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Previous: QUANEX CORP, 11-K, 1995-06-30 |
Next: QUANEX CORP, 11-K, 1995-06-30 |
<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, 1994
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
INDEPENDENT AUDITORS' REPORT
The Benefits Committee
Quanex Corporation
Houston, Texas
Re: Quanex Corporation Employee Savings Plan
We have audited the accompanying statement of net assets available for benefits
of the Quanex Corporation Employee Savings Plan (the "Plan") as of December 31,
1994 and 1993, 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
from material misstatements. 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, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of December 31,
1994 and 1993, 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, 1994 and (2) 5% reportable transactions for the year ended
December 31, 1994 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 information 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
Regulation 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 LLP
May 17, 1995
<PAGE> 3
QUANEX CORPORATION EMPLOYEE SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE
FOR BENEFITS
<TABLE>
<CAPTION>
December 31,
-----------------------------
1994 1993
----------- -----------
<S> <C> <C>
Assets:
Investments, at fair value -
Mutual fund assets $23,280,069 $20,540,650
Quanex Corporation common stock 1,418,636 919,891
Common/commingled trust 471,972 -
----------- -----------
25,170,677 21,460,541
----------- -----------
Deposits with insurance company,
at contract value 896,472 1,631,963
----------- -----------
Total 26,067,149 23,092,504
----------- -----------
Employee contributions receivable 450,534 333,161
Employer contributions receivable 150,335 93,572
----------- -----------
Total 600,869 426,733
----------- -----------
Net assets available for benefits $26,668,018 $23,519,237
=========== ===========
</TABLE>
See notes to financial statements.
<PAGE> 4
QUANEX CORPORATION EMPLOYEE SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS
<TABLE>
<CAPTION>
December 31,
------------------------------
1994 1993
----------- -----------
<S> <C> <C>
Investment income:
Interest and dividends $ 1,203,950 $ 1,494,799
Net appreciation (depreciation) in
fair value of investments (532,717) 872,527
----------- -----------
Total 671,233 2,367,326
----------- -----------
Contributions:
Employer 892,899 815,869
Less forfeitures 9,282 13,061
----------- -----------
883,617 802,808
Employee 3,231,908 2,873,550
----------- -----------
Total 4,115,525 3,676,358
----------- -----------
Total additions 4,786,758 6,043,684
----------- -----------
Benefit payments 1,637,977 2,741,106
Transfer of Bellville assets - 481,644
----------- -----------
Total deductions 1,637,977 3,222,750
----------- -----------
Increase in net assets available
for benefits 3,148,781 2,820,934
Net assets available for benefits:
Beginning of year 23,519,237 20,698,303
----------- -----------
End of year $26,668,018 $23,519,237
=========== ===========
</TABLE>
See notes to financial statements.
<PAGE> 5
QUANEX CORPORATION
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1994 AND 1993
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, excluding its Nichols-Homeshield divisions,
its Nitro Steel Division and those Quanex employees who are
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 15% 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) Participants 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 is earned.
(4) Investment Options. During 1993 and 1994, the Plan had the
following investment funds, all 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 Corporation Common Stock--invested and reinvested
exclusively in the common stock of Quanex Corporation.
Common/Commingled Trust--invested and reinvested in investment
contracts issued by insurance companies, banks and other
financial institutions.
Balanced Fund--invested and reinvested in common and preferred
stocks and bonds.
Contrafund--invested and reinvested in equities of foreign and
preferred stock.
<PAGE> 6
Additionally, the Plan has investments in a series of guaranteed
investment contracts. Refer to Note C for further discussion.
Effective July 1, 1994, the Short-Intermediate Government Fund was
eliminated and the Common/Commingled Trust, the Balanced Fund and the
Contrafund were added.
(1) 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.
(2) 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. See
further discussion of benefits payable in Note H.
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(1) Accounting Basis. The financial statements of the Plan are
prepared on the accrual basis of accounting in accordance with
generally accepted accounting standards.
(2) 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 of mutual funds assets is determined
using a quoted net asset value. Fair value for Quanex
Corporation common stock, which is listed on the New York
Stock Exchange, is determined using the last recorded sales
price.
(3) Administrative Expenses. The Company pays all administrative
expenses.
(4) Payment of Benefits. Benefits are recorded when paid.
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"). 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 reduced for Plan withdrawals. The
contract is included in the financial statements at the December 31,
1994 and 1993 contract values as reported to the Plan by Metropolitan.
A portion of these contracts matured on January 1, 1994. The
remainder of these contracts matured on January 1, 1995. The
contracts provided an interest rate of 8.3% per annum.
<PAGE> 7
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.
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 a qualified Trust under Sections
401(a) and 401(k) of the Internal Revenue Code (the "Code") and, as a
result, is exempt from taxation under Sections 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 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, 1994 and 1993, the Plan purchased
shares of Quanex Corporation common stock, as shown below:
<TABLE>
<CAPTION>
1994 1993
---- ----
Shares Cost Shares Cost
------ ---- ------ ----
<S> <C> <C> <C>
29,219 $632,545 36,374 $603,737
</TABLE>
During the years ended December 31, 1994 and 1993, the Plan sold
20,146 and 15,299 shares of Quanex Corporation common stock for
$574,779 (cost $470,005) and $272,777 (cost $262,551), respectively.
During the years ended December 31, 1994 and 1993, the Plan purchased
shares of Fidelity, the Trustee, mutual fund assets, as shown below:
<TABLE>
<CAPTION>
1994 1993
---- ----
Shares Cost Shares Cost
------ ---- ------ ----
<S> <C> <C> <C>
5,226,865 $12,369,613 2,689,355 $10,701,768
</TABLE>
<PAGE> 8
During the years ended December 31, 1994 and 1993, the Plan sold
3,738,549 and 4,275,504 shares of Fidelity mutual fund assets for
$9,480,794 (cost $9,567,946) and $8,915,523 (cost $8,726,676),
respectively.
During the year ended December 31, 1994, the Plan purchased 471,972
shares (cost $471,972) of Fidelity, the Trustee, Common/Commingled
Trust. During the year ended December 31, 1994, the Plan sold -0-
shares of Common/Commingled Trust.
H. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
Benefits payable are not reported as a liability on the statement of
net assets available for the 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,
--------------------------------
1994 1993
----------- -----------
<S> <C> <C>
Net assets available for benefits per
financial statements $26,668,018 $23,519,237
Less: Benefits payable 152,480 131,106
----------- -----------
Net assets available for benefits per
Form 5500 $26,515,538 $23,388,131
=========== ===========
</TABLE>
For the years ended December 31, 1994 and 1993, benefit payments
recorded in the financial statements totaled $1,637,977 and
$2,741,106, respectively. Benefit payments recorded in Form 5500 for
1994 and 1993 totaled $1,659,351 and $2,632,396, respectively.
<PAGE> 9
I. ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
The following tables provide supplemental information regarding the net
assets available for benefits by investment fund.
<TABLE>
<CAPTION>
December 31, 1994
- ------------------------------------------------------------------------------------------------------------------------------------
GOVT. GROWTH
MONEY COMMON\ AND
MARKET COMMINGLED PURITAN BALANCED INCOME MAGELLAN
TOTAL FUND TRUST FUND FUND FUND FUND
----------- ---------- ---------- ---------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
Investments, at fair value
Mutual fund assets $23,280,069 $8,981,007 $4,833,853 $111,318 $1,135,850 $6,361,895
Quanex common stock 1,418,636
Common/commingled trust 471,972 $471,972
----------- ---------- -------- ---------- -------- ---------- ----------
25,170,677 8,981,007 471,972 4,833,853 111,318 1,135,850 6,361,895
Deposits with insurance company,
at contract value 896,472
----------- ---------- -------- ---------- -------- ---------- ----------
Total 26,067,149 8,981,007 471,972 4,833,853 111,318 1,135,850 6,361,895
Contributions receivable
Employer 150,335 49,284 1,669 31,642 782 7,071 42,009
Employee 450,534 140,921 4,975 95,547 3,059 23,019 127,824
----------- ---------- -------- ---------- -------- ---------- ----------
600,869 190,205 6,644 127,189 3,841 30,090 169,833
----------- ---------- -------- ---------- -------- ---------- ----------
Net assets available
for benefits $26,668,018 $9,171,212 $478,616 $4,961,042 $115,159 $1,165,940 $6,531,728
=========== ========== ======== ========== ======== ========== ==========
<CAPTION>
December 31, 1994
- ---------------------------------------------------------------------------------------------
QUANEX GUARANTEED
OVERSEAS CONTRA- COMMON INVESTMENT
FUND FUND STOCK CONTRACT
---------- -------- ---------- ----------
<S> <C> <C> <C> <C>
Assets
Investments, at fair value
Mutual fund assets $1,573,029 $283,117
Quanex common stock $1,418,636
Common/commingled trust
---------- -------- ---------- --------
1,573,029 283,117 1,418,636
Deposits with insurance company,
at contract value $896,472
---------- -------- ---------- --------
Total 1,573,029 283,117 1,418,636 896,472
Contributions receivable
Employer 9,814 2,634 5,430
Employee 29,916 9,087 16,186
---------- -------- ---------- --------
39,730 11,721 21,616
---------- -------- ---------- --------
Net assets available
for benefits $1,612,759 $294,838 $1,440,252 $896,472
========== ======== ========== ========
</TABLE>
<TABLE>
<CAPTION>
December 31, 1993
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-
GOVT. INTER- INTER- GROWTH
MONEY MEDIATE MEDIATE AND
MARKET GOVT. BOND PURITAN INCOME MAGELLAN
TOTAL FUND FUND FUND FUND FUND FUND
----------- ---------- ---------- ------- ---------- -------- ----------
<S> <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
Quanex common stock 919,891
----------- ---------- ---------- -- ---------- -------- ----------
21,460,541 7,465,156 1,866,521 0 3,755,717 779,550 5,673,694
----------- ---------- ---------- -- ---------- -------- ----------
Deposits with insurance company,
at contract value 1,631,963 0
----------- ---------- ---------- -- ---------- -------- ----------
Total 23,092,504 7,465,156 1,866,521 0 3,755,717 779,550 5,673,694
Contributions receivable
Employer 93,572 27,460 9,505 0 16,758 4,056 26,378
Employee 333,161 89,670 33,481 0 64,132 15,352 99,732
----------- ---------- ---------- -- ---------- -------- ----------
426,733 117,130 42,986 0 80,890 19,408 126,110
----------- ---------- ---------- -- ---------- -------- ----------
Net assets available
for benefits $23,519,237 $7,582,286 $1,909,507 $0 $3,836,607 $798,958 $5,799,804
=========== ========== ========== == ========== ======== ==========
<CAPTION>
December 31, 1994
- -------------------------------------------------------------------------------
QUANEX GUARANTEED
OVERSEAS COMMON INVESTMENT
FUND STOCK CONTRACT
---------- -------- ----------
<S> <C> <C> <C>
Assets
Investments, at fair value
Mutual fund assets $1,000,012
Quanex common stock $919,891
---------- -------- ----------
1,000,012 919,891
---------- -------- ----------
Deposits with insurance company,
at contract value $1,631,963
---------- -------- ----------
Total 1,000,012 919,891 1,631,963
Contributions receivable
Employer 5,634 3,781
Employee 19,211 11,583
---------- -------- ----------
24,845 15,364
---------- -------- ----------
Net assets available
for benefits $1,024,857 $935,255 $1,631,963
========== ======== ==========
</TABLE>
<PAGE> 10
J. ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT
PROGRAMS
The following tables provide supplemental information regarding the change
in net assets available for benefits by investment funds.
<TABLE>
<CAPTION>
December 31, 1994
- ------------------------------------------------------------------------------------------------------------------------------------
GOVT. GROWTH
MONEY QUANEX COMMON/ AND
MARKET COMMON COMMINGLED BALANCED INCOME PURITAN
TOTAL FUND STOCK TRUST FUND FUND FUND
----------- ---------- ---------- ---------- -------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Interest and dividends $1,203,950 $322,411 $32,478 $9,681 $1,392 $79,632 $367,819
Net appreciation (depreciation)
in fair value of investments (532,717) 0 336,205 0 (4,503) (64,531) (314,702)
----------- ---------- ---------- -------- -------- ----------- ----------
Total 671,233 322,411 368,683 9,681 (3,111) 15,101 53,117
----------- ---------- ---------- -------- -------- ----------- ----------
Contributions:
Employer 892,899 289,207 36,017 4,498 2,406 40,048 172,350
Less forfeitures (9,282) (2,291) (1,304) 0 0 (292) (1,373)
----------- ---------- ---------- -------- -------- ----------- ----------
883,617 286,916 34,713 4,498 2,406 39,756 170,977
Employee 3,231,908 933,609 122,880 17,621 9,944 165,518 618,173
----------- ---------- ---------- -------- -------- ----------- ----------
4,115,525 1,220,525 157,593 22,119 12,350 205,274 789,150
----------- ---------- ---------- -------- -------- ----------- ----------
Total Additions 4,786,758 1,542,936 526,276 31,800 9,239 220,375 842,267
Benefit payments 1,637,977 844,938 107,585 0 0 12,479 106,709
Fund transfers 0 890,928 86,306 446,816 105,920 159,086 388,877
----------- ---------- ---------- -------- -------- ----------- ----------
Increase in
net assets available 3,148,781 1,588,926 504,997 478,616 115,159 366,982 1,124,435
Net assets available for benefits:
Beginning of year 23,519,237 7,582,286 935,255 0 0 798,958 3,836,607
----------- ---------- ---------- -------- -------- ----------- ----------
End of year $26,668,018 $9,171,212 $1,440,252 $478,616 $115,159 $1,165,940 $4,961,042
=========== ========== ========== ======== ======== =========== ==========
<CAPTION>
December 31, 1994
- -----------------------------------------------------------------------------------------------------
SHORT- GUARAN-
INTER- TEED
MEDIATE INVEST-
MAGELLAN OVERSEAS CONTRA- GOVT. MENT
FUND FUND FUND FUND CONTRACT
---------- ---------- -------- ---------- ---------
<S> <C> <C> <C> <C> <C>
Investment income:
Interest and dividends $244,743 $27,339 $47,663 $70,792
Net appreciation (depreciation)
in fair value of investments (374,571) (29,474) $1,910 (83,051) 0
---------- ---------- -------- ---------- ---------
Total (129,828) (2,135) 1,910 (35,388) 70,792
---------- ---------- -------- ---------- ---------
Contributions:
Employer 249,308 60,741 6,245 32,079 0
Less forfeitures (2,687) (985) 0 (216) (134)
---------- ---------- -------- ---------- ---------
246,621 59,756 6,245 31,863 (134)
Employee 931,840 233,420 22,885 176,018 0
---------- ---------- -------- ---------- ---------
1,178,461 293,176 29,130 207,881 (134)
---------- ---------- -------- ---------- ---------
Total Additions 1,048,633 291,041 31,040 172,493 70,658
Benefit payments 303,081 47,678 0 160,139 55,368
Fund transfers (13,628) 344,539 263,798 (1,921,861) (750,781)
---------- ---------- -------- ---------- ---------
Increase in
net assets available 731,924 587,902 294,838 (1,909,507) (735,491)
Net assets available for benefits:
Beginning of year 5,799,804 1,024,857 0 1,909,507 1,631,963
---------- ---------- -------- ---------- ---------
End of year $6,531,728 $1,612,759 $294,838 $0 $896,472
========== ========== ======== ========== =========
</TABLE>
<PAGE> 11
J. ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT
PROGRAMS
(continued)
<TABLE>
<CAPTION>
December 31, 1993
-----------------------------------------------------------------------------------------
SHORT-
GOVT. INTER- INTER- GROWTH
MONEY MEDIATE MEDIATE AND
MARKET GOVT. BOND PURITAN INCOME MAGELLAN
TOTAL FUND FUND FUND FUND FUND FUND
----------- ---------- ---------- ---------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Interest and dividends $1,494,799 $242,415 $113,264 $11,105 $420,771 $34,861 $498,626
Net appreciation (depreciation)
in fair value of investments 872,527 0 (15,455) 24,539 153,277 38,296 482,545
----------- ---------- ---------- ---------- ---------- -------- ----------
Total 2,367,326 242,415 97,809 35,644 574,048 73,157 981,171
----------- ---------- ---------- ---------- ---------- -------- ----------
Contributions:
Employer 815,869 277,867 100,865 0 137,965 22,842 208,675
Less forfeitures 13,061 5,234 1,655 308 1,947 0 2,691
----------- ---------- ---------- ---------- ---------- -------- ----------
802,808 272,633 99,210 (308) 136,018 22,842 205,984
Employee 2,873,550 895,669 409,868 0 495,052 103,595 751,804
----------- ---------- ---------- ---------- ---------- -------- ----------
3,676,358 1,168,302 509,078 (308) 631,070 126,437 957,788
----------- ---------- ---------- ---------- ---------- -------- ----------
Total Additions 6,043,684 1,410,717 606,887 35,336 1,205,118 199,594 1,938,959
Benefit payments 2,741,106 1,352,528 229,747 20,412 335,033 70,208 410,331
Transfer of Bellville assets 481,644 193,575 43,764 0 56,990 0 110,231
Fund transfers 0 (1,622,860) 1,576,009 (2,111,405) 721,080 668,619 700,438
----------- ---------- ---------- ---------- ---------- -------- ----------
Increase in net assets
available for benefits 2,820,934 (1,758,246) 1,909,385 (2,096,481) 1,534,175 798,005 2,118,835
Net assets available of benefits:
Beginning of year 20,698,303 9,340,532 122 2,096,481 2,302,432 953 3,680,969
----------- ---------- ---------- ---------- ---------- -------- ----------
End of year $23,519,237 $7,582,286 $1,909,507 $0 $3,836,607 $798,958 $5,799,804
=========== ========== ========== ========== ========== ======== ==========
<CAPTION>
GUARAN-
QUANEX TEED
COMMON INVEST-
OVERSEAS STOCK MENT
FUND FUND CONTRACT
---------- -------- ----------
<S> <C> <C> <C>
Investment income:
Interest and dividends $14,892 $25,455 $133,410
Net appreciation (depreciation)
in fair value of investments 209,881 (20,556) 0
---------- -------- ----------
Total 224,773 4,899 133,410
---------- -------- ----------
Contributions:
Employer 40,308 27,332 15
Less forfeitures 481 335 410
---------- -------- ----------
39,827 26,997 (395)
Employee 134,342 83,156 64
---------- -------- ----------
174,169 110,153 (331)
---------- -------- ----------
Total Additions 398,942 115,052 133,079
Benefit payments 63,707 69,176 189,964
Transfer of Bellville assets 18,530 31,258 27,296
Fund transfers 192,020 303,427 (427,328)
---------- -------- ----------
Increase in net assets
available for benefits 508,725 318,045 (511,509)
Net assets available of benefits:
Beginning of year 516,132 617,210 2,143,472
---------- -------- ----------
End of year $1,024,857 $935,255 $1,631,963
========== ======== ==========
</TABLE>
<PAGE> 12
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, 1994
<TABLE>
<CAPTION>
Shares/ Current
Par Value Cost Value
--------- -------- -------
<S> <C> <C> <C>
Mutual fund assets - Fidelity Investments:
- ------------------------------------------
Contrafund* 9,350 $ 279,727 $ 283,117
Government Money Market Fund* 8,981,007 8,981,007 8,981,007
Puritan Fund* 326,391 4,994,234 4,833,853
Growth and Income Fund* 53,857 1,166,378 1,135,850
Magellan* 95,238 6,465,121 6,361,895
Overseas Fund* 57,620 1,526,260 1,573,029
Balanced Fund* 9,058 114,605 111,318
------------ -------------
Total Mutual Fund Assets 23,527,332 23,280,069
------------ -------------
Quanex Corporation Common stock* 62,017 1,282,916 1,418,636
Common/Commingled Trust* 471,972 471,972 471,972
Deposits with insurance company:
- --------------------------------
Metropolitan Life Guaranteed Investment Contract 896,472 896,472
------------ -------------
Total investments $ 26,178,692 $ 26,067,149
============ =============
</TABLE>
* Party-in-Interest
<PAGE> 13
Item 27d - Schedule of Reportable (5%) Transactions EIN 38-1872178; PN 012
QUANEX CORPORATION SAVINGS PLAN
SUPPLEMENTAL SCHEDULE OF 5% REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1994
Series of Transactions
<TABLE>
<CAPTION>
Current
Total Number of Total Number Value on Net
Purchases During Purchase of Sales During Selling Cost of Transaction Gain
Description Plan Year Price Plan Year Price Asset Date (Loss)
- ----------- ---------------- --------- ---------------- ------- ------- ------------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Metropolitan Life
Short-term Fund 14 $801,039 $801,039 $801,039 0
FMTC Government Reserve 33 $808,655
47 813,903 813,903 813,903 0
Quanex Corporation Common Stock 48 632,545
29 574,779 470,005 574,779 $104,774
Puritan Fund 105 1,915,582
53 528,727 522,774 528,727 5,953
Magellan Fund 126 2,223,009
67 1,150,981 1,160,237 1,150,981 (9,256)
Growth & Income Fund 80 701,703
29 276,311 280,873 276,311 (4,562)
Overseas Fund 102 886,928
34 306,295 284,436 306,295 21,859
</TABLE>
<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, 1994
Series of Transactions
(continued)
<TABLE>
<CAPTION>
Current
Total Number of Total Number Value on Net
Purchases During Purchase of Sales During Selling Cost of Transaction Gain
Description Plan Year Price Plan Year Price Asset Date (Loss)
- ----------- ------------ --------- ------------- ------- ------- ------------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Contrafund 21 $335,425
34 $52,740 $54,219 $52,740 $(1,479)
Balanced Fund 21 143,799
1 26,764 27,979 26,764 (1,215)
Government Money Market Fund 141 4,956,048
135 3,440,552 3,440,552 3,440,552 0
Common/Commingled Trust 29 471,972
0 0 0 0 0
Short Intermediate
Government Fund 58 398,464
47 2,083,482 2,181,934 2,083,482 (98,452)
</TABLE>
<PAGE> 15
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 6/26/95 /s/ Joseph K. Peery
---------------------------------- Joseph K. Peery
<PAGE> 16
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 May 17,
1995, appearing in this Annual Report on Form 11-K of Quanex Corporation
Employee Savings Plan for the year ended December 31, 1994.
/s/ Deloitte & Touche LLP
- ------------------------------
DELOITTE & TOUCHE LLP
Houston, Texas
June 29, 1994
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