Nucor's Nuclear Corporation

Summary Nuclear Corporation of America was involved in the nuclear instrument and electronics business. In 1964, the company’s board of directors opted for new leadership due to suffering several money-losing years and facing bankruptcy. F. Kenneth Iverson was the new leader, president, and CEO of Nuclear Corporation. F. Kenneth decided that the best way to rebuild the company was to expand around its profitable South Carolina. Iverson was already the head of Vulcraft before adopting Nuclear Corporation. He had a vision that by joining Vulcraft and Nuclear together it would be great opportunities. Iverson concluded that the best way was for Nucor to make a different path altogether with their successful Vulcraft subsidiary in the steel business.
This was the fourth component of Nucor’s strategy by jointing ventures and licensing new technology. Unfortunately, the company did not currently have any plans to build and operate outside the United States. The only company operated foreign plant was in Trinidad. Location is considered Nucor’s weakness. The company only has 59 facilities in 17 states, but don’t have plants in different countries. With this limitation, completion becomes involved and all potential clients begin to look for other options to buy from other steel company closest to their
Nucor financial summary shows that in year 2005 current assets were $4,071.6 and liabilities of $1,255.7 which showed an average current ratio of 3.24 for 2005. Working Capital for that same year reflected a balance of $2,815.9.
In year 2006 current assets were $4,675.0 which went up and liabilities of $1,450.0 came out to an average 3.22 which went down from 3.24 in 2005. Capital went up by a total $409.10, reflected by the end of 2006 the working capital for Nucor was substantially higher.

Business Strategy Nucor operates in a relatively mature market. Their productivity and cost efficiency through optimized operations help moderate their pricing. Nucor’s strategy is to acquire a source of raw material or integrate some new technology into their operations. The goal is to expand in higher value-added sheet markets. Nucor’s strategy to become competitive includes introduction of new steelmaking technology and seek growth through acquisitions and joint ventures to source one-third of its raw material requirements. The company is leaning toward acquiring new business that increases production capacity, participation in downstream steel projects, and provides resources of raw materials. The objective is to rise against costs of raw materials, reduce on imports, and better manage