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Nucor Annual Report (Amendment), Year Ended Dec 31, 2005

Filing Date
Filed November 20, 2006
Period End
December 31, 2005
Security
NUE
In the record · 2016–202610-K1110-Q328-K111

NUE filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 111 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Deal closed8-K · Jul ’19Jul ’19
  3. Leadership change8-K · Mar ’22Mar ’22
  4. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K/A filed November 20, 2006. Cited figures are marked; the original filing is the authoritative source.

Nucor Corporation filed this Form 10-K/A on November 20, 2006 to amend its 2005 annual report (originally filed March 7, 2006).

The amendment restates the 2005 financial statements to reclassify $857.4 milliona of variable rate demand notes (VRDN's) from cash equivalents to short-term investments. The company states this restatement had no impact on net earnings, total current assets, changes in stockholders' equity, or cash flows from operating and financing activities. The amendment also adjusts all share and per share amounts for a two-for-one stock split effective May 31, 2006.

For 2005, Nucor reported record net sales of $12.70 billionb, net earnings of $1.31 billion, and diluted EPS of $4.13 (restated for the split), compared with $11.38 billion, $1.12 billion, and $3.51 in 2004. Net earnings as a percentage of net sales were 10.3%, and return on average equity was 33.9%. Cash provided by operating activities was a record $2.14 billion.

Cash and cash equivalents were $980.2 millionc, with short-term investments of $857.4 million at year-end. Working capital was $2.82 billion and the current ratio was 3.2. Long-term debt was $923.6 million, and the company repurchased about 11.1 million shares for roughly $291.2 million in 2005.

Management describes Nucor as the nation's largest recycler and North America's most diversified steel producer, with two segments: steel mills and steel products. The company expects 2006 capital expenditures of approximately $400.0 milliond, and it noted that a supplemental dividend of about $1.00 per share was estimated to be paid over the following four quarters. The filing also reports an annualized dividend rate of $1.40 per share following the February 2006 increase.

02—Key points

Key Highlights

  1. Restatement reclassifies $857.4 million of VRDN's from cash equivalents to short-term investments; the filing states no effect on net earnings, total current assets, equity changes, or operating and financing cash flows.
  2. 2005 net sales rose 12% to $12.70 billion, and net earnings rose 17% to a record $1.31 billion.
  3. Diluted EPS was $4.13 for 2005 versus $3.51 in 2004, after adjustment for the two-for-one stock split effective May 31, 2006.
  4. Cash provided by operating activities was a record $2.14 billion in 2005, up 108% from $1.02 billion in 2004.
  5. Return on average stockholders' equity was 33.9% in 2005, compared with 38.7% in 2004.
  6. Nucor repurchased about 11.1 million shares for approximately $291.2 million in 2005, leaving about 25.8 million shares authorized.
  7. The annualized dividend rate was set at $1.40 per share, including a $0.25 quarterly supplemental dividend, with 2006 capital expenditures projected at about $400.0 million.

03—Questions

Frequently Asked Questions

  1. Why did Nucor file this amended 10-K?

    The filing restates the 2005 financial statements to present variable rate demand notes as short-term investments rather than cash equivalents, based on the original maturity dates of the underlying bonds. It also adjusts share and per share amounts for the two-for-one stock split effective May 31, 2006.

  2. Did the restatement affect Nucor's reported profits or cash flow from operations?

    No. The company states the restatement had no impact on net earnings, total current assets, changes in stockholders' equity, or cash flows from operating and financing activities. It did change reported cash and cash equivalents, which fell from $1.84 billion as originally reported to $980.2 million as restated, and it changed investing cash flows.

  3. How did Nucor perform financially in 2005?

    Nucor reported record net sales of $12.70 billion and record net earnings of $1.31 billion, with net earnings at 10.3% of net sales. Average sales price per ton rose 4% to $621, and total shipments to outside customers rose 7%.

  4. What are Nucor's dividend and share repurchase plans?

    Nucor paid $0.67 per share in dividends in 2005 and raised its annualized rate to $1.40 per share in February 2006, including a $0.25 quarterly supplemental dividend. In 2005 it repurchased about 11.1 million shares, and about 25.8 million shares remain authorized for repurchase.

  5. What does Nucor expect for capital spending and capacity in 2006?

    Nucor projects 2006 capital expenditures of approximately $400.0 million, an increase of 21% over 2005, mainly for the construction and refurbishment of the direct reduced iron plant relocated to Trinidad. Current estimated annual steel capacity is about 25,000,000 tons.

04—Continue

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