-----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, QGssfoqZE5++ZRAoKTno9oEuQ0aqGGs3o62xDVIrygm2RHEwUaRdnIjxS/e7qulK YNcfAgHPG3/txy3DiOpeww== 0000950131-96-002186.txt : 19960514 0000950131-96-002186.hdr.sgml : 19960514 ACCESSION NUMBER: 0000950131-96-002186 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960513 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: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-00983 FILM NUMBER: 96561868 BUSINESS ADDRESS: STREET 1: 4100 EDISON LAKES PARKWAY CITY: MISHAWAKA STATE: IN ZIP: 465453440 BUSINESS PHONE: 2192737000 MAIL ADDRESS: STREET 1: 4100 EDISON LAKE PARKWAY CITY: MISHAWAKA STATE: IN ZIP: 46545-3440 10-Q 1 FORM 10-Q 1996 FIRST QUARTER F O R M 1 0 - Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-983 NATIONAL STEEL CORPORATION (Exact name of registrant as specified in its charter) Delaware 25-0687210 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) 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 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- The number of shares outstanding of the Registrant's Common Stock $ .01 par value, as of April 30, 1996, was 43,288,240 shares. NATIONAL STEEL CORPORATION AND SUBSIDIARIES TABLE OF CONTENTS PART I. FINANCIAL INFORMATION PAGE ---- Statements of Consolidated Income - Three Months Ended March 31, 1996 and 1995 3 Consolidated Balance Sheets - March 31, 1996 and December 31, 1995 4 Statements of Consolidated Cash Flows - Three Months Ended March 31, 1996 and 1995 5 Statements of Changes in Consolidated Stockholders' Equity and Redeemable Preferred Stock-Series B - Three Months Ended March 31, 1996 and Year Ended December 31, 1995 6 Notes to Consolidated Financial Statements 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 10 PART II. OTHER INFORMATION Legal Proceedings 12 Exhibits and Reports on Form 8-K 13 2 PART I. - FINANCIAL INFORMATION NATIONAL STEEL CORPORATION AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED INCOME (In Thousands of Dollars, Except Per Share Amounts) (Unaudited)
THREE MONTHS ENDED MARCH 31, 1996 1995 --------- --------- NET SALES $682,143 $752,676 Cost of products sold 628,920 618,716 Selling, general and administrative 31,413 34,315 Depreciation, depletion and amortization 36,288 36,833 Equity income of affiliates (2,287) (1,381) Unusual charge --- 5,336 -------- -------- INCOME (LOSS) FROM OPERATIONS (12,191) 58,857 Financing Costs: Interest and other financial income (1,896) (2,748) Interest and other financial expense 10,667 14,076 -------- -------- 8,771 11,328 -------- -------- INCOME (LOSS) BEFORE INCOME TAXES (20,962) 47,529 Income tax provision (credit) (5,387) 2,835 -------- -------- NET INCOME (LOSS) (15,575) 44,694 Less preferred stock dividends 2,742 2,740 -------- -------- Net income (loss) applicable to Common Stock $(18,317) $ 41,954 ======== ======== PER SHARE DATA APPLICABLE TO COMMON STOCK: NET INCOME (LOSS) APPLICABLE TO COMMON STOCK $ (0.42) $ 1.02 ======== ======== Weighted average shares outstanding (in thousands) 43,288 40,976
See notes to consolidated financial statements 3 NATIONAL STEEL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands of Dollars, Except Share Amounts) (Unaudited)
MARCH 31, DECEMBER 31, ASSETS 1996 1995 ---------- ---------- Current assets Cash and cash equivalents $ 135,608 $ 127,616 Receivables - net 271,058 316,662 Inventories: Finished and semi-finished products 309,929 276,162 Raw materials and supplies 102,345 135,852 ---------- ---------- 412,274 412,014 ---------- ---------- Total current assets 818,940 856,292 Investments in affiliated companies 57,769 59,885 Property, plant and equipment 3,572,968 3,540,214 Less allowances for depreciation, depletion and amortization 2,107,756 2,071,511 ---------- ---------- 1,465,212 1,468,703 Other assets 285,932 282,999 ---------- ---------- TOTAL ASSETS $2,627,853 $2,667,879 ========== ========== LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY: Current liabilities Accounts payable $ 241,085 $ 255,574 Accrued liabilities 337,353 341,242 Current portion of long term obligations 36,466 35,750 ---------- ---------- Total current liabilities 614,904 632,566 Long term obligations 331,500 339,613 Long term indebtedness to related parties 154,328 161,912 Other long term liabilities 924,226 912,201 Redeemable Preferred Stock - Series B 64,655 65,030 Stockholders' equity Common Stock - par value $.01: Class A - authorized 30,000,000 shares, issued and outstanding 22,100,000 221 221 Class B - authorized 65,000,000 shares; issued and outstanding 21,188,240 shares in 1996 and 21,176,156 shares in 1995 212 212 Preferred Stock - Series A 36,650 36,650 Additional paid-in-capital 465,359 465,359 Retained earnings 35,798 54,115 ---------- ---------- Total stockholders' equity 538,240 556,557 ---------- ---------- TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY $2,627,853 $2,667,879 ========== ==========
See notes to consolidated financial statements 4 NATIONAL STEEL CORPORATION AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED CASH FLOWS (In Thousands of Dollars) (Unaudited)
THREE MONTHS ENDED MARCH 31, CASH FLOWS FROM OPERATING ACTIVITIES: 1996 1995 --------- --------- Net Income (loss) $(15,575) $ 44,694 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, depletion and amortization 36,288 36,833 Carrying charges related to facility sales and plant closings 5,596 6,078 Equity income of affiliates (2,287) (1,381) Dividends from affiliates 4,375 900 Postretirement benefits 14,004 20,922 Deferred income taxes (5,400) (7,100) Changes in working capital items: Receivables 45,604 (22,889) Inventories (260) (20,472) Accounts payable (14,489) (51,456) Accrued liabilities (3,960) 4,986 Other (2,878) (797) -------- -------- NET CASH PROVIDED IN OPERATING ACTIVITIES 61,018 10,318 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of plant and equipment (net) (31,236) (21,763) -------- -------- NET CASH USED IN INVESTING ACTIVITIES (31,236) (21,763) CASH FLOWS FROM FINANCING ACTIVITIES Issuance of Class B Common Stock --- 104,734 Debt Repayment (14,981) (10,890) Payment of released Weirton benefit liabilities (3,763) (3,633) Dividend payments on Preferred Stock-Series A (1,015) (1,016) Dividend payments on Preferred Stock-Series B --- (848) Payment of unreleased Weirton liabilities and their release in lieu of cash dividends on Preferred Stock-Series B (2,031) (1,185) -------- -------- NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (21,790) 87,162 -------- -------- NET INCREASE IN CASH AND CASH EQUIVALENTS 7,992 75,717 Cash and cash equivalents at the beginning of the period 127,616 161,946 -------- -------- CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD $135,608 $237,663 ======== ========
See notes to consolidated financial statements. 5 NATIONAL STEEL CORPORATION AND SUBSIDIARIES STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY AND REDEEMABLE PREFERRED STOCK - SERIES B (In Thousands of Dollars) (Unaudited)
COMMON COMMON PREFERRED ADDITIONAL RETAINED TOTAL REDEEMABLE STOCK - STOCK - STOCK - PAID-IN EARNINGS STOCKHOLDERS' PREFERRED STOCK - CLASS A CLASS B SERIES A CAPITAL (DEFICIT) EQUITY SERIES B ------- ------- --------- ---------- --------- -------------- ----------------- BALANCE AT JANUARY 1, 1995 $221 $143 $36,650 $360,525 $(43,958) $353,581 $ 66,530 Net income 110,796 110,796 Amortization of excess of book value over redemption value of Redeemable Preferred Stock - Series B 1,500 1,500 (1,500) Cumulative dividends on Preferred Stock - Series A and B (12,458) (12,458) Issuance of Common Stock - Class B 69 104,665 104,734 Exercise of stock options 169 169 Minimum pension liability (1,765) (1,765) ---- ---- ------- -------- -------- -------- -------- BALANCE AT DECEMBER 31, 1995 221 212 36,650 465,359 54,115 556,557 65,030 Net loss (15,575) (15,575) Amortization of excess of book value over redemption value of Redeemable Preferred Stock - Series B 375 375 (375) Cumulative dividends on Preferred Stock - Series A and B (3,117) (3,117) ---- ---- ------- -------- -------- -------- -------- BALANCE AT MARCH 31, 1996 $221 $212 $36,650 $465,359 $ 35,798 $538,240 $ 64,655 ==== ==== ======= ======== ======== ======== ========
See notes to consolidated financial statements. 6 NATIONAL STEEL CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 1996 (Unaudited) NOTE 1 - BASIS OF PRESENTATION The consolidated financial statements of National Steel Corporation and its majority owned subsidiaries (the "Company") presented herein are unaudited. However, in the opinion of management, such statements include all adjustments necessary for a fair presentation of the results for the periods indicated. All such adjustments made were of a normal recurring nature, except for the items discussed in Notes 3 and 4. The financial results presented for the three month period ended March 31, 1996 are not necessarily indicative of results of operations for the full year. The Annual Report of the Company on Form 10-K for the year ended December 31, 1995 (the "1995 Form 10-K") contains additional information and should be read in conjunction with this report. NOTE 2 - ACCOUNTING CHANGES During the first quarter of 1996, the Company adopted Statement of Financial Accounting Standards No. 121 ("SFAS 121"), "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of ". SFAS 121 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amount. The adoption of SFAS 121 did not have an impact on the Company's financial statements. The Company also adopted Statement of Financial Accounting Standards No. 123 ("SFAS 123") "Accounting for Stock-Based Compensation" during the first quarter of 1996. SFAS 123 requires the Company to either adopt a fair value based method of expense recognition for all stock compensation based awards, or provide proforma net income and earnings per share information as if the recognition and measurement provisions of SFAS 123 had been adopted. The Company will continue to account for its stock based compensation awards following the provisions of Accounting Principles Board Opinion No. 25 ("APB 25") and will provide the required fair value based proforma information in its annual financial statements. APB 25 requires compensation expense to be recognized only if the market price of the underlying stock exceeds the exercise price on the date of grant. The Company's stock based awards consist of stock options with an exercise price equal to market price on the date of grant. As such, the Company has not recorded compensation expense in connection with these awards. NOTE 3 - UNUSUAL ITEM During the fourth quarter of 1994, the Company finalized and implemented a plan that resulted in a workforce reduction of approximately 400 salaried nonrepresented employees. Accordingly, a restructuring charge of $34.2 million, or $25.6 million net of tax, was recorded during the fourth quarter of 1994. During the first quarter of 1995, the Company recorded an additional restructuring charge of $5.3 million, or $3.6 million net of tax, as a result of the various elections made by the terminated employees during the first quarter of 1995. This charge was comprised of retiree postemployment benefits ("OPEB") of $4.5 million, severance of $1.6 million, and a pension credit of $.8 million. 7 NOTE 4 - PRIMARY OFFERING OF CLASS B COMMON STOCK AND USE OF PROCEEDS TO PREPAY DEBT. On February 1, 1995, the Company completed a primary offering of 6,900,000 shares of Class B Common Stock, bringing the total number of shares of Class B Common Stock issued and outstanding to 21,176,156 at that time. Subsequent to the offering, NKK Corporation, through its ownership of all 22,100,000 issued and outstanding shares of Class A Common Stock, holds 67.6% of the combined voting power of the Company. The remaining 32.4% of the combined voting power is held by the public. The issuance of the additional shares of Class B Common Stock generated net proceeds of approximately $104.7 million, all of which was used for related party debt reduction during the third quarter of 1995. NOTE 5 - ENVIRONMENTAL AND LEGAL PROCEEDINGS The Company's operations are subject to numerous laws and regulations relating to the protection of human health and the environment. Because these environmental laws and regulations are quite stringent and are generally becoming more stringent, the Company has expended, and can be expected to expend in the future, substantial amounts for compliance with these laws and regulations. Due to the possibility of future factual or regulatory requirements, the amount and timing of future environmental expenditures could vary from those currently anticipated. It is the Company's policy to expense or capitalize, as appropriate, environmental expenditures that relate to current operating sites. Environmental expenditures that relate to past operations and which do not contribute to future or current revenue generation are expensed. With respect to costs for environmental assessments or remediation activities, or penalties or fines that may be imposed for noncompliance with such laws and regulations, such costs are accrued when it is probable that liability for such costs will be incurred and the amount of such costs can be reasonably estimated. The Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended ("CERCLA"), and similar state superfund statutes generally impose joint and several liability on present and former owners and operators, regardless of fault. The Company and certain of its subsidiaries are involved as a potentially responsible party ("PRP") at a number of off-site CERCLA or state superfund site proceedings. At some of these sites, any remediation costs incurred by the Company would constitute liabilities for which FoxMeyer Health Corporation ("FOX") is required to indemnify the Company ("FOX Environmental Liabilities"). In addition, at some of these sites, the Company does not have sufficient information regarding the nature and extent of the contamination, the wastes contributed by other PRPs, or the required remediation activity to estimate its potential liability. In connection with those sites involving FOX Environmental Liabilities, in January 1994 the Company received $10.0 million from FOX as an unrestricted prepayment for such liabilities for which the Company recorded $10.0 million as a liability in its consolidated balance sheet. The Company is required to repay FOX portions of the $10.0 million to the extent the Company's expenditures for such FOX Environmental Liabilities do not meet specified levels by certain dates over a twenty year period. At March 31, 1996 and December 31, 1995, the balance recorded as prepaid FOX Environmental Liabilities totaled $7.3 million and $7.2 million, respectively. The Company has also recorded the reclamation and other costs to restore its coal and iron ore mines at its shutdown locations to their original and natural state, as required by various federal and state mining statutes. Since the Company has been conducting steel manufacturing and related operations at numerous locations for over sixty years, the Company potentially may be required to remediate or reclaim any contamination that may be present at these sites. The Company does not have sufficient information to estimate its potential 8 liability in connection with any potential future remediation at such sites. Accordingly, the Company has not accrued for such potential liabilities. As any of these environmental matters discussed above progresses or the Company becomes aware of additional matters, the Company may be required to accrue charges in excess of those previously accrued. The outcome of any of the matters described, to the extent they exceed any applicable reserves, could have a material adverse effect on the Company's results of operations and liquidity for the applicable period; however, the Company has no reason to believe that such outcomes, whether considered individually or in the aggregate, will have a material adverse effect on the Company's financial condition. The Company has recorded an aggregate environmental liability of approximately $19.1 million and $18.6 million at March 31, 1996 and December 31, 1995, respectively. The Company is involved in various non-environmental legal proceedings most of which occur in the normal course of its business. The Company does not believe that the proceedings will have a material adverse effect, either individually or in the aggregate, on the Company's financial condition. However, with respect to certain of the proceedings, if reserves prove to be inadequate and the Company incurs a charge to earnings, such charge could have a material adverse effect on the Company's results of operations for the applicable period. Certain other proceedings, if decided adversely to the Company, could have a material adverse effect on cash flows. 9 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS - --------------------- COMPARISON OF THE THREE MONTH PERIODS ENDED MARCH 31, 1996 AND 1995 Net Sales - --------- Net sales for the first quarter of 1996 totaled $682.1 million, a 9.4% decrease compared to the corresponding period in 1995. The decrease of $70.6 million was primarily attributable to a decline in selling prices as well an unfavorable shift in product mix from higher margin coated products to less value added products. Steel shipments for the first quarter were 1,436,000 tons, a 1% improvement compared to the 1,422,000 tons shipped during the first quarter of 1995. Cost of Products Sold - --------------------- The Company's cost of products sold of $628.9 million during the first quarter of 1996 represents an increase of $10.2 million compared to the same period in 1995. A kiln outage at the Company's iron ore mining facility adversely impacted costs by approximately $9 million during the quarter. Higher natural gas prices due to cold weather also increased costs. Raw steel production was a record 1,666,000 tons during the first quarter of 1996, a 5% increase compared to the 1,586,000 tons produced during the first quarter of 1995. Improved productivity at both of the Company's steelmaking facilities contributed to this increase. Selling, General and Administrative Expense - ------------------------------------------- Selling, general and administrative expense of $31.4 million during the first quarter of 1996 represents a $2.9 million decrease compared to the corresponding 1995 period. This decrease is a result of the favorable settlement of a lawsuit along with a reduction in the level of professional fees. Unusual Item - ------------ During the fourth quarter of 1994, the Company recorded an unusual charge of $34.2 million related to a reduction of the salaried nonrepresented workforce. During the first quarter of 1995, an additional charge of $5.3 million was recorded as an unusual item as a result of various elections made by the terminated employees during that quarter. Other Financing Costs - --------------------- Net financing costs of $8.8 million during the first quarter of 1996 represents a decrease of $2.6 million compared to the corresponding 1995 period. The August 1995 prepayment of $133.3 million of debt resulted in a $3.5 million reduction in interest expense during the first quarter of 1996, which was partially offset by a reduction in interest income. Primary Offering of Class B Common Stock - ---------------------------------------- On February 1, 1995, the Company completed a primary offering of 6,900,000 shares of Class B Common Stock, bringing the total number of shares of Class B Common Stock issued and outstanding to 21,176,156 at that time. Subsequent to the offering, NKK Corporation, through its ownership of all 22,100,000 issued and outstanding shares of Class A Common Stock, holds 67.6% of the combined voting power of the Company. The remaining 32.4% of the combined voting power is held by the public. The issuance of the additional shares of Class B Common Stock generated net proceeds of approximately $104.7 million, all of which was used for related party debt reduction during the third quarter of 1995. 10 LIQUIDITY AND SOURCES OF CAPITAL - -------------------------------- The Company's liquidity needs arise primarily from capital investments, working capital requirements and principal and interest payments on its indebtedness. The Company has satisfied these liquidity needs with funds provided by long term borrowings and cash provided by operations, in addition to the Company's 1995 public offering of Class B Common Stock. Available sources of liquidity consist of a Receivables Purchase Agreement (the "Receivables Purchase Agreement") with commitments of up to $200 million and $15 million in an uncommitted, unsecured line of credit (the "Uncommitted Line of Credit"). The Company is currently in compliance with all material covenants of, and obligations under, the Receivables Purchase Agreement, the Uncommitted Line of Credit and other debt instruments. The Company has satisfied its liquidity needs with minimal use of its credit facilities. On March 31, 1996, there were no cash borrowings outstanding under the Receivables Purchase Agreement, and outstanding letters of credit under the Receivables Purchase Agreement totaled $92.3 million. During the first quarter of 1996, the maximum availability under the Receivables Purchase Agreement, after reduction of letters of credit outstanding, varied from $65.1 million to $108.9 million and was $94.4 million as of March 31, 1996. At March 31, 1996, total debt and redeemable preferred stock as a percentage of total capitalization increased slightly to 52.2% as compared to 52.0% at December 31, 1995. Cash and cash equivalents totaled $135.6 million at March 31, 1996 as compared to $127.6 million at December 31, 1995. Cash Flows from Operating Activities - ------------------------------------ For the quarter ended March 31, 1996, cash provided from operating activities amounted to $61.0 million, which is primarily attributable to the impact of working capital items and noncash charges for depreciation and post retirement benefits. A decrease in accounts receivable had the most significant positive effect due mainly to the timing of cash receipts, along with the receipt of a federal income tax refund, offset by a decrease in accounts payable which was due to the timing of cash disbursement clearings. In addition, the net loss of $15.6 million also offset the above mentioned favorable effects. Cash Flows from Investing Activities - ------------------------------------ Capital investments for the quarters ended March 31, 1996 and 1995 amounted to $31.2 million and $21.8 million, respectively. The 1996 spending increase is primarily due to the completion of the galvanizing line at the Granite City Division, the construction of the new galvanizing line at the Midwest Division and a major upgrade at the Midwest Division tin line. The Company plans to invest approximately $90.0 million during the remainder of 1996 for capital expenditures which include the construction of the Midwest Division galvanizing line and improvements at its other facilities. Cash Flows from Financing Activities - ------------------------------------ During the first quarter of 1996, the Company utilized $21.8 million for financing activities which included scheduled payments of debt, as well as dividend payments on the Company's preferred stock. During the first quarter of 1995, the Company completed a primary offering of 6,900,000 million shares of Class B Common Stock. The issuance of this stock generated net proceeds of approximately $105 million, which was used along with cash from operations during the third quarter of 1995 to prepay related party debt. 11 PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS Detroit Coke Corporation v. NKK Chemical USA, Inc. et al. This matter, which was previously reported in the 1995 Form 10-K, involves the claim of Detroit Coke Corporation ("Detroit Coke") that the defendants (including the Company and one of its wholly owned subsidiaries) supplied it with defective coal and coal blends which allegedly caused damage to its coke making facility and environmental problems. On January 2, 1996, Detroit Coke's Motion for Reconsideration was denied and the court's order dismissing, inter alia, all claims against the Company was reaffirmed. The parties then agreed that Detroit Coke would withdraw all of its claims against the Company and its wholly owned subsidiary and NKK Chemical in exchange for mutual releases. The releases and other relevant documents have been fully executed, and a final order dismissing with prejudice the action against the Company and its wholly owned subsidiary was entered by the court on March 29, 1996. No monetary or economic consideration is to be exchanged. ENVIRONMENTAL MATTERS Multimedia Inspection at Great Lakes Division. Representatives from the United States Environmental Protection Agency ("EPA") National Enforcement Investigation Center ("NEIC") recently conducted a two-week, multimedia inspection of the Company's Great Lakes facility. Similar NEIC investigations have been conducted at other industrial facilities over the past year, including a significant number in the iron and steel industry. At the close of the inspection, the NEIC presented a preliminary list of areas of alleged noncompliance. A final report is expected from the NEIC in approximately two months and will be forwarded to EPA's Region V office. The Company is in the process of evaluating the NEIC'S preliminary findings. 12 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) See attached Exhibit Index (b) Reports on Form 8-K The Company filed a report on Form 8-K dated February 26, 1996 reporting on Item 5, Other Events. 13 SIGNATURES 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 thereunto duly authorized. NATIONAL STEEL CORPORATION BY /s/ William N. Harper ------------------------------------------------ William N. Harper, Senior Vice President and Chief Financial Officer BY /s/ Carl M. Apel ------------------------------------------------ Carl M. Apel, Corporate Controller, Accounting Date: May 10, 1996 14 NATIONAL STEEL CORPORATION QUARTERLY REPORT ON FORM 10-Q EXHIBIT INDEX FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1996 27-A Financial Data Schedule EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS DEC-31-1996 JAN-01-1996 MAR-31-1996 135,608 0 293,056 21,998 412,274 818,940 3,572,968 2,107,756 2,627,853 614,904 485,828 433 64,655 36,650 501,157 2,627,853 682,143 682,143 628,920 628,920 63,402 2,012 8,771 (20,962) (5,387) (15,575) 0 0 0 15,575 (.042) (.042)
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