<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
/X/ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1993
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 1-5725
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
Quanex Corporation Employee Savings Plan
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Quanex Corporation
1900 West Loop South, Suite 1500
Houston, Texas 77027
Phone: (713) 961-4600
<PAGE> 2
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 on its behalf by the
undersigned hereunto duly authorized.
DATE
----------------------------------
<PAGE> 3
Deloitte & Touche
Suite 2300 Telephone: (713) 756-2000
333 Clay Street Facsimile: (713) 756-2001
Houston, Texas 77002-4196
INDEPENDENT AUDITORS' REPORT
The Benefits Committee
Quanex Corporation
Houston, Texas
RE: Quanex Corporation Employee Savings Plan
We have audited the accompanying statements of net assets available for
benefits of the Quanex Corporation Employee Savings Plan (the "Plan") as of
December 31, 1993 and 1992, and the related statements of changes in net assets
available for benefits for the years then ended. 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 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 present fairly, in all material
respects, the net assets available for benefits of the Plan as of December 31,
1993 and 1992, and the changes in net assets available for benefits for the
years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental
information by fund and supplemental schedules of (1) investments as of December
31, 1993 and (2) 5% reportable transactions for the year ended December 31,
1993 are presented for the purpose of additional analysis of the basic
financial statements rather than to present information regarding the net assets
available for benefits and changes in net assets available for benefits of the
individual funds. This informtion and these schedules are not a required part
of the basic financial statements. The schedules 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. This
supplemental information and these schedules are the responsibility of the
Plan's management. Such supplemental information and schedules have been
subjected to the auditing procedures applied in our audit of the basic
financial statements and, in our opinion, are fairly stated in all material
respects when considered in relation to the basic financial statements
taken as a whole.
/s/ Deloitte & Touche
- - - - - ------------------------------
April 26, 1994
<PAGE> 4
QUANEX CORPORATION EMPLOYEE SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE
FOR BENEFITS
<TABLE>
<CAPTION>
December 31,
---------------------------
1993 1992
----------- -----------
<S> <C> <C>
Assets:
Investments, at fair value:
Mutual fund assets $20,540,650 $17,570,623
Quanex common stock 919,891 609,487
----------- -----------
21,460,541 18,180,110
----------- -----------
Deposits with insurance company,
at contract value 1,631,963 2,143,329
----------- -----------
Total 23,092,504 20,323,439
----------- -----------
Contributions receivable:
Employer 93,572 88,453
Employee 333,161 286,411
----------- -----------
Total 426,733 374,864
----------- -----------
Net assets available for benefits $23,519,237 $20,698,303
=========== ===========
</TABLE>
See notes to financial statements.
2
<PAGE> 5
QUANEX CORPORATION EMPLOYEE SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
Year Ended
December 31,
--------------------------
1993 1992
----------- -----------
<S> <C> <C>
Investment income:
Interest and dividends $ 1,494,799 $ 1,424,362
Net appreciation (depreciation) in
fair value of investments 872,527 (429,098)
----------- -----------
Total 2,367,326 995,264
----------- -----------
Contributions:
Employer 815,869 864,885
Less forfeitures 13,061 34,913
----------- -----------
802,808 829,972
Employee 2,873,550 2,909,438
----------- -----------
Total 3,676,358 3,739,410
----------- -----------
Total additions 6,043,684 4,734,674
----------- -----------
Benefit payments 2,741,106 2,623,867
Transfer of Bellville assets 481,644
----------- -----------
Total deductions 3,222,750 2,623,867
----------- -----------
Increase in net assets available for benefits 2,820,934 2,110,807
Net assets available for benefits:
Beginning of year 20,698,303 18,587,496
----------- -----------
End of year $23,519,237 $20,698,303
=========== ===========
</TABLE>
See notes to financial statements.
3
<PAGE> 6
QUANEX CORPORATION EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1993 AND 1992
A. THE PLAN
The following brief description of the Quanex Corporation Employee Savings Plan
(the "Plan") is provided for general information purposes only. Participants
should refer to the Plan Agreement for more complete information.
(1) GENERAL. The Plan became effective April 1, 1986 and is sponsored by
Quanex Corporation (the "Company"). The Plan is a defined contribution
plan which is subject to the Employee Retirement Income Security Act
of 1974 ("ERISA"). The Plan is a voluntary savings plan in which
employees of the Company and its subsidiaries, who are not covered by a
collective bargaining agreement, are eligible to participate after
completing three months of active service. The assets of the Plan are
held in trust by Fidelity Management Trust Company (the "Trustee").
The Benefits Committee (the "Committee"), appointed by the Board of
Directors of the Company, serves as the Plan administrator.
(2) CONTRIBUTIONS. Participants may elect to contribute up to 15% of
their pre-tax annual compensation or up to 10% of their after-tax
annual compensation limited to 15% of considered compensation as
defined by the Plan agreement. The Company matches 50% of the
employee's contribution up to, but not in excess of, 2.5% of the
employee's annual compensation.
(3) PARTICIPANT ACCOUNTS. Each participant's account is credited with
the participant's contribution, the Company's matching contribution,
and an allocation of investment income, which is based on the
participant's account balance as of the end of the period in which
the income was earned.
(4) INVESTMENT OPTIONS. The Plan has seven investment funds managed by the
Trustee, as follows:
Government Money Market Fund--composed of short-term government
obligations.
Short-Intermediate Government Fund--invested and reinvested in
securities issued by the U.S. government.
Puritan Fund--invested and reinvested in common and preferred stock
and bonds.
Magellan Fund--invested and reinvested in equity and debt
securities of foreign and domestic companies.
Growth and Income Fund--invested and reinvested in equity and debt
securities of foreign and domestic companies.
Overseas Fund--invested and reinvested in foreign securities.
Quanex Common Stock Fund--invested and reinvested in common stock
of Quanex Corporation.
Additionally, the Plan has investments in a series of guaranteed
investment contracts. Refer to Note C for further discussion.
The Short-Intermediate Government Fund replaced the Intermediate
Bond Fund during January 1993.
4
<PAGE> 7
(5) VESTING. Participants are immediately vested in their voluntary
contributions and the related earnings. Vesting in employer's matching
contributions for employees is 0% for less than one year of service
graduating to 100% for five or more years. Upon death, retirement, or
total permanent disability, the participant or beneficiary becomes
immediately 100% vested in the employer's contribution. In the event of
termination, nonvested portions of employer's contributions are
immediately forfeited by participants and utilized to reduce future
employer matching contributions.
(6) PAYMENT OF BENEFITS. Upon termination of service, the
participant may elect to receive a lump-sum amount equal to the amount
of vested benefits in his or her account. Benefits payable as of
December 31, 1993 and 1992 were $131,106 and $239,816, respectively.
See further discussion of benefits payable in Note H.
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(1) ACCOUNTING BASIS. The financial statements are prepared on the
accrual basis of accounting.
(2) ADMINISTRATIVE EXPENSES. From inception of the Plan through 1988,
the Company reimbursed the Plan for all administrative expenses.
During 1989, the Plan began paying its own recordkeeping expenses.
All other administrative expenses were paid by the Company. Effective
April 1, 1991, with the appointment of the Trustee, the Company began
paying the recordkeeping fees.
(3) INVESTMENT VALUATION. The Plan recognizes net appreciation or
depreciation in the fair value of its investments. Investments are
reflected at fair value in the financial statements. Fair value for
mutual funds is determined using a quoted net asset value. Fair value
for Quanex common stock, which is listed on the New York Stock
Exchange, is determined using the last recorded sales price.
C. DEPOSITS WITH INSURANCE COMPANY
On December 1, 1988, the Plan entered into a series of guaranteed
investment contracts with Metropolitan Life Insurance Company
("Metropolitan") for the Fixed Income Fund. The contracts provide a
guaranteed rate of return on principal invested which is credited to the
Plan for the length of the contracts. The contracts are charged for Plan
withdrawals. The contract is included in the financial statements at the
December 31, 1993 and 1992 contract values as reported to the Plan by
Metropolitan. The remaining contracts mature between January 1, 1994 and
January 1, 1995 and provide an interest rate of 8.3%
D. TRANSFER OF BELLVILLE BALANCES
In April 1993, the Company sold its Bellville Tube Division. Effective
November 15, 1993, Bellville Tube employees' plan balances were transferred
from the Plan into the Bellville Tube Corporation's 401(k) Plan, which was
implemented by the purchasing company. At the time of transfer,
participants became fully vested in the employer's contributions.
E. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the
right under the Plan to terminate the Plan subject to the provisions of
ERISA. In the event of termination of the Plan, the assets held by the
Trustee under the Plan will be valued and fully vested, and each participant
will be entitled to distributions respecting his or her account.
5
<PAGE> 8
F. FEDERAL INCOME TAX STATUS
The Plan is subject to specific rules and regulations related to employee
benefit plans under the Department of Labor and the Internal Revenue
Service ("IRS"). The Plan is intended to be qualified under Section 401(a)
of the Internal Revenue Code (the "Code") and is intended to be exempt from
taxation under Section 501(a) of the Code. The Plan received a favorable
determination letter from the IRS dated February 25, 1991. The Company
believes that the Plan is currently designed and being operated in
compliance with the applicable requirements of the Code. Therefore, it
believes that the Plan was qualified and the related trust was tax-exempt
as of the financial statement dates.
G. RELATED PARTY TRANSACTIONS
During the years ended December 31, 1993 and 1992, the Plan purchased
shares of Quanex common stock, as shown below:
<TABLE>
<CAPTION>
1993 1992
---------------- ----------------
Shares Cost Shares Cost
------ ---- ------ ----
<S> <C> <C> <C>
36,374 $603,737 31,054 $670,995
</TABLE>
During the years ended December 31, 1993 and 1992, the Plan sold 15,299 and
2,358 shares of Quanex common stock for $272,777 (cost $262,551) and
$49,714 (cost $55,484), respectively.
During the years ended December 31, 1993 and 1992, the Plan purchased
shares of Fidelity, the Trustee, mutual fund assets, as shown below:
<TABLE>
<CAPTION>
1993 1992
------------------ ------------------
Shares Cost Shares Cost
------ ---- ------ ----
<S> <C> <C> <C>
2,689,355 $11,188,872 4,620,633 $10,045,549
</TABLE>
During the years ended December 31, 1993 and 1992, the Plan sold 4,275,504
and 4,342,930 shares of Fidelity mutual fund assets for $9,111,570 (cost
$8,961,201) and $5,713,179 (cost $5,702,006), respectively.
H. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
Benefits payable are not reported as a liability on the statement of net
assets available for benefits in the financial statements prepared in
conformity with generally accepted accounting principles. Such amounts are
reported as a liability on Form 5500. See reconciliation of the financial
statements to Form 5500 below:
<TABLE>
<CAPTION>
December 31,
-------------------------
1993 1992
----------- -----------
<S> <C> <C>
Net assets available for benefits per
financial statements $23,519,237 $20,698,303
Less: Benefits payable 131,106 239,816
----------- -----------
Net assets available for benefits per
Form 5500 $23,388,131 $20,458,487
=========== ===========
</TABLE>
For the year ended December 31, 1993, benefit payments recorded in the
financial statements totalled $2,741,106. Benefit payments recorded in
Form 5500 totalled $2,632,396.
6
<PAGE> 9
I. SUBSEQUENT EVENTS
Effective March 1994, the Plan added the Fidelity Balanced Fund and the
Fidelity Contrafund as investment options. The Fidelity Balanced Fund invests
in common and preferred stocks and bonds. The Fidelity Contrafund invests in
equities of foreign and domestic companies.
7
<PAGE> 10
J. ALLOCATION OF NET ASSETS AVAILABLE FOR PLAN BENEFITS TO INVESTMENT PROGRAMS
The following tables provide supplemental information regarding the net
assets available for benefits by investment fund.
<TABLE>
<CAPTION>
December 31, 1993
-----------------------------------------------------------------------------------------------------------------
SHORT-
GOVERN- INTER- GUARAN-
MENT MEDIATE INTER- GROWTH QUANEX TEED
MONEY GOVERN- MEDIATE AND COMMON INVEST-
MARKET MENT BOND PURITAN INCOME MAGELLAN OVERSEAS STOCK MENT
TOTAL FUND FUND FUND FUND FUND FUND FUND FUND CONTRACT
----------- ---------- ---------- ---------- ---------- -------- ---------- --------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at
fair value:
Mutual fund
assets $20,540,650 $7,465,156 $1,866,521 $ 0 $3,755,717 $779,550 $5,673,694 $1,000,012
Quanex common
stock 919,891 $919,891
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ----------
21,460,541 7,465,156 1,866,521 0 3,755,717 779,550 5,673,694 1,000,012 919,891
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ----------
Deposits with
insurance
company, at
contract value 1,631,963 $1,631,963
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ----------
Total 23,092,504 7,465,156 1,866,521 0 3,755,717 779,550 5,673,694 1,000,012 919,891 1,631,963
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ----------
Contributions
receivable:
Employer 93,572 27,460 9,505 0 16,758 4,056 26,378 5,634 3,781 0
Employee 333,161 89,670 33,481 0 64,132 15,352 99,732 19,211 11,583 0
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ----------
Total 426,733 117,130 42,986 0 80,890 19,408 126,110 24,845 15,364 0
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ----------
Net assets
available
for benefits $23,519,237 $7,582,286 $1,909,507 $ 0 $3,836,607 $798,958 $5,799,804 $1,024,857 $935,255 $1,631,963
=========== ========== ========== ========== ========== ======== ========== ========== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
December 31, 1992
-----------------------------------------------------------------------------------------------------------------
SHORT-
GOVERN- INTER- GUARAN-
MENT MEDIATE INTER- GROWTH QUANEX TEED
MONEY GOVERN- MEDIATE AND COMMON INVEST-
MARKET MENT BOND PURITAN INCOME MAGELLAN OVERSEAS STOCK MENT
TOTAL FUND FUND FUND FUND FUND FUND FUND FUND CONTRACT
----------- ---------- ---------- ---------- ---------- -------- ---------- --------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at
fair value:
Mutual fund
assets $17,570,623 $9,200,742 $ 0 $2,035,486 $2,243,448 $ 0 $3,591,873 $ 499,074
Quanex common
stock 609,487 $609,487
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ----------
18,180,110 9,200,742 0 2,035,486 2,243,448 0 3,591,873 499,074 609,487
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ----------
Deposits with
insurance
company, at
contract value 2,143,329 $2,143,329
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ----------
Total 20,323,439 9,200,742 0 2,035,486 2,243,448 0 3,591,873 499,074 609,487 2,143,329
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ----------
Contributions
receivable:
Employer 88,453 33,808 24 14,027 13,756 193 20,482 4,185 1,978 0
Employee 286,411 107,334 98 46,675 44,442 762 68,484 12,872 5,744 0
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ----------
Total 374,864 141,142 122 60,702 58,198 955 88,966 17,057 7,722 0
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ----------
Net assets
available
for benefits $20,698,303 $9,341,884 $ 122 $2,096,188 $2,301,646 $ 955 $3,680,839 $ 516,131 $617,209 $2,143,329
=========== ========== ========== ========== ========== ======== ========== ========== ======== ==========
</TABLE>
<PAGE> 11
K. ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
TO INVESTMENT PROGRAMS
The following tables provide supplemental information regarding the
change in net assets available for benefits by investment fund.
<TABLE>
<CAPTION>
December 31, 1993
-----------------------------------------------------------------------------------------------------------------
SHORT-
GOVERN- INTER- GUARAN-
MENT MEDIATE INTER- GROWTH QUANEX TEED
MONEY GOVERN- MEDIATE AND COMMON INVEST-
MARKET MENT BOND PURITAN INCOME MAGELLAN OVERSEAS STOCK MENT
TOTAL FUND FUND FUND FUND FUND FUND FUND FUND CONTRACT
----------- ---------- ---------- ---------- ---------- -------- ---------- --------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment
income:
Interest and
dividends $ 1,494,799 $ 242,417 $ 113,265 $ 11,105 $ 420,772 $ 34,859 $ 498,628 $ 14,892 $25,455 $ 133,406
Net appreciation
(depreciation)
in fair value
of investments 872,527 0 (15,455) 24,539 153,277 38,296 482,545 209,881 (20,556) 0
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- --------
Total 2,367,326 242,417 97,810 35,644 574,049 73,155 981,173 224,773 4,899 133,406
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- --------
Contributions:
Employer 815,869 277,867 100,865 0 137,965 22,842 208,675 40,308 27,332 15
Less
forfeitures 13,061 5,234 1,655 308 1,947 0 2,691 481 335 410
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- --------
802,808 272,633 99,210 (308) 136,018 22,842 205,984 39,827 26,997 (395)
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- --------
Employee 2,873,550 895,669 409,868 0 495,052 103,595 751,804 134,342 83,156 64
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- --------
3,676,358 1,168,302 509,078 (308) 631,070 126,437 957,788 174,169 110,153 (331)
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- --------
Total 6,043,684 1,410,719 606,888 35,336 1,205,119 199,592 1,938,961 398,942 115,052 133,075
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- --------
Benefit payments 2,741,106 1,352,528 229,747 20,412 335,033 70,208 410,331 63,707 69,176 189,964
Transfer of
Bellville assets 481,644 193,575 43,764 0 56,990 0 110,231 18,530 31,258 27,296
Fund transfers 0 (1,622,860) 1,576,009 (2,111,405) 721,080 688,619 700,438 192,020 303,281 (427,182)
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ---------
Increase in
net assets
available
for benefits 2,820,934 (1,758,244) 1,909,386 (2,096,481) 1,534,176 798,003 2,118,837 508,725 317,899 (511,367)
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ---------
Net assets
available
for benefits:
Beginning of
year 20,698,303 9,340,532 122 2,096,481 2,302,432 953 3,680,969 516,132 617,210 2,143,472
----------- ---------- ---------- ---------- ---------- -------- ---------- ---------- -------- ----------
End of year $23,519,237 $7,582,286 $1,909,508 $ 0 $3,836,608 $798,956 $5,799,806 $1,024,857 $935,109 $1,632,105
=========== ========== ========== ========== ========== ======== ========== ========== ======== ==========
</TABLE>
<PAGE> 12
K. ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
TO INVESTMENT PROGRAMS
(Continued)
<TABLE>
<CAPTION>
December 31, 1993
-----------------------------------------------------------------------------------------------------------------
SHORT-
GOVERN- INTER- GUARAN-
MENT MEDIATE INTER- GROWTH QUANEX TEED
MONEY GOVERN- MEDIATE AND COMMON INVEST-
MARKET MENT BOND PURITAN INCOME MAGELLAN OVERSEAS STOCK MENT
TOTAL FUND FUND FUND FUND FUND FUND FUND FUND CONTRACT
----------- ---------- ---------- ---------- ---------- -------- ---------- --------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment
income:
Interest and
dividends $ 1,424,362 $ 346,876 $ 0 $ 130,412 $ 189,841 $ 0 $ 464,441 $ 54,267 $ 8,013 $ 230,512
Net appreciation
(depreciation)
in fair value
of investments (429,098) 0 0 (30,263) 47,914 0 (243,956) (117,635) (85,158) 0
----------- ---------- -------- ---------- ---------- -------- ---------- -------- -------- ----------
Total 995,264 346,876 0 100,149 237,755 0 220,485 (63,368) (77,145) 230,512
----------- ---------- -------- ---------- ---------- -------- ---------- -------- -------- ----------
Contributions:
Employer 864,885 349,474 24 127,676 130,610 192 193,005 47,210 16,694
Less
forfeitures 34,913 23,835 0 2,508 2,247 0 1,746 838 489 3,250
----------- ---------- -------- ---------- ---------- -------- ---------- -------- -------- ----------
829,972 325,639 24 125,168 128,363 192 191,259 46,372 16,205 (3,250)
Employee 2,909,438 1,135,444 98 447,767 441,284 761 679,205 153,163 51,716 0
----------- ---------- -------- ---------- ---------- -------- ---------- -------- -------- ----------
3,739,410 1,461,083 122 572,935 569,647 953 870,464 199,535 67,921 (3,250)
----------- ---------- -------- ---------- ---------- -------- ---------- -------- -------- ----------
Total 4,734,674 1,807,959 122 673,084 807,402 953 1,090,949 136,167 (9,224) 227,262
----------- ---------- -------- ---------- ---------- -------- ---------- -------- -------- ----------
Benefit payments 2,623,867 1,694,874 0 164,511 200,059 0 135,047 33,659 12,391 383,326
Fund transfers 0 (49,740) 0 411,508 573,978 0 819,243 (52,223) 561,167 (2,263,933)
----------- ---------- -------- ---------- ---------- -------- ---------- -------- -------- ----------
Increase in
net assets
available
for benefits 2,110,807 63,345 122 920,081 1,181,321 953 1,775,145 50,285 539,552 (2,419,997)
----------- ---------- -------- ---------- ---------- -------- ---------- -------- -------- ----------
Net assets
available
for benefits:
Beginning of
year 18,587,496 9,277,187 0 1,176,400 1,121,111 0 1,905,824 465,847 77,658 4,563,469
----------- ---------- -------- ---------- ---------- -------- ---------- -------- -------- ----------
End of year $20,698,303 $9,340,532 $ 122 $2,096,481 $2,302,432 $ 953 $3,680,969 $516,132 $617,210 $2,143,472
=========== ========== ======== ========== ========== ======== ========== ======== ======== ==========
</TABLE>
<PAGE> 13
Item 27a - Schedule of Assets Held for Investment Purposes
EIN: 38-1872178; PN: 012
QUANEX CORPORATION EMPLOYEE SAVINGS PLAN
SUPPLEMENTAL SCHEDULE OF INVESTMENTS
DECEMBER 31,1993
<TABLE>
<CAPTION>
Shares/ Cost of Current
Par Value Acquisition Value
--------- ----------- -----------
<S> <C> <C> <C>
Mutual fund assets:
- - - - - -------------------
Fidelity Investments Government Money Market Fund* 7,465,156 $ 7,465,156 $ 7,465,156
Fidelity Investments Short-Intermediate Government Fund* 188,919 1,881,922 1,866,521
Fidelity Investments Puritan Fund* 238,458 3,595,443 3,755,717
Fidelity Investments Growth and Income Fund* 35,083 750,110 779,550
Fidelity Investments Magellan Fund* 80,080 5,411,605 5,673,694
Fidelity Investments Overseas Fund* 36,457 901,909 1,000,012
----------- -----------
Total mutual fund assets 20,006,145 20,540,650
----------- -----------
Common stock:
- - - - - -------------
Quanex Corporation* 52,943 1,015,602 919,891
----------- -----------
Deposits with insurance company:
- - - - - --------------------------------
Metropolitan Life Guaranteed Investment Contract N/A 1,631,963 1,631,963
----------- -----------
Total investments $22,653,710 $23,092,504
=========== ===========
</TABLE>
* Party-in-Interest
<PAGE> 14
Item 27d - Schedule of Reportable (5%) Transactions
EIN: 38-1872178; PN: 012
QUANEX CORPORATION EMPLOYEE SAVINGS PLAN
SUPPLEMENTAL SCHEDULE OF 5% REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31,1993
Single Transactions
<TABLE>
<CAPTION>
Current Value
of Asset on Net
Purchase Selling Cost of Transaction Gain or
Description of Assets Price Price Asset Date (Loss)
---------------------- --------- ------- ------- ----------- -------
<S> <C> <C> <C> <C> <C>
Mutual Fund Assets:
Fidelity Investments*:
Short-Intermediate Government Fund $1,986,796 $1,986,796
Intermediate Bond Fund $1,980,290 $1,942,721 1,980,290 $37,569
</TABLE>
Series of Transactions
<TABLE>
<CAPTION> Total
Number of Total Current Value Net
Purchases Number of of Asset on Gain
During Purchase Sales During Selling Transaction or
Description Plan Year Price Plan Year Price Cost of Asset Date (Loss)
----------- ---------- -------- ------------ ------- ------------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Mutual Fund Assets:
Fidelity Investments
Government Money Market Fund 181 $2,154,423 $2,154,423
240 $3,889,653 $3,889,653 3,889,653 --
Short-intermediate Government Fund 133 3,001,606 3,001,606
124 1,119,629 1,119,683 1,119,629 $ (54)
Intermediate Bond Fund 11 72,853 72,853
12 2,132,878 2,093,751 2,132,878 39,127
Puritan Fund 116 2,032,041 2,032,041
84 673,050 613,307 673,050 59,743
Growth and Income Fund 90 904,864 904,864
19 163,610 154,754 163,610 8,856
Magellan Fund 120 2,535,981 2,535,981
94 936,703 891,528 936,703 45,175
</TABLE>
- - - - - ----------------
*Party-in-Interest
<PAGE> 15
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER
<S> <C>
23.1 Independent Auditor's Consent
</TABLE>
<PAGE> 1
EXHIBIT 23.1
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement
No. 33-38702 of Quanex Corporation on Form S-8 of our report dated April 26,
1994, appearing in this Annual Report on Form 11-K of Quanex Corporation
Employee Savings Plan for the year ended December 31, 1993.
/s/ Deloitte & Touche
- - - - - ------------------------------
DELOITTE & TOUCHE
Houston, Texas
June 27, 1994
