<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 June 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 10,048,836 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>
JUNE 30,
1995 MARCH 31,
(UNAUDITED) 1995
----------- ----------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,384 $ 2,854
Accounts receivable, less allowance for estimated
losses ($1,200 at June 30, 1995
and $1,000 at March 31,1995) 79,515 80,360
Inventories 127,054 127,680
Deferred tax assets 11,800 11,800
Other current assets 492 750
-------- --------
TOTAL CURRENT ASSETS 220,245 223,444
REAL ESTATE HELD FOR SALE 8,631 8,631
PROPERTY, PLANT AND EQUIPMENT 255,273 262,141
Less allowances for depreciation 32,113 31,033
-------- --------
223,160 231,108
GOODWILL 93,001 94,033
DEFERRED FINANCING COSTS 4,124 4,504
OTHER ASSETS 14 28
-------- --------
TOTAL ASSETS $549,175 $561,748
======== ========
</TABLE>
See notes to condensed financial statements
<PAGE> 3
FLORIDA STEEL CORPORATION
CONDENSED STATEMENTS OF FINANCIAL POSITION
($ IN THOUSANDS)
<TABLE>
<CAPTION>
JUNE 30,
1995 MARCH 31,
(UNAUDITED) 1995
----------- ----------
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 39,818 $ 49,364
Salaries, wages and employee benefits 14,782 16,520
Environmental remediation 8,596 10,919
Other current liabilities 4,286 3,774
Interest payable 1,936 5,258
Current maturities of long-term borrowings 20,145 16,245
--------- --------
TOTAL CURRENT LIABILITIES 89,563 102,080
LONG-TERM BORROWINGS,
(INCLUDING NOTE PAYABLE TO PARENT OF $50,000
AT MARCH 31, AND JUNE 30, 1995, RESPECTIVELY) 245,930 243,030
OTHER LIABILITIES 18,507 18,388
DEFERRED INCOME TAXES 60,451 60,500
SHAREHOLDERS' EQUITY
Common stock, $.01 par value; 30,000,000 shares authorized
at March 31, and June 30, 1995. 10,000,000 and 10,048,836
shares outstanding at March 31, and June 30, 1995, respectively. 100 100
Capital in excess of par 156,510 155,900
Accumulated deficit (18,361) (14,500)
Deferred compensation (3,525) (3,750)
-------- --------
TOTAL SHAREHOLDERS' EQUITY 134,724 137,750
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $549,175 $561,748
======== ========
</TABLE>
See notes to condensed financial statements.
3
<PAGE> 4
FLORIDA STEEL CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
($ IN THOUSANDS EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30,
1995 1994
(UNAUDITED) (UNAUDITED)
----------- -----------
<S> <C> <C>
Net sales $165,211 $154,597
Operating expenses:
Cost of sales, excluding depreciation 136,914 140,401
Selling and administrative 7,017 6,284
Depreciation 3,634 3,649
Amortization of goodwill 1,032 1,032
Other operating expenses 15,000 -
-------- --------
163,597 151,366
-------- --------
INCOME FROM OPERATIONS 1,614 3,231
Other expenses:
Interest 6,304 5,419
Amortization of deferred financing costs 980 608
-------- --------
7,284 6,027
-------- --------
(LOSS) BEFORE INCOME TAXES (5,670) (2,796)
Income tax (benefit) (1,809) (666)
-------- --------
NET (LOSS) $ (3,861) $ (2,130)
======== ========
Weighted average shares outstanding
(in thousands) 10,016 10,000
======== ========
Earnings (loss) per common share $ (.39) $ (.21)
======== ========
</TABLE>
See notes to condensed financial statements.
4
<PAGE> 5
FLORIDA STEEL CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
($ IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30,
1995 1994
(UNAUDITED) (UNAUDITED)
----------- -----------
<S> <C> <C>
OPERATING ACTIVITIES
Net loss $ (3,861) $ (2,130)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation 3,634 3,649
Amortization 2,012 1,640
Provision for uncollectable accounts 150 200
Deferred compensation 225 75
Deferred income taxes (49) (761)
(Gain) loss on disposition of plant and equipment 12,719 33
Changes in operating assets and liabilities:
Accounts receivable 695 (9,688)
Inventories 626 12,191
Other current assets 258 474
Other assets 14 1
Trade accounts payable (9,546) (4,207)
Salaries, wages and employee benefits (1,738) 402
Environmental remediation (2,323) (1,859)
Other current liabilities 512 230
Interest payable (3,322) (2,992)
Other liabilities 119 (880)
-------- --------
NET CASH USED IN OPERATING ACTIVITIES 125 (3,622)
INVESTING ACTIVITIES
Additions to plant and equipment (8,579) (3,274)
Proceeds from sales of plant and equipment 174 34
-------- --------
NET CASH USED IN INVESTING ACTIVITIES (8,405) (3,240)
-------- --------
FINANCING ACTIVITIES Proceeds from short-term and long-term borrowings 6,800 6,737
Addition to deferred financing costs (600)
Proceeds from sale of common stock 610
-------- --------
6,810 6,737
-------- --------
DECREASE IN CASH AND CASH EQUIVALENTS (1,470) (125)
Cash and cash equivalents at beginning of period 2,854 1,774
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,384 $ 1,649
======== ========
</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 of the three months
ended June 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>
JUNE 30, MARCH 31,
1995 1995
---------- ----------
<S> <C> <C>
Finished goods $ 80,486 $ 81,375
Work in-process 20,102 21,620
Raw materials and operating supplies 26,466 24,685
-------- ---------
$127,054 $ 127,680
======== =========
</TABLE>
NOTE D--BORROWINGS
Long-term borrowings consist of the following:
($ in thousands)
<TABLE>
<CAPTION>
JUNE 30, MARCH 31,
1995 1995
---------- ---------
<S> <C> <C>
New Revolving Credit Agreement $ 72,020 $
Revolving Credit Agreement - 65,161
First Mortgage Notes 100,000 100,000
Subordinated Intercompany Note 50,000 50,000
Subordinated Debentures ("Debentures") 13,035 13,035
Industrial Revenue Bonds 10,875 10,875
Bank of Tokyo Loan 10,000 10,000
Trade Loan Agreements 9,439 9,260
Note to Parent 706 944
-------- --------
266,075 259,275
Less Current Maturities 20,145 16,245
-------- --------
$245,930 $243,030
======== ========
</TABLE>
Effective June 9, 1995, the Company entered into a two-year revolving bank
agreement (the "New Revolving Credit Agreement"), which replaces the Revolving
Credit Agreement and 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 New Revolving
Credit Agreement contains certain covenants including financial ratios and
limitations on indebtedness, liens, investments and disposition of assets and
dividends. The New Revolving Credit Agreement is collateralized by first
priority security interests in substantially all accounts receivable and
inventory of the Company.
Revolving Loans under the New Revolving 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 under the New Revolving Credit Agreement, used
to pay off the Revolving Credit Agreement, was LIBOR plus 1.5%.
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>
<CAPTION>
Year Percentage
---- ----------
<S> <C>
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 June 30, 1995.
The Company has issued to Holdings 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 Revolving Credit Agreement and
the IRBs. The Subordinated Intercompany Note bears interest at variable rates.
The weighted average interest rate at June 30, 1995 was 8.3%.
The Debentures bear interest at 14.5% and mature in fiscal 2001, but are
redeemable at the option of the Company, in whole or in part from time to time,
at redemption prices (expressed as percentages of the outstanding principal
amount) if redeemed during the twelve-month period commencing on November 15 of
the year set forth below, plus, in each case accrued interest thereon to the
date of redemption:
<TABLE>
<CAPTION>
YEAR PERCENTAGE
---- ----------
<S> <C>
1994 104%
1995 102%
1996 and Thereafter 100%
</TABLE>
8
<PAGE> 9
FLORIDA STEEL CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOTE D--BORROWINGS -- Continued
The Company also has outstanding borrowings obtained through industrial revenue
bonds ("IRBs") issued to construct facilities in Jackson, Tennessee; Charlotte,
North Carolina; Jacksonville, Florida; and Plant City, Florida. The interest
rates on these bonds range from 50% to 75% of the Prime rate. The IRBs mature
in fiscal 2004. The IRBs are backed by irrevocable letters of credit issued
pursuant to the Revolving Credit Agreement.
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%. (7.9% effective June
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.
The Company has borrowed $5.4 million as of June 30, 1995 from Mitsubishi
International Corporation. The loan bears interest at 7.75% and matures on
December 29, 1995. The Company has also borrowed $4.0 million as of June 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 June 30,
1995 in the accompanying statements of financial position.
As of June 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.
9
<PAGE> 10
FLORIDA STEEL CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOTE E--ENVIRONMENTAL MATTERS - Continued
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 $19.4 million. Approximately $16.8 million of these
costs is recorded in accrued liabilities as of June 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. The
Company's estimate of the remediation costs is based on its review of each site
and the nature of such problems. The Company then determines for each site the
expected remediation methods, and the estimated cost for each step of
remediation. In all such determinations, the Company employs outside
consultants, and providers of such remedial services where necessary, to
assist in making such determinations.
Environmental legislation and regulation at both the federal and state level is
subject to change, which may change the cost of compliance.
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.
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 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.
10
<PAGE> 11
FLORIDA STEEL CORPORATION
ITEM 2. MANAGEMENTS' DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION
LIQUIDITY AND CAPITAL RESOURCES
The New Revolving 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 June 30, 1995 was $49.8 million.
The Company borrowed an additional $6.8 million primarily for investments in
plant and equipment. 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 will be reduced.
The Company expects to spend an additional $22 million for capital expenditures
and approximately $7.5 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 New Revolving Credit
Agreement. The Company continues to comply with all of the covenants of its
loan agreements.
RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED:
-------------------------------
JUNE 30, JUNE 30,
1995 1994
----------- -----------
<S> <C> <C>
Shipments (Tons)
----------------
Stock Rebar 125,344 128,413
Merchant Bar 141,592 126,208
Rods 29,950 28,931
-------- --------
Mill Finished Products 296,886 283,552
Fabricated Rebar 88,984 91,514
Billets 20,654 57,921
-------- --------
Total Tonnage 406,524 432,987
Selling Price ( Per Ton)
------------------------
Stock Rebar $ 331 $ 308
Merchant Bar $ 375 $ 349
Rods $ 359 $ 331
-------- --------
Mill Finished Products $ 355 $ 328
Fabricated Rebar (plain) $ 461 $ 397
Billets $ 242 $ 218
Metal Margin Spread (Per Ton)
-----------------------------
Mill Selling Price $ 355 $ 328
Ferrous Scrap Price $ 133 $ 128
-------- --------
Metal Margin Spread $ 222 $ 200
</TABLE>
11
<PAGE> 12
FLORIDA STEEL CORPORATION
ITEM 2. MANAGEMENTS' DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION - Continued
Excluding the one time charge for the Tampa Mill closure, the improvement in
the operating results were primarily attributable to stronger market demand for
mill finished products, an 11% increase in the metal margin spread between the
cost of ferrous scrap and mill selling prices and lower mill conversion costs
of $5 per ton. The Company's downstream fabrication facilities benefited from
strong seasonal demand and 16% higher selling prices for fabricated rebar
products.
Average selling prices for mill finished tons shipped were up $27 per ton or
8.2% for the quarter ended June 30, 1995 versus the comparable quarter a year
ago and up $14 per ton compared with the average selling prices for the March
1995 quarter.
Cost of Sales: Cost of sales, excluding depreciation was 82.9% of sales for
the period ended June 30,1995 as compared to 90.9% for the quarter a year ago.
Scrap costs were $133 per ton for the current quarter versus $128 per ton a
year ago.
The primary reasons for the decrease in the cost of goods sold, excluding
depreciation, as a % of sales, were improved selling prices. The average
ferrous metal margin, selling prices less scrap, improved approximately 11%.
Total mill conversion costs were $5 per ton lower over a year ago. In
addition, the West Tennessee mill was shut down one month in the June 1994
quarter.
Selling and Administrative Expenses: Selling and administrative expenses
increased in the quarter ended June 30, 1995 versus the quarter ended June 30,
1994 primarily because of increased employment costs and outside service costs.
Depreciation: Depreciation for the quarter ended June 30, 1995 was lower than
the quarter ended June 30, 1994 because of the closing of the Tampa Melt Shop.
Interest Expense: Interest expense for the first quarter of fiscal 1996 was
higher than in the first quarter of fiscal 1995 because of higher average debt
and higher interest rates.
Income Taxes: The effective federal and state income tax rate for the quarter
ended June 30, 1995 and June 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
(a) The following document is filed as an exhibit to this
Quarterly Report on Form 10-Q:
27 Financial Data Schedule (for SEC use only)
(b) Reports on Form 8-K:
None
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.
FLORIDA STEEL CORPORATION
Date: August 10, 1995 /s/ T. G. Creed
-------------------------------------------------------
T. G. Creed, President and Chief Operating Officer
Date: August 10, 1995 /s/ T. J. Landa
-------------------------------------------------------
T. J. Landa, Vice President and Chief Financial Officer
13
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 1,384
<SECURITIES> 0
<RECEIVABLES> 80,715
<ALLOWANCES> (1,200)
<INVENTORY> 127,054
<CURRENT-ASSETS> 220,245
<PP&E> 255,273
<DEPRECIATION> (32,113)
<TOTAL-ASSETS> 549,175
<CURRENT-LIABILITIES> 89,563
<BONDS> 0
<COMMON> 100
0
0
<OTHER-SE> 134,624
<TOTAL-LIABILITY-AND-EQUITY> 549,175
<SALES> 165,211
<TOTAL-REVENUES> 165,211
<CGS> 136,914
<TOTAL-COSTS> 136,914
<OTHER-EXPENSES> 11,533
<LOSS-PROVISION> 150
<INTEREST-EXPENSE> 7,284
<INCOME-PRETAX> 9,330
<INCOME-TAX> 4,041
<INCOME-CONTINUING> 5,289
<DISCONTINUED> (9,150)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,861)
<EPS-PRIMARY> (.39)
<EPS-DILUTED> (.39)
</TABLE>