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Nucors Position Of Strength
Low & Highly Variable Cost Structure
Highly Flexible Production Capabilities
Product Diversification and Market Leadership Positions
Nucors People = THE RIGHT PEOPLE for our culture!!!
Strong Balance Sheet Conservative Financial Practices Healthy Cash Flow Generation Through The
Highest Credit Rating Among North American Steel Producers, tied for highest Globally
No Pension Obligations and immaterial Post-Retirement Medical Liabilities
Superior Financial Flexibility
Nucors Financial Strength
Nucors Highly Flexible Production Capability
Nucors highly flexible production capability allows us to almost instantaneously adjust output to match market demand: Electric arc furnace
production process No lay-off practice Highly productive
Nucors People Our Biggest Competitive Advantage
Our Culture Drives Nucors Success
A LONG-TERM FOCUS!!! SAFETY FIRST, ALWAYS!!!
A DEEP COMMITMENT TO EMPLOYEES!!! TEAMWORK PAY FOR PERFORMANCE / INNOVATION / CONTINUAL
A DECENTRALIZED STRUCTURE WITH FEW LAYERS OF MANAGEMENT
NUCORS EMPLOYEES TAKE OWNERSHIP OF TAKING CARE OF OUR CUSTOMERS, & OUR SHAREHOLDERS, AND EACH OTHER!!!
NUCORS FOCUS: PROFITABLE GROWTH!!!
NUCORS 5 PRONGED GROWTH STRATEGY
1. OPTIMIZE EXISTING OPERATIONS
2. RAW MATERIALS STRATEGY
3. GREENFIELD GROWTH (technology & market niches)
4. INTERNATIONAL GROWTH via joint ventures
5. STRATEGIC ACQUISITIONS
World-Class SteelmakersWell-positioned for the future
On a weighted-average basis, the 10 companies with the highest rankings are:
2.Nucor3. Novolipetsk. 4. Severstal. 5. ArcelorMittal. 6. Nippon Steel.7. CSN. 8. SAIL9. JFE. 10. SDI
Nucor Steel Mills-23
Nucor Steel Mills Annual Production Capacity (tons)
Hot Rolled Sheet
(Cold Rolled Sheet 4.1 million)(Galvanized 2.0 million)
Bars 9.4 million
Structural 3.7 million
Plate 2.8 million
Total Steel (and Growing) 26.7 million
Nucor Steel Products
Nucor Steel Products Annual Production Capacity (tons)
Steel Joists 715,000
Steel Deck 530,000
Cold Finished Bars 860,000
Steel Buildings 465,000
Rebar Fabrication 1,658,000
Metal Grating 102,500
Total Steel Products(and Growing) 4.6 million
Nucor Proposed MexicanProcessing Center
NuMit Joint Venture
Nucor Sheet Mill
Steel Technologies-23UnitsOver 2.1 million tons /yr
Nucor Raw Materials DJJ/DRI
Trinidad Nu-Iron DRI Facility
Nucor Steel Louisiana Selected St. James Parrish, Louisiana for construction of $750 million iron making
facility. 2.5 million tons annual capacity of direct reduced iron (DRI). First phase of a multi-phase plan that may include an additional DRI facility, coke plant, blast furnace, & steel mill.
Next step implementing Nucors raw materials strategys goal of controlling 6 to 7 million tons-per-year supply of high quality scrap substitutes (builds on 2.0 million tons at Trinidad DRI plant, Nu-Iron).
Leverages strong skill set established by our Nu-Iron Team in applying direct reduction technology achieved world class DRI quality levels in metallization rates, iron content, and productivity.
Consistent with Nu-Irons highly successful business model, Nucor has secured for the Louisiana DRI facility a long-term supply of natural gas at an attractive cost by means of E&P drilling (on-shore) partnership with one of North Americas largest natural gas producers.
Nucors Market Leadership in North America
Cold Finished Bar Steel
Rebar Fabrication, Distribution, & Placement Company
Sheet SteelPlate Steel
#1North AmericanMarket Leader
#2North American Market Leader
#3North American Market Leader
Growth Platform International Duferdofin-Nucor beams & long products joint venture
International Sales Offices
NUCOR TRADINGNUCOR INTERNATIONAL SALES
USAs biggest economic problem today that is NOT being dealt with:
Job Losses in Recent U.S. Recessions(through U.S. BLS May 2011 Employment Report issued June 3, 2011)
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41C
Months After Peak Job Month
Current Recession 2001 Recession 1990 Recession 1981 Recession 1974 Recession
Official vs. Real Unemployment(accounts for part-time workers who used to work full timeand people who have stopped looking for work)
U.S. Bureau of Labor Statistics, Labor Force Statistics (Table A-12. Alternative measures of labor underutilization).
Jul-07Aug-07Sep-07Oct-07Nov-07Dec-07Jan-08Feb-08Mar-08Apr -08May-08Jun-08Jul-08Aug-08Sep-08Oct- 08Nov-08Dec-08Jan-09Feb-09Mar-09Apr-09May-09Jun-09Jul-09Aug-09Sep-09Oct-09Nov-09Dec-09Jan-10Feb-10Mar-10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-10Dec-10Jan-11Feb-11Mar-11Apr-11May-11
Official Unemployment (U-3) Real Unemployment (U-6)
U-6 Unemployment Rate
U-6 Unemployment Rate (as reported by U.S. Bureau of Labor Statistics)
Unemployed 14,884 13,747 13,914
Involuntary Part-Time Workers 8,776 8,600 8,548
Marginally Attached Workers 2,223 2,466 2,206
Real / U-6 Unemployed" 25,883 24,813 24,668
"Real Unemployment Rate" 16.5% 15.9% 15.8%
Unemployed for 27 Weeks or More!
Source: U.S. Bureau of Labor Statistics, Unemployed Persons by Duration of Employment (in thousands) 27 weeks and over; Not Seasonally Adjusted.
Shaded Areas Indicate U.S. Recessions
Quarterly % Change Increase
Increase No Change Decrease Increase No ChangeDecreas
How do you expect your companys sales to change in the next six months?
87% 12% 2% -5% 92% 8% 0%
How do you expect your companys U.S. capital spending to change in the next six months?
61% 32% 7% -1% 62% 32% 6%
How do you expect your companys U.S. employment to change in the next six months?
51% 38% 11% -1% 52% 37% 11%
BRT Survey ResultsThe surveys key findings from this quarter and the first quarter of 2011 include:
Number One Focus 2011-2020
Rules Based/Enforced Free Trade
Free and open markets where governments enforce the rules of trade
Healthy exchange of imports and exports among nations
Joint ventures among companies from a multitude of countries
Innovation and exchange of ideas Balanced trade volumes and economic
Increasing global employment with rising standards of living
BARRIERS TO SOLUTIONS
EXTERNALTRADE MERCANTILISM, SOEs
WORLD STEEL ASSOCIATION ANNUAL MEETING-PANELTHE 3 GREATEST CHALLENGES FACING THE GLOBAL
STEEL INDUSTRY OVER THE NEXT 10 YEARS
RAW MATERIAL/COMMODITY PRICES
ENVIRONMENTAL ISSUES---CARBON, etc.
Government intervention to manipulate currency for cost advantages
Government barriers and subsidies to depress imports and inflate exports
Government-created monopolies to keep foreign companies out
Rampant intellectual property theft Dumping of goods into world markets at
prices less than the cost to manufacture Dangerous global trade imbalances and
Who is the Real Protectionist?
Illegal and Abusive Subsidies
State Ownership and ControlHundreds of large companies are operated as state-owned enterprises in China, including more than a dozen of the worlds top 500 companies.