<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 11 - K
[ 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, 1998
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
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1998 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
FINANCIAL STATEMENTS
AS OF
DECEMBER 31, 1998 AND 1997
TOGETHER WITH
AUDITORS' REPORT
<PAGE> 3
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1998 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: 31-1506058
1998 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 as of December 31, 1998 and 1997 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, 1998 and 1997, 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 Regulations for Reporting and Disclosure under
-1-
<PAGE> 5
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1998 Form 5500
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 18, 1999
-2-
<PAGE> 6
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1998 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
--------------------------------------------------------------------------------------
BLACK ROCK BLACK ROCK BLACK ROCK
BLACK ROCK BLACK ROCK LARGE CAP LARGE CAP SMALL CAP
MONEY CORE VALUE GROWTH GROWTH JANUS JANUS
MARKET BOND EQUITY EQUITY EQUITY WORLDWIDE GROWTH &
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND INCOME FUND
---------- ---------- ---------- ----------- ---------- --------- -----------
ASSETS
- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Cash and cash equivalents $ - $ - $ - $ - $ - $ - $ -
Investments, at market value
(Note 2)-
Mutual funds 466,265 79,975 390,546 422,001 153,587 266,907 601,521
Common stock - - - - - - -
Employer contribution receivable 166,715 22,846 45,292 50,175 44,200 67,170 150,740
Employee contribution receivable 17,895 - - - - - -
---------- ---------- ---------- ----------- ---------- --------- -----------
Net assets available for
plan benefits $ 650,875 $ 102,821 $ 435,838 $ 472,176 $ 197,787 $ 334,077 $ 752,261
========== ========== ========== =========== ========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
NON-
PARTICIPANT
PARTICIPANT DIRECTED DIRECTED
---------------------- ------------
ZARING
NATIONAL
CORPORATION
FIDELITY ZARING STOCK
EQUITY NATIONAL LIQUIDITY
GROWTH CORPORATION FUND
FUND STOCK (TEMPORARY) TOTAL
---------- ---------- ------------ ----------
ASSETS
- ------
<S> <C> <C> <C> <C>
Cash and cash equivalents $ - $ - $ 3,802 $ 3,802
Investments, at market value
(Note 2)-
Mutual funds 197,078 - - 2,577,880
Common stock - 341,493 - 341,493
Employer contribution receivable 64,284 - 161,690 773,112
Employee contribution receivable - - - 17,895
---------- ---------- ------------ ----------
Net assets available for
plan benefits $ 261,362 $ 341,493 $ 165,492 $3,714,182
========== ========== ============ ==========
</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: 31-1506058
1998 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
----------------------------------------------------------------------------------------
BLACK ROCK BLACK ROCK BLACK ROCK
BLACK ROCK BLACK ROCK LARGE CAP LARGE CAP SMALL CAP
MONEY CORE VALUE GROWTH GROWTH JANUS JANUS
MARKET BOND EQUITY EQUITY EQUITY WORLDWIDE GROWTH &
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND INCOME FUND
---------- ---------- ---------- ----------- ---------- --------- -----------
ASSETS
- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Cash and cash equivalents $ - $ - $ - $ - $ - $ - $ -
Investments, at market value
(Note 2)-
Mutual funds 457,587 52,401 384,629 268,200 103,714 121,990 117,966
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 $ 117,966
========== ========== ========== =========== ========== ========= =========
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED NON-PARTICIPANT DIRECTED
---------------------- --------------------------
ZARING
NATIONAL
CORPORATION
FIDELITY ZARING STOCK ZARING
EQUITY NATIONAL LIQUIDITY NATIONAL
GROWTH CORPORATION FUND CORPORATION
FUND STOCK (TEMPORARY) STOCK TOTAL
---------- ---------- ------------ ----------- ----------
ASSETS
- ------
<S> <C> <C> <C> <C> <C>
Cash and cash equivalents $ - $ - $ 8,696 $ - $ 8,696
Investments, at market value
(Note 2)-
Mutual funds 100,595 - - - 1,607,082
Common stock - 214,853 - 94,166 309,019
Employer contribution receivable - - 13,289 - 13,289
Employee contribution receivable - - - - 21,954
---------- ---------- ------------ ----------- ----------
Net assets available for
plan benefits $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.
-4-
<PAGE> 8
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1998 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, 1998
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
----------------------------------------------------------------------------------------
BLACK ROCK BLACK ROCK BLACK ROCK
BLACK ROCK BLACK ROCK LARGE CAP LARGE CAP SMALL CAP
MONEY CORE VALUE GROWTH GROWTH JANUS JANUS
MARKET BOND EQUITY EQUITY EQUITY WORLDWIDE GROWTH &
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND INCOME FUND
---------- ---------- ---------- ----------- ---------- --------- -----------
ADDITIONS:
<S> <C> <C> <C> <C> <C> <C> <C>
Employer contributions $ 167,204 $ 23,520 $ 47,320 $ 51,227 $ 45,465 $ 68,102 $ 152,292
Employee contributions 107,374 20,472 80,289 71,490 81,023 118,019 314,176
Realized and unrealized net
gains (losses)
(Notes 2 and 5) 22,342 5,139 31,823 115,855 6,828 41,946 107,943
DEDUCTIONS:
Distributions to participants
(Note 1) (67,020) (8,610) (51,839) (50,062) (30,405) (34,333) (66,721)
TRANSFERS (58,566) 9,899 (56,384) 15,466 (8,838) 18,353 126,605
---------- ---------- ---------- ----------- ---------- --------- -----------
Increase (decrease) in net
assets available for plan
benefits 171,334 50,420 51,209 203,976 94,073 212,087 634,295
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, beginning of year 479,541 52,401 384,629 268,200 103,714 121,990 117,966
---------- ---------- ---------- ----------- ---------- --------- -----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year $ 650,875 $ 102,821 $ 435,838 $ 472,176 $ 197,787 $ 334,077 $ 752,261
========== ========== ========== =========== ========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED NON-PARTICIPANT DIRECTED
---------------------- --------------------------
ZARING
NATIONAL
CORPORATION
FIDELITY ZARING STOCK ZARING
EQUITY NATIONAL LIQUIDITY NATIONAL
GROWTH CORPORATION FUND CORPORATION
FUND STOCK (TEMPORARY) STOCK TOTAL
---------- ---------- ------------ ----------- ----------
ADDITIONS:
<S> <C> <C> <C> <C> <C>
Employer contributions $ 64,834 $ - $ 154,848 $ - $ 774,812
Employee contributions 90,084 - 114,513 - 997,440
Realized and unrealized net
gains (losses)
(Notes 2 and 5) 48,149 (15,762) 283 - 364,546
DEDUCTIONS:
Distributions to participants
(Note 1) (19,562) (53,581) (523) - (382,656)
TRANSFERS (22,738) 195,983 (125,614) (94,166) -
---------- ---------- ------------ ----------- ----------
Increase (decrease) in net
assets available for plan
benefits 160,767 126,640 143,507 (94,166) 1,754,142
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, beginning of year 100,595 214,853 21,985 94,166 1,960,040
---------- ---------- ------------ ----------- ----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year $ 261,362 $ 341,493 $ 165,492 $ - $3,714,182
========== ========== ============ =========== ==========
</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: 31-1506058
1998 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
------------------------------------------------------------------------------------------------------
BLACK
ROCK BLACK
BLACK BLACK ROCK LARGE ROCK
BLACK ROCK BLACK ROCK LARGE CAP CAP BLACK ROCK SMALL CAP INVESCO
MONEY ROCK MANAGED VALUE GROWTH INTERNATIONAL GROWTH SELECT
MARKET CORE 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) 2,532 1,606 77,749 55,241 7,148 8,773 54 4,210
(Notes 2 and 5) 24,933
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
========== ========= ========= ========= ========= ============= ========= ======= =========
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED 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
-------- -------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
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 5)
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.
-6-
<PAGE> 10
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1998 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
(1) PLAN DESCRIPTION-
----------------
The following description of the Zaring National Corporation Retirement
Benefit Plan (the 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 January 1, 1998.
The Plan is available to all employees who meet the stipulated age
and service requirements. 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. In accordance with the amended and
restated Plan, effective January 1, 1998, the Company's matching
contribution is equal to 25% of participant deferrals up to 6% of
participant compensation, subject to certain limits as required by
the Internal Revenue Code (IRC) and profit sharing contribution is
equal to 3.75% of participant compensation. Unallocated employee
contribution receivables of $17,895 and $21,954 at December 31,
1998 and 1997, are included in the money market portfolio.
-7-
<PAGE> 11
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1998 Form 5500
(c) PARTICIPANT ACCOUNTS--Each participant's account is credited with
the participant's voluntary contributions, matching contributions
and an allocation of the Company's profit sharing 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.
(e) INVESTMENT OPTIONS--Participants may direct their voluntary
contributions and, effective January 1, 1998, Company
contributions to be invested into a number of segregated funds. At
December 31, 1998, 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 denominated instruments
Black Rock Core Bond Portfolio Investment grade fixed income securities
in the 5 to 10 year maturity range
Black Rock Large Cap Value Common stocks with price to earnings
Equity Portfolio ratios below average.
Black Rock Large Cap Growth U.S. equity securities
Equity Portfolio
Black Rock Small Cap Growth Common stocks of small-cap companies
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>
-8-
<PAGE> 12
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1998 Form 5500
(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 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.
-9-
<PAGE> 13
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1998 Form 5500
(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.
(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 1998 and 1997, the Plan's investments (including investments,
bought, sold and held during the year) appreciated (depreciated) in value
as follows:
<TABLE>
<CAPTION>
1998 1997
--------- ---------
<S> <C> <C>
Mutual funds $ 380,025 $ 219,542
Common stock (15,479) (71,529)
--------- ---------
$ 364,546 $ 148,013
========= =========
</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,
-------------------------
1998 1997
-------- --------
<S> <C> <C>
Black Rock Money Market Portfolio $466,265 $457,587
Black Rock Large Cap Value Equity Portfolio 390,546 384,629
Black Rock Large Cap Growth Equity Portfolio 422,001 268,200
Black Rock Small Cap Growth Equity Portfolio 153,587 103,714
Janus Worldwide Fund 266,907 121,990
Janus Growth & Income Fund 601,521 117,966
Fidelity Equity Growth Fund 197,078 100,595
Zaring National Corporation common stock 341,493 309,019
</TABLE>
-10-
<PAGE> 14
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1998 Form 5500
(6) RELATED PARTY TRANSACTIONS-
--------------------------
Certain Plan investments are managed by the Company and PNC Bank, N.A.
(PNC). PNC is the trustee, as defined by the Plan, and, therefore, these
transactions qualify as party-in-interest.
(7) RECONCILIATION TO FORM 5500-
---------------------------
As of December 31, 1998 and 1997, the Plan had approximately $552 and
$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, 1998 and 1997:
<TABLE>
<CAPTION>
NET ASSETS AVAILABLE FOR PLAN
1998 BENEFITS BENEFITS, DECEMBER 31,
PAYABLE TO 1998 ----------------------------------------
PARTICIPANTS BENEFITS PAID 1998 1997
------------- ------------- ---------------- -------------
<S> <C> <C> <C> <C>
Per financial statements $ - $ 382,656 $ 3,714,182 $ 1,960,040
Amounts pending distribution
to participants 552 552 (552) (19,400)
Reversal of prior year amounts
pending distribution to
participants - (19,400) - -
------------- ------------- ---------------- -------------
Per Form 5500 $ 552 $ 363,808 $ 3,713,630 $ 1,940,640
============= ============= ================ =============
</TABLE>
-11-
<PAGE> 15
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1998 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
ITEM 27(a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
DESCRIPTION OF INVESTMENT
INCLUDING MATURITY DATE,
IDENTITY OF ISSUER, BORROWER, RATE OF INTEREST, COLLATERAL, CURRENT
LESSOR OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ------------------------------------- --------------------------------------- -------- --------
<S> <C> <C> <C>
MUTUAL FUNDS:
*Black Rock Funds Money Market Portfolio, $402,433 $466,265
363,012 shares
*Black Rock Funds Large Cap Value Equity Portfolio, 359,177 390,546
24,424 shares
*Black Rock Funds Large Cap Growth Equity Portfolio, 303,771 422,001
20,095 shares
*Black Rock Funds Core Bond Portfolio, 79,912 79,975
8,169 shares
*Black Rock Funds Small Cap Growth Equity Portfolio, 141,271 153,587
7,101 shares
Janus Worldwide Funds Growth and Income Fund, 535,907 601,521
20,671 shares
Janus Worldwide Funds World Wide Fund, 233,263 266,907
5,636 shares
Fidelity Investments Equity Growth Fund, 169,151 197,078
3,453 shares
COMMON STOCKS:
* Zaring National Corporation Common stock, 366,297 341,493
39,028 shares
</TABLE>
* Represents a party-in-interest.
The accompanying notes to financial statements
are an integral part of this statement.
-12-
<PAGE> 16
Zaring National Corporation
Retirement Benefit Plan
Plan 002
EIN: 31-1506058
1998 Form 5500
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
ITEM 27(d) - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
CURRENT VALUE OF
SELLING COST OF ASSET ON TRANSACTION NET
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET PURCHASE PRICE PRICE ASSET DATE (A) GAIN (LOSS)
- -------------------------- --------------------------------- -------------- -------- -------- -------------------- -----------
<S> <C> <C> <C> <C> <C> <C>
*Black Rock Funds Money Market Portfolio $144,766 $ - $144,766 $ - $ -
*Black Rock Funds Money Market Portfolio - 161,456 148,937 - 12,519
*Black Rock Funds Large Cap Value Equity Portfolio 127,847 - 127,847 - -
*Black Rock Funds Large Cap Value Equity Portfolio - 127,949 113,956 - 13,993
*Black Rock Funds Large Cap Growth Equity Portfolio 120,844 - 120,844 - -
*Black Rock Funds Large Cap Growth Equity Portfolio - 53,359 45,092 - 8,267
*Black Rock Funds Small Cap Growth Equity Portfolio 103,956 - 103,956 - -
*Black Rock Funds Small Cap Growth Equity Portfolio - 60,911 62,889 - (1,978)
Janus Worldwide Worldwide Fund 156,157 - 156,157 - -
Janus Worldwide Worldwide Fund - 49,552 47,622 - 1,930
Janus Worldwide Growth & Income Fund 522,107 - 522,107 - -
Janus Worldwide Growth & Income Fund - 106,085 99,229 - 6,856
Fidelity Investments Equity Growth Fund 121,146 - 121,146 - -
Fidelity Investments Equity Growth Fund - 50,485 43,795 - 6,690
*Zaring National Corporation Zaring Stock Fund 168,228 - 168,228 - -
*Zaring National Corporation Zaring Stock Fund - 119,993 135,007 - (15,014)
*PNC Bank, N.A. Zaring Stock Liquidity Fund 143,407 - 143,407 - -
*PNC Bank, N.A. Zaring Stock Liquidity Fund - 148,302 148,302 - -
</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 statement.
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<PAGE> 17
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, 1999
ZARING NATIONAL CORPORATION
RETIREMENT BENEFIT PLAN
By /s/ Ronald G. Gratz
-----------------------
Ronald G. Gratz
Chief Financial Officer
ZARING NATIONAL CORPORATION
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<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.
/s/ Arthur Andersen LLP
Cincinnati, Ohio
June 30, 1999
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