SECOND
QUARTER
1994
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For quarter ended July 2, 1994 Commission file number 1-4119
NUCOR CORPORATION
(Exact name as specified in charter)
Delaware 13-1860817
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
2100 Rexford Road, Charlotte, North Carolina 28211
(Address of principal executive offices) (Zip code)
Telephone number, including area code: (704) 366-7000
Indication by check mark whether Nucor Corporation (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding twelve months, and (2) has been subject to such
filing requirements for the past 90 days: Yes X No
87,165,911 shares of common stock were outstanding at July 2, 1994.
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PART I - FINANCIAL INFORMATION
Consolidated Condensed Statements of Earnings
<TABLE>
<CAPTION>
Six Months (26 Weeks) Ended Three Months (13 Weeks) Ended
July 2, 1994 July 3, 1993 July 2, 1994 July 3, 1993
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Net sales...................... $1,389,802,818 $1,054,711,722 $740,101,570 $564,932,555
Costs and expenses:
Cost of products sold..... 1,196,337,792 925,426,922 629,028,479 491,719,210
Marketing, administrative
and other expenses...... 55,358,118 44,139,997 30,514,935 23,056,612
Interest expense.......... 8,046,823 6,082,756 4,178,025 3,339,281
1,259,742,733 975,649,675 663,721,439 518,115,103
Earnings before
federal income taxes...... 130,060,085 79,062,047 76,380,131 46,817,452
Federal income taxes...... 45,500,000 26,900,000 26,700,000 16,400,000
Net earnings............ $ 84,560,085 $ 52,162,047 $ 49,680,131 $ 30,417,452
Net earnings per share......... $.97 $.60 $.57 $.35
Dividends declared
per share............... $.09 $.08 $.045 $.04
Average number of
shares outstanding.... 87,129,998 86,842,942 87,153,715 86,893,230
</TABLE>
The information furnished reflects all adjustments which are, in the opinion
of management, necessary to a fair statement of the results for the interim
periods.
The information furnished has not been audited and is subject to year-end
adjustments.
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Consolidated Condensed Balance Sheets
<TABLE>
<CAPTION>
July 2, December 31,
1994 1993
(Unaudited) (Audited)
<S> <C> <C>
Assets
Current assets:
Cash and short-term investments................. $ 42,921,893 $ 27,254,817
Accounts receivable............................. 257,968,343 202,176,241
Inventories..................................... 233,954,535 215,014,570
Other current assets............................ 25,285,599 23,786,254
Total current assets.......................... 560,130,370 468,231,882
Property, plant and equipment......................... 1,415,847,028 1,361,036,440
Total assets.................................. $1,975,977,398 $1,829,268,322
Liabilities and stockholders' equity
Current liabilities:
Long-term debt due within one year.............. $ 200,000 $ 200,000
Accounts payable................................ 180,963,017 165,734,528
Salaries, wages and related accruals............ 78,899,082 60,892,849
Federal income taxes............................ 18,195,929 14,267,152
Accrued expenses and other current liabilities.. 144,272,765 109,396,252
Total current liabilities..................... 422,530,793 350,490,781
Long-term debt due after one year..................... 319,050,000 352,250,000
Deferred credits and other liabilities................ 88,773,098 81,273,098
Minority interests.................................... 165,027,638 143,087,504
Stockholders' equity:
Common stock.................................... 35,737,050 35,701,222
Additional paid-in capital...................... 31,566,630 29,913,677
Retained earnings............................... 931,573,554 854,857,471
998,877,234 920,472,370
Treasury stock.................................. (18,281,365) (18,305,431)
980,595,869 902,166,939
Total liabilities and stockholders' equity.... $1,975,977,398 $1,829,268,322
</TABLE>
Inventories consisted of approximately 50% raw materials and supplies, and 50%
finished and semi-finished products at July 2, 1994 (50% and 50% at
December 31, 1993).
The information furnished has not been audited and is subject to year-end
adjustments.
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Consolidated Condensed Statements of Cash Flows
<TABLE>
<CAPTION>
Six Months (26 Weeks) Ended
July 2, 1994 July 3, 1993
(Unaudited) (Unaudited)
<S> <C> <C>
Operating activities:
Net earnings..................................... $ 84,560,085 $ 52,162,047
Adjustments:
Depreciation of plant and equipment............ 73,621,764 60,678,436
Minority interests............................. 7,776,574 8,922,702
Changes in:
Current assets............................... (76,231,412) (79,060,455)
Current liabilities.......................... 72,040,012 57,252,194
Other........................................ 7,203,105 8,017,408
Cash provided by operating activities.......... 168,970,128 107,972,332
Investing activities:
Capital expenditures (net)....................... (128,135,457) (207,868,951)
Cash (used in) investing activities............ (128,135,457) (207,868,951)
Financing activities:
Increase (decrease) in long-term debt............ (33,200,000) 112,300,000
Contributions for (distributions to) minority
interests.................................... 14,163,560 (5,614,420)
Issuance of common stock......................... 1,712,847 2,894,871
Cash dividends................................... (7,844,002) (6,951,476)
Cash provided by (used in) financing
activities.................................. (25,167,595) 102,628,975
Increase in cash and short-term investments............ $ 15,667,076 $ 2,732,356
</TABLE>
The information furnished has not been audited and is subject to year-end
adjustments.
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Analysis of Operations and Finances
Operations
Net sales increased by about 30% from the second quarter of 1993 to the
second quarter of 1994, and increased by more than 30% from the first half of
1993 to the first half of 1994. About one half of the net sales increase
resulted from an increase in sales volume, and about one half resulted from an
increase in average sales prices. Average sales prices increased by more than
10% from the second quarter of 1993 to the second quarter of 1994, and
increased by about 15% from the first half of 1993 to the first half of 1994.
The major component of cost of products sold is raw material costs. The
average price of raw materials increased about 20% in the second quarter of
1994 compared with the second quarter of 1993, and increased about 25% in the
first half of 1994 from the year-earlier half.
Major components of marketing, administrative and other expenses are
freight and profit sharing costs. Unit freight costs decreased about 15% in
the second quarter of 1994 from the second quarter of 1993 and decreased about
15% from the first half of 1993 to the first half of 1994. Profit sharing
costs increased about 70% from the second quarter of 1993 to the second
quarter of 1994, and increased about 75% from the first half of 1993 to the
first half of 1994. Profit sharing costs are based upon and generally
fluctuate with pre-tax earnings.
Interest expense, which is reduced by interest income from short-term
investments, increased for the second quarter and first half of 1994 from the
second quarter and first half of 1993, due to increased borrowings and
increased average interest rates.
Federal income taxes were at a rate of about 35% for the first half and
second quarter of 1994, versus a rate of about 35% for the second quarter of
1993 and about 34% for the first half of 1993.
Net earnings increased during the second quarter and first half of 1994,
compared with the second quarter and first half of 1993, principally due to
increased sales volume and improved margins.
Margins were about 15% for the second quarter of 1994 and about 14% for
the first half of 1994, versus about 13% for the second quarter of 1993 and
about 12% for the first half of 1993.
Liquidity and capital resources
The current ratio was about 1.3 at the end of the first half of 1994, and
about 1.3 at year-end 1993. The percentage of long-term debt to total capital
was about 21% at the end of the first half of 1994, and about 25% at year-end
1993.
Capital expenditures decreased about 40% during the first half of 1994,
compared with the first half of 1993. Capital expenditures are projected to
be more than $200 million for all of 1994. Funds provided from operations,
existing credit facilities and new long-term debt are expected to be more than
adequate to meet future capital expenditure and working capital requirements.
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PART II - OTHER INFORMATION
Item 4 - Submission of Matters to a Vote of Security Holders
At the annual meeting of stockholders held on May 12, 1994, two directors
were elected for terms of three years expiring in 1997. 54,969,973 shares
were voted for H. David Aycock (737,572 abstained); and 54,970,308 shares were
voted for Samuel Siegel (737,237 abstained).
Item 6 - Exhibits and Reports on Form 8-K
Exhibit 11 - Computation of net earnings per share.
Reports on Form 8-K - None filed for the quarter.
Exhibit 11 - Computation of net earnings per share
<TABLE>
<CAPTION>
Six Months (26 Weeks) Ended Three months (13 Weeks) Ended
July 2, 1994 July 3, 1993 July 2, 1994 July 3, 1993
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Primary:
Primary net earnings.............. $84,560,085 $52,162,047 $49,680,131 $30,417,452
Average shares outstanding
(excludes dilutive effect
of employee stock options
because less than 3%)........... 87,129,998 86,842,942 87,153,715 86,893,230
Primary net earnings per share.. $.9705 $.6006 $.5700 $.3501
Fully diluted:
Fully diluted net earnings........ $84,560,085 $52,162,047 $49,680,131 $30,417,452
Fully diluted
average shares outstanding:
Primary shares outstanding...... 87,129,998 86,842,942 87,153,715 86,893,230
Dilutive effect of
employee stock options........ 354,357 403,938 353,423 366,826
87,484,355 87,246,880 87,507,137 87,260,056
Fully diluted
net earnings per share.......... $.9666 $.5979 $.5676 $.3486
</TABLE>
The information furnished has not been audited and is subject to year-end
adjustments.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Nucor
Corporation has duly caused this report to be signed on its behalf by the
undersigned, who is (1) a duly authorized officer, and (2) the principal
financial officer.
NUCOR CORPORATION
By: SAMUEL SIEGEL
Samuel Siegel
Vice Chairman,
Dated: August 11, 1994 Chief Financial Officer
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