FORM 10Q - QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10Q
(X) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the period ended March 31, 1996
( ) 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: 1-8676
FANSTEEL INC.
(Exact name of registrant as specified in its charter)
Delaware 36-1058780
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
Number One Tantalum Place, North Chicago, IL 60064
(Address of principal executive offices) (Zip Code)
(847) 689-4900
(Registrant's telephone number, including area code)
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
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.
(X) Yes ( ) No
8,598,858
(Number of shares of $2.50 par value common stock outstanding
as of April 30, 1996)
PART 1 - FINANCIAL INFORMATION Form 10-Q
ITEM 1 - FINANCIAL STATEMENTS Page 2
FANSTEEL INC.
CONSOLIDATED BALANCE SHEET
March 31, December 31,
1996 1995
ASSETS (Unaudited) *
Current Assets
Cash and cash equivalents (including
securities purchased under agreement
to resell of $2,001,000 in 1996 and
$4,796,000 in 1995) $ 5,009,207 $ 6,838,960
Marketable securities 3,126,548 2,072,902
Accounts receivable - net 17,846,938 14,305,629
Inventories
Raw material and supplies 3,659,834 3,850,864
Work-in-process 12,483,721 11,610,410
Finished goods 5,676,567 5,942,269
21,820,122 21,403,543
Less reserve to state certain
inventories at LIFO cost 6,888,236 6,888,236
14,931,886 14,515,307
Other assets - current
Deferred income taxes 1,475,991 1,452,160
Other 1,296,555 1,002,076
Total current assets 43,687,125 40,187,034
Net Assets of Discontinued Operations 1,769,917 1,344,591
Property, Plant and Equipment
Land 1,337,641 1,337,641
Buildings 9,513,093 9,396,838
Machinery and equipment 45,450,779 45,019,335
56,301,513 55,753,814
Less accumulated depreciation 45,984,644 45,533,604
10,316,869 10,220,210
Other Assets
Marketable securities 12,597,245 13,608,993
Prepaid pension asset 7,706,808 7,709,808
Deferred income taxes 162,505 227,317
Property held for sale 1,200,837 1,200,837
Other 53,063 31,063
21,720,458 22,778,018
Total Assets $77,494,369 $74,529,853
* - Derived from audited financial statements
(See Notes to Consolidated Financial Statements)
PART 1 - FINANCIAL INFORMATION Form 10-Q
ITEM 1 - FINANCIAL STATEMENTS Page 3
FANSTEEL INC.
CONSOLIDATED BALANCE SHEET (Contd.)
March 31, December 31,
1996 1995
(Unaudited) *
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $10,530,306 $ 9,162,757
Accrued liabilities 8,432,659 8,391,200
Accrued income taxes 1,176,265 694,247
Current maturities of long-term debt 77,207 77,207
Total current liabilities 20,216,437 18,325,411
Long-term Debt 292,046 297,906
Other Liabilities
Discontinued operations 3,500,000 3,500,000
Deferred income taxes 1,471,404 1,374,911
Obligations under capital leases - 8,638
Total other liabilities 4,971,404 4,883,549
Shareholders' Equity
Preferred stock without par value
Authorized and unissued 1,000,000 shares - -
Common stock, par value $2.50
Authorized 12,000,000 shares
Issued and outstanding 8,598,858 shares 21,497,145 21,497,145
Unrealized gain on marketable securities 7,601 16,398
Retained earnings 30,509,736 29,509,444
52,014,482 51,022,987
Total Liabilities and Shareholders' Equity $77,494,369 $74,529,853
* - Derived from audited financial statements
(See Notes to Consolidated Financial Statements)
FANSTEEL INC. Form 10-Q
CONSOLIDATED STATEMENT OF INCOME Page 4
(UNAUDITED)
For the Three Months Ended
March 31, March 31,
1996 1995
Net sales $ 28,939,111 $ 25,649,004
Costs and expenses
Cost of products sold 24,034,364 20,753,940
Selling, general and administrative 3,496,801 3,401,363
27,531,165 24,155,303
Operating income 1,407,946 1,493,701
Other income (expense)
Interest income on investments 253,459 303,884
Other (9,113) (32,865)
244,346 271,019
Income before income taxes 1,652,292 1,764,720
Income tax provision 652,000 689,000
Net income $ 1,000,292 $ 1,075,720
Weighted average number of common
shares outstanding 8,598,858 8,598,858
Net income per share
(on average shares outstanding) $0.12 $0.13
Dividends per common share $ - $0.10
(See Notes to Consolidated Financial Statements)
FANSTEEL INC. Form 10-Q
CONSOLIDATED STATEMENT OF CASH FLOWS Page 5
(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31,
1996 1995
Increase (decrease) in
cash and cash equivalents
Cash flows from operating activities:
Net income $ 1,000,292 $ 1,075,720
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Depreciation 451,040 529,142
Net pension charge (credit) 3,000 (6,000)
Deferred income tax charge 137,474 155,718
Changes in assets and liabilities:
(Increase) in marketable securities (50,695) (35,101)
(Increase) in accounts receivable (3,541,309) (1,251,593)
(Increase) decrease in inventories (416,579) 571,667
(Increase) decrease in other assets -
current (294,479) 134,407
Increase (decrease) in accounts payable
and accruals 1,427,354 (927,394)
Increase in income taxes payable 482,018 832,942
(Increase) in other assets (22,000) -
Net cash (used in) provided by operating
activities (823,884) 1,079,508
Cash flows from investing activities:
Additions to property, plant and equipment (547,699) (655,410)
Design and engineering for processing plant (425,326) -
Proceeds from disposition of marketable
securities - current 5,000,000 -
Investment in marketable securities - current (5,000,000) -
Net cash (used in) investing activities (973,025) (655,410)
Cash flows from financing activities:
Proceeds from long-term debt - 125,000
Payments of long-term debt (5,860) -
Principal payments for capital leases (26,984) (25,376)
Dividends paid - (859,886)
Net cash (used in) financing activities (32,844) (760,262)
Net (decrease) in cash and cash equivalents (1,829,753) (336,164)
Cash and cash equivalents at beginning of
period 6,838,960 9,429,031
Cash and cash equivalents at March 31 $ 5,009,207 $ 9,092,867
(See Notes to Consolidated Financial Statements)
FANSTEEL INC. Form 10-Q
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Page 6
(UNAUDITED)
Consolidated Financial Statements
The consolidated balance sheet at March 31, 1996, and the consolidated
statements of income and cash flows for the three months ended March 31, 1996
and 1995, are unaudited, but include all adjustments (consisting only of normal
and recurring accruals) which the Company considers necessary for fair
presentation.
The accompanying consolidated financial statements do not include all
disclosures normally provided in annual financial statements and, therefore,
should be read in conjunction with the year-end financial statements.
Effective January 1, 1994, the Company adopted Financial Accounting Standards
Board (FASB) Statement No. 115, "Accounting for Certain Investments in Debt and
Equity Securities." The Company has determined its securities to be "held-to-
maturity" or "available-for-sale" securities, depending upon the applicable
security. Marketable securities with a maturity date of one year or less at
time of purchase are classified as current, and over one year maturity date at
time of purchase are classified as non-current on the balance sheet.
Securities classified as available-for-sale at March 31, 1996 include U.S.
government securities, municipal bonds and commercial paper with maturity dates
from April 1, 1996 to September 30, 1998. Net unrealized holding gains included
in shareholders' equity at March 31, 1996 are $8,000, consisting of gross
unrealized gains of $12,000 net of tax. The aggregate fair value of these
securities at March 31, 1996 is $5,533,000. Amortized cost of U.S. government
securities, municipal bonds and commercial paper available for sale at March 31,
1996 is $3,767,000, $1,254,000 and $500,000, respectively.
Securities classified as held-to-maturity at March 31, 1996 represent U.S.
Treasury Notes with maturity dates of January 31, 1997 and April 30, 1998.
Amortized cost and fair value of these securities at March 31, 1996 are
$9,983,000 and $9,966,000, respectively. There was a gross unrealized loss on
these securities of $17,000 at March 31, 1996.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
FANSTEEL INC. Form 10-Q
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT.) Page 7
(UNAUDITED)
Business Segment Information
The Company is engaged in the manufacture of specialty metal products, which
it classifies into two business segments: Industrial Tools and Metal
Fabrications. Net sales and operating income for the first quarter ended March
31, 1996 and 1995 for each of the Company's business segments are summarized
below:
1996 1995
Net Sales:
Industrial Tools -
Sales $ 14,060,831 $ 12,501,132
Intersegment sales (239) -
14,060,592 12,501,132
Metal Fabrications
Sales 14,886,973 13,155,943
Intersegment sales (8,454) (8,071)
14,878,519 13,147,872
$ 28,939,111 $ 25,649,004
Operating Income:
Industrial Tools $ 777,804 $ 879,107
Metal Fabrications 645,226 617,352
Corporate (15,084) (2,758)
$ 1,407,946 $ 1,493,701
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS Form 10-Q
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Page 8
The following Management's Discussion and Analysis of Financial Condition and
Results of Operations may contain various "forward looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, which represent
the Company's expectations or beliefs concerning future events. The Company
cautions that such statements are qualified by important factors that could
cause actual results to differ materially from those in the forward looking
statements. Results actually achieved thus may differ materially from expected
results included in these statements.
Quarter Ended March 31, 1996 Compared to Quarter Ended March 31, 1995
Net sales for the quarter ended March 31, 1996 were $28,939,000, an increase
of $3,290,000 or 12.8% from first quarter, 1995 net sales of $25,649,000.
Industrial Tools business segment net sales for the first quarter of 1996 were
$14,060,000 compared to $12,501,000 for the same period of 1995, an increase of
$1,559,000 or 12.5%. Tungsten carbide cutting tools product lines, primarily
tungsten carbide rod, were responsible for this increase. Customer recognition
of premium quality, delivery and service at competitive prices has increased
market share, in particular for tungsten carbide rod. While tungsten carbide
rod has performed strongly for several quarters and is expected to do so for the
near term, the expansion of low price Chinese suppliers into the U.S. market may
eventually force adjustments in price and/or marketing strategy. Sales of
tungsten carbide inserts declined due to an uncertain economy and the
discontinuing of promotional offers upon introduction of the VR/Notch insert.
Construction tools sales increased 43.3% with expansion into Japanese and
Mexican markets, and an increasing presence in the eastern U.S. market. Growth
of this product line is anticipated as the Company continues to promote price
competitive, quality machined road planing tools to new distributorships. Other
wear parts also increased as a result of aggressive merchandising of pre-formed
products.
Metal Fabrications business segment net sales for the quarter ended March 31,
1996 were $14,879,000, an increase of $1,731,000 or 13.2% from first quarter,
1995 net sales of $13,148,000. Sales of forgings were up 42.2% from the prior
year as an upswing in the aircraft market had a significant impact on revenues.
Sales to commercial aircraft customers for the building of new airplanes, along
with sales for military transport and fighter planes, have spurred this
rejuvenation. Continued growth of this product line is forecasted for the near
term. Long-term success will depend on a steady build rate of new aircraft and
sales of spare parts for the planes now being built. Sand mold castings product
line net sales increased 38.3% in the current quarter due to sales of commercial
airplane cylinder heads and engine blocks, and military sales of castings for
the CH53 helicopter program. Investment castings sales declined 28.7% due to
strong price competition and a softening in the light truck sector of the
automotive market. Wire forming experienced a marginal increase in net sales
compared to the same quarter of last year.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS Form 10-Q
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Page 9
(CONT'D.)
Order backlog at March 31, 1996 was $37,388,000 compared to $27,867,000 at
March 31, 1995, an increase of $9,521,000 or 34.2%. Industrial Tools business
segment backlog was $7,754,000 at March 31, 1996, an increase of $2,922,000 or
60.5% from the same date of last year. Tungsten carbide cutting tools backlog
increased due to more customers placing annual orders for tungsten carbide
inserts, and expanding market share for tungsten carbide rod. Construction
tools backlog increased significantly. This improvement was the result of
expansion into the Japanese and Mexican markets, and the establishment of
additional distribution on the eastern seaboard. Metal Fabrications business
segment backlog at the end of the current quarter was $29,634,000, an increase
of $6,599,000 from March 31, 1995. Forgings backlog increased $6,128,000 from
March 31, 1995, an improvement of 86.3%. Orders for both commercial and
military aircraft have increased substantially within the last several months,
and such performance is forecasted to continue for the foreseeable future.
Orders of patterns for sand mold castings increased substantially which bodes
well for future business. Investment castings backlog fell 21.0% as price
competition was very keen and demand for light trucks weakened.
Cost of sales for the first three months of 1996 was $24,034,000, or 83.1% of
net sales, as compared to $20,754,000 or 80.9% of net sales for the same period
of 1995, an increase of $3,280,000. Price increases of certain raw materials,
namely tungsten, cobalt and thorium, had a negative effect on profit margins.
Scrap costs were unusually high due primarily to inefficiencies in the
production of our sand mold castings product lines which carry a
disproportionate work load of new parts development. Efforts to control costs
by identifying and correcting such inefficiencies are ongoing.
Selling, general and administrative expenses increased from $3,401,000 for the
first quarter of 1995 to $3,497,000 for the first quarter of 1996. Selling,
general and administrative expenses as a percent of net sales were 12.1% for the
first three months of 1996 and 13.3% for the same period of 1995 due to the
relationship of the fixed expense components to increased sales.
Other income for the first quarter of 1996 was $244,000, a decrease of $27,000
or 9.9% from 1995 other income of $271,000. Interest earned on marketable
securities totaled $253,000 in 1996, a decline of $50,000 from the same period
of 1995. As the Company increasingly focuses on capital expenditures, less cash
is available for investment in marketable securities.
Net income for the quarter ended March 31, 1996 was $1,000,000 or $.12 per
share compared to $1,076,000 or $.13 per share for the like period of 1995, a
decrease of $76,000.
Outlook
Improvements in the Company's production processes, new product development,
and investment in capital equipment have increased opportunities for growth,
directed primarily at commercial markets. The Company is seeking increased
share of current markets, as well as new markets, through investment in
operating units and new acquisitions. The Company has utilized, and is
constantly seeking, funding assistance on favorable terms from states and
municipalities for expansion of production capabilities. Cost control programs
remain active in all operating plans throughout the Company.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS Form 10-Q
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Page 10
(CONT'D.)
The formerly defense-dependent operating units are continuing to place primary
focus on becoming a diversified supplier to both military and commercial
markets. Capital equipment investment has been initiated and new production
techniques employed to facilitate this transition. The Company is beginning to
realize the benefits from these efforts as increased sales and orders have
materialized.
Liquidity and Capital Resources
Cash and cash equivalents amounted to $5,009,000 at March 31, 1996, a decrease
of $1,830,000 from December 31, 1995. Operations used $824,000 although net
income and depreciation provided $1,000,000 and $451,000, respectively. Working
capital needs were greater as sales and production volumes increased.
Investments in capital equipment totalled $548,000, reflecting management's
aggressive program to expand the operations of the Company.
It is expected that sufficient cash will be generated from operations to cover
normal operating requirements. If the need arises, the Company has strong,
long-term relationships with several large banking institutions.
Funding assistance by states and municipalities is investigated when any
significant expenditures are proposed. Loans were received in 1995 from State
of Iowa Development Programs for production improvements at our sand mold
casting and wire forming operations. In 1996, the State of Mississippi Business
Finance Corporation will provide development loans for expansion of one of the
Company's tungsten carbide rod producing facilities.
At March 31, 1996, the Company had $3,127,000 of current marketable securities
and $2,614,000 of non-current marketable securities, classified as available-
for-sale, invested in U.S. government securities, municipal bonds and commercial
paper. The liquidity of these securities is readily available. The non-current
marketable securities classified as held-to-maturity, with a book value of
$9,983,000 and a fair value of $9,966,000, are U.S. Treasury Notes. The intent
of the Company is to hold these notes to maturity.
At March 31, 1996, the Company had established reserves of $3,584,000 for
environmental clean-up costs for discontinued operations. The Company, in
association with outside consultants, has developed a decommissioning plan for
the site involved, and has submitted that plan and a related decommissioning
funding plan to the Nuclear Regulatory Commission ("NRC") as required by law.
Prior to decommissioning, the Company proposes to construct and operate for
approximately eight to ten years a commercial plant to complete the processing
of residues currently contained in storage ponds at the site, which would
materially reduce the amount of radioactive materials to be disposed of during
decommissioning. In conjunction with construction of the processing plant, the
Company would modify the wastewater treatment plant at the site and install a
drainage system. Decommissioning would be comprised of construction of an
engineered on-site cell for containment of contaminated soils; consolidation and
stabilization of the contaminated soils in the containment cell; and the
performance of required plant surveys and characterizations after residue
processing ceases to determine whether additional contaminated soils exist which
may require remediation.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS Form 10-Q
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Page 11
(CONT'D.)
The Company has applied for an amendment to its current NRC license and for a
revision to its current wastewater discharge permit to allow construction and
operation of the proposed processing plant, and believes that these regulatory
authorizations will be issued in the near future. Preliminary engineering,
design and feasibility studies have been completed for the proposed processing
plant, which would extract commercially valuable materials such as tantalum,
columbium, scandium and other rare earth and rare metal elements from the
feedstock residues. The Company has engaged a process design expert to confirm
the viability of the proposed plant. The estimated cost of construction is
approximately $10 million. The estimated value of materials to be extracted is
based on analysis of samples taken from the residues and a valuation of such
materials using current market prices discounted to reflect possible price
decreases, including those which could result from the increased quantities of
certain of these materials made available for sale. The estimated costs of
residue processing were developed by Company personnel and independent
consultants using third party evaluations based on the pilot testing performed.
Residue processing is expected to start approximately a year after licensing
approval is received. The provisions for discontinued operations reflect
management's belief that the current value of the extracted materials will at
least equal the estimated cost of construction and costs of processing,
including estimated costs for disposal of waste generated by the process. The
annual recovery revenues are estimated to be in a range of $2,000,000 to
$3,000,000. However, there can be no assurance as to the level of demand for
certain of the extracted materials or the actual prices which may be obtained
for them, which could vary over time.
In October 1995, the NRC advised the Company that a decommissioning funding
plan cost estimate based on construction of an on-site containment cell for
contaminated soils at the site is appropriate to consider at this time. The NRC
cautioned the Company, however, that an on-site containment cell may require
preparation of an Environmental Impact Statement and that, in addition to the
required NRC approval, local and other federal agencies may have to be satisfied
that the Company's plan is sound. Such approval process can be expected to
extend over a number of years. Management believes that a decommissioning plan
including on-site containment will ultimately be acceptable to the appropriate
regulatory authorities, based on current and proposed NRC regulations and a
provision of the Nuclear Waste Policy Act of 1982 requiring the Department of
Energy to take title to certain "special sites" which may include the Company's
site; however, there is no assurance that a plan providing for on-site
containment will ultimately be approved. Implementation of a decommissioning
plan for the Company's site which includes off-site disposal may not be
financially feasible.
The NRC's decommissioning regulations require licensees to estimate the cost
for decommissioning and to assure in advance that adequate funds will be
available to cover those costs. NRC regulations identify a number of acceptable
methods for assuring funds for decommissioning, including surety instruments
such as letters of credit, cash deposits and combinations thereof. The NRC's
October letter requested the Company to submit a decommissioning funding plan
contemplating on-site containment and stated that the cost of residue processing
should be included in the Company's cost estimate. In March 1996, the Company
submitted a revised decommissioning plan and related decommissioning funding
plan which Management believes satisfies the NRC's decommissioning regulations.
The initial level of assurance for decommissioning and construction is estimated
to be at least $15 million. This estimate assumes that the Company will not be
required to assure the operating costs of residue processing. The Company's
available cash and capacity will be reduced by the amount of funding assurance
as required at any particular time. As the decommissioning plan is implemented,
deposited funds or the amount of any surety instruments may be reduced, provided
the Company can demonstrate the sufficiency of the remaining funds or surety to
assure the completion of decommissioning.
Expenditures for environmental reclamation and decommissioning were $273,000
for the first three months of 1996. In addition, the Company expended $425,000
for design and engineering costs for the proposed processing plant.
Based upon continuing assessment of the proposed decommissioning plan, taking
into consideration the most current information, existing technology and
regulations in effect, management believes that the amounts reserved at March
31, 1996 are adequate to cover the costs of environmental clean-up for
discontinued operations and that the Company has the ability to meet the NRC's
decommissioning funding assurance requirements.
The remaining land and buildings of the Company's former PSM operation within
the Metal Fabrications business segment are carried as Other Assets - Property
held for sale. The cost of preparing the property for sale, principally
environmental clean-up, will be capitalized. Management believes that proceeds
from the sale of the property will be adequate to recover all costs, including
expenditures to prepare the property for sale. The Company believes the
reserves established for other costs associated with the close-down of PSM are
adequate.
The Company's Escast operation, located in Addison, IL, included in the Metal
Fabrications business segment, has been named as a responsible party for the
clean-up costs of certain hazardous wastes located on-site. A cost sharing
agreement with the former owner of Escast is in place for any future clean-up
expenditures. At this time, the amount of the clean-up costs is not fixed and
determinable. However, the Company believes the established reserves of
$590,000 are adequate to cover its share of the clean-up.
Environmental matters arising at other operating units are routinely reviewed
and handled through operations. The Company believes that the ultimate
disposition of any other pending environmental matters will not have a material
adverse effect upon the consolidated financial position of the Company.
Form 10-Q
Page 13
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
a) The Annual Meeting of Shareholders was held on April 24,
1996.
c) A Long-Term Incentive Compensation plan, designed to assist
in attracting and retaining highly competent employees and
to act as an incentive in motivating selected officers and
other key employees of the Company and its Subsidiaries to
achieve long-term corporate objectives, was placed before
shareholders for approval at the Annual Meeting of
Shareholders. The Long-Term Incentive Compensation plan was
defeated, with 3,301,205 votes cast for the plan, 4,140,042
votes cast against the plan, and 147,081 abstentions.
The appointment of Ernst & Young LLP as auditors of the
Company for the year ending December 31, 1996 was placed
before shareholders for ratification at the Annual Meeting
of Shareholders. The appointment of Ernst & Young LLP as
auditors of the Company was ratified with 7,571,550 votes
cast for, 7,872 votes cast against, and 8,906 abstentions.
The nominations for Directors of the Company were brought
before shareholders of the Company at the Annual Meeting of
Shareholders. The votes cast for and votes withheld for
each of the following nominees are as follows:
Votes Votes
Nominee For Withheld
B. B. Evans 7,489,585 98,743
R. S. Evans 7,488,767 99,561
T. M. Evans, Jr. 7,479,529 108,799
W. D. Jarosz 7,537,105 51,223
J. S. Petrik 7,486,483 101,845
C. J. Queenan, Jr. 7,491,783 96,545
Item 6. Exhibits and Reports on Form 8-K
b) No reports on Form 8-K were filed during the quarter ended
March 31, 1996.
Form 10-Q
Page 14
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.
Fansteel Inc.
(Registrant)
Date - 5/10/96 \s\ William D. Jarosz
William D. Jarosz
Chairman, Chief Executive Officer
and President
Date - 5/10/96 \s\ R. Michael McEntee
R. Michael McEntee
Vice President and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated balance sheet of Fansteel Inc. as of March 31, 1996 and the
related consolidated statement of operations for the three months ended
March 31, 1996 and is qualified in its entirety by reference to the
Company's Form 10Q filing for the period ended March 31, 1996.
</LEGEND>
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 5,009,207
<SECURITIES> 3,126,548
<RECEIVABLES> 18,123,378
<ALLOWANCES> 276,440
<INVENTORY> 14,931,886
<CURRENT-ASSETS> 43,687,125
<PP&E> 56,301,513
<DEPRECIATION> 45,984,644
<TOTAL-ASSETS> 77,494,369
<CURRENT-LIABILITIES> 20,216,437
<BONDS> 292,046
<COMMON> 21,497,145
0
0
<OTHER-SE> 30,517,337
<TOTAL-LIABILITY-AND-EQUITY> 77,494,369
<SALES> 28,939,111
<TOTAL-REVENUES> 28,939,111
<CGS> 24,034,364
<TOTAL-COSTS> 27,531,165
<OTHER-EXPENSES> (244,346)
<LOSS-PROVISION> (23,290)
<INTEREST-EXPENSE> 3,648
<INCOME-PRETAX> 1,652,292
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</TABLE>
