FIRST
QUARTER
1999
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 3, 1999 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 [ ]
87,261,331 SHARES OF COMMON STOCK WERE OUTSTANDING AT APRIL 3, 1999.
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PART I - FINANCIAL INFORMATION
NUCOR CORPORATION - CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
THREE MONTHS (13 WEEKS) ENDED
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APRIL 3, 1999 APRIL 4, 1998
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(UNAUDITED) (UNAUDITED)
NET SALES....................................... $893,822,996 $1,138,862,155
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COSTS AND EXPENSES:
COST OF PRODUCTS SOLD......................... 818,906,709 999,505,973
MARKETING, ADMINISTRATIVE AND OTHER EXPENSES.. 31,386,532 38,867,752
INTEREST EXPENSE (INCOME)..................... (443,637) (1,349,083)
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849,849,604 1,037,024,642
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EARNINGS BEFORE FEDERAL INCOME TAXES............ 43,973,392 101,837,513
FEDERAL INCOME TAXES.......................... 15,800,000 36,700,000
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NET EARNINGS................................ $ 28,173,392 $ 65,137,513
============ ==============
NET EARNINGS PER SHARE.......................... $.32 $.74
==== ====
DIVIDENDS DECLARED PER SHARE.................. $.13 $.12
==== ====
AVERAGE NUMBER OF SHARES OUTSTANDING........ 87,309,502 88,020,407
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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NUCOR CORPORATION - CONSOLIDATED CONDENSED BALANCE SHEETS
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APRIL 3, DECEMBER 31,
1999 1998
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ASSETS (UNAUDITED) (AUDITED)
CURRENT ASSETS:
CASH AND SHORT-TERM INVESTMENTS................. $ 458,510,964 $ 308,696,460
ACCOUNTS RECEIVABLE............................. 293,110,179 299,244,794
INVENTORIES..................................... 421,881,895 435,884,838
OTHER CURRENT ASSETS............................ 88,403,207 85,641,291
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TOTAL CURRENT ASSETS.......................... 1,261,906,245 1,129,467,383
-------------- --------------
PROPERTY, PLANT AND EQUIPMENT..................... 2,081,053,516 2,097,078,473
-------------- --------------
TOTAL ASSETS.................................. $3,342,959,761 $3,226,545,856
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
ACCOUNTS PAYABLE................................ $ 199,804,497 $ 198,329,771
SALARIES, WAGES AND RELATED ACCRUALS............ 74,808,617 113,619,322
FEDERAL INCOME TAXES............................ 17,873,348 26,090,271
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES.. 160,806,499 148,857,793
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TOTAL CURRENT LIABILITIES..................... 453,292,961 486,897,157
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LONG-TERM DEBT DUE AFTER ONE YEAR................. 390,450,000 215,450,000
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DEFERRED CREDITS AND OTHER LIABILITIES............ 168,250,449 169,250,449
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MINORITY INTERESTS................................ 245,642,300 282,396,469
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STOCKHOLDERS' EQUITY:
COMMON STOCK.................................... 36,020,714 36,020,714
ADDITIONAL PAID-IN CAPITAL...................... 67,341,161 67,252,936
RETAINED EARNINGS............................... 2,033,685,588 2,016,856,168
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2,137,047,463 2,120,129,818
TREASURY STOCK.................................. (51,723,412) (47,578,037)
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2,085,324,051 2,072,551,781
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY.... $3,342,959,761 $3,226,545,856
============== ==============
</TABLE>
INVENTORIES CONSISTED OF APPROXIMATELY 45% RAW MATERIALS AND SUPPLIES, AND 55%
FINISHED AND SEMI-FINISHED PRODUCTS, AT APRIL 3, 1999 (50% AND 50% AT DECEMBER
31, 1998). INVENTORIES VALUED ON THE LAST-IN, FIRST-OUT (LIFO) METHOD OF
ACCOUNTING REPRESENT APPROXIMATELY 85% OF TOTAL INVENTORIES AS OF APRIL 3, 1999
AND AS OF DECEMBER 31, 1998. IF THE FIRST-IN, FIRST-OUT METHOD (FIFO) OF
ACCOUNTING HAD BEEN USED, INVENTORIES WOULD HAVE BEEN $13,420,960 HIGHER AT
APRIL 3, 1999 ($5,120,960 AT DECEMBER 31, 1998).
THE INFORMATION FURNISHED HAS NOT BEEN AUDITED AND IS SUBJECT TO YEAR-END
ADJUSTMENTS.
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NUCOR CORPORATION - CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
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THREE MONTHS (13 WEEKS) ENDED
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APRIL 3, 1999 APRIL 4, 1998
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(UNAUDITED) (UNAUDITED)
OPERATING ACTIVITIES:
NET EARNINGS ....................................... $ 28,173,392 $ 65,137,513
ADJUSTMENTS:
DEPRECIATION OF PLANT AND EQUIPMENT .............. 61,661,474 58,943,255
MINORITY INTERESTS ............................... 14,866,351 23,301,515
CHANGES IN:
CURRENT ASSETS ................................. 17,375,642 (16,773,637)
CURRENT LIABILITIES ............................ (33,604,196) 2,850,919
OTHER .......................................... (1,014,433) 2,007,769
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CASH PROVIDED BY OPERATING ACTIVITIES ............ 87,458,230 135,467,334
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INVESTING ACTIVITIES:
CAPITAL EXPENDITURES (NET) ......................... (45,622,084) (91,344,604)
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CASH USED IN INVESTING ACTIVITIES ................ (45,622,084) (91,344,604)
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FINANCING ACTIVITIES:
INCREASE (DECREASE) IN LONG-TERM DEBT .............. 175,000,000 (250,000)
DISTRIBUTIONS TO MINORITY INTERESTS ................ (51,620,520) (49,901,360)
ISSUANCE OF COMMON STOCK ........................... 150,895 2,550,674
ACQUISITION OF TREASURY STOCK ...................... (4,208,045) --
CASH DIVIDENDS ..................................... (11,343,972) (10,566,505)
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CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES .. 107,978,358 (58,167,191)
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INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS $ 149,814,504 $ (14,044,461)
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</TABLE>
THE INFORMATION FURNISHED HAS NOT BEEN AUDITED AND IS SUBJECT TO YEAR-END
ADJUSTMENTS.
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NUCOR CORPORATION - ANALYSIS OF OPERATIONS AND FINANCES
OPERATIONS
Net sales decreased by more than 20% from the first quarter of 1998 to the
first quarter of 1999, with about half of the net sales decrease resulting from
a decrease in sales volume and about half resulting from a decrease in average
sales prices.
The major component of cost of products sold is raw material costs. The
average price of raw materials decreased more than 25% from the first quarter of
1998.
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 1998, and profit sharing costs decreased by more than 60% compared
with the 1998 first quarter. Profit sharing costs are based upon and generally
fluctuate with pre-tax earnings.
Interest income, net of interest expense, decreased for the first quarter of
1999 from the first quarter of 1998, primarily due to increased debt.
Federal income taxes were at a rate of about 36% for the first quarter of
1999 and 1998.
Net earnings decreased approximately 55% during the first quarter of 1999,
compared with the first quarter of 1998, due to decreased margins, decreased
sales volume and increased pre-operating and start-up costs.
Margins were about 8% for the first quarter of 1999 and about 12% for the
first quarter of 1998.
LIQUIDITY AND CAPITAL RESOURCES
The current ratio was about 2.8 At the end of the 1999 first quarter, and
about 2.3 At year-end 1998. The percentage of long-term debt to total capital
was about 14% at the end of the first quarter of 1999, and about 8% at year-end
1998.
Capital expenditures decreased close to 50% during the first quarter of 1999
compared with the first quarter of 1998. Capital expenditures are projected to
be in the range of $450 million for all of 1999. 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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YEAR 2000 (Y2K)
Nucor has implemented a readiness program designed to have all significant
business and manufacturing systems functioning properly with respect to the Y2K
issue. Affected systems are being replaced or remediated, with testing performed
concurrently. Nucor anticipates that most mission-critical systems will be
remediated and tested by July 1999, with the remainder to be completed by the
end of 1999. Nucor is also reviewing the progress of significant vendors and
customers in addressing this issue. Failure by Nucor or its vendors and
customers to make material corrections could result, in some circumstances, in
an interruption of normal business operations.
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
THREE MONTHS (13 WEEKS) ENDED
-----------------------------
APRIL 3, 1999 APRIL 4, 1998
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(UNAUDITED) (UNAUDITED)
BASIC:
BASIC NET EARNINGS............................... $28,173,392 $65,137,513
=========== ===========
AVERAGE SHARES OUTSTANDING....................... 87,309,502 88,020,407
=========== ===========
BASIC NET EARNINGS PER SHARE..................... $.32 $.74
==== ====
DILUTED:
DILUTED NET EARNINGS............................. $28,173,392 $65,137,513
=========== ===========
DILUTED AVERAGE SHARES OUTSTANDING:
BASIC SHARES OUTSTANDING....................... 87,309,502 88,020,407
DILUTIVE EFFECT OF EMPLOYEE STOCK OPTIONS...... 22,144 16,146
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87,331,646 88,036,553
========== ==========
DILUTED NET EARNINGS PER SHARE................... $.32 $.74
==== ====
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
accounting officer.
NUCOR CORPORATION
BY:
-------------------------------
TERRY S. LISENBY
VICE PRESIDENT,
DATED: MAY 12, 1999 CORPORATE CONTROLLER
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> APR-03-1999
<CASH> 458,510,964
<SECURITIES> 0
<RECEIVABLES> 293,110,179
<ALLOWANCES> 16,943,877
<INVENTORY> 421,881,895
<CURRENT-ASSETS> 1,261,906,245
<PP&E> 3,443,404,884
<DEPRECIATION> 1,362,351,368
<TOTAL-ASSETS> 3,342,959,761
<CURRENT-LIABILITIES> 453,292,961
<BONDS> 390,450,000
0
0
<COMMON> 36,020,714
<OTHER-SE> 2,049,303,337
<TOTAL-LIABILITY-AND-EQUITY> 3,342,959,761
<SALES> 893,822,996
<TOTAL-REVENUES> 893,822,996
<CGS> 818,906,709
<TOTAL-COSTS> 818,906,709
<OTHER-EXPENSES> 31,386,532
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (443,637)
<INCOME-PRETAX> 43,973,392
<INCOME-TAX> 15,800,000
<INCOME-CONTINUING> 28,173,392
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 28,173,392
<EPS-PRIMARY> .32
<EPS-DILUTED> .32
</TABLE>
