-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, ciyrmQSRbesfVb7BRYDC3Jy//s0fBj6lswwvQdq2vSRvFPcXUpFSJ7PVKVsnL2Rd 5yooMNoi160rQh3bBpMnxA== 0000745448-94-000025.txt : 19941116 0000745448-94-000025.hdr.sgml : 19941116 ACCESSION NUMBER: 0000745448-94-000025 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941114 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MASCOTECH INC CENTRAL INDEX KEY: 0000745448 STANDARD INDUSTRIAL CLASSIFICATION: 3714 IRS NUMBER: 382513957 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-12068 FILM NUMBER: 94559198 BUSINESS ADDRESS: STREET 1: 21001 VAN BORN RD CITY: TAYLOR STATE: MI ZIP: 48180 BUSINESS PHONE: 3132747405 MAIL ADDRESS: STREET 1: 21001 VAN BORN ROAD CITY: TAYLOR STATE: MI ZIP: 48180 FORMER COMPANY: FORMER CONFORMED NAME: MASCO INDUSTRIES INC DATE OF NAME CHANGE: 19930629 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarterly Period Ended September 30, 1994 Commission File Number 1-12068 MASCOTECH, INC. (Exact name of Registrant as specified in its Charter) Delaware 38-2513957 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 21001 Van Born Road, Taylor, Michigan 48180 (Address of principal executive offices) (Zip Code) (313) 274-7405 (Telephone Number) 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 Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date. Shares Outstanding at Class October 31, 1994 Common stock, par value $1 per share 56,610,000 MASCOTECH, INC. INDEX Page No. Part I. Financial Information Item 1. Financial Statements Consolidated Condensed Balance Sheet - September 30, 1994 and December 31, 1993 1 Consolidated Condensed Statements of Income for the Three Months and Nine Months Ended September 30, 1994 and 1993 2 Consolidated Condensed Statement of Cash Flows for the Nine Months Ended September 30, 1994 and 1993 3 Notes to Consolidated Condensed Financial Statements 4-5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 6-7 Part II. Other Information and Signature 8-9 PART I. FINANCIAL INFORMATION Item 1. Financial Statements MASCOTECH, INC. CONSOLIDATED CONDENSED BALANCE SHEET September 30, 1994 and December 31, 1993 (Dollars in thousands) September 30, December 31, ASSETS 1994 1993 Current assets: Cash and cash investments $ 37,350 $ 83,200 Marketable securities 70,310 27,790 Receivables 257,280 238,820 Inventories 163,230 140,040 Deferred and refundable income taxes 27,070 41,780 Prepaid expenses and other assets 56,830 24,210 Total current assets 612,070 555,840 Equity and other investments in affiliates 189,220 170,510 Property and equipment, net 565,300 490,190 Excess of cost over net assets of acquired companies 433,600 439,760 Notes receivable and other assets 68,690 66,100 Net assets of discontinued operations 21,190 67,510 Total assets $1,890,070 $1,789,910 LIABILITIES Current liabilities: Accounts payable $ 105,310 $ 95,520 Accrued liabilities 99,130 103,260 Current portion of long-term debt 2,370 2,830 Total current liabilities 206,810 201,610 Long-term debt 867,700 788,360 Deferred income taxes and other long-term liabilities 136,470 132,310 Total liabilities 1,210,980 1,122,280 SHAREHOLDERS' EQUITY Preferred stock, $1 par, shares authorized: 25 million; outstanding: 10.8 million 10,800 10,800 Common stock, $1 par, shares authorized: 250 million; outstanding: 56.6 million and 60.5 million 56,610 60,510 Paid-in capital 317,800 367,290 Retained earnings 291,760 232,120 Cumulative translation adjustments 2,120 (3,090) Total shareholders' equity 679,090 667,630 Total liabilities and shareholders' equity $1,890,070 $1,789,910 The accompanying notes are an integral part of the consolidated condensed financial statements. 1 MASCOTECH, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME For the Three and Nine Months Ended September 30, 1994 and 1993 (Dollars in thousands except per share amounts)
Three Months Ended Nine Months Ended September 30, September 30, 1994 1993 1994 1993 Net sales $ 416,500 $ 373,680 $ 1,261,690 $ 1,190,280 Cost of sales (343,060) (295,080) (1,018,250) (941,320) Selling, general and administrative expenses (49,330) (44,780) (143,300) (136,930) Operating profit 24,110 33,820 100,140 112,030 Other income (expense), net: Interest expense, Masco Corporation --- (1,950) --- (5,850) Other interest expense (13,160) (19,010) (36,080) (55,980) Equity and interest income from affiliates 11,570 7,380 24,260 17,810 Gain from change in investment of equity affiliates --- --- --- 9,470 Other income, net 4,100 7,970 32,020 14,650 2,510 (5,610) 20,200 (19,900) Income from continuing operations before income taxes and extraordinary income 26,620 28,210 120,340 92,130 Income taxes 10,840 13,210 48,820 39,750 Income from continuing operations before extraordinary income 15,780 15,000 71,520 52,380 Income from operations of discontinued segment --- 320 --- 2,200 Income before extraordinary income 15,780 15,320 71,520 54,580 Extraordinary income (net of income taxes) 2,600 --- 2,600 --- Net income $ 18,380 $ 15,320 $ 74,120 $ 54,580 Preferred stock dividends $ 3,240 $ 5,420 $ 9,720 $ 10,250 Earnings attributable to common stock $ 15,140 $ 9,900 $ 64,400 $ 44,330 Earnings per common and common equivalent share: Primary: Continuing operations $ .21 $ .17 $ .96 $ .74 Income from operations of discontinued segment -- .01 -- .04 Income before extraordinary income .21 .18 .96 .78 Extraordinary income .04 -- .03 -- Earnings attributable to common stock $ .25 $ .18 $ .99 $ .78 Fully diluted: Continuing operations $ .21 $ .17 $ .93 $ .70 Income from operations of discontinued segment -- .01 -- .03 Income before extraordinary income .21 .18 .93 .73 Extraordinary income .04 -- .03 -- Earnings attributable to common stock $ .25 $ .18 $ .96 $ .73 Cash dividends declared $ .03 .02 $ .07 $ .04 The accompanying notes are an integral part of the consolidated condensed financial statements. 2
MASCOTECH, INC. CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 1994 and 1993 (Dollars in thousands) Nine Months Ended September 30, 1994 1993 CASH FROM (USED FOR): OPERATIONS: Net cash from earnings $ 80,490 $ 81,500 (Increase) in inventories (15,550) (16,950) (Increase) in receivables (27,890) (15,350) Increase (decrease) in accounts payable and accrued liabilities 6,560 (7,430) (Increase) in prepaid expenses and other assets (32,120) (2,560) (Increase) in marketable securities, net (42,520) (19,870) Discontinued operations, net --- 8,830 Other, net 7,670 (10,660) Net cash (used for) from operating activities (23,360) 17,510 FINANCING: Issuance of convertible debt 337,240 --- Increase in other debt 69,760 --- Retirement of 10 1/4% notes (253,120) --- Payment of other debt (86,040) (164,910) Issuance of preferred stock --- 209,320 Retirement of Company Common Stock (54,130) --- Payment of preferred stock dividends (9,720) (7,160) Payment of common stock dividends (4,670) (1,000) Other, net (3,400) 1,250 Net cash (used for) from financing activities (4,080) 37,500 INVESTMENTS: Capital expenditures (86,350) (30,910) Proceeds from sale of Energy-related businesses 41,220 --- Receipt of cash from notes receivable 13,590 14,000 Sale of common stock of affiliate 18,180 --- Cash paid Masco Corporation --- (87,500) Other, net (5,050) (1,650) Net cash (used for) investing activities (18,410) (106,060) CASH AND CASH INVESTMENTS: (Decrease) for the nine months (45,850) (51,050) At January 1 83,200 76,000 37,350 24,950 Less cash from discontinued operations --- (3,770) At September 30 $ 37,350 $ 21,180 Supplemental Cash Flow Information: Net cash paid during the period for: Interest $ 50,100 $ 73,400 Income taxes $ 21,350 $ 15,800 The accompanying notes are an integral part of the consolidated condensed financial statements. 3 MASCOTECH, INC. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS A. In the opinion of the Company, the accompanying unaudited consolidated condensed financial statements contain all adjustments, which are normal and recurring in nature, necessary to present fairly its financial position as at September 30, 1994, the results of operations for the three and nine months ended September 30, 1994 and 1993, and cash flows for the nine months ended September 30, 1994 and 1993. The statements of income and cash flows and related notes for the nine months ended September 30, 1993 have been reclassified to present the Energy-related segment as discontinued operations. In addition, the balance sheet as of September 30, 1994 and December 31, 1993 reflects the Energy-related segment as discontinued operations. Certain 1993 amounts have been reclassified to conform to the presentation adopted in 1994. Primary earnings per common share were calculated based on 74.6 million and 56.9 million weighted average common shares outstanding for the nine months ended September 30, 1994 and 1993, respectively; and on 60.2 million and 55.6 million weighted average common shares outstanding for the three months ended September 30, 1994 and 1993, respectively. Fully diluted earnings per common share were calculated based on 84.8 million and 67.9 million weighted average common shares outstanding for the nine months ended September 30, 1994 and 1993, respectively; and on 70.3 million and 66.1 million weighted average common shares outstanding for the three months ended September 30, 1994 and 1993, respectively. Primary and fully diluted earnings per common share amounts for the first through third quarters do not total to the 1994 year to date amounts. This is the result of the purchase and retirement of shares throughout the year and a lower dilutive effect from outstanding options and warrants on the year to date calculation. B. Inventories by component are as follows (in thousands): September 30, December 31, 1994 1993 Finished goods $ 32,330 $ 39,400 Work in process 57,030 38,240 Raw materials 73,870 62,400 $163,230 $140,040 C. Property and equipment, net reflects accumulated depreciation of $343 million and $308 million as at September 30, 1994 and December 31, 1993, respectively. D. Other income, net for the nine months ended September 30, 1994 includes gains, primarily during the first six months of 1994, aggregating approximately $18 million pre-tax from the sale by the Company of a portion of its common stock holdings of an equity affiliate. E. In January, 1994, the Company issued, in a public offering, $345 million of 4 1/2% Convertible Subordinated Debentures due December 15, 2003. These debentures are convertible into Company Common Stock at $31 per share. The net proceeds of approximately $337 million were used to redeem $250 million of 10 1/4% Subordinated Notes on February 1, 1994 and to reduce other indebtedness. 4 MASCOTECH, INC. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (concluded) F. The following presents combined supplemental financial data of the Company and TriMas Corporation as one entity, with MascoTech as the parent company. The Company had an equity ownership interest in TriMas of approximately 41 percent at September 30, 1994 and approximately 28 percent at September 30, 1993. Intercompany transactions have been eliminated. Approximate combined condensed financial data are as follows (in thousands): September 30 1994 1993 Current assets $ 865,720 $ 808,090 Current liabilities (262,950) (239,640) Working capital 602,770 568,450 Property and equipment, net 731,630 626,440 Excess of cost over net assets of acquired companies 522,890 565,200 Other assets 256,970 324,040 Long-term debt (1,106,300) (1,138,690) Deferred income taxes and other long-term liabilities (165,720) (230,080) Equity of the other shareholders of TriMas (163,150) (119,880) Equity of shareholders of MascoTech $ 679,090 $ 595,480 Net sales $1,672,540 $1,522,960 Operating profit $ 170,840 $ 165,540 Income from continuing operations $ 71,520 $ 52,380 Net income $ 74,120 $ 54,580 Earnings attributable to common stock $ 64,400 $ 44,330 G. During 1994, the Company has repurchased and retired approximately four million shares of its Common Stock in open-market purchases, pursuant to a Board of Directors' authorized repurchase program. H. During the second quarter of 1994 the Company amended its existing Revolving Credit Agreement with a group of banks, resulting in an extension of the due date to July, 1998 from January, 1997. I. Results for the third quarter of 1994 include a $4.4 million pre-tax extraordinary gain ($2.6 million after-tax or $.04 per common share) related to the early extinguishment of convertible debt. J. At September 30, 1994, the Company had approximately $45 million due within one year under short-term bank lines of credit. As the Company has the ability and the intent to maintain this amount of borrowing on a long- term basis, borrowings under this facility have been classified as long- term debt. 5 MASCOTECH, INC. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Sales from continuing operations for the third quarter 1994 were the highest for any third quarter since MascoTech became a publicly owned company in 1984. Net sales from continuing operations for the third quarter ended September 30, 1994 increased 11 percent to $417 million from $374 million in 1993. Sales of transportation-related products for the third quarter of 1994 increased 19 percent, benefitting from increased market share and higher levels of automotive production. Sales of specialty products for the third quarter of 1994 decreased eight percent from third quarter 1993. Net sales for the nine month period ended September 30, 1994 increased six percent over the comparable period in 1993. Sales of transportation-related products for the nine months ended September 30, 1994 increased 10 percent and sales of specialty products decreased six percent from the comparable period in 1993. Transportation-related product sales for the nine month period ended September 30, 1994 were reduced by the phaseout in 1993 of certain product programs by the Company's automotive customers. This reduction was offset by higher levels of automotive production and by certain new and replacement programs introduced in 1994. Specialty products sales for the three and nine month periods were adversely impacted by the continuing softness in the commercial construction markets served by the Company, and the continued decline in defense spending. Net income from continuing operations, including extraordinary income, in the third quarter of 1994, after preferred stock dividends, increased 58 percent to $15.1 million or $.25 per common share, compared with $9.6 million or $.17 per common share in the comparable period in 1993. Results for the nine months and three months ended September 30, 1994 benefitted from reduced interest expense, resulting primarily from the redemption in early 1994 of subordinated debt with lower cost financing, and increased equity earnings. This was partially offset by lower interest income and reduced gains from marketable securities as compared with the comparable periods in 1993. In addition, the Company recognized an extraordinary gain of $4.4 million pre-tax ($.04 per common share after-tax) in the third quarter of 1994 from the early extinguishment of debt securities. Third quarter 1993 earnings were reduced by a charge, principally relating to the adjustment of deferred taxes, of approximately $.04 per common share reflecting federal legislation which increased the corporate income tax rate. Although third quarter 1994 sales and earnings per common share were improved over the comparable period in 1993, the Company's operating margins decreased due primarily to increased costs and expenses reflecting start-up costs associated with its expanded capital investment programs, launch costs for new products and increased steel costs, for its transportation-related products businesses. In addition, margins continue to be hampered by the operating results of our specialty products businesses. Results for the nine months ended September 30, 1994 include gains, primarily during the first six months of 1994, of approximately $18 million pre- tax from the sale by the Company of a portion of its common stock holdings of an equity affiliate. Results for the nine months ended September 30, 1993 include gains aggregating approximately $9 million pre-tax, recognized during the second quarter, associated with the sale of stock through a public offering by an equity affiliate. This income was largely offset by costs and expenses related to cost reduction initiatives, the restructuring of certain operations and product lines, adjustments to the carrying value of certain long term assets, and other costs and expenses. 6 MASCOTECH, INC. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (concluded) As previously announced, the Company continues to review alternatives to enhance shareholder value and improve the returns on assets employed in certain of its businesses, and is considering the possibility of major strategic restructurings and other initiatives which, if pursued, could result in substantial one-time pre-tax, noncash charges of as much as several hundred million dollars but which should have a favorable long-term effect on the Company's balance sheet and future per common share earnings. The Company also has announced that it intends to increase its planned 1994 and 1995 expenditures for capital programs, including new advanced manufacturing technologies, primarily in its transportation-related businesses, to in excess of $300 million. These additional investments, the majority of which will be made in 1994, reflect the Company's belief in its favorable long- term outlook and are planned to meet increased demand for certain current product programs, to provide capacity for new products that the Company expects to begin producing over the next several years, and to enhance the Company's leadership positions in advanced manufacturing technologies related to its forging and metal forming businesses. In both 1992 and 1993, capital expenditures approximated $60 million. The Company's Board of Directors has authorized the repurchase of up to ten million shares of its common stock and convertible preferred stock in open- market purchases, privately negotiated transactions or otherwise. The Company has repurchased to date during 1994 approximately four million of its common shares pursuant to this authorization at a cost of approximately $54 million. During the second quarter of 1994 the Company amended its existing Revolving Credit Agreement with a group of banks, resulting in an extension of the due date to July, 1998 from January, 1997. In late 1993, the Company adopted a formal plan to divest its energy- related business segment, which consisted of seven business units with net sales and operating profit of $153.8 million and $4.6 million, respectively, for the nine months ended September 30, 1993. As of September 30, 1994, five energy- related business units have been sold for approximately $140 million of proceeds. The remaining energy-related business units had net assets at September 30, 1994 of $21.2 million (adjusted to reflect the anticipated loss upon disposition, net of tax benefit). The energy-related business segment had net sales of $56.0 million and a net operating loss of $2.9 million (charged against the loss provision established in 1993) for the nine months ended September 30, 1994. The Company's cash and marketable securities, additional borrowings available under the Company's revolving credit agreement and anticipated internal cash flow are expected to provide sufficient liquidity to fund its near-term working capital, expanded capital expenditure program, and other investment needs. The Company believes that its longer-term working capital and other general corporate requirements, including the retirement of its Senior Subordinated Notes maturing in 1995, will be satisfied through various sources including the following: its internal cash flow; divestiture of the remaining businesses in the energy-related segment, other nonstrategic operating assets and certain additional financial assets; and, to the extent necessary, future financings in the financial markets. At September 30, 1994, current assets were approximately three times current liabilities. 7 PART II. OTHER INFORMATION MASCOTECH, INC. Items 1 through 5 are not applicable. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits: Exhibit 11 Computation of Earnings Per Common Share - Primary and Fully Diluted Exhibit 12 Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends Exhibit 27 Financial Data Schedules (b) Reports on Form 8-K: None 8 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 thereunto duly authorized. MASCOTECH, INC. (Registrant) Date: November 11, 1994 By: /s/ Timothy Wadhams Timothy Wadhams Vice President - Controller and Treasurer (Chief accounting officer and authorized signatory) 9 MASCOTECH, INC. EXHIBIT INDEX Exhibit Exhibit 11 Computation of Earnings Per Common Share - Primary and Fully Diluted Exhibit 12 Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends Exhibit 27 Financial Data Schedules 10 EX-11 2 Exhibit 11 MASCOTECH, INC. Computation of Earnings Per Common Share Primary and Fully Diluted (In thousands except per share amounts)
Three Months Ended Nine Months Ended September 30, September 30, 1994 1993 1994 1993 PRIMARY: Income from continuing operations before extraordinary income $15,780 $15,000 $71,520 $52,380 Preferred stock dividends 3,240 5,420 9,720 10,250 Income from continuing operations before extraordinary income attributable to common stock 12,540 9,580 61,800 42,130 Add convertible preferred stock dividends --- (A) --- 9,720 --- Earnings for computing primary earnings from continuing operations per common share before extraordinary income 12,540 9,580 71,520 42,130 Income from operations of discontinued segment --- 320 --- 2,200 Earnings for computing primary earnings per common share before extraordinary income 12,540 9,900 71,520 44,330 Extraordinary income (net of income taxes) 2,600 --- 2,600 --- Earnings attributable to common stock, as adjusted $15,140 $ 9,900 $74,120 $44,330 Weighted average number of common shares outstanding during each period 58,270 50,200 59,690 53,190 Addition from assumed exercise of stock options and warrants 1,930 5,430 4,110 3,740 Addition from assumed conversion of preferred stock --- (A) --- 10,800 --- Weighted average number of common shares and equivalents outstanding during each period--without dilution 60,200 55,630 74,600 56,930 Primary earnings per common and common equivalent share: Continuing operations $.21 $.17 $.96 $.74 Income from operations of discontinued segment -- .01 -- .04 Income before extraordinary income .21 .18 .96 .78 Extraordinary income .04 -- .03 -- Earnings attributable to common stock $.25 $.18 $.99 $.78
Exhibit 11 MASCOTECH, INC. Computation of Earnings Per Common Share Primary and Fully Diluted (In thousands except per share amounts) (concluded)
Three Months Ended Nine Months Ended September 30, September 30, 1994 1993 1994 1993 FULLY DILUTED: Income from continuing operations before extraordinary income $15,780 $15,000 $71,520 $52,380 Preferred stock dividends 3,240 5,420 9,720 10,250 Income from continuing operations before extraordinary income attributable to common stock 12,540 9,580 61,800 42,130 Add after-tax convertible debenture related expenses 2,390 1,770 7,000 5,510 Add convertible preferred stock dividends --- (A) --- 9,720 --- Earnings for computing fully diluted earnings from continuing operations per common share before extraordinary income 14,930 11,350 78,520 47,640 Income from operations of discontinued segment --- 320 --- 2,200 Earnings for computing fully diluted earnings per common share before extraordinary income 14,930 11,670 78,520 49,840 Extraordinary income (net of income taxes) 2,600 --- 2,600 --- Earnings attributable to common stock, as adjusted $17,530 $11,670 $81,120 $49,840 Weighted average number of common shares outstanding during each period 58,270 50,200 59,690 53,190 Addition from assumed conversion of convertible debentures as of the issue date 10,090 10,380 10,150 10,380 Addition from assumed exercise of stock options and warrants 1,930 5,540 4,110 4,360 Addition from assumed conversion of preferred stock --- (A) --- 10,800 --- Weighted average number of common shares and equivalents outstanding during each period --fully diluted basis 70,290 66,120 84,750 67,930 Fully diluted earnings per common and common equivalent share: Continuing operations $.21 $.17 $.93 $.70 Income from operations of discontinued segment -- .01 -- .03 Income before extraordinary income .21 .18 .93 .73 Extraordinary income .04 -- .03 -- Earnings attributable to common stock $.25 $.18 $.96 $.73 (A) Amounts are not reflected in the calculation for three months ended September 30, 1994 as results of assumed conversion would be anti-dilutive.
EX-12 3 Exhibit 12 MASCOTECH, INC. Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends (Dollars In Thousands)
9 Months Ended September 30, For The Years Ended December 31 1994 1993 1992 1991 1990 1989 Earnings Before Income Taxes and Fixed Charges: Income (loss) before income taxes and extraordinary income..................... $120,340 $121,180 $ 68,250 $(12,470) $(30,240) $ 85,410 Add (deduct) equity in undistributed (earnings) losses of less-than-fifty- percent owned companies.... (21,060) (19,930) (21,760) (3,530) (3,430) (1,980) Add interest on indebtedness, net.......... 37,170 83,000 87,830 124,220 139,770 146,570 Add amortization of debt expense.................... 2,760 4,390 1,930 2,230 2,670 3,510 Estimated interest factor for rentals................ 4,570 5,550 5,740 5,220 4,520 4,470 Earnings before income taxes and fixed charges.... $143,780 $194,190 $141,990 $115,670 $113,290 $237,980 Fixed Charges: Interest on indebtedness, net........................ $ 37,320 $ 83,110 $ 87,980 $124,370 $140,380 $147,320 Amortization of debt expense.................... 2,760 4,390 1,930 2,230 2,670 3,510 Estimated interest factor for rentals................ 4,570 5,550 5,740 5,220 4,520 4,470 Total fixed charges...... 44,650 93,050 95,650 131,820 147,570 155,300 Preferred stock dividend requirement (a)............ 16,440 25,860 17,140 11,350 120 130 Combined fixed charges and preferred stock dividends.. $ 61,090 $118,910 $112,790 $143,170 $147,690 $155,430 Ratio of earnings to fixed charges................ 3.2 2.1 1.5 .9(b) .8(d) 1.5 Ratio of earnings to combined fixed charges and preferred stock dividends.............. 2.4 1.6 1.3 .8(c) .8(e) 1.5 (a) Represents amount of income before provision for income taxes required to meet the preferred stock dividend requirements of the Company and its 50% owned companies. (b) 1991 earnings were inadequate to cover fixed charges by $16,150. (c) 1991 earnings were inadequate to cover combined fixed charges and preferred stock dividends by $27,500. (d) 1990 earnings were inadequate to cover fixed charges by $34,280. (e) 1990 earnings were inadequate to cover combined fixed charges and preferred stock dividends by $34,400.
EX-27 4
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SEPTEMBER 30, 1994 MASCOTECH, INC. FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1000 9-MOS DEC-31-1993 SEP-30-1994 37,350 70,310 257,280 0 163,230 612,070 908,090 (342,790) 1,890,070 206,810 867,700 56,610 0 10,800 611,680 1,890,070 1,261,690 1,261,690 1,018,250 1,018,250 0 0 36,080 120,340 48,820 71,520 0 2,600 0 74,120 .99 .96 RECEIVABLES ARE PRESENTED NET OF ALLOWANCES
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