0000950131-01-503875.txt : 20011030
0000950131-01-503875.hdr.sgml : 20011030
ACCESSION NUMBER: 0000950131-01-503875
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20011026
ITEM INFORMATION: Other events
ITEM INFORMATION: Financial statements and exhibits
FILED AS OF DATE: 20011026
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: 1934 Act
SEC FILE NUMBER: 001-00983
FILM NUMBER: 1767665
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
d8k.txt
FORM 8-K
UNITED STATES
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): October 26, 2001
(October 24, 2001)
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 AND REGULATION FD DISCLOSURE
National Steel Corporation issued a press release on October 24, 2001 announcing
its third quarter 2001 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 October 24, 2001.
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: October 26, 2001 By: /s/ Kirk A. Sobecki
-------------------------------------
Kirk A. Sobecki
Corporate Controller
(Chief Accounting Officer)
EX-99.1
3
dex991.txt
PRESS RELEASE DATED OCT 24, 2001
Exhibit 99.1
[LOGO] National
Steel
________________________________________________________________________________
National Steel Corporation
4100 Edison Lakes Parkway
Mishawaka, IN 46545-3440
Phone: (219) 273-7000
NEWS RELEASE
------------
Media Contact: Dorothy Mincy
(219) 273-7560
Analyst and William E. McDonough
Investor Contact: (219) 273-7414
NATIONAL STEEL ANNOUNCES THIRD QUARTER 2001 RESULTS
Mishawaka, IN, October 24, 2001 - National Steel Corporation today reported a
net loss of $152.8 million, or $3.70 per diluted common share, for the third
quarter of 2001. This compares to a net loss of $57.3 million, or $1.39 per
diluted common share, reported for the third quarter of 2000. Net sales for the
quarter decreased approximately 8.1% to $637.0 million on shipments of 1,512,000
tons as compared to sales of $693.1 million on shipments of 1,410,000 tons
during the same quarter in 2000. The Company's average selling price of $397 per
ton, down $71 per ton from the third quarter of 2000, continues to be negatively
impacted by the severe economic downturn and its impacts on the markets that the
Company serves. The third quarter 2001 operating loss of $116 million was
negatively impacted by a $10.9 million charge related to the write-off of a
portion of a new computer system.
For the nine months ended September 30, 2001, the Company reported a net loss of
$371.8 million, or $9.00 per diluted common share, on sales of $1,899.6 million.
This compares to a reported net loss of $46.4 million, or $1.12 per diluted
common share, on sales of $2,327.3 million for the same period of 2000. Steel
shipments have decreased 313,000 tons, or 6.5%, for the first nine months of
2001. Average selling prices have declined $63 per ton, or 13.6%, over the same
time period. Aggressive cost reductions in the areas of headcount reductions,
overtime reductions, lower costs associated with materials and supplies and
yield improvements totaled $108 million through September 30, 2001, as compared
to the same period of last year. This is slightly ahead of the stated target of
$100 million in cost reductions for the full year 2001.
"Although our steel shipments were higher than the year earlier quarter, demand
for our value-added products in the automotive and construction markets weakened
during the third quarter 2001. We continue to manage what is under our control,
reducing our costs, lowering our inventory levels and maintaining adequate
liquidity in the face of these severe economic times", said Hisashi Tanaka,
Chairman and CEO.
Financial Position and Liquidity
Total liquidity from cash and available short-term credit facilities amounted to
$160 million at September 30, 2001, as compared to $152 million at June 30,
2001. On September 28, 2001 the Company closed on a new $450 million credit
facility secured by its accounts receivable and inventories. This replaces the
separate accounts receivable and inventory facilities that the Company had
utilized in the past. This new facility increases borrowing availability by
approximately $100 million from the old facilities. During the quarter the
Company utilized an additional $92 million, including the remaining $25 million
available under the $100 million NUF credit facility. Total borrowings under all
facilities amounted to $368 million at September 30, 2001. Capital expenditures
for the quarter amounted to $9.8 million, bringing the total spending on capital
additions to $40.9 million for the year. This is $135.4 million lower than the
prior year.
Outlook
The Company believes that the market for its products will remain weak during
the fourth quarter of 2001. On October 18, 2001, the Company announced that it
was temporarily idling the A blast furnace at its Great Lakes operations and
extending a planned maintenance outage at National Steel Pellet Company in an
effort to more closely match production with forecasted demand. These outages
will allow the Company to reduce both finished goods and raw materials inventory
levels during the fourth quarter, positively impacting its cash usage.
Additionally, the Company believes that it will see further cost improvements
due to its aggressive cost reduction initiatives. Capital spending will remain
at low levels, with a $14 million spending forecast for the fourth quarter. The
Company believes that its future liquidity will be affected by sources of
financing, possible asset sales, operating performance and overall economic
conditions.
Other Matters
The Company was pleased by the announcement of the International Trade
Commission's ("ITC") affirmative injury ruling on flat rolled steel products in
the Section 201 trade case. "We applaud the ITC and the Bush Administration for
their investigation and feel that quick, strong actions in the coming months are
needed to ensure the long-term viability of the domestic steel industry", said
John Maczuzak, President and COO.
National Steel will be hosting a conference call to discuss third quarter 2001
results and the outlook for the fourth quarter 2001 on Thursday, October 25,
2001 at 2:00 p.m. ET. Investors and other interested parties are invited to
listen to the conference call over the Internet at
http://www.videonewswire.com/event.asp?id=1422 or you may go directly to our
----------------------------------------------
website at www.nationalsteel.com. To listen to the call, please go to the
---------------------
website at least fifteen minutes prior to the call to register, download and
install any necessary audio software.
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 Form 10-K for the year ended December 31, 2000.
Headquartered in Mishawaka, Indiana, National Steel Corporation is one of the
nation's largest producers of carbon flat-rolled steel products, with annual
shipments of approximately six million tons. National Steel employs
approximately 8,700 employees. Please visit our website at www.nationalsteel.com
---------------------
for more information on the Company and its products and facilities.
NATIONAL STEEL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Millions of Dollars, except per share data)
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
----------------------------- -----------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
Net sales $ 637.0 $ 693.1 $ 1,899.6 $ 2,327.3
Cost of products sold 670.3 670.8 1,976.8 2,141.8
Selling, general and administrative expense 30.6 34.2 98.6 108.9
Depreciation 42.2 38.3 126.1 116.9
Equity (income) loss of affiliates (1.0) (0.9) (2.3) (2.2)
Unusual items 10.9 -- (17.1) --
------------ ------------ ------------ ------------
Loss from operations (116.0) (49.3) (282.5) (38.1)
Other (income) expense
Financing costs (net) 16.0 11.0 47.7 25.8
Net gain on disposal of non-core assets (0.9) -- (2.4) (15.1)
------------ ------------ ------------ ------------
15.1 11.0 45.3 10.7
------------ ------------ ------------ ------------
Loss before income taxes, extraordinary item and
cumulative effect of change in accounting principle (131.1) (60.3) (327.8) (48.8)
Income tax (credit) 19.7 (3.0) 59.2 (2.4)
------------ ------------ ------------ ------------
Loss from continuing operations before extraordinary
----------------------------------------------------
item and cumulative effect of change in accounting
--------------------------------------------------
principle (150.8) (57.3) (387.0) (46.4)
---------
Extraordinary item (net of $0 tax) (2.0) -- (2.0) --
Cumulative effect of change in accounting principle (net
of $0 tax) -- -- 17.2 --
------------ ------------ ------------ ------------
Net loss $ (152.8) $ (57.3) $ (371.8) $ (46.4)
============ ============ ============ ============
Basic loss per share:
Continuing operations $ (3.65) $ (1.39) $ (9.37) $ (1.12)
Extraordinary item (0.05) -- (0.05) --
Cumulative effect of change in accounting principle -- -- 0.42 --
------------ ------------ ------------ ------------
Net loss $ (3.70) $ (1.39) $ (9.00) $ (1.12)
============ ============ ============ ============
Weighted average shares outstanding (in thousands) 41,288 41,288 41,288 41,288
Diluted loss per share:
Continuing operations $ (3.65) $ (1.39) $ (9.37) $ (1.12)
Extraordinary item (0.05) -- (0.05) --
Cumulative effect of change in accounting principle -- -- 0.42 --
------------ ------------ ------------ ------------
Net loss $ (3.70) $ (1.39) $ (9.00) $ (1.12)
============ ============ ============ ============
Weighted average shares outstanding (in thousands) 41,288 41,288 41,288 41,288
Dividends paid per common share outstanding -- $ 0.07 -- $ 0.21
============ ============ ============ ============
Operating Statistics (in thousands of tons):
Shipments 1,512 1,410 4,507 4,820
Production 1,568 1,494 4,673 4,891
NATIONAL STEEL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Millions of Dollars)
September 30, December 31, September 30, December 31,
2001 2000 2001 2000
------------- ------------ ------------- ------------
(Unaudited) (Unaudited)
Assets Liabilities and
Stockholders'
Equity
Cash and cash $ 5.1 $ 3.3 Current liabilities $ 591.4 $ 589.1
equivalents
Receivables - net 273.8 190.6 Long-term debt 770.6 523.3
Inventories 476.8 522.8 Other long-term
Other 20.6 16.6 liabilities 756.9 735.1
Deferred tax assets 34.5 34.5
------------- ------------ ------------- ------------
Total current assets 810.8 767.8 Total Liabilities 2,118.9 1,847.5
Property, plant and
equipment - net 1,419.3 1,517.0 Stockholders' Equity 342.1 717.7
Other assets 230.9 280.4
------------- ------------ ------------- ------------
$ 2,461.0 $ 2,565.2 $ 2,461.0 $ 2,565.2
============= ============ ============= ============
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions of Dollars)
(Unaudited)
Nine Months Ended September 30,
2001 2000
---------------- ----------------
Cash provided by (used in) operating
activities:
Net loss $ (371.8) $ (46.4)
Depreciation 126.1 116.9
Deferred income taxes 59.0 (3.4)
Extraordinary item 2.0 --
Cumulative effect of change in
accounting principle (17.2) --
Working capital items:
Receivables 12.1 44.5
Receivables sold (95.0) 70.0
Inventories 46.0 (28.5)
Accounts payable & accrued liabilities (15.9) 48.9
All other 36.2 (46.4)
---------------- ----------------
(218.5) 155.6
---------------- ----------------
Cash provided by (used in) investing
activities:
Purchases of property, plant
and equipment (40.9) (176.3)
Net proceeds from the sale of assets 1.9 16.9
---------------- ----------------
(39.0) (159.4)
---------------- ----------------
Cash provided by (used in) financing
activities:
Repayment of debt (22.9) (38.0)
Borrowings, net 282.2 --
Common stock dividends -- (8.7)
---------------- ----------------
259.3 (46.7)
---------------- ----------------
Increase (decrease) in cash
and cash equivalents 1.8 (50.5)
Cash and cash equivalents at
the beginning of the period 3.3 58.4
---------------- ----------------
Cash and cash equivalents at
the end of the period $ 5.1 $ 7.9
================ ================
Noncash Investing and Financing
Activities:
Purchase of equipment through capital
leases $ 3.1 $ 7.9
================ ================