THIRD
QUARTER
1995
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 September 30, 1995 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
87,473,194 shares of common stock were outstanding at September 30, 1995.
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<PAGE>
PART I - FINANCIAL INFORMATION
Consolidated Condensed Statements of Earnings
<TABLE>
<CAPTION>
Nine Months (39 Weeks) Ended Three Months (13 Weeks) Ended
Sep. 30, 1995 Oct. 1, 1994 Sep. 30, 1995 Oct. 1, 1994
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Net sales................... $2,582,431,557 $2,176,227,606 $860,544,790 $786,424,788
-------------- -------------- ------------ ------------
Costs and expenses:
Cost of products sold..... 2,167,023,090 1,844,132,395 729,947,924 647,794,603
Marketing, administrative
and other expenses...... 103,051,370 90,967,237 33,526,236 35,609,119
Interest expense (income). 711,926 11,444,067 (932,414) 3,397,244
-------------- -------------- ------------ ------------
2,270,786,386 1,946,543,699 762,541,746 686,800,966
-------------- -------------- ------------ ------------
Earnings before
federal income taxes...... 311,645,171 229,683,907 98,003,044 99,623,822
Federal income taxes...... 111,400,000 80,600,000 35,000,000 35,100,000
-------------- -------------- ------------ ------------
Net earnings............ $ 200,245,171 $ $149,083,907 $ 63,003,044 $ 64,523,822
============== ============== ============ ============
Net earnings per share...... $2.29 $1.71 $.72 $.74
===== ===== ==== ====
Dividends declared
per share............... $.21 $.135 $.07 $.045
==== ===== ==== =====
Average number of
shares outstanding.... 87,413,820 87,147,660 87,455,135 87,183,177
</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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<PAGE>
Consolidated Condensed Balance Sheets
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
Assets (Unaudited) (Audited)
<S> <C> <C>
Current assets:
Cash and short-term investments................. $ 259,465,228 $ 101,930,479
Accounts receivable............................. 294,367,960 258,131,947
Inventories..................................... 235,049,227 243,026,854
Other current assets............................ 39,785,495 35,612,117
-------------- --------------
Total current assets.......................... 828,667,910 638,701,397
Property, plant and equipment..................... 1,406,145,458 1,363,218,768
-------------- --------------
Total assets.................................. $2,234,813,368 $2,001,920,165
============== ==============
Liabilities and stockholders' equity
Current liabilities:
Long-term debt due within one year.............. $ 150,000 $ 250,000
Accounts payable................................ 200,004,735 182,846,410
Salaries, wages and related accruals............ 125,739,813 88,706,273
Federal income taxes............................ 5,907,659 15,507,659
Accrued expenses and other current liabilities.. 130,969,600 95,154,860
-------------- --------------
Total current liabilities..................... 462,771,807 382,465,202
-------------- --------------
Long-term debt due after one year................. 124,850,000 173,000,000
-------------- --------------
Deferred credits and other liabilities............ 139,509,517 147,859,517
-------------- --------------
Minority interests................................ 200,561,988 175,985,189
-------------- --------------
Stockholders' equity:
Common stock.................................... 35,857,649 35,803,072
Additional paid-in capital...................... 41,815,833 39,272,431
Retained earnings............................... 1,247,679,345 1,065,796,421
-------------- --------------
1,325,352,827 1,140,871,924
Treasury stock.................................. (18,232,771) (18,261,667)
-------------- --------------
1,307,120,056 1,122,610,257
-------------- --------------
Total liabilities and stockholders' equity.... $2,234,813,368 $2,001,920,165
============== ==============
</TABLE>
Inventories consisted of approximately 50% raw materials and supplies, and
50% finished and semi-finished products at September 30, 1995 (55% and 45% at
December 31, 1994).
The information furnished has not been audited and is subject to year-end
adjustments.
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<PAGE>
Consolidated Condensed Statements of Cash Flows
<TABLE>
<CAPTION>
Nine Months (39 Weeks) Ended
Sep. 30, 1995 Oct. 1, 1994
(Unaudited) (Unaudited)
<S> <C> <C>
Operating activities:
Net earnings............................................ $200,245,171 $149,083,907
Adjustments:
Depreciation of plant and equipment................... 124,072,243 113,154,831
Minority interests.................................... 26,058,919 14,408,469
Changes in:
Current assets...................................... (32,431,764) (83,073,119)
Current liabilities................................. 80,406,605 97,560,236
Other............................................... (32,400,721) 16,060,189
------------ ------------
Cash provided by operating activities................. 365,950,453 307,194,513
------------ ------------
Investing activities:
Capital expenditures.................................... (142,948,212) (154,531,802)
------------ ------------
Cash used in investing activities..................... (142,948,212) (154,531,802)
------------ ------------
Financing activities:
Decrease in long-term debt.............................. (48,250,000) (135,200,000)
Contributions for (distributions to) minority interests. (1,482,120) 12,100,170
Issuance of common stock................................ 2,626,875 2,645,989
Cash dividends.......................................... (18,362,247) (11,768,479)
------------ ------------
Cash used in financing activities..................... (65,467,492) (132,222,320)
------------ ------------
Increase in cash and short-term investments............... $157,534,749 $ 20,440,391
============ ============
</TABLE>
The information furnished has not been audited and is subject to year-end
adjustments.
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<PAGE>
Analysis of Operations and Finances
Operations
Net sales increased by about 10% from the third quarter of 1994 to the third
quarter of 1995, with about half of the net sales increase resulting from an
increase in sales volume and about half resulting from an increase in average
sales prices. Net sales increased by about 20% from the first nine months of
1994 to the first nine months of 1995, with about 70% of the net sales increase
resulting from an increase in sales volume. Average sales prices increased by
about 5% from both the third quarter of 1994 to the third quarter of 1995, and
from the first nine months of 1994 to the first nine months of 1995.
The major component of cost of products sold is raw material costs. The
average price of raw materials increased about 10% in the third quarter of 1995
compared with the third quarter of 1994, and increased by more than 5% in the
first nine months of 1995 from the comparable year-earlier period.
Major components of marketing, administrative and other expenses are freight
and profit sharing costs. Unit freight costs decreased slightly from both the
third quarter of 1994 to the third quarter of 1995, and from the first nine
months of 1994 to the first nine months of 1995. Profit sharing costs decreased
about 15% from the third quarter of 1994 to the third quarter of 1995, and
increased about 20% from the first nine months of 1994 to the first nine months
of 1995. 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, decreased for both the third quarter and first nine months of 1995
from the third quarter and first nine months of 1994, due to decreased
borrowings and increased earnings from short-term investments.
Federal income taxes were at a rate of about 36% for the third quarter and
first nine months of 1995, versus a rate of about 35% for the third quarter and
first nine months of 1994.
Net earnings decreased during the third quarter of 1995, compared with the
third quarter of 1994, principally due to decreased margins. Net earnings
increased for the first nine months of 1995, compared with the first nine months
of 1994, principally due to increased sales volume.
Margins were about 15% for the third quarter of 1995 and about 16% for the
first nine months of 1995, versus about 18% for the third quarter of 1994 and
15% for the first nine months of 1994.
Liquidity and capital resources
The current ratio was about 1.8 at the end of the first nine months of 1995,
and about 1.7 at year-end 1994. The percentage of long-term debt to total
capital was about 8% at the end of the first nine months of 1995, and about 12%
at year-end 1994.
Capital expenditures decreased more than 5% during the first nine months of
1995, compared with the first nine months of 1994. Capital expenditures are
projected to be more than $200 million for all of 1995. Funds provided from
operations, existing credit facilities and new borrowings are expected to be
adequate to meet future capital expenditure and working capital requirements.
- 5 -
<PAGE>
PART II - OTHER INFORMATION
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>
Nine Months (39 Weeks) Ended Three months (13 Weeks) Ended
Sep. 30, 1995 Oct. 1, 1994 Sep. 30, 1995 Oct. 1, 1994
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Primary:
<S> <C> <C> <C> <C>
Primary net earnings.......... $200,245,171 $149,083,907 $63,003,044 $64,523,822
============ ============ =========== ===========
Average shares outstanding
(excludes dilutive effect
of employee stock options
because less than 3%)...... 87,413,820 87,147,660 87,455,135 87,183,177
========== ========== ========== ==========
Primary
net earnings per share...... $2.2908 $1.7107 $.7204 $.7401
======= ======= ====== ======
Fully diluted:
Fully diluted net earnings.... $200,245,171 $149,083,907 $63,003,044 $64,523,822
============ ============ =========== ===========
Fully diluted average shares outstanding:
Primary shares outstanding.. 87,413,820 87,147,660 87,455,135 87,183,177
Dilutive effect of
employee stock options.... 192,034 350,043 158,110 341,371
---------- ---------- ---------- ----------
87,605,854 87,497,703 87,613,245 87,524,548
========== ========== ========== ==========
Fully diluted
net earnings per share...... $2.2858 $1.7039 $.7191 $.7372
======= ======= ====== ======
</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
Vice Chairman,
Dated: November 10, 1995 Chief Financial Officer
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<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 259,465,228
<SECURITIES> 0
<RECEIVABLES> 311,433,225
<ALLOWANCES> 17,065,265
<INVENTORY> 235,049,227
<CURRENT-ASSETS> 828,667,910
<PP&E> 2,139,563,942
<DEPRECIATION> 733,418,484
<TOTAL-ASSETS> 2,234,813,368
<CURRENT-LIABILITIES> 462,771,807
<BONDS> 124,850,000
<COMMON> 35,857,649
0
0
<OTHER-SE> 1,289,495,178
<TOTAL-LIABILITY-AND-EQUITY> 2,234,813,368
<SALES> 860,544,790
<TOTAL-REVENUES> 860,544,790
<CGS> 729,947,924
<TOTAL-COSTS> 729,947,924
<OTHER-EXPENSES> 33,526,236
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (932,414)
<INCOME-PRETAX> 98,003,044
<INCOME-TAX> 35,000,000
<INCOME-CONTINUING> 63,003,044
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 63,003,044
<EPS-PRIMARY> .72
<EPS-DILUTED> .72
</TABLE>
