| Exhibit 99.1 |
 | News Release |
NUCOR REPORTS RESULTS FOR FIRST HALF AND SECOND QUARTER OF 2004
CHARLOTTE, NORTH CAROLINA, July 22, 2004 – Nucor Corporation (NYSE: NUE) announced today record quarterly earnings and sales for the first half and the second quarter of 2004. Nucor’s earnings through the first six months of 2004 exceeded the previous record annual earnings. Nucor’s consolidated net earnings for the first half of 2004 were $364.7 million ($4.59 per diluted share), compared with $26.2 million ($0.33 per diluted share) in the first half of 2003. Consolidated net earnings for this year’s second quarter were $251.4 million ($3.17 per diluted share), compared with $8.4 million ($0.11 per diluted share) in the second quarter of 2003 and $113.2 million ($1.43 per diluted share) in the first quarter of 2004. In the first half of 2004, Nucor’s consolidated net sales increased 68% to $5,048.2 million, compared with $3,000.7 million in last year’s first half. Average sales price per ton increased 47% while total tons shipped to outside customers increased 15% from the first half of 2003. In the second quarter of 2004, Nucor’s consolidated net sales increased 82% to $2,761.8 million, compared with $1,520.5 million in the second quarter of 2003 and increased 21%, compared with $2,286.4 million in the first quarter of 2004. Average sales price per ton increased 61% from the second quarter of 2003 and increased 26% from the first quarter of 2004. Total tons shipped to outside customers increased 13% from the second quarter of 2003 and decreased 5% from the first quarter of 2004.
The average scrap and scrap substitute cost per ton used increased 69% from $127 in the first half of 2003 to $214 in the first half of 2004, and increased 73% from $131 in the second quarter of 2003 to $227 in the second quarter of 2004.
Nucor incurred a charge to value inventories using the last-in, first-out (LIFO) method of accounting of $99.3 million in the first half of 2004 (including a LIFO charge of $19.3 million for Nucor-Yamato Steel Company, of which Nucor owns 51%), compared with a charge of $12.9 million in the first half of 2003 (including a LIFO charge of $2.5 million for Nucor-Yamato Steel Company). In the second quarter of 2004, the LIFO charge was $67.1 million (including a LIFO charge of $12.1 million for Nucor-Yamato Steel Company), compared with a charge of $6.5 million in the second quarter of 2003 (including a LIFO charge of $1.3 million for Nucor-Yamato Steel Company).
The increases in earnings and sales are due to increased demand for our products and the resulting increase in base prices, the continuation of a raw material surcharge that we initiated in the first quarter of 2004 to address historically high scrap costs, and the continuation of the turnaround achieved in the first quarter at our sheet mill in Decatur, Alabama and our plate mill in Hertford County, North Carolina.
Pre-operating and start-up costs of new facilities decreased to $16.8 million in the first half of 2004, compared with $60.2 million in the first half of 2003. For the second quarter of 2004, pre-operating and start-up costs were $7.6 million compared with $33.5 million in the second quarter of 2003. In 2004, these costs primarily related to the continuing start-up of the Castrip® facility at our sheet mill in Crawfordsville, Indiana. In 2003, these costs primarily related to the start-up of the sheet mill in Decatur, Alabama (formerly Trico Steel Company, LLC) and the Castrip facility.
After evaluating our options for the steel mill in Kingman, Arizona that we purchased from North Star Steel in the first quarter of 2003, we determined that we will not restart the melt shop. Accordingly, we reduced the value of this asset by $13.2 million in the second quarter of 2004, which is reflected in cost of products sold.
Page 1 of 5
Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
| News Release |
NUCOR REPORTS RESULTS FOR FIRST HALF AND SECOND QUARTER OF 2004 (Continued)
In the first half of 2004, Nucor established records in the steel mills segment for steel production, total steel shipments and steel sales to outside customers. Steel production was 10,081,000 tons, compared with 8,545,000 tons produced in the first half of 2003, an increase of 18%. Total steel shipments increased 16% to 10,050,000 tons in the first half of 2004, compared with 8,643,000 tons in last year’s first half. Steel shipments to outside customers increased 15% to 9,182,000 tons in the first half of 2003, compared with 7,993,000 tons in last year’s first half. In the steel products segment, steel joist production during the first half of 2004 increased to 252,000 tons, compared with 235,000 tons in the first half of 2003. Steel deck sales decreased to 168,000 tons in the first half of 2003, compared with 172,000 tons in last year’s first half. Cold finished steel sales increased to 145,000 tons, compared with 128,000 tons in the first half of 2003.
Nucor had an effective tax rate of 36.4% in the first half of 2004 compared with 18.4% in the first half of 2003 and 6.1% for the year 2003, and had an effective tax rate of 36.6% in the second quarter of 2004 compared with 11.2% in the second quarter of 2003. The increase in the effective tax rate is primarily due to the effect of increased pre-tax earnings.
On July 17, 2004, Nucor’s wholly owned subsidiary, Nucor Steel Tuscaloosa, Inc., purchased substantially all of the steelmaking assets of Corus Tuscaloosa for a price of approximately $90 million. The facility is a coiled plate mill that manufactures pressure vessel steel coil, discrete plate and cut-to-length plate products. Located in Tuscaloosa, Alabama, the mill was built in 1985. In 1996, a melting and casting facility expansion and mill modernization project increased its annual capacity to approximately 800,000 tons.
Demand for our products continues to be strong due to increases in industrial spending and non-residential construction. The raw material surcharges are increasing in the third quarter following the recent surge in scrap prices. We expect that the third quarter will be stronger than the second quarter and that improving economic conditions and continuing strong steel demand will contribute to estimated earnings of between $3.20 and $3.40 per share in the third quarter of 2004, compared to $.20 per share in the third quarter of 2003. Interim LIFO charges are based on estimates of inventory prices and quantities at year-end. These estimates will likely differ from actual amounts, and such differences may be significant.
Nucor is the largest steel producer in the United States and is the nation’s largest recycler. Nucor and affiliates are manufacturers of steel products, with operating facilities in fourteen states. Products produced are: carbon and alloy steel – in bars, beams, sheet and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; metal building systems; and light gauge steel framing.
Page 2 of 5
Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
| News Release |
NUCOR REPORTS RESULTS FOR FIRST HALF AND SECOND QUARTER OF 2004 (Continued)
Certain statements contained in this news release are “forward-looking statements” that involve risks and uncertainties. Although the Company believes they are based on reasonable assumptions, there can be no assurance that future events will not affect their accuracy. Such events include, among others, the sensitivity of the results of Nucor’s operations to prevailing steel prices and changes in the supply and cost of raw materials, including scrap steel; general economic conditions and the timing of the recovery of the non-residential construction market; market demand for steel products; availability and costs of electricity, natural gas and raw materials; U.S. and foreign trade policies affecting steel imports or exports; and significant changes in governmental regulations affecting environmental compliance. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them.
You are invited to listen to the live broadcast of Nucor’s conference call in which management will discuss Nucor’s second quarter results on July 22, 2004 at 2:00 pm eastern time. The conference call will be available over the Internet at www.nucor.com, under Investor Relations/Investor Information.
Unaudited figures are as follows:
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)
| Six Months (26 Weeks) Ended | Three Months (13 Weeks) Ended | |||||||||||||
| July 3, 2004 | July 5, 2003 | July 3, 2004 | July 5, 2003 | |||||||||||
NET SALES | $ | 5,048,238 | $ | 3,000,732 | $ | 2,761,822 | $ | 1,520,461 | ||||||
COSTS, EXPENSES AND OTHER: | ||||||||||||||
Cost of products sold | 4,250,285 | 2,860,571 | 2,233,916 | 1,454,146 | ||||||||||
Marketing, administrative and other expenses | 187,405 | 86,129 | 110,006 | 45,938 | ||||||||||
Interest expense (net) | 12,778 | 13,614 | 6,116 | 6,547 | ||||||||||
Minority interests | 26,286 | 10,585 | 15,488 | 4,346 | ||||||||||
Other income | (1,596 | ) | (2,301 | ) | — | — | ||||||||
| 4,475,158 | 2,968,598 | 2,365,526 | 1,510,977 | |||||||||||
EARNINGS BEFORE INCOME TAXES | 573,080 | 32,134 | 396,296 | 9,484 | ||||||||||
Provision for income taxes | 208,400 | 5,927 | 144,854 | 1,059 | ||||||||||
NET EARNINGS | $ | 364,680 | $ | 26,207 | $ | 251,442 | $ | 8,425 | ||||||
NET EARNINGS PER SHARE: | ||||||||||||||
Basic | $ | 4.62 | $ | 0.34 | $ | 3.18 | $ | 0.11 | ||||||
Diluted | $ | 4.59 | $ | 0.33 | $ | 3.17 | $ | 0.11 | ||||||
AVERAGE SHARES OUTSTANDING: | ||||||||||||||
Basic | 78,874 | 78,187 | 79,006 | 78,193 | ||||||||||
Diluted | 79,397 | 78,282 | 79,436 | 78,316 | ||||||||||
Page 3 of 5
Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
| News Release |
NUCOR REPORTS RESULTS FOR FIRST HALF AND SECOND QUARTER OF 2004 (Continued)
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
| July 3, 2004 | Dec. 31, 2003 | |||||||
Assets | ||||||||
CURRENT ASSETS: | ||||||||
Cash and short-term investments | $ | 502,050 | $ | 350,332 | ||||
Accounts receivable | 900,915 | 572,479 | ||||||
Inventories | 730,349 | 560,396 | ||||||
Other current assets | 145,407 | 137,353 | ||||||
Total current assets | 2,278,721 | 1,620,560 | ||||||
PROPERTY, PLANT AND EQUIPMENT | 2,721,028 | 2,817,135 | ||||||
OTHER ASSETS | 111,117 | 54,658 | ||||||
| $ | 5,110,866 | $ | 4,492,353 | |||||
Liabilities and stockholders' equity | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 412,595 | $ | 329,863 | ||||
Federal income taxes | 75,353 | — | ||||||
Salaries, wages and related accruals | 201,242 | 91,187 | ||||||
Accrued expenses and other current liabilities | 247,053 | 208,545 | ||||||
Total current liabilities | 936,243 | 629,595 | ||||||
LONG-TERM DEBT DUE AFTER ONE YEAR | 903,550 | 903,550 | ||||||
DEFERRED CREDITS AND OTHER LIABILITIES | 418,877 | 439,852 | ||||||
MINORITY INTERESTS | 146,601 | 177,279 | ||||||
STOCKHOLDERS' EQUITY: | ||||||||
Common stock | 36,684 | 36,427 | ||||||
Additional paid-in capital | 148,499 | 117,399 | ||||||
Retained earnings | 2,973,167 | 2,641,708 | ||||||
Unearned compensation | (492 | ) | — | |||||
| 3,157,858 | 2,795,534 | |||||||
Treasury stock | (452,263 | ) | (453,457 | ) | ||||
Total stockholders' equity | 2,705,595 | 2,342,077 | ||||||
| $ | 5,110,866 | $ | 4,492,353 | |||||
Page 4 of 5
Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
| News Release |
NUCOR REPORTS RESULTS FOR FIRST HALF AND SECOND QUARTER OF 2004 (Continued)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
| Six Months (26 Weeks) Ended | ||||||||
| July 3, 2004 | July 5, 2003 | |||||||
Operating activities: | ||||||||
Net earnings | $ | 364,680 | $ | 26,207 | ||||
Adjustments: | ||||||||
Depreciation | 193,679 | 183,039 | ||||||
Gain on sale of facility and equipment | (1,596 | ) | — | |||||
Impairment of assets | 13,200 | — | ||||||
Deferred income taxes | (32,600 | ) | 8,700 | |||||
Minority interests | 26,285 | 10,577 | ||||||
Changes in (exclusive of acquisitions and dispositions): | ||||||||
Current assets | (512,413 | ) | (48,580 | ) | ||||
Current liabilities | 313,094 | 27,752 | ||||||
Other | 7,585 | (923 | ) | |||||
Cash provided by operating activities | 371,914 | 206,772 | ||||||
Investing activities: | ||||||||
Capital expenditures | (111,524 | ) | (94,275 | ) | ||||
Investment in affiliates | (53,495 | ) | (9,201 | ) | ||||
Disposition of plant and equipment | 2,456 | 199 | ||||||
Acquisitions (net of cash acquired) | — | (34,941 | ) | |||||
Cash used in investing activities | (162,563 | ) | (138,218 | ) | ||||
Financing activities: | ||||||||
Repayment of long-term debt | — | (16,000 | ) | |||||
Issuance of common stock | 32,551 | 1,130 | ||||||
Distributions to minority interests | (56,963 | ) | (59,135 | ) | ||||
Cash dividends | (33,221 | ) | (31,278 | ) | ||||
Cash used in financing activities | (57,633 | ) | (105,283 | ) | ||||
Increase (decrease) in cash and short-term investments | $ | 151,718 | $ | (36,729 | ) | |||
Page 5 of 5
Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com