SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported): July 30, 1998
LACLEDE STEEL COMPANY
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(Exact Name of Registrant as Specified in Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
0-3855
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(Commission File Number)
43-0368310
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(I.R.S. Employer Identification Number)
One Metropolitan Square
St. Louis, Missouri 63102
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: 314-425-1400
<PAGE>
Item 5. Other Events.
See Press Release attached as an Exhibit to this Report on Form 8-K.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
Exhibit No. Description of Exhibit
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99 Press Release dated July 30, 1998.
SIGNATURE
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 hereunto duly authorized.
LACLEDE STEEL COMPANY
(Registrant)
Date: July 30, 1998 By: /s/ Michael H. Lane
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Michael H. Lane
Vice President - Finance, Treasurer and
Secretary
NEWS RELEASE
from LACLEDE STEEL COMPANY
One Metropolitan Square
[LOGO] St. Louis, MO 63102-2738
Telephone: (314) 425-1505
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FOR RELEASE: July 30, 1998
CONTACT: Thomas E. Brew, Jr. Michael H. Lane
President and or Vice President-Finance
Chief Executive Officer (314) 425-1505
(314) 425-1460
ST. LOUIS, MISSOURI . . . Laclede Steel Company announced today that it
expects to report significant operating losses and unusual charges in the second
quarter of 1998.
Because of the magnitude of these losses, the Company today decided to
record a non-cash valuation allowance in excess of $45.0 million with respect to
deferred tax assets carried on the balance sheet at March 31, 1998.
Because of the first half operating losses, the Company does not expect to
have operating profits for the year. In addition, as a result of the recording
of the non-cash valuation allowance and other unusual charges, the Company will
have a negative net worth in excess of $60.0 million.
A decrease in contribution from the tubular products line is the single
most important factor in the negative operating results for the second quarter.
A decline in average selling prices for tubular products, as well as production
inefficiencies partially related to an inventory reduction program, adversely
affected performance.
Also a decision was made to increase maintenance expenditures above normal
levels at the Alton Plant in an effort to improve equipment reliability on an
ongoing basis. These unbudgeted maintenance expenditures have been charged to
operating expenses in the second quarter.
In addition to the deferred tax adjustment, the Company expects to record
unusual charges related to a planned restructuring program. As a first step the
Company plans to shut down its Memphis, Tennessee Wire Mill by the middle of
August. Management is in the process of soliciting buyers for the Memphis Plant
and Equipment. Additional details on the restructuring program will be announced
at a later date.
In addition, Joseph Alvarado, Robert A. Garvey and William R. Lucas, Jr.,
officers of Birmingham Steel Corporation, have announced their resignation from
the Board effective today. Messrs. Alvarado, Garvey and Lucas informed the Board
that they are doing so in order to permit the Company to independently engage in
its restructuring plans free of any potential conflict of interest.
Cautionary Statement. Matters discussed in this letter may be
forward-looking statements that are based on estimates, projections, beliefs and
assumptions or the Company's expectations concerning future events. The Company
cautions that these statements are qualified by important factors that could
cause actual results to differ materially from those in the forward- looking
statement, including, without limitation, the following: decline in sales prices
for steel prices; increases in the costs of ferrous scrap; increases in other
materials and costs of production; increases in financing costs; future
borrowing capacity; labor relations, and increased domestic or foreign steel
competition.
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