-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, ITKB8GMR1Z7pZvKEHyOSUhmohq/DSIe4fZegBThzMsOmyniU9+5+BaZ/8E7f7JM/ PHCeW/JgoS6yMEDz6TrTyg== 0000950131-98-004515.txt : 19980803 0000950131-98-004515.hdr.sgml : 19980803 ACCESSION NUMBER: 0000950131-98-004515 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980729 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980731 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONAL STEEL CORP CENTRAL INDEX KEY: 0000070578 STANDARD INDUSTRIAL CLASSIFICATION: STEEL WORKS, BLAST FURNACES ROLLING MILLS (COKE OVENS) [3312] IRS NUMBER: 250687210 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-00983 FILM NUMBER: 98675448 BUSINESS ADDRESS: STREET 1: 4100 EDISON LAKES PARKWAY CITY: MISHAWAKA STATE: IN ZIP: 46545-3440 BUSINESS PHONE: 2192737000 MAIL ADDRESS: STREET 1: 4100 EDISON LAKE PARKWAY CITY: MISHAWAKA STATE: IN ZIP: 46545-3440 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8 - K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 29, 1998 NATIONAL STEEL CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) 1-983 25-0687210 (Commission File Number) (IRS Employer Identification No.) 4100 Edison Lakes Parkway, Mishawaka, IN 46545-3440 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 219-273-7000 ITEM 5. OTHER EVENTS National Steel Corporation issued a press release on July 29, 1998 announcing second quarter 1998 results. A copy of this press release is attached hereto as Exhibit 99.1. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS Exhibit 99.1 Press release dated July 29, 1998. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NATIONAL STEEL CORPORATION Date: July 31, 1998 By: /s/John A. Maczuzak ------------------------------------- John A. Maczuzak President and Chief Operating Officer EX-99.1 2 PRESS RELEASE Exhibit 99.1 News Release - ------------ Media Contact: Leon L. Judd (219) 273-7631 Analyst/Investor Contact: Joseph A. Rainis (219) 273-7158 NATIONAL STEEL ANNOUNCES SECOND QUARTER 1998 RESULTS Mishawaka, IN, July 29, 1998--National Steel Corporation (NYSE: NS) today reported net income of $26.5 million for the second quarter of 1998, or $0.61 per diluted common share, compared to $59.5 million, or $1.30 per diluted common share, for the second quarter of 1997. Earnings in both periods were positively impacted by non-recurring items netting to $2.2 million and $17.4 million in the second quarter of 1998 and 1997, respectively, primarily related to the sale of non-core assets. Excluding these items, net income in the second quarter of 1998 totaled $24.3 million, or $0.56 per diluted common share, compared to $42.1 million, or $0.90 per diluted common share, in the second quarter of 1997. Results in the latest quarter were negatively impacted by lower shipping volumes, lower sales prices and higher manufacturing costs per ton produced due to lower production levels partially offset by an improved product and customer mix. Raw steel production totaled 1.55 million tons in the second quarter of 1998 compared to 1.63 million tons in the same 1997 period. Production and operating costs were negatively affected by the reline of the "A" Blast Furnace at the Great Lakes Division that carried over into April of 1998. Shipments declined ten percent to 1.45 million tons in the second quarter of 1998 compared to the second quarter of 1997 record of 1.61 million tons. Weather conditions adversely affected shipments to the container and construction markets during the quarter. Operating income totaled $26.8 million in the second quarter of 1998 compared to $51.6 million in the second quarter of 1997. "The second quarter was a very challenging period for National Steel as the combined effects of the blast furnace outage and unseasonable weather negatively impacted our results," said Osamu Sawaragi, National's chairman and chief executive officer. "Operating performance, however, improved steadily each month during the quarter," concluded the chief executive. Net income for the first six months of 1998 totaled $32.4 million, or $0.75 per diluted common share, compared to $86.2 million, or $1.85 per diluted common share, in the same period of 1997. Excluding the impact from non-recurring items, net income in the first six months of 1998 totaled $30.2 million, or $0.70 per diluted common share, compared to the first half of 1997 total of $68.8 million, or $1.46 per diluted common share. Operating income in the first half of 1998 totaled $28.6 million compared to $88.5 million in the same 1997 period. -more- National Steel anticipates the resumption of regular shipments to General Motors following the settlement of its strike. The Company is closely monitoring increased imports from Asia and Eastern Europe as well as the continued impact of weather on the food container market. The Company's newest coating line located at the Midwest Steel Division officially started-up in late April and is successfully producing prime product for the construction market. This line has increased National's coated capacity, including tin mill products and the Company's share of joint venture capacity, to approximately 3 million tons. As a result, value-added products accounted for over forty-three percent of total shipments in the most recent quarter compared to forty percent in the second quarter of 1997. The Company's Board of Directors declared a quarterly common stock dividend of $0.07 per share, payable on September 9, 1998 to shareholders of record as of the close of business on August 21, 1998. All statements contained in this release, other than historical information, are forward-looking statements. A variety of factors could cause business conditions and the Company's actual results and experience to differ materially from those expected by the Company or expressed in the Company's forward-looking statements. Additional information concerning these factors is available in the Company's most recent Form 10-K for the year ended December 31, 1997 and the Form 10-Q for the quarter ended March 31, 1998. Headquartered in Mishawaka, Indiana, National Steel is the nation's fourth largest integrated steel company, with annual shipments of approximately six million tons of flat rolled products. National Steel employs approximately 9,400 people. Visit National Steel's website at: www.nationalsteel.com. The Company's consolidated income statement and condensed balance sheets and cash flows follow: National Steel Corporation Statements of Consolidated Income (In millions, except per share data)
Three Months Six Months Ended June 30, Ended June 30, 1998 1997 1998 1997 ------- ------- -------- -------- Net Sales $ 747.8 $ 824.9 $1,456.3 $1,582.5 Cost of products sold 655.4 700.1 1,292.8 1,353.3 Selling, general and administrative 33.5 36.9 71.6 69.4 Depreciation, depletion and amortization 32.4 37.0 63.5 72.1 Equity income of affiliates (0.3) (0.7) (0.2) (0.8) ------- ------- -------- -------- Income from Operations 26.8 51.6 28.6 88.5 Other (Income) Expense: Financing costs (net) 2.9 4.7 3.7 12.9 Net gain on disposal of non-core assets (2.7) (25.4) (2.7) (25.4) ------- ------- -------- -------- 0.2 (20.7) 1.0 (12.5) Income Before Income Taxes and Extraordinary Item 26.6 72.3 27.6 101.0 Income tax provision (credit) 0.1 7.4 (4.8) 9.4 ------- ------- -------- -------- Income Before Extraordinary Item 26.5 64.9 32.4 91.6 Extraordinary item (net of tax) --- (5.4) --- (5.4) ------- ------- -------- -------- Net Income 26.5 59.5 32.4 86.2 Less preferred stock dividends --- 2.7 --- 5.5 ------- ------- -------- -------- Net Income Applicable to Common Stock $ 26.5 $ 56.8 $ 32.4 $ 80.7 ======= ======= ======== ======== Basic Earnings Per Share: Income Before Extraordinary Item $ 0.61 $ 1.43 $ 0.75 $ 1.98 Extraordinary item --- (0.12) --- (0.12) ------- ------- -------- -------- Net Income Applicable to Common Stock 0.61 1.31 0.75 1.86 Weighted Average Shares Outstanding (in thousands) 43,288 43,288 43,288 43,288 Diluted Earnings Per Share: Income Before Extraordinary Item $ 0.61 $ 1.42 $ 0.75 $ 1.97 Extraordinary item --- (0.12) --- (0.12) ------- ------- -------- -------- Net Income Applicable to Common Stock 0.61 1.30 0.75 1.85 Weighted Average Shares Outstanding (in thousands) 43,354 43,620 43,340 43,463 Shipments 1,450 1,605 2,869 3,126 Raw Steel Production 1,546 1,634 3,119 3,268
NATIONAL STEEL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions)
June 30, December 31, June 30, December 31, 1998 1997 1998 1997 ------------ ------------- ------------ --------------- Assets Liabilities and Stockholders' Equity Cash and cash equivalents $ 229.2 $ 312.6 Current liabilities $ 575.8 $ 637.4 Investments 10.0 25.0 Receivables - net 270.4 284.3 Long term debt 300.0 311.0 Other long term Inventories 433.6 374.2 liabilities 673.0 668.0 Deferred tax assets 8.6 8.6 -------- -------- ------- -------- Total current assets 951.8 1,004.7 Total liabilities 1,548.8 1,616.4 Property, plant and equipment - net 1,227.3 1,229.0 Stockholders' equity 863.3 837.0 ------- -------- Other assets 233.0 219.8 -------- -------- Total Liabilities Total Assets $2,412.1 $2,453.4 and Equity $2,412.1 $2,453.4 ======== ======== ======== ======== CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited) (In millions) Six Months Ended June 30, 1998 1997 ---- ---- Cash provided (used) by operating activities: $ (4.7) $267.7 Investing Activities: Purchases of property, plant and equipment (net) (63.3) (71.9) Proceeds from the sale of non-core assets 3.3 312.3 ------ ------ (60.0) 240.4 ------ ------ Financing Activities: Repayment of debt (19.8) (173.0) Borrowings 7.2 ---- Preferred stock dividends ---- (2.0) Common stock dividends (6.1) ---- Other ---- (15.2) ------ ------ (18.7) (190.2) ------ ------ Increase (Decrease) in Cash and Cash Equivalents (83.4) 317.9 Cash and cash equivalents at the beginning of the period 312.6 109.0 ------ ------ Cash and cash equivalents at the end of the period $229.2 $426.9 ====== ======
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