Exhibit 99.1
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 | | News Release |
NUCOR REPORTS RESULTS FOR FIRST QUARTER OF 2005
CHARLOTTE, NORTH CAROLINA, April 21, 2005 – Nucor Corporation (NYSE: NUE) announced today consolidated net earnings for the first quarter of 2005 of $354.7 million ($2.20 per diluted share), more than triple the first quarter of 2004 net earnings of $113.2 million ($0.72 per diluted share) and an increase of 4% over the fourth quarter of 2004 net earnings of $341.4 million ($2.12 per diluted share).
Nucor’s consolidated net sales increased 45% to $3.32 billion compared with $2.29 billion in the first quarter of 2004 and increased 8% compared with $3.09 billion in the fourth quarter of 2004. In the first quarter of 2005, average sales price per ton increased 46% from the first quarter of 2004 and decreased 5% from the fourth quarter of 2004. Total tons shipped to outside customers remained flat from the first quarter of 2004 and increased 13% from the fourth quarter of 2004.
The average scrap and scrap substitute cost per ton used increased 36% from $200 in the first quarter of 2004 to $272 in the first quarter of 2005. Nucor incurred a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $26.1 million in the first quarter of 2005 (including a LIFO credit of $8.1 million for Nucor-Yamato Steel Company, of which Nucor owns 51%), compared with a charge of $32.2 million in the first quarter of 2004 (including a LIFO charge of $7.2 million for Nucor-Yamato Steel Company).
In the steel mills segment, steel production was 5,108,000 tons in the first quarter of 2005, compared with 4,960,000 tons produced in the first quarter of 2004 and 4,584,000 tons produced in the fourth quarter of 2004. Total steel shipments were 5,043,000 tons, compared with 5,145,000 tons in last year’s first quarter and 4,446,000 tons in last year’s fourth quarter. Steel sales to outside customers were 4,688,000 tons, compared with 4,726,000 tons in the first quarter of 2004 and 4,113,000 tons in the fourth quarter of 2004. In the steel products segment, steel joist production during the first quarter was 123,000 tons, compared with 116,000 tons in the first quarter of 2004 and 126,000 in the fourth quarter of 2004. Steel deck sales were 80,000 tons, compared with 74,000 tons in last year’s first quarter and 93,000 tons in last year’s fourth quarter. Cold finished steel sales were 89,000 tons, compared with 74,000 tons in the first quarter of 2004 and 60,000 tons in the fourth quarter of 2004.
Starting with the May 11, 2005 dividend payment, Nucor is increasing the regular quarterly cash dividend rate from $0.13 to $0.15 per share. In addition to the $0.15 per share base dividend amount, the Board of Directors approved the payment of a supplemental dividend of $0.25 per share, for a total dividend of $0.40 per share. Nucor has increased its dividend every year since Nucor began paying dividends 32 years ago.
In February 2005, Nucor purchased the assets of Fort Howard Steel, Inc.’s operations in Oak Creek, Wisconsin. This facility produces cold finish bar product and has approximately 140,000 tons of annual capacity. Earlier this week, Nucor announced that it had entered into an agreement to purchase substantially all of the assets of Marion Steel Company for a cash purchase price of approximately $113.0 million. Located in Marion, Ohio, this bar products mill has an annual capacity of approximately 400,000 tons. Its principal products are angles, flats, rebar, rounds and signposts. The acquisition is scheduled to close in mid-June after satisfactory resolution of regulatory approvals, transfer of appropriate permits and other contracts, and other closing conditions. The acquisition is expected to be immediately accretive to earnings.
Nucor expects to earn between $1.95 and $2.15 per diluted share in the second quarter of 2005, compared with $1.58 per diluted share in the second quarter of 2004.
Nucor and affiliates are manufacturers of steel products, with operating facilities in fifteen 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. Nucor is the nation’s largest recycler.
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Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
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| | News Release |
NUCOR REPORTS RESULTS FOR FIRST QUARTER OF 2005 (Continued)
Certain statements contained in this news release are “forward-looking statements” that involve risks and uncertainties. These forward-looking statements reflect the Company’s best judgment based on current information, and although we base these statements on circumstances that we believed to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the results and expectations discussed in this news release. Factors that might cause the Company’s actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) the sensitivity of the results of our operations to prevailing steel prices and the changes in the supply and cost of raw materials, including scrap steel; (2) availability and cost of electricity and natural gas; (3) market demand for steel products; (4) competitive pressure on sales and pricing, including pressure from imports and substitute materials; (5) uncertainties surrounding the global economy, including excess world capacity for steel production; (6) U.S. and foreign trade policy affecting steel imports or exports; (7) significant changes in government regulations affecting environmental compliance; (8) the cyclical nature of the domestic steel industry; (9) capital investments and their impact on our performance; and (10) our safety performance. 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 first quarter results on April 21, 2005 at 2:00 pm eastern time. The conference call will be available over the Internet at www.nucor.com, under Investor Relations.
Unaudited figures are as follows:
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)
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| | | Three Months (13 Weeks) Ended
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| | | April 2, 2005
| | | April 3, 2004
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NET SALES | | $ | 3,322,621 | | | $ | 2,286,416 | |
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COSTS, EXPENSES AND OTHER: | | | | | | | | |
Cost of products sold | | | 2,620,628 | | | | 2,016,369 | |
Marketing, administrative and other expenses | | | 125,429 | | | | 77,399 | |
Interest expense, net | | | 4,133 | | | | 6,662 | |
Minority interests | | | 31,165 | | | | 10,798 | |
Other income | | | (9,200 | ) | | | (1,596 | ) |
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| | | | 2,772,155 | | | | 2,109,632 | |
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EARNINGS BEFORE INCOME TAXES | | | 550,466 | | | | 176,784 | |
Provision for income taxes | | | 195,800 | | | | 63,546 | |
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NET EARNINGS | | $ | 354,666 | | | $ | 113,238 | |
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NET EARNINGS PER SHARE: | | | | | | | | |
Basic | | $ | 2.22 | | | $ | 0.72 | |
Diluted | | $ | 2.20 | | | $ | 0.72 | |
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AVERAGE SHARES OUTSTANDING: | | | | | | | | |
Basic | | | 159,708 | | | | 157,495 | |
Diluted | | | 161,246 | | | | 158,371 | |
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Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
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| | News Release |
NUCOR REPORTS RESULTS FOR FIRST QUARTER OF 2005 (Continued)
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
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| | | April 2, 2005
| | | Dec. 31, 2004
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Assets | | | | | | | | |
CURRENT ASSETS: | | | | | | | | |
Cash and short-term investments | | $ | 1,202,711 | | | $ | 779,049 | |
Accounts receivable | | | 1,021,430 | | | | 962,755 | |
Inventories | | | 1,192,686 | | | | 1,239,888 | |
Other current assets | | | 194,514 | | | | 193,256 | |
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Total current assets | | | 3,611,341 | | | | 3,174,948 | |
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PROPERTY, PLANT AND EQUIPMENT | | | 2,818,761 | | | | 2,818,307 | |
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OTHER ASSETS | | | 183,032 | | | | 139,952 | |
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TOTAL ASSETS | | $ | 6,613,134 | | | $ | 6,133,207 | |
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Liabilities and stockholders’ equity | | | | | | | | |
CURRENT LIABILITIES: | | | | | | | | |
Accounts payable | | $ | 524,656 | | | $ | 471,549 | |
Federal income taxes payable | | | 195,153 | | | | 28,957 | |
Salaries, wages and related accruals | | | 185,902 | | | | 320,276 | |
Accrued expenses and other current liabilities | | | 297,904 | | | | 245,008 | |
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Total current liabilities | | | 1,203,615 | | | | 1,065,790 | |
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LONG-TERM DEBT DUE AFTER ONE YEAR | | | 923,550 | | | | 923,550 | |
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DEFERRED CREDITS AND OTHER LIABILITIES | | | 498,061 | | | | 514,569 | |
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MINORITY INTERESTS | | | 202,293 | | | | 173,313 | |
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STOCKHOLDERS’ EQUITY: | | | | | | | | |
Common stock | | | 73,932 | | | | 73,753 | |
Additional paid-in capital | | | 168,011 | | | | 147,206 | |
Retained earnings | | | 3,979,141 | | | | 3,688,555 | |
Unearned compensation | | | (4,987 | ) | | | (392 | ) |
Accumulated other comprehensive income (loss), net of income taxes | | | 17,200 | | | | (1,177 | ) |
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| | | | 4,233,297 | | | | 3,907,945 | |
Treasury stock | | | (447,682 | ) | | | (451,960 | ) |
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Total stockholders’ equity | | | 3,785,615 | | | | 3,455,985 | |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 6,613,134 | | | $ | 6,133,207 | |
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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 QUARTER OF 2005 (Continued)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
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| | | Three Months (13 Weeks) Ended
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| | | April 2, 2005
| | | April 3, 2004
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Operating activities: | | | | | | | | |
Net earnings | | $ | 354,666 | | | $ | 113,238 | |
Adjustments: | | | | | | | | |
Depreciation | | | 91,290 | | | | 96,298 | |
Deferred income taxes | | | (16,200 | ) | | | (4,400 | ) |
Minority interests | | | 31,161 | | | | 10,797 | |
Changes in (exclusive of acquisition): | | | | | | | | |
Current assets | | | 2,802 | | | | (286,679 | ) |
Current liabilities | | | 137,066 | | | | 270,759 | |
Other | | | (12,847 | ) | | | 1,438 | |
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Cash provided by operating activities | | | 587,938 | | | | 201,451 | |
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Investing activities: | | | | | | | | |
Capital expenditures | | | (71,259 | ) | | | (66,189 | ) |
Investment in affiliates | | | (8,176 | ) | | | (39,631 | ) |
Disposition of plant and equipment | | | 294 | | | | 1,655 | |
Acquisition (net of cash acquired) | | | (44,136 | ) | | | — | |
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Cash used in investing activities | | | (123,277 | ) | | | (104,165 | ) |
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Financing activities: | | | | | | | | |
Issuance of common stock | | | 25,262 | | | | 16,256 | |
Distributions to minority interests | | | (2,181 | ) | | | (49,387 | ) |
Cash dividends | | | (64,080 | ) | | | (16,573 | ) |
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Cash used in financing activities | | | (40,999 | ) | | | (49,704 | ) |
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Increase in cash and short-term investments | | $ | 423,662 | | | $ | 47,582 | |
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Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
