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, 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 ____________________
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, 1998 AND 1997
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION
DECEMBER 31, 1998 AND 1997
INDEX
- --------------------------------------------------------------------------------
PAGE
Report of Independent Accountants 1
Financial Statements:
Statements of Net Assets Available for Plan Benefits
With Fund Information - December 31, 1998 2
Statements of Net Assets Available for Plan Benefits
With Fund Information - December 31, 1997 3
Statement of Changes in Net Assets Available for Plan Benefits
With Fund Information - Year Ended December 31, 1998 4
Statement of Changes in Net Assets Available for Plan Benefits
With Fund Information - Year Ended December 31, 1997 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
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, 1998 and December 31, 1997, 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's management; 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 management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion expressed above.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of Schedule
I-Assets Held for Investment Purposes, Schedule II-Schedule of Reportable
Transaction and Schedule III-Schedule of Loans or Fixed Income Obligations in
Default are presented for 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 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. These supplemental schedules and fund information are the responsibility
of the Plan's management. 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/ PricewaterhouseCoopers LLP
June 3,1999
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1998
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
MUTUAL FUNDS
COLLECTIVE IDS SELECTIVE IDS MUTUAL IDS NEW IDS STOCK
INCOME FUND II FUND FUND DIMENSION FUND FUND
ASSETS
<S> <C> <C> <C> <C> <C>
Investments, at fair value (Note 4) $ 2,408,453 $ 1,631,173 $ 4,037,969 $13,548,611 $ 5,197,994
Cash and cash equivalents 17,823 11,894 27,282 81,777 33,648
Interfund receivable/(payable) 1,388 1,298 2,842 6,196 2,112
----------- ----------- ----------- ----------- -----------
receivable/(payable)/receivable
Total assets $ 2,427,664 $ 1,644,365 $ 4,068,093 $13,636,584 $ 5,233,754
----------- ----------- ----------- ----------- -----------
LIABILITIES
Contribution refunds payable (Note 2) 5,641 3,821 9,452 31,684 12,161
----------- ----------- ----------- ----------- -----------
Total liabilities 5,641 3,821 9,452 31,684 12,161
----------- ----------- ----------- ----------- -----------
Net assets available for plan benefits $ 2,422,023 $ 1,640,544 $ 4,058,641 $13,604,900 $ 5,221,593
----------- ----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED NON-PARTICIPANT
DIRECTED
MUTUAL FUNDS
AIM CONSTEL- TEMPLETON PARTICIPANT WPC COMMON
LATION FUND FOREIGN FUND LOANS STOCK FUND TOTAL
ASSETS
<S> <C> <C> <C> <C> <C>
Investments, at fair value (Note 4) $ 817,665 $ 456,326 $ 473,610 $ 2,965,923 $31,537,724
Cash and cash equivalents 10,723 5,873 3,279 74,011 266,310
Interfund receivable/(payable) 153 118 (14,107) - -
----------- ----------- ----------- ----------- -----------
receivable/(payable)/receivable
Total assets $ 828,541 $ 462,317 $ 462,782 $ 3,039,934 $31,804,034
----------- ----------- ----------- ----------- -----------
LIABILITIES
Contribution refunds payable (Note 2) 1,925 1,074 -- -- 65,758
----------- ----------- ----------- ----------- -----------
Total liabilities 1,925 1,074 -- -- 65,758
----------- ----------- ----------- ----------- -----------
Net assets available for plan benefits $ 826,616 $ 461,243 $ 462,782 $ 3,039,934 $31,738,276
----------- ----------- ----------- ----------- -----------
</TABLE>
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, 1997
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
MUTUAL FUNDS
COLLECTIVE IDS NEW
INCOME FUND IDS SELEC- IDS MUTUAL DIMENSION
II TIVE FUND FUND FUND
ASSETS
<S> <C> <C> <C> <C>
Investments, at fair value (Note 4) $ 2,079,071 $ 1,409,589 $ 3,659,765 $10,199,525
Cash and cash equivalents 16,939 11,941 26,917 74,107
Interfund/receivable(payable) 1,479 998 1,892 4,796
----------- ----------- ----------- -----------
Total assets $ 2,097,489 $ 1,422,528 $ 3,688,574 $10,278,428
----------- ----------- ----------- -----------
LIABILITIES
Contribution refunds payable (Note 2) 7,816 5,301 13,745 38,301
----------- ----------- ----------- -----------
Total liabilities 7,816 5,301 13,745 38,301
----------- ----------- ----------- -----------
Net assets available for plan benefits $ 2,089,673 $ 1,417,227 $ 3,674,829 $10,240,127
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED NON-PARTICIPANT
DIRECTED
MUTUAL FUNDS
IDS STOCK AIM CONSTEL- TEMPLETON PARTICIPANT WPC COMMON
FUND LATION FUND FOREIGN FUND LOANS STOCK FUND TOTAL
ASSETS
<S> <C> <C> <C> <C> <C> <C>
Investments, at fair value (Note 4) $ 4,060,886 $ 556,154 $ 433,510 $ 386,597 $ 3,292,773 $26,077,870
Cash and cash equivalents 31,848 9,784 5,487 11,058 69,007 257,088
Interfund/receivable(payable) 1,799 81 13 (11,058) -- --
----------- ----------- ----------- ----------- ----------- -----------
Total assets $ 4,094,533 $ 566,019 $ 439,010 $ 386,597 $ 3,361,780 $26,334,958
----------- ----------- ----------- ----------- ----------- -----------
LIABILITIES
Contribution refunds payable (Note 2) 15,258 2,109 1,636 -- -- 84,166
----------- ----------- ----------- ----------- ----------- -----------
Total liabilities 15,258 2,109 1,636 -- -- 84,166
----------- ----------- ----------- ----------- ----------- -----------
Net assets available for plan benefits $ 4,079,275 $ 563,910 $ 437,374 $ 386,597 $ 3,361,780 $26,250,792
=========== =========== =========== =========== =========== ===========
</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, 1998
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
MUTUAL FUNDS
COLLECTIVE IDS SELECTIVE IDS MUTUAL IDS NEW IDS STOCK AIM CONSTEL-
INCOME FUND II FUND FUND DIMENSION FUND FUND LATION FUND
ADDITIONS:
Investment income:
<S> <C> <C> <C> <C> <C> <C>
Net appreciation/(depreciation) in fair
value of investments $ 130,361 $ 15,353 ($ 190,678) $ 2,178,057 $ 399,511 $ 104,398
Interest and dividends -- 102,282 542,088 774,327 425,234 20,223
------------ ------------ ------------ ------------ ------------ ------------
$ 130,361 $ 117,635 $ 351,410 $ 2,952,384 $ 824,745 $ 124,621
------------ ------------ ------------ ------------ ------------ ------------
Contributions:
Participant contributions 234,190 157,626 399,596 1,103,518 478,037 148,604
Employer contributions -- -- -- -- -- --
Participant rollovers 134 15,076 16,663 38,053 13,004 5,138
------------ ------------ ------------ ------------ ------------ ------------
234,324 172,702 416,259 1,141,571 491,041 153,742
Interfund transfers 158,017 67,968 (95,030) 269,415 129,641 41,285
------------ ------------ ------------ ------------ ------------ ------------
Total additions $ 522,702 $ 358,305 $ 672,639 $ 4,363,370 $ 1,445,427 $ 319,648
------------ ------------ ------------ ------------ ------------ ------------
DEDUCTIONS:
Participant benefits paid 178,144 119,097 269,880 943,334 281,512 51,309
Participant contribution refunds 5,641 3,821 9,452 31,684 12,161 1,925
------------ ------------ ------------ ------------ ------------ ------------
Total deductions $ 183,785 $ 122,918 $ 279,332 $ 975,018 $ 293,673 $ 53,234
------------ ------------ ------------ ------------ ------------ ------------
LOAN ACTIVITY:
Loans to participants (27,540) (29,312) (45,579) (110,831) (35,863) (5,883)
Repayments on loans 20,973 17,242 36,084 87,252 26,427 2,175
------------ ------------ ------------ ------------ ------------ ------------
Net loan activity (6,567) (12,070) (9,495) (23,579) (9,436) (3,708)
------------ ------------ ------------ ------------ ------------ ------------
Net increase(decrease) 332,350 223,317 383,812 3,364,773 1,142,318 262,706
Net assets at beginning of year $ 2,089,673 $ 1,417,227 $ 3,674,829 $ 10,240,127 $ 4,079,275 $ 563,910
------------ ------------ ------------ ------------ ------------ ------------
Net assets at end of year $ 2,422,023 $ 1,640,544 $ 4,058,641 $ 13,604,900 $ 5,221,593 $ 826,616
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED NON-PARTICIPANT
DIRECTED
MUTUAL FUNDS
TEMPLETON PARTICIPANT WPC COMMON
FOREIGN FUND LOANS STOCK FUND TOTAL
ADDITIONS:
Investment income:
<S> <C> <C> <C> <C>
Net appreciation/(depreciation) in fair
value of investments ($ 66,122) -- ($ 461,399) $ 2,109,481
Interest and dividends 48,775 40,097 -- 1,953,026
------------ ------------ ------------ ------------
($ 17,347) $ 40,097 ($ 461,399) $ 4,062,507
------------ ------------ ------------ ------------
Contributions:
Participant contributions 84,832 -- -- 2,606,403
Employer contributions -- -- 984,253 984,253
Participant rollovers 2,636 -- -- 90,704
------------ ------------ ------------ ------------
87,468 -- 984,253 3,681,360
Interfund transfers 28,751 -- (600,047) ~-
------------ ------------ ------------ ------------
Total additions $ 98,872 $ 40,097 ($ 77,193) $ 7,743,867
------------ ------------ ------------ ------------
DEDUCTIONS:
Participant benefits paid 69,243 33,453 244,653 2,190,625
Participant contribution refunds 1,074 ~~~~~~- ~~~~~- 65,758
------------ ------------ ------------ ------------
Total deductions $ 70,317 $ 33,453 $ 244,653 $ 2,256,383
------------ ------------ ------------ ------------
LOAN ACTIVITY:
Loans to participants (5,692) 260,700 -- --
Repayments on loans 1,006 (191,159) -- --
------------ ------------ ------------ ------------
Net loan activity (4,686) 69,541 -- --
------------ ------------ ------------ ------------
Net increase(decrease) 23,869 76,185 (321,846) 5,487,484
Net assets at beginning of year $ 437,374 $ 386,597 $ 3,361,780 $ 26,250,792
------------ ------------ ------------ ------------
Net assets at end of year $ 461,243 $ 462,782 $ 3,039,934 $ 31,738,276
============ ============ ============ ============
</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, 1997
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
MUTUAL FUNDS
COLLECTIVE IDS SELECTIVE IDS MUTUAL IDS NEW IDS STOCK AIM CONSTEL-
INCOME FUND II FUND FUND DIMENSION FUND FUND LATION FUND
ADDITIONS:
Investment income:
<S> <C> <C> <C> <C> <C> <C>
Net change in fair value of investments $ 117,911 $ 11,797 $ 40,614 $ 1,170,035 $ 208,146 ($ 10,753)
Interest and dividends 1 97,412 524,228 761,592 561,576 39,991
------------ ------------ ------------ ------------ ------------ ------------
$ 117,912 $ 109,209 $ 564,842 $ 1,931,627 $ 769,722 $ 29,238
------------ ------------ ------------ ------------ ------------ ------------
Contributions:
Participant contributions 272,347 175,738 417,598 1,022,902 446,319 112,265
Employer contributions -- -- -- -- -- --
Participant rollovers 8,594 12,519 124,798 2,362 122,571 11,467
------------ ------------ ------------ ------------ ------------ ------------
280,941 188,257 542,396 1,025,264 568,890 123,732
Interfund transfers (146,851) (102,609) (130,760) 276,949 51,542 180,783
------------ ------------ ------------ ------------ ------------ ------------
Total additions $ 252,002 $ 194,857 $ 976,478 $ 3,233,840 $ 1,390,154 $ 333,753
------------ ------------ ------------ ------------ ------------ ------------
DEDUCTIONS:
Participant benefits paid 78,894 113,585 205,318 467,500 182,670 1,899
Participant contribution refunds 7,816 5,301 13,745 38,301 15,258 2,109
------------ ------------ ------------ ------------ ------------ ------------
Total deductions $ 86,710 $ 118,886 $ 219,063 $ 505,801 $ 197,928 $ 4,008
------------ ------------ ------------ ------------ ------------ ------------
LOAN ACTIVITY:
Loans to participants (27,367) (16,648) (66,990) (133,141) (43,262) (3,455)
Repayments on loans 30,816 15,370 35,217 55,321 23,193 712
------------ ------------ ------------ ------------ ------------ ------------
Net loan activity 3,449 (1,278) (31,773) (77,820) (20,069) (2,743)
------------ ------------ ------------ ------------ ------------ ------------
Net increase 168,741 74,693 725,642 2,650,219 1,172,157 327,002
Net assets at beginning of year $ 1,920,932 $ 1,342,534 $ 2,949,187 $ 7,589,908 $ 2,907,118 $ 236,908
------------ ------------ ------------ ------------ ------------ ------------
Net assets at end of year $ 2,089,673 $ 1,417,227 $ 3,674,829 $ 10,240,127 $ 4,079,275 $ 563,910
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED NON-PARTICIPANT
DIRECTED
MUTUAL FUNDS
TEMPLETON PARTICIPANT WPC COMMON
FOREIGN FUND LOANS STOCK FUND TOTAL
ADDITIONS:
Investment income:
<S> <C> <C> <C> <C>
Net change in fair value of investments ($ 35,111) -- $ 964,040 $ 2,466,679
Interest and dividends 44,788 26,151 -- 2,055,739
------------ ------------ ------------ ------------
$ 9,677 $ 26,151 $ 964,040 $ 4,522,418
------------ ------------ ------------ ------------
Contributions:
Participant contributions 70,485 -- -- 2,517,654
Employer contributions -- -- 945,016 945,016
Participant rollovers 54 -- -- 282,365
------------ ------------ ------------ ------------
70,539 -- 945,016 3,745,035
Interfund transfers 187,885 -- (316,939) --
------------ ------------ ------------ ------------
Total additions $ 268,101 $ 26,151 $ 1,592,117 $ 8,267,453
------------ ------------ ------------ ------------
DEDUCTIONS:
Participant benefits paid 1,291 17,574 99,699 1,168,430
Participant contribution refunds 1,636 -- -- 84,166
------------ ------------ ------------ ------------
Total deductions $ 2,927 $ 17,574 $ 99,969 $ 1,252,596
------------ ------------ ------------ ------------
LOAN ACTIVITY:
Loans to participants (237) 291,100 -- --
Repayments on loans 173 (160,802) -- --
------------ ------------ ------------ ------------
Net loan activity (64) 130,298 -- --
------------ ------------ ------------ ------------
Net increase 265,110 138,875 1,492,418 7,014,857
Net assets at beginning of year $ 172,264 $ 247,722 $ 1,869,362 $ 19,235,935
------------ ------------ ------------ ------------
Net assets at end of year $ 437,374 $ 386,597 $ 3,361,780 $ 26,250,792
============ ============ ============ ============
</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, 1998 AND 1997
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. Participants may direct their
contributions into various investment options as described below. 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
Corporation (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.
CONTRIBUTION - REFUNDS
At the end of each year, the Plan must meet a special annual IRC
nondiscrimination test, in addition to the 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 $65,758 for 1998 and $84,166 for 1997.
-6-
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
DECEMBER 31, 1998 AND 1997
NOTES TO FINANCIAL STATEMENTS
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.
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, 1998 or 1997.
PARTICIPANT LOANS
Participants may borrow from their fund accounts a minimum of $1,000 and a
maximum equal to the lesser 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
on outstanding loans ranged from 7.00% to 10.00% at December 31, 1998.
Participant repayment is usually within 5 years. Principal and interest is
paid through monthly payroll deductions.
-7-
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
DECEMBER 31, 1998 AND 1997
NOTES TO FINANCIAL STATEMENTS
3. SUMMARY OF ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The Plan's financial statements are prepared on the accrual basis of
accounting.
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, liabilities, and
changes therein, and disclosure of contingent assets and liabilities at the
date of the financial statements. Actual results could differ from these
estimates.
NET CHANGE IN FAIR VALUE OF INVESTMENTS
This plan presents in the Statement of Changes in Net Assets Available for
Plan Benefits with Fund Information the net change in fair value of
investments which consists of realized gains/losses on securities sold
during the year, income earned on the Collective Income Fund II and the WPC
Common Stock Fund and the net appreciation/depreciation investments held as
of the end of the year.
-8-
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
DECEMBER 31, 1998 AND 1997
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,
1998 1997
INVESTMENTS AT FAIR VALUE AS DETERMINED BY
QUOTED MARKET PRICE:
Mutual Funds:
<S> <C> <C>
IDS Selective Fund, 175,887 and
153,550 shares, respectively $ 1,631,173 $ 1,409,589
IDS Mutual Fund, 310,041 and
266,591 shares, respectively 4,037,969 3,659,765
IDS New Dimensions Fund, 469,704 and
427,438 shares, respectively 13,548,611 10,199,525
IDS Stock Fund, 195,047 and 166,525 shares,
respectively 5,197,994 4,060,886
AIM Constellation Fund, 26,791 and 21,082 shares,
respectively 817,665 556,154
Templeton Foreign Fund, 54,389 and 43,569 shares,
respectively 456,326 433,510
Collective Trust Funds:
American Express Trust Collective Income
Fund II, 130,596 and 119,528 shares,
respectively 2,408,453 2,079,071
----------- -----------
Total investments at fair value as determined
by quoted market price 28,098,191 22,398,500
----------- -----------
INVESTMENTS AT FAIR VALUE:
WPC Common Stock Fund, 550,162
and 520,185 shares, respectively 2,965,923 3,292,773
----------- -----------
Total investments $31,064,114 25,691,273
=========== ===========
</TABLE>
-9-
<PAGE>
WHEELING-PITTSBURGH STEEL CORPORATION
401(K) RETIREMENT SAVINGS PLAN
DECEMBER 31, 1998 AND 1997
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, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
IDENTITY OF ISSUER,BORROWER, DESCRIPTION OF INVESTMENT INCLUDING
LESSOR OR SIMILAR PARTY MATURITY DATE, RATE OF INTEREST,
COLLATERAL, PAR OR MATURITY VALUE CURRENT
COST VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
American Express American Express Trust $2,177,761 $2,408,453
Trust Co.* Collective Income Fund II,
130,596 shares
American Express IDS Selective Fund, $1,609,491 $1,631,173
Trust Co.* 175,887 Class Y shares
American Express IDS Mutual Fund, $4,065,060 $4,037,969
Trust Co.* 310,041 shares
American Express IDS New Dimensions Fund, 469,704 $9,046,266 $13,548,611
Trust Co.* Class Y shares
American Express IDS Stock Fund, $4,378,827 $5,197,994
Trust Co.* 195,047 Class Y shares
AIM Management Group AIM Constellation Fund $ 729,350 $817,665
26,791 shares
Franklin Templeton Group Templeton Foreign Fund $ 552,315 $456,326
54,389 shares
WHX Corp. * WPC Common Stock Fund, $3,252,530 $2,965,923
550,162 shares
N/A Participant Loans, interest rates $ 473,610 $473,610
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, 1998
<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> <C> <C> <C>
American Express IDS Mutual Fund
Trust Co. 80 $1,057,014 - - $1,057,014 -
American Express IDS Mutual Fund
Trust Co. 58 - $ 488,134 $ 448,487 $ 488,134 $39,647
American Express IDS New Dimensions
Trust Co. Fund 129 $2,637,524 - - $2,637,524 -
American Express IDS New Dimensions
Trust Co.Fund 76 - $1,466,455 $ 964,294 $1,466,455 $502,161
American Express IDS Stock Fund
Trust Co. 102 $1,205,644 - - $1,205,644 -
American Express IDS Stock Fund
Trust Co. 53 - $ 468,044 $ 384,276 $ 468,044 $83,768
American Express American Express Trust
Trust Co. Income Fund II 86 $1,134,383 - - $1,134,383 -
American Express American Express Trust
Trust Co.Income Fund II 62 - $ 935,393 $ 813,184 $ 935,393 $122,209
WHX Corporation WPC Stock Fund 23 $1,083,487 - - $1,083,487 -
WHX Corporation WPC Stock Fund 40 - $1,925,454 $1,733,132 $1,925,454 $192,322
American Express WPC Stock Fund
Trust Co. 70 $1,684,439 - - $1,684,439 -
American Express WPC Stock Fund 143 - $1,644,783 $1,644,783 $1,644,783 -
Trust Co.
</TABLE>
-12-
<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, 1998
<TABLE>
<CAPTION>
================================== ----------------- ------------------------ ----------------------- --------------------------
IDENTITY AND ADDRESS OF OBLIGOR ORIGINAL AMOUNT PRINCIPAL PAID DURING INTEREST PAID DURING UNPAID BALANCE AT
OF LOAN 1998 1998 12/31/98
================================== ----------------- ------------------------ ----------------------- --------------------------
<S> <C> <C> <C> <C>
Donna J. DelGuzzo 1,400 242 82 806
108 BettMar
St. Clairsville, OH 43950
- ------------------------------------------------------------------------------------------------------------------------------------
Geneviere D. Fisher 4,000 646 273 2,865
465 National Road
Wheeling, WV 26003
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Stromp 14,000 1,728 631 12,272
107 Valuska Drive
Mingo Junction, OH 43938
- ------------------------------------------------------------------------------------------------------------------------------------
Judith A. Timko 4,300 530 226 3,770
136D Orchard Drive
St. Clairsville, OH 43950
- ------------------------------------------------------------------------------------------------------------------------------------
Robert C. Wheat, Jr. 12,000 2,552 605 9,448
44 Highland Ave.
West Alexandra, PA 15376
- ------------------------------------------------------------------------------------------------------------------------------------
James G. Bronchik 1,300 427 19 873
2531 Forest Lane
Madison, IN 47250
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
IDENTITY AND ADDRESS OF OBLIGOR DETAILED DESCRIPTION OF LOAN AMOUNT OF AMOUNT OF INTEREST COLLECTION
PRINCIPAL OVERDUE OVERDUE PROCEDURES
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Donna J. DelGuzzo Date of origination: 07/31/97 23 6 -
108 BettMar Maturity date: 06/30/01
St. Clairsville, OH 43950 Interest rate: 9.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Geneviere D. Fisher Date of origination: 04/30/97 61 22 -
465 National Road Maturity date: 03/31/01
Wheeling, WV 26003 Interest rate: 9.25%
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Stromp Date of origination: 06/30/98 296 97 -
107 Valuska Drive Maturity date; 11/30/01
Mingo Junction, OH 43938 Interest Rate: 9.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Judith A. Timko Date of origination: 05/31/98 78 30 -
136D Orchard Drive Maturity date; 04/30/02
St. Clairsville, OH 43950 Interest Rate: 9.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Robert C. Wheat, Jr. Date of origination: 05/31/98 376 75 -
44 Highland Ave. Maturity date; 10/31/00
West Alexandra, PA 15376 Interest Rate: 9.5%
- ------------------------------------------------------------------------------------------------------------------------------------
James G. Bronchik Date of origination: 09/30/98 43 12 -
2531 Forest Lane Maturity date; 02/28/99
Madison, IN 47250 Interest Rate: 9.5%
====================================================================================================================================
</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 30, 1999 By: /s/ Paul J. Mooney
---------------------------
Paul J. Mooney
Executive Vice President -
Chief Financial Officer
Wheeling-Pittsburgh Steel
Corporation
Retirement Committee
<PAGE>
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 3,1999 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,
1998.
/s/ PricewaterhouseCoopers LLP
- ------------------------------
PricewaterhouseCoopers LLP
Pittsburgh, PA
June 30, 1999
