Exhibit 99.1
 | News Release |
NUCOR REPORTS RECORD RESULTS FOR 2005
CHARLOTTE, NORTH CAROLINA, January 27, 2006 – Nucor Corporation (NYSE: NUE) announced today record consolidated net earnings and sales for 2005. Nucor’s consolidated net earnings for 2005 were $1.31 billion ($8.26 per diluted share), an increase of 17% over net earnings of $1.12 billion ($7.02 per diluted share) in 2004. Consolidated net earnings of $341.0 million ($2.18 per diluted share) in this year’s fourth quarter were flat compared with $341.4 million ($2.12 per diluted share) earned in the fourth quarter of 2004 and increased 17% from the $291.9 million ($1.86 per diluted share) earned in the third quarter of 2005. Fourth quarter earnings per share improved 3% over the fourth quarter of 2004 primarily due to a smaller number of shares outstanding during the quarter.
Nucor’s consolidated net sales for 2005 increased 12% to $12.70 billion, compared with $11.38 billion in 2004. Average sales price per ton increased 4% while total tons shipped to outside customers increased 7% from 2004. In the fourth quarter of 2005, Nucor’s consolidated net sales increased 4% to $3.21 billion, compared with $3.09 billion in the fourth quarter of 2004 and increased 6% compared with $3.03 billion from the third quarter of 2005. Average sales price per ton decreased 10% from the fourth quarter of 2004 and increased 10% from the third quarter of 2005. Total tons shipped to outside customers were 5,089,000 tons in the fourth quarter of 2005, an increase of 15% over the fourth quarter of 2004 and a decrease of 4% from the third quarter of 2005.
The average scrap and scrap substitute cost per ton used increased 3% from $238 in 2004 to $244 in 2005, decreased 14% from $278 in the fourth quarter of 2004 to $240 in the fourth quarter of 2005, and increased 11% from $217 in the third quarter of 2005. Total energy costs increased approximately $7 per ton from 2004 to 2005, increased approximately $10 per ton from the fourth quarter of 2004 to the fourth quarter of 2005, and increased approximately $3 per ton from the third quarter of 2005 to the fourth quarter of 2005. Nucor is partially hedged against exposure to increases in energy costs.
Nucor incurred a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $151.6 million in 2005, compared with a charge of $375.9 million in 2004. In the fourth quarter of 2005, the LIFO credit was $3.6 million, compared with a charge of $152.5 million in the fourth quarter of 2004, and a credit of $52.0 million in the third quarter of 2005. The fourth quarter LIFO credit was well below our forecast of $50.0 million.
In 2005, Nucor established company records in its steel mills segment for steel production, total steel shipments and steel sales to outside customers. Steel production was 20,332,000 tons, compared with 19,737,000 tons produced in 2004, an increase of 3%. Total steel shipments increased 6% to 20,669,000 tons in 2005, compared with 19,464,000 tons in 2004. Based on the strength of our bar, plate and beam products, steel shipments to outside customers increased 7% to 19,020,000 tons in 2005, compared with 17,787,000 tons in 2004. In the steel products segment, steel joist production during 2005 increased to 554,000 tons, compared with 522,000 tons in 2004. Steel deck sales increased to a record 380,000 tons in 2005, compared with 364,000 tons in 2004. Cold finished steel sales increased to a record 342,000 tons, compared with 271,000 tons in 2004.
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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 RECORD RESULTS FOR 2005 (Continued)
In 2005, Nucor increased its base dividend and paid a quarterly supplemental dividend, resulting in dividend payments tripling from $69.7 million in 2004 to $209.8 million in 2005. We recently announced an additional increase in the supplemental dividend to $0.50 per share for a total dividend of $0.65 per share to be paid in the first quarter of 2006, compared with the total dividend of $0.40 per share paid in the fourth quarter of 2005.
Nucor repurchased approximately 845,000 shares of Nucor’s common stock at a cost of approximately $46.1 million under a publicly announced stock repurchase program during the fourth quarter of 2005, and repurchased approximately 5.6 million shares at a cost of about $291.2 million during 2005. Approximately 12.9 million shares remain authorized for repurchase.
Nucor expects that the first quarter of 2006 will be another strong quarter, as we continue to benefit from product line diversification. We expect that overall demand and margins for our products will remain strong and that earnings will be in the range of $1.90 to $2.10 per diluted share.
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 fourth quarter results on January 27, 2006 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 Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
 | News Release |
NUCOR REPORTS RECORD RESULTS FOR 2005 (Continued)
Unaudited figures are as follows:
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)
| Year Ended December 31, | Quarter Ended December 31, | ||||||||||||||
| 2005 | 2004 | 2005 | 2004 | ||||||||||||
NET SALES | $12,700,999 | $11,376,828 | $3,207,464 | $3,088,998 | |||||||||||
COSTS, EXPENSES AND OTHER: | |||||||||||||||
Cost of products sold | 10,085,396 | 9,128,872 | 2,509,400 | 2,445,069 | |||||||||||
Marketing, administrative and | |||||||||||||||
other expenses | 493,560 | 415,030 | 147,382 | 96,052 | |||||||||||
Interest expense (income), net | 4,201 | 22,352 | (3,195 | ) | 4,521 | ||||||||||
Minority interests | 110,674 | 80,894 | 34,079 | 20,547 | |||||||||||
Other income | (9,200 | ) | (1,596 | ) | — | — | |||||||||
| 10,684,631 | 9,645,552 | 2,687,666 | 2,566,189 | ||||||||||||
EARNINGS BEFORE | |||||||||||||||
INCOME TAXES | 2,016,368 | 1,731,276 | 519,798 | 522,809 | |||||||||||
Provision for income taxes | 706,084 | 609,791 | 178,764 | 181,391 | |||||||||||
NET EARNINGS | $ | 1,310,284 | $ | 1,121,485 | $ | 341,034 | $ | 341,418 | |||||||
NET EARNINGS PER SHARE: | |||||||||||||||
Basic | $ | 8.34 | $ | 7.08 | $ | 2.20 | $ | 2.14 | |||||||
Diluted | $ | 8.26 | $ | 7.02 | $ | 2.18 | $ | 2.12 | |||||||
AVERAGE SHARES OUTSTANDING: | |||||||||||||||
Basic | 157,128 | 158,383 | 154,941 | 159,268 | |||||||||||
Diluted | 158,565 | 159,754 | 156,433 | 160,777 | |||||||||||
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Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208www.nucor.com
| News Release |
NUCOR REPORTS RECORD RESULTS FOR 2005 (Continued)
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
| Dec. 31, 2005 | Dec. 31, 2004 | |||||||
Assets | ||||||||
CURRENT ASSETS: | ||||||||
Cash and short-term investments | $ | 1,837,510 | $ | 779,049 | ||||
Accounts receivable | 1,000,629 | 962,755 | ||||||
Inventories | 945,054 | 1,239,888 | ||||||
Other current assets | 288,360 | 193,256 | ||||||
Total current assets | 4,071,553 | 3,174,948 | ||||||
PROPERTY, PLANT AND EQUIPMENT | 2,855,717 | 2,818,307 | ||||||
OTHER ASSETS | 211,517 | 139,952 | ||||||
TOTAL ASSETS | $ | 7,138,787 | $ | 6,133,207 | ||||
Liabilities and stockholders' equity | ||||||||
CURRENT LIABILITIES: | ||||||||
Long-term debt due within one year | $ | 1,250 | $ | — | ||||
Accounts payable | 501,624 | 471,549 | ||||||
Federal income taxes payable | — | 28,957 | ||||||
Salaries, wages and related accruals | 368,568 | 320,276 | ||||||
Accrued expenses and other current liabilities | 384,257 | 245,008 | ||||||
Total current liabilities | 1,255,699 | 1,065,790 | ||||||
LONG-TERM DEBT DUE AFTER ONE YEAR | 922,300 | 923,550 | ||||||
DEFERRED CREDITS AND OTHER LIABILITIES | 486,910 | 514,569 | ||||||
MINORITY INTERESTS | 194,090 | 173,313 | ||||||
STOCKHOLDERS' EQUITY: | ||||||||
Common stock | 74,120 | 73,753 | ||||||
Additional paid-in capital | 191,850 | 147,206 | ||||||
Retained earnings | 4,709,111 | 3,688,555 | ||||||
Unearned compensation | (3,287 | ) | (392 | ) | ||||
Accumulated other comprehensive income (loss), net of income taxes | 46,600 | (1,177 | ) | |||||
| 5,018,394 | 3,907,945 | |||||||
Treasury stock | (738,606 | ) | (451,960 | ) | ||||
Total stockholders' equity | 4,279,788 | 3,455,985 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 7,138,787 | $ | 6,133,207 | ||||
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Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208www.nucor.com
| News Release |
NUCOR REPORTS RECORD RESULTS FOR 2005 (Continued)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
| Year Ended December 31, | ||||||||
| 2005 | 2004 | |||||||
Operating activities: | ||||||||
Net earnings | $ | 1,310,284 | $ | 1,121,485 | ||||
Adjustments: | ||||||||
Depreciation | 375,054 | 383,305 | ||||||
Impairment of assets | — | 13,200 | ||||||
Deferred income taxes | (29,379 | ) | 6,693 | |||||
Minority interests | 110,663 | 80,892 | ||||||
Settlement of natural gas hedges | 12,365 | — | ||||||
Changes in (exclusive of acquisitions): | ||||||||
Accounts receivable | (19,425 | ) | (354,897 | ) | ||||
Inventories | 337,862 | (635,641 | ) | |||||
Accounts payable | 17,259 | 130,604 | ||||||
Federal income taxes | (68,331 | ) | 35,403 | |||||
Salaries, wages and related accruals | 46,376 | 228,203 | ||||||
Other | 43,887 | 15,509 | ||||||
Cash provided by operating activities | 2,136,615 | 1,024,756 | ||||||
Investing activities: | ||||||||
Capital expenditures | (331,466 | ) | (285,925 | ) | ||||
Investment in affiliates | (41,903 | ) | (82,458 | ) | ||||
Disposition of plant and equipment | 752 | 3,094 | ||||||
Acquisitions (net of cash acquired) | (154,864 | ) | (169,646 | ) | ||||
Cash used in investing activities | (527,481 | ) | (534,935 | ) | ||||
Financing activities: | ||||||||
Proceeds from long-term debt | — | 20,000 | ||||||
Issuance of common stock | 40,209 | 68,630 | ||||||
Distributions to minority interests | (89,886 | ) | (84,858 | ) | ||||
Cash dividends | (209,752 | ) | (69,676 | ) | ||||
Acquisition of treasury stock | (291,244 | ) | — | |||||
Termination of interest rate swap agreement | — | 4,800 | ||||||
Cash used in financing activities | (550,673 | ) | (61,104 | ) | ||||
Increase in cash and short-term investments | 1,058,461 | 428,717 | ||||||
Cash and short-term investments—beginning of year | 779,049 | 350,332 | ||||||
Cash and short-term investments—end of year | $ | 1,837,510 | $ | 779,049 | ||||
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Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208www.nucor.com