THIRD
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QUARTER
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2000
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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 September 30, 2000 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
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77,867,106 shares of common stock were outstanding at September 30, 2000.
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<PAGE>
PART I - FINANCIAL INFORMATION
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Nucor Corporation - Consolidated Condensed Statements of Earnings
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<TABLE>
<CAPTION>
Nine Months (39 Weeks) Ended Three Months (13 Weeks) Ended
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Sept. 30, 2000 Oct. 2, 1999 Sept. 30, 2000 Oct. 2, 1999
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net sales................... $3,576,668,220 $2,917,677,212 $1,163,088,140 $1,026,687,893
-------------- -------------- -------------- --------------
Costs and expenses:
Cost of products sold..... 3,077,555,191 2,579,603,978 1,008,734,266 876,327,900
Marketing, administrative
and other expenses...... 141,458,570 110,695,119 47,950,645 45,643,099
Interest expense (income). (633,551) (2,204,456) 1,208,757 (1,745,072)
-------------- -------------- -------------- -------------
3,218,380,210 2,688,094,641 1,057,893,668 920,225,927
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Earnings before
federal income taxes...... 358,288,010 229,582,571 105,194,472 106,461,966
Federal income taxes...... 127,200,000 82,600,000 37,400,000 38,300,000
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Net earnings............ $ 231,088,010 $ 146,982,571 $ 67,794,472 $ 68,161,966
============== ============== ============== ==============
Net earnings per share...... $2.78 $1.68 $.85 $.78
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Dividends declared
per share............... $.45 $.39 $.15 $.13
==== ==== ==== ====
Average number of
shares outstanding.. 83,149,261 87,295,726 79,686,001 87,289,209
</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>
Nucor Corporation - Consolidated Condensed Balance Sheets
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<TABLE>
<CAPTION>
September 30, 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................. $ 304,876,375 $ 572,185,451
Accounts receivable............................ 405,806,512 393,763,651
Inventories..................................... 462,765,727 464,983,651
Other current assets............................ 92,285,878 107,575,758
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Total current assets.......................... 1,265,734,492 1,538,508,511
Property, plant and equipment..................... 2,313,017,082 2,191,339,477
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Total assets.................................. $3,578,751,574 $3,729,847,988
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Liabilities and stockholders' equity
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Current liabilities:
Accounts payable................................ $ 225,400,057 $ 255,229,202
Federal income taxes............................ 1,390,034 2,455,851
Salaries, wages and related accruals............ 160,149,378 116,749,067
Accrued expenses and other current liabilities.. 201,417,262 156,596,778
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Total current liabilities..................... 588,356,731 531,030,898
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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............ 241,280,551 265,247,949
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Minority interests................................ 287,210,781 280,871,235
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Stockholders' equity:
Common stock.................................... 36,044,855 36,041,007
Additional paid-in capital...................... 71,173,879 70,906,567
Retained earnings............................... 2,410,588,717 2,216,091,023
Treasury stock.................................. (446,353,940) (60,790,691)
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2,071,453,511 2,262,247,906
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Total liabilities and stockholders' equity.... $3,578,751,574 $3,729,847,988
============== ==============
</TABLE>
Inventories consisted of approximately 45% raw materials and supplies, and 55%
finished and semi-finished products, at September 30, 2000 (50% and 50% at
December 31, 1999). Inventories valued on the last-in, first-out (LIFO) method
of accounting represent approximately 85% of total inventories as of September
30, 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
September 30, 2000 ($28,590,595 higher at December 31, 1999).
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
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<TABLE>
<CAPTION>
Nine Months (39 Weeks) Ended
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Sept. 30, 2000 Oct. 2, 1999
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(Unaudited) (Unaudited)
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<S> <C> <C>
Operating activities:
Net earnings............................................ $ 231,088,010 $146,982,571
Adjustments:
Depreciation of plant and equipment................... 202,271,229 191,624,257
Minority interests.................................... 110,479,246 50,490,209
Changes in:
Current assets...................................... 5,464,943 (21,763,085)
Current liabilities................................. 57,325,833 96,742,198
Other............................................... (21,973,976) (20,804,992)
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Cash provided by operating activities................. 584,655,285 443,271,158
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Investing activities:
Capital expenditures (net).............................. (325,942,256) (208,323,541)
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Cash used in investing activities..................... (325,942,256) (208,323,541)
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Financing activities:
Increase in long-term debt.............................. - 175,000,000
Distributions to minority interests..................... (104,139,700) (79,287,880)
Issuance of common stock................................ 823,946 2,490,011
Acquisition of treasury stock........................... (386,116,035) (8,837,872)
Cash dividends.......................................... (36,590,316) (34,026,258)
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Cash provided by (used in) financing activities....... (526,022,105) 55,338,001
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Increase (decrease) in cash and short-term investments.... $(267,309,076) $290,285,618
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</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
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Operations
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Net sales increased by 13% from the third quarter of 1999 to the third
quarter of 2000, with approximately 60% of the increase resulting from an
increase in sales volume and approximately 40% of the increase resulting from an
increase in average sales prices. Net sales increased by 23% from the first nine
months of 1999 to the first nine months of 2000, with more than half of the
increase resulting from an increase in sales volume and the remainder of the
increase resulting from an increase in sales prices. Average sales prices
increased by approximately 5% from the third quarter of 1999 to the third
quarter of 2000, and increased about 9% from the first nine months of 1999 to
the first nine months of 2000.
The major component of cost of products sold is raw material costs. The
average price of raw materials increased 8% from the third quarter of 1999 to
the third quarter of 2000, and increased 12% from the first nine months of 1999
to the first nine months of 2000.
Major components of marketing, administrative and other expenses are freight
and profit sharing costs. Unit freight costs increased less than 5% from the
third quarter of 1999 to the third quarter of 2000 and from the first nine
months of 1999 to the first nine months of 2000. Profit sharing costs remained
unchanged from the third quarter of 1999 to the third quarter of 2000, and
increased 70% from the first nine months of 1999 to the first nine months of
2000. Profit sharing costs are based upon and generally fluctuate with pre-tax
earnings.
Interest expense, net of interest income, increased from the third quarter
of 1999 to the third quarter of 2000, due primarily to decreased average
short-term investments. Interest income, net of interest expense, decreased from
the first nine months of 1999 to the first nine months of 2000, as a result of
increased long-term debt and decreased average short-term investments.
Federal income taxes were at a rate of 35.5% for the third quarter and first
nine months of 2000, and 36% for the third quarter and first nine months of
1999.
Net earnings remained unchanged from the third quarter of 1999 to the third
quarter of 2000, and increased from the first nine months of 1999 to the first
nine months of 2000 due to increased margins and decreased pre-operating and
start-up costs of new facilities.
Gross margins were about 13% for the third quarter of 2000 and about 14% for
the first nine months of 2000, compared with about 15% for the third quarter of
1999 and about 12% for the first nine months of 1999.
Liquidity and capital resources
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The current ratio was 2.2 at the end of the first nine months of 2000, and
2.9 at year-end 1999. The percentage of long-term debt to total capital was
close to 14% at the end of the first nine months of 2000, and about 13% at
year-end 1999.
Capital expenditures increased more than 55% during the first nine months of
2000, compared with the first nine months of 1999. Capital expenditures are
projected to be about $400 million for all of 2000. 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.
Nucor's directors have approved the purchase of up to 15,000,000 shares of
Nucor common stock. Nucor repurchased approximately 3,300,000 shares at a cost
of about $122,000,000 during the third quarter of 2000, and repurchased
approximately 9,300,000 shares at a cost of about $386,000,000 during the first
nine months of 2000. Since the inception of the stock repurchase program, a
total of approximately 10,400,000 shares have been repurchased at a total cost
of approximately $432,000,000.
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<PAGE>
PART II - OTHER INFORMATION
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Item 1 - Legal Proceedings
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Nucor has received notices of violation from the U.S. Environmental
Protection Agency (the "EPA"), alleging that Nucor facilities have violated
certain federal environmental laws and regulations. Negotiations between Nucor
and the EPA have been ongoing regarding a resolution of these matters. During
the third quarter of 2000, the EPA's state counterparts fined Nucor $750,000 in
Nebraska for alleged Clean Air Act violations and $120,000 in Arkansas for
alleged Resource Conservation and Recovery Act violations. 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 6 - Exhibits and Reports on Form 8-K
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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
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<TABLE>
<CAPTION>
Nine Months (39 Weeks) Ended Three Months (13 Weeks) Ended
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Sept. 30, 2000 Oct. 2, 1999 Sept. 30, 2000 Oct. 2, 1999
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(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Basic:
Basic net earnings............. $231,088,010 $146,982,571 $67,794,472 $68,161,966
============ ============ =========== ===========
Average shares outstanding..... 83,149,261 87,295,726 79,686,001 87,289,209
========== ========== ========== ==========
Basic net earnings per share... $2.7792 $1.6837 $.8508 $.7809
======= ======= ====== ======
Diluted:
Diluted net earnings........... $231,088,010 $146,982,571 $67,794,472 $68,161,966
============ ============ =========== ===========
Diluted
average shares outstanding:
Basic shares outstanding..... 83,149,261 87,295,726 79,686,001 87,289,209
Dilutive effect of
employee stock options..... 19,802 37,552 -0- 33,772
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83,169,063 87,333,278 79,686,001 87,322,981
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Diluted net earnings per share. $2.7785 $1.6830 $.8508 $.7806
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</TABLE>
The information furnished has not been audited and is subject to
year-end adjustments.
SIGNATURES
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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: November 10, 2000 and Executive Vice President
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