SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarter ended September 30, 1994
Commission file number 1-3919
KEYSTONE CONSOLIDATED INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 37-0364250
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
5430 LBJ Freeway, Suite 1740, Three Lincoln Centre, Dallas, TX. 75240-2697
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (214) 458-0028
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 _____
Number of shares of common stock outstanding at October 31, 1994: 5,592,751
KEYSTONE CONSOLIDATED INDUSTRIES, INC.
AND SUBSIDIARIES
INDEX
Page
number
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - December 31, 1993
and September 30, 1994 3-4
Consolidated Statements of Operations - Three months
and nine months ended September 30, 1993 and 1994 5
Consolidated Statements of Cash Flows - Nine months
ended September 30, 1993 and 1994 6
Consolidated Statement of Stockholders' Deficit - Nine
months ended September 30, 1994 7
Notes to Consolidated Financial Statements 8-11
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 12-14
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 15
Item 6. Exhibits and Reports on Form 8-K 15
KEYSTONE CONSOLIDATED INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
<TABLE>
<CAPTION>
December 31, SEPTEMBER 30,
ASSETS 1993 1994
Current assets:
<S> <C> <C>
Notes and accounts receivable $ 38,513 $ 44,958
Inventories 35,544 34,943
Deferred income taxes 5,437 3,896
Prepaid expenses 1,257 1,551
Total current assets 80,751 85,348
Property, plant and equipment 222,601 230,975
Less accumulated depreciation 141,832 150,923
Net property, plant and equipment 80,769 80,052
Other assets:
Intangible pension asset 12,067 10,702
Deferred income taxes 28,056 29,635
Other 5,011 4,861
Total other assets 45,134 45,198
$206,654 $210,598
</TABLE>
KEYSTONE CONSOLIDATED INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(In thousands)
<TABLE>
<CAPTION>
December 31, SEPTEMBER 30,
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) 1993 1994
Current liabilities:
<S> <C> <C>
Notes payable and current long-term debt $ 8,148 $ 11,252
Accounts payable 24,189 28,175
Accounts payable to affiliates 111 -
Accrued pension cost 9,556 7,817
Accrued OPEB cost 7,243 7,433
Accrued excise tax and related interest 7,120 1,033
Other accrued liabilities 17,999 20,177
Total current liabilities 74,366 75,887
Noncurrent liabilities:
Long-term debt 19,042 16,195
Accrued pension cost 60,102 61,925
Accrued OPEB cost 96,336 97,280
Accrued excise tax and related interest - 1,033
Other 7,716 5,947
Total noncurrent liabilities 183,196 182,380
Stockholders' equity (deficit):
Common stock 6,244 6,313
Additional paid-in capital 18,803 19,393
Pension liabilities adjustment (35,317) (41,120)
Accumulated deficit (40,047) (32,243)
Treasury stock, at cost (591) (12)
Total stockholders' deficit (50,908) (47,669)
$206,654 $210,598
</TABLE>
KEYSTONE CONSOLIDATED INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
1993 1994 1993 1994
<S> <C> <C> <C> <C>
Revenues and other income:
Net sales $86,361 $87,571 $263,313 $277,700
Other 250 7 346 134
86,611 87,578 263,659 277,834
Costs and expenses:
Cost of goods sold 77,349 78,939 237,956 249,816
Selling 1,279 1,223 3,782 3,769
General and administrative 4,139 4,119 15,801 13,221
Interest - notes payable and
long-term debt 583 724 2,113 2,091
Interest (credit) related to
excise tax 156 - 3,797 (3,853)
83,506 85,005 263,449 265,044
Income before income taxes 3,105 2,573 210 12,790
Provision for income taxes (benefit) (86) 1,016 17 4,986
Net income $ 3,191 $ 1,557 $ 193 $ 7,804
Income per common and common
equivalent share $ .58 $ .28 $ .04 $ 1.39
Weighted average common and common
equivalent shares outstanding 5,489 5,626 5,500 5,596
</TABLE>
KEYSTONE CONSOLIDATED INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
<TABLE>
<CAPTION>
Nine months ended
September 30,
1993 1994
<S> <C> <c
Cash flows from operating activities:
Net income $ 193 $ 7,804
Depreciation 8,919 9,550
Noncash OPEB cost 1,206 1,134
Deferred taxes (1,369) 3,673
Other, net 16 270
8,965 22,431
Change in assets and liabilities:
Notes and accounts receivable (4,686) (6,678)
Inventories 3,514 601
Accounts payable 5,259 3,875
Accrued pension cost (5,654) (8,065)
Accrued excise tax and related interest 6,960 (5,054)
Other, net 1,352 887
Net cash provided by operating activities 15,710 7,997
Cash flows from investing activities:
Capital expenditures (4,473) (8,876)
Proceeds from disposition of property and
equipment 402 6
Net cash used by investing activities (4,071) (8,870)
Cash flows from financing activities:
Revolving credit facility, net (8,446) 3,147
Other notes payable and long-term debt:
Additions 91 200
Principal payments (2,967) (3,090)
Common stock issued (purchased), net (317) 616
Net cash provided (used) by financing
activities (11,639) 873
Net change in cash and cash equivalents - -
Cash and cash equivalents at beginning of period - -
Cash and cash equivalents at end of period $ - $ -
Supplemental disclosures:
Cash paid for:
Interest, net of amount capitalized $ 2,336 $ 2,199
Income taxes 465 1,593
Treasury stock contributed to employee
benefit plan $ - $ 622
</TABLE>
KEYSTONE CONSOLIDATED INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
Nine months ended September 30, 1994
(In thousands)
<TABLE>
<CAPTION>
Additional Pension Total
Common paid-in liabilities Accumulated Treasury stockholders'
stock capital adjustment deficit stock deficit
<S> <C> <C> <C> <C> <C> <C>
Balance at
December 31, 1993 $6,244 $18,803 $(35,317) $(40,047) $(591) $(50,908)
Net income - - - 7,804 - 7,804
Issuance of common
stock 69 590 - - 622 1,281
Purchase of treasury
stock - - - - (43) (43)
Pension adjustment - - (5,803) - - (5,803)
Balance at
September 30, 1994 $6,313 $19,393 $(41,120) $(32,243) $ (12) $(47,669)
</TABLE>
KEYSTONE CONSOLIDATED INDUSTRIES, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Organization and basis of presentation:
Keystone Consolidated Industries, Inc. (the "Company") is a majority-owned
subsidiary of Contran Corporation ("Contran"). Contran holds, directly or
indirectly, approximately 67% of the Company's outstanding common stock.
The consolidated balance sheet at December 31, 1993 has been condensed from
the Company's audited consolidated financial statements at that date. The
consolidated balance sheet at September 30, 1994 and the consolidated statements
of operations and cash flows for the interim periods ended September 30, 1993
and 1994, and the consolidated statement of stockholders' deficit for the
interim period ended September 30, 1994 have been prepared by the Company
without audit. In the opinion of management, all adjustments necessary to
present fairly the consolidated financial position, results of operations and
cash flows have been made. However, it should be understood that accounting
measurements at interim dates may be less precise than at year end. The results
of operations for the interim periods are not necessarily indicative of the
operating results for a full year or of future operations.
Certain information normally included in financial statements prepared in
accordance with generally accepted accounting principles has been condensed or
omitted. The accompanying consolidated financial statements should be read in
conjunction with the consolidated financial statements included in the Company's
Annual Report on Form 10-K for the year ended December 31, 1993 (the "Annual
Report").
Note 2 - Income per share:
Income per share is based on the weighted average number of common and
common equivalent shares outstanding.
Note 3 - Inventories:
Inventories are stated at the lower of cost or market. The last-in, first-
out ("LIFO") method is used to determine the cost of approximately 72% of
inventories held at September 30, 1994 (71% at December 31, 1993) and the first-
in, first-out or average cost methods are used to determine the cost of all
other inventories.
<TABLE>
<CAPTION>
December 31,
SEPTEMBER 30,
1993
1994
(In thousands)
<S> <C> <C>
Raw materials $ 9,944 $ 9,741
Work in process 9,963 10,397
Finished products 14,250 13,857
Supplies 14,115 13,676
48,272 47,671
Less LIFO reserve 12,728 12,728
$35,544 $34,943
</TABLE>
Note 4 - Notes payable and long-term debt:
<TABLE>
<CAPTION>
December 31,
SEPTEMBER 30,
1993
1994
(In thousands)
Commercial credit agreements:
<S> <C> <C>
Revolving credit facility $ 3,911 $ 7,058
Term loan 19,439 17,216
Other 3,840 3,173
27,190 27,447
Less current maturities 8,148 11,252
$19,042 $16,195
</TABLE>
The Company maintains a $35 million revolving credit facility which matures
December 31, 1996, is collateralized primarily by the Company's trade
receivables and inventories, and bears interest at the prime rate plus 1.5% (an
effective rate of 9.25% at September 30, 1994). The amount of available
borrowings is based on formula-determined amounts of trade receivables and
inventories, less the amount of outstanding letters of credit ($.7 million at
September 30, 1994). At September 30, 1994, additional borrowings available
under this credit facility were $27.3 million. This credit facility requires
that the Company's daily cash receipts be used to reduce the outstanding
borrowings, which results in the Company maintaining zero cash balances.
The Company's term loan with the financial institution that provides the
Company's revolving credit facility bears interest at the prime rate plus 1% and
is due in installments through December 31, 1996. The loan requires compliance
with the restrictive covenants, security agreement and certain other terms of
the revolving credit facility, is further collateralized by the Company's
property, plant and equipment, and becomes due and payable if the Company
terminates its revolving credit facility.
The Company's credit agreements contain restrictive covenants including a
prohibition against the payment of dividends without lender consent and certain
minimum working capital and net worth requirements.
Note 5 - Pension costs:
Variances from actuarial assumptions, including the rate of return on
pension plan assets, result in additional increases or decreases in accrued
pension costs, deferred taxes, stockholders' deficit, pension expense and
minimum funding requirements in future periods.
During the early 1980's the Company received permission from the Internal
Revenue Service (the "IRS") to defer certain annual pension plan contributions
aggregating $32 million. At September 30, 1994, the remaining balance of such
deferred contributions was approximately $11.3 million. The deferred amounts,
with interest, are payable to the plans through 2000 and are collateralized by a
lien on all of the Company's assets.
Note 6 - Income taxes:
The difference between the provision for income taxes and the amounts that
would be expected using the U.S. federal statutory income tax rate is primarily
related to state income taxes and, in the nine-month period ended September 30,
1993, nondeductible excise taxes of approximately $3 million (see Note 7). In
addition, the 1993 periods include a $1.3 million tax benefit representing an
adjustment of cumulative deferred taxes resulting from the Omnibus Budget
Reconciliation Act, enacted in August 1993.
<TABLE>
<CAPTION>
Deferred tax
assets (liabilities)
December 31, September 30,
1993 1994
(In thousands)
<S> <C> <C>
Tax effect of temporary differences relating to:
Inventories $ 1,623 $ 1,630
Property and equipment (11,845) (10,722)
Accrued pension cost 18,206 17,761
Accrued OPEB cost 40,396 40,838
Other accrued liabilities and deductible
differences 6,978 6,360
Other taxable differences (583) (583)
Net operating loss carryforwards 2,376 671
Alternative minimum tax credit carryforwards 6,342 7,576
Valuation allowance (30,000) (30,000)
Net deferred tax asset 33,493 33,531
Less current deferred tax asset 5,437 3,896
Noncurrent deferred tax asset $ 28,056 $ 29,635
</TABLE>
There was no change in the valuation allowance during the first nine months
of 1993 or 1994.
Note 7 - Excise tax settlement:
As discussed in the Annual Report, the Company satisfied a portion of its
1983 and 1984 funding obligations to the Keystone Master Pension Trust (the
"Keystone Trust") with contributions of certain real property that the IRS
contended were prohibited transactions. In May 1993, the U.S. Supreme Court
reversed lower court decisions favorable to the Company and ruled the
contributions were prohibited transactions. The case was remanded to the Tax
Court to determine the amount due. During 1993, the Company accrued an
aggregate of $7.1 million for the estimated cost of the 5% nondeductible excise
taxes ($3.2 million) and related interest ($3.9 million). In addition, to avoid
a second tier $9.6 million excise tax, the Company made a "correction" payment
of $2.3 million to its pension plans in June 1993.
In June 1994, the Company and the IRS agreed on the amount due and entered
into a Closing Agreement which was approved by the Tax Court in July 1994.
Pursuant to the terms of the Closing Agreement, the Company made an additional
"correction" payment of approximately $3.3 million to its pension plans in June
1994, and agreed to pay a total of $3.1 million in excise taxes and interest, in
three equal installments, over a two-year period beginning in June 1994. As a
result, the nine-month period ended September 30, 1994 includes a $4 million
reduction in previously accrued expenses related to this matter.
Note 8 - Contingencies - environmental matters:
As discussed in the Annual Report, the Company is involved in the disposal
of radioactive electric furnace dust at its Peoria, Illinois facility. In July
1994, the Company entered into a disposal agreement with a licensed waste
disposal facility to receive, treat and dispose of the contaminated dust. The
Company is in the process of shipping the contaminated dust to the disposal
facility which is currently constructing treatment facilities. The disposal
facility has represented that treatment and disposal will be completed by
January 1995. The net cost to the Company of this matter was accrued
principally in 1992 and 1993.
As discussed in the Annual Report, the United States has filed an action
against five potential responsible parties ("PRPs"), including a former
subsidiary of the Company, seeking to recover investigation and remediation
costs incurred by the United States Environmental Protection Agency ("U.S. EPA")
at the Byron Salvage Yard, located in Byron, Illinois. Neither the Company nor
the other designated PRPs have performed an investigation of the nature and
extent of the contamination at the Byron Site. U.S. EPA has possession of the
site and conducted the remedial investigation, but has not yet released a
feasibility study that would enable the PRPs to identify or estimate the cost of
an appropriate remedy or remedies. In July 1993, the U.S. EPA made available
for inspection records evidencing approximately $10 million in investigation and
remediation costs incurred at the site and produced copies of the laboratory
results of groundwater samples taken as a part of the remedial investigation.
During the second quarter of 1994, U.S. EPA released its remedial investigation
study showing soil contamination, however U.S. EPA has not completed a
feasibility study or risk assessment for the site. Until U.S. EPA releases its
final Record of Decision, the Company will not know whether U.S. EPA will
require any further remediation measures. The Company accrued its $500,000
estimated share of the documented investigation and remediation costs during
1993.
There were no other significant changes in the status of environmental
matters during the first nine months of 1994.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES:
The Company's cash flows from operating activities are affected by the
seasonality of its business as sales of certain products used in the
agricultural and construction industries are typically highest during the second
quarter and lowest during the fourth quarter of each year. Changes in working
capital levels result primarily from the relative timing of production, sales,
and purchases and net changes in receivables, inventories and accounts payable
provided $4.1 million of cash in the 1993 period and used $2.2 million of cash
in the 1994 period. Comparative scrap costs and inventory levels contributed to
the fluctuation in cash provided by, or used in, operating activities relative
to these items.
Pension contributions during the first nine months of 1994 amounted to $15
million, an increase of $3.5 million from the 1993 period. An additional $5.1
million will be contributed during the remainder of 1994 for a total of $20.1
million compared to $15 million in 1993. The higher pension contributions in
1994 include $3 million of planned contributions in excess of minimum funding
requirements. Pension contributions for 1994 and 1993 include $3.3 million and
$2.3 million, respectively, resulting from settlement of the excise tax
litigation. Cash used by operating activities during the first nine months of
1994 also included a $1 million excise tax payment (see Note 7 to the
Consolidated Financial Statements).
At September 30, 1994, the Company had working capital of $9.5 million.
Notes payable and current maturities of long-term debt, deductions in the
computation of such working capital, aggregated $11.3 million at September 30,
1994, and included outstanding borrowings of $7.1 million under the Company's
$35 million revolving credit facility. The amount of available borrowings is
based on formula-determined amounts of trade receivables and inventories, less
the amount of outstanding letters of credit. Additional borrowings available
under the revolving credit facility were $27.3 million at September 30, 1994.
The revolving credit facility requires that the Company's daily cash receipts be
used to reduce the outstanding borrowings, which results in the Company
maintaining zero cash balances. Borrowings under the revolving credit facility
currently mature December 31, 1996.
Capital expenditures for the first nine months of 1994 were $8.9 million and
are currently estimated to be approximately $12 million for the full year,
including approximately $3 million related to information processing systems at
the Company's Peoria, Illinois facility and $3 million for environmental items.
The seasonality of the Company's business and the uncertainty of the future
trend in scrap costs causes the Company to be cautious about the 1994 fourth
quarter, typically the lowest volume quarter, but the Company expects to be
profitable for the year 1994. Management has also budgeted profitable results
of operations for 1995 with sufficient cash flows from operations and financing
activities to meet its anticipated operating needs. This budget is based upon
management's assessment of various financial and operational factors including,
but not limited to, assumptions relating to product shipments, product mix,
foreign competition, and selling prices; production schedules; productivity
rates; raw materials, electricity, labor, employee benefit and other fixed and
variable costs; working capital requirements; interest rates; repayments of
long-term debt; capital expenditures; and available borrowings under the
Company's revolving credit facility. However, potential liabilities under
environmental laws and regulations with respect to the disposal and clean-up of
wastes beyond present estimates, any significant increases in the required
minimum fundings to the Company's pension funds or in the cost of providing
medical coverage to active and retired employees, could have a material adverse
affect on the future liquidity, financial condition and results of operations of
the Company. Additionally, any significant decline in the Company's markets or
market share, any inability to maintain satisfactory billet and rod production
levels, or any other unanticipated costs, if significant, could result in a need
for funds greater than the Company currently has available. There can be no
assurance the Company would be able to obtain an adequate amount of additional
financing.
RESULTS OF OPERATIONS:
The Company's operations are the manufacture and sale of carbon steel rod,
wire and wire products for agricultural, industrial, construction, commercial,
original equipment manufacturers and retail consumer markets. Historically, the
Company has experienced greater sales and profits during the first half of the
year due principally to the seasonality of sales in principal wire products
markets, including the agricultural and construction markets.
During the first nine months of 1994, billet production at the Peoria steel
mill of 492,000 tons approximated production in the 1993 period. As the
Company's billet production capacity is less than its rod production capacity,
the Company periodically purchases billets from other suppliers to increase the
utilization of the rod mill and thus assure the Company's ability to meet its
customers' orders. The decision to purchase billets depends on billet prices,
product demand and other market conditions. During the first nine months of
1994 the Company purchased 71,000 tons of billets compared to 88,000 tons
purchased in the first nine months of 1993. Due principally to the lower billet
purchases, the Company's 1994 steel rod production of 533,000 tons has declined
from 1993 production of 546,000 tons.
Net sales for the third quarter of 1994 increased $1.2 million, or 1.4%,
from the comparable 1993 period due largely to changes in product mix. Tons of
rod sold decreased 16.7% (75,000 tons compared to 90,000 tons), while tons of
wire and wire products sold increased 12.4% (109,000 tons compared to 97,000
tons). The increase in wire and wire products tonnage was principally due to
increased sales of wire. Wire and wire products selling prices during the third
quarter of 1994 were comparable to the selling prices during the same quarter in
1993, while rod selling prices decreased 2.5%. The decreases in rod selling
prices and tons of rod sold were primarily due to increased imports of lower
priced rod by U.S. consumers.
Net sales for the first nine months of 1994 increased $14.4 million, or
5.5%, from the comparable 1993 period as higher prices and a change in product
mix offset lower total tonnage. Tons of rod sold decreased 9.9% (228,000 tons
compared to 253,000 tons), while tons of wire and wire products sold increased
6.3% (335,000 tons compared to 315,000 tons) due principally to increased sales
of wire. Wire and wire products selling prices increased 2.1% and rod selling
prices increased 8.1% during the first nine months of 1994 as compared to the
first nine months of 1993.
Gross profit was $8.6 million for the third quarter of 1994, a decrease of
$.4 million from the comparable 1993 period, as gross profit margins declined to
9.9% from 10.4%. Gross profit was $27.9 million for the first nine months of
1994, an increase of $2.5 million, as year-to-date gross profit margins
increased to 10% from 9.6% one year ago. The decline in the third quarter gross
profit margin is primarily the result of lower rod selling prices and higher
costs for scrap steel, the Company's primary raw material. The comparative
gross profit margin improved during the 1994 nine-month period as higher product
selling prices and lower rod conversion costs offset the higher scrap costs and
the effects of inclement weather during the 1994 first quarter which resulted in
production outages and increased costs. Gross profit in the first nine months
of 1993 also reflected a second quarter charge of approximately $1.2 million for
a one-time payment of $1,000 per union member, pursuant to the May 1993
collective bargaining agreement with the Independent Steel Worker's Alliance
("ISWA") at the Company's Peoria, Illinois facility.
Scrap steel prices have risen significantly since the beginning of 1993, and
were approximately 8.7% and 19.6% higher during the third quarter and first nine
months, respectively, of 1994 as compared to the respective 1993 periods. The
Company currently expects scrap steel prices for the 1994 fourth quarter to
approximate third quarter prices.
Selling expenses, as a percentage of net sales, were comparable between the
1994 and 1993 periods. General and administrative expenses, as a percentage of
net sales, were comparable between third quarters of 1994 and 1993. For the
first nine months of 1994, general and administrative expenses were $13.2
million, representing a decrease of $2.6 million over the comparable 1993
amount. The first nine months of 1993 include a $3.2 million charge for excise
taxes resulting from the adverse U.S. Supreme Court decision. See Note 7 to the
Consolidated Financial Statements.
The difference between the provision for income taxes and the amounts that
would be expected using the U.S. federal statutory income tax rate is primarily
related to state income taxes and, in the 1993 nine-month period, the
nondeductible excise taxes of $3.2 million. In addition, the 1993 periods
include a $1.3 million tax benefit representing an adjustment of cumulative
deferred taxes resulting from the Omnibus Budget Reconciliation Act, enacted in
August 1993.
PART II.
ITEM 1. Legal Proceedings
Reference is made to disclosure provided under the caption "Current
litigation" in Note 14 to the Consolidated Financial Statements included in the
Annual Report.
Note 8 to the Consolidated Financial Statements is incorporated herein by
reference.
ITEM 6. Exhibits and Reports on Form 8-K.
(a) The following exhibit is included herein:
27.1 Financial Data Schedule for the nine month period ended
September 30, 1994
(b) Reports on Form 8-K filed during the quarter ended September 30, 1994:
None.
S I G N A T U R E S
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.
Keystone Consolidated Industries, Inc.
(Registrant)
Date: November 14, 1994 By /s/Harold M. Curdy
Harold M. Curdy
Vice President - Finance/Treasurer
(Principal Financial Officer)
Date: November 14, 1994 By /s/Bert E. Downing, Jr.
Bert E. Downing, Jr.
Corporate Controller
(Principal Accounting Officer)
S I G N A T U R E S
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.
Keystone Consolidated Industries, Inc.
(Registrant)
Date: November 14, 1994 By ___________________________________
Harold M. Curdy
Vice President - Finance/Treasurer
(Principal Financial Officer)
Date: November 14, 1994 By ___________________________________
Bert E. Downing, Jr.
Corporate Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM KEYSTONE CONSOLIDATED INDUSTRIES, INC.'S CONSOLIDATED FINANCIAL
STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1994, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH CONSOLIDATED FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> SEP-30-1994
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 45,626
<ALLOWANCES> 668
<INVENTORY> 34,943
<CURRENT-ASSETS> 85,348
<PP&E> 230,975
<DEPRECIATION> 150,923
<TOTAL-ASSETS> 210,598
<CURRENT-LIABILITIES> 75,887
<BONDS> 16,195
<COMMON> 6,313
0
0
<OTHER-SE> (53,982)
<TOTAL-LIABILITY-AND-EQUITY> 210,598
<SALES> 277,700
<TOTAL-REVENUES> 277,700
<CGS> 249,816
<TOTAL-COSTS> 249,816
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 233
<INTEREST-EXPENSE> (1,762)
<INCOME-PRETAX> 12,790
<INCOME-TAX> 4,986
<INCOME-CONTINUING> 7,804
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,804
<EPS-PRIMARY> 1.39
<EPS-DILUTED> 1.39
</TABLE>
