SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
===========================================================================
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended Commission File Number
JUNE 30, 1996 1-3574
HASTINGS MANUFACTURING COMPANY
(Exact name of registrant as specified in its charter)
MICHIGAN 38-0633740
(State or other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
325 NORTH HANOVER STREET
HASTINGS, MICHIGAN 49058
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: 616-945-2491
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.
Yes __X__ No _____
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
<TABLE>
<CAPTION>
OUTSTANDING AT
CLASS AUGUST 2, 1996
<S> <C> <C>
Common stock, $2 par value 390,473 shares
</TABLE>
===========================================================================
Hastings Manufacturing Company and Subsidiaries
Contents
_______________________________________
PART I - FINANCIAL INFORMATION
PAGE
Item 1 - Financial Statements:
Report on Review by Independent Certified Public
Accountants 3
Condensed Consolidated Balance Sheets -
June 30, 1996 and December 31, 1995 4-5
Condensed Consolidated Statements of Operations -
Three Months and Six Months Ended
June 30, 1996 and 1995 6
Condensed Consolidated Statements of Cash Flows -
Six Months Ended June 30, 1996 and 1995 7
Notes to Condensed Consolidated Financial
Statements 8-9
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations 10-13
Review by Independent Certified Public Accountants 14
PART II - OTHER INFORMATION
Item 4 - Submission of Matters to a Vote of Security-Holders 15
Item 6 - Exhibits and Reports on Form 8-K 15
-2-
Report on Review by Independent Certified Public Accountants
____________________________________________
Board of Directors
Hastings Manufacturing Company
Hastings, Michigan
We have reviewed the accompanying condensed consolidated balance sheets of
Hastings Manufacturing Company and subsidiaries as of June 30, 1996, and
the related condensed consolidated statements of operations and cash flows
for the three-month and six-month periods ended June 30, 1996 and 1995,
included in the accompanying Securities and Exchange Commission Form 10-Q
for the period ended June 30, 1996. These condensed consolidated financial
statements are the responsibility of the Company's management.
We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical
procedures to financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion regarding
the financial statements taken as a whole. Accordingly, we do not express
such an opinion.
As described in Note 6, the Company sold its filter product line assets
effective September 3, 1995.
Based on our reviews, we are not aware of any material modifications that
should be made to the accompanying condensed consolidated financial
statements for them to be in conformity with generally accepted accounting
principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of December 31, 1995, and the
related consolidated statements of operations, stockholders' equity and
cash flows for the year then ended (not presented herein). In our report
dated March 1, 1996, we expressed an unqualified opinion on those
consolidated financial statements. In our opinion, the information set
forth in the accompanying condensed consolidated balance sheet as of
December 31, 1995, is fairly stated in all material respects in relation to
the consolidated balance sheet from which it has been derived.
/s/ BDO Seidman, LLP
BDO Seidman, LLP
Grand Rapids, Michigan
August 2, 1996
-3-
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
Hastings Manufacturing Company and Subsidiaries
Condensed Consolidated Balance Sheets
______________________________________
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 572,434 $ 1,909,506
Accounts receivable, less allowance
for possible losses of $410,000
and $225,000 5,966,246 6,584,392
Refundable income taxes 71,150 226,037
Inventories:
Finished products 7,322,524 6,544,211
Work in process 608,638 769,917
Raw materials 2,193,679 2,621,566
Prepaid expenses and other assets 56,516 131,166
Future income tax benefits 2,161,578 2,108,578
TOTAL CURRENT ASSETS 18,952,765 20,895,373
PROPERTY AND EQUIPMENT
Land and improvements 648,266 648,266
Buildings 4,261,237 4,045,784
Machinery and equipment 16,919,849 16,061,415
21,829,352 20,755,465
Less accumulated depreciation 13,607,218 12,902,944
NET PROPERTY AND EQUIPMENT 8,222,134 7,852,521
INTANGIBLE PENSION ASSET 1,222,783 1,222,783
FUTURE INCOME TAX BENEFITS 6,548,202 6,548,202
OTHER ASSETS 1,058,602 1,028,689
$36,004,486 $37,547,568
</TABLE>
-4-
<TABLE>
Hastings Manufacturing Company and Subsidiaries
Condensed Consolidated Balance Sheets
____________________________________
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable to banks $ 2,500,000 $ 1,500,000
Accounts payable 568,593 2,487,870
Accruals:
Compensation 345,565 384,909
Pension plan contribution 719,666 659,387
Taxes other than income 302,603 204,992
Miscellaneous 459,861 459,719
Current portion of postretirement
benefit obligation 1,491,126 1,541,126
Current maturities of
long-term debt 1,560,500 1,560,500
TOTAL CURRENT LIABILITIES 7,947,914 8,798,503
LONG-TERM DEBT,
less current maturities 2,759,375 3,490,625
PENSION AND DEFERRED COMPENSATION
OBLIGATIONS, less current portion 4,446,007 4,457,614
POSTRETIREMENT BENEFIT OBLIGATION,
less current portion 15,778,655 15,575,848
TOTAL LIABILITIES 30,931,951 32,322,590
STOCKHOLDERS' EQUITY
Preferred stock, $2 par value,
authorized and unissued
500,000 shares - -
Common stock, $2 par value,
1,750,000 shares authorized;
390,473 and 388,813
shares issued and outstanding 780,946 777,626
Additional paid-in capital 151,475 119,318
-5-
Retained earnings 6,666,550 6,854,865
Cumulative foreign currency
translation adjustment (600,006) (600,401)
Pension liability adjustment (1,926,430) (1,926,430)
TOTAL STOCKHOLDERS' EQUITY 5,072,535 5,224,978
$36,004,486 $37,547,568
</TABLE>
See accompanying independent accountants' review report and notes to
condensed consolidated financial statements.
-6-
<TABLE>
Hastings Manufacturing Company and Subsidiaries
Condensed Consolidated Statements of Operations
_________________________________________
<CAPTION>
THREE MONTHS ENDED, SIX MONTHS ENDED,
June 30, 1996 1995 1996 1995
<S> <C> <C> <C> <C>
NET SALES $10,777,623 $18,754,159 $22,142,035 $35,088,882
COST OF SALES 7,953,961 14,812,820 16,256,875 27,316,851
Gross profit 2,823,662 3,941,339 5,885,160 7,772,031
EXPENSES
Advertising 113,911 300,688 215,885 604,263
Selling 984,658 1,611,493 1,966,290 3,154,368
General and administrative 1,661,837 2,138,893 3,454,898 4,282,131
Interest, net 105,327 239,239 171,443 480,289
Other, net (Note 5) (460) 23,106 (205,938) 20,382
Non-recurring relocation
costs (Note 6) 387,392 - 468,422 -
Total expenses 3,252,665 4,313,419 6,071,000 8,541,433
Loss before
income tax benefit (429,003) (372,080) (185,840) (769,402)
INCOME TAX BENEFIT (159,000) (128,000) (75,000) (275,000)
NET LOSS $ (270,003) $ (244,080) $ (110,840) $ (494,402)
NET LOSS PER SHARE
OF COMMON STOCK $ (.69) $ (.63) $ (.28) $ (1.27)
AVERAGE SHARES OF
COMMON STOCK OUTSTANDING 389,798 388,668 389,308 388,668
DIVIDENDS PER SHARE
OF COMMON STOCK $ .10 $ .10 $ .20 $ .20
</TABLE>
See accompanying independent accountants' review report and notes to
condensed consolidated financial statements.
-7-
<TABLE>
Hastings Manufacturing Company and Subsidiaries
Condensed Consolidated Statements of Cash Flows
________________________________________
<CAPTION>
Six months ended June 30, 1996 1995
<S> <C> <C>
OPERATING ACTIVITIES
Net loss $ (110,840) $ (494,402)
Adjustments to reconcile net
loss to net cash from
(for) operating activities:
Depreciation 693,582 1,062,755
Deferred income taxes (53,000) -
Gain on sale of property
and equipment (588) (900)
Change in postretirement
benefit obligation 152,807 (87,951)
Changes in operating
assets and liabilities:
Accounts receivable 618,476 1,482,341
Inventories (189,110) (265,164)
Prepaid expenses and other
current assets 74,668 3,103
Refundable income taxes 154,637 (79,724)
Other assets (12,304) 16,437
Accounts payable and accruals (1,777,055) (1,005,317)
Net cash from (for) operating activities (448,727) 631,178
INVESTING ACTIVITIES
Capital expenditures (1,061,896) (889,834)
Proceeds from sale of property
and equipment 1,000 900
Investment of proceeds from
filter sale escrow (17,713) -
Net cash for investing activities (1,078,609) (888,934)
FINANCING ACTIVITIES
Proceeds from issuance of notes
payable to banks 5,900,000 12,546,065
Principal payments on notes
payable to banks (4,900,000) (11,317,975)
Principal payments on long-term debt (731,250) (858,145)
Dividends paid (78,014) (77,734)
-8-
Net cash from financing activities 190,736 292,211
EFFECT OF EXCHANGE RATE CHANGES ON CASH (472) 2,009
NET INCREASE (DECREASE) IN CASH (1,337,072) 36,464
CASH, beginning of period 1,909,506 485,034
CASH, end of period $ 572,434 $ 521,498
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest $ 178,914 $ 547,593
Income taxes, net of refunds 2,812 (194,883)
</TABLE>
See accompanying independent accountants' review report and notes to
condensed consolidated financial statements.
-9-
Hastings Manufacturing Company and Subsidiaries
Notes to Condensed Consolidated Financial Statements
____________________________________
NOTE 1 In the opinion of the management of Hastings Manufacturing Company
and subsidiaries (the "Company"), the accompanying unaudited
condensed consolidated financial statements include all normal
recurring adjustments considered necessary to present fairly the
financial position as of June 30, 1996, and the results of
operations and cash flows for the three months and six months
ended June 30, 1996 and 1995.
Certain 1995 amounts have been reclassified to conform to the 1996
presentation.
NOTE 2 The results of operations for the six months ended June 30, 1996,
are not necessarily indicative of the results for all of 1996.
NOTE 3 Net income (loss) per share is determined based on the weighted
average number of shares of common stock outstanding during each
period.
NOTE 4 The condensed consolidated financial statements include the
accounts of Hastings Manufacturing Company and its wholly-owned
subsidiaries. All significant intercompany balances, transactions
and stockholdings have been eliminated.
The accompanying consolidated financial statements are condensed
and do not contain all of the information and footnote disclosures
required by generally accepted accounting principles for complete
financial statements.
NOTE 5 Under the terms of a debt agreement, the Company is subject to
specific limitations and restrictions pertaining to working
capital, net worth, dividends, etc.
On March 13, 1996, the Company terminated its interest rate swap
agreement with a commercial bank. This agreement, having a
notional principal amount at the time of termination of
$6,487,500, effectively limited the Company's interest rate
exposure to a fixed rate of 6.92% on its floating rate borrowings.
At termination, the Company received $204,500 from the bank as a
result of favorable interest rates. This amount is included in
Other, net expenses in the accompanying 1996 condensed
consolidated statement of operations.
-10-
At the same time, in order to continue to limit its interest rate
exposure, the Company entered into an interest rate collar
agreement with a current notional principal amount of $3 million.
This agreement provides for a cap rate on floating rate borrowings
of 8.25% and a related floor rate of 6.75%.
NOTE 6 As disclosed in Note 2 to the Company's consolidated financial
statements included in its 1995 Annual Report on Form 10-K,
effective on September 3, 1995, the Company entered into an
agreement and sold its filter product line assets to CLARCOR Inc.
(CLARCOR) of Rockford, Illinois. The Company and CLARCOR also
entered into a Transition Agreement on that date whereby the
Company continues to manufacture and supply certain filters and
filter component parts to CLARCOR through a transition period,
which is expected to be completed by mid-1996. The Transition
Agreement also provides for the reimbursement to the Company of
certain administrative costs directly related to the manufacture
and supply of filters and filter components to CLARCOR.
Total filter-related assets were as follows:
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
<S> <C> <C> <C>
Accounts receivable $1,026,000 $ 765,000
Inventory 303,700 1,458,000
$1,329,700 $2,223,000
</TABLE>
Of the total $720,400 employee severance benefits accrued and
expensed relating to the sale, $369,900 was paid through June 30,
1996 ($147,800 and $223,000 were paid during the three and six
months ended June 30, 1996, respectively).
Expense reimbursement for the three and six months ended June 30,
1996, included in net sales, amounted to $292,300 and $765,900,
respectively.
Sales, exclusive of the above expense reimbursement, and estimated
operating profit (loss) amounts for filter operations were
approximately as follows:
-11-
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
June 30, 1996 1995 1996 1995
<S> <C> <C> <C> <C> <C>
Sales $2,178,000 $9,313,000 $4,906,000 $17,655,000
Estimated operating
profit (loss) 314,000 (587,000) 611,000 (1,104,000)
</TABLE>
In conjunction with the sale of its filter operations, the Company
relocated its piston ring packaging operations from its former
Knoxville, Tennessee facility to its Hastings, Michigan facility
in 1996. The relocation and associated training costs are non-
recurring in nature. While these costs are directly related to
the 1995 sale of filter operations and the restructuring of the
Company's remaining operations, they were expensed as incurred in
1996 as required by recently issued accounting standards. These
costs totaled $468,422 for the six months ended June 30, 1996. Of
this amount, $81,030 and $387,392 were incurred in the first and
second quarters, respectively.
-12-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
As disclosed in the Company's September 30, 1995 and December 31, 1995
filings, and as further updated in Note 6 to the accompanying condensed
consolidated financial statements, the Company sold its filter operations
and assets effective September 3, 1995. Under the terms of a transition
agreement associated with that sale, results from certain filter operations
continue to impact the Company's financial results. Those items are noted
in greater detail within the various subheadings below.
NET SALES
Net sales in the second quarter of 1996 declined $7,976,536, or 42.5%, from
$18,754,159 in the second quarter of 1995 to $10,777,623. Net sales for
the first half of 1996 have declined $12,946,847 or 36.9% from $35,088,882
in the first half of 1995 to $22,142,035. As disclosed in Note 6, sales
volume from filter operations declined from $17,655,000 in the first half
of 1995 to $4,906,000 thus far this year. As such, net sales from the
remaining product lines have experienced a decline of $198,000 through the
first half of the year. The Company continues to experience higher volume
within its distributor, original equipment and private brand piston ring
market. The distributor increase reflects new account activity as the
Company continues to gain market share following the sale of its filter
operations. This gain has been accomplished despite a general softness in
the domestic aftermarket piston ring industry. The private brand
improvement reflects the phasing in of several new accounts since mid-1995.
Following efforts to re-establish an acceptable inventory position, the
1996 piston ring results have been further supported by a strong order fill
level. The export piston ring volume is down in 1996 reflecting lower
projected export sales and an internal inventory reduction on the part of
the Company's primary export representative. For future years, the Company
anticipates broadening its export sales base in an attempt to minimize the
annual fluctuations of this sales segment. Sales of the Company's additive
products also declined through the first half of 1996 following the loss of
a primary retail customer in late 1995. Though not a significant
contributor to the net sales total, the additives line generates a
favorable gross margin level. The combination of softer export piston ring
and additives sales in the second quarter offset the gain attained in the
distributor, original equipment and private brand markets.
Net sales in the second quarter of 1995 declined $1,394,719, or 6.9%, from
the second quarter of 1994 and declined $1,989,479 in the first half of
1995 from the first half of 1994. The decline primarily resulted from the
inclusion in 1994 of proceeds from the sale of technology and equipment to
a foreign customer and the Company's inability to meet total customer
demands during the first half of 1995 due to inventory shortages.
-13-
COST OF SALES AND GROSS PROFIT
Cost of sales during the second quarter of 1996 decreased $6,858,859, or
46.3%, from $14,812,820 in the second quarter of 1995 to $7,953,961. For
the first half of 1996, cost of sales decreased by $11,059,976, or 40.5%,
from $27,316,851 to $16,256,875. The 1995 second quarter and first half
cost of sales, reported as $13,512,820 and $24,816,851, respectively in the
June 30, 1995 Form 10-Q, have been restated to reflect the reclassification
of various operating expenses into cost of sales as in the first quarter of
1996. Those expenses included the group health care costs associated with
production personnel and distribution costs associated with product
handling and shipping. The corresponding gross profit margin results are
higher for each of the comparative 1996 periods. Again, the primary
contributor to that relationship is the significant reduction of filter
volume in the current year. Consistent with the first quarter's results,
the cost components of material, labor and overhead have held steady
through the past year with only minimal impact upon the gross profit
results. The second quarter of 1996 was, however, favorably impacted by a
reduction in the LIFO inventory reserve as the remaining filter inventory
owned by the Company was reduced. The Company anticipates that this filter
inventory reduction, with a corresponding LIFO reserve decline, will be
completed during the third quarter of 1996. The final quarter of 1996 will
be the initial quarter of full post-sale results.
The previously reported 1995 second quarter and six month gross profit
results weakened from the comparative periods in 1994. The 1994 periods
had been favorably impacted by the margin realized on the technology and
equipment sale. In addition, the 1995 results were unfavorably impacted by
higher direct labor costs and higher overhead charges reflecting, in part,
overtime costs as the Company attempted to attain an improved order fill
performance.
EXPENSE
Total expenses during the second quarter of 1996, excluding net interest,
decreased $926,842, or 22.7% from $4,074,180 for the second quarter of 1996
to $3,147,338. For the 1996 six-month period, these expenses decreased
$2,161,587, or 26.8%, from $8,061,144 to $5,899,557. Again, the filter
operations sale is the primary factor in these relationships as the Company
scaled back various programs and personnel relative to refocused
operations. Advertising expenses reflect the absence of all filter related
materials combined with lower support personnel costs and reduced
cooperative advertising programs. Selling expenses also continue to
reflect lower comparative sales staff costs combined with the elimination
of inventory conversion costs as previously used within the filter markets.
General and administrative expenses reflect lower support personnel levels
combined with an overall reduction in most of the office support expenses.
As discussed in Note 6, certain support costs, primarily included in
general and administrative expenses, have continued through the filter
-14-
transition period. Those items are billed back to the purchaser on a
monthly basis. The Other, net expenses category reflects a net income
position for the first and second quarters of 1996. The 1995 results
reflect the impact of several minor factors. As discussed in Note 5, the
year-to-date 1996 comparative period results reflect a gain of $204,500 in
March of this year from the termination of an interest rate swap agreement.
As discussed in Note 6, the Company incurred $468,422 of non-recurring
costs during the first six months of 1996 ($387,392 in the second quarter)
relating to the relocation of its piston ring packaging operations from its
former Knoxville, Tennessee facility to its Hastings, Michigan facility.
These costs are reflected on a separate line in the accompanying 1996
condensed consolidated statement of operations due to their non-recurring
nature. While these costs are directly related to the 1995 sale of filter
operations and the restructuring of the Company's remaining operations,
they were expensed as incurred in 1996 as required by accounting standards.
INTEREST, NET
Net interest during the first half of 1996 decreased $308,846, or 64.3%,
from the first half of 1995. Following the sale of the filter operations,
various short-term and long-term debt obligations were liquidated. While
some debt balances remain in place, certain invested funds, dedicated to
planned capacity improvements, remain on-hand as well. The net impact of
these lower net borrowings and earnings on the invested funds, resulted in
the favorable reduction. Net interest expense increased in the second
quarter of 1996 from the first quarter of this year reflecting, in part,
higher short-term borrowings in support of higher inventories and the
product relocation outlays.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary cash requirements are for operating expenses,
including labor costs and raw materials, and for funding accounts
receivable, capital expenditures and long-term debt service. Historically,
the Company's primary sources of cash have been from operations and from
bank borrowings. The sale of the Company's filter product line assets and
operations in September 1995 had, however, a significant impact upon
relationships of the various cash flow activities. Following the full
divestiture of the filter operations, and the restructuring required to
support the smaller organization, the Company expects to generate
sufficient future cash flows from operations and bank borrowings to fund
its growth and operating needs.
During the first half of 1996, the Company applied net cash of $448,727 to
operating activities. Cash flow adjustments related to depreciation and
the reduced accounts receivable level relative to the lower sales volume
were offset by the reduction of trade accounts payable and miscellaneous
-15-
accruals. This reduction reflects activity in the first quarter of 1996
related to scheduled payments to vendors and the liquidation of accruals
from year-end activities.
During the first half of 1995, the Company generated net cash of $631,178
from operating activities. The 1995 results reflect the cash flow
adjustment for depreciation combined with reduced accounts receivable
offset, in part, by higher inventories and decreased payables and accruals.
During the first half of 1996, the Company invested $1,061,896 in capital
expenditures. This included new equipment to expand production
capabilities within the existing facilities and to upgrade sections of
those existing facilities relative to the relocation of product inventories
and shipping to Hastings, Michigan. The Company anticipates that the full
year 1996 capital expenditures will slightly exceed the 1995 total of
$2,053,626. Certain funds resulting from the filter operations sale
continue to be targeted for most of that anticipated outlay.
The use of net cash for operations activities in the first half of 1996
required added reliance upon the Company's short-term credit lines as
detailed in the financing activities section of the cash flow statements.
Only minimal use of additional funds was required in the second quarter
despite the balance of funding required for the completion of the inventory
move. As of June 30, 1996, the Company had available approximately $4
million of unused capacity under its short-term lines of credit. Having
now absorbed the balance of the relocation costs, the Company believes that
current operating activities, combined with those funds targeted for
capacity enhancement, will be sufficient to meet its working capital,
capital expenditure and dividend requirements throughout 1996.
-16-
Hastings Manufacturing Company and Subsidiaries
Review by Independent Certified Public Accountants
__________________________________________
The June 30, 1996 and 1995, condensed consolidated financial statements
included in this filing on Form 10-Q have been reviewed by BDO Seidman,
LLP, Independent Certified Public Accountants, in accordance with
established professional standards and procedures for such a review.
-17-
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The annual meeting of shareholders of Hastings Manufacturing
Company was held on May 7, 1996. The purpose of the meeting was to elect
directors, and to transact any other business that may properly come
before the meeting.
(a) The name of each director elected (along with the
number of votes cast for or authority withheld) and the name
of each other director whose term of office as a director continued
after the meeting follows:
<TABLE>
<CAPTION>
VOTES CAST
AUTHORITY
FOR WITHHELD
ELECTED DIRECTORS
<S> <C> <C>
Andrew F. Johnson 330,515 1,900
William R. Cook 330,515 1,900
Monty C. Bennett 330,515 1,900
Richard L. Foster 330,515 1,900
</TABLE>
<TABLE>
DIRECTORS WHO CONTINUE TO SERVE
<CAPTION>
<S> <C>
Douglas A. DeKamp Mark R.S. Johnson
Neil A. Gardner Dale W. Koop
</TABLE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBIT. The following document is filed as an exhibit to this
report on Form 10-Q:
EXHIBIT
NUMBER DOCUMENT
27 Financial Data Schedule
(b) REPORTS ON FORM 8-K. No reports on Form 8-K have been filed
during the quarter for which this report is filed.
-18-
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.
HASTINGS MANUFACTURING COMPANY
Date: August 14, 1996 By: /S/ MONTY C. BENNETT
Monty C. Bennett
Its Vice President, Employee
Relations, Secretary and Director
Date: August 14, 1996 By: /S/ THOMAS J. BELLGRAPH
Thomas J. Bellgraph
Its Vice President, Finance
-19-
EXHIBIT INDEX
EXHIBIT
NUMBER DOCUMENT
27 Financial Data Schedule
-20-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE HASTINGS MANUFACTURING COMPANY AND SUBSIDIARIES FORM
10-Q FOR THE SIX MONTHS ENDED JUNE 30, 1996, AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 572,434
<SECURITIES> 0
<RECEIVABLES> 5,966,246
<ALLOWANCES> 410,000
<INVENTORY> 10,124,841
<CURRENT-ASSETS> 18,952,765
<PP&E> 21,829,352
<DEPRECIATION> 13,607,218
<TOTAL-ASSETS> 36,004,486
<CURRENT-LIABILITIES> 7,947,914
<BONDS> 4,319,875
<COMMON> 780,946
0
0
<OTHER-SE> 4,291,589
<TOTAL-LIABILITY-AND-EQUITY> 36,004,486
<SALES> 22,142,035
<TOTAL-REVENUES> 22,142,035
<CGS> 16,256,875
<TOTAL-COSTS> 16,256,875
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 103,000
<INTEREST-EXPENSE> 171,443
<INCOME-PRETAX> (185,840)
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</TABLE>
