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 (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 ____________________
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
1134 MARKET STREET
WHEELING, WV 26003
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
WHX CORPORATION
110 EAST 59TH ST.
NEW YORK, NY 10022
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS AND
ADDITIONAL INFORMATION
DECEMBER 31, 1997 AND 1996
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION
DECEMBER 31, 1997 AND 1996
INDEX
- --------------------------------------------------------------------------------
PAGE
----
Report of Independent Accountants 1
Financial Statements:
Statements of Net Assets Available for Plan Benefits
With Fund Information - December 31, 1997 2
Statements of Net Assets Available for Plan Benefits
With Fund Information - December 31, 1996 3
Statement of Changes in Net Assets Available for Plan Benefits
With Fund Information - Year Ended December 31, 1997 4
Statement of Changes in Net Assets Available for Plan Benefits
With Fund Information - Year Ended December 31, 1996 5
Notes to Financial Statements 6
Additional Information:
Schedule of Assets Held for Investment Purposes Schedule I
Schedule of Reportable Transactions Schedule II
Schedule of Loans or Fixed Income Obligations in Default Schedule III
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
June 24, 1998
To the Participants and Plan Administrator
of the Wheeling-Pittsburgh Steel Corporation
401(k) Retirement Savings Plan
In our opinion, the accompanying statements of net assets available for benefits
and the related statements of changes in net assets available for benefits
present fairly, in all material respects, the net assets available for benefits
of the Wheeling-Pittsburgh Steel Corporation 401(k) Retirement Savings Plan (the
Plan) as of December 31, 1997 and December 31, 1996, and the changes in net
assets available for benefits for the years then ended, in conformity with
generally accepted accounting principles. These financial statements are the
responsibility of the Plan Administrator; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with generally accepted auditing
standards which 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, assessing the
accounting principles used and significant estimates made by the Plan
Administrator and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion expressed
above.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information included in
Schedules I, II and III is presented for purposes of additional analysis and is
not a required part of the basic financial statements but is additional
information required by 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. Schedules I,II and III and the 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.
Price Waterhouse LLP
Pittsburgh, PA
June 24, 1998
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
------------------------------------------------------------------------------------------------
MUTUAL FUNDS
------------------------------------------------------------------------------------------------
IDS
COLLECTIVE IDS IDS NEW IDS AIM
INCOME SELECTIVE MUTUAL DIMENSION STOCK CONSTELLATION TEMPLETON
FUND II FUND FUND FUND FUND FUND FUND
ASSETS
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value
(Note 4) . $ 2,079,071 $ 1,409,589 $ 3,659,765 $10,199,525 $ 4,060,886 $ 556,154 $ 433,510
Cash and cash equivalents 16,939 11,941 26,917 74,107 31,848 9,784 5,487
Interfund receivable/
(payable) 1,479 998 1,892 4,796 1,799 81 13
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total assets 2,097,489 1,422,528 3,688,574 10,278,428 4,094,533 566,019 439,010
----------- ----------- ----------- ----------- ----------- ----------- -----------
LIABILITIES
Contribution refunds payable
(Note 2) (7,816) (5,301) (13,745) (38,301) (15,258) (2,109) (1,636)
---------- ----------- ----------- ---------- ---------- ---------- ------------
Total liabilities (7,816) (5,301) (13,745) (38,301) (15,258) (2,109) (1,636)
---------- ----------- ----------- ---------- ---------- ---------- ------------
Net assets available for
plan benefits $2,089,673 $ 1,417,227 $ 3,674,829 $10,240,127 $ 4,079,275 $ 563,910 $ 437,374
========== =========== =========== =========== =========== =========== ===========
</TABLE>
NON-PARTICIPANT
DIRECTED
---------------
WPC
PARTICIPANT COMMON
LOANS STOCK FUND TOTAL
ASSETS
Investments, at fair value (Note 4) $ 386,597 $3,292,773 $26,077,870
Cash and cash equivalents 11,058 69,007 257,088
Interfund receivable/(payable) (11,058) -- --
----------- ---------- -----------
Total assets 386,597 3,361,780 26,334,958
----------- ---------- -----------
LIABILITIES
Contribution refunds payable (Note 2) - - (84,166)
----------- ---------- -------------
Total liabilities - - (84,166)
----------- ---------- ------------
Net assets available for
plan benefits $ $386,597 $3,361,780 $26,250,792
=========== ========== =============
The accompanying notes are an integral part of these financial statements.
- 2 -
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
------------------------------------------------------------------------------------------------
MUTUAL FUNDS
------------------------------------------------------------------------------------------------
IDS
COLLECTIVE IDS IDS NEW IDS
INCOME SELECTIVE MUTUAL DIMENSION STOCK
FUND II FUND FUND FUND FUND
ASSETS
<S> <C> <C> <C> <C> <C>
Investments, at fair
value (Note 4) $1,935,420 $1,335,514 $2,934,976 $7,555,883 $2,884,442
Interest and dividend
income receivable - - - - -
Cash and cash equivalents 19,911 14,761 31,649 79,667 32,481
Interfund(payable)/
receivable (21,814) 1,052 1,883 4,083 9,241
---------- ---------- ---------- ---------- ----------
Total assets 1,933,517 1,351,327 $2,968,508 $7,639,633 2,926,164
---------- ---------- ---------- ---------- ----------
LIABILITIES
Contribution refunds payable
(Note 2) (12,585) (8,793) (19,321) (49,725) (19,046)
---------- ---------- ---------- -------- -----------
Total liabilities (12,585) (8,793) (19,321) (49,725) (19,046)
---------- ---------- ---------- --------- -----------
Net assets available for
plan benefits $1,920,932 $1,342,534 $2,949,187 $7,589,908 $2,907,118
========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED NON-PARTICIPANT
-------------------------------- DIRECTED
MUTUAL FUNDS
--------------------------------
AIM WPC
CONSTELLATION TEMPLETON PARTICIPANT COMMON STOCK
FUND FUND LOANS FUND TOTAL
ASSETS
<S> <C> <C> <C> <C> <C>
Investments, at fair]
value (Note 4) $225,748 $163,006 $255,558 $1,869,695 $19,160,242
Interest and dividend
income receivable - - - 518 518
Cash and cash equivalents 5,585 3,272 - - 187,326
Interfund(payable)/
receivable 7,127 7,115 (7,836) (851) -
--------- --------- -------- ---------- -----------
Total assets 238,460 173,393 247,722 1,869,362 19,348,086
--------- --------- -------- ---------- -----------
LIABILITIES
Contribution refunds payable
(Note 2) (1,552) (1,129) - - (112,151)
---------- ---------- --------- ---------- ------------
Total liabilities (1,552) (1,129) - - (112,151)
---------- ---------- --------- ---------- ------------
Net assets available for
plan benefits $236,908 $172,264 $247,722 $1,869,362 $19,235,935
========= ========= ======== ========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 3 -
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN
BENEFITS WITH FUND INFORMATION
YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-------------------------------------------------------------------------------------------------
MUTUAL FUNDS
-------------------------------------------------------------------------------------------------
COLLECTIVE IDS SELECTIVE IDS MUTUAL IDS NEW IDS STOCK
INCOME FUND II FUND FUND DIMENSION FUND FUND
ADDITIONS:
Investment income:
Net appreciation/(depreciation)
<S> <C> <C> <C> <C> <C>
in fair value of investments $117,911 11,797 40,614 1,170,035 208,146
Interest and dividends 1 97,412 524,228 761,592 561,576
--------- ---------- ---------- ---------- ---------
117,912 109,209 564,842 1,931,627 769,722
--------- ----------- ---------- ---------- ---------
Contributions:
Participant contributions 272,347 175,738 417,598 1,022,902 446,319
Employer contributions - - - - -
Participant rollovers 8,594 12,519 124,798 2,362 122,571
--------- ---------- --------- --------- -----------
280,941 188,257 542,396 1,025,264 568,890
Interfund transfers (146,851) (102,609) (130,760) 276,949 51,542
--------- ---------- --------- --------- --------
Total additions 252,002 194,857 976,478 3,233,840 1,390,154
--------- --------- --------- --------- ---------
DEDUCTIONS:
Participant benefits paid 78,894 113,585 205,318 467,500 182,670
Participant contribution refunds 7,816 5,301 13,745 38,301 15,258
-------- -------- --------- --------- ---------
Total deductions 86,710 118,886 219,063 505,801 197,928
-------- -------- --------- --------- ---------
LOAN ACTIVITY:
Loans to participants (27,367) (16,648) (66,990) (133,141) (43,262)
Repayments on loans 30,816 15,370 35,217 55,321 23,193
-------- --------- --------- --------- --------
Net loan activity 3,449 (1,278) (31,773) (77,820) (20,069)
-------- --------- --------- --------- ---------
Net increase(decrease) 168,741 74,693 725,642 2,650,219 1,172,157
Net assets at beginning of year 1,920,932 1,342,534 2,949,187 7,589,908 2,907,118
---------- ---------- ---------- ----------- ---------
Net assets at end of year $2,089,673 $1,417,227 $3,674,829 $10,240,127 $4,079,275
========== ========== ========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED NON-PARTICIPANT
-----------------------------------------------
DIRECTED
MUTUAL FUNDS
-----------------------------------------------
AIM -----------
CONSTELLATION TEMPLETON PARTICIPANT WPC COMMON
FUND FOREIGN FUND LOANS STOCK FUND TOTAL
ADDITIONS:
Investment income:
Net appreciation/(depreciation)
<S> <C> <C> <C> <C>
in fair value of investments (10,753) (35,111) - 964,040 2,466,679
Interest and dividends 39,991 44,788 26,151 - 2,055,739
-------- ------- --------- ------------ ---------
29,238 9,677 26,151 964,040 4,522,418
------ ----- --------- ------- ---------
Contributions:
Participant contributions 112,265 70,485 - - 2,517,654
Employer contributions - - - 945,016 945,016
Participant rollovers 11,467 54 - - 282,365
-------- ------- -------- --------- ---------
123,732 70,539 - 945,016 3,745,035
Interfund transfers 180,783 187,885 - (316,939) -
-------- -------- -------- ---------- ---------
Total additions 333,753 268,101 26,151 1,592,117 8,267,453
-------- -------- ------- --------- ----------
DEDUCTIONS:
Participant benefits paid 1,899 1,291 17,574 99,699 1,168,430
Participant contribution refunds 2,109 1,636 - - 84,166
-------- -------- ------- -------- -----------
Total deductions 4,008 2,927 17,574 99,699 1,252,596
-------- -------- ------- ------- ----------
LOAN ACTIVITY:
Loans to participants (3,455) (237) 291,100 - -
Repayments on loans 712 173 (160,802) - -
-------- ------- -------- ---------- ----------
Net loan activity (2,743) (64) 130,298 - -
-------- ------- -------- ---------- ----------
Net increase(decrease) 327,002 265,110 138,875 1,492,418 7,014,857
Net assets at beginning of year 236,908 172,264 247,722 1,869,362 19,235,935
------- ------- -------- ---------- -----------
Net assets at end of year $563,910 $437,374 $386,597 $3,361,780 $26,250,792
======== ======== ========= ========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 4 -
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR
PLAN BENEFITS WITH FUND INFORMATION
YEAR ENDED DECEMBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-------------------------------------------------------------------------------------------------
MUTUAL FUNDS
-------------------------------------------------------------------------------------------------
COLLECTIVE IDS SELECTIVE IDS MUTUAL IDS NEW IDS STOCK
INCOME FUND II FUND FUND DIMENSION FUND FUND
ADDITIONS:
Investment income:
<S> <C> <C> <C> <C> <C>
Net appreciation/(depreciation)
in fair value of investments $104,413 ($70,868) $74,956 $1,110,666 $263,276
Interest and dividends - 106741 275,765 289,750 188,418
---------- ---------- ---------- ---------- ----------
104,413 35,873 350,721 1,400,416 451,694
---------- ---------- ---------- ---------- ----------
Contributions:
Participant contributions 317,756 246,464 486,124 1,078,343 473,385
Employer contributions - - - - -
Participant rollovers - 8,606 36,097 1,682
---------- ---------- ---------- ---------- ----------
317,756 246,464 494,730 1,114,440 475,067
Interfund transfers (13,933) (122,388) (164,211) 4,295 (25,253)
---------- ---------- ---------- ---------- ----------
Total additions 408,236 159,949 681,240 2,519,151 901,508
---------- ---------- ---------- ---------- ----------
DEDUCTIONS:
Participant benefits paid 113,322 105,893 93,852 177,409 91,092
Participant contribution refunds 12,585 8,793 19,321 49,725 19,046
---------- ---------- ---------- ---------- ----------
Total deductions 125,907 114,686 113,173 227,134 110,138
---------- ---------- ---------- ---------- ----------
LOAN ACTIVITY:
Loans to participants (18,305) (10,692) (24,396) (78,178) (21,390)
Repayments on loans 32,535 13,157 25,988 78,775 20,909
---------- ---------- ---------- ---------- ----------
Net loan activity 14,230 2,465 1,592 597 (481)
---------- ---------- ---------- ---------- ----------
Net increase(decrease) 296,559 47,728 569,659 2,292,614 790,889
Net assets at beginning of year 1,624,373 1,294,806 2,379,528 5,297,294 2,116,229
---------- ---------- ---------- ---------- ----------
Net assets at end of year $1,920,932 $1,342,534 $2,949,187 $7,589,908 $2,907,118
========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------
PARTICIPANT DIRECTED NON-PARTICIPANT
DIRECTED
MUTUAL FUNDS
-----------------------------------------------
AIM -----------
CONSTELLATION TEMPLETON PARTICIPANT WPC COMMON
FUND FOREIGN FUND LOANS STOCK FUND TOTAL
ADDITIONS:
Investment income:
<S> <C> <C> <C> <C>
Net appreciation/(depreciation)
in fair value of investments $5,421 $5,691 - ($358,235) $1,135,320
Interest and dividends 6,721 5,071 21,127 518 894,111
-------- -------- -------- ---------- ------------
12,142 10,762 21,127 (357,717) 2,029,431
-------- -------- -------- ---------- ------------
Contributions:
Participant contributions 25,560 13,899 - - 2,641,531
Employer contributions - - - 977,730 977,730
Participant rollovers - - - - 46,385
-------- -------- -------- ---------- ------------
25,560 13,899 - 977,730 3,665,646
Interfund transfers 201,222 149,028 - (28,760) -
-------- -------- -------- ---------- ------------
Total additions 238,924 173,689 21,127 591,253 5,695,077
-------- -------- -------- ---------- ------------
DEDUCTIONS:
Participant benefits paid - - 3,607 52,252 637,427
Participant contribution refunds 1,552 1,129 - - 12,151
-------- -------- -------- ---------- ------------
Total deductions 1,552 1,129 3,607 52,252 749,578
-------- -------- -------- ---------- ------------
LOAN ACTIVITY:
Loans to participants (575) (364) 153,900 - -
Repayments on loans 111 68 (171,543) - -
-------- -------- -------- ---------- ------------
Net loan activity (464) (296) (17,643) - -
-------- -------- -------- ---------- ------------
Net increase(decrease) 236,908 172,264 (123) 539,001 4,945,499
Net assets at beginning of year - - 247,845 1,330,361 14,290,436
-------- -------- -------- ---------- ------------
Net assets at end of year $236,908 $172,264 $247,722 $1,869,362 $19,235,935
======== ======== ======== ========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 5 -
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
DECEMBER 31, 1997 AND 1996
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. PLAN FORMATION
The Wheeling-Pittsburgh Steel Corporation 401(k) Retirement Savings Plan
(the Plan) became effective July 1, 1990, and is intended to provide the
opportunity for retirement savings for employees of the
Wheeling-Pittsburgh Steel Corporation (the Corporation) not covered by a
bargaining agreement.
2. DESCRIPTION OF THE PLAN
The following description of the Plan provides only general information.
Participants should refer to the Plan agreement for a more comprehensive
description of the Plan's provisions.
GENERAL
The Plan is a defined contribution plan qualified under Section 401(a) of
the Internal Revenue Code (IRC). It is subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA).
PARTICIPANT CONTRIBUTIONS
The Corporation deposits cash to the Plan based on deductions from the
employees' monthly pretax-base pay and any periodic bonuses. Plan
participants may elect to contribute 1 percent to 15 percent of their base
earnings and periodic bonuses to the Plan. The sum of employer and
employee contributions plus total contributions to the WPSC Salaried
Employees' Pension Plan may not exceed 25% of a Participant's annual
salary. Contributions vary according to the Participant's election and may
be changed at the discretion of the employee. This Plan is voluntary, and
all contributions to the Plan are made by the employee on a pretax basis.
PARTICIPANT ROLLOVERS
Participant rollovers represent transfers of cash or other property from
other qualified plans.
EMPLOYER CONTRIBUTIONS
The Corporation provides a matching contribution in the amount of 50
percent of the first 6 percent of employee pretax contributions in the
form of WHX common stock to the WPC Common Stock Fund. WHX is the parent
of the Corporation. WHX common stock trades actively on a regulated
exchange. Participant accounts are comprised of units of participation, as
each unit of participation constitutes an undivided, pro-rata interest in
all of the assets of the fund. The fair value of a unit of participation
is calculated as the sum of the market value of all shares of WHX stock
held in the fund, the value of all units of the cash fund held in the
fund, plus income accruals, all divided by the outstanding units of the
fund. The number of units constituting the fund will vary as amounts are
invested in or withdrawn from the fund.
At December 31, 1997, the Plan held 520,185 units of participation in the
WPC Common Stock Fund with a fair value of $6.33 per unit. At December 31,
1996, the Plan held 398,585 units of participation in the WPC Common Stock
Fund with a fair value of $4.69 per unit.
CONTRIBUTIONS - REFUNDS
At the end of each year, the Plan must meet a special annual IRC
nondiscrimination test, in addition to the
- 6 -
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
DECEMBER 31, 1997 AND 1996
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
25% limit as discussed in "Participant Contributions" above. To the extent
that in applying this test certain employee's contributions are higher
than the percentage allowed, these employees are refunded that portion of
their yearly contribution. These refunds amounted to $84,166 for 1997 and
$112,151 for 1996.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the employee and applicable
employer contributions and an allocation of the Plan earnings. Allocations
of Plan earnings are based on participant's account balance as a
percentage of the total account balance for the applicable investment
option.
VESTING
All contributions plus actual earnings thereon are immediately vested,
including company contributions.
INVESTMENT OPTIONS
Upon enrollment in the Plan, a participant may direct employee
contributions in 5 percent increments to any of the following investment
options:
REGISTERED INVESTMENT COMPANIES
Funds are invested in shares of registered investment companies,
including the IDS Selective Fund, IDS Mutual Fund, IDS New Dimensions
Fund, IDS Stock Fund, AIM Constellation Fund and the Templeton
Foreign Fund.
COMMON/COLLECTIVE TRUSTS
Funds are invested in the American Express Trust Collective Income
Fund II. The Trust primarily invests in insurance and bank investment
contracts.
PLAN AMENDMENT
In July of 1996, the Plan was amended to include two additional investment
options: the AIM Constellation Fund and the Templeton Foreign Fund.
TRANSFER RESTRICTION
Participants may elect to transfer employer contributions out of the WPC
Common Stock Fund to other investment funds under the Plan after 2 years
have passed since the employer contribution was deposited into the Fund.
Participants are prohibited from requesting a transfer to the WPC Common
Stock Fund from other investments under the Plan.
DISTRIBUTIONS TO PARTICIPANTS
The Plan is designed to be a savings plan for retirement. As a result,
participant access to funds is limited and is regulated by the federal
government. There were no distributions to participants payable at
December 31, 1997 and 1996.
PARTICIPANT LOANS
Participants may borrow from their fund accounts a minimum of $1,000 and a
maximum equal to the lesser
- 7 -
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
DECEMBER 31, 1997 AND 1996
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
of 50 percent of the participant's account balance or $50,000. Loan
transactions are treated as a transfer to (from) the investment fund from
(to) the participant loans. The loans are secured by the balance in the
participant's accounts and bear fixed interest at a rate of prime plus 1
percent at the time of loan inception. Interest rates range from 7.00% to
10.00%. Participant repayment is usually within 5 years. Principal and
interest is paid through monthly payroll deductions.
3. SUMMARY OF ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The Plan's financial statements are prepared on the accrual basis of
accounting. Certain prior year amounts have been reclassified to conform
with current year presentation.
INVESTMENT VALUATION AND INCOME RECOGNITION
Plan investments are stated at fair value. Shares of registered investment
companies are valued at quoted market prices, and shares of common
collective trusts are valued at the current market value of the underlying
assets. The WPC common stock fund is valued at fair value which represents
the net asset value of shares held by the Plan at year-end, which consists
of the quoted market price of the underlying WHX Common Stock and money
market funds. Participant loans are valued at cost, representing the
amount loaned. Interest income is recorded on the accrual basis. Dividend
income is recorded on the ex- dividend date.
MEASUREMENT DATE
Purchases and sales of securities are recognized on the settlement date.
DIVIDENDS
Dividends on mutual fund shares and on the Corporation's common stock are
credited to each Participant's account, as appropriate, for shares or
units held at the date of record.
CONTRIBUTIONS
All contributions are recorded in the period during which the Corporation
makes payroll deductions from the Plan participant's earnings.
PAYMENT OF BENEFITS
Benefits are recorded when paid.
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 amount of assets at the date of the
financial statements. Actual amounts could differ from these estimates.
- 8 -
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
DECEMBER 31, 1997 AND 1996
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
4. INVESTMENTS
The Plan's investments are held in trust by the American Express Trust
Company. The following table presents the Plan's investments.
<TABLE>
<CAPTION>
DECEMBER 31,
1997 1996
INVESTMENTS AT FAIR VALUE AS DETERMINED BY
QUOTED MARKET PRICE:
Mutual Funds:
IDS Selective Fund, 153,550 and
<S> <C> <C>
146,695 shares, respectively $ 1,409,589 $ 1,335,514
IDS Mutual Fund, 266,591 and
217,760 shares, respectively 3,659,765 2,934,976
IDS New Dimensions Fund, 427,438 and
364,878 shares, respectively 10,199,525 7,555,883
IDS Stock Fund, 166,525 and 127,405 shares,
respectively 4,060,886 2,884,442
AIM Constellation Fund, 21,082 and 8,937 shares,
respectively 556,154 225,748
Templeton Foreign Fund, 43,569 and 15,734 shares,
respectively 433,510 163,006
Collective Trust Funds:
American Express Trust Collective Income
Fund II, 119,528 and 117,992 shares,
respectively 2,079,071 1,935,420
--------- ---------
Total investments at fair value as determined
by quoted market price 22,398,500 17,034,989
---------- ----------
INVESTMENTS AT FAIR VALUE:
WPC Common Stock Fund, 520,185
and 398,585 shares, respectively 3,292,773 1,869,695
--------- ---------
Total investments $ 25,691,273 $ 18,904,684
========== ==========
</TABLE>
- 9 -
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
DECEMBER 31, 1997 AND 1996
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
5. RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds managed by American
Express Trust Company. American Express Trust Company is the trustee as
defined by the Plan and, therefore, these transactions qualify as
party-in-interest transactions. The Plan does not pay fees for the
investment management services provided by the trustee. These fees are
paid by the company.
6. PLAN TERMINATION
Although it has not expressed any intent to do so, the Corporation has the
right under the Plan to discontinue its contributions at any time and
terminate the Plan subject to the provisions of ERISA. In the event of
termination, all participants shall remain 100 percent vested in their
accounts.
7. TAX STATUS
The Internal Revenue Service has determined and informed the Corporation
by letter dated January 9, 1995, that the Plan and related trust are
designed in accordance with the applicable sections of the IRC. The Plan
has been amended since receiving the determination letter. However, the
Plan Administrator believes that the Plan is designed and is currently
being operated in compliance with the applicable provisions of the IRC.
- 10 -
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
ADDITIONAL INFORMATION
SCHEDULE I - ASSETS HELD FOR INVESTMENT PURPOSES - ITEM 27(A)
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
IDENTITY OF DESCRIPTION OF INVESTMENT
ISSUER,BORROWER, INCLUDING MATURITY DATE, RATE OF
LESSOR OR SIMILAR INTEREST, COLLATERAL, PAR OR CURRENT
PARTY MATURITY VALUE COST VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AMERICAN EXPRESS AMERICAN EXPRESS TRUST $1,856,557 $2,079,071
TRUST CO.* COLLECTIVE INCOME FUND II,
119,528 SHARES
AMERICAN EXPRESS IDS SELECTIVE FUND, $1,399,453 $1,409,589
TRUST CO.* 153,550 CLASS Y SHARES
AMERICAN EXPRESS IDS MUTUAL FUND, $3,456,534 $3,659,765
TRUST CO.* 266,591 CLASS Y SHARES
AMERICAN EXPRESS IDS NEW DIMENSIONS FUND, $7,373,040 $10,199,525
TRUST CO.* 427,438 CLASS Y SHARES
AMERICAN EXPRESS IDS STOCK FUND, $3,557,459 $4,060,886
TRUST CO.* 166,525 CLASS Y SHARES
AIM MANAGEMENT AIM CONSTELLATION FUND $566,837 $556,153
GROUP 21,082 SHARES
FRANKLIN TEMPLETON TEMPLETON FOREIGN FUND $461,605 $433,510
GROUP 43,569 SHARES
WHX CORP.* WPC COMMON STOCK FUND, $2,938,857 $3,292,773
520,185 SHARES
N/A PARTICIPANT LOANS, INTEREST RATES $386,597 $386,597
FROM 7.00% TO 10.00%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Indicates party-in-interest.
- 11 -
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
ADDITIONAL INFORMATION
SCHEDULE II - SCHEDULE OF REPORTABLE TRANSACTIONS - ITEM 27(d)
YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CURRENT
VALUE OF
NUMBER ASSET ON NET
DESCRIPTION OF PURCHASE SELLING COST OF TRANSACTION GAIN OR
PARTY INVOLVED OF ASSETS TRANSACTIONS PRICE PRICE ASSET DATE (LOSS)
<S> <C> <C> <C> <C>
American Express IDS New Dimensions
Trust Co. Fund 126 $2,415,878 - - $2,415,878 -
American Express IDS New Dimensions
Trust Co. Fund 58 - $942,229 $656,349 $942,229 $285,880
American Express IDS Mutual Fund
Trust Co. 73 $1,165,356 - - $1,165,356 -
American Express IDS Mutual Fund
Trust Co. 56 - $481,166 $418,973 $481,166 $62,193
American Express AETC Collective
Trust Co. Income Fund II 57 $559,373 - - $559,373 -
American Express AETC Collective
Trust Co. Income Fund II 60 - $533,647 $482,860 $533,647 $50,787
American Express IDS Stock Fund
Trust Co. 83 $1,270,566 - - $1,270,566 -
American Express IDS Stock Fund
Trust Co. 45 - $302,268 $243,770 $302,268 $58,498
WHX Corporation WPC Common
Stock Fund 29 $933,958 - - $933,958 -
WHX Corporation WPC Common
Stock Fund 131 - $402,509 $395,538 $402,509 $6,971
</TABLE>
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
ADDITIONAL INFORMATION
SCHEDULE III - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS IN DEFAULT - ITEM
27(B) DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
===================================================================================================
IDENTITY AND ADDRESS OF ORIGINAL PRINCIPAL PAID INTEREST PAID UNPAID BALANCE AT
OBLIGOR AMOUNT OF DURING 1997 DURING 1997 12/31/97
LOAN
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Frank J. Aceto 7,000 203 93 5,555
423 Buena Vista Blvd
Steubenville, OH 43952
- ---------------------------------------------------------------------------------------------------
Edward Bengier 6,500 473 213 4,966
320 Maplewood Drive
Steubenville, OH 43952
===================================================================================================
</TABLE>
<TABLE>
<CAPTION>
============================================================================================================================
IDENTITY AND ADDRESS OF DETAILED DESCRIPTION OF LOAN AMOUNT OF AMOUNT OF COLLECTION
OBLIGOR PRINCIPAL INTEREST PROCEDURES
OVERDUE OVERDUE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Frank J. Aceto Date of origination: 12/1/95 1,066 413 Distributed in
423 Buena Vista Blvd Maturity date: 12/31/00 1998
Steubenville, OH 43952 Interest rate: 9.75%
- ----------------------------------------------------------------------------------------------------------------------------
Edward Bengier Date of origination: 12/18/95 695 266 Distributed in
320 Maplewood Drive Maturity date: 12/31/00 1998
Steubenville, OH 43952 Interest rate: 9.75%
============================================================================================================================
</TABLE>
-13-
<PAGE>
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 by the undersigned hereunto duly
authorized.
WHEELING-PITTSBURGH STEEL CORPORATION 401(K) RETIREMENT SAVINGS PLAN
(Name of Plan)
Date: JUNE 29, 1998 By: /s/ Paul J. Mooney
------------------------------------------
Paul J. Mooney
Executive Vice President -
Chief Financial Officer
Wheeling-Pittsburgh Steel Corporation
Retirement Committee
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (no. 33-54801) of our report dated June 24, 1998 appearing
on Page 1 of the Annual Report of the Wheeling-Pittsburgh Steel Corporation
401(k) Retirement Savings Plan on Form 11-K for the year ended December 31,
1997.
Price Waterhouse LLP
Pittsburgh, PA
June 29, 1998
