are on schedule for start-up in mid-2013.
Our liquidity position remains strong with $1.43 billion in cash and cash equivalents, short-term investments, and restricted cash and investments. Our $1.5 billion revolving credit facility that matures in December 2016 remains unused.
In December, Nucor's board of directors declared a cash dividend of $0.3675 per share payable on February 11, 2013 to stockholders of record on December 31, 2012. This dividend is Nucor's 159(th) consecutive quarterly cash dividend, a record we expect to continue.
Fourth quarter earnings of $0.43 per share were significantly better than our quantitative guidance of between $0.25 and $0.30 per share. This improved performance was due to better than expected operating profits, primarily at our sheet, plate and beam mills, and a larger than expected LIFO credit. We currently expect to see first quarter 2013 earnings below our results in the fourth quarter of 2012. This reflects our expectation of level operating performance and a reversal of LIFO from a large credit in the fourth quarter of 2012 to a small charge in the first quarter of 2013. Construction markets are showing some small improvement but remain at historically anemic levels. The strongest end markets continue to be manufactured goods including automotive, energy and heavy equipment. High import levels, volatility in raw material costs and general economic uncertainty are all factors that could undermine our expectations.
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 outlined in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2011 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 29, 2013 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,
-------------------------- -----------------------
2012 2011 Percentage Change 2012 2011 Percentage Change
---- ---- ----------------- ---- ---- -----------------
Steel mills production 4,726 4,765 -1% 19,865 19,561 2%
Steel mills total shipments 4,762 4,933 -3% 20,242 20,125 1%
Sales tons to outside customers:
Steel mills 3,993 4,132 -3% 16,825 16,796 0%
Joist 74 69 7% 291 288 1%
Deck 87 78 12% 308 312 -1%
Cold finished 104 113 -8% 492 494 0%
Fabricated concrete
reinforcing steel 265 266 - 1,180 1,074 10%
Other 955 1,025 -7% 3,996 4,080 -2%
5,478 5,683 -4% 23,092 23,044 -
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
--------------------------------------------------------
(In thousands, except per share data)
Quarter Ended December 31, Year Ended December 31,
-------------------------- -----------------------
2012 2011 2012 2011
---- ---- ---- ----
Net sales $4,451,274 $4,829,677 $19,429,273 $20,023,564
---------- ---------- ----------- -----------
Costs, expenses and other:
Cost of products sold 4,066,926 4,479,572 17,915,735 18,142,144
Marketing, administrative and other expenses 120,861 90,046 454,900 439,528
Equity in losses (earnings) of
unconsolidated affiliates 4,230 (4,147) 13,323 10,043
Impairment of non-current assets - - 30,000 13,943
Interest expense, net 39,347 40,151 162,375 166,094
------ ------ ------- -------
4,231,364 4,605,622 18,576,333 18,771,752
--------- --------- ---------- ----------
Earnings before income taxes and
noncontrolling interests 219,910 224,055 852,940 1,251,812
Provision for income taxes 59,655 65,882 259,814 390,828
------ ------ ------- -------
Net earnings 160,255 158,173 593,126 860,984
Earnings attributable to
noncontrolling interests 23,347 21,117 88,507 82,796
------ ------ ------ ------
Net earnings attributable to
Nucor stockholders $136,908 $137,056 $504,619 $778,188
======== ======== ======== ========
Net earnings per share:
Basic $0.43 $0.43 $1.58 $2.45
Diluted $0.43 $0.43 $1.58 $2.45
Average shares outstanding:
Basic 318,553 317,393 318,172 316,997
Diluted 318,613 317,464 318,240 317,161
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
------------------------------------------------
(In thousands)
Dec. 31, 2012 Dec. 31, 2011
------------- -------------
ASSETS
Current assets:
Cash and cash
equivalents $1,052,862 $1,200,645
Short-term
investments 104,167 1,362,641
Accounts receivable,
net 1,707,317 1,710,773
Inventories, net 2,323,641 1,987,257
Other current assets 409,177 446,765
Total current
assets 5,597,164 6,708,081
Property, plant and equipment, net 4,283,056 3,755,604
Restricted cash and investments 275,163 585,833
Goodwill 2,004,538 1,830,661
Other intangible assets, net 959,240 784,640
Other assets 968,698 905,531
------- -------
Total assets $14,087,859 $14,570,350
=========== ===========
LIABILITIES
Current liabilities:
Short-term debt $29,912 $1,826
Long-term debt due
within one year 250,000 650,000
Accounts payable 1,046,713 958,645
Salaries, wages and
related accruals 279,898 333,341
Accrued expenses and
other current
liabilities 423,045 452,247
Total current
liabilities 2,029,568 2,396,059
Long-term debt due after one year 3,380,200 3,630,200
Deferred credits and other liabilities 792,717 837,511
------- -------
Total
liabilities 6,202,485 6,863,770
--------- ---------
EQUITY
Nucor stockholders' equity:
Common stock 150,805 150,496
Additional paid-in
capital 1,811,459 1,756,534
Retained earnings 7,124,523 7,111,566
Accumulated other
comprehensive
income (loss),
net of income
taxes 56,761 (38,177)
Treasury stock (1,501,977) (1,505,534)
Total Nucor
stockholders'
equity 7,641,571 7,474,885
Noncontrolling interests 243,803 231,695
------- -------
Total equity 7,885,374 7,706,580
--------- ---------
Total
liabilities
and equity $14,087,859 $14,570,350
=========== ===========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
----------------------------------------------------------
(In thousands)
Year Ended December 31,
-----------------------
2012 2011
---- ----
Operating activities:
Net earnings $593,126 $860,984
Adjustments:
Depreciation 534,010 522,571
Amortization 73,011 67,829
Stock-based compensation 50,733 49,003
Deferred income
taxes (25,274) 58,051
Equity in losses of
unconsolidated affiliates 13,323 10,043
Impairment of non-current
assets 30,000 13,943
Loss on sale of
assets 17,563 -
Changes in assets and
liabilities (exclusive of
acquisitions):
Accounts
receivable 148,113 (274,920)
Inventories (65,655) (433,696)
Accounts
payable (111,496) 62,012
Federal
income taxes (28,022) 930
Salaries, wages and related
accruals (60,363) 129,340
Other 31,316 (35,037)
------ -------
Cash provided by operating activities 1,200,385 1,031,053
--------- ---------
Investing activities:
Capital expenditures (947,608) (438,943)
Investment in and advances to
affiliates (180,472) (95,950)
Distribution from and repayment of
advances to affiliates 65,446 50,000
Disposition of plant and equipment 51,063 25,333
Acquisitions (net of cash acquired) (760,833) (3,959)
Purchases of
investments (409,403) (1,494,782)
Proceeds from the sale of
investments 1,667,142 1,285,763
Purchases of restricted investments - (564,994)
Proceeds from the sale of
restricted investments 359,295 47,479
Changes in restricted
cash (48,625) 530,165
Cash used in investing activities (203,995) (659,888)
-------- --------
Financing activities:
Net change in short-
term debt 27,945 (11,450)
Repayment of long-
term debt (650,000) -
Issuance of common
stock 10,515 8,097
Excess tax benefits from stock-
based compensation 4,700 1,000
Distributions to noncontrolling
interests (74,848) (61,720)
Cash dividends (466,361) (461,518)
Other financing
activities 1,172 30,569
Cash used in financing activities (1,146,877) (495,022)
---------- --------
Effect of exchange rate changes on cash 2,704 (904)
----- ----
Decrease in cash and cash equivalents (147,783) (124,761)
Cash and cash equivalents - beginning of year 1,200,645 1,325,406
--------- ---------
Cash and cash equivalents - end of year $1,052,862 $1,200,645
========== ==========
Non-cash investing activity:
Accrued plant and equipment
purchases $71,726 $1,559
=======
SOURCE Nucor Corporation
