SECOND
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 July 5, 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
87,861,195 shares of common stock were outstanding at July 5, 1997.
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<PAGE>
PART I - FINANCIAL INFORMATION
Consolidated Condensed Statements of Earnings
<TABLE>
<CAPTION>
Six Months (26 Weeks) Ended Three Months (13 Weeks) Ended
July 5, 1997 June 29, 1996 July 5, 1997 June 29, 1996
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Net sales................... $2,045,580,423 $1,787,210,340 $1,035,090,608 $911,097,297
Costs and expenses:
Cost of products sold..... 1,756,330,304 1,559,944,742 882,240,633 793,335,197
Marketing, administrative
and other expenses...... 72,234,227 60,892,879 38,091,660 31,911,959
Interest expense (income). 1,409,486 (853,918) 763,423 107,311
-------------- -------------- ------------- ------------
1,829,974,017 1,619,983,703 921,095,716 825,354,467
-------------- -------------- ------------- ------------
Earnings before
federal income taxes...... 215,606,406 167,226,637 113,994,892 85,742,830
Federal income taxes...... 77,600,000 59,400,000 41,000,000 30,500,000
-------------- -------------- ------------- ------------
Net earnings............ $ 138,006,406 $ 107,826,637 $ 72,994,892 $ 55,242,830
============== ============== ============= ============
Net earnings per share...... $1.57 $1.23 $.83 $.63
===== ===== ==== ====
Dividends declared
per share............... $.20 $.16 $.10 $.08
==== ==== ==== ====
Average number of
Shares outstanding.... 87,844,262 87,658,873 87,861,195 87,681,944
</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>
July 5, December 31,
1997 1996
-------------- ----------
Assets (Unaudited) (Audited)
<S> <C> <C>
Current assets:
Cash and short-term investments................. $ 145,254,993 $ 104,400,585 Accounts
receivable.................................... 360,230,510 292,637,918
Inventories..................................... 396,752,382 385,798,890
Other current assets............................ 47,508,095 45,543,192
-------------- --------------
Total current assets.......................... 949,745,980 828,380,585
-------------- --------------
Property, plant and equipment..................... 1,832,823,714 1,791,152,821
-------------- --------------
Total assets.................................. $2,782,569,694 $2,619,533,406
============== ==============
Liabilities and stockholders' equity
Current liabilities:
Long-term debt due within one year.............. $ 850,000 $ 750,000
Accounts payable................................ 249,099,545 224,369,943
Salaries, wages and related accruals............ 106,538,992 101,712,186
Federal income taxes............................ 7,702,629 10,285,829
Accrued expenses and other current liabilities.. 153,083,562 128,534,797
-------------- --------------
Total current liabilities..................... 517,274,728 465,652,755
-------------- --------------
Long-term debt due after one year................. 167,350,000 152,600,000
-------------- --------------
Deferred credits and other liabilities............ 124,284,101 126,284,101
-------------- --------------
Minority interests................................ 241,638,265 265,706,357
-------------- --------------
Stockholders' equity:
Common stock.................................... 35,981,479 35,950,914
Additional paid-in capital...................... 57,300,805 55,047,610
Retained earnings............................... 1,656,382,212 1,535,948,490
-------------- --------------
1,749,664,496 1,626,947,014
Treasury stock.................................. (17,641,896) (17,656,821)
-------------- --------------
1,732,022,600 1,609,290,193
Total liabilities and stockholders' equity.... $2,782,569,694 $2,619,533,406
============== ==============
</TABLE>
Inventories consisted of approximately 55% raw materials and supplies, and 45%
finished and semi-finished products, at July 5, 1997 (60% and 40% at December
31, 1996).
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>
Six Months (26 Weeks) Ended
July 5, 1997 June 29, 1996
(Unaudited) (Unaudited)
<S> <C> <C>
Operating activities:
Net earnings............................................ $138,006,406 $ 107,826,637
Adjustments:
Depreciation of plant and equipment................... 105,273,959 84,880,786
Minority interests.................................... 41,406,373 37,846,341
Changes in:
Current assets...................................... (80,510,987) (37,530,305)
Current liabilities................................. 51,521,973 4,221,152
Other............................................... 3,013,727 9,960,902
----------- ------------
Cash provided by operating activities................. 258,711,451 207,205,513
----------- ------------
Investing activities:
Capital expenditures (net).............................. (151,958,579) (243,026,372)
----------- ------------
Cash used in investing activities..................... (151,958,579) (243,026,372)
----------- ------------
Financing activities:
Increase in long-term debt.............................. 14,850,000 24,850,000
Contributions for (distributions to) minority interests. (65,474,465) (26,659,920)
Issuance of common stock................................ 2,298,685 2,009,299
Cash dividends.......................................... (17,572,684) (14,029,049)
----------- ------------
Cash used in financing activities..................... (65,898,464) (13,829,670)
----------- ------------
Increase (decrease) in cash and short-term investments.... $40,854,408 $(49,650,529)
=========== ============
</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 14% from both the second quarter of 1996 to the
second quarter of 1997, and from the first half of 1996 to the first half of
1997. Substantially all of the net sales increase resulted from an increase in
sales volume. Average sales prices were unchanged from the second quarter of
1996 to the second quarter of 1997, and increased about 1% from the first half
of 1996 to the first half of 1997.
The major component of cost of products sold is raw material costs. The
average price of raw materials decreased about 5% in both the second quarter of
1997 compared with the second quarter of 1996, and the first half of 1997
compared with the first half of 1996.
Major components of marketing, administrative and other expenses are freight
and profit sharing costs. Unit freight costs increased about 1% from the second
quarter of 1996 to the second quarter of 1997, and increased less than 1% from
the first half of 1996 to the first half of 1997. Profit sharing costs increased
about 45% from the second quarter of 1996 to the second quarter of 1997, and
increased about 35% from the first half of 1996 to the first half of 1997.
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 1997 from the
second quarter and first half of 1996, due primarily to increased average debt.
Federal income taxes were at a rate of about 36% for the second quarter and
first half of 1997, and the second quarter and first half of 1996.
Net earnings increased during the second quarter and first half of 1997,
compared with the second quarter and first half of 1996, due to increased volume
and increased margins.
Margins were about 14.8% for the second quarter of 1997 and about 14% for
the first half of 1997, compared with about 13% for the second quarter of 1996
and about 12.7% for the first half of 1996.
Liquidity and capital resources
The current ratio was about 1.8 at the end of both the first half of 1997,
and at year-end 1996. The percentage of long-term debt to total capital was
about 8% at the end of the first half of 1997, and about 7.5% at year-end 1996.
Capital expenditures decreased about 35% during the first half of 1997,
compared with the first half 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 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
Item 4 - Submission of Matters to a Vote of Security Holders
At the annual meeting of stockholders held on May 8, 1997, two directors
were elected for terms of three years expiring in 2000; 71,652,465 shares were
voted for H. David Aycock (873,092 abstained), and 71,656,708 shares were voted
for Samuel Siegel (868,849 abstained).
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
<TABLE>
<CAPTION>
Six Months (26 Weeks) Ended Three months (13 Weeks) Ended
July 5, 1997 June 29, 1996 July 5, 1997 June 29 1996
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Primary:
<S> <C> <C> <C> <C>
Primary net earnings........ $138,006,406 $ 107,826,637 $72,994,892 $55,242,830
============ ============= =========== ===========
Average shares outstanding
(excludes dilutive effect
of employee stock options
because less than 3%).... 87,844,262 87,658,873 87,861,195 87,681,944
========== ========== ========== ==========
Primary
Net earnings per share... $1.5710 $1.2301 $.8308 $.6300
======= ======= ====== ======
Fully diluted:
Fully diluted net earnings.. $138,006,406 $107,826,637 $72,994,892 $55,242,830
============ ============ =========== ===========
Fully diluted
average shares outstanding:
Primary shares outstanding 87,844,262 87,658,873 87,861,195 87,681,944
Dilutive effect of
employee stock options. 55,492 125,338 62,389 104,411
------------ ------------ ------------ ------------
87,899,754 87,784,211 87,923,584 87,786,355
============ ============ ============ ============
Fully diluted
Net earnings per share... $1.5700 $1.2283 $.8302 $.6293
======= ======= ====== ======
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: August 11, 1997 Chief Financial Officer
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<PAGE>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUL-05-1997
<CASH> 145,254,993
<SECURITIES> 0
<RECEIVABLES> 381,291,721
<ALLOWANCES> 21,061,211
<INVENTORY> 396,752,382
<CURRENT-ASSETS> 949,745,980
<PP&E> 2,845,544,874
<DEPRECIATION> 1,012,721,160
<TOTAL-ASSETS> 2,782,569,694
<CURRENT-LIABILITIES> 517,274,728
<BONDS> 167,350,000
<COMMON> 35,981,479
0
0
<OTHER-SE> 1,713,683,017
<TOTAL-LIABILITY-AND-EQUITY> 2,782,569,694
<SALES> 2,045,580,423
<TOTAL-REVENUES> 2,045,580,423
<CGS> 1,756,330,304
<TOTAL-COSTS> 1,756,330,304
<OTHER-EXPENSES> 72,234,227
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,409,486
<INCOME-PRETAX> 215,606,406
<INCOME-TAX> 77,600,000
<INCOME-CONTINUING> 138,006,406
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 138,006,406
<EPS-PRIMARY> 1.57
<EPS-DILUTED> 1.57
</TABLE>
