FIRST
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 March 30, 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
87,679,252 shares of common stock were outstanding at March 30, 1996.
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<PAGE>
PART I - FINANCIAL INFORMATION
Consolidated Condensed Statements of Earnings
<TABLE>
<CAPTION>
Three Months (13 Weeks) Ended
March 30, 1996 April 1, 1995
(Unaudited) (Unaudited)
<S> <C> <C>
Net sales......................................... $876,113,043 $841,734,652
Costs and expenses:
Cost of products sold........................... 766,609,546 701,986,925
Marketing, administrative and other expenses.... 28,980,919 33,706,358
Interest expense (income)....................... (961,229) 1,232,918
794,629,236 736,926,201
Earnings before federal income taxes.............. 81,483,807 104,808,451
Federal income taxes............................ 28,900,000 37,500,000
Net earnings.................................. $ 52,583,807 $ 67,308,451
Net earnings per share............................ $.60 $.77
Dividends declared per share.................... $.08 $.07
Average number of shares outstanding.......... 87,635,545 87,363,786
</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>
March 30, December 31,
1996 1995
Assets (Unaudited) (Audited)
<S> <C> <C>
Current assets:
Cash and short-term investments................. $ 198,988,373 $ 201,795,775
Accounts receivable............................. 295,241,410 283,206,832
Inventories..................................... 329,410,007 306,773,384
Other current assets............................ 40,044,486 38,965,327
Total current assets.......................... 863,684,276 830,741,318
Property, plant and equipment..................... 1,539,989,711 1,465,400,015
Total assets.................................. $2,403,673,987 $2,296,141,333
Liabilities and stockholders' equity
Current liabilities:
Long-term debt due within one year.............. $ 150,000 $ 150,000
Accounts payable................................ 231,240,137 214,562,570
Salaries, wages and related accruals............ 73,483,704 104,562,678
Federal income taxes............................ 40,198,873 11,298,873
Accrued expenses and other current liabilities.. 127,740,975 116,562,190
Total current liabilities..................... 472,813,689 447,136,311
Long-term debt due after one year................. 131,700,000 106,850,000
Deferred credits and other liabilities............ 140,134,197 139,384,197
Minority interests................................ 229,515,360 220,658,666
Stockholders' equity:
Common stock.................................... 35,934,244 35,902,460
Additional paid-in capital...................... 50,452,188 48,669,443
Retained earnings............................... 1,361,417,282 1,315,844,041
1,447,803,714 1,400,415,944
Treasury stock.................................. (18,292,973) (18,303,785)
1,429,510,741 1,382,112,159
Total liabilities and stockholders' equity.... $2,403,673,987 $2,296,141,333
</TABLE>
Inventories consisted of approximately 55% raw materials and supplies, and 45%
finished and semi-finished products at March 30, 1996 (55% and 45% at December
31, 1995).
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>
Three Months (13 Weeks) Ended
March 30, 1996 April 1, 1995
(Unaudited) (Unaudited)
<S> <C> <C>
Operating activities:
Net earnings............................................ $ 52,583,807 $ 67,308,451
Adjustments:
Depreciation of plant and equipment................... 42,186,710 40,832,555
Minority interests.................................... 21,371,294 2,404,438
Changes in:
Current assets...................................... (35,750,360) (48,476,657)
Current liabilities................................. 25,677,378 60,956,739
Other............................................... (7,907,267) 550,000
Cash provided by operating activities................. 98,161,562 123,575,526
Investing activities:
Capital expenditures.................................... (108,119,138) (22,123,997)
Cash (used in) investing activities................... (108,119,138) (22,123,997)
Financing activities:
Increase (decrease) in long-term debt................... 24,850,000 (36,250,000)
Contributions for (distributions to) minority interests. (12,514,600) 1,541,200
Issuance of common stock................................ 1,825,341 1,282,436
Cash dividends.......................................... (7,010,567) (6,118,518)
Cash provided by (used in) financing activities....... 7,150,174 (39,544,882)
Increase (decrease) in cash and short-term investments.... $ (2,807,402) $ 61,906,647
</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 for the first quarter of 1996 increased about 4% from the first
quarter of 1995. All of the net sales increase resulted from an increase in
volume. Average sales prices decreased by less than 5% from the first quarter
of 1994.
The major component of cost of products sold is raw material costs. The
average price of raw materials increased slightly from the first quarter of
1995.
Major components of marketing, administrative and other expenses are
freight and profit sharing costs. Unit freight costs decreased about 5% from
the first quarter of 1995, and profit sharing costs decreased about 30%,
compared with the 1995 first quarter. 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 quarter of 1996 over the comparable 1995
quarter, primarily due to an decrease in average borrowings in this year's
first quarter.
Federal income taxes were at a rate of about 35% for the first quarter of
1996, and at a rate of about 36% for the first quarter of 1995.
Net earnings decreased about 20% during the first quarter of 1996,
compared with the first quarter of 1995, due to decreased margins.
Margins were about 12.5% for the first quarter of 1996, and about 16.6%
for the first quarter of 1995.
Liquidity and capital resources
The current ratio was about 1.8 at the end of the 1996 first quarter, 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 quarter of 1996, and about 6% at year-end
1995.
Capital expenditures increased about 400% during the first quarter of
1996, compared with the first quarter of 1995. Capital expenditures are
anticipated to be more than $500 million for all of 1996. 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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<PAGE>
PART II - OTHER INFORMATION
Item6 - 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
Three months (13 Weeks) Ended
March 30, 1996 April 1, 1995
(Unaudited) (Unaudited)
Primary:
Primary net earnings........................... $52,583,807 $67,308,451
Average shares outstanding
(excludes dilutive effect of employee
stock options because less than 3%).......... 87,635,545 87,363,786
Primary net earnings per share................. $.6000 $.7704
Fully diluted:
Fully diluted net earnings..................... $52,583,807 $67,308,451
Fully diluted average shares outstanding:
Primary shares outstanding................... 87,635,545 87,363,786
Dilutive effect of employee stock options.... 146,499 222,934
---------- ----------
87,782,044 87,586,720
Fully diluted net earnings per share........... $.5990 $.7685
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: May 10, 1996 Chief Financial Officer
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-30-1996
<CASH> 198,988,373
<SECURITIES> 0
<RECEIVABLES> 311,820,025
<ALLOWANCES> 16,578,615
<INVENTORY> 329,410,007
<CURRENT-ASSETS> 863,684,276
<PP&E> 2,328,682,769
<DEPRECIATION> 788,693,058
<TOTAL-ASSETS> 2,403,673,987
<CURRENT-LIABILITIES> 472,813,689
<BONDS> 131,700,000
<COMMON> 35,934,244
0
0
<OTHER-SE> 1,411,869,470
<TOTAL-LIABILITY-AND-EQUITY> 2,403,673,987
<SALES> 876,113,043
<TOTAL-REVENUES> 876,113,043
<CGS> 766,609,546
<TOTAL-COSTS> 766,609,546
<OTHER-EXPENSES> 28,980,919
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (961,229)
<INCOME-PRETAX> 81,483,807
<INCOME-TAX> 28,900,000
<INCOME-CONTINUING> 52,583,807
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 52,583,807
<EPS-PRIMARY> .60
<EPS-DILUTED> .60
</TABLE>
