NUCOR CORP 10-Q Summary: Quarter Ended September 30, 1995
Business Context and Reporting Period
This Form 10-Q covers the third quarter and first nine months ended September 30, 1995. Nucor Corporation, a steel producer, reported 87,473,194 shares of common stock outstanding as of the period end. The financial data is unaudited and subject to year-end adjustments.
Key Financial Metrics
| Metric | 9 Months Ended Sep 30, 1995 | 9 Months Ended Oct 1, 1994 | 3 Months Ended Sep 30, 1995 | 3 Months Ended Oct 1, 1994 |
|---|---|---|---|---|
| Net Sales | $2,582,431,557 | $2,176,227,606 | $860,544,790 | $786,424,788 |
| Net Earnings | $200,245,171 | $149,083,907 | $63,003,044 | $64,523,822 |
| Earnings Per Share (Diluted) | $2.29 | $1.70 | $0.72 | $0.74 |
| Operating Cash Flow | $365,950,453 | $307,194,513 | N/A | N/A |
| Capital Expenditures | $142,948,212 | $154,531,802 | N/A | N/A |
| Total Assets | $2,234,813,368 | $2,001,920,165 | N/A | N/A |
| Total Debt (Current + Long-term) | $125,000,000 | $173,250,000 | N/A | N/A |
| Cash and Short-term Investments | $259,465,228 | $101,930,479 | N/A | N/A |
Margins: Net margins were approximately 15% for the third quarter of 1995 and 16% for the first nine months of 1995.
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 10% in the third quarter and 20% for the first nine months compared to the prior year. The nine-month increase was driven 70% by volume and 30% by price; the third-quarter increase was split evenly between volume and price.
- Profitability: While nine-month net earnings rose 34% due to volume, third-quarter net earnings declined 2% primarily due to decreased margins.
- Costs: Raw material costs, the major component of cost of goods sold, increased approximately 10% in the third quarter and over 5% for the nine-month period. Profit sharing costs decreased 15% in the quarter but increased 20% for the nine-month period.
- Liquidity: Cash and short-term investments more than doubled to $259.5 million. The current ratio improved to 1.8 from 1.7. Long-term debt decreased by $48.25 million during the nine-month period.
Outlook, Risks, and Management Commentary
- Capital Expenditures: Management projects total capital expenditures for 1995 to exceed $200 million. Expenditures for the first nine months decreased more than 5% year-over-year.
- Liquidity Outlook: Funds from operations, existing credit facilities, and new borrowings are expected to be adequate for future capital and working capital needs.
- Dividends: Dividends declared were $0.07 per share for the quarter and $0.21 for the nine months, compared to $0.045 and $0.135 in the prior year periods.
- Risks/Contingencies: The filing notes that results are subject to year-end adjustments. No specific legal contingencies or unusual items were detailed in the provided text beyond standard operational fluctuations in raw material prices.
Investor Verification Checklist
- Verify the sustainability of the 10% increase in raw material costs and its impact on future margins.
- Confirm the projected $200 million capital expenditure budget for the full year 1995.
- Review the composition of the $259 million cash balance to ensure liquidity for upcoming debt maturities and capex.
- Monitor the trend in profit sharing costs, which fluctuate with pre-tax earnings, as a variable expense driver.
- Check for any year-end adjustments that may alter the unaudited interim figures presented.