THIRD
QUARTER
1997
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 October 4, 1997 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
-- --
87,908,284 shares of common stock were outstanding at October 4, 1997.
- 1 -
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Consolidated Condensed Statements of Earnings
- ---------------------------------------------
<TABLE>
<CAPTION>
Nine Months (39 Weeks) Ended Three Months (13 Weeks) Ended
------------------------------ -----------------------------
Oct. 4, 1997 Sep. 28, 1996 Oct. 4, 1997 Sep. 28, 1996
------------ -------------- -------------- --------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------ -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net sales................... $3,147,201,389 $2,724,658,269 $1,101,620,966 $937,447,929
-------------- -------------- -------------- ------------
Costs and expenses:
Cost of products sold..... 2,692,579,797 2,374,931,522 936,249,493 814,986,780
Marketing, administrative
and other expenses...... 112,776,041 93,432,917 40,541,814 32,540,038
Interest expense (income). 1,254,821 (619,830) (154,665) 234,088
-------------- -------------- -------------- ------------
2,806,610,659 2,467,744,609 976,636,642 847,760,906
-------------- -------------- -------------- ------------
Earnings before
federal income taxes...... 340,590,730 256,913,660 124,984,324 89,687,023
Federal income taxes...... 122,600,000 91,200,000 45,000,000 31,800,000
-------------- -------------- -------------- ------------
Net earnings............ $ 217,990,730 $ 165,713,660 $ 79,984,324 $ 57,887,023
============== ============== ============== ============
Net earnings per share...... $2.48 $1.89 $.91 $.66
===== ===== ==== ====
Dividends declared
per share............... $.30 $.24 $.10 $.08
==== ==== ==== ====
Average number of
shares outstanding.... 87,860,682 87,673,653 87,894,245 87,703,051
</TABLE>
The information furnished reflects all adjustments that 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>
October 4, December 31,
1997 1996
-------------- ----------
Assets (Unaudited) (Audited)
- ------ -------------- ----------
<S> <C> <C>
Current assets:
Cash and short-term investments................. $ 284,153,129 $ 104,400,585
Accounts receivable............................. 376,175,329 292,637,918
Inventories..................................... 379,694,146 385,798,890
Other current assets............................ 48,189,749 45,543,192
-------------- --------------
Total current assets.......................... 1,088,212,353 828,380,585
-------------- --------------
Property, plant and equipment..................... 1,838,588,837 1,791,152,821
-------------- --------------
Total assets.................................. $2,926,801,190 $2,619,533,406
============== ==============
Liabilities and stockholders' equity
- ------------------------------------
Current liabilities:
Long-term debt due within one year.............. $ 250,000 $ 750,000
Accounts payable................................ 246,366,267 224,369,943
Salaries, wages and related accruals............ 136,141,095 101,712,186
Federal income taxes............................ 12,907,650 10,285,829
Accrued expenses and other current liabilities.. 175,667,819 128,534,797
-------------- --------------
Total current liabilities..................... 571,332,831 465,652,755
-------------- --------------
Long-term debt due after one year................. 167,950,000 152,600,000
-------------- --------------
Deferred credits and other liabilities............ 124,284,101 126,284,101
-------------- --------------
Minority interests................................ 259,075,398 265,706,357
-------------- --------------
Stockholders' equity:
Common stock.................................... 35,994,457 35,950,914
Additional paid-in capital...................... 58,216,006 55,047,610
Retained earnings............................... 1,727,575,707 1,535,948,490
-------------- --------------
1,821,786,170 1,626,947,014
Treasury stock.................................. (17,627,310) (17,656,821)
-------------- --------------
1,804,158,860 1,609,290,193
-------------- --------------
Total liabilities and stockholders' equity.... $2,926,801,190 $2,619,533,406
============== ==============
</TABLE>
Inventories consisted of approximately 60% raw materials and supplies, and 40%
finished and semi-finished products, at October 4, 1997 (60% and 40% at December
31, 1996).
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
----------------------------
Oct. 4, 1997 Sep. 28, 1996
------------- --------------
(Unaudited) (Unaudited)
------------- --------------
<S> <C> <C>
Operating activities:
Net earnings............................................ $217,990,730 $165,713,660
Adjustments:
Depreciation of plant and equipment................... 159,434,445 130,530,677
Minority interests.................................... 63,907,106 55,924,415
Changes in:
Current assets...................................... (80,079,224) (62,645,793)
Current liabilities................................. 106,180,076 48,034,195
Other............................................... 15,018,852 5,942,597
------------ ------------
Cash provided by operating activities................. 482,451,985 343,499,751
------------ ------------
Investing activities:
Capital expenditures (net).............................. (223,889,313) (394,566,900)
------------ ------------
Cash used in investing activities..................... (223,889,313) (394,566,900)
------------ ------------
Financing activities:
Increase in long-term debt.............................. 14,850,000 24,850,000
Contributions for (distributions to) minority interests. (70,538,065) (31,787,040)
Issuance of common stock................................ 3,241,450 2,778,739
Cash dividends.......................................... (26,363,513) (21,046,435)
------------ ------------
Cash used in financing activities..................... (78,810,128) (25,204,736)
------------ ------------
Increase (decrease) in cash and short-term investments.... $179,752,544 $(76,271,885)
============ ============
</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 close to 20% from the third quarter of 1996 to the third
quarter of 1997, with nearly all of the net sales increase resulting from an
increase in sales volume. Net sales increased close to 15% from the first nine
months of 1996 to the first nine months of 1997, primarily as a result of an
increase in sales volume. Average sales prices were unchanged from the third
quarter of 1996 to the third quarter of 1997, and were substantially the same
from the first nine months of 1996 to the first nine months of 1997.
The major component of cost of products sold is raw material costs. The
average price of raw materials decreased less than 5%, both in the third quarter
of 1997 compared with the third quarter of 1996, and in the first nine months of
1997 compared with the first nine months of 1996.
Major components of marketing, administrative and other expenses are freight
and profit sharing costs. Unit freight costs decreased close to 5% from the
third quarter of 1996 to the third quarter of 1997, and decreased less than 5%
from the first nine months of 1996 to the first nine months of 1997. Profit
sharing costs increased close to 45% from the third quarter of 1996 to the third
quarter of 1997, and increased about 40% from the first nine months of 1996 to
the first nine months of 1997. Profit sharing costs are based upon and fluctuate
in relation to pre-tax earnings.
Interest income, net of interest expense, increased for the third quarter of
1997 from the third quarter of 1996, due primarily to increased earnings from
short-term investments. Interest expense, net of interest income, increased from
the first nine months of 1996 to the first nine months of 1997, as a result of
increased average debt and 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 1997, and for the third quarter and first nine months of
1996.
Net earnings increased during the third quarter and first nine months of
1997, compared with the third quarter and first nine months of 1996, due to
increased volume, increased margins and decreased pre-operating and start-up
costs of new facilities.
Margins were about 15% for the third quarter of 1997 and about 14% for the
first nine months of 1997, compared with about 13% for both the third quarter
and first nine months of 1996.
Liquidity and capital resources
- -------------------------------
The current ratio was about 1.9 at the end of the first nine months of 1997,
and about 1.8 at year-end 1996. The percentage of long-term debt to total
capital was about 7.5%, both at the end of the first nine months of 1997 and at
year-end 1996.
Capital expenditures decreased close to 45% during the first nine months of
1997 compared with the first nine months of 1996. Capital expenditures are
projected to be more than $250 million for all of 1997. Funds provided from
operations, existing credit facilities and new borrowings are expected to be
more than 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
----------------------------- ------------------------------
Oct. 4, 1997 Sept. 28, 1996 Oct. 4, 1997 Sep. 28, 1996
------------ --------------- ------------- -------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------ --------------- ------------- -------------
<S> <C> <C> <C> <C>
Primary:
Primary net earnings........ $217,990,730 $165,713,660 $79,984,324 $57,887,023
============ ============ =========== ===========
Average shares outstanding
(excludes dilutive effect
of employee stock options
because less than 3%).... 87,860,682 87,673,653 87,894,245 87,703,051
========== ========== ========== ==========
Primary
net earnings per share... $2.4811 $1.8901 $.9100 $.6600
======= ======= ====== ======
Fully diluted:
Fully diluted net earnings.. $217,990,730 $165,713,660 $79,984,324 $57,887,023
============ ============ =========== ===========
Fully diluted
average shares outstanding:
Primary shares outstanding 87,860,682 87,673,653 87,894,245 87,703,051
Dilutive effect of
employee stock options. 62,536 107,337 76,931 71,533
---------- ---------- ---------- ----------
87,923,218 87,780,990 87,971,176 87,774,584
========== ========== ========== ==========
Fully diluted
net earnings per share... $2.4793 $1.8878 $.9092 $.6596
======= ======= ====== ======
</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: /s/ SAMUEL SIEGEL
Samuel Siegel
Vice Chairman,
Dated: November 10, 1997 Chief Financial Officer
- 6 -
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> OCT-04-1997
<CASH> 284,153,129
<SECURITIES> 0
<RECEIVABLES> 396,279,342
<ALLOWANCES> 20,104,013
<INVENTORY> 379,694,146
<CURRENT-ASSETS> 1,088,212,353
<PP&E> 2,905,375,780
<DEPRECIATION> 1,066,786,943
<TOTAL-ASSETS> 2,926,801,190
<CURRENT-LIABILITIES> 571,332,831
<BONDS> 167,950,000
<COMMON> 35,994,457
0
0
<OTHER-SE> 1,785,791,713
<TOTAL-LIABILITY-AND-EQUITY> 2,926,801,190
<SALES> 3,147,201,389
<TOTAL-REVENUES> 3,147,201,389
<CGS> 2,692,579,797
<TOTAL-COSTS> 2,692,579,797
<OTHER-EXPENSES> 112,776,041
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,254,821
<INCOME-PRETAX> 340,590,730
<INCOME-TAX> 122,600,000
<INCOME-CONTINUING> 217,990,730
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 217,990,730
<EPS-PRIMARY> 2.48
<EPS-DILUTED> 2.48
</TABLE>
