NUE
$51.70
Nucor
($.44)
(.84%)
Earnings Details
1st Quarter March 2019
Tuesday, April 23, 2019 7:30:00 AM
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Summary

Nucor Beats

Nucor (NUE) reported 1st Quarter March 2019 earnings of $1.55 per share on revenue of $6.1 billion. The consensus earnings estimate was $1.50 per share on revenue of $6.0 billion. The Earnings Whisper number was $1.50 per share. Revenue grew 9.5% on a year-over-year basis.

Nucor Corp and its affiliates are manufacturer of steel and steel products. It also produces direct reduced iron for use in the Company’s steel mills.

Results
Reported Earnings
$1.55
Earnings Whisper
$1.50
Consensus Estimate
$1.50
Reported Revenue
$6.10 Bil
Revenue Estimate
$6.03 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Nucor Reports Results for First Quarter of 2019

CHARLOTTE, N.C., April 23, 2019 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) today announced consolidated net earnings of $501.8 million, or $1.63 per diluted share, for the first quarter of 2019. By comparison, Nucor reported consolidated net earnings of $646.8 million, or $2.07 per diluted share, for the fourth quarter of 2018 and $354.2 million, or $1.10 per diluted share, for the first quarter of 2018.

"Our diversified business model helped us to once again deliver a significant year-over-year improvement in first quarter earnings," said John Ferriola, Nucor's Chairman, Chief Executive Officer and President. "Our plate, bar, and structural mills were strong contributors in the first quarter, and several of our downstream businesses also increased earnings as compared to the year ago period."

Mr. Ferriola continued, "While we are focused on bringing new projects online to drive incremental earnings growth and margin expansion, we are also actively evaluating other profitable growth opportunities. We will remain disciplined and opportunistic, consistent with our focus on shareholder value creation. Overall, Nucor is well-positioned for continued growth and success, we are building on our strong momentum and we remain confident in our near-and long-term prospects."

Selected Segment Data
Earnings (loss) before income taxes and noncontrolling interests by segment for the first quarters of 2019 and 2018 were as follows (in thousands):



Three Months (13 Weeks) Ended



March 30, 2019


March 31, 2018






Steel mills


$              689,398


$                    560,503

Steel products


77,433


85,814

Raw materials


53,223


74,547

Corporate/eliminations


(130,438)


(204,952)



$              689,616


$                    515,912

Financial Review
Nucor's consolidated net sales decreased 3% to $6.10 billion in the first quarter of 2019 compared with $6.30 billion in the fourth quarter of 2018, and increased approximately 10% compared with $5.57 billion in the first quarter of 2018. Included in the first quarter of 2019 results was a benefit of $33.7 million, or $0.08 per diluted share, related to the gain on the sale of an equity method investment in the raw materials segment. Included in the first quarter of 2018 results was an expense of $21.8 million, or $0.07 per diluted share, related to the write off of deferred tax assets due to the change in the tax status of a subsidiary.

Average sales price per ton in the first quarter of 2019 decreased 4% compared with the fourth quarter of 2018 and increased 13% compared with the first quarter of 2018. A total of 6,767,000 tons were shipped to outside customers in the first quarter of 2019, a 1% increase from fourth quarter of 2018 and a 3% decrease from the first quarter of 2018. Total steel mill shipments in the first quarter of 2019 increased 2% from the fourth quarter of 2018 and decreased 4% from the first quarter of 2018. Downstream steel products shipments to outside customers in the first quarter of 2019 decreased 2% from the fourth quarter of 2018 and decreased 3% from the first quarter of 2018.

The average scrap and scrap substitute cost per ton used during the first quarter of 2019 was $352, a 2% decrease compared to $359 in the fourth quarter of 2018 and an increase of 4% compared to $337 in the first quarter of 2018.

Pre-operating and start-up costs related to the Company's growth projects were $19.6 million, or $0.05 per diluted share, in the first quarter of 2019, compared with $17.4 million, or $0.04 per diluted share, in the fourth quarter of 2018 and $2.3 million, or $0.01 per diluted share, in the first quarter of 2018.

Overall operating rates at the Company's steel mills decreased to 87% in the first quarter of 2019 as compared to 88% in the fourth quarter of 2018 and 92% in the first quarter of 2018.

Nucor's liquidity position remains very strong with $1.6 billion in cash and cash equivalents as of March 30, 2019.

During the first quarter of 2019, Nucor repurchased approximately 1.2 million shares of its common stock for an average price of $60.69 per share. At March 30, 2019, Nucor had approximately 304,786,000 shares outstanding and approximately $1.4 billion available under its share repurchase program.

First Quarter Highlights
In February 2019, Nucor's board of directors declared a cash dividend of $0.40 per share payable on May 10, 2019 to stockholders of record on March 29, 2019. This dividend is Nucor's 184th consecutive quarterly cash dividend, a record the Company expects to continue.

In March 2019, Nucor announced its plans to build a new state of the art steel plate mill in Brandenburg, Kentucky.  The new plate mill will have an estimated annual capacity of 1.2 million tons and employ approximately 400 people. The project is expected to take approximately three years to complete.  The new plate mill will significantly strengthen Nucor's plate product portfolio, giving the Company the ability to produce approximately 97 percent of the products demanded in the current domestic plate market, including the specialty higher-margin products. The new plate mill will complement Nucor's existing plate mills in North Carolina, Alabama and Texas and is expected to be fully operational in 2022.

First Quarter of 2019 Analysis
As expected, earnings from the Company's steel mills segment in the first quarter of 2019 decreased from the fourth quarter of 2018 primarily due to lower average selling prices and margins for sheet products. In addition, unusually challenging winter conditions delayed shipments to certain construction customers of the Company's steel mills and steel products segments.

The performance of the raw materials segment decreased in the first quarter of 2019 as compared to the fourth quarter of 2018 due primarily to margin compression in Nucor's DRI businesses, which has experienced declining average selling prices since the fourth quarter of 2018.

Second Quarter of 2019 Outlook
Earnings in the second quarter of 2019 are expected to be similar to the first quarter of 2019, excluding the gain on the sale of the equity method investment. The performance of the steel mills segment in the second quarter of 2019 is anticipated to be consistent compared to the first quarter of 2019 as weakening margins for sheet and plate mill products are expected to be offset by improving margins for structural and bar mill products.

The profitability of Nucor's steel products segment in the second quarter of 2019 is expected to significantly improve as compared to the first quarter of 2019, as typical seasonal patterns and improved weather conditions should benefit nonresidential construction markets. 

The performance of the raw materials segment is expected to decrease in the second quarter of 2019 as compared to the first quarter of 2019 due to further margin compression in the Company's DRI businesses. 

About Nucor
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities 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; precision castings; 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 hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.

Forward-Looking Statements
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) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to prevailing steel prices and changes in the supply and cost of raw materials, including scrap steel; (4) market demand for steel products; and (5) 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 2018 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.

Broadcast of Conference Call
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 23, 2019 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 




March 30, 2019


March 31, 2018


Percentage
Change

Steel mills total shipments








Sheet 


2,644


2,698


-2%


Bars


2,001


2,242


-11%


Structural


564


601


-6%


Plate


606


596


2%


Other


174


131


33%




5,989


6,268


-4%









Sales tons to outside customers:







Steel mills


4,772


5,016


-5%


Joist


110


105


5%


Deck


106


106


-


Cold finished


143


147


-3%


Fabricated concrete








reinforcing steel


259


290


-11%


Piling


138


126


10%


Tubular products


263


284


-7%


Other


976


893


9%




6,767


6,967


-3%

 

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(In thousands, except per share data)






  Three Months (13 Weeks) Ended  






March 30, 2019


March 31, 2018





Net sales

$      6,096,624


$         5,568,419





Costs, expenses and other:




  Cost of products sold

5,200,732


4,842,013

  Marketing, administrative and other expenses

180,739


182,960

  Equity in earnings of unconsolidated affiliates

(2,906)


(9,580)

  Interest expense, net

28,443


37,114


5,407,008


5,052,507

Earnings before income taxes and




noncontrolling interests

689,616


515,912

Provision for income taxes

158,823


135,800

Net earnings

530,793


380,112

Earnings attributable to




noncontrolling interests

28,987


25,933

Net earnings attributable to 




Nucor stockholders

$          501,806


$            354,179





Net earnings per share:




  Basic

$1.63


$1.11

  Diluted

$1.63


$1.10





Average shares outstanding:




  Basic

306,585


319,421

  Diluted

307,180


320,474

 

 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) 

 (In thousands) 














March 30, 2019


Dec. 31, 2018

 ASSETS 






 Current assets: 






 Cash and cash equivalents 


$      1,550,807


$     1,398,886


 Short-term investments 


50,000


-


 Accounts receivable, net 


2,483,138


2,505,568


 Inventories, net 


4,445,228


4,553,500


 Other current assets 


121,170


178,311











 Total current assets 


8,650,343


8,636,265









 Property, plant and equipment, net 


5,573,237


5,334,748









 Goodwill 



2,183,677


2,184,336









 Other intangible assets, net 


806,888


828,504









 Other assets 


872,553


936,735











 Total assets 


$    18,086,698


$   17,920,588









 LIABILITIES 






 Current liabilities: 






 Short-term debt 


$            71,438


$           57,870


 Accounts payable 


1,429,776


1,428,191


 Salaries, wages and related accruals 


371,913


709,397


 Accrued expenses and other current liabilities 


694,888


610,842











 Total current liabilities 


2,568,015


2,806,300









 Long-term debt due after one year 


4,233,792


4,233,276









 Deferred credits and other liabilities 


782,225


679,044











 Total liabilities 


7,584,032


7,718,620









 EQUITY 






 Nucor stockholders' equity: 






 Common stock 


152,061


152,061


 Additional paid-in capital 


2,083,339


2,073,715


 Retained earnings 


10,714,279


10,337,445


 Accumulated other comprehensive loss, 







 net of income taxes 


(308,787)


(304,133)


 Treasury stock 


(2,526,701)


(2,467,010)



 Total Nucor stockholders' equity 


10,114,191


9,792,078









 Noncontrolling interests 


388,475


409,890











 Total equity 


10,502,666


10,201,968











 Total liabilities and equity 


$    18,086,698


$   17,920,588

 

 

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 

 (In thousands) 
















Three Months (13 Weeks) Ended
















March 30, 2019


March 31, 2018










Operating activities:







Net earnings 



$                       530,793


$                       380,112


Adjustments:








Depreciation



158,171


158,665



Amortization



21,500


22,453



Stock-based compensation


12,492


10,463



Deferred income taxes


19,948


29,988



Distributions from affiliates


26,034


25,150



Equity in earnings of unconsolidated affiliates

(2,906)


(9,580)



Changes in assets and liabilities (exclusive of acquisitions and dispositions):







Accounts receivable


21,958


(343,982)




Inventories



107,907


(246,933)




Accounts payable


(11,397)


157,836




Federal income taxes


105,573


86,746




Salaries, wages and related accruals

(325,866)


(171,626)




Other operating activities


(13,499)


28,629










Cash provided by operating activities


650,708


127,921










Investing activities:







Capital expenditures



(288,786)


(172,203)


Investment in and advances to affiliates

(29)


(55,901)


Divestiture of affiliates



67,591


-


Disposition of plant and equipment


12,910


5,967


Acquisitions (net of cash acquired)


(9,495)


-


Purchases of investments


(50,000)


-


Proceeds from the sale of investments


-


50,000


Other investing activities


2,176


975










Cash used in investing activities


(265,633)


(171,162)










Financing activities:







Net change in short-term debt


13,568


21,203


Issuance of common stock


3,137


15,312


Payment of tax withholdings on certain stock-based compensation

(1,364)


(4,430)


Distributions to noncontrolling interests

(50,402)


(24,793)


Cash dividends



(123,400)


(121,787)


Acquisition of treasury stock


(72,830)


(29,193)


Other financing activities


(1,947)


(1,844)










Cash used in financing activities 


(233,238)


(145,532)










Effect of exchange rate changes on cash


84


(77)










Increase (decrease) in cash and cash equivalents

151,921


(188,850)










Cash and cash equivalents - beginning of year

1,398,886


949,104










Cash and cash equivalents - end of three months

$                   1,550,807


$                       760,254










Non-cash investing activity:







Change in accrued plant and equipment purchases and assets recorded





under capital lease arrangements


$                          12,925


$                           (9,396)

 

 

 

Cision View original content:http://www.prnewswire.com/news-releases/nucor-reports-results-for-first-quarter-of-2019-300835998.html

SOURCE Nucor Corporation