Nucor Corporation Case # 7

1. What driving forces do you see at work in this industry? 2. How attractive are the prospects for future profitability of U.S. Steelmakers? 3. Which of the four generic strategies discussed in Chapter 3 is Nucor employing? What are the specific policies and operating practices that Nucor has employed to implement and execute its chosen strategy? 4. What does a SWOT analysis reveal about Nucor’s situation? 5. What is your assessment of Nucor’s financial performance the past several years? How strong is the company’s financial condition?

CAGR in tons sold to outside customers 1970-2006 CAGR in net sales 1970 – 2006 CAGR in earnings before taxes 1970-2006 CAGR in net earnings 1970-2006 CAGR in Diluted net earnings per share 2000 – 2006

2006
Cost of products sold as a % of net sales Mktg., Adm., and other expenses as a % of net sales

2005

2004

2003

2002

6. What issues does Nucor management need to address?

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