<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 SECURITIES EXCHANGE ACT OF
1934 [NO FEE REQUIRED]
For the fiscal year ended December 31, 1997
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 333-22679
-----------------------------------
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
-----------------------------------
ZARING NATIONAL CORPORATION
11300 Cornell Park Drive, Suite 500
Cincinnati, Ohio 45242-1825
<PAGE> 2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employees benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned hereunto
duly authorized.
Date: June 30, 1998 ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
By /s/ Ronald G. Gratz
-----------------------
Ronald G. Gratz,
Chief Financial Officer
ZARING NATIONAL CORPORATION
<PAGE> 3
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
FINANCIAL STATEMENTS
AS OF
DECEMBER 31, 1997 AND 1996
TOGETHER WITH
AUDITORS' REPORT
<PAGE> 4
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 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> 5
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 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, 1997 and 1996 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, 1997 and 1996, 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> 6
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 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.
Cincinnati, Ohio,
June 17, 1998
2
<PAGE> 7
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 31, 1997
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED 401(K)
- ---------------------------------------------------------------------------------------------------
BLACK ROCK
BLACK ROCK BLACK ROCK BLACK ROCK BLACK ROCK SMALL CAP
MONEY CORE VALUE GROWTH GROWTH JANUS
MARKET BOND EQUITY EQUITY EQUITY WORLDWIDE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND
--------- --------- --------- --------- --------- ----
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash and cash
equivalents $ $ $ $ $ $
- - - - - -
Investments, at
market value (Note
2)-
Mutual funds 457,587 52,401 384,629 268,200 103,714 121,990
Common stock - - - - - -
Employer contribution
receivable - - - - - -
Employee contribution
receivable 21,954 - - - - -
-------- ------- -------- -------- -------- --------
Net assets
available
for plan
benefits $479,541 $52,401 $384,629 $268,200 $103,714 $121,990
======== ======= ======== ======== ======== ========
</TABLE>
<TABLE>
<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>
$ $ $ $8,696 $ $ 8,696
- - - -
117,966 100,595 - - - 1,607,082
- - 214,853 - 94,166 309,019
- - - 13,289 - 13,289
- - - - - 21,954
-------- -------- -------- ------- ------- ----------
$117,966 $100,595 $214,853 $21,985 $94,166 $1,960,040
======== ======== ======== ======= ======= ==========
</TABLE>
The accompanying notes to financial statements
are an integral part of this statement.
3
<PAGE> 8
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 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 INVESCO
MONEY MANAGED VALUE GROWTH INTERNATIONAL GROWTH SELECT JAUUS
MARKET INCOME EQUITY EQUITY EQUITY EQUITY INCOME GROWTH &
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND INCOME FUND
--------- --------- --------- --------- --------- --------- ---- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Cash and cash
equivalents $ - $ - $ - $ - $ - $ - $ - $ -
Investments, at
market value (Note
2)- Mutual funds 453,243 43,675 248,631 177,765 93,480 48,468 2,016 30,999
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 $30,999
======== ======= ======== ======== ======= ======= ====== =======
</TABLE>
<TABLE>
<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>
ASSETS
Cash and cash
equivalents $ $ $ 1,960 $ - $ 1,960
Investments, at
market value (Note
2)- Mutual funds 55,175 - - - 1,153,452
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 $ 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.
4
<PAGE> 9
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 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, 1997
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED 401(K)
-----------------------------------------------------------------------------------------------------------
BLACK BLACK BLACK BLACK BLACK BLACK ROCK
ROCK ROCK ROCK ROCK ROCK BLACK ROCK SMALL CAP INVESCO
MONEY CORE MANAGED VALUE GROWTH INTERNATIONAL GROWTH SELECT
MARKET BOND INCOME EQUITY EQUITY EQUITY EQUITY INCOME JANUS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND WORLDWIDE
--------- ---------- --------- --------- --------- ------------- ----------- ------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Employer
contributions $ 2,687 $ 981 $ - $ 8,076 $ 6,074 $ - $ 6,577 $ - $ 2,583
Employee
contributions 76,447 7,036 2,165 57,622 44,085 5,808 44,262 179 16,481
Realized and
unrealized
net gains
(losses) 24,933 2,532 1,606 77,749 55,241 7,148 8,773 54 4,210
(Notes 2 and 6)
DEDUCTIONS:
Distributions to
participants
(Note 1) (50,145) (4,098) (920) (12,150) (16,046) (5,181) (8,087) (851) (12,074)
TRANSFERS (43,518) 45,950 (46,526) 4,701 1,081 (101,255) 3,721 (1,398) 110,790
-------- ------- ------- -------- -------- ------- -------- -------- --------
Increase
(decrease) in
net assets
available for
plan benefits 10,404 52,401 (43,675) 135,998 90,435 (93,480) 55,246 (2,016) 121,990
NET ASSETS
AVAILABLE FOR
PLAN BENEFITS,
beginning of
year 469,137 - 43,675 248,631 177,765 93,480 48,468 2,016 -
-------- ------- ------- -------- -------- ------- -------- -------- --------
NET ASSETS
AVAILABLE FOR
PLAN BENEFITS,
end of year $479,541 $52,401 $ - $384,629 $268,200 $ - $103,714 $ - $121,990
======== ======= ======= ======== ======== ======= ======== ======== ========
PARTICIPANT DIRECTED 401(K) NON-PARTICIPANT DIRECTED
--------------------------------------------------------------------
ZARING
NATIONAL
CORPORATION
JANUS FIDELITY ZARING STOCK ZARING
GROWTH & EQUITY NATIONAL LIQUIDITY NATIONAL
INCOME GROWTH CORPORATION FUND CORPORATION
FUND FUND STOCK (TEMPORARY) STOCK TOTAL
---------- -------- ----------- ----------- ----------- -----
ADDITIONS:
Employer
contributions $ 4,901 $ 2,371 $ $ 28,908 $ $ 63,158
- -
Employee
contributions 43,329 27,230 2,842 82,559 - 410,045
Realized and
unrealized
net gains
(losses) 21,603 15,693 (71,770) 241 148,013
(Notes 2 and
6)
DEDUCTIONS:
Distributions to
participants
(Note 1) (3,512) (10,282) (25,141) (236) - (148,723)
TRANSFERS 20,646 10,408 71,228 (105,772) 29,944 -
-------- -------- -------- --------- ------- ----------
Increase
(decrease) in
net assets
available for
plan benefits 86,967 45,420 (22,841) 5,700 29,944 472,493
NET ASSETS
AVAILABLE FOR
PLAN BENEFITS,
beginning of
year 30,999 55,175 237,694 16,285 64,222 1,487,547
-------- -------- -------- --------- ------- ----------
NET ASSETS
AVAILABLE FOR
PLAN BENEFITS,
end of year
$117,966 $100,595 $214,853 $ 21,985 $94,166 $1,960,040
======== ======== ======== ========= ======= ==========
</TABLE>
The accompanying notes to financial statements
are an integral part of this statement.
5
<PAGE> 10
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 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
MONEY MANAGED VALUE GROWTH INTERNATIONAL GROWTH SELECT
MARKET INCOME EQUITY EQUITY EQUITY EQUITY INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND
--------- --------- --------- --------- ------------- --------- ------
<S> <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
Realized and
unrealized net
gains (losses) 23,350 1,024 44,026 29,741 6,969 2,208 186
(Notes 2 and 6)
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)
-------- ------- -------- -------- -------- ------- ------
Increase (decrease)
in net assets
available for plan
benefits 18,245 (17,487) 85,449 38,577 19,715 48,468 2,016
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
======== ======= ======== ======== ======== ======= =======
</TABLE>
<TABLE>
<CAPTION>
ZARING
NATIONAL
CORPORATION
JANUS FIDELITY ZARING STOCK ZARING
GROWTH & EQUITY NATIONAL LIQUIDITY NATIONAL
INCOME GROWTH CORPORATION FUND CORPORATION
FUND FUND STOCK (TEMPORARY) STOCK TOTAL
-------- ------- ----------- ---------- ----------- -----
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Employer contributions $ $ $ $ 52,872 $ $ 52,872
- - - -
Employee contributions 10,328 21,338 - 77,437 - 362,333
Realized and
unrealized net
gains (losses) (2,055) 3,634 21,628 255 801 131,767
(Notes 2 and 6)
DEDUCTIONS:
Distributions to
participants (Note 1) - - (13,404) - (1,515) (100,378)
TRANSFERS 22,726 30,203 103,095 (114,279) 38,547 -
-------- -------- --------- --------- --------- -----------
Increase (decrease)
in net assets
available for plan 30,999 55,175 111,319 16,285 37,833 446,594
benefits
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 $ 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.
6
<PAGE> 11
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
(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 as of May 8, 1997. This amendment changed
the plan name to the Zaring National Corporation Retirement
Benefit Plan.
The Plan is available to all employees who meet the stipulated age
and service requirements except for certain key employees. The
Plan 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. Unallocated employee contribution
receivable of $21,954 and $15,894 at December 31, 1997 and 1996,
is included in the money market portfolio.
(c) Participant Accounts--Each participant's account is credited with
the participant's voluntary contributions, matching contributions
and an allocation of the Company's discretionary contributions and
Plan earnings. Allocations are based on participant earnings or
account balances, as defined. The benefit to which a participant
is entitled is the benefit that can be provided from the
participant's account. Participants who have not terminated
employment may request a distribution of their voluntary
contributions.
(d) Vesting--Once eligible for the Plan, participants are immediately
vested in their account balances.
7
<PAGE> 12
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 Form 5500
(e) Investment Options--Participants may direct their voluntary
contributions to be invested into a number of segregated funds. At
December 31, 1997, 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>
Black Rock Money Market Short-term, quality, U.S. dollar-
Portfolio(formerly Compass denominated instruments
Money Market)
Black Rock Core Bond Portfolio Investment grade fixed
(formerly Compass Core Bond) income securities in the 5 to 10 year
maturity range
Black Rock Value Equity Common stocks with price to earnings
Portfolio (formerly Compass ratios below average.
Value Equity)
Black Rock Growth Equity U.S. equity securities
Portfolio (formerly Compass
Growth Equity)
Black Rock Small Cap Growth Common stocks of small-cap companies
Equity Portfolio (formerly
Compass Small Cap Growth
Equity)
Janus Worldwide Fund Common stocks of foreign and domestic
companies.
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>
(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 the administrative expenses
of the Plan and provides administrative services at no cost to the
Plan. If not paid
8
<PAGE> 13
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 Form 5500
by the Company, administrative expenses become a liability of the
Plan. The total return earned on investments is net of the
investment-related fees.
(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--The Plan's investments are stated at fair
value based on quoted market prices as of the last day of the Plan
year. Net realized and unrealized appreciation (depreciation) is
reflected currently in the statements 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 year end 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 1997
presentation.
(3) Tax Status-
The Internal Revenue Service has determined and informed the Company by
letter dated February 15, 1995 that the Plan and related trust are
designed in accordance with applicable sections of the Internal Revenue
Code (IRC). The Plan has been amended since receiving the determination
letter; however, the Plan administrator and the Plan's tax counsel
believe that the Plan is designed and is currently being operated in
compliance with the applicable requirements of the IRC.
9
<PAGE> 14
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 Form 5500
(4) Priorities Upon Plan Termination-
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA.
(5) Additional Information-
During 1997 and 1996, the Plan's investments (including investments,
bought, sold and held during the year) appreciated (depreciated) in value
as follows:
<TABLE>
<CAPTION>
1997 1996
-------- --------
<S> <C> <C>
Mutual funds $219,542 $109,338
Common stock (71,529) 22,429
-------- --------
$148,013 $131,767
======== ========
</TABLE>
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,
-------------------------
1997 1996
-------- --------
<S> <C> <C>
Black Rock Money Market Portfolio $457,587 $453,243
Black Rock Managed Income Portfolio - 43,675
Black Rock Value Equity Portfolio 384,629 248,631
Black Rock Growth Equity Portfolio 268,200 177,765
Black Rock International Equity Portfolio - 93,480
Black Rock Small Cap Growth 103,714 48,468
Fidelity Advisor Equity Growth 100,595 55,175
Janus Growth & Income 117,966 30,999
Janus Worldwide Fund 121,990 -
Zaring National Corporation common stock 309,019 301,916
</TABLE>
(6) Related Party Transactions-
Certain Plan investments are managed by the Company and PNC. PNC is the
trustee, as defined by the Plan and, therefore, these transactions
qualify as party-in-interest.
(7) Reconciliation to Form 5500-
10
<PAGE> 15
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 Form 5500
As of December 31, 1997, the Plan had approximately $19,400 of pending
distributions to participants who elected to withdraw from the Plan.
These amounts are recorded as liabilities in the Plan's Form 5500;
however, these amounts are not recorded as liabilities in the
accompanying statements of net assets available for plan benefits in
accordance with generally accepted accounting principles.
The following table reconciles net assets available for plan benefits
per the financial statements to the Form 5500 as filed by the Company
for the year ended December 31, 1997:
<TABLE>
<CAPTION> NET ASSETS AVAILABLE FOR
BENEFITS PLAN BENEFITS, DECEMBER 31,
PAYABLE TO ---------------------------
PARTICIPANTS BENEFITS PAID 1997 1996
------------ ------------- ---- ----
<S> <C> <C> <C> <C>
Per financial statements $ - $148,723 $1,960,040 $1,487,547
Amounts pending distribution to
participants 19,400 19,400 (19,400) -
Reversal of prior year amounts
pending distribution to
participants - - - -
------- -------- ---------- ----------
Per Form 5500 $19,400 $168,123 $1,940,640 $1,487,547
======= ======== ========== ==========
</TABLE>
11
<PAGE> 16
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
ITEM 27(A) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1997
<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>
MUTUAL FUNDS:
*Black Rock Funds Money Market Portfolio,
375,601 shares $403,548 $457,587
*Black Rock Funds Value Equity Portfolio,
24,687 shares 345,286 384,629
*Black Rock Funds Growth Equity Portfolio,
16,525 shares 228,019 268,200
*Black Rock Funds Core Bond Portfolio,
5,342 shares 51,761 52,401
*Black Rock Funds Small Cap Growth Equity
Portfolio, 5,119 shares 100,204 103,714
Janus Worldwide Funds Growth and Income Fund, 5,096
shares 113,030 117,966
Janus Worldwide Funds World Wide Fund, 3,162 shares 127,256 121,990
Fidelity Investments Equity Growth Fund, 2,121 shares 94,329 100,595
COMMON STOCKS:
* Zaring National Corporation Common stock, 34,336 shares 331,784 309,019
* Represents a party-in-interest transaction.
</TABLE>
The accompanying notes to financial statements
are an integral part of this schedule.
12
<PAGE> 17
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1997 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
ITEM 27(D) - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
CURRENT VALUE
OF ASSET ON
PURCHASE SELLING COST OF TRANSACTION NET
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE ASSET DATE (A) GAIN (LOSS)
- -------------------------- -------------------- ----- ----- ----- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
*Black Rock Funds Money Market Portfolio $ 82,983 $ $ 82,983 $ - $ -
*Black Rock Funds Money Market Portfolio - 103,713 95,137 - 8,576
*Black Rock Funds Value Equity Portfolio 124,605 - 124,605 - -
*Black Rock Funds Growth Equity Portfolio 90,381 - 90,381 - -
*Black Rock Funds International Equity Portfolio - 107,173 97,407 - 9,766
*Zaring National Corporation Zaring Stock Fund 116,447 - 116,447 - -
*PNC Bank, N.A. Zaring Stock Liquidity Fund 115,482 - 115,482 - -
*PNC Bank, N.A. Zaring Stock Liquidity Fund - 108,746 108,746 - -
Janus Worldwide Janus Worldwide Fund 136,093 - 136,093 - -
</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.
The accompanying notes to financial statements
are an integral part of this schedule.
13
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
-----------------------------------------
As independent public accountants, we hereby consent to the incorporation of our
report included in this Form 11-K, into the Company's previously filed
Registration Statement File No. 33-85588.
Arthur Andersen LLP
Cincinnati, Ohio
June 30, 1998
