Exhibit 99.1
NUCOR REPORTS RESULTS FOR FIRST NINE MONTHS AND THIRD QUARTER OF 2005
CHARLOTTE, NORTH CAROLINA, October 20, 2005 – Nucor Corporation (NYSE: NUE) announced today record consolidated net earnings for the first nine months of 2005. Nucor’s consolidated net earnings for the first nine months of 2005 were $969.3 million ($6.08 per diluted share), an increase of 24% over net earnings of $780.1 million ($4.90 per diluted share) in last year’s first nine months. Consolidated net earnings of $291.9 million ($1.86 per diluted share) in this year’s third quarter decreased 30% compared with $415.4 million ($2.59 per diluted share) earned in the third quarter of 2004 and decreased 10% from the $322.7 million ($2.03 per diluted share) earned in the second quarter of 2005.
In the first nine months of 2005, Nucor’s consolidated net sales increased 15% to $9.49 billion, compared with $8.29 billion in last year’s first nine months. Average sales price per ton increased 9% while total tons shipped to outside customers increased 5% from the first nine months of 2004. In the third quarter of 2005, Nucor’s consolidated net sales decreased 7% to $3.03 billion, compared with $3.24 billion in the third quarter of 2004 and decreased 4% compared with $3.15 billion in the second quarter of 2005. Average sales price per ton decreased 15% from the third quarter of 2004 and decreased 8% from the second quarter of 2005. Total tons shipped to outside customers were a record 5,298,000 tons in the third quarter of 2005, an increase of 9% over the third quarter of 2004 and an increase of 5% over the second quarter of 2005.
The average scrap and scrap substitute cost per ton used increased 9% from $225 in the first nine months of 2004 to $245 in the first nine months of 2005, decreased 13% from $248 in the third quarter of 2004 to $217 in the third quarter of 2005, and decreased 12% from $246 in the second quarter of 2005. Total energy costs increased approximately $6 per ton from the first nine months of 2004 to the first nine months of 2005, increased approximately $12 per ton from the third quarter of 2004 to the third quarter of 2005, and increased approximately $6 per ton from the second quarter of 2005 to the third quarter of 2005.
Nucor incurred a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $148.0 million in the first nine months of 2005, compared with a charge of $223.4 million in the first nine months of 2004. In the third quarter of 2005, the LIFO credit was $52.0 million, compared with a charge of $124.1 million in the third quarter of 2004 and a credit of $69.9 million in the second quarter of 2005.
In the steel mills segment, steel production remained flat at 15,136,000 tons in the first nine months of 2005, compared with 15,153,000 tons produced in the first nine months of 2004. Total steel shipments increased 3% to 15,504,000 tons in the first nine months of 2005, compared with 15,018,000 tons in last year’s first nine months. Steel shipments to outside customers increased 5% to 14,295,000 tons in the first nine months of 2005, compared with 13,674,000 tons in last year’s first nine months. In the steel products segment, steel joist production during the first nine months of 2005 increased to 413,000 tons, compared with 396,000 tons in the first nine months of 2004. Steel deck sales increased to 285,000 tons in the first nine months of 2005, compared with 271,000 tons in last year’s first nine months. Cold finished steel sales increased to 261,000 tons, compared with 211,000 tons in the first nine months of 2004.
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NUCOR REPORTS RESULTS FOR FIRST NINE MONTHS AND THIRD QUARTER OF 2005 (Continued)
In the steel mills segment, steel production increased 3% from 4,943,000 tons in the second quarter of 2005 to 5,085,000 tons in the third quarter of 2005. Steel shipments to outside customers increased 5% to 4,914,000 tons in the third quarter of 2005, compared with 4,693,000 tons in the second quarter of the year. The increase in production and shipments over the prior year and over the second quarter reflects stronger business conditions in long products and plate products, as well as acquisitions made in 2004 and 2005.
Nucor repurchased approximately 722,000 shares of Nucor’s common stock at a cost of approximately $39.3 million under a publicly announced stock repurchase program during the third quarter of 2005, and repurchased approximately 4.7 million shares at a cost of about $245.2 million during the first nine months of 2005. Approximately 3.8 million shares remain authorized for repurchase under the current program.
Our earnings guidance for the fourth quarter of $1.70 to $1.90 per diluted share is consistent with our view that business conditions will remain strong through the fourth quarter of 2005 and into the first quarter of 2006. The biggest threats to this guidance are related to three important issues: import levels, energy costs and availability, and a significant slowdown in our economy.
Nucor and affiliates are manufacturers of steel products, with operating facilities in sixteen 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.
Certain statements contained in this news release are “forward-looking statements” that involve risks and uncertainties. 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) market demand for steel products; (3) energy costs and availability; (4) competitive pressure on sales and pricing, including pressure from imports and substitute materials; and (5) capital investments and their impact on our performance. These and other factors are outlined in Nucor’s regulatory filings with the Securities and Exchange Commission, including those in Nucor’s December 31, 2004 Annual Report on Form 10-K. 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 third quarter results on October 20, 2005 at 2:00 pm eastern time. The conference call will be available over the Internet at www.nucor.com, under Investor Relations/Investor Information.
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NUCOR REPORTS RESULTS FOR FIRST NINE MONTHS AND THIRD QUARTER OF 2005 (Continued)
Unaudited figures are as follows:
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)
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| | | Nine Months (39 Weeks) Ended
| | | Three Months (13 Weeks) Ended
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| | | Oct. 1, 2005
| | | Oct. 2, 2004
| | | Oct. 1, 2005
| | Oct. 2, 2004
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NET SALES | | $ | 9,493,535 | | | $ | 8,287,830 | | | $ | 3,025,911 | | $ | 3,239,592 |
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COSTS, EXPENSES AND OTHER: | | | | | | | | | | | | | | |
Cost of products sold | | | 7,582,395 | | | | 6,683,803 | | | | 2,441,675 | | | 2,433,518 |
Marketing, administrative and | | | | | | | | | | | | | | |
other expenses | | | 339,779 | | | | 318,978 | | | | 111,731 | | | 131,573 |
Interest expense, net | | | 7,396 | | | | 17,831 | | | | 922 | | | 5,053 |
Minority interests | | | 76,595 | | | | 60,347 | | | | 24,915 | | | 34,061 |
Other income | | | (9,200 | ) | | | (1,596 | ) | | | — | | | — |
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| | | | 7,996,965 | | | | 7,079,363 | | | | 2,579,243 | | | 2,604,205 |
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EARNINGS BEFORE INCOME TAXES | | | 1,496,570 | | | | 1,208,467 | | | | 446,668 | | | 635,387 |
Provision for income taxes | | | 527,320 | | | | 428,400 | | | | 154,791 | | | 220,000 |
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NET EARNINGS | | $ | 969,250 | | | $ | 780,067 | | | $ | 291,877 | | $ | 415,387 |
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NET EARNINGS PER SHARE: | | | | | | | | | | | | | | |
Basic | | $ | 6.14 | | | $ | 4.93 | | | $ | 1.87 | | $ | 2.62 |
Diluted | | $ | 6.08 | | | $ | 4.90 | | | $ | 1.86 | | $ | 2.59 |
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AVERAGE SHARES OUTSTANDING: | | | | | | | | | | | | | | |
Basic | | | 157,865 | | | | 158,094 | | | | 155,832 | | | 158,796 |
Diluted | | | 159,316 | | | | 159,347 | | | | 157,236 | | | 160,229 |
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NUCOR REPORTS RESULTS FOR FIRST NINE MONTHS AND THIRD QUARTER OF 2005 (Continued)
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
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| | | Oct. 1, 2005
| | | Dec. 31, 2004
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Assets | | | | | | | | |
CURRENT ASSETS: | | | | | | | | |
Cash and short-term investments | | $ | 1,607,238 | | | $ | 779,049 | |
Accounts receivable | | | 1,017,900 | | | | 962,755 | |
Inventories | | | 951,143 | | | | 1,239,888 | |
Other current assets | | | 228,729 | | | | 193,256 | |
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Total current assets | | | 3,805,010 | | | | 3,174,948 | |
PROPERTY, PLANT AND EQUIPMENT | | | 2,845,587 | | | | 2,818,307 | |
OTHER ASSETS | | | 308,278 | | | | 139,952 | |
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TOTAL ASSETS | | $ | 6,958,875 | | | $ | 6,133,207 | |
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Liabilities and stockholders' equity | | | | | | | | |
CURRENT LIABILITIES: | | | | | | | | |
Long-term debt due within one year | | $ | 1,250 | | | $ | — | |
Accounts payable | | | 573,477 | | | | 471,549 | |
Federal income taxes payable | | | — | | | | 28,957 | |
Salaries, wages and related accruals | | | 336,032 | | | | 320,276 | |
Accrued expenses and other current liabilities | | | 348,836 | | | | 245,008 | |
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Total current liabilities | | | 1,259,595 | | | | 1,065,790 | |
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LONG-TERM DEBT DUE AFTER ONE YEAR | | | 922,300 | | | | 923,550 | |
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DEFERRED CREDITS AND OTHER LIABILITIES | | | 517,971 | | | | 514,569 | |
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MINORITY INTERESTS | | | 169,257 | | | | 173,313 | |
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STOCKHOLDERS' EQUITY: | | | | | | | | |
Common stock | | | 73,987 | | | | 73,753 | |
Additional paid-in capital | | | 172,241 | | | | 147,206 | |
Retained earnings | | | 4,468,930 | | | | 3,688,555 | |
Unearned compensation | | | (3,887 | ) | | | (392 | ) |
Accumulated other comprehensive income (loss), net of income taxes | | | 71,100 | | | | (1,177 | ) |
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| | | | 4,782,371 | | | | 3,907,945 | |
Treasury stock | | | (692,619 | ) | | | (451,960 | ) |
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Total stockholders' equity | | | 4,089,752 | | | | 3,455,985 | |
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 6,958,875 | | | $ | 6,133,207 | |
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NUCOR REPORTS RESULTS FOR FIRST NINE MONTHS AND THIRD QUARTER OF 2005 (Continued)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
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| | | Nine Months (39 Weeks) Ended
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| Oct. 1, 2005
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| Oct. 2, 2004
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Operating activities: | | | | | | | | |
Net earnings | | $ | 969,250 | | | $ | 780,067 | |
Adjustments: | | | | | | | | |
Depreciation | | | 281,499 | | | | 291,805 | |
Impairment of assets | | | — | | | | 13,200 | |
Deferred income taxes | | | (44,910 | ) | | | (52,900 | ) |
Minority interests | | | 76,583 | | | | 60,345 | |
Changes in (exclusive of acquisitions): | | | | | | | | |
Current assets | | | 280,213 | | | | (832,629 | ) |
Current liabilities | | | 176,316 | | | | 631,457 | |
Other | | | (11,624 | ) | | | 3,972 | |
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Cash provided by operating activities | | | 1,727,327 | | | | 895,317 | |
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Investing activities: | | | | | | | | |
Capital expenditures | | | (222,629 | ) | | | (198,007 | ) |
Investment in affiliates | | | (37,450 | ) | | | (68,550 | ) |
Disposition of plant and equipment | | | 709 | | | | 2,813 | |
Acquisitions (net of cash acquired) | | | (154,864 | ) | | | (169,646 | ) |
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Cash used in investing activities | | | (414,234 | ) | | | (433,390 | ) |
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Financing activities: | | | | | | | | |
Proceeds from long-term debt | | | — | | | | 20,000 | |
Issuance of common stock | | | 29,768 | | | | 46,769 | |
Distributions to minority interests | | | (80,639 | ) | | | (71,775 | ) |
Cash dividends | | | (188,875 | ) | | | (53,901 | ) |
Acquisition of treasury stock | | | (245,158 | ) | | | — | |
Termination of interest rate swap agreement | | | — | | | | 4,800 | |
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Cash used in financing activities | | | (484,904 | ) | | | (54,107 | ) |
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Increase in cash and short-term investments | | | 828,189 | | | | 407,820 | |
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Cash and short-term investments—beginning of year | | | 779,049 | | | | 350,332 | |
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Cash and short-term investments—end of nine months | | $ | 1,607,238 | | | $ | 758,152 | |
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