Nucor Long Credit Report

Nucor Long Credit Report - Nucor Corporation 10/03/2011...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Nucor Corporation 10/03/2011 Analyst Opinion: Hold Outlook: Positive Analyst: Nguyen Bui 5% of 6/1/2013 5.85% of 6/1/2018 CUSIP: 670346AJ4 670346AK1 BFG Purchase Date: 11/18/2008 4/23/2009 Original Par: 6000000 3000000 Current BFG Book Value: 5916699.3 3102740.64 BFG Book Price: 98.612 103.425 BFG Impairment 0(???\) 0(??/) Coupon: 5 5.85 Maturity: 6/1/2013 6/1/2018 Market Price: 107.336 116.528 52-Week Range: 106.818-107.955 108.627-112.015 Equity Price: 31.64 (09/30/2011) 52-Week Range: 30.72-49.24 Symbol/Ticker: NUE Page 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Nucor Corporation 10/03/2011 Ratings: CDS Value: 147.13 CDS Implied Default Probability: 12.16% Moody’s Default Probability: .114% Recovery Rating: 40% Headquarters: Charlotte, NC Recommendation: Nucor Corporation with an outlook of positive, recommendation a hold. Heightened Awareness Watch List: NO Impairment: No Impairment Taken to Date: 10/1/2011 Recommended Impairment: Nucor is the second largest minimills steel producer in the United States. In 2010, steel production was 18.3 million tons, and outside steel shipments were 15.8 million tons. Nucor’s goal is to “take care of our customer” by being the safest, highest quality, lowest cost, most productive and most profitable steel and steel products company in the world. It invested a lot into research and development, and has a lean management structure which gives them more efficiency over its competitors. Government plays an important role in steel industry in several ways. It provides tax breaks to support industry growth and enforce international and local environment laws to reduce pollution and protect the environment. Mergers and acquisition have been taking place over the last years as a new strategy as well as to capitalize the economy of scale. Nucor’s earning was positive for the last ten years; it reported negative earning in 2009 due to the crisis. Page 2
Background image of page 2
Nucor Corporation 10/03/2011 The bonds rating remained unchanged since they were issued. With nonresidential construction stabilized, competition becomes Nucor’s largest challenge. Highlights: Nucor Corporation and its affiliates (Nucor), incorporated in 1958, manufacture steel and steel products. Nucor also produces direct reduced iron (DRI) for use in the Company’s steel mills. It operates in three segments: steel mills, steel products and raw materials. Even though Nucor’s operating facilities and customers are located in North America, Nucor does business outside of North America as well. Its operations include various international trading companies that buy and sell steel and steel products manufactured by the company and others. During the year ended December 31, 2010, it entered into an agreement with Mitsui & Co. (U.S.A.) to form a newly created company, NuMit LLC, in which it owns a 50% economic and voting interest. The financial analysis has shown that Nucor has been doing pretty well in the past 5 years by developing the right strategy and executing them well. Their strategy is to develop an efficient management team
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/22/2011 for the course FINANCE BUS M 497R taught by Professor Kimsmith during the Fall '11 term at BYU.

Page1 / 19

Nucor Long Credit Report - Nucor Corporation 10/03/2011...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online