Nucor Valuation Analysis

Nucor Corporation

NucorNucor CorporationValuation Analysis of Thin-Slab Caster MillChange the Red Numbers Only:Key Assumptions in valuation of mill:Operating rate after 199285%Price trend per year after 1989-3%Price per ton in 1989$325Experience effect on costs0.9Production Cost in 1989250b=0.15Weighted average cost of capital10%Salvage value of mill in 2000$0Valuation Analysis of Mill19871988198919901991199219931994199519961997199819992000Tons sold (Thousands)0050400650850850850850850850850850850Cumulative Volume produced504501100195028003650450053506200705079008750Price per ton00325317309301294286279272265259252246Cash cost per ton00250250218200189182176172168165162159All numbers below are in $MillionsRevenues0016.3126.8200.8256.0249.6243.4237.3231.4225.6220.0214.5209.1Cash costs0012.5100.0141.9170.0160.9154.6149.7145.9142.6139.9137.5135.3Depreciation0022.522.522.522.522.522.522.522.522.522.522.522.5Operating earnings00-18.84.336.563.566.266.365.163.060.557.654.551.2Profit sharing00-1.90.43.66.46.66.66.56.36.05.85.45.1Start-up costs0015150000000000Pre-tax income00-31.9-11.232.857.259.659.758.656.754.451.849.046.1Tax00-10.8-3.811.219.420.320.319.919.318.517.616.715.7EBIAT00-21.0-7.421.737.739.339.438.737.435.934.232.430.4Depreciation0022.522.522.522.522.522.522.522.522.522.522.522.5Cash flow ops001.515.144.260.261.861.961.259.958.456.754.952.9Cash flow ops001.515.144.260.261.861.961.259.958.456.754.952.9Invest NWC00-1.6-11.1-7.4-5.50.60.60.60.60.60.60.521.4CAPEX-10-140-13000000000000Salvage Value00000000000000Cash flow to Capital-10-140-130.24.136.854.762.562.561.860.559.057.355.474.4Net Present Value:19.21Price TrendExperience19.21-0.05-0.02500.0250.051$(196.4)$(118.7)$(28.4)$76.8$199.30.95$(123.3)$(45.7)$44.7$149.9$272.40.9$(58.4)$19.2$109.5$214.7$337.30.85$(1.2)$76.5$166.8$272.0$394.60.8$49.2$126.8$217.2$322.3$444.9

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