SECOND
QUARTER
2000
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 1, 2000 Commission file number 1-4119
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NUCOR CORPORATION
(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
-- --
81,136,631 shares of common stock were outstanding at July 1, 2000.
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PART I - FINANCIAL INFORMATION
Nucor Corporation - Consolidated Condensed Statements of Earnings
<TABLE>
<CAPTION>
Six Months (26 Weeks) Ended Three Months (13 Weeks) Ended
----------------------------- -----------------------------
July 1, 2000 July 3, 1999 July 1, 2000 July 3, 1999
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(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Net sales................... $2,413,580,080 $1,890,989,319 $1,213,945,302 $ 997,166,323
-------------- -------------- -------------- --------------
Costs and expenses:
Cost of products sold..... 2,068,820,925 1,703,276,078 1,037,070,924 884,369,369
Marketing, administrative
and other expenses...... 93,507,925 65,052,020 49,192,519 33,665,488
Interest expense (income). (1,842,308) (459,384) 878,166 (15,747)
-------------- -------------- -------------- --------------
2,160,486,542 1,767,868,714 1,087,141,609 918,019,110
-------------- -------------- -------------- --------------
Earnings before
federal income taxes...... 253,093,538 123,120,605 126,803,693 79,147,213
Federal income taxes...... 89,800,000 44,300,000 45,000,000 28,500,000
-------------- -------------- -------------- --------------
Net earnings............ $ 163,293,538 $ 78,820,605 $ 81,803,693 $ 50,647,213
============== ============== ============== ==============
Net earnings per share...... $1.92 $.90 $.98 $.58
===== ==== ==== ====
Dividends declared
per share............... $.30 $.26 $.15 $.13
==== ==== ==== ====
Average number of
shares outstanding.. 84,871,429 87,298,950 83,152,589 87,288,165
</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>
July 1, December 31,
2000 1999
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Assets (Unaudited) (Audited)
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<S> <C> <C>
Current assets:
Cash and short-term investments................. $ 311,734,528 $ 572,185,451
Accounts receivable............................. 426,523,598 393,763,651
Inventories..................................... 500,165,981 464,983,651
Other current assets............................ 100,342,551 107,575,758
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Total current assets.......................... 1,338,766,658 1,538,508,511
Property, plant and equipment..................... 2,293,762,738 2,191,339,477
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Total assets.................................. $3,632,529,396 $3,729,847,988
============== ==============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable................................ $ 262,311,208 $ 255,229,202
Federal income taxes............................ 1,138,011 2,455,851
Salaries, wages and related accruals............ 127,374,616 116,749,067
Accrued expenses and other current liabilities.. 190,307,095 156,596,778
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Total current liabilities..................... 581,130,930 531,030,898
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Long-term debt due after one year................. 390,450,000 390,450,000
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Deferred credits and other liabilities............ 255,506,385 265,247,949
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Minority interests................................ 268,135,630 280,871,235
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Stockholders' equity:
Common stock.................................... 36,044,855 36,041,007
Additional paid-in capital...................... 71,173,047 70,906,567
Retained earnings............................... 2,354,394,810 2,216,091,023
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2,461,612,712 2,323,038,597
Treasury stock.................................. (324,306,261) (60,790,691)
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2,137,306,451 2,262,247,906
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Total liabilities and stockholders' equity.... $3,632,529,396 $3,729,847,988
============== ==============
</TABLE>
Inventories consisted of approximately 50% raw materials and supplies, and 50%
finished and semi-finished products, at July 1, 2000 and December 31, 1999.
Inventories valued on the last-in, first-out (LIFO) method of accounting
represent approximately 85% of total inventories as of July 1, 2000 and as of
December 31, 1999. If the first-in, first-out method (FIFO) of accounting had
been used, inventories would have been $46,490,595 higher at July 1, 2000
($28,590,595 at December 31, 1999).
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>
Six Months (26 Weeks) Ended
-----------------------------
July 1, 2000 July 3, 1999
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(Unaudited) (Unaudited)
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<S> <C> <C>
Operating activities:
Net earnings............................................ $163,293,538 $ 78,820,605
Adjustments:
Depreciation of plant and equipment................... 134,883,717 125,881,911
Minority interests.................................... 74,827,395 32,785,427
Changes in:
Current assets...................................... (60,709,070) 7,104,348
Current liabilities................................. 50,100,032 31,633,908
Other............................................... (7,741,472) (24,874,977)
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Cash provided by operating activities................. 354,654,140 251,351,222
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Investing activities:
Capital expenditures (net).............................. (239,307,070) (122,026,561)
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Cash used in investing activities..................... (239,307,070) (122,026,561)
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Financing activities:
Increase in long-term debt.............................. - 175,000,000
Distributions to minority interests..................... (87,563,000) (69,693,680)
Issuance of common stock................................ 689,573 2,114,280
Acquisition of treasury stock........................... (263,934,815) (4,850,948)
Cash dividends.......................................... (24,989,751) (22,691,889)
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Cash provided by (used in) financing activities....... (375,797,993) 79,877,763
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Increase (decrease) in cash and short-term investments....$(260,450,923) $209,202,424
=========== ============
</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 about 22% from the second quarter of 1999 to the
second quarter of 2000, with more than half of the net sales increase resulting
from an increase in average sales prices and the remainder resulting from an
increase in sales volume. Net sales increased close to 28% from the first half
of 1999 to the first half of 2000, with more than half of the net sales increase
resulting from an increase in sales volume and the remainder resulting from an
increase in average sales prices. Average sales prices increased about 11% both
from the second quarter of 1999 to the second quarter of 2000, and from the
first half of 1999 to the first half of 2000.
The major component of cost of products sold is raw material costs. The
average price of raw materials increased approximately 17% in the second quarter
of 2000 compared with the second quarter of 1999, and increased about 14% in the
first half of 2000 compared with the first half of 1999.
Major components of marketing, administrative and other expenses are freight
and profit sharing costs. Unit freight costs increased about 8% from the second
quarter of 1999 to the second quarter of 2000, and increased about 6% from the
first half of 1999 to the first half of 2000. Profit sharing costs increased
about 85% from the second quarter of 1999 to the second quarter of 2000, and
increased more than 140% from the first half of 1999 to the first half of 2000.
Profit sharing costs are based upon and generally fluctuate with pre-tax
earnings.
Interest income, net of interest expense, decreased from the second quarter
of 1999 to the second quarter of 2000, due primarily to decreased average
short-term investments, and increased from the first half of 1999 to the first
half of 2000, mainly as a result of increased average interest rates.
Federal income taxes were at a rate of about 35.5% for the second quarter
and first half of 2000, and approximately 36% for the second quarter and first
half of 1999.
Net earnings increased during the second quarter and first half of
2000, compared with the second quarter and first half of 1999, due to increased
margins and decreased pre-operating and start-up costs.
Margins were about 15% for the second quarter of 2000 and about 14% for the
first half of 2000, compared with about 11% for the second quarter and 10% for
the first half of 1999.
Liquidity and capital resources
The current ratio was 2.3 at the end of the first half of 2000, and 2.9 at
year-end 1999. The percentage of long-term debt to total capital was 14% at the
end of the first half of 2000, and 13% at year-end 1999.
Capital expenditures increased more than 95% from the first half of 1999 to
the first half of 2000. Capital expenditures are projected to be about $400
million for all of 2000. 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.
Nucor's directors have approved the purchase of up to 10,000,000 shares of
Nucor common stock. Nucor repurchased approximately 3,900,000 shares at a cost
of about $161,000,000 during the second quarter of 2000, and repurchased
approximately 6,000,000 shares at a cost of about $264,000,000 during the first
half of 2000. Since the inception of the stock repurchase program, a total of
approximately 7,100,000 shares have been repurchased at a total cost of
approximately $310,000,000.
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<PAGE>
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings
Nucor has received notices of violation from the U.S. Environmental
Protection Agency (the "EPA") and its state counterparts at Nucor's facilities
in Hickman, Arkansas and Norfolk, Nebraska, alleging that these facilities have
violated certain federal environmental laws and regulations. Negotiations
between Nucor and the EPA have been ongoing regarding a resolution of these
matters. Nucor is also involved in various other judicial and administrative
proceedings arising in the ordinary course of business. Nucor does not believe
that any such proceedings will have a material adverse effect on its business,
operating results or financial condition.
Item 4 - Submission of Matters to a Vote of Security Holders
At the annual meeting of stockholders held on May 11, 2000, three directors
were elected for terms of three years expiring in 2003; 58,465,316 shares were
voted for H. David Aycock (4,954,301 abstained), 62,767,515 shares were voted
for Harvey B. Gantt (652,102 abstained), and 62,787,192 shares were voted for
Samuel Siegel (632,425 abstained).
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>
Six Months (26 Weeks) Ended Three Months (13 Weeks) Ended
--------------------------- -----------------------------
July 1, 2000 July 3, 1999 July 1, 2000 July 3, 1999
------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Basic:
Basic net earnings............. $163,293,538 $78,820,605 $81,803,693 $50,647,213
============ =========== =========== ===========
Average shares outstanding..... 84,871,429 87,298,950 83,152,589 87,288,165
========== ========== ========== ==========
Basic net earnings per share... $1.9240 $.9029 $.9838 $.5802
========== ========== ========== ==========
Diluted:
Diluted net earnings........... $163,293,538 $78,820,605 $81,803,693 $50,647,213
============ =========== =========== ===========
Diluted
average shares outstanding:
Basic shares outstanding..... 84,871,429 87,298,950 83,152,589 87,288,165
Dilutive effect of
employee stock options..... 29,649 39,420 7,364 57,077
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84,901,078 87,338,370 83,159,953 87,345,242
========== ========== ========== ==========
Diluted net earnings per share. $1.9233 $.9025 $.9837 $.5799
========== ========== ========== ==========
</TABLE>
The information furnished has not been audited and is subject to
year-end adjustments.
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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
Chief Financial Officer, Treasurer
Dated: August 11, 2000 and Executive Vice President
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