CHARLOTTE, N.C., April 20, 2017 /PRNewswire/ -- Nucor Corporation
(NYSE: NUE) announced today consolidated net earnings of
$356.9 million, or $1.11 per diluted share, for the first quarter of
2017. By comparison, Nucor reported net earnings of $159.6 million, or $0.50 per diluted share, for the fourth quarter
of 2016 and net earnings of $87.6
million, or $0.27 per diluted
share, for the first quarter of 2016.
Earnings (loss) before income taxes and noncontrolling interests
by segment were as follows for the first quarters of 2017 and 2016
(in thousands):
|
|
Three Months (13
Weeks) Ended
|
|
|
April 1,
2017
|
|
April 2,
2016
|
|
|
|
|
|
Steel
mills
|
|
$
684,161
|
|
$
280,372
|
Steel
products
|
|
26,922
|
|
42,367
|
Raw
materials
|
|
26,391
|
|
(63,372)
|
Corporate/eliminations
|
|
(188,499)
|
|
(89,804)
|
|
|
$
548,975
|
|
$
169,563
|
Included in the first quarter of 2017 results were inventory
related purchase accounting charges of $9.8
million, or $0.02 per diluted
share, associated with the recent acquisitions of Southland Tube
and Republic Conduit. Included in the fourth quarter of 2016
results were the effects of a change in estimate related to the
cost of certain inventories that resulted in a benefit of
$77.6 million, or $0.16 per diluted share. Included in the first
quarter of 2016 earnings were out-of-period non-cash gains
totaling $13.4 million ($0.04 per diluted share) related to a
noncontrolling interest adjustment and to tax adjustments.
Nucor's consolidated net sales increased 22% to $4.82 billion in the first quarter of 2017 from
$3.96 billion in the fourth quarter
of 2016 and increased 30% compared with $3.72 billion in the first quarter of 2016.
Average sales price per ton in the first quarter of 2017 increased
8% compared to the fourth quarter of 2016 and increased 21% from
the first quarter of 2016. Total tons shipped to outside customers
were 6,584,000 tons in the first quarter of 2017, a 13% increase
from the fourth quarter of 2016 and a 7% increase from the first
quarter of 2016. Total steel mill shipments in the first quarter of
2017 increased 19% from the fourth quarter of 2016 and increased 9%
from the first quarter of 2016. Downstream steel products shipments
to outside customers in the first quarter of 2017 decreased 3% from
the fourth quarter of 2016 and increased 3% from the first quarter
of 2016.
The average scrap and scrap substitute cost per ton used during
the first quarter of 2017 was $284,
an increase of 20% from $236 in the
fourth quarter of 2016 and an increase of 47% compared to
$193 in the first quarter of
2016.
Overall operating rates at our steel mills increased to 89% in
the first quarter of 2017 as compared to 74% in the fourth quarter
of 2016 and 80% in the first quarter of 2016.
Total steel mill energy costs in the first quarter of 2017
decreased approximately $1 per ton
compared to the fourth quarter of 2016 and increased approximately
$1 per ton compared to the first
quarter of 2016.
Our liquidity position remains strong with $1.7
billion in cash and cash equivalents and short-term
investments, as of April 1, 2017, and
an untapped $1.5 billion revolving
credit facility that does not expire until April 2021.
In February 2017, Nucor's board of
directors declared a cash dividend of $0.3775 per share payable on May 11, 2017 to stockholders of record on
March 31, 2017. This dividend is
Nucor's 176th consecutive quarterly cash dividend, a record we
expect to continue.
In March 2017, Nucor announced an
investment of $85 million to upgrade
the rolling mill at its steel bar mill in Marion, Ohio in order to maintain a cost
competitive position by reducing operating costs.
Imports continue to impact the U.S. steel industry. Important
trade cases in cut-to-length plate, steel concrete reinforcing bar
(rebar) and steel wire rod are in progress, which are helping to
stop the flood of dumped and subsidized products from foreign
producers, and are making sure that we can compete on a
level-playing field. In the cut-to-length plate cases filed against
twelve countries in April 2016, the
U.S. Department of Commerce has now announced affirmative final
determinations on dumped and subsidized imports from all twelve
countries. The U.S. International Trade Commission has also voted
unanimously that the domestic industry is being injured by dumped
and subsidized plate imports from China, Brazil, Turkey and South Africa. The remaining
votes in the plate cases are expected in the coming weeks. In
February 2017, the U.S. Department of
Commerce announced preliminary antidumping duties on rebar imports
from Japan, Taiwan, and Turkey, and preliminary countervailing duties
on rebar imports from Turkey. We
expect the rebar case to conclude later this year. In March 2017, we filed a new trade case to address
the flood of dumped and subsidized steel wire rod imports from ten
countries. The wire rod case is in the preliminary phase.
As expected, earnings in the first quarter of 2017 increased
significantly compared to the fourth quarter of 2016 primarily due
to the performance of our steel mills segment. The increased
profitability of the steel mills segment was driven by the improved
performance of our sheet, bar and plate mills. The profitability of
the steel products segment in the first quarter of 2017 decreased
compared to the fourth quarter of 2016 due to typical seasonality.
The performance of the raw materials segment improved from the
fourth quarter of 2016 due to the much improved performance of our
scrap processing and brokerage operations as well as our direct
reduced iron (DRI) facility in Trinidad.
Earnings in the first quarter of 2017 were the highest Nucor has
had in recent years, and we expect earnings in the second quarter
of 2017 to improve compared to the first quarter of 2017.
Performance of the steel mills segment is expected to improve in
the second quarter of 2017 as compared to the first quarter of 2017
as metal margins are expected to expand at our sheet mills due to
the delayed impact of contract pricing. Our plate mills are
anticipated to realize the full benefit of higher margins
throughout the entire quarter. We expect increased profitability
for our downstream products segment in the second quarter of 2017
as compared to the first quarter of 2017 due to seasonal factors as
improving weather conditions benefit nonresidential construction
markets. The performance of the raw materials segment is expected
to improve in the second quarter of 2017 as compared to the first
quarter of 2017 due to the improved profitability of our DRI
facilities. We also expect intercompany profit eliminations to have
a smaller relative impact in the second quarter of 2017. We
continue to be encouraged by the renewed growth in demand we are
seeing in the energy markets and the nonresidential construction
markets. The automotive markets remain strong.
In the fourth quarter of 2016, the Company changed its method of
accounting for certain inventories from the last-in, first-out
(LIFO) method to the first-in, first-out (FIFO) method which
required retrospective application to prior period financial
statements. Accordingly, all amounts for prior periods presented in
this release are presented after the retrospective application of
the change in accounting principle.
Nucor and its affiliates are manufacturers of steel products,
with operating facilities primarily in the U.S. and Canada.
Products produced include: carbon and alloy steel -- in bars,
beams, sheet and plate; hollow structural section tubing;
electrical conduit; steel piling; steel joists and joist girders;
steel deck; fabricated concrete reinforcing steel; cold finished
steel; steel fasteners; metal building systems; steel grating; and
wire and wire mesh. Nucor, through The David J. Joseph
Company, also brokers ferrous and nonferrous metals, pig iron and
HBI/DRI; supplies ferro-alloys; and processes ferrous and
nonferrous scrap. Nucor is North
America's largest recycler.
Certain statements contained in this news release are
"forward-looking statements" that involve risks and
uncertainties. The words "believe," "expect," "project,"
"will," "should," "could" and similar expressions are intended to
identify those forward-looking statements. 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) competitive pressure on sales and pricing,
including competition from imports and substitute materials; (2)
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; (3) market demand for steel
products; and (4) energy costs and availability. These and
other factors are discussed in Nucor's regulatory filings with the
Securities and Exchange Commission, including those in Nucor's
fiscal 2016 Annual Report on Form 10-K, Item 1A. Risk
Factors. 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 20, 2017 at
2:00 p.m. eastern time. The
conference call will be available over the Internet at
www.nucor.com, under Investor Relations.
TONNAGE
DATA
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
(13 Weeks) Ended
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
|
Percentage
Change
|
Steel mills total
shipments
|
|
|
|
|
|
|
|
Sheet
|
|
2,705
|
|
2,568
|
|
5%
|
|
Tubular
products
|
|
223
|
|
-
|
|
|
|
Bars
|
|
1,957
|
|
1,748
|
|
12%
|
|
Structural
|
|
611
|
|
601
|
|
2%
|
|
Plate
|
|
577
|
|
554
|
|
4%
|
|
Other
|
|
74
|
|
176
|
|
-58%
|
|
|
|
6,147
|
|
5,647
|
|
9%
|
|
|
|
|
|
|
|
|
Sales tons to
outside customers:
|
|
|
|
|
|
|
|
Steel
mills
|
|
5,202
|
|
4,899
|
|
6%
|
|
Joist
|
|
101
|
|
98
|
|
3%
|
|
Deck
|
|
106
|
|
101
|
|
5%
|
|
Cold
finished
|
|
122
|
|
119
|
|
3%
|
|
Fabricated
concrete
|
|
|
|
|
|
|
|
reinforcing
steel
|
|
247
|
|
242
|
|
2%
|
|
Other
|
|
806
|
|
689
|
|
17%
|
|
|
|
6,584
|
|
6,148
|
|
7%
|
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
|
(In thousands,
except per share data)
|
|
|
|
|
|
Three
Months (13 Weeks) Ended
|
|
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
|
|
|
|
Net
sales
|
$
4,815,179
|
|
$
3,715,576
|
|
|
|
|
Costs, expenses
and other:
|
|
|
|
Cost of
products sold
|
4,054,929
|
|
3,400,591
|
Marketing,
administrative and other expenses
|
176,426
|
|
109,745
|
Equity in
earnings of unconsolidated affiliates
|
(8,756)
|
|
(9,245)
|
Interest
expense, net
|
43,605
|
|
44,922
|
|
4,266,204
|
|
3,546,013
|
Earnings before
income taxes and
|
|
|
|
noncontrolling
interests
|
548,975
|
|
169,563
|
Provision for
income taxes
|
171,327
|
|
47,066
|
Net
earnings
|
377,648
|
|
122,497
|
Earnings
attributable to
|
|
|
|
noncontrolling
interests
|
20,749
|
|
34,932
|
Net earnings
attributable to
|
|
|
|
Nucor
stockholders
|
$
356,899
|
|
$
87,565
|
|
|
|
|
Net earnings per
share:
|
|
|
|
Basic
|
$1.11
|
|
$0.27
|
Diluted
|
$1.11
|
|
$0.27
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
Basic
|
320,224
|
|
319,240
|
Diluted
|
321,146
|
|
319,294
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 1,
2017
|
|
Dec. 31,
2016
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
1,657,759
|
|
$
2,045,961
|
|
Short-term
investments
|
|
50,000
|
|
150,000
|
|
Accounts
receivable, net
|
|
1,980,556
|
|
1,631,676
|
|
Inventories,
net
|
|
3,064,170
|
|
2,479,958
|
|
Other
current assets
|
|
125,708
|
|
198,798
|
|
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
6,878,193
|
|
6,506,393
|
|
|
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
5,133,404
|
|
5,078,650
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
2,177,276
|
|
2,052,728
|
|
|
|
|
|
|
|
|
Other
intangible assets, net
|
|
969,492
|
|
866,835
|
|
|
|
|
|
|
|
|
Other
assets
|
|
717,095
|
|
718,912
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
15,875,460
|
|
$
15,223,518
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
|
$
48,153
|
|
$
17,959
|
|
Long-term
debt due within one year
|
|
600,000
|
|
600,000
|
|
Accounts
payable
|
|
1,257,900
|
|
838,109
|
|
Federal
income taxes payable
|
|
76,755
|
|
-
|
|
Salaries,
wages and related accruals
|
|
325,981
|
|
428,829
|
|
Accrued
expenses and other current liabilities
|
|
529,007
|
|
505,069
|
|
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
2,837,796
|
|
2,389,966
|
|
|
|
|
|
|
|
|
Long-term
debt due after one year
|
|
3,739,908
|
|
3,739,141
|
|
|
|
|
|
|
|
|
Deferred
credits and other liabilities
|
|
829,685
|
|
839,703
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
7,407,389
|
|
6,968,810
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Nucor
stockholders' equity:
|
|
|
|
|
|
Common
stock
|
|
151,775
|
|
151,734
|
|
Additional
paid-in capital
|
|
1,986,983
|
|
1,974,672
|
|
Retained
earnings
|
|
7,866,405
|
|
7,630,916
|
|
Accumulated
other comprehensive loss,
|
|
|
|
|
|
|
net of
income taxes
|
|
(316,992)
|
|
(317,843)
|
|
Treasury
stock
|
|
(1,554,148)
|
|
(1,559,614)
|
|
|
Total Nucor
stockholders' equity
|
|
8,134,023
|
|
7,879,865
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
334,048
|
|
374,843
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
8,468,071
|
|
8,254,708
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and equity
|
|
$
15,875,460
|
|
$
15,223,518
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months (13
Weeks) Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 1,
2017
|
|
April 2,
2016
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
Net
earnings
|
|
|
$
377,648
|
|
$
122,497
|
|
Adjustments:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
158,525
|
|
152,249
|
|
|
Amortization
|
|
|
22,368
|
|
18,112
|
|
|
Stock-based
compensation
|
|
9,524
|
|
7,300
|
|
|
Deferred income
taxes
|
|
(6,695)
|
|
15,530
|
|
|
Distributions from
affiliates
|
|
30,249
|
|
36,015
|
|
|
Equity in earnings
of unconsolidated affiliates
|
(8,756)
|
|
(9,245)
|
|
|
Changes in assets
and liabilities (exclusive of acquisitions and
dispositions):
|
|
|
|
|
|
|
Accounts
receivable
|
|
(297,158)
|
|
(104,252)
|
|
|
|
Inventories
|
|
|
(519,902)
|
|
114,479
|
|
|
|
Accounts
payable
|
|
413,256
|
|
197,350
|
|
|
|
Federal income
taxes
|
|
157,346
|
|
23,273
|
|
|
|
Salaries, wages
and related accruals
|
(102,744)
|
|
(49,453)
|
|
|
|
Other operating
activities
|
|
3,584
|
|
27,004
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
|
237,245
|
|
550,859
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(94,535)
|
|
(80,697)
|
|
Investment in and
advances to affiliates
|
(14,000)
|
|
(6,098)
|
|
Disposition of
plant and equipment
|
|
8,870
|
|
5,309
|
|
Acquisitions (net
of cash acquired)
|
|
(478,163)
|
|
(1,386)
|
|
Purchases of
investments
|
|
(50,000)
|
|
(50,000)
|
|
Proceeds from the
sale of investments
|
|
150,000
|
|
100,000
|
|
Other investing
activities
|
|
-
|
|
792
|
|
|
|
|
|
|
|
|
|
Cash used in
investing activities
|
|
(477,828)
|
|
(32,080)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
Net change in
short-term debt
|
|
30,180
|
|
(14,671)
|
|
Issuance of common
stock
|
|
7,432
|
|
-
|
|
Payment of tax
withholdings on certain stock-based compensation
|
(1,349)
|
|
-
|
|
Excess tax
benefits from stock-based compensation
|
-
|
|
353
|
|
Distributions to
noncontrolling interests
|
(61,544)
|
|
(49,853)
|
|
Cash
dividends
|
|
|
(121,303)
|
|
(120,153)
|
|
Acquisition of
treasury stock
|
|
-
|
|
(5,173)
|
|
Other financing
activities
|
|
(518)
|
|
(559)
|
|
|
|
|
|
|
|
|
|
Cash used in
financing activities
|
|
(147,102)
|
|
(190,056)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
(517)
|
|
10,296
|
|
|
|
|
|
|
|
|
|
(Decrease)
increase in cash and cash equivalents
|
(388,202)
|
|
339,019
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents - beginning of year
|
2,045,961
|
|
1,939,469
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents - end of three months
|
$
1,657,759
|
|
$
2,278,488
|
|
|
|
|
|
|
|
|
|
Non-cash investing
activity:
|
|
|
|
|
|
|
Change in accrued
plant and equipment purchases
|
$
(11,222)
|
|
$
(4,949)
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nucor-reports-results-for-first-quarter-of-2017-300442650.html
SOURCE Nucor Corporation