-----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, PDRQzCCE78kvld8LzODZD3pCdw6b0g2uU6GZ1282x3DuyvQKxCu0W5QFJWvZT5pD E8tIfQv50NMfdefOTtZKeg== 0000950131-99-000547.txt : 19990203 0000950131-99-000547.hdr.sgml : 19990203 ACCESSION NUMBER: 0000950131-99-000547 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990201 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990202 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: 99519586 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 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): February 2, 1999 (January 28, 1999) 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 January 28, 1999 that announced its Fourth quarter and 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 January 28, 1999. 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: February 2, 1999 By: /s/ Glenn H. Gage ------------------------- Glenn H. Gage Senior Vice President and Chief Financial Officer EX-99.1 2 PRESS RELEASE DATED 1/28/98 Exhibit 99.1 News Release - ------------ Media Contact: Clarence Ehlers (219) 273-7327 Analyst/Investor Contact: Joseph A. Rainis (219) 273-7158 NATIONAL STEEL ANNOUNCES 1998 RESULTS Mishawaka, IN, January 28, 1999--National Steel Corporation (NYSE: NS) today reported net income of $18.8 million for the fourth quarter of 1998, or $0.44 per diluted common share, compared to $48.7 million, or $1.06 per diluted common share, for the fourth quarter of 1997. Net sales in the fourth quarter of 1998 totaled $685.4 million compared to $768.5 million during the same period in 1997. The fourth quarter of 1998 was favorably impacted by a LIFO inventory valuation adjustment that totaled $5.6 million, after tax. The 1997 period benefited by $13.2 million, after tax, from the sale of certain coal properties and the revaluation of related reserves as well as changes in estimates related to effective tax rates for the year 1997. Raw steel production in the fourth quarter of 1998 totaled 1.35 million tons compared to 1.60 million tons in the same 1997 period. The reduced production level reflected the impact of reduced order rates due to record levels of imported steel which prompted the Company to temporarily idle one of its blast furnaces during the quarter. This idled blast furnace will be restarted next week prior to the scheduled reline of a furnace at the Granite City Division which is scheduled to begin in early March. Shipments in the fourth quarter of 1998 totaled 1.35 million tons, a 10% decline from the same period of 1997. -more- Exhibit 99.1 "Our shipments, average selling prices and operating levels suffered as record levels of imports impacted our results during the final months of 1998," said Chairman and Chief Executive Officer Yutaka Tanaka. "Despite this challenging environment, we made $18 per ton on an operating basis in the fourth quarter as our cost reduction efforts continue to favorably impact our results. We also moved forward in our goal of improving our value-added mix of products. Our joint venture operation with Robinson Steel is progressing on schedule and we expect operations to begin later this quarter. We are also excited by the new galvanizing line we are constructing at our Great Lakes Division to serve our automotive customers," concluded the chief executive. Net income for all of 1998 totaled $83.8 million, or $1.94 per diluted common share, compared to $213.5 million, or $4.64 per diluted common share, in the same period of 1997. Net sales in 1998 totaled $2.85 billion, a decline of nine percent from record sales of $3.14 billion in 1997. Excluding the impact from the unusual credit related to a property tax refund and the gain on the disposal of non-core assets, net income in 1998 totaled $60.2 million, or $1.39 per diluted common share. Net income in 1997, excluding gains related to asset sales and an extraordinary item, totaled $169.8 million, or $3.65 per diluted common share. 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 September 30, 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 9,200 people. Visit National Steel's website at: www. nationalsteel.com. The Company's consolidated income statement and condensed balance sheets and cash flows follow: Exhibit 99.1 NATIONAL STEEL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except per share data)
Three Months Ended Year Ended December 31, December 31, 1998 1997 1998 1997 ------------- -------------- ------------- ------------ Net Sales $ 685.4 $ 768.5 $2,848.0 $3,139.7 Cost of products sold 588.7 667.5 2,496.8 2,674.4 Selling, general and administrative expense 40.7 33.9 153.6 141.3 Depreciation 33.3 31.2 129.2 134.5 Equity income of affiliates (0.2) (0.5) (1.3) (1.5) Unusual credit - - (26.6) - ------------- -------------- ------------- ------------- Income from Operations 22.9 36.4 96.3 191.0 Other (Income) Expense Financing costs (net) 3.2 0.6 10.9 14.6 Net gain on disposal of non-core assets - (4.6) (2.7) (58.7) ------------- -------------- ------------- ------------- 3.2 (4.0) 8.2 (44.1) ------------- -------------- ------------- ------------- Income Before Income Taxes and Extraordinary Item 19.7 40.4 88.1 235.1 Income tax provision (credit) 0.9 (8.3) 4.3 16.2 ------------- -------------- ------------- ------------- Income Before Extraordinary Item 18.8 48.7 83.8 218.9 Extraordinary item - - - (5.4) ------------- -------------- ------------- ------------- Net Income 18.8 48.7 83.8 213.5 Less preferred stock dividends - 2.0 - 10.2 ------------- -------------- ------------- ------------- Net Income Applicable to Common Stock $ 18.8 $ 46.7 $ 83.8 $ 203.3 ============= ============== ============= ============= PER SHARE DATA APPLICABLE TO COMMON STOCK: Basic Earnings Per Share: Income Before Extraordinary Item $ 0.44 $ 1.08 $ 1.94 $ 4.82 Extraordinary item - - - (0.12) ------------- -------------- ------------- ------------- Net Income Applicable to Common Stock $ 0.44 $ 1.08 $ 1.94 $ 4.70 ============= ============== ============= ============= Weighted Average Shares Outstanding (in thousands) 42,946 43,288 43,202 43,288 Diluted Earnings Per Share: Income Before Extraordinary Item $ 0.44 $ 1.06 $ 1.94 $ 4.76 Extraordinary item - - - (0.12) Net Income Applicable to Common Stock $ 0.44 $ 1.06 $ 1.94 $ 4.64 ============= ============== ============= ============= Weighted Average Shares Outstanding (in thousands) 42,948 43,954 43,271 43,773 OPERATING STATISTICS (in thousands of tons): Shipments 1,352 1,499 5,587 6,144 Raw steel production 1,350 1,601 6,087 6,527
NATIONAL STEEL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions)
December 31, December 31, 1998 1997 1998 1997 -------- -------- -------- -------- Assets Liabilities and Stockholders' Equity Cash and cash equivalents $ 137.9 $ 312.6 Current liabilities $ 546.8 $ 637.4 Investments -- 25.0 Receivables--net 245.9 284.3 Long-term debt 285.8 311.0 Inventories 472.8 374.2 Other long-term Deferred tax assets 23.3 8.6 liabilities 801.1 668.0 -------- -------- -------- -------- Total current assets 879.9 1,004.7 Total liabilities 1,633.7 1,616.4 Property, plant and equipment--net 1,270.5 1,229.0 Stockholders' equity 850.3 837.0 Other assets 333.6 219.8 -------- -------- Total Assets $2,484.0 $2,453.4 Total Liabilities and Equity $2,484.0 $2,453.4 ======== ======== ======== ========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)
Year Ended December 31, 1998 1997 -------- -------- Cash provided by operating activities: Net income $ 83.8 $ 213.5 Depreciation 129.2 134.5 Working capital items: Investments 25.0 (25.0) Receivables 38.5 4.8 Inventories (98.6) 56.4 Accounts payable & accrued liabilities (96.3) 75.1 All other (49.9) (127.1) -------- -------- 31.7 332.2 -------- -------- Cash provided by (used in) investing activities: Purchases of property, plant and equipment (net) (171.1) (151.8) Proceeds from the sale of assets 4.7 320.3 -------- -------- (166.4) 168.5 -------- -------- Cash used in financing activities: Repayment of debt (34.2) (189.4) Borrowings 14.7 4.0 Repurchase of Common Stock (8.4) -- Redemption of Preferred Stock - Series A and B -- (83.8) Common stock dividends (12.1) -- Other -- (27.9) -------- -------- (40.0) (297.1) -------- -------- Increase (decrease) in cash and cash equivalents (174.7) 203.6 Cash and cash equivalents at the beginning of the period 312.6 109.0 -------- -------- Cash and cash equivalents at the end of the period $ 137.9 $ 312.6 ======== ========
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