nucor corporation
Post on 10-Nov-2015
43 Views
Preview:
DESCRIPTION
TRANSCRIPT
-
1
2014 Global Metals, Mining & Steel Conference
MAY 13, 2014
-
Forward-Looking Statements
Certain statements made in this presentation 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. These forward-looking statements reflect the Companys best judgment based on current information, and although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this report. Factors that might cause the Companys 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 changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (2) availability and cost of electricity and natural gas which could negatively affect our cost of steel production or could result in a delay or cancellation of existing or future drilling within our natural gas working interest drilling programs; (3) critical equipment failures and business interruptions; (4) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the U.S.; (5) competitive pressure on sales and pricing, including pressure from imports and substitute materials; (6) impairment in the recorded value of inventory, equity investments, fixed assets, goodwill or other long-lived assets; (7) uncertainties surrounding the global economy, including the severe economic downturn in construction markets and excess world capacity for steel production; (8) fluctuations in currency conversion rates; (9) U.S. and foreign trade policy affecting steel imports or exports; (10) significant changes in laws or government regulations affecting environmental compliance, including legislation and regulations that result in greater regulation of greenhouse gas emissions that could increase our energy costs and our capital expenditures and operating costs or cause one or more of our permits to be revoked or make it more difficult to obtain permit modifications; (11) the cyclical nature of the steel industry; (12) capital investments and their impact on our performance; and (13) our safety performance.
2
-
-$300
$200
$700
$1,200
$1,700
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
NET INCOME (Millions of dollars)
3
-
NUCORS GROWTH DRIVEN BY
OUR POSITION OF STRENGTH
4
FINANCIAL STRENGTH
LOW COST STRUCTURE
FLEXIBLE & RELIABLE PRODUCTION
PRODUCT BREADTH
MARKET LEADERSHIP
OUR CULTURE
-
Strong cash flow generation through the cycle
Investment grade credit rating (only North American steel producer with this competitive advantage)
Conservative Financial Practices
No Material Legacy Liabilities
5
FINANCIAL STRENGTH
-
$0
$600
$1,200
$1,800
$2,400
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Financial Strength Cash From Operations 2000-2013 (millions of dollars)
Cyclical Trough To Cyclical Trough
More than 2X
Average 01-03 $495 million
Average 09-13 $1.1 Billion
6
-
LOW COST STRUCTURE =
INDUSTRY LEADING RETURNS
5.9%7.1%
13.6%
15.5%
0
2
4
6
8
10
12
14
16
18
ArcelorMittal U.S. Steel Steel Dynamics Nucor
Average ROIC 2004-2013
ArcelorMittal
U.S. Steel
Steel Dynamics
Nucor
7
-
FLEXIBLE CAPACITY
Electric arc furnaces
High productivity
No lay-off practice
8
BEST-IN-CLASS
MARKET RESPONSIVENESS!!!
-
Nucor Steel Decatur
Making Steel for 29 Days without Power.
Now thats Reliability.
At Nucor, we respect that our customers rely on us.
So when a tornado knocked out power to our Decatur mill for 29 days, we refused to let a
natural disaster affect our customers. Immediately, we informed every customer
about what happened, and assured them that our sister mills would fill their orders.
While they produced the steel, the rest of our teammates got the mill running
and donated time to rebuilding the community.
Then 29 days later, the power came back on and illuminated what we accomplished.
Our customers received their steel to spec and on time.
Exactly what our customers expect, tornado or no tornado.
9
-
2013 Sales Tons
Sheet - 32%
Bars - 22%
Structural - 11%
Plate - 10%
Products - 11%
Scrap - 14%
DIVERSIFIED PRODUCT MIX
10
-
MARKET LEADERSHIP BY SIZE IN NORTH AMERICA
Structural Steel Bar Steel
Rebar Steel
Cold Finished Bar Steel
Steel Joist
Steel Deck
Rebar Fabrication, Distribution, & Placement
Steel Piling Distribution
Metal Buildings
Sheet Steel Plate Steel
#1 North American
Market Leader
#2 North American
Market Leader
#3 North American
Market Leader
11
-
NUCORS PEOPLE OUR BIGGEST COMPETITIVE ADVANTAGE
12
-
BUILDING EARNINGS POWER
FOR THE NEXT UP-CYCLE
13
-
GROWING NUCORS EARNINGS POWER
LOUISIANA DRI FACILITY
14
-
GROWING NUCORS EARNINGS POWER
LOUISIANA DRI FACILITY
15
-
GROWING NUCORS EARNINGS POWER
WIDE-LIGHT PROJECT
16
-
GROWING NUCORS EARNINGS POWER
HEAT TREAT & NORMALIZED PLATE
17
-
GROWING NUCORS EARNINGS POWER
SHEET PILING PRODUCT EXPANSION
18
-
19
Click to edit Master text styles
Second level
Third level
Fourth level
Fifth level
19
19
GREAT CHALLENGES PRESENT
GREAT OPPORTUNITIES TO THE
RIGHT PEOPLE THE NUCOR TEAM
NUCORS BEST YEARS ARE STILL AHEAD OF US
top related