<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarter ended September 30, 1995
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 1-5210
FLORIDA STEEL CORPORATION
Incorporated - Florida Employer Identification No. 59-0792436
5100 W. Lemon Street
Tampa, Florida 33609
Mailing Address:
P. O. Box 31328
Tampa, Florida 33631-3328
Telephone No. 286-8383 - Area Code 813
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, and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
As of the date of this report, the registrant had 10,084,713 shares $.01
par value common stock outstanding.
<PAGE> 2
PART I FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
FLORIDA STEEL CORPORATION
CONDENSED STATEMENTS OF FINANCIAL POSITION
($ IN THOUSANDS)
<TABLE>
<CAPTION>
SEPTEMBER 30, MARCH 31,
1995 1995
(UNAUDITED)
------------- ---------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,593 $ 2,854
Accounts receivable, less allowance for estimated
losses ($1,100 at September 30, 1995
and $1,000 at March 31,1995) 76,763 80,360
Inventories 119,870 127,680
Deferred tax assets 10,500 11,800
Other current assets 992 750
---------- ---------
TOTAL CURRENT ASSETS 209,718 223,444
REAL ESTATE HELD FOR SALE 8,631 8,631
PROPERTY, PLANT AND EQUIPMENT 258,303 262,141
Less allowances for depreciation 35,624 31,033
---------- ---------
222,679 231,108
GOODWILL 91,968 94,033
DEFERRED FINANCING COSTS 3,962 4,504
OTHER ASSETS 9 28
---------- ---------
TOTAL ASSETS $ 536,967 $ 561,748
========== =========
</TABLE>
See notes to condensed financial statements
<PAGE> 3
FLORIDA STEEL CORPORATION
CONDENSED STATEMENTS OF FINANCIAL POSITION
($ IN THOUSANDS)
<TABLE>
<CAPTION>
SEPTEMBER 30, MARCH 31,
1995 1995
(UNAUDITED)
------------- ---------
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 35,268 $ 49,364
Salaries, wages and employee benefits 15,240 16,520
Environmental remediation 8,369 10,919
Other current liabilities 5,223 3,774
Interest payable 5,172 5,258
Current maturities of long-term borrowings 20,544 16,245
-------- --------
TOTAL CURRENT LIABILITIES 89,816 102,080
LONG-TERM BORROWINGS,
(INCLUDING NOTE PAYABLE TO PARENT OF $50,000
AT SEPTEMBER 30, 1995 AND MARCH 31, 1995, RESPECTIVELY) 230,260 243,030
OTHER LIABILITIES 18,627 18,388
DEFERRED INCOME TAXES 59,114 60,500
SHAREHOLDERS' EQUITY
Common stock, $.01 par value; 30,000,000 shares authorized
at September 30, and March 31, 1995. 10,084,713
and 10,000,000 shares outstanding at September 30,
and March 31, 1995, respectively. 101 100
Capital in excess of par 156,888 155,900
Accumulated deficit (14,539) (14,500)
Deferred compensation (3,300) (3,750)
-------- --------
TOTAL SHAREHOLDERS' EQUITY 139,150 137,750
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $536,967 $561,748
======== ========
</TABLE>
See notes to condensed financial statements.
3
<PAGE> 4
FLORIDA STEEL CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
($ IN THOUSANDS EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
SIX MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- -------------------------
1995 1994 1995 1994
Unaudited Unaudited Unaudited Unaudited
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Sales $ 326,229 $ 321,771 $ 161,018 $ 167,174
Operating expenses:
Cost of sales, excluding depreciation 273,268 279,030 136,354 138,629
Selling and administrative 14,130 15,106 7,113 8,822
Depreciation 7,286 6,861 3,652 3,212
Amortization of goodwill 2,065 2,064 1,033 1,032
Other operating expenses 15,000 - - -
--------- --------- --------- ---------
311,749 303,061 148,152 151,695
--------- --------- --------- ---------
INCOME FROM OPERATIONS 14,480 18,710 12,866 15,479
Other expenses:
Interest 12,014 11,297 5,710 5,878
Amortization of deferred financing costs 1,209 1,215 229 607
--------- --------- --------- ---------
13,223 12,512 5,939 6,485
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES 1,257 6,198 6,927 8,994
Income tax 1,296 3,115 3,105 3,781
--------- --------- --------- ---------
NET INCOME (LOSS) $ (39) $ 3,083 $ 3,822 $ 5,213
========= ========= ========= =========
Weighted average shares outstanding
(in thousands) 10,030 10,000 10,049 10,000
Earnings per common share - .31 .38 .52
</TABLE>
See notes to condensed financial statements.
4
<PAGE> 5
FLORIDA STEEL CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
($ IN THOUSANDS)
<TABLE>
<CAPTION>
SIX MONTHS ENDED SEPTEMBER 30,
1995 1994
(UNAUDITED) (UNAUDITED)
-------------- -----------
<S> <C> <C>
OPERATING ACTIVITIES
Net loss (39) 3,083
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation 7,286 6,861
Amortization 3,274 3,279
Provision for uncollectable accounts 200 400
Deferred compensation 450 300
Deferred income taxes (86) 2,843
Loss on disposition of plant and equipment 13,397 162
Changes in operating assets and liabilities:
Accounts receivable 3,397 (15,419)
Inventories 7,810 14,123
Other current assets (242) 572
Other assets 19 5
Trade accounts payable (14,096) (1,150)
Salaries, wages and employee benefits (1,280) 121
Environmental remediation (2,550) (1,110)
Other current liabilities 1,449 353
Interest payable (86) 243
Other liabilities 239 (5,760)
--------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES 19,142 8,906
INVESTING ACTIVITIES
Additions to plant and equipment (12,966) (7,726)
Proceeds from sales of plant and equipment 712 73
--------- ---------
NET CASH USED IN INVESTING ACTIVITIES (12,254) (7,653)
--------- ---------
FINANCING ACTIVITIES
Payments of short-term and long-term borrowings (8,471) (356)
Addition to deferred financing costs (667) -
Proceeds from sale of common stock 989 -
--------- ---------
NET CASH USED IN FINANCING ACTIVITIES (8,149) (356)
--------- ---------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,261) 897
Cash and cash equivalents at beginning of period 2,854 1,774
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,593 $ 2,671
========= =========
</TABLE>
See notes to condensed financial statements.
5
<PAGE> 6
FLORIDA STEEL CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOTE A - BASIS OF PRESENTATION
These financial statements include the accounts of Florida Steel Corporation
(the "Company").
The accompanying unaudited condensed financial statements have been prepared in
accordance with the instructions for Form 10-Q and, therefore, do not include
all the information or footnotes necessary for a complete presentation of
financial condition, results of operations and cash flows in conformity with
generally accepted accounting principles. However, all adjustments which, in
the opinion of management, are necessary for a fair presentation have been
included. Such adjustments consisted of only normally recurring items.
It is suggested that these condensed financial statements be read in
conjunction with the financial statements and the notes thereto included in the
Company's latest annual report on Form 10-K. The results for the six months
ended September 30, 1995 are not necessarily indicative of the results to be
expected for the fiscal year ending March 31, 1996.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business Segment: The Company is engaged in steel production and the
manufacture, fabrication and marketing of steel products, primarily for use in
construction and industrial markets.
Credit Risk: The Company extends credit, primarily on a bases of 30-day terms,
to various customers in the steel distribution, fabrication and construction
industries, primarily located in the southeastern United States. The Company
performs periodic credit evaluations of its customers and generally does not
require collateral. Credit losses, in the past, have not been significant.
Cash Equivalents: The Company considers all highly liquid investments, with a
maturity of three months or less when purchased, to be cash equivalents.
Inventories: Inventories are stated at the lower of cost (determined
principally by use of the first-in, first-out method) or market.
Real Estate Held for Sale: Real estate held for sale is carried at the lower
of cost or estimated fair value.
Plant and Equipment: Major renewals and betterments are capitalized and
depreciated over their estimated useful lives. Maintenance and repairs are
charged against operations as incurred. Upon retirement or other disposition
of plant and equipment, the cost and related allowances for depreciation are
removed from the accounts and any resulting gain or loss is reflected in
operations.
Plant start-up and other pre-operating costs of new facilities are charged
against operations as incurred. For financial reporting purposes, the Company
provides for depreciation of plant and equipment using the straight-line method
over the estimated useful lives of 20 to 30 years for buildings and
improvements and 4 to 15 years for machinery and equipment.
6
<PAGE> 7
FLORIDA STEEL CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOTE C--INVENTORIES
Inventories consist of the following:
($ in thousands)
<TABLE>
<CAPTION>
SEPTEMBER 30, MARCH 31,
1995 1995
------------- ---------
<S> <C> <C>
Finished goods $ 82,050 $ 81,375
Work in-process 12,771 21,620
Raw materials and operating supplies 25,049 24,685
--------- ---------
$ 119,870 $ 127.680
========= =========
</TABLE>
NOTE D--BORROWINGS
Long-term borrowings consist of the following:
($ in thousands)
<TABLE>
<CAPTION>
SEPTEMBER 30, MARCH 31,
1995 1995
------------- ---------
<S> <C> <C>
Credit Agreement $ 56,350 $
1992 Revolving Credit Agreement - 65,161
First Mortgage Notes 100,000 100,000
Subordinated Intercompany Note 50,000 50,000
Subordinated Debentures 13,035 13,035
Industrial Revenue Bonds 10,875 10,875
Bank of Tokyo Loan 10,000 10,000
Trade Loan Agreements 9,922 9,260
Note to Parent 622 944
--------- ---------
250,804 259,275
Less Current Maturities 20,544 16,245
--------- ---------
$ 230,260 $ 243,030
========= =========
</TABLE>
Effective June 9, 1995, the Company entered into a two-year revolving bank
agreement (the "Credit Agreement") which provides up to $140 million borrowings
subject to a "borrowing base" amount. The borrowing base amount will not
exceed the sum of 85% of eligible accounts receivable plus 65% of eligible
inventory. Letters of credit are subject to an aggregate sublimit of $50
million. The Credit Agreement contains certain covenants including financial
ratios and limitations on indebtedness, liens, investments and disposition of
assets and dividends. The Credit Agreement is collateralized by first priority
security interests in substantially all accounts receivable and inventory of
the Company. Revolving Loans under the Credit Agreement bear interest at a per
annum rate equal to one of several rate options at the discretion of the
Company plus an applicable margin determined by tests of performance from time
to time. The initial borrowing was used to pay off the 1992 Revolving Credit
Agreement.
7
<PAGE> 8
FLORIDA STEEL CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOTE D--BORROWINGS - Continued
The First Mortgage Notes were issued under an indenture (the "Indenture") as of
December 15, 1992 by and among the Company and Shawmut Bank Connecticut, N.A.,
as Trustee (the "Trustee"). The First Mortgage Notes are collateralized senior
obligations of the Company limited in aggregate principal amount to $100
million and will mature on December 15, 2000. Interest on the First Mortgage
Notes accrues at the rate of 11.5% per annum and is payable semiannually on
each June 15 and December 15.
The First Mortgage Notes are redeemable, at the option of the Company, in whole
or in part from time to time, on or after December 15, 1996 at redemption
prices (expressed as percentages of the outstanding principal amount) if
redeemed during the twelve-month period commencing on December 15 of the year
set forth below, plus, in each case, accrued interest thereon to the date of
redemption:
<TABLE>
<S> <C>
Year Percentage
---- ----------
1996 103.833%
1997 101.916%
1998 and thereafter 100.000%
</TABLE>
The First Mortgage Notes rank pari passu with respect to the payment in full of
the principal and interest on all existing and future senior indebtedness of
the Company and rank senior to all subordinated indebtedness of the Company,
including the Debentures and the Subordinated Intercompany Note described
below.
The Company has assigned and pledged as collateral (the "Collateral") to the
Trustee for the benefit of the Holders of the First Mortgage Notes a security
interest in all the real and personal property (other than inventory and
accounts receivable) of the Company's five minimills. The First Mortgage Notes
contain covenants that include, without limitation, maintenance of sufficient
consolidated net worth and limitations on additional indebtedness, transactions
with affiliates, dispositions of assets, liens, dividends and distributions.
The Company is in compliance with these covenants at September 30, 1995.
The Company has issued a $50 million note (the "Subordinated Intercompany
Note") which matures December 21, 2001, is not transferable, and is
subordinated to the First Mortgage Notes, the Credit Agreement and the IRBs.
The Subordinated Intercompany Note bears interest at variable rates. The
weighted average interest rate at September 30, 1995 was 8.1%.
As of March 28, 1994, the Company entered into a subordinated note agreement
with the Bank of Tokyo, LTD., New York Agency. The Company pays interest on
the $10 million note semiannually commencing September 28, 1994. Interest will
be computed at the six-month Eurodollar Rate plus 1.5%. (7.6% effective
September 30, 1995). This note, which matures March 28, 1996, is subordinated
to the Company's senior debt and the Company may not make payments if the
senior debt is in default until certain conditions are met.
8
<PAGE> 9
FLORIDA STEEL CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOTE D--BORROWINGS -- Continued
The Company has borrowed $5.6 million as of September 30, 1995 from Mitsubishi
International Corporation. The loan bears interest at 7.75% and matures on
December 29, 1995. The Company has also borrowed $4.3 million as of September
30, 1995 from Marubeni America Corporation. The loan bears interest at 8.50%
and matures on April 15, 1996. The proceeds from both loans are to be used for
the purchase of steel mill equipment which shall collateralize the loans.
The Note to Parent is an unsecured non-interest bearing note with no stated
maturity. Accordingly, amounts due are classified as current as of September
30, 1995 in the accompanying statements of financial position.
As of September 30, 1995, the Company had approximately $17.8 million of
outstanding letters of credit, primarily for IRBs, insurance-related matters
and surety bonds.
NOTE E--ENVIRONMENTAL MATTERS
Because the Company is involved in the manufacture of steel, it produces and
uses certain substances that may pose environmental hazards. The principal
hazardous waste generated by current and past operations is emission control
dust ("EC dust"), a residual from the production of steel in electric arc
furnaces. The emission control dust generated by current operations is shipped
to zinc reclamation facilities under applicable environmental laws. In the
past, some of the Company's facilities and those of some reclaimers to whom
shipments were made became contaminated by emission control dust. In addition,
during the early 1970s, contamination involving polychlorinated biphenyls
(PCBs) occurred at several of the Company's facilities.
Various possible methods of remediation are presently being studied for
approval; however, it is expected that the investigation and remediation
process will take a number of years. Although the ultimate costs associated
with the remediation are not presently known, the Company has estimated the
cost to be approximately $19.2 million. Approximately $16.6 million of these
costs is recorded in accrued liabilities as of September 30, 1995. The
remaining amounts consist of site restoration and environmental exit costs to
ready idle facilities for sale, and have been considered in determining whether
the carrying amounts of the properties exceed their net realizable values.
Based on past use of certain technologies and remediation methods by third
parties, evaluation of those technologies and methods by the Company's
consultants and quotations and third-party estimates of costs of
remediation-related services provided to the Company or of which the Company
and its consultants are aware, the Company and its consultants believe that the
Company's cost estimates are reasonable. In light of the uncertainties
inherent in determining the costs associated with the clean-up of such
contamination, including the time periods over which such costs must be paid,
the extent of contribution by parties which are joint and severally liable, and
the nature and timing of payments to be made under cost sharing arrangements;
there can be no assurance the ultimate costs of remediation may not be greater
or less than the estimated remediation costs. Environmental legislation and
regulation at both the federal and state level is subject to change, which may
change the cost of compliance.
9
<PAGE> 10
FLORIDA STEEL CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOTE E--ENVIRONMENTAL MATTERS - Continued
Other Operating Expenses
In July 1995, the Company announced the closing of the Tampa, Florida rolling
mill, resulting in a $15.0 million charge of which $12.0 million was to reduce
fixed assets to realizable value and $3.0 million was for severance and benefit
costs for affected employees and other costs associated with the closure of the
facility.
Litigation
The Company is defending various claims and legal actions which are common to
its operations. While it is not feasible to predict or determine the ultimate
outcome of these matters, none of them, in the opinion of management, will have
a material effect on the Company's financial position or results of operations.
FLORIDA STEEL CORPORATION
ITEM 2. MANAGEMENTS' DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION
LIQUIDITY AND CAPITAL RESOURCES
The Credit Agreement, effective June 9, 1995, provides up to $140 million
borrowings subject to a "borrowing base" amount which substantially improves
the Company's liquidity and lowers the effective interest rate. The unused
borrowing at September 30, 1995 was $ 58.8 million.
The closure of the Tampa rolling mill, effective September 1995, resulted in a
$15 million charge for the June 1995 quarter. Of that amount $12 million was a
non-cash write down of fixed assets and the balance was for severance pay and
other costs that will be paid over the next year. As a result of increased
production at the other mills, the volume is not expected to be reduced due to
the closure, however, raw material and work in process inventories were
reduced.
The Company expects to spend approximately $29 million for capital expenditures
and approximately $5.0 million for environmental remediation during the balance
of fiscal 1996. However, the cash flow generated from operations and available
financing should be sufficient to fund the contemplated expenditures, and
maintain adequate available borrowing capacity under the Credit Agreement. The
Company continues to comply with all of the covenants of its loan agreements.
10
<PAGE> 11
FLORIDA STEEL CORPORATION
ITEM 2. MANAGEMENTS' DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION - Continued
RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED THREE MONTHS ENDED
----------------------------------- ---------------------------------
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1995 1994 1995 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Shipments (Tons)
----------------
Stock Rebar 248,009 281,477 122,661 153,064
Merchant Bar 280,001 264,350 138,409 138,142
Rods 64,062 65,571 34,112 36,640
------- ------- ------- -------
Mill Finished Products 592,072 611,398 295,182 327,846
Fabricated Rebar 170,653 185,136 81,669 93,622
Billets 69,842 84,723 49,188 26,802
------- ------- ------- -------
Total Tonnage 832,567 881,257 426,039 448,270
Selling Price ( Per Ton)
------------------------
Stock Rebar $322 $318 $314 $327
Merchant Bar $371 $351 $367 $353
Rods $351 $329 $345 $328
---- ---- ---- ----
Mill Finished Products $349 $333 $343 $338
Fabricated Rebar (plain) $461 $405 $462 $413
Billets $234 $220 $230 $226
Metal Margin Spread (Per Ton)
-----------------------------
Mill Selling Price $349 $333 $343 $338
Ferrous Scrap Price $131 $125 $130 $121
---- ---- ---- ----
Metal Margin Spread $218 $208 $213 $217
</TABLE>
11
<PAGE> 12
FLORIDA STEEL CORPORATION
ITEM 2. MANAGEMENTS' DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION - Continued
For the September 1995 quarter the metal margin spread between the cost of
ferrous scrap and mill selling prices decreased 1.8% as $5 per ton higher
selling prices were more than offset by $9 per ton higher scrap costs as
compared with the September 1994 quarter.
For the six month period ended September 30, 1995, the metal margin spread was
$10 per ton higher than the comparable period a year ago. The Company's
downstream fabrication facilities continued to benefit from strong demand and
favorable margins compared with the prior year period.
Average selling prices for mill finished tons shipped increased $5 per ton for
the quarter ended September 30, 1995 versus a year ago and were up $16 per ton
for the six months period ended September 30, 1995 as compared with six months
ended September 30, 1994.
Total tons shipped were down 5.0% for the quarter ended September 30, 1995
versus a year ago and down 5.5% for the six month period ended September 30,
1995 as compared with the six month period ended September 30, 1994.
Cost of Sales: Cost of sales, excluding depreciation, was 84.7% of sales for
the quarter ended September 30, 1995 as compared to 81.9% for the prior year
quarter. For the current year six month period the cost of sales, excluding
depreciation was 83.8% versus 86.7% for the prior year comparable period. Cost
of sales, excluding depreciation for the September 1995 quarter, increased as a
percent of sales as a result of the higher scrap and conversion costs although
selling prices were higher than a year ago. For the six month period ended
September 30, 1995 cost of sales, excluding depreciation was 83.8% of sales
versus 86.7% for the comparable period a year ago because of the higher selling
prices. Mill average selling prices increased 4.8% for the six month period
ended September 30, 1995 versus a year ago and the Fabricated Rebar Group
average selling prices were up 13.8% over the prior year six month period.
Selling and Administrative Expenses: Selling and administrative expenses
decreased in the three and six month periods ended September 30, 1995 versus
the comparable periods ended September 30, 1994 primarily because of lower
employment costs and outside service costs.
Depreciation: Depreciation for the three and six month periods ended September
30, 1995 was higher than the three and six month periods ended September 30,
1994 because of additional capital expenditures.
Interest Expense: Interest expense for the quarter ended September 30, 1995
was lower than a year ago because of lower rates and capitalized interest.
Interest expense for the six month period ended September 30, 1995 was higher
than a year ago because of higher average debt and higher rates. The Company
capitalized $787,000 of interest for the six month period ended September 30,
1995 versus $168,000 for the six month period a year ago.
Income Taxes: The effective federal and state income tax rate for the six
month period ended September 30, 1995 and September 30, 1994 was 39% and 37.7%,
respectively, excluding the effect of the amortization of goodwill, which is
not deductible for income tax purposes.
12
<PAGE> 13
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is defending various claims and legal actions which are common to
its operations. While it is not feasible to predict or determine the outcome
of these matters, none of them, in the opinion of management, will have a
material effect on the Company's financial position or results of operation.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
27 Financial Data Schedule (for SEC use only)
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.
<TABLE>
<S> <C>
FLORIDA STEEL CORPORATION
Date: November 9, 1995 /s/ T. G. Creed
-----------------------------------------------------------
T. G. Creed, President and Chief Operating Officer
Date: November 9, 1995 /s/ T. J. Landa
-----------------------------------------------------------
T. J. Landa, Vice President and Chief Financial Officer
</TABLE>
13
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 1,593
<SECURITIES> 0
<RECEIVABLES> 77,863
<ALLOWANCES> (1,100)
<INVENTORY> 119,870
<CURRENT-ASSETS> 209,718
<PP&E> 258,303
<DEPRECIATION> (35,624)
<TOTAL-ASSETS> 536,967
<CURRENT-LIABILITIES> 89,816
<BONDS> 0
<COMMON> 101
0
0
<OTHER-SE> 139,049
<TOTAL-LIABILITY-AND-EQUITY> 536,967
<SALES> 326,229
<TOTAL-REVENUES> 326,229
<CGS> 273,268
<TOTAL-COSTS> 273,268
<OTHER-EXPENSES> 23,281
<LOSS-PROVISION> 200
<INTEREST-EXPENSE> 13,223
<INCOME-PRETAX> 16,257
<INCOME-TAX> 7,146
<INCOME-CONTINUING> 9,111
<DISCONTINUED> (9,150)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (39)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
