NUCOR CORPORATION 
By CHARLOTTE, N.C., Jan. 26, 2012 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today consolidated net earnings of $778.2 million, or $2.45 per diluted share, for the full year 2011, an increase of more than fivefold over net earnings of $134.1 million, or $0.42 per diluted share for the full year 2010.
Nucor reported consolidated net earnings of $137.1 million, or $0.43 per diluted share, for the fourth quarter of 2011, compared with a net loss of $11.4 million, or $0.04 per diluted share, in the fourth quarter of 2010 and net earnings of $181.5 million, or $0.57 per diluted share, in the third quarter of 2011.
The 2011 results were impacted by a non-cash gain of $29.0 million ($0.06 per diluted share) recognized in the fourth quarter for the correction of an actuarial calculation related to the medical plan covering certain eligible early retirees. This calculation did not have a material impact on any previously reported results.
Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $142.8 million ($0.28 per diluted share) for the full year 2011, compared with a charge of $164.0 million in 2010 ($0.32 per diluted share). The LIFO charge in the fourth quarter of 2011 was $51.8 million ($0.11 per diluted share), compared with a charge of $28.0 million in the third quarter of 2011 ($0.05 per diluted share) and a charge of $23.0 million in the fourth quarter of 2010 ($0.04 per diluted share). The fourth quarter LIFO charge was approximately $27 million less than anticipated at the time we gave our quantitative guidance.
Pre-operating and start-up costs of new facilities were $97.1 million for the full year 2011, a decrease from $174.8 million for the full year 2010. Pre-operating and start-up costs were $20.8 million in the fourth quarter of 2011 compared to $17.0 million in the third quarter of 2011 and $39.0 million in the fourth quarter of 2010. The decrease in pre-operating and start-up costs from the prior year was due to several projects coming out of start-up, including the special bar quality ("SBQ") mill in Memphis, Tennessee, the wire rod products mill in Kingman, Arizona, and the galvanizing line in Decatur, Alabama.
For the full year 2011, Nucor's consolidated net sales increased 26% to $20.02 billion, compared with $15.84 billion for 2010. Average sales price per ton increased 21% from full year 2010. Total tons shipped to outside customers were 23,044,000 tons, an increase of 5% over 2010 levels.
Nucor's consolidated net sales decreased 8% to $4.83 billion in the fourth quarter of 2011 compared with $5.25 billion in the third quarter of 2011 and increased 25% compared with $3.85 billion in the fourth quarter of 2010. Average sales price per ton decreased 6% from the third quarter of 2011 and increased 18% from the fourth quarter of 2010. Total tons shipped to outside customers were 5,683,000 tons in the fourth quarter of 2011, a decrease of 2% from the third quarter of 2011 and an increase of 7% over last year's fourth quarter.
The average scrap and scrap substitute cost per ton used for the full year 2011 was $439, an increase of 25% over $351 in 2010. The average scrap and scrap substitute cost per ton used in the fourth quarter of 2011 was $441, a decrease of 2% from $449 in the third quarter and an increase of 23% over $359 in the fourth quarter of 2010.
Overall operating rates at our steel mills were 74% for the full year 2011, increasing from 70% in 2010 and 54% in 2009. Steel mill utilization rates for the fourth quarter of 2011 (71%) decreased from the third quarter (74%) and increased from last year's fourth quarter (68%).
For the full year 2011, total energy costs increased approximately $1 per ton from the prior year primarily due to higher electricity unit costs. In the fourth quarter of 2011, total energy costs decreased approximately $5 per ton from the third quarter of 2011, primarily due to lower electricity unit costs, and were unchanged from the fourth quarter of 2010.
Construction is continuing on our 2,500,000-ton direct reduced iron ("DRI") facility in Louisiana. The majority of the equipment will begin arriving in 2012, and we are on schedule for completion of construction and beginning of start-up in mid-2013.
Our liquidity position remains strong with $3.15 billion in cash and cash equivalents, short-term investments, and restricted cash and investments. In December, we increased the amount of our revolving credit facility to $1.5 billion and extended its maturity date to December 2016. We have no outstanding borrowings under the revolving credit facility.
In December, Nucor's board of directors increased the quarterly cash dividend to $0.365 per share. The dividend is payable on February 10, 2012 to stockholders of record on December 30, 2011 and is Nucor's 155th consecutive quarterly cash dividend. Nucor continues a record of 39 consecutive years of increases to its regular dividend.
Fourth quarter earnings of $0.43 per share were significantly better than our quantitative guidance of between $0.22 and $0.27 per share, but as we expected were lower than third quarter 2011 earnings of $0.57 per share. The declining trend in steel margins appears to have bottomed overall as December was our most profitable month in the fourth quarter. The trend is more positive at the bar mills and beam mills where margins per ton improved in the fourth quarter compared to the third quarter of 2011. Margins at our plate and sheet mills continued to be impacted by higher import levels that began in the second quarter of 2011 and new domestic sheet mill supply. Selling prices have recently trended up for both our plate and sheet steel mills while scrap prices have been flat to slightly down. We therefore expect earnings in the first quarter of 2012 to be improved from fourth quarter 2011 levels, after adjusting for one-time benefits received in the fourth quarter. End markets such as automotive, heavy equipment, energy and general manufacturing have continued to experience improvements in demand, benefitting special bar quality, sheet and plate products. We are also seeing small but encouraging signs of improvement in our construction products business.
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; 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, 2010 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, 2012 at 2:00 p.m. eastern time. The conference call will be available over the Internet at www.nucor.com, under Investor Relations.
Unaudited figures are as follows:
TONNAGE DATA
------------
(in thousands)
Quarter Ended December 31, Year Ended December 31,
-------------------------- -----------------------
Percentage Percentage
2011 2010 Change 2011 2010 Change
---- ---- ---------- ---- ---- ----------
Steel
mills
production 4,765 4,472 7% 19,561 18,258 7%
Steel
mills
total
shipments 4,933 4,568 8% 20,125 18,573 8%
Sales
tons
to
outside
customers:
Steel
mills 4,132 3,840 8% 16,796 15,821 6%
Joist 69 74 -7% 288 276 4%
Deck 78 76 3% 312 306 2%
Cold
finished 113 111 2% 494 462 7%
Fabricated
concrete
reinforcing
steel 266 230 16% 1,074 981 9%
Other 1,025 1,003 2% 4,080 4,173 -2%
5,683 5,334 7% 23,044 22,019 5%
===== ===== ====== ======
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
---------------------------------------------
(In thousands, except per share data)
Quarter Ended Year Ended December
December 31, 31,
-------------- --------------------
2011 2010 2011 2010
---- ---- ---- ----
Net
sales $4,829,677 $3,853,750 $20,023,564 $15,844,627
---------- ---------- ----------- -----------
Costs,
expenses
and
other:
Cost of
products
sold 4,461,568 3,721,207 18,074,967 15,000,962
Marketing,
administrative
and
other
expenses 108,050 102,145 520,648 391,375
Equity
in
losses
(earnings)
of
unconsolidated
affiliates (4,147) 601 10,043 32,082
Interest
expense,
net 40,151 40,297 166,094 153,093
------ ------ ------- -------
4,605,622 3,864,250 18,771,752 15,577,512
--------- --------- ---------- ----------
Earnings
(loss)
before
income
taxes
and
noncontrolling
interests 224,055 (10,500) 1,251,812 267,115
Provision
for
(benefit
from)
income
taxes 65,882 (19,387) 390,828 60,792
------ ------- ------- ------
Net
earnings 158,173 8,887 860,984 206,323
Earnings
attributable
to
noncontrolling
interests 21,117 20,246 82,796 72,231
------ ------ ------ ------
Net
earnings
(loss)
attributable
to
Nucor
stockholders $137,056 $(11,359) $778,188 $134,092
======== ======== ======== ========
Net
earnings
(loss)
per
share:
Basic $0.43 ($0.04) $2.45 $0.42
===== ====== ===== =====
Diluted $0.43 ($0.04) $2.45 $0.42
===== ====== ===== =====
Average
shares
outstanding:
Basic 317,393 316,329 316,997 315,962
Diluted 317,464 316,329 317,161 316,510
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
-------------------------------------------------
(In thousands)
Dec. 31, 2011 Dec. 31, 2010
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $1,200,645 $1,325,406
Short-term investments 1,362,641 1,153,623
Accounts receivable, net 1,710,773 1,439,828
Inventories, net 1,987,257 1,557,574
Other current assets 446,765 384,744
------- -------
Total current assets 6,708,081 5,861,175
Property, plant and
equipment, net 3,755,604 3,852,118
Restricted cash and
investments 585,833 598,482
Goodwill 1,830,661 1,836,294
Other intangible assets,
net 784,640 856,125
Other assets 905,531 917,716
------- -------
Total assets $14,570,350 $13,921,910
=========== ===========
LIABILITIES
Current liabilities:
Short-term debt $1,826 $13,328
Long-term debt due within
one year 650,000 -
Accounts payable 958,645 896,703
Salaries, wages and
related accruals 333,341 207,168
Accrued expenses and other
current liabilities 452,247 387,239
------- -------
Total current liabilities 2,396,059 1,504,438
Long-term debt due after
one year 3,630,200 4,280,200
Deferred credits and other
liabilities 837,511 806,578
------- -------
Total liabilities 6,863,770 6,591,216
--------- ---------
EQUITY
Nucor stockholders'
equity:
Common stock 150,496 150,181
Additional paid-in
capital 1,756,534 1,711,518
Retained earnings 7,111,566 6,795,988
Accumulated other
comprehensive loss,
net of income taxes (38,177) (27,776)
Treasury stock (1,505,534) (1,509,841)
---------- ----------
Total Nucor stockholders'
equity 7,474,885 7,120,070
Noncontrolling interests 231,695 210,624
------- -------
Total equity 7,706,580 7,330,694
--------- ---------
Total liabilities and
equity $14,570,350 $13,921,910
=========== ===========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
-----------------------------------------------------------
(In thousands)
Year Ended December 31,
-----------------------
2011 2010
---- ----
Operating activities:
Net earnings $860,984 $206,323
Adjustments:
Depreciation 522,571 512,147
Amortization 67,829 70,455
Stock-based
compensation 49,003 43,041
Deferred income taxes 58,051 138,262
Equity in losses of
unconsolidated
affiliates 10,043 32,082
Changes in assets and
liabilities (exclusive
of acquisitions):
Accounts receivable (274,920) (310,188)
Inventories (433,696) (231,913)
Accounts payable 63,571 186,417
Federal income taxes 930 180,821
Salaries, wages and
related accruals 129,340 56,641
Other (21,094) (10,684)
------- -------
Cash provided by
operating activities 1,032,612 873,404
--------- -------
Investing activities:
Capital expenditures (440,502) (345,294)
Investment in and
advances to affiliates (95,950) (434,006)
Repayment of advances
to affiliates 50,000 83,885
Disposition of plant
and equipment 25,333 24,944
Acquisitions (net of
cash acquired) (3,959) (64,788)
Purchases of
investments (1,494,782) (1,323,264)
Proceeds from the sale
of investments 1,285,763 394,640
Purchases of restricted
investments (564,994) -
Proceeds from the sale
of restricted
investments 47,479 -
Other changes in
restricted cash and
investments 530,165 (598,482)
------- --------
Cash used in investing
activities (661,447) (2,262,365)
-------- ----------
Financing activities:
Net change in short-
term debt (11,450) 11,561
Repayment of long-term
debt - (6,000)
Proceeds from issuance
of long-term debt,
net of discount - 1,198,992
Debt issuance costs - (4,050)
Issuance of common
stock 8,097 4,687
Excess tax benefits
from stock-based
compensation 1,000 (700)
Distributions to
noncontrolling
interests (61,720) (55,380)
Cash dividends (461,518) (457,282)
Other financing
activities 30,569 -
------ ---
Cash provided by (used
in) financing
activities (495,022) 691,828
-------- -------
Effect of exchange rate
changes on cash (904) 5,558
---- -----
Decrease in cash and
cash equivalents (124,761) (691,575)
Cash and cash
equivalents -
beginning of year 1,325,406 2,016,981
--------- ---------
Cash and cash
equivalents -end of
year $1,200,645 $1,325,406
========== ==========
SOURCE Nucor Corporation
