Nucor Corporation (NUE), a manufacturer of steel and steel products, has reported a 38.94 percent plunge in profit for the quarter ended Apr. 04, 2015. The company has earned $67.80 million, or $0.21 a share in the quarter, compared with $111.03 million, or $0.35 a share for the same period last year. Revenue during the quarter dropped 13.88 percent to $4,399.44 million from $5,108.44 million in the previous year period. Gross margin for the quarter contracted 83 basis points over the previous year period to 6.55 percent. Total expenses were 96.28 percent of quarterly revenues, up from 95.41 percent for the same period last year. That has resulted in a contraction of 87 basis points in operating margin to 3.72 percent.
Operating income for the quarter was $163.72 million, compared with $234.72 million in the previous year period.
Operating cash flow improves significantly
Nucor Corporation has generated cash of $563.69 million from operating activities during the quarter, up 277.78 percent or $414.48 million, when compared with the last year period.
The company has spent $93.82 million cash to meet investing activities during the quarter as against cash outgo of $331.50 million in the last year period. It has incurred net capital expenditure of $74.92 million on net basis during the quarter, down 70.45 percent or $178.60 million from year ago period.
The company has spent $324.84 million cash to carry out financing activities during the quarter as against cash outgo of $145.90 million in the last year period. It has made net debt repayment of $180.24 million. It has raised net of $0.42 million by selling common stocks.
Cash and cash equivalents stood at $1,165.86 million as on Apr. 04, 2015, up 1.16 percent or $13.32 million from $1,152.54 million on Apr. 05, 2014.
Working capital decreases marginally
Nucor Corporation has witnessed a decline in the working capital over the last year. It stood at $4,338.18 million as at Apr. 04, 2015, down 1.72 percent or $75.72 million from $4,413.90 million on Apr. 05, 2014. Current ratio was at 3.85 as on Apr. 04, 2015, up from 3.33 on Apr. 05, 2014.
Cash conversion cycle (CCC) has increased to 79 days for the quarter from 66 days for the last year period. Days sales outstanding went up to 40 days for the quarter compared with 35 days for the same period last year.
Days inventory outstanding has increased to 59 days for the quarter compared with 54 days for the previous year period. At the same time, days payable outstanding went down to 20 days for the quarter from 22 for the same period last year.
Debt remains almost stable
Total debt of Nucor Corporation remained almost stable for the quarter at $4,403.79 million, when compared with the last year period. Total debt was 29.64 percent of total assets as on Apr. 04, 2015, compared with 29.15 percent on Apr. 05, 2014. Debt to equity ratio was almost stable at 0.56 as on Apr. 04, 2015, when compared with the last year.
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