Nucor 2013 Annual Report Download - page 26

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25
Because we are such a large user of energy, material changes in energy costs per ton can significantly affect our gross margins as well.
Lower energy costs per ton increase our gross margins. Generally, our energy costs per ton are lower when the average utilization rates
of all operating facilities in our steel mills segment are higher.
Changes in marketing, administrative and other expenses, particularly profit sharing costs, can have a material effect on our results of
operations for a reporting period as well. Profit sharing costs vary significantly from period to period as they are based upon changes in
our pre-tax earnings and are a reflection of our pay-for-performance system that is closely tied to our levels of production.
EVALUATING OUR FINANCIAL CONDITION
We evaluate our financial condition each reporting period by focusing primarily on the amounts of and reasons for changes in cash provided
by operating activities, our current ratio, the turnover rate of our accounts receivable and inventories, the amount and reasons for changes
in cash used in investing activities, the amounts and reasons for changes in cash provided by or used in financing activities and our cash
and cash equivalents and short-term investments position at period end. Our conservative financial practices have served us well in the past
and are serving us well today. As a result, our financial position remains strong despite the negative effects on our business of the continued
weakness in the domestic and global economies.
COMPARISON OF 2013 TO 2012
RESULTS OF OPERATIONS
NET SALES
Net sales to external customers by segment for 2013 and 2012 were as follows:
(in thousands)
Year Ended December 31, 2013 2012 % Change
Steel mills $13,311,948 $13,781,797 -3%
Steel products 3,607,333 3,738,381 -4%
Raw materials 2,132,765 1,909,095 12%
Total net sales to external customers $19,052,046 $19,429,273 -2%
Net sales for 2013 decreased 2% from the prior year. The average sales price per ton decreased 5% from $841 in 2012 to
$803 in 2013, while total tons shipped to outside customers increased 3% in 2013 as compared to 2012.
Net sales in the fourth quarter of 2013 increased 10% compared with the fourth quarter of 2012 due to a 10% increase in
tons shipped to outside customers. The average sales price per ton was $813 in the fourth quarters of 2013 and 2012.
year
200
400
600
800
1,000
08 09
dollars
AVERAGE SALES PRICE PER TON
10 11 1312
5,000
10,000
15,000
20,000
25,000
thousands of tons
TOTAL TONS SOLD TO OUTSIDE CUSTOMERS