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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
[ X ] Quarterly Report Pursuant to Section 13 or
15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended March 31, 1995
or
[ ] Transition Report Pursuant to Section 13 or
15(d) of
the Securities Exchange Act of 1934
For the transition period from
__________________ to
__________________
Commission file number: 0-2536
CENTRAL STEEL AND WIRE COMPANY
(Exact name of registrant as specified in its
charter)
DELAWARE 36-0885660
(State or other jurisdiction of (I. R. S.
Employer
incorporation or organization) Identification
No.)
3000 W. 51ST STREET, CHICAGO, ILLINOIS
60632-2198
(Address of principal executive offices)
Registrant's telephone number, including area
code:
(312) 471-3800
NONE <PAGE>
(Former name, former address and former fiscal
year)
Indicate by check mark whether the registrant (1) has
filed all
reports required to be filed by Section 13 or 15(d) of
the
Securities Exchange Act of 1934 during the preceding 12
months
(or for such shorter period that the registrant was
required to
file such reports), and (2) has been subject to such
filing
requirements for the past 90 days.
Yes X No
--- ---
Indicate the number of shares outstanding of each of
the issuer's
classes of common stock, as of the latest practicable
date:
286,000 shares as of April 28, 1995. <PAGE>
PART I Financial Information
ITEM 1. Financial Statements
Central Steel and Wire Company
Condensed Statements of Earnings and
Earnings Reinvested in Business
(In millions, except shares and per share)
(Unaudited)
Three
months ended
March
31
-------------------------
1995
1994
-----------------------------------------------------------------
Net sales $ 178.9
147.7
-------------------------
Cost of Merchandise sold 132.0
107.5
Operating Expenses 17.9
15.6
Selling and administrative expenses 16.8
16.4
Interest income, net (.4)
(.4)
-------------------------
166.3
139.1
-------------------------
Earnings before income taxes 12.6
8.6
-------------------------
Income taxes:
Federal 4.2
2.8 <PAGE>
State .9
.6
-------------------------
5.1
3.4
Net earnings ($26.38 per share
in 1995 and $18.17 in 1994) 7.5
5.2
Earnings reinvested in business
at beginning of period 134.6
131.8
Dividends declared - $.50 per
share in 1995 and 1994 (.1)
(.1)
-------------------------
Earnings reinvested in business
at end of period $ 142.0
136.9
-----------------------------------------------------------------
Average number of common shares
outstanding 286,000
286,000
-----------------------------------------------------------------
See accompanying note to condensed financial
statements.
-2- <PAGE>
Condensed Statements of Cash Flow
(In millions)
(Unaudited)
Three
months ended
March
31
-------------------------
1995
1994
-----------------------------------------------------------------
Cash
Increase
(Decrease)
Operating Activities:
Net earnings $ 7.5
5.2
Depreciation 1.3
1.1
Changes in assets and liabilities 4.1
.3
-------------------------
Cash from operations 12.9
6.6
-------------------------
Financing activities
dividends declared (.1)
(.1)
-------------------------
Investing activities:
Additions to property,
plant and equipment, net (1.3)
(2.5)
-------------------------
<PAGE>
Net increase in cash
and cash-equivalents $ 11.5
4.0
-----------------------------------------------------------------
Income taxes paid $ 1.0
.5
-----------------------------------------------------------------
See accompanying note to condensed financial
statements.
-3- <PAGE>
Condensed Balance Sheets
(In millions, except shares and per share)
Mar.31,1995
Dec.31,1994
(Unaudited)
-----------------------------------------------------------------
Assets
Current assets:
Cash and cash-equivalents $ 44.5
33.0
Receivables,less allowance for
doubtful accounts of $.8 in
1995 and 1994 73.7
58.6
Inventories 104.1
111.8
Other 3.6
3.2
-------------------------
Total current assets 225.9
206.6
-------------------------
Deferred income taxes 6.7
6.7
Property, plant and equipment, at cost 154.5
153.7
Less accumulated depreciation 119.6
118.8
-------------------------
Property, plant and equipment, net 34.9
34.9
-------------------------
$ 267.5
248.2
-----------------------------------------------------------------<PAGE>
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 98.1
89.4
Accrued expenses 4.8
5.9
Income taxes 4.1
-------------------------
Total current liabilities 107.0
95.3
-------------------------
Accrued postretirement health benefits 16.3
16.1
Stockholders' equity:
Common stock, $5 par value per share.
Authorized 287,000 shares
in 1995 and 1994;
issued and outstanding
286,000 shares in 1995 and 1994 1.4
1.4
Capital in excess of par value .8
.8
Earnings reinvested in business 142.0
134.6
-------------------------
Total stockholders' equity 144.2
136.8
-------------------------
$ 267.5
248.2
-----------------------------------------------------------------
-4- <PAGE>
Note to condensed financial statements - The
preceding
financial information is stated in conformity with
generally
accepted accounting principles and is unaudited, but in
the
opinion of management includes all adjustments
necessary,
consisting of normal accruals, for a fair statement of
the
operating results for these periods. Interim inventory
values
are based on management's estimate of year-end LIFO
inventory
values under current operating conditions and the
general state
of the economy as it relates to the steel industry, in
particular. See also notes to financial statements in
the
Annual Report on Form 10-K for the year ended December
31, 1994
filed with the Securities and Exchange Commission.
ITEM 2. Management's Discussion and Analysis of
Financial
Condition and Results of Operations
The information in this item should be read
together with
the information incorporated by reference into Item 7,
"Management's Discussion and Analysis of Financial
Condition and
Results of Operations," of the Company's Annual Report
on Form
10-K for the year ended December 31, 1994.
Operating Results
Sales for the three months ended March 31, 1995
were $178.9
million, an increase of 21% from the three months ended
March 31,
1994. The increase in sales for the three months was
due to
higher average selling prices.
Operating, selling and administrative expenses for
the three <PAGE>
months ended March 31, 1995 were $34.7 million, an
increase of 8%
from the three months ended March 31, 1994. Operating,
selling
and administrative expenses are relatively fixed and
accordingly
do not change in the same ratio with sales.
Interest income was unchanged at $.4 million for
the quarter
ended March 31, 1995 and for the first quarter of the
prior year.
Net earnings for the three months ended March 31,
1995 were
$7.5 million compared to $5.2 million for the first
quarter of
the prior year. The increase in earnings was due to
the
operating elements discussed above.
-5- <PAGE>
Liquidity and Capital Resources
The Company's liquidity remains strong with the
Company's
operations providing the funds needed for working
capital and
capital expenditures. Funds in excess of current
business needs
are invested in cash-equivalents. The Company
continued to
remain debt free for the three months ended March 31,
1995 and
for the foreseeable future expects funding requirements
to be met
without external financing.
It is the Company's policy to continue to make
such
expenditures on property, plant and equipment as are
necessary to
keep its facilities among the most modern in the
industry. The
Company does not anticipate any material changes in
expenditures
for these purposes from the levels of the last several
years.
PART II. Other Information
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibit 27 - Financial Data Schedule
(b) Form 8-K was not required to be filed
during the
three months ended March 31, 1995.
-6- <PAGE>
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act
of 1934, the Registrant has duly caused this report to
be signed
on its behalf by the undersigned thereunto duly
authorized.
CENTRAL STEEL AND WIRE
COMPANY
(Registrant)
Date: 4/28/95 /s/ Frank A. Troike
-----------------------------------
Frank A. Troike
Executive Vice President
Date: 4/28/95 /s/ Richard P. Ugolini
-----------------------------------
Richard P. Ugolini
Comptroller (Chief
Accounting
Officer)
<PAGE>
-7- <PAGE>
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act
of 1934, the Registrant has duly caused this report to
be signed
on its behalf by the undersigned thereunto duly
authorized.
CENTRAL STEEL AND WIRE
COMPANY
(Registrant)
Date ________
Frank A. Troike
Executive Vice President
Date ________
Richard P. Ugolini
Comptroller (Chief Accounting
Officer)
<PAGE>
8 <PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE QUARTERLY REPORT ON FORM 10-Q AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<EXCHANGE-RATE> 1
<CASH> 44,500
<SECURITIES> 0
<RECEIVABLES> 74,500
<ALLOWANCES> 800
<INVENTORY> 104,100
<CURRENT-ASSETS> 225,900
<PP&E> 154,500
<DEPRECIATION> 119,600
<TOTAL-ASSETS> 267,500
<CURRENT-LIABILITIES> 107,000
<BONDS> 0
<COMMON> 1,400
0
0
<OTHER-SE> 142,800
<TOTAL-LIABILITY-AND-EQUITY> 267,500
<SALES> 178,900
<TOTAL-REVENUES> 178,900
<CGS> 132,000
<TOTAL-COSTS> 132,000
<OTHER-EXPENSES> 17,900
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 12,600
<INCOME-TAX> 5,100
<INCOME-CONTINUING> 7,500
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,500
<EPS-PRIMARY> 26.38
<EPS-DILUTED> 26.38
<PAGE>
</TABLE>
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