Nucor Corporation
Nucor Corporation was incorporated in Delaware in 1958. The business of Nucor
Corporation and its subsidiaries is the manufacture and sale of steel and steel
products, which accounted for all of the sales and the majority of the earnings.
Products from both segments are marketed principally through in-house sales
forces. The principal competitive factors are price and service. Considerable
competition exists from numerous domestic manufacturers and foreign imports.
During 2000 and 2001, imports of steel increased significantly, much of it at
illegally dumped prices.
The primary raw material for the steel mills segment is ferrous scrap, which
is acquired from numerous sources throughout the country.
The steel mills are also large consumers of electricity and gas. Nucor uses
natural gas purchase contracts to partially manage its exposure to price risk
of natural gas that is used during the manufacturing process. The primary raw
material for the steel products segment is steel, which is primarily purchased
from the steel mills segment. Supplies of raw materials and energy have been,
and are expected to be, adequate to operate the facilities.
Nucor believes that the most significant factors with respect to its competitive
position are the low cost and efficiency of its production processes. The markets
that Nucor serves are tied to capital and durable goods spending and are affected
by changes in economic conditions.