<PAGE>
THIRD
QUARTER
1996
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 28, 1996 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 ___
87,718,082 shares of common stock were outstanding at September 28, 1996.
- 1 -
<PAGE>
PART I - FINANCIAL INFORMATION
Consolidated Condensed Statements of Earnings
<TABLE>
<CAPTION>
Nine Months (39 Weeks) Ended Three Months (13 Weeks) Ended
Sep. 28, 1996 Sep. 30, 1995 Sep. 28, 1996 Sep. 30, 1995
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Net sales................... $2,724,658,269 $2,582,431,557 $937,447,929 $860,544,790
-------------- -------------- ------------ ------------
Costs and expenses:
Cost of products sold..... 2,374,931,522 2,167,023,090 814,986,780 729,947,924
Marketing, administrative
and other expenses...... 93,432,917 103,051,370 32,540,038 33,526,236
Interest expense (income). (619,830) 711,926 234,088 (932,414)
-------------- -------------- ------------ ------------
2,467,744,609 2,270,786,386 847,760,906 762,541,746
-------------- -------------- ------------ ------------
Earnings before
federal income taxes...... 256,913,660 311,645,171 89,687,023 98,003,044
Federal income taxes...... 91,200,000 111,400,000 31,800,000 35,000,000
-------------- -------------- ------------ ------------
Net earnings............ $ 165,713,660 $ 200,245,171 $ 57,887,023 $ 63,003,044
============== ============== ============ ============
Net earnings per share...... $1.89 $2.29 $.66 $.72
===== ===== ==== ====
Dividends declared
per share............... $.24 $.21 $.08 $.07
==== ==== ==== ====
Average number of
shares outstanding.... 87,673,653 87,413,820 87,703,051 87,455,135
</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.
- 2 -
<PAGE>
Consolidated Condensed Balance Sheets
<TABLE>
<CAPTION>
September 28, December 31,
1996 1995
Assets (Unaudited) (Audited)
<S> <C> <C>
Current assets:
Cash and short-term investments................. $ 125,523,890 $ 201,795,775
Accounts receivable............................. 327,073,081 283,206,832
Inventories..................................... 317,677,099 306,773,384
Other current assets............................ 46,841,156 38,965,327
-------------- --------------
Total current assets.......................... 817,115,226 830,741,318
Property, plant and equipment..................... 1,713,242,991 1,465,400,015
-------------- --------------
Total assets.................................. $2,530,358,217 $2,296,141,333
============== ==============
Liabilities and stockholders' equity
Current liabilities:
Long-term debt due within one year.............. $ 150,000 $ 150,000
Accounts payable................................ 224,746,371 214,562,570
Salaries, wages and related accruals............ 123,479,637 104,562,678
Federal income taxes............................ 3,547,360 11,298,873
Accrued expenses and other current liabilities.. 143,247,138 116,562,190
-------------- --------------
Total current liabilities..................... 495,170,506 447,136,311
-------------- --------------
Long-term debt due after one year................. 131,700,000 106,850,000
-------------- --------------
Deferred credits and other liabilities............ 129,133,547 139,384,197
-------------- --------------
Minority interests................................ 244,796,041 220,658,666
-------------- --------------
Stockholders' equity:
Common stock.................................... 35,948,468 35,902,460
Additional paid-in capital...................... 51,363,633 48,669,443
Retained earnings............................... 1,460,511,266 1,315,844,041
-------------- --------------
1,547,823,367 1,400,415,944
Treasury stock.................................. (18,265,244) (18,303,785)
-------------- --------------
1,529,558,123 1,382,112,159
Total liabilities and stockholders' equity.... $2,530,358,217 $2,296,141,333
============== ==============
</TABLE>
Inventories consisted of approximately 55% raw materials and supplies, and
45% finished and semi-finished products at September 28, 1996 (55% and 45% at
December 31, 1995).
The information furnished has not been audited and is subject to year-end
adjustments.
- 3 -
<PAGE>
Consolidated Condensed Statements of Cash Flows
<TABLE>
<CAPTION>
Nine Months (39 Weeks) Ended
Sep. 28, 1996 Sep. 30, 1995
(Unaudited) (Unaudited)
<S> <C> <C>
Operating activities:
Net earnings............................................ $165,713,660 $200,245,171
Adjustments:
Depreciation of plant and equipment................... 130,530,677 124,072,243
Minority interests.................................... 55,924,415 26,058,919
Changes in:
Current assets...................................... (62,645,793) (32,431,764)
Current liabilities................................. 48,034,195 80,406,605
Other............................................... 5,942,597 (32,400,721)
------------ ------------
Cash provided by operating activities................. 343,499,751 365,950,453
------------ ------------
Investing activities:
Capital expenditures (net).............................. (394,566,900) (142,948,212)
------------ ------------
Cash used in investing activities..................... (394,566,900) (142,948,212)
------------ ------------
Financing activities:
Increase (decrease) in long-term debt................... 24,850,000 (48,250,000)
Contributions for (distributions to) minority interests. (31,787,040) (1,482,120)
Issuance of common stock................................ 2,778,739 2,626,875
Cash dividends.......................................... (21,046,435) (18,362,247)
------------ ------------
Cash used in financing activities..................... (25,204,736) (65,467,492)
------------ ------------
Increase (decrease) in cash and short-term investments.... $(76,271,885) $157,534,749
============ ============
</TABLE>
The information furnished has not been audited and is subject to year-end
adjustments.
- 4 -
<PAGE>
Analysis of Operations and Finances
Operations
Net sales increased by close to 10% from the third quarter of 1995 to the
third quarter of 1996, with nearly all of the net sales increase resulting from
an increase in sales volume. Net sales increased by about 5% from the first nine
months of 1995 to the first nine months of 1996, with all of the net sales
increase resulting from an increase in sales volume. Average sales prices were
substantially the same in the third quarter of 1995 and the third quarter of
1996, and were substantially the same in the first nine months of 1995 and in
the first nine months of 1996.
The major component of cost of products sold is raw material costs. The
average price of raw materials increased about 2% in the third quarter of 1996
compared with the third quarter of 1995, and increased by about 1% in the first
nine months of 1996 from the comparable year-earlier period.
Major components of marketing, administrative and other expenses are freight
and profit sharing costs. Unit freight costs increased about 10% from the third
quarter of 1995 to the third quarter of 1996, and increased about 5% from the
first nine months of 1995 to the first nine months of 1996. Profit sharing costs
decreased about 15% from the third quarter of 1995 to the third quarter of 1996,
and decreased about 25% from the first nine months of 1995 to the first nine
months of 1996. 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 the first nine months of 1996 from the first nine
months of 1995, due primarily to decreased average borrowings, and increased
from the third quarter of 1995 to the third quarter of 1996 due primarily to
decreased earnings from short term investments.
Federal income taxes were at a rate of about 36% for the third quarter and
first nine months of 1996, and the third quarter and first nine months of 1995.
Net earnings decreased during the third quarter and first nine months of
1996, compared with the third quarter and first nine months of 1995, principally
due to increased pre-operating and start-up costs of new facilities and
decreased margins.
Margins were about 13% for the third quarter of 1996 and first nine months
of 1996, versus about 15% for the third quarter of 1995 and 16% for the first
nine months of 1995.
Liquidity and capital resources
The current ratio was about 1.6 at the end of the first nine months of 1996,
and about 1.9 at year-end 1995. The percentage of long-term debt to total
capital was about 7% at the end of the first nine months of 1996, and about 6%
at year-end 1995.
Capital expenditures increased over 175% during the first nine months of
1996, compared with the first nine months of 1995. Capital expenditures are
projected to be more than $500 million for all of 1996. 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.
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: SAM SIEGEL
Samuel Siegel
Vice Chairman,
Dated: November 11, 1996 Chief Financial Officer
- 6 -
<PAGE>
Exhibit 11 - Computation of net earnings per share
<TABLE>
<CAPTION>
Nine Months (39 Weeks) Ended Three months (13 Weeks) Ended
Sep. 28, 1996 Sep. 30, 1995 Sep. 28, 1996 Sep. 30, 1995
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Primary:
Primary net earnings.......... $165,713,660 $200,245,171 $57,887,023 $63,003,044
============ ============ =========== ===========
Average shares outstanding
(excludes dilutive effect
of employee stock options
because less than 3%)...... 87,673,653 87,413,820 87,703,051 87,455,135
========== ========== ========== ==========
Primary
net earnings per share...... $1.8901 $2.2908 $.6600 $.7204
======= ======= ====== ======
Fully diluted:
Fully diluted net earnings.... $165,713,660 $200,245,171 $57,887,023 $63,003,044
============ ============ =========== ===========
Fully diluted average shares outstanding:
Primary shares outstanding.. 87,673,653 87,413,820 87,703,051 87,455,135
Dilutive effect of
employee stock options.... 107,337 192,034 71,533 158,110
---------- ---------- ---------- ----------
87,780,990 87,605,854 87,774,584 87,613,245
========== ========== ========== ==========
Fully diluted
net earnings per share...... $1.8878 $2.2858 $.6596 $.7191
======= ======= ====== ======
</TABLE>
The information furnished has not been audited and is subject to year-end
adjustments.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-28-1996
<CASH> 125,523,890
<SECURITIES> 0
<RECEIVABLES> 343,991,662
<ALLOWANCES> 16,918,581
<INVENTORY> 317,677,099
<CURRENT-ASSETS> 817,115,226
<PP&E> 2,588,815,882
<DEPRECIATION> 875,572,891
<TOTAL-ASSETS> 2,530,358,217
<CURRENT-LIABILITIES> 495,170,506
<BONDS> 131,700,000
<COMMON> 35,948,468
0
0
<OTHER-SE> 1,493,609,655
<TOTAL-LIABILITY-AND-EQUITY> 2,530,358,217
<SALES> 2,724,658,269
<TOTAL-REVENUES> 2,724,658,269
<CGS> 2,374,931,522
<TOTAL-COSTS> 2,374,931,522
<OTHER-EXPENSES> 93,432,917
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (619,830)
<INCOME-PRETAX> 256,913,660
<INCOME-TAX> 91,200,000
<INCOME-CONTINUING> 165,713,660
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 165,713,660
<EPS-PRIMARY> 1.89
<EPS-DILUTED> 1.89
</TABLE>
