SECOND
QUARTER
1996
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 June 29, 1996 Commission file number 1-4119
NUCOR CORPORATION
(Exact name as specified in charter)
Delaware 13-1860817
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
2100 Rexford Road, Charlotte, North Carolina 28211
(Address of principal executive offices) (Zip code)
Telephone number, including area code: (704) 366-7000
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
87,683,861 shares of common stock were outstanding at June 29, 1996.
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PART I - FINANCIAL INFORMATION
Consolidated Condensed Statements of Earnings
Six Months (26 Weeks) Ended Three Months (13 Weeks) Ended
June 29, 1996 July 1, 1995 June 29, 1996 July 1, 1995
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net sales................... $1,787,210,340 $1,721,886,767 $911,097,297 $880,152,115
-------------- -------------- ------------ ------------
Costs and expenses:
Cost of products sold..... 1,559,944,742 1,437,075,166 793,335,197 735,088,241
Marketing, administrative
and other expenses...... 60,892,879 69,525,134 31,911,959 35,818,776
Interest expense (income). (853,918) 1,644,340 107,311 411,422
-------------- -------------- ------------ ------------
1,619,983,703 1,508,244,640 825,354,467 771,318,439
-------------- -------------- ------------ ------------
Earnings before
federal income taxes...... 167,226,637 213,642,127 85,742,830 108,833,676
Federal income taxes...... 59,400,000 76,400,000 30,500,000 38,900,000
-------------- -------------- ------------ ------------
Net earnings............ $ 107,826,637 $ 137,242,127 $ 55,242,830 $ 69,933,676
============== ============== ============ ============
Net earnings per share...... $1.23 $1.57 $.63 $.80
===== ===== ==== ====
Dividends declared
per share............... $.16 $.14 $.08 $.07
==== ==== ==== ====
Average number of
shares outstanding.... 87,658,873 87,393,162 87,681,944 87,422,538
The information furnished reflects all adjustments which 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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Consolidated Condensed Balance Sheets
June 29, December 31,
1996 1995
-------------- --------------
Assets (Unaudited) (Audited)
Current assets:
Cash and short-term investments................. $ 152,145,246 $ 201,795,775
Accounts receivable............................. 310,172,575 283,206,832
Inventories..................................... 311,450,112 306,773,384
Other current assets............................ 44,853,161 38,965,327
-------------- --------------
Total current assets.......................... 818,621,094 830,741,318
-------------- --------------
Property, plant and equipment..................... 1,607,334,699 1,465,400,015
-------------- --------------
Total assets.................................. $2,425,955,793 $2,296,141,333
============== ==============
Liabilities and stockholders' equity
Current liabilities:
Long-term debt due within one year.............. $ 150,000 $ 150,000
Accounts payable................................ 217,061,697 214,562,570
Salaries, wages and related accruals............ 95,090,854 104,562,678
Federal income taxes............................ 3,948,873 11,298,873
Accrued expenses and other current liabilities.. 135,106,039 116,562,190
-------------- --------------
Total current liabilities..................... 451,357,463 447,136,311
-------------- --------------
Long-term debt due after one year................. 131,700,000 106,850,000
-------------- --------------
Deferred credits and other liabilities............ 133,134,197 139,384,197
-------------- --------------
Minority interests................................ 231,845,087 220,658,666
-------------- --------------
Stockholders' equity:
Common stock.................................... 35,935,405 35,902,460
Additional paid-in capital...................... 50,620,527 48,669,443
Retained earnings............................... 1,409,641,629 1,315,844,041
-------------- --------------
1,496,197,561 1,400,415,944
Treasury stock.................................. (18,278,515) (18,303,785)
-------------- --------------
1,477,919,046 1,382,112,159
-------------- --------------
Total liabilities and stockholders' equity.... $2,425,955,793 $2,296,141,333
============== ==============
Inventories consisted of approximately 55% raw materials and supplies, and 45%
finished and semi-finished products, at June 29, 1996 (55% and 45% at December
31, 1995).
The information furnished has not been audited and is subject to year-end
adjustments.
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Consolidated Condensed Statements of Cash Flows
Six Months (26 Weeks) Ended
June 29, 1996 July 1, 1995
(Unaudited) (Unaudited)
Operating activities:
Net earnings............................................ $107,826,637 $137,242,127
Adjustments:
Depreciation of plant and equipment................... 84,880,786 82,743,171
Minority interests.................................... 37,846,341 11,086,551
Changes in:
Current assets...................................... (37,530,305) (56,687,203)
Current liabilities................................. 4,221,152 42,859,582
Other............................................... 9,960,902 5,109,163
------------ ------------
Cash provided by operating activities................. 207,205,513 222,353,391
------------ ------------
Investing activities:
Capital expenditures (net).............................. (243,026,372) (76,391,706)
------------ ------------
Cash used in investing activities..................... (243,026,372) (76,391,706)
------------ ------------
Financing activities:
Increase (decrease) in long-term debt................... 24,850,000 (36,250,000)
Contributions for (distributions to) minority interests. (26,659,920) 883,600
Issuance of common stock................................ 2,009,299 1,994,124
Cash dividends.......................................... (14,029,049) (12,239,123)
------------ ------------
Cash used in financing activities..................... (13,829,670) (45,611,399)
------------ ------------
Increase (decrease) in cash and short-term investments.... $(49,650,529) $100,350,286
============ ============
The information furnished has not been audited and is subject to year-end
adjustments.
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Analysis of Operations and Finances
Operations
Net sales increased by about 4% from the both the second quarter of 1995 to
the second quarter of 1996, and from the first half of 1995 to the first half of
1996. All of the net sales increase resulted from an increase in sales volume.
Average sales prices were unchanged from the second quarter of 1995 to the
second quarter of 1996, and decreased about 1% from the first half of 1995 to
the first half of 1996.
The major component of cost of products sold is raw material costs. The
average price of raw materials increased about 1% in both the second quarter of
1996 compared with the second quarter of 1995, and the first half of 1996
compared with the first half of 1995.
Major components of marketing, administrative and other expenses are freight
and profit sharing costs. Unit freight costs increased less than 1% from the
second quarter of 1995 to the second quarter of 1996, and increased about 2%
from the first half of 1995 to the first half of 1996. Profit sharing costs
decreased about 30% from both the second quarter of 1995 to the second quarter
of 1996, and from the first half of 1995 to the first half of 1996. Profit
sharing costs are based upon and generally fluctuate with pre-tax earnings.
Interest expense, which is reduced by interest income from short-term
investments, decreased for the second quarter and first half of 1996 from the
second quarter and first half of 1995, due primarily to decreased average debt.
Federal income taxes were at a rate of about 36% for the second quarter and
first half of 1996, and the second quarter and first half of 1995.
Net earnings decreased during the second quarter and first half of 1996,
compared with the second quarter and first half of 1995, due to increased
pre-operating and start-up costs of new facilities and decreased margins.
Margins were about 13% for the second quarter and first half of 1996,
compared with about 16% for the second quarter and first half of 1995.
Liquidity and capital resources
- -------------------------------
The current ratio was about 1.8 at the end of the first half of 1996, and
about 1.9 at year-end 1995. The percentage of long-term debt to total capital
was about 7% at the end of the first half of 1996, and about 6% at year-end
1995.
Capital expenditures increased over 200% during the first half of 1996,
compared with the first half of 1995. Capital expenditures are projected to be
more than $500 million for all of 1996. 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.
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PART II - OTHER INFORMATION
Item 4 - Submission of Matters to a Vote of Security Holders
At the annual meeting of stockholders held on May 9, 1996, two directors
were elected for terms of three years expiring in 1999; 58,911,356 shares were
voted for F. Kenneth Iverson (986,894 abstained), and 58,912,710 shares were
voted for James W. Cunningham (985,540 abstained).
Item6 - Exhibits and Reports on Form 8-K
- ----------------------------------------
Exhibit 11 - Computation of net earnings per share.
- ---------
Reports on Form 8-K - None filed for the quarter.
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Exhibit 11 - Computation of net earnings per share
Six Months (26 Weeks) Ended Three months (13 Weeks) Ended
June 29, 1996 July 1, 1995 June 29, 1996 July 1, 1995
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Primary:
Primary net earnings..........$107,826,637 $137,242,127 $55,242,830 $69,933,676
============ ============ =========== ===========
Average shares outstanding
(excludes dilutive effect
of employee stock options
because less than 3%)...... 87,658,873 87,393,162 87,681,944 87,422,538
========== ========== ========== ==========
Primary
net earnings per share...... $1.2301 $1.5704 $.6300 $.8000
======= ======= ====== ======
Fully diluted:
Fully diluted net earnings....$107,826,637 $137,242,127 $55,242,830 $69,933,676
============ ============ =========== ===========
Fully diluted
average shares outstanding:
Primary shares outstanding.. 87,658,873 87,393,162 87,681,944 87,422,538
Dilutive effect of
employee stock options.... 125,338 195,479 104,411 168,023
---------- ---------- ---------- ----------
87,784,211 87,588,641 87,786,355 87,590,561
========== ========== ========== ==========
Fully diluted
net earnings per share...... $1.2283 $1.5669 $.6293 $.7984
======= ======= ====== ======
The information furnished has not been audited and is subject to year-end
adjustments.
SIGNATURES
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
financial officer.
NUCOR CORPORATION
By: Samuel Siegel
Samuel Siegel
Vice Chairman,
Dated: August 9, 1996 Chief Financial Officer
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