<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the fiscal year end December 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from _________ to _________
Commission file number 0-21692
---------------------------
THE ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
---------------------------
ZARING NATIONAL CORPORATION
11300 Cornell Park Drive, Suite 500
Cincinnati, Ohio 45242-1825
<PAGE> 2
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1071348
1996 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
FINANCIAL STATEMENTS
AS OF
DECEMBER 31, 1996 AND 1995
TOGETHER WITH
AUDITORS' REPORT
<PAGE> 3
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1071348
1996 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
INDEX
PAGE(S)
-------
Report of Independent Public Accountants 1-2
Statements of Net Assets Available for Plan Benefits
with Fund Information 3-4
Statements of Changes in Net Assets Available for Plan Benefits
with Fund Information 5-6
Notes to Financial Statements 7-11
Schedule of Assets Held for Investment Purposes 12
Schedule of Reportable Transactions 13
<PAGE> 4
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1071348
1996 Form 5500
Report of Independent Public Accountants
----------------------------------------
To the Board of Directors of
Zaring National Corporation:
We have audited the accompanying statements of net assets available for
plan benefits, with fund information of the ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN (formerly ZARING HOMES, INC. RETIREMENT BENEFIT PLAN) as
of December 31, 1996 and 1995 and the related statements of changes in net
assets available for plan benefits, with fund information, for the years then
ended. These financial statements and the schedules, as listed in the
accompanying index, are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements and
schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for plan benefits,
with fund information of the Zaring National Corporation Retirement Benefit Plan
as of December 31, 1996 and 1995, and the changes in its net assets available
for plan benefits, with fund information, for the years then ended in conformity
with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes and reportable transactions are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements, but are supplementary information required by the
Department of Labor's Rules and
-1-
<PAGE> 5
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1071348
1996 Form 5500
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The fund information in the statements of net assets
available for plan benefits and the statements of changes in net assets
available for plan benefits is presented for purposes of additional analysis
rather than to present the net assets available for plan benefits and changes in
net assets available for plan benefits of each fund. The supplemental schedules
and fund information have been subjected to the auditing procedures applied in
the audits of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
/s/ Arthur Andersen LLP
Cincinnati, Ohio,
June 18, 1997
-2-
<PAGE> 6
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
PLAN 002
EIN: 31-1071348
1996 FORM 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 31, 1996
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED 401(k)
--------------------------------------------------------------------------------------------
COMPASS
COMPASS COMPASS COMPASS COMPASS COMPASS SMALL CAP
MONEY MANAGED VALUE GROWTH INTERNATIONAL GROWTH INVESCO
MARKET INCOME EQUITY EQUITY EQUITY EQUITY SELECT
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO INCOME FUND
--------- --------- --------- --------- --------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
- ------
Cash and cash
equivalents $ 453,243 $ -- $ -- $ -- $ -- $ -- $ --
Investments, at market
value (Note 2)-
Mutual funds -- 43,675 248,631 177,765 93,480 48,468 2,016
Common stock -- -- -- -- -- -- --
Employer contribution
receivable -- -- -- -- -- -- --
Employee contribution
receivable 15,894 -- -- -- -- -- --
---------- -------- ---------- ---------- ---------- --------- --------
Net assets
available for
plan benefits $ 469,137 $ 43,675 $ 248,631 $ 177,765 $ 93,480 $ 48,468 $ 2,016
========== ======== ========== ========== ========== ========= ========
<CAPTION>
PARTICIPANT DIRECTED 401(k) NON-PARTICIPANT DIRECTED
-------------------------------------------- -------------------------
ZARING
NATIONAL
CORPORATION
ZARING STOCK ZARING
JANUS FIDELITY NATIONAL LIQUIDITY NATIONAL
GROWTH & EQUITY CORPORATION FUND CORPORATION
INCOME FUND GROWTH FUND STOCK (TEMPORARY) STOCK TOTAL
----------- ----------- ----------- ----------- ----------- -----
<S> <C> <C> <C> <C> <C> <C>
ASSETS
- ------
Cash and cash
equivalents $ -- $ -- $ -- $ 1,960 $ -- $ 455,203
Investments, at market
value (Note 2)-
Mutual funds 30,999 55,175 -- -- -- 700,209
Common stock -- -- 237,694 -- 64,222 301,916
Employer contribution
receivable -- -- -- 14,325 -- 14,325
Employee contribution
receivable -- -- -- -- -- 15,894
------------ ------------ ------------ ------------ -------- ----------
Net assets
available for
plan benefits $ 30,999 $ 55,175 $ 237,694 $ 16,285 $ 64,222 $1,487,547
============ ============ ============ ============ ======== ==========
</TABLE>
The accompanying notes to financial statements
are an integral part of this statement.
-3-
<PAGE> 7
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
PLAN 002
EIN: 31-1071348
1996 FORM 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
NON-
PARTICIPANT
PARTICIPANT DIRECTED 401(k) DIRECTED
--------------------------------------------------------------------------- ------------
COMPASS COMPASS COMPASS COMPASS COMPASS ZARING ZARING
MONEY MANAGED VALUE GROWTH INTERNATIONAL NATIONAL NATIONAL
MARKET INCOME EQUITY EQUITY EQUITY CORPORATION CORPORATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO STOCK STOCK TOTAL
-------- --------- --------- ---------- ------------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
- ------
Cash and cash equivalents $438,064 $ -- $ -- $ -- $ -- $ -- $ -- $ 438,064
Investments, at market
value (Note 2)-
Mutual funds -- 61,162 163,182 139,188 73,765 -- -- 437,297
Common stock -- -- -- -- -- 126,375 17,059 143,434
Employer contribution
receivable -- -- -- -- -- -- 9,330 9,330
Employee contribution
receivable 12,828 -- -- -- -- -- -- 12,828
-------- ------- -------- -------- ------- -------- ------- ----------
Net assets available for
plan benefits $450,892 $61,162 $163,182 $139,188 $73,765 $126,375 $26,389 $1,040,953
======== ======= ======== ======== ======= ======== ======= ==========
</TABLE>
The accompanying notes to financial statements
are an integral part of this statement.
-4-
<PAGE> 8
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
PLAN 002
EIN: 31-1071348
1996 FORM 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED 401(k)
-----------------------------------------------------------------------------------------------
COMPASS
COMPASS COMPASS COMPASS COMPASS COMPASS SMALL CAP INVESCO JANUS
MONEY MANAGED VALUE GROWTH INTERNATIONAL GROWTH SELECT GROWTH &
MARKET INCOME EQUITY EQUITY EQUITY EQUITY INCOME INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND FUND
--------- --------- --------- --------- ------------- ---------- ------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Employer contributions $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
Employee contributions 103,012 16,063 49,977 44,168 24,599 12,882 2,529 10,328
Realized and
unrealized net
gains (losses)
(Notes 2 and 6) 23,350 1,024 44,026 29,741 6,969 2,208 186 (2,055)
DEDUCTIONS:
Distributions to
participants (Note 1) (34,030) (12,860) (4,751) (22,202) (11,616) -- -- --
TRANSFERS (74,087) (21,714) (3,803) (13,130) (237) 33,378 (699) 22,726
-------- -------- -------- -------- ------- ------ ------ -------
Increase (decrease)
in net assets
available for plan
benefits 18,245 (17,487) 85,449 38,577 19,715 48,468 2,016 30,999
-------- -------- -------- -------- ------- ------ ------ -------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
beginning of year 450,892 61,162 163,182 139,188 73,765 -- -- --
-------- -------- -------- -------- ------- ------ ------ -------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
end of year $469,137 $ 43,675 $248,631 $177,765 $93,480 $48,468 $2,016 $30,999
======== ======== ======== ======== ======= ====== ====== =======
<CAPTION>
PARTICIPANT DIRECTED 401(k) NON-PARTICIPANT DIRECTED
--------------------------- -------------------------
ZARING
NATIONAL
CORPORATION
FIDELITY ZARING STOCK ZARING
EQUITY NATIONAL LIQUIDITY NATIONAL
GROWTH CORPORATION FUND CORPORATION
FUND STOCK (TEMPORARY) STOCK TOTAL
-------- ----------- ------------ ------------ ----------
<S> <C> <C> <C> <C> <C>
ADDITIONS:
Employer contributions $ -- $ -- $52,872 $ -- $ 52,872
Employee contributions 21,338 -- 77,437 -- 362,333
Realized and
unrealized net
gains (losses)
(Notes 2 and 6) 3,634 21,628 255 801 131,767
DEDUCTIONS:
Distributions to
participants (Note 1) -- (13,404) -- (1,515) (100,378)
TRANSFERS 30,203 103,095 (114,279) 38,547 --
------- -------- ------- ------- ----------
Increase (decrease)
in net assets
available for plan
benefits 55,175 111,319 16,285 37,833 446,594
------- -------- ------- ------- ----------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
beginning of year -- 126,375 -- 26,389 1,040,953
------- -------- ------- ------- ----------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS,
end of year $55,175 $237,694 $16,285 $64,222 $1,487,547
======= ======== ======= ======= ==========
</TABLE>
The accompanying notes to financial statements
are an integral part of this statement.
-5-
<PAGE> 9
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
PLAN 002
EIN: 31-1071348
1996 FORM 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR
PLAN BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED 401(k)
------------------------------------------------------------------------------------------
COMPASS COMPASS COMPASS COMPASS COMPASS ZARING
MONEY MARKET MANAGED VALUE EQUITY GROWTH INTERNATIONAL NATIONAL
PORTFOLIO INCOME PORTFOLIO EQUITY EQUITY CORPORATION
PORTFOLIO PORTFOLIO PORTFOLIO STOCK
------------- ----------- ------------ ------------ ------------- ----------
ADDITIONS:
<S> <C> <C> <C> <C> <C> <C>
Employer contribution $ -- $ -- $ -- $ -- $ -- $ --
Employee contributions 149,649 18,154 36,611 28,948 24,718 38,732
Realized and unrealized net gains
(losses) (Notes 2 and 6) 26,391 7,357 29,302 23,217 7,629 32,798
Interest income -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
176,040 25,511 65,913 52,165 32,347 71,530
DEDUCTIONS:
Distributions to participants (Note 1) (210,665) (4,879) (16,094) (25,792) (13,152) (8,609)
TRANSFERS 3,905 22,210 80,571 72,245 26,555 40,710
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net
assets available for plan benefits (30,720) 42,842 130,390 98,618 45,750 103,631
NET ASSETS AVAILABLE FOR
PLAN BENEFITS, beginning of year 481,612 18,320 32,792 40,570 28,015 22,744
----------- ----------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS, end of year $ 450,892 $ 61,162 $ 163,182 $ 139,188 $ 73,765 $ 126,375
=========== =========== =========== =========== =========== ===========
<CAPTION>
NON-PARTICIPANT DIRECTED
----------------------------
ZARING
NATIONAL
CORPORATION PROFIT
STOCK SHARING TOTAL
------------ -------- ---------
ADDITIONS:
<S> <C> <C> <C>
Employer contribution $ 31,507 $ -- $ 31,507
Employee contributions -- -- 296,812
Realized and unrealized net gains
(losses) (Notes 2 and 6) 2,465 -- 129,159
Interest income -- 30,437 30,437
----------- ----------- -----------
33,972 30,437 487,915
DEDUCTIONS:
Distributions to participants (Note (7,583) (2,859,856) (3,146,630)
TRANSFERS -- (246,196) --
----------- ----------- -----------
Increase (decrease) in net
assets available for plan benef 26,389 (3,075,615) (2,658,715)
NET ASSETS AVAILABLE FOR
PLAN BENEFITS, beginning of year -- 3,075,615 3,699,668
----------- ----------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS, end of year $ 26,389 $ -- $ 1,040,953
=========== =========== ===========
</TABLE>
The accompanying notes to financial statements
are an integral part of this statement.
-6-
<PAGE> 10
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1071348
1996 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
(1) Plan Description-
-----------------
The following description of the Zaring National Corporation Retirement
Benefit Plan (the Plan) (formerly Zaring Homes, Inc. Retirement Benefit
Plan) provides only general information. Participants should refer to the
Plan document for a complete description of the Plan's provisions.
(a) GENERAL--The Plan is a defined contribution plan established
January 1, 1979, by Zaring National Corporation (the Company) and
most recently amended and restated as of November 1, 1994. The
amendment allows participants who have not terminated employment
to request a distribution of their voluntary contributions.
Distributions to participants in 1996 include distributions to
both terminated and current employees.
The Plan is open to all employees who meet the stipulated age and
service requirements except key employees. It is subject to the
provisions of the Employee Retirement Income Security Act of 1974
(ERISA).
(b) CONTRIBUTIONS--Participants may make voluntary contributions to
the Plan on a before-tax basis (401(k) or voluntary contributions)
subject to stipulated maximums. The Company may make profit
sharing and/or matching contributions at the discretion of the
Company's Board of Directors.
(c) PARTICIPANT ACCOUNTS--Each participant's account is credited with
the participant's voluntary contribution and an allocation of the
Company's discretionary contributions and Plan earnings.
Allocations are based on participant earnings or account balances,
as defined.
(d) VESTING--Once eligible for the Plan, participants are immediately
vested in their account balances.
-7-
<PAGE> 11
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1071348
1996 Form 5500
(e) INVESTMENT OPTIONS--Participants may direct their voluntary
contributions to be invested into a number of segregated funds. At
December 31, 1996, the participant investment options and the
nature of the underlying assets of these investment options are
summarized as follows:
<TABLE>
<CAPTION>
INVESTMENT OPTION UNDERLYING ASSETS
------------------------------------- ------------------------------------------
<S> <C>
Compass Money Market Portfolio Short-term, quality, U.S. dollar-
denominated instruments
Compass Managed Income High and medium-grade fixed-income
Portfolio securities (i.e., corporate Bonds, U.S.
government issues, preferred stocks, etc.)
Compass Value Equity Portfolio Common stocks and securities convertible
into common stocks
Compass Growth Equity Portfolio U.S. equity securities
Compass International Equity Portfolio Equity securities of issuers in Europe, Australia and
the Far East
Compass Small Cap Growth Equity Portfolio Common stocks of small-cap companies
Invesco Select Income Fund Investment-grade corporate bonds
Janus Growth & Income Fund Primarily domestic equity securities
Fidelity Equity Growth Fund Common stocks of small and large companies
Company Stock Zaring National Corporation common stock
</TABLE>
Certain plan investments are mutual funds sponsored (or managed)
by PNC Bank, N.A., the trustee of the Plan.
(f) PAYMENT OF BENEFITS--Participants become eligible for benefit
payments upon retirement, termination, disability, or death.
Participants receive a joint and survivor annuity or they may
elect a lump sum payment, a life annuity, or equal installments
over their assumed life expectancy.
(g) EXPENSES OF THE PLAN--The Company pays all of the administrative
expenses of the Plan.
-8-
<PAGE> 12
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1071348
1996 Form 5500
(h) PARTICIPANT LOANS--The Plan does not provide for borrowings by
participants.
(i) USE OF ESTIMATES--The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of net assets available for plan benefits as of
the date of the financial statements and the reported amounts of
changes in net assets available for plan benefits during the
reporting period. Actual results could differ from those
estimates.
(2) Summary of Significant Accounting Policies-
-------------------------------------------
(a) BASIS OF ACCOUNTING--The accompanying financial statements are
prepared on the accrual basis of accounting.
(b) INVESTMENT VALUATION--Investments are stated at market value as of
the last business day of the Plan year. Realized gains and losses
on the sale of investments and the unrealized appreciation
(depreciation) of investments are reported currently in the
statement of changes in net assets available for plan benefits.
The computation of unrealized appreciation (depreciation) in Plan
investments is based on the market values of the Plan investments
at yearend compared to their market values as of the beginning of
the Plan year, or at acquisition cost, if purchased during the
year.
(c) RECLASSIFICATIONS--Certain reclassifications have been made to
the prior year's financial statements to conform with the 1996
presentation.
(3) Tax Status-
----------
The Trust established under the Plan is qualified under the Internal
Revenue Code (IRC) as exempt from federal income taxes. Although the Plan
has received a favorable determination letter from the Internal Revenue
Service (IRS) dated February 15, 1995, it has not been updated for the
latest plan amendment. However, the plan administrator believes that the
Plan was designed and is being operated in compliance with the applicable
requirements of the IRC. Therefore, they believe that the Plan was
qualified and the related trust was tax-exempt for the periods ended
December 31, 1996 and 1995.
-9-
<PAGE> 13
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1071348
1996 Form 5500
(4) Priorities Upon Termination of the Plan-
----------------------------------------
The Company has the right under the Plan to discontinue its
contributions at any time and to terminate the Plan subject to the
provisions set forth in ERISA.
(5) Reconciliation to Form 5500-
----------------------------
As of December 31, 1996, the Plan had no pending distributions to
participants. At December 31, 1995, the Plan had $5,587 of pending
distributions to participants who elected to withdraw from the Plan.
These amounts are recorded as a liability in the Plan's Form 5500;
however, these amounts are not recorded as a liability in the
accompanying statements of net assets available for benefits in
accordance with generally accepted accounting principals.
The following table reconciles net assets available for benefits per the
financial statements to the Form 5500, as filed by the Company, for the
years ended December 31, 1996 and 1995.
<TABLE>
<CAPTION>
NET ASSETS AVAILABLE
FOR PLAN BENEFITS
DECEMBER 31,
BENEFITS PAYABLE TO BENEFITS -----------------------
PARTICIPANTS PAID 1996 1995
--------------------- ------------ ---------- ----------
<S> <C> <C> <C> <C>
Per financial statements $ - $ 100,378 $1,487,547 $1,040,953
Accrued benefit payments - - - (5,587)
Reversal of prior year accrual for - ( 5,587) - -
benefit payments ------------------------- ----------- ---------- ---------
Per Form 5500 $ - $ 94,791 $1,487,547 $1,035,366
========================= =========== ========== ==========
</TABLE>
(6) Additional Information-
-----------------------
During 1996 and 1995, the Plan's investments (including investments,
bought, sold and held during the year) appreciated in value as follows:
<TABLE>
<CAPTION>
1996 1995
------------ ---------
<S> <C> <C>
Mutual funds $109,338 $ 93,896
Common stock 22,429 35,263
-------- --------
$131,767 $129,159
======== ========
</TABLE>
-10-
<PAGE> 14
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1071348
1996 Form 5500
The following investments have market values in excess of five percent of net
assets available for plan benefits as of yearend:
<TABLE>
<CAPTION>
DECEMBER 31,
------------
1996 1995
---------- --------
<S> <C> <C>
Compass Money Market Portfolio $453,243 $438,064
Compass Managed Income Portfolio 43,675 61,162
Compass Value Equity Portfolio 248,631 163,182
Compass Growth Equity Portfolio 177,765 139,188
Compass International Equity Portfolio 93,480 73,765
Zaring National Corporation common stock 301,916 143,434
</TABLE>
-11-
<PAGE> 15
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1071348
1996 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
ITEM 27(a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1996
<TABLE>
<CAPTION>
DESCRIPTION OF INVESTMENT INCLUDING
MATURITY DATE,
IDENTITY OF ISSUER, BORROWER, LESSOR RATE OF INTEREST, COLLATERAL, CURRENT
OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
------------------------------------ --------------------- ---- -----
<S> <C> <C> <C>
CASH AND CASH EQUIVALENTS:
* PNC Bank, N.A. Money Market Portfolio,
392,513 shares $415,556 $453,243
* PNC Bank, N.A. Cash 1,960 1,960
-------- --------
$417,516 $455,203
======== ========
MUTUAL FUNDS:
* PNC Bank, N.A. Managed Income Portfolio,
4,257 shares $ 43,035 $ 43,675
* PNC Bank, N.A. Value Equity Portfolio,
17,546 shares 233,805 248,631
* PNC Bank, N.A. Growth Equity Portfolio,
12,036 shares 152,260 177,765
* PNC Bank, N.A. International Equity Portfolio,
7,109 shares 90,862 93,480
* PNC Bank, N.A. Small Cap Growth Equity Portfolio, 2,470
shares 48,334 48,468
Invesco Select Income Fund, 308 shares 2,003 2,016
Janus Growth and Income Fund, 1,627 shares 33,069 30,999
Fidelity Advisor Equity Growth Fund, 1,313 shares 53,330 55,175
------ ------
$656,698 $700,209
======== ========
COMMON STOCKS:
* Zaring National Corporation Common stock, 26,837 shares $258,985 $301,916
======== ========
</TABLE>
* Represents a party-in-interest transaction.
-12-
<PAGE> 16
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1071348
1996 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
ITEM 27(d) - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
CURRENT VALUE OF
PURCHASE SELLING COST OF ASSET ON TRANSACTION
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE ASSET DATE (A)
-------------------------- -------------------- ----- ----- ----- ---------
<S> <C> <C> <C> <C> <C>
*PNC Bank, N.A Money Market Portfolio $101,792 $ -- $101,792 $ --
*PNC Bank, N.A Money Market Portfolio -- 113,283 106,184 --
*PNC Bank, N.A Value Equity Portfolio 109,823 -- 109,823 --
*PNC Bank, N.A Value Equity Portfolio -- 16,885 15,289 --
*PNC Bank, N.A Growth Equity Portfolio 76,919 -- 76,919 --
*PNC Bank, N.A Growth Equity Portfolio -- 44,933 35,359 --
Fidelity Advisors Equity Growth Fund 53,069 -- 53,069 --
Fidelity Advisors Equity Growth Fund -- 645 599 --
*PNC Bank, N.A Zaring Stock Fund 200,508 -- 200,508 --
*PNC Bank, N.A Zaring Stock Fund -- 62,835 60,604 --
*PNC Bank, N.A Zaring Stock Liquidity Fund 143,279 -- 143,279 --
*PNC Bank, N.A Zaring Stock Liquidity Fund -- 142,605 142,605 --
<CAPTION>
NET
IDENTITY OF PARTY INVOLVED GAIN (LOSS)
-------------------------- -----------
<S> <C>
*PNC Bank, N.A $ --
*PNC Bank, N.A 7,099
*PNC Bank, N.A --
*PNC Bank, N.A 1,596
*PNC Bank, N.A --
*PNC Bank, N.A 9,574
Fidelity Advisors --
Fidelity Advisors 46
*PNC Bank, N.A --
*PNC Bank, N.A 2,231
*PNC Bank, N.A --
*PNC Bank, N.A --
</TABLE>
(A) The current value of all assets acquired or disposed of, at the time of
acquisition or disposition, is equal to the purchase price or selling price,
respectively.
* Represents a party-in-interest transaction.
-13-
<PAGE> 17
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
THE ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
By: /s/ John R. Brooks
---------------------------------
John R. Brooks, Chairman
Human Resources and Compensation
Committee
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
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As independent public accountants, we hereby consent to the incorporation of
our report incorporated by reference in this Form 11-K, into the Company's
previously filed Registration Statement File No. 33-85588.
/s/ Arthur Andersen LLP
Cincinnati, Ohio
June 30, 1997
