Nucor Reports Record Results for First Quarter of 2008

CHARLOTTE, N.C., April 17 /PRNewswire-FirstCall/ -- Nucor Corporation
(NYSE: NUE) announced today record first quarter net earnings for the fifth
consecutive year. Consolidated net earnings for the first quarter of 2008
were $409.8 million, an increase of 8% compared to the first quarter of 2007
net earnings of $381.0 million and an increase of 12% from the fourth quarter
of 2007 net earnings of $364.8 million. Diluted earnings per share increased
12% to $1.41 from $1.26 in the first quarter of 2007 and in the fourth quarter
of 2007. The increase in earnings per share from the first quarter of 2007 is
partially due to the reduced number of shares outstanding as a result of stock
repurchases made in 2007.
Nucor's consolidated net sales increased 32% to a record $4.97 billion
compared with $3.77 billion in the first quarter of 2007 due to a 15% increase
in average steel sales price per ton, an 11% increase in average steel
products sales price per ton, and a significant increase in steel products
shipments attributable to acquisitions made in 2007. The increase in sales is
also due to the February 29, 2008 acquisition of the stock of SHV North
America Corporation, which owns 100% of The David J. Joseph Company ("DJJ")
and its affiliates, for a cash purchase price of approximately $1.4 billion.
DJJ, which now operates as a wholly owned subsidiary of Nucor Corporation, has
been the broker of ferrous scrap to Nucor since 1969.
Consolidated net sales increased 13% over the fourth quarter of 2007
primarily due to an 8% increase in average steel sales price per ton and the
acquisition of DJJ.
The average scrap and scrap substitute cost per ton used increased 29%
from $259 in the first quarter of 2007 to $333 in the first quarter of 2008
and increased 17% from $285 in the fourth quarter of 2007.
Total energy costs increased approximately $4 per ton from the first
quarter of 2007 to the first quarter of 2008 and increased approximately $3
per ton from the fourth quarter of 2007.
Nucor incurred a charge to value inventories using the last-in, first-out
(LIFO) method of accounting of $69.0 million in the first quarter of 2008,
compared with a charge of $24.5 million in the first quarter of 2007 and a
charge of $92.3 million in the fourth quarter of 2007.
In the steel mills segment, steel production increased 4% to 5,831,000
tons in the first quarter of 2008, compared with 5,585,000 tons produced in
the first quarter of 2007, and increased 4% over the 5,586,000 tons produced
in the fourth quarter of 2007.
Total steel shipments increased 5% to 5,951,000 tons in the first quarter
of 2008, compared with 5,660,000 tons in last year's first quarter, and
increased 5% over the 5,684,000 total tons shipped in the fourth quarter.
Steel shipments to outside customers of 5,203,000 tons in the first quarter of
2008 remained flat compared with 5,229,000 tons in the first quarter of 2007,
and increased 2% over the 5,078,000 tons shipped in the fourth quarter of
2007.
In the steel products segment, steel joist production during the first
quarter was 132,000 tons, compared with 121,000 tons in the first quarter of
2007, an increase of 9%. Steel deck sales increased 9% from 106,000 tons in
the first quarter of 2007 to 116,000 tons in this year's first quarter. Cold
finished steel sales increased 51% to 136,000 tons, compared with 90,000 tons
in the first quarter of 2007. Sales of fabricated concrete reinforcing steel
increased from 40,000 tons in the month of March 2007 (when Nucor acquired
Harris Steel Group Inc.) to 179,000 tons in the first quarter of 2008.
Subsequent to the first quarter Nucor completed two acquisitions,
utilizing DJJ as a platform for continued growth in the scrap processing
industry. In April 2008, a wholly owned subsidiary of Nucor acquired
substantially all the assets of Metal Recycling Services Inc. ("MRS"). Based
in Monroe, North Carolina, MRS operates a full-service processing facility and
two feeder yards and expects to process 220,000 tons annually. MRS will
become part of DJJ and will operate under the Metal Recycling Services, LLC
name.
Also in April 2008, DJJ acquired substantially all the assets of Galamba
Metals Group. Galamba operated 16 full-service scrap processing facilities in
Kansas, Missouri and Arkansas and processed over 500,000 tons annually. DJJ
will operate the Galamba Metals Group facilities under the Advantage Metals
Recycling, LLC name.
Nucor expects to soon conclude a 50/50 joint venture with the Duferco
Group (Lugano, Switzerland) for the production of beams in Italy and the
distribution of beams in Europe and North Africa. The joint venture will
encompass the Duferco Group's Duferdofin subsidiary and associated
distribution companies.
Starting with the May 9, 2008 dividend payment, Nucor is increasing the
base quarterly cash dividend rate from $0.30 to $0.32 per share. In addition
to the $0.32 per share base dividend amount, the board of directors approved
the payment of a supplemental dividend of $0.20 per share, for a total
dividend of $0.52 per share. Nucor has increased its regular base cash
dividend every year since Nucor began paying dividends 35 years ago.
We expect second quarter earnings to be in the range of $1.55 to $1.60 per
diluted share. We expect continued strength in our sheet, plate, beam and bar
businesses due to the solid global demand for steel. In our overall
downstream businesses we expect conditions to continue to be good,
particularly for rebar fabrication, cold finish bars, steel grating, and wire
rod and mesh products. We believe our upstream raw material businesses will
be accretive in the second quarter. DJJ's net earnings for the one month that
they were owned by Nucor were offset by the purchase accounting adjustments in
the period.
Nucor and 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; steel joists and joist
girders; steel deck; fabricated concrete reinforcing steel; cold finished
steel; steel fasteners; metal building systems; light gauge steel framing;
steel grating and expanded metal; and wire and wire mesh. Nucor, through DJJ,
also brokers ferrous and nonferrous metals, pig iron and HRI/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. 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, 2007 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 first quarter results on April 17,
2008 at 2:00 p.m. eastern time. The conference call will be available over
the Internet at www.nucor.com , under Investor Relations.

Unaudited figures are as follows:

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)

Three Months (13 Weeks) Ended

March 29, 2008 March 31, 2007

NET SALES $4,974,269 $3,768,885

COSTS, EXPENSES AND OTHER:
Cost of products sold 4,071,592 2,991,598
Marketing, administrative and other
expenses 169,714 136,210
Interest expense (income), net 18,345 (9,162)
Minority interests 91,771 60,572
4,351,422 3,179,218

EARNINGS BEFORE INCOME TAXES 622,847 589,667
Provision for income taxes 213,093 208,638
NET EARNINGS $409,754 $381,029

NET EARNINGS PER SHARE:
Basic $1.42 $1.27
Diluted $1.41 $1.26

AVERAGE SHARES OUTSTANDING:
Basic 288,208 301,034
Diluted 290,201 303,482

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)

March 29, 2008 Dec. 31, 2007
Assets
CURRENT ASSETS:
Cash and cash equivalents $733,995 $1,393,943
Short-term investments - 182,450
Accounts receivable, net 1,965,002 1,611,844
Inventories 1,877,371 1,601,600
Other current assets 298,274 283,412

Total current assets 4,874,642 5,073,249

PROPERTY, PLANT AND EQUIPMENT, NET 3,631,792 3,232,998

GOODWILL 1,698,168 847,887

OTHER INTANGIBLE ASSETS, NET 894,617 469,936

OTHER ASSETS 241,302 202,052

TOTAL ASSETS $11,340,521 $9,826,122

Liabilities and stockholders' equity
CURRENT LIABILITIES:
Short-term debt $12,367 $22,868
Long-term debt due within one year 175,000 -
Accounts payable 1,345,322 691,668
Federal income taxes payable 131,151 -
Salaries, wages and related accruals 284,611 436,352
Accrued expenses and other current
liabilities 421,194 431,148

Total current liabilities 2,369,645 1,582,036

LONG-TERM DEBT DUE AFTER ONE YEAR 2,491,600 2,250,300

DEFERRED CREDITS AND OTHER LIABILITIES 766,401 593,423

MINORITY INTERESTS 287,181 287,446

STOCKHOLDERS' EQUITY:
Common stock 149,430 149,302
Additional paid-in capital 280,981 256,406
Retained earnings 6,880,580 6,621,646
Accumulated other comprehensive
income, net of income taxes 186,496 163,362
7,497,487 7,190,716
Treasury stock (2,071,793) (2,077,799)

Total stockholders' equity 5,425,694 5,112,917

TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $11,340,521 $9,826,122

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)

Three Months (13 Weeks) Ended

March 29, 2008 March 31, 2007

Operating activities:
Net earnings $409,754 $381,029
Adjustments:
Depreciation 109,662 98,402
Amortization 13,411 2,005
Stock-based compensation 9,635 7,649
Deferred income taxes (8,663) (16,946)
Minority interests 91,769 60,572
Settlement of cash flow hedges (283) (1,584)
Changes in assets and liabilities
(exclusive of acquisitions):
Accounts receivable 33,005 (122,598)
Inventories 8,014 (5,314)
Accounts payable 16,245 220,207
Federal income taxes 189,411 204,993
Salaries, wages and related
accruals (162,496) (232,499)
Other (41,985) (30,406)

Cash provided by operating activities 667,479 565,510

Investing activities:
Capital expenditures (226,238) (91,349)
Sale of interest in affiliate - 29,500
Investment in affiliates (17,118) (8,761)
Disposition of plant and equipment 1,250 178
Acquisitions (net of cash acquired) (1,402,179) (1,060,080)
Purchases of investments (209,605) (74,265)
Proceeds from the sale of investments 392,055 997,433
Proceeds from currency derivative
contracts - 517,241
Settlement of currency derivative
contracts - (511,394)

Cash used in investing activities (1,461,835) (201,497)

Financing activities:
Net change in short-term debt (10,501) 6,096
Proceeds from issuance of long-term debt 400,000 -
Issuance of common stock 6,158 6,601
Excess tax benefits from stock-
based compensation 7,300 6,000
Distributions to minority interests (91,993) (105,600)
Cash dividends (176,556) (181,155)

Cash provided by (used in) financing
activities 134,408 (268,058)

Increase (decrease) in cash and cash
equivalents (659,948) 95,955

Cash and cash equivalents - beginning
of year 1,393,943 785,651

Cash and cash equivalents - end of
three months $733,995 $881,606

SOURCE Nucor Corporation

Nucor Executive Offices, +1-704-366-7000, or fax, +1-704-362-4208