FIRST
QUARTER
1998
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 April 4, 1998 Commission file number 1-4119
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NUCOR CORPORATION
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(Exact name as specified in charter)
Delaware 13-1860817
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(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
2100 Rexford Road, Charlotte, North Carolina 28211
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(Address of principal executive offices) (Zip code)
Telephone number, including area code: (704) 366-7000
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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 [ ]
88,054,216 shares of common stock were outstanding at April 4, 1998.
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<PAGE>
PART I - FINANCIAL INFORMATION
Nucor Corporation - Consolidated Condensed Statements of Earnings
<TABLE>
<CAPTION>
Three Months (13 Weeks) Ended
April 4, 1998 April 5, 1997
(Unaudited) (Unaudited)
<S> <C> <C>
Net sales........................................ $1,138,862,155 $1,010,489,815
-------------- --------------
Costs and expenses:
Cost of products sold.......................... 999,505,973 874,089,671
Marketing, administrative and other expenses... 38,867,752 34,142,567
Interest expense (income)...................... (1,349,083) 646,063
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1,037,024,642 908,878,301
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Earnings before federal income taxes............. 101,837,513 101,611,514
Federal income taxes........................... 36,700,000 36,600,000
-------------- --------------
Net earnings................................. $ 65,137,513 $ 65,011,514
============== ==============
Net earnings per share........................... $.74 $.74
==== ====
Dividends declared per share................... $.12 $.10
==== ====
Average number of shares outstanding......... 88,020,407 87,828,041
</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>
Nucor Corporation - Consolidated Condensed Balance Sheets
<TABLE>
<CAPTION>
April 4, December 31,
1998 1997
Assets (Unaudited) (Audited)
- ------ ----------- ---------
Current assets:
<S> <C> <C>
Cash and short-term investments................. $ 269,336,676 $ 283,381,137
Accounts receivable............................. 388,018,674 386,352,612
Inventories..................................... 409,160,382 397,048,379
Other current assets............................ 61,721,908 58,726,336
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Total current assets.......................... 1,128,237,640 1,125,508,464
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Property, plant and equipment..................... 1,891,268,474 1,858,874,894
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Total assets.................................. $3,019,506,114 $2,984,383,358
============== ==============
Liabilities and stockholders' equity
Current liabilities:
Long-term debt due within one year.............. $ -- $ 250,000
Accounts payable................................ 252,184,465 260,268,115
Salaries, wages and related accruals............ 82,874,773 110,730,654
Federal income taxes............................ 46,529,769 9,988,843
Accrued expenses and other current liabilities.. 145,465,522 143,215,998
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Total current liabilities..................... 527,054,529 524,453,610
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Long-term debt due after one year................. 167,950,000 167,950,000
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Deferred credits and other liabilities............ 141,361,449 139,361,449
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Minority interests................................ 249,592,588 276,192,433
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Stockholders' equity:
Common stock.................................... 36,016,362 35,994,843
Additional paid-in capital...................... 64,537,922 62,041,288
Retained earnings............................... 1,849,847,461 1,795,276,453
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1,950,401,745 1,893,312,584
Treasury stock.................................. (16,854,197) (16,886,718)
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1,933,547,548 1,876,425,866
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Total liabilities and stockholders' equity.... $3,019,506,114 $2,984,383,358
============== ==============
</TABLE>
Inventories consisted of approximately 60% raw materials and supplies, and 40%
finished and semi-finished products, at April 4, 1998 (60% and 40% at December
31, 1997).
The information furnished has not been audited and is subject to year-end
adjustments.
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<PAGE>
Nucor Corporation - Consolidated Condensed Statements of Cash Flows
<TABLE>
<CAPTION>
Three Months (13 Weeks) Ended
-----------------------------
April 4, 1998 April 5, 1997
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(Unaudited) (Unaudited)
----------- -----------
Operating activities:
<S> <C> <C>
Net earnings............................................ $ 65,137,513 $ 65,011,514
Adjustments:
Depreciation of plant and equipment................... 58,943,255 53,039,870
Minority interests.................................... 23,301,515 22,516,138
Changes in:
Current assets...................................... (16,773,637) (68,744,490)
Current liabilities................................. 2,850,919 25,751,655
Other............................................... 2,007,769 1,737,922
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Cash provided by operating activities................. 135,467,334 99,312,609
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Investing activities:
Capital expenditures (net).............................. (91,344,604) (63,514,082)
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Cash used in investing activities..................... (91,344,604) (63,514,082)
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Financing activities:
Increase (decrease) in long-term debt................... (250,000) 34,850,000
Contributions for (distributions to) minority interests. (49,901,360) 706,000
Issuance of common stock................................ 2,550,674 1,431,952
Cash dividends.......................................... (10,566,505) (8,785,202)
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Cash provided by (used in) financing activities....... (58,167,191) 28,202,750
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Increase (decrease) in cash and short-term investments.... $ (14,044,461) $ 64,001,277
============= =============
</TABLE>
The information furnished has not been audited and is subject to year-end
adjustments.
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<PAGE>
Nucor Corporation - Analysis of Operations and Finances
Operations
Net sales increased by more than 10% from the first quarter of 1997 to the
first quarter of 1998, with substantially all of the net sales increase
resulting from an increase in sales volume. Average sales prices decreased
slightly from the first quarter of 1997 to the first quarter of 1998.
The major component of cost of products sold is raw material costs. The
average price of raw materials increased more than 5% from the first quarter of
1997.
Major components of marketing, administrative and other expenses are freight
and profit sharing costs. Unit freight costs decreased about 1% from the first
quarter of 1997, and profit sharing costs increased about 2% compared with the
1997 first quarter. Profit sharing costs are based upon and generally fluctuate
with pre-tax earnings.
Interest income, net of interest expense, increased for the first quarter of
1998 from the first quarter of 1997, due to increased earnings from short-term
investments.
Federal income taxes were at a rate of about 36% for the first quarter of
1998 and for the first quarter of 1997.
Net earnings were substantially the same from the first quarter of 1997 to
the first quarter of 1998.
Margins were about 12% for the first quarter of 1998 and about 13% for the
first quarter of 1997.
Liquidity and capital resources
The current ratio was about 2.1 at the end of the 1998 first quarter, and
also at year-end 1997. The percentage of long-term debt to total capital was
about 7% at the end of the first quarter of 1998, and also at year-end 1997.
Capital expenditures increased close to 45% during the first quarter of 1998
compared with the first quarter of 1997. Capital expenditures are projected to
be in the range of $400 million for all of 1998. 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.
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<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>
Three Months (13 Weeks) Ended
-----------------------------
April 4, 1998 April 5, 1997
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(Unaudited) (Unaudited)
----------- -----------
Basic:
<S> <C> <C>
Basic net earnings................................. $65,137,513 $65,011,514
=========== ===========
Average shares outstanding......................... 88,020,407 87,828,041
========== ==========
Basic net earnings per share....................... $.7400 $.7402
====== ======
Diluted:
Diluted net earnings............................... $65,137,513 $65,011,514
=========== ===========
Diluted average shares outstanding:
Basic shares outstanding......................... 88,020,407 87,828,041
Dilutive effect of employee stock options........ 16,146 50,811
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88,036,553 87,878,852
========== ==========
Diluted net earnings per share..................... $.7399 $.7398
====== ======
</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: May 12, 1998 Chief Financial Officer
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> APR-04-1998
<CASH> 269,336,676
<SECURITIES> 0
<RECEIVABLES> 388,018,674
<ALLOWANCES> 20,589,623
<INVENTORY> 409,160,382
<CURRENT-ASSETS> 1,128,237,640
<PP&E> 3,047,915,042
<DEPRECIATION> 1,156,646,568
<TOTAL-ASSETS> 3,019,506,114
<CURRENT-LIABILITIES> 527,054,529
<BONDS> 167,950,000
0
0
<COMMON> 36,016,362
<OTHER-SE> 1,897,531,186
<TOTAL-LIABILITY-AND-EQUITY> 3,019,506,114
<SALES> 1,138,862,155
<TOTAL-REVENUES> 1,138,862,155
<CGS> 999,505,973
<TOTAL-COSTS> 999,505,973
<OTHER-EXPENSES> 38,867,752
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (1,349,083)
<INCOME-PRETAX> 101,837,513
<INCOME-TAX> 36,700,000
<INCOME-CONTINUING> 65,137,513
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 65,137,513
<EPS-PRIMARY> 0.74
<EPS-DILUTED> 0.74
</TABLE>
