UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
FORM 10-Q
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
------------------------------------------------
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
------------------------- --------------------
NEW CF&I, INC.
(Exact name of registrant as specified in its charter)
Delaware 02-20781 93-1086900
- -------------------------------------------------------------------------------
(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation or organization) Identification Number)
1000 Broadway Building, Suite 2200, Portland, Oregon 97205
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(503) 223-9228
- -------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- -------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
CF&I STEEL, L.P.
(Exact name of registrant as specified in its charter)
Delaware 02-20779 93-1103440
- -------------------------------------------------------------------------------
(State or other
jurisdiction of (Commission File Number) (IRS Employer
incorporation or organization) Identification Number)
1000 Broadway Building, Suite 2200, Portland, Oregon 97205
- ------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(503) 223-9228
- ------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- ------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
<PAGE>
NEW CF&I, INC.
CF&I STEEL, L.P.
INDEX
Page
----
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements - New CF&I, Inc.
--------------
Consolidated Balance Sheets
March 31, 1997 (unaudited)
and December 31, 1996 .................................2
Consolidated Statements of Income (unaudited)
Three months ended March 31, 1997
and 1996 ..............................................3
Consolidated Statements of Cash Flows (unaudited)
Three months ended March 31, 1997
and 1996 ..............................................4
Notes to Consolidated Financial
Statements (unaudited)...............................5-6
Financial Statements - CF&I Steel, L.P.
----------------
Balance Sheets
March 31, 1997 (unaudited)
and December 31, 1996 .................................7
Statements of Operations (unaudited)
Three months ended March 31, 1997
and 1996 ..............................................8
Statements of Cash Flows (unaudited)
Three months ended March 31, 1997
and 1996 ............................................. 9
Notes to Financial
Statements (unaudited)................................10
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ..............11-13
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.........................14
SIGNATURES........................................................14
-1-
<PAGE>
<TABLE>
NEW CF&I, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
<CAPTION>
March 31,
1997 December 31,
(Unaudited) 1996
----------- ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 4,214 $ 3
Trade accounts receivable, net 56,394 49,380
Inventories 50,084 50,577
Deferred tax asset 4,290 5,014
Other 2,077 2,045
-------- --------
Total current assets 117,059 107,019
-------- --------
Property, plant and equipment:
Land and improvements 3,530 3,530
Buildings 6,043 6,043
Machinery and equipment 239,453 236,566
Construction in progress 2,344 4,011
-------- --------
251,370 250,150
Accumulated depreciation (26,059) (22,996)
-------- --------
225,311 227,154
-------- --------
Excess of cost over net assets acquired, net 36,707 36,962
Other assets 13,958 16,927
-------- --------
$393,035 $388,062
======== ========
LIABILITIES
Current liabilities:
Current portion of long-term debt $ 6,964 $ 6,574
Accounts payable 40,108 33,892
Accrued expenses 16,298 17,343
-------- --------
Total current liabilities 63,370 57,809
Long-term debt 41,527 44,716
Long-term debt - Oregon Steel Mills, Inc. 208,400 205,700
Environmental liability 32,941 33,243
Deferred employee benefits 6,237 6,069
-------- --------
352,475 347,537
-------- --------
Minority interests (40) (10)
-------- --------
Redeemable common stock 21,840 21,840
-------- --------
STOCKHOLDERS' EQUITY
Common stock 1
Additional paid-in capital 16,603 16,603
Retained earnings 2,156 2,091
-------- --------
18,760 18,695
-------- --------
$393,035 $388,062
======== ========
The accompanying notes are an integral part of the consolidated
financial statements.
</TABLE>
-2-
<PAGE>
NEW CF&I, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands)
(Unaudited)
Three Months Ended
March 31,
--------------------------
1997 1996
-------- --------
Sales $111,220 $112,643
Costs and expenses:
Cost of sales 98,871 99,478
Selling, general and administrative
expenses 4,979 4,908
Profit participation - 275
-------- --------
Operating income 7,370 7,982
Other income (expense):
Interest and dividend income 192 10
Interest expense (7,018) (4,581)
Minority interest 31 (117)
Other, net (107) -
-------- --------
Income before income taxes 468 3,294
Income tax expense (403) (1,394)
-------- --------
Net income $ 65 $ 1,900
======== ========
The accompanying notes are an integral part of the consolidated
financial statements.
-3-
<PAGE>
<TABLE>
NEW CF&I, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
<CAPTION>
Three Months Ended March 31,
----------------------------
1997 1996
------ -------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 65 $ 1,900
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 3,374 3,151
Deferred income taxes 3,663 1,196
Minority interest (31) 117
Other, net 183 -
Changes in current assets and liabilities, net (736) (4,906)
-------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES 6,518 1,458
-------- --------
Cash flows from investing activities:
Additions to property, plant and equipment (2,397) (11,427)
Other, net 188 (897)
-------- --------
NET CASH USED BY INVESTING ACTIVITIES (2,209) (12,324)
-------- --------
Cash flows from financing activities:
Borrowings from Oregon Steel Mills, Inc. 53,100 50,650
Payments to Oregon Steel Mills, Inc. (50,400) (38,500)
Payment of long-term debt (2,798) (1,281)
-------- --------
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (98) 10,869
-------- --------
Net increase in cash and cash equivalents 4,211 3
Cash and cash equivalents at beginning of period 3 -
-------- --------
Cash and cash equivalents at end of period $ 4,214 $ 3
======== ========
Supplemental disclosures of cash flow information:
Cash paid for:
Interest $ 2,318 $ 1,243
NON-CASH INVESTING AND FINANCING ACTIVITIES:
At March 31, 1996, the Company financed property, plant and equipment with
accounts payable of $13.7 million
The accompanying notes are an integral part of the consolidated
financial statements.
</TABLE>
-4-
<PAGE>
NEW CF&I, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
---------------------
The consolidated financial statements include the accounts of New CF&I,
Inc. and its subsidiaries ("Company"). All significant intercompany
balances and transactions have been eliminated. Certain previously
reported amounts have been reclassified to conform with current period
presentation.
The unaudited financial statements include all adjustments (consisting of
normal recurring accruals) which, in the opinion of management, are
necessary for a fair presentation of the interim periods. Results for an
interim period are not necessarily indicative of results for a full year.
Reference should be made to the Company's 1996 Form 10-K for additional
disclosures including a summary of significant accounting policies.
2. Inventories
-----------
Inventories consist of:
March 31, December 31,
1997 1996
-------- ------------
(In thousands)
Raw materials $ 18,055 $16,246
Semifinished product 12,766 16,488
Finished product 9,822 8,245
Stores and operating supplies 9,441 9,598
-------- -------
Total Inventory $ 50,084 $50,577
======== =======
3. Contingencies
-------------
ENVIRONMENTAL. The Company owns a 95.2 percent interest in CF&I Steel,
L.P. ("CF&I") which owns the Pueblo, Colorado steel mill. In connection
with CF&I's acquisition of certain assets from CF&I Steel Corporation in
1993, CF&I established a reserve of $36.7 million for environmental
remediation. The Colorado Department of Public Health and Environment
issued a 10-year post-closure permit with two ten-year renewals to CF&I
which became effective on October 30, 1995. The permit contains a schedule
for corrective actions to be completed which is substantially reflective
of a straight-line rate of expenditure over 30 years. At March 31, 1997,
the accrued liability was $35.1 million related to this remediation, of
which $32.9 million is classified as non-current in the consolidated
balance sheet.
GUARANTEES. Oregon Steel Mills, Inc. ("Oregon Steel") has outstanding $235
million principal amount of 11% First Mortgage Notes due 2003 ("Notes").
The Company has guaranteed the obligations of Oregon Steel under the
Notes, and those guarantees are secured by a lien on substantially all the
property, plant and equipment and certain other assets of the Company,
excluding accounts receivable and inventory.
In addition, Oregon Steel maintains a $125 million credit agreement with a
group of banks which is collateralized, in part, by the accounts
receivable and inventory of the Company, and also guaranteed by the
Company.
-5-
<PAGE>
4. Proceeds from Insurance Settlement
----------------------------------
Sales for the first quarter of 1997 include approximately $2.5 million of
insurance proceeds as reimbursement of lost profits resulting from lost
production during the third and fourth quarters of 1996 related to the
failure of one of the power transformers servicing the Company. In total,
the Company received $7.0 million in insurance proceeds of which $4.5
million was recorded in the fourth quarter of 1996.
-6-
<PAGE>
<TABLE>
CF&I STEEL, L.P.
BALANCE SHEETS
(In thousands)
<CAPTION>
March 31,
1997 December 31,
(Unaudited) 1996
---------- ------------
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 4,211 $ -
Trade accounts receivable, net 55,781 48,918
Inventories 49,950 50,414
Other 1,906 1,610
--------- --------
Total current assets 111,848 100,942
--------- --------
Property, plant and equipment:
Land and improvements 3,525 3,525
Buildings 5,936 5,936
Machinery and equipment 237,298 234,441
Construction in progress 2,344 4,011
--------- --------
249,103 247,913
Accumulated depreciation (25,233) (22,225)
--------- --------
223,870 225,688
--------
Excess of cost over net assets acquired, net 36,707 36,963
Other assets 13,173 13,202
--------- --------
$ 385,598 $376,795
========= ========
LIABILITIES
Current liabilities:
Current portion of long-term debt $ 6,964 $ 6,574
Accounts payable 43,480 37,193
Accrued expenses 15,323 16,647
--------- --------
Total current liabilities 65,767 60,414
Long-term debt 41,527 44,716
Long-term debt - Oregon Steel Mills, Inc. 208,400 205,700
Long-term debt - New CF&I, Inc. 21,756 17,400
Environmental liability 32,941 33,243
Deferred employee benefits 6,237 6,069
--------- --------
376,628 367,542
--------- --------
PARTNERS' EQUITY
Limited partner (40) (10)
General partner 9,010 9,263
--------- --------
8,970 9,253
--------- --------
$ 385,598 $376,795
========= ========
The accompanying notes are an integral part of the
financial statements.
</TABLE>
-7-
<PAGE>
CF&I STEEL, L.P.
STATEMENTS OF OPERATIONS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
----------------------------
1997 1996
-------- --------
Sales $109,753 $111,479
Costs and expenses:
Cost of sales 97,651 98,649
Selling, general and administrative
expenses 4,845 4,777
Profit participation - 275
-------- --------
Operating income 7,257 7,778
Other income (expense):
Interest and dividend income 8 9
Interest expense (7,441) (4,961)
Other, net (107) -
-------- --------
Net income (loss) $ (283) $ 2,826
======== ========
The accompanying notes are an integral part of the
financial statements.
-8-
<PAGE>
<TABLE>
CF&I STEEL, L.P.
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
<CAPTION>
Three Months Ended March 31,
----------------------------
1997 1996
---------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income $ (283) $ 2,826
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 3,319 3,097
Other, net 50 -
Changes in current assets and liabilities, net (809) (4,482)
-------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,277 1,441
-------- --------
Cash flows from investing activities:
Additions to property, plant and equipment (2,511) (11,412)
Other, net 188 (898)
-------- --------
NET CASH USED BY INVESTING ACTIVITIES (2,323) (12,310)
-------- --------
Cash flows from financing activities:
Borrowings from related parties 57,456 50,650
Payments to related parties (50,400) (38,500)
Payment of long-term debt (2,799) (1,281)
-------- --------
NET CASH PROVIDED BY FINANCING ACTIVITIES 4,257 10,869
-------- --------
Net increase in cash and cash equivalents 4,211 -
Cash and cash equivalents at beginning of year - -
-------- --------
Cash and cash equivalents at end of year $ 4,211 $ -
======== ========
Supplemental disclosures of cash flow information:
Cash paid for:
Interest $ 8,208 $ 5,101
NON-CASH INVESTING AND FINANCING ACTIVITIES:
At March 31, 1996, the Company financed property, plant and equipment with
accounts payable of $13.7 million.
The accompanying notes are an integral part of the
financial statements.
</TABLE>
-9-
<PAGE>
CF&I STEEL, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
---------------------
The financial statements include the accounts of CF&I Steel, L.P.
("Partnership"). Certain previously reported amounts have been
reclassified to conform with current period presentation.
The unaudited financial statements include all adjustments (consisting of
normal recurring accruals) which, in the opinion of management, are
necessary for a fair presentation of the interim periods. Results for an
interim period are not necessarily indicative of results for a full year.
Reference should be made to the Partnership's 1996 Form 10-K for
additional disclosures including a summary of significant accounting
policies.
2. Inventories
-----------
Inventories consist of:
March 31, December 31,
--------- ------------
1997 1996
--------- ------------
(In thousands)
Raw materials $18,055 $16,246
Semifinished product 12,766 16,488
Finished product 9,822 8,245
Stores and operating supplies 9,307 9,435
------- -------
Total Inventory $49,950 $50,414
======= =======
3. Contingencies
-------------
ENVIRONMENTAL. The Partnership acquired certain assets from CF&I Steel
Corporation in 1993 and established a reserve of $36.7 million for
environmental remediation. The Colorado Department of Public Health and
Environment issued a 10-year post-closure permit with two ten-year
renewals to the Partnership which became effective on October 30, 1995.
The permit contains a schedule for corrective actions to be completed
which is substantially reflective of a straight-line rate of expenditure
over 30 years. At March 31, 1997, the accrued liability was $35.1 million
related to this remediation, of which $32.9 million is classified as
non-current in the balance sheet.
GUARANTEES. Oregon Steel has outstanding $235 million principal amount of
11% First Mortgage Notes due 2003. The Partnership has guaranteed the
obligations of Oregon Steel under the Notes, and those guarantees are
secured by substantially all the property, plant and equipment and
certain other assets of the Partnership.
In addition, Oregon Steel maintains a $125 million credit agreement with
a group of banks which is collateralized, in part, by the accounts
receivable and inventory of the Partnership, and also guaranteed by the
Partnership.
4. Proceeds from Insurance Settlement
----------------------------------
Sales for the first quarter of 1997 include approximately $2.5 million of
insurance proceeds as reimbursement of lost profits resulting from lost
production during the third and fourth quarters of 1996 related to the
failure of one of the power transformers servicing the Partnership. In
total, the Partnership received $7.0 million in insurance proceeds of
which $4.5 million was recorded in the fourth quarter of 1996.
-10-
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
General
- -------
The following information contains forward-looking statements which are
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are subject to risks and
uncertainties and actual results could differ materially from those projected.
Such risks and uncertainties include, but are not limited to, competitive
products and pricing, as well as fluctuations in demand, potential equipment
malfunction, plant construction and startup difficulties, repair delays, and
general business and economic conditions.
The New CF&I, Inc. ("Company") consolidated financial statements include
the accounts of CF&I Steel, L.P. ("Partnership"), a 95.2% owned subsidiary and
the Colorado & Wyoming Railway Company, a wholly-owned short-line railroad,
serving principally the Pueblo mill. For the three months ended March 31, 1997
and 1996, sales of the Partnership were 98.7 percent and 99.0 percent,
respectively, of the consolidated sales of the Company. For the three months
ended March 31, 1997 and 1996, cost of sales of the Partnership were 98.7
percent and 99.2 percent, respectively, of the consolidated cost of sales of the
Company.
Results of Operations
- ---------------------
The following table sets forth for the Company tonnage sold, sales and average
selling price per ton:
Three Months Ended,
March 31
-------------------------
1997 1996
------ -------
Tonnage sold:
Rail 94,800 95,100
Rod/Bar/Wire 112,500 112,800
Seamless Pipe 33,200 40,700
Semifinished 7,500 7,100
------- -------
Total 248,000 255,700
======= =======
Sales (in thousands): $111,220 (1) $112,643
Average selling price per ton: $ 438 (2) $ 441
(1) Includes insurance proceeds of approximately $2.5 million as reimbursement
of lost profits resulting from lost production during the third and fourth
quarters of 1996 related to the failure of one of the power transformers
servicing the Company.
(2) Excludes insurance proceeds referred to in Note (1) above.
- ---------------
Sales decreased 1.3 percent to $111.2 million in the first quarter of 1997
compared to the corresponding 1996 period. Shipments decreased 3.0 percent to
248,000 tons in the first quarter of 1997 compared to the corresponding 1996
period. The decrease in shipments in the first quarter was primarily due to
decreased shipments of seamless pipe products resulting from lower production
volumes associated with planned maintenance downtimes at the seamless pipe mill.
Seamless pipe shipments were 33,200 tons in 1997 compared to 40,700 tons in the
corresponding 1996 period.
Selling prices decreased $3 to $438 per ton for the first quarter of 1997
compared to the corresponding 1996 period. The decrease in average selling price
was primarily due to lower average
-11-
<PAGE>
selling prices for rail, bar and wire products partially offset by increased
selling prices of seamless pipe products. Of the $1.4 million sales decrease
for the first quarter of 1997 compared to 1996, $3.2 million was the result of
volume decreases and $700,000 was the result of lower average selling price,
offset by $2.5 million from insurance proceeds.
Gross profit for the first quarter of 1997 was 8.7 percent (excluding
insurance proceeds) compared to 11.7 percent for the corresponding 1996 period.
The decrease in gross profit in 1997 compared to 1996 was due to higher rail and
seamless pipe manufacturing costs, primarily due to the fourth quarter of 1996
power transformer outage which increased semifinished inventory costs that
flowed through to cost of sales in the first quarter of 1997 and planned
maintenance downtimes at the seamless pipe mill.
Selling, general and administrative ("SG&A") for the first quarter of 1997
increased $71,000 from the corresponding 1996 period and increased as a
percentage of sales to 4.5 percent in the first quarter of 1997, from 4.4
percent for the corresponding 1996 period.
There was no profit participation expense in the first quarter of 1997
compared to $275,000 for the corresponding 1996 period. The decreased expense is
a result of decreased profits in 1997 versus 1996.
Total interest cost for the first quarter of 1997 was $7.0 million compared
to $4.6 million for the corresponding 1996 period. The higher interest cost is
primarily the result of additional debt incurred to fund the capital improvement
program, combined with increased interest rates. Capitalized interest for the
first quarter of 1997 was $60,000 compared to $625,000 for the corresponding
1996 period.
The Company's effective income tax rates were 86 percent and 42 percent for
the three month period ended March 31, 1997 and 1996, respectively. The
effective tax rate for the first quarter of 1997 varied from the combined state
and federal statutory rates due to miscellaneous adjustments to the Company's
tax accounts.
Liquidity and Capital Resources
- -------------------------------
Cash flow from operations for the three months ended March 31, 1997 was $6.5
million compared to $1.5 million in the corresponding 1996 period. The major
items affecting this $5.0 million increase were a lower increase in accounts
receivable ($9.6 million), an increase in deferred income taxes ($2.5 million),
and an increase in accounts payable ($7.8 million), offset by a lower net income
($1.8 million), and a lower decrease in inventory ($12.3 million).
Since its acquisition by Oregon Steel Mills, Inc. ("Oregon Steel") in March
1993, the Company has required substantial amounts of cash to fund its
operations and capital expenditures. Borrowing requirements for capital
expenditures and other cash needs, both short-term and long-term, are provided
through a loan from Oregon Steel. As of March 31, 1997, $208.4 million of
aggregate principal amount of the loan was outstanding, all of which was
classified as long-term. The principal is due on demand or, if no demand is
made, December 31, 2002. Interest on the principal amount of the loan is payable
monthly. Because the loan from Oregon Steel is due on demand, the applicable
interest rate is effectively subject to renegotiation at any time, and there is
no assurance the interest rate will not be materially increased in the future.
In addition, Oregon Steel is not required to provide financing to the Company
and, although demand for repayment is not expected in 1997, it may in any event
demand repayment of the loan at any time. If Oregon Steel were to demand
repayment of the loan, it is unlikely that the Company would be able to obtain
from external sources financing necessary to repay the loan or to fund its
capital expenditures and other cash needs. Failure to obtain alternative
financing would have a material adverse effect on the Company and the
Partnership. If the Company were able to obtain the necessary financing, it is
likely that such financing would be at interest rates and on terms substantially
less favorable to the Company than those provided by Oregon Steel.
-12-
<PAGE>
Term debt of $67.5 million was incurred by the Company as part of the
purchase price of the Pueblo Mill on March 3, 1993. This debt is
uncollateralized and is payable over 10 years with interest at 9.5 percent. As
of March 31, 1997, the outstanding balance on the debt was $48.5 million, of
which $41.5 million was classified as long-term debt.
Oregon Steel has outstanding $235 million principal amount of 11% First
Mortgage Notes due 2003. The Company and the Partnership have guaranteed the
obligations of Oregon Steel under the Notes, and those guarantees are secured by
a lien on substantially all of the property, plant and equipment and certain
other assets of the Company and the Partnership, excluding accounts receivable
and inventory.
In addition, Oregon Steel maintains a $125 million credit agreement with a
group of banks which is collateralized, in part, by the accounts receivable and
inventory of the Company and the Partnership, and also guaranteed by the Company
and the Partnership.
The Company expects that anticipated needs for working capital and the
capital expenditure program will be met from funds generated from operations and
available borrowings from Oregon Steel.
CAPITAL EXPENDITURES. During the first quarter of 1997, the Company
expended approximately $2.3 million, excluding capitalized interest, on
capital projects.
-13-
<PAGE>
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits
27.1 Financial Data Schedule - New CF&I, Inc.
27.2 Financial Data Schedule - CF&I Steel, L.P.
(b) Reports on Form 8-K
None
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.
NEW CF&I, INC.
Date: May 12, 1997 /s/ Christopher D. Cassard
--------------------------------------
Christopher D. Cassard
Corporate
Controller
CF&I STEEL, L.P.
By: New CF&I, Inc.
General Partner
Date: May 12, 1997 /s/ Christopher D. Cassard
---------------------------------------
Christopher D. Cassard
Corporate Controller
New CF&I, Inc.
-14-
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 4214
<SECURITIES> 0
<RECEIVABLES> 56994
<ALLOWANCES> 600
<INVENTORY> 50084
<CURRENT-ASSETS> 117059
<PP&E> 251370
<DEPRECIATION> 26059
<TOTAL-ASSETS> 393035
<CURRENT-LIABILITIES> 63370
<BONDS> 0
0
0
<COMMON> 1
<OTHER-SE> 18759
<TOTAL-LIABILITY-AND-EQUITY> 393035
<SALES> 111220
<TOTAL-REVENUES> 111220
<CGS> 98871
<TOTAL-COSTS> 98871
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7018
<INCOME-PRETAX> 468
<INCOME-TAX> 403
<INCOME-CONTINUING> 65
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 65
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 4211
<SECURITIES> 0
<RECEIVABLES> 56381
<ALLOWANCES> 600
<INVENTORY> 49950
<CURRENT-ASSETS> 111848
<PP&E> 249103
<DEPRECIATION> 25233
<TOTAL-ASSETS> 385598
<CURRENT-LIABILITIES> 65767
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 8970
<TOTAL-LIABILITY-AND-EQUITY> 385598
<SALES> 109753
<TOTAL-REVENUES> 109753
<CGS> 97651
<TOTAL-COSTS> 97651
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7441
<INCOME-PRETAX> (283)
<INCOME-TAX> 0
<INCOME-CONTINUING> (283)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (283)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
