Nucor Reports Results for Third Quarter and First Nine Months of 2009

CHARLOTTE, N.C. โ€” Nucor Corporation (NYSE: NUE) announced today a consolidated net loss of $29.5 million, or $0.10 per diluted share, for the third quarter of 2009, compared to a net loss of $133.3 million, or $0.43 per diluted share, in the second quarter of 2009, an improvement of 78%. The results compare to net income of $734.6 million, or $2.31 per diluted share, in the third quarter of 2008.

In the first nine months of 2009, Nucor reported a consolidated net loss of $352.5 million, or $1.12 per diluted share, compared with net earnings of $1.73 billion, or $5.70 per diluted share, in the first nine months of 2008.

In the third quarter of 2009, Nucorโ€™s consolidated net sales increased 26% to $3.12 billion compared with $2.48 billion in the second quarter of 2009 and decreased 58% compared with $7.45 billion in the third quarter of 2008. Average sales price per ton increased 1% from the second quarter of 2009 and decreased 45% from the third quarter of 2008. Total tons shipped to outside customers were 5,114,000 tons in the third quarter of 2009, an increase of 24% over the second quarter of 2009 and a decrease of 24% from the third quarter of 2008.

In the first nine months of 2009, Nucorโ€™s consolidated net sales decreased 58% to $8.25 billion, compared with $19.51 billion in last yearโ€™s first nine months. Average sales price per ton decreased 32% while total tons shipped to outside customers decreased 38% compared to the first nine months of 2008.

The average scrap and scrap substitute cost per ton used in the third quarter of 2009 was $299, a decrease of 4% compared with $312 in the second quarter of 2009 and a decrease of 44% from $533 in the third quarter of 2008. The average scrap and scrap substitute cost per ton used in the first nine months of 2009 decreased 29% to $312 compared to $439 in the first nine months of 2008.

Nucor recorded a credit to value inventories using the last-in, first-out (LIFO) method of accounting of $120 million in the third quarter of 2009, compared with a credit of $125 million in the second quarter of 2009 and a charge of $140 million in the third quarter of 2008. In the first nine months of 2009, the LIFO credit was $350 million compared to a charge of $423 million in the first nine months of 2008.

Total energy costs decreased approximately $9 per ton from the second quarter of 2009 due to lower electricity and natural gas prices combined with the productivity benefits of increased utilization. Total energy costs decreased approximately $8 per ton from the third quarter of 2008 to the third quarter of 2009. During the first nine months of 2009, total energy costs increased $2 per ton compared with the first nine months of 2008.

As expected and as discussed in our guidance, third quarter results include a burden from the accelerated consumption of high-cost pig iron inventories at our sheet mills. These inventories were purchased prior to the collapse in the economy and raw materials pricing in last yearโ€™s fourth quarter. For the third quarter, the negative impact of the high-cost pig iron inventories was approximately $180 million, or about $0.37 per share after-tax. Through the first nine months of the year, the impact was approximately $420 million, or more than $0.85 per share after-tax. The consumption of the high-cost pig iron inventories was completed by the close of the third quarter.

Pre-operating and start-up costs of new facilities increased from $29.7 million in the third quarter of 2008 to $47.1 million in the third quarter of 2009 and increased from $74.8 million in the first nine months of 2008 to $111.9 million in the first nine months of 2009. In 2009, these costs primarily related to the SBQ mill in Memphis, Tennessee, the Castrip(ยฎ) project in Blytheville, Arkansas, the proposed iron-making facility, and the galvanizing line in Decatur, Alabama.

Our liquidity position remains strong with $2.22 billion in cash and cash equivalents and short-term investments and an untapped $1.3 billion revolving credit facility that matures in November 2012.

In September, Nucorโ€™s board of directors declared a cash dividend of $0.35 per share payable on November 11, 2009 to stockholders of record on September 30, 2009. This dividend is Nucorโ€™s 146th consecutive quarterly cash dividend, a record we expect to continue.

While overall steel mill utilization increased from 46% in the second quarter to 69% in the third quarter, the increase was primarily due to the end of customer destocking. Our view remains that there has been little improvement in real demand and the uncertainty in our economy is still very high. We also continue to believe that real demand is in for a long, slow recovery. The fourth quarter presents its own seasonal issues that are separate of the general economic slowdown due to the holidays and year-end plant shutdowns by some of our customers. While our fourth quarter results will benefit from a significant improvement in raw material costs, our results could be negatively impacted by the potential of lower operating volumes/rates in both sheet and bar products. Customers are currently taking advantage of shortened mill lead times adding to the difficulty of forecasting volumes for the fourth quarter. We will again provide quantitative guidance after the midpoint between our quarterly earnings releases.

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 โ€“ 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 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 Americaโ€™s largest recycler.

Certain statements contained in this news release are โ€œforward-looking statementsโ€ that involve risks and uncertainties. Factors that might cause the Companyโ€™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 Nucorโ€™s regulatory filings with the Securities and Exchange Commission, including those in Nucorโ€™s December 31, 2008 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 Nucorโ€™s conference call in which management will discuss Nucorโ€™s third quarter results on October 22, 2009 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
โ€”โ€”โ€”โ€”โ€”-
(in thousands)

Three Months (13 Weeks) Ended
โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”
Percentage
Oct. 3, 2009 Sept. 27, 2008 Change
โ€”โ€”โ€”โ€” โ€”โ€”โ€”โ€”โ€“ โ€”โ€”โ€”-
Steel Mills:
Production 4,433 5,510 -20%
Total shipments 4,312 5,438 -21%
Outside shipments 3,705 4,688 -21%

Steel Products:
Joist production 69 119 -42%
Deck sales 84 133 -37%
Cold finished sales 87 115 -24%
Fabricated concrete
reinforcing steel
sales 280 258 9%

Nine Months (39 Weeks) Ended
โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”
Percentage
Oct. 3, 2009 Sept. 27, 2008 Change
โ€”โ€”โ€”โ€” โ€”โ€”โ€”โ€”โ€“ โ€”โ€”โ€”-
Steel Mills:
Production 10,276 17,384 -41%
Total shipments 10,119 17,506 -42%
Outside shipments 8,707 15,285 -43%

Steel Products:
Joist production 194 391 -50%
Deck sales 232 388 -40%
Cold finished sales 243 394 -38%
Fabricated concrete
reinforcing steel
sales 743 669 11%

Unaudited figures are as follows:

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

Three Months (13 Weeks) Nine Months (39 Weeks)
Ended Ended
โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”- โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”
Oct. 3, 2009 Sept. 27, 2008 Oct. 3, 2009 Sept. 27, 2008
โ€”โ€”โ€”โ€” โ€”โ€”โ€”โ€”โ€“ โ€”โ€”โ€”โ€” โ€”โ€”โ€”โ€”โ€“

Net sales $3,120,005 $7,447,520 $8,252,352 $19,512,388
โ€”โ€”โ€”- โ€”โ€”โ€”- โ€”โ€”โ€”- โ€”โ€”โ€”โ€“

Costs, expenses
and other:
Cost of
products sold 3,000,851 5,990,407 8,319,079 15,941,654
Marketing,
administrative
and
other expenses 105,913 215,755 338,214 605,641
Interest
expense, net 34,725 23,030 99,047 68,109
โ€”โ€” โ€”โ€” โ€”โ€” โ€”โ€”
3,141,489 6,229,192 8,756,340 16,615,404
โ€”โ€”โ€” โ€”โ€”โ€” โ€”โ€”โ€” โ€”โ€”โ€”-

Earnings
(loss) before
income taxes
and
noncontrolling
interests (21,484) 1,218,328 (503,988) 2,896,984
Provision for
(benefit
from) income
taxes (16,173) 407,525 (180,383) 915,966
โ€”โ€”- โ€”โ€”- โ€”โ€”โ€“ โ€”โ€”-
Net earnings (loss) (5,311) 810,803 (323,605) 1,981,018
Earnings
attributable to
noncontrolling
interests 24,227 76,213 28,915 255,920
โ€”โ€” โ€”โ€” โ€”โ€” โ€”โ€”-
Net earnings (loss)
attributable to
Nucor stockholders $(29,538) $734,590 $(352,520) $1,725,098
======== ======== ========= ==========

Net earnings (loss)
per share:
Basic ($0.10) $2.31 ($1.12) $5.71
Diluted ($0.10) $2.31 ($1.12) $5.70

Average shares
outstanding:
Basic 315,173 316,713 314,743 301,156
Diluted 315,173 317,013 314,743 301,764

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”
(In thousands)

Oct. 3, 2009 Dec. 31, 2008
โ€”โ€”โ€”โ€” โ€”โ€”โ€”โ€”-
ASSETS
Current assets:
Cash and cash equivalents $1,957,671 $2,355,130
Short-term investments 263,472 -
Accounts receivable, net 1,156,510 1,228,807
Inventories 1,310,114 2,408,157
Other current assets 514,785 405,392
โ€”โ€”- โ€”โ€”-

Total current assets 5,202,552 6,397,486

Property, plant and equipment, net 4,071,229 4,131,861

Goodwill 1,794,761 1,732,045

Other intangible assets, net 915,993 946,545

Other assets 685,477 666,506
โ€”โ€”- โ€”โ€”-

Total assets $12,670,012 $13,874,443
=========== ===========

LIABILITIES
Current liabilities:
Short-term debt $3,428 $8,622
Long-term debt due within one
year โ€“ 180,400
Accounts payable 749,246 534,161
Federal income taxes payable โ€“ 199,044
Salaries, wages and related
accruals 207,912 580,090
Accrued expenses and other
current liabilities 351,965 351,875
โ€”โ€”- โ€”โ€”-

Total current liabilities 1,312,551 1,854,192

Long-term debt due after one year 3,086,200 3,086,200

Deferred credits and other
liabilities 687,341 677,370
โ€”โ€”- โ€”โ€”-

Total liabilities 5,086,092 5,617,762
โ€”โ€”โ€” โ€”โ€”โ€”

EQUITY
Nucor stockholdersโ€™ equity:
Common stock 149,863 149,628
Additional paid-in capital 1,665,862 1,629,981
Retained earnings 7,175,488 7,860,629
Accumulated other comprehensive loss,
net of income taxes (63,295) (190,262)
Treasury stock (1,514,465) (1,520,772)
โ€”โ€”โ€”- โ€”โ€”โ€”-
7,413,453 7,929,204

Noncontrolling interests 170,467 327,477
โ€”โ€”- โ€”โ€”-

Total equity 7,583,920 8,256,681
โ€”โ€”โ€” โ€”โ€”โ€”

Total liabilities and equity $12,670,012 $13,874,443
=========== ===========

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€“
(In thousands)

Nine Months (39 Weeks)
Ended
โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”
Oct. 3, 2009 Sept. 27, 2008
โ€”โ€”โ€”โ€” โ€”โ€”โ€”โ€”โ€“

Operating activities:
Net earnings
(loss) $(323,605) $1,981,018
Adjustments:
Depreciation 367,966 354,291
Amortization 54,138 51,056
Stock-based
compensation 43,460 38,428
Deferred income
taxes 51,104 (111,536)
Changes in assets and
liabilities (exclusive
of acquisitions):
Accounts
receivable 92,210 (437,792)
Inventories 1,113,104 (1,083,823)
Accounts
payable 212,291 199,364
Federal
income taxes (381,153) 163,514
Salaries,
wages and
related
accruals (366,261) 165,016
Other 94,689 2,714
โ€”โ€” โ€”โ€“

Cash provided by
operating
activities 957,943 1,322,250
โ€”โ€”- โ€”โ€”โ€”

Investing activities:
Capital
expenditures (316,024) (806,152)
Investment in and
advances to
affiliates (60,295) (704,945)
Disposition of
plant and
equipment 10,486 8,676
Acquisitions (net
of cash acquired) (24,714) (1,827,165)
Purchases of
investments (261,389) (234,461)
Proceeds from the
sale of
investments โ€“ 392,055
Proceeds from
currency
derivative
contracts โ€“ 1,441,863
Settlement of
currency
derivative
contracts โ€“ (1,424,291)
โ€”- โ€”โ€”โ€”-

Cash used in
investing
activities (651,936) (3,154,420)
โ€”โ€”โ€“ โ€”โ€”โ€”-

Financing activities:
Net change in
short-term debt (5,222) (143,480)
Proceeds from the
issuance of long-
term debt โ€“ 989,715
Repayment of long-
term debt (180,400) -
Bond issuance
costs โ€“ (6,938)
Issuance of
common stock 3,556 1,995,921
Excess tax
benefits from
stock-based
compensation (3,200) 10,600
Distributions to
noncontrolling
interests (186,104) (252,569)
Cash dividends (332,096) (493,002)
Acquisition of
treasury stock โ€“ (7,684)
โ€”- โ€”โ€”

Cash provided by
(used in) financing
activities (703,466) 2,092,563
โ€”โ€”โ€“ โ€”โ€”โ€”

Increase (decrease)
in cash and cash
equivalents (397,459) 260,393

Cash and cash
equivalents -
beginning of year 2,355,130 1,393,943
โ€”โ€”โ€” โ€”โ€”โ€”

Cash and cash
equivalents โ€“ end
of nine months $1,957,671 $1,654,336
========== ==========
โ€“ Nucor Corporation