Steel is a mature industry yet exciting things can happen. While dozens of steel companies have declared bankruptcy, such as Bethlehem Steel, causing tens of thousands of workers/retirees to lose their pensions and health care benefits, others such as Nucor have experienced continued growth in sales and profits.

President Bush imposed steel tariffs in an illegal (according the World Trade Organization or WTO) and ill-advised (according to most economists who follow the theory of comparative advantage) bid to protect domestic steel. Some corporations, such as Nucor had used modern production techniques and were excelling while those steel companies that refused to modernize sought protectionism. The steel tariffs caused higher prices domestically. This resulted in the loss of jobs nationwide (i.e., in the automotive industry, appliance industry, etc. that relied on steel) and higher prices.

Eventually, Bush was forced (by the WTO) to withdraw the tariffs but steel prices still rose 55% in one year without the tariffs. This is why multi-year analysis is very important. Looking at the financial statements of 2004, it would look like nearly any steel company was an excellent investment. However, a multi-year analysis would show the industry to be experiencing significant losses.

Nucor had the greatest profit increase of any Fortune 500 corporation in 2004. It has consistently out performed the industry. While reviewing its financial statements try to determine the reasons for Nucors continued success while the rest of the industry declines. Again you will be looking for best practices as a potential employee, manager, lender or investor. Obviously it should not be difficult to determine which corporation is best. The real challenge will be for you to say why this is the case.

In order to compare Nucor Steel with the rest of the industry, you will be looking at Nucor's 10-k as well as a 10-k of a rival firm, Cleveland-Cliffs.

Go to the SEC website. Go to the Filings tab: Company Filings Search. In the Company name box enter Cleveland Cliffs Inc and search. In the Filing Type box enter 10-K and search. Select the 10-K for 2005 filing date. Select: Document 1 file: I11082ae10vk.htm

Go to the SEC website. Go to the Filings tab: Company Filings Search. In the Company name box enter Nucor Corp and search. In the Form Type box enter 10-K and search. Select the 10-K for 2005 filing date. Select: d10k.htm

Congratulations you have just arrived at Cleveland Cliffs, Inc. and Nucor 10-K filings of the 2004 annual reports!

They are listed as SIC 1000 Metal Mining and SIC 3312 Steel Works, Blast Furnaces & Rolling Mills.

They have comparable products yet their financial results are significantly different.

Read both 10-K filings then compare, contrast and comment on their differences? "https://www.sec.gov/Archives/edgar/data/764065/000095015205001410/l11082ae10vk.htm"

"https://www.sec.gov/Archives/edgar/data/73309/000119312505044753/d10k.htm"

Give original comparative comments on one of the different aspects listed above and make a relevant substantive response?

Give your opinion as to the reason for the difference in results and identify which company would be better to work for and invest in?