UNITED STATES
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 24, 1994
OR
Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Commission File Number 1-3258
LUKENS INC.
50 South First Avenue, Coatesville, PA 19320-0911
(610) 383-2000
Incorporated in Delaware
I.R.S. Employer Identification Number 23-2451900
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
SHARES OUTSTANDING AS OF NOVEMBER 1, 1994
Common Stock, $.01 Par Value, 14,622,494
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
Lukens Inc.
Consolidated Statements of Earnings
(Dollars & shares in thousands except per share amounts)
<TABLE>
<CAPTION>
THIRD QUARTER YEAR-TO-DATE
13 Weeks Ended 39 Weeks Ended
September September September September
24, 1994 25, 1993 24, 1994 25, 1993
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net Sales $ 231,463 211,405 694,589 659,392
Operating Costs and Expenses
Cost of products sold 202,959 183,776 624,304 574,224
Selling and administrative expenses 12,595 14,709 39,667 40,784
-------- -------- -------- --------
Total operating costs and expenses 215,554 198,485 663,971 615,008
-------- -------- -------- --------
Operating Earnings 15,909 12,920 30,618 44,384
Interest income 15 10 33 35
Interest expense (3,846) (4,061) (11,858) (12,385)
-------- -------- -------- --------
Earnings Before Income Taxes 12,078 8,869 18,793 32,034
Income tax expense (Note 4) 4,710 3,097 7,329 12,068
-------- -------- -------- --------
Earnings from Continuing Operations-
Before Cumulative Effect of
1993 Accounting Changes 7,368 5,772 11,464 19,966
Discontinued Operations (Note 2)
Earnings from operations, net of tax - 2,177 - 3,690
-------- -------- -------- --------
Earnings Before Cumulative Effect
of 1993 Accounting Changes 7,368 7,949 11,464 23,656
Cumulative Effect of 1993 Accounting
Changes, Net of Tax
Postretirement benefits-SFAS No. 106 - - - (67,222)
Income taxes-SFAS No. 109 - - - 1,321
-------- -------- -------- --------
Net Earnings (Loss) $ 7,368 7,949 11,464 (42,245)
======== ======== ======== ========
Dividend requirements for
preferred stock (498) (463) (1,503) (1,403)
-------- -------- -------- --------
Net Earnings (Loss) Applicable
to Common Stock $ 6,870 7,486 9,961 (43,648)
======== ======== ======== ========
Earnings (Loss) Per Common Share
Primary
Earnings before cumulative effect
of 1993 accounting changes $ 0.47 0.51 0.68 1.50
Net earnings (loss) $ 0.47 0.51 0.68 (2.95)
Fully diluted
Earnings before cumulative effect
of 1993 accounting changes $ 0.44 0.48 0.67 1.41
Net earnings (loss) $ 0.44 0.48 0.67 (2.95)
Common Shares and Equivalents Outstanding
Primary 14,774 14,799 14,739 14,798
Fully diluted 16,356 16,425 16,342 16,427
Cash Dividends on Common Stock-
Per Share $ 0.25 0.25 0.75 0.75
The accompanying notes are an integral part of these statements.
</TABLE>
Lukens Inc.
Consolidated Balance Sheets
(Dollars in thousands)
<TABLE>
<CAPTION>
September December
24, 1994 25, 1993
---------- ----------
<S> <C> <C>
Assets
Current Assets
Cash and cash equivalents $ 10,647 11,483
Receivables, less allowance of $10,800
in 1994 and $11,444 in 1993 132,045 114,951
Inventories
Products finished and in process 94,039 121,437
Raw materials 29,135 32,596
Supplies 4,883 6,027
---------- ----------
128,057 160,060
Deferred income taxes 14,641 15,070
Prepaid expenses and other 4,547 6,175
---------- ----------
Total current assets 289,937 307,739
---------- ----------
Plant and Equipment 809,930 789,780
Less accumulated depreciation 360,602 357,927
---------- ----------
Net plant and equipment 449,328 431,853
---------- ----------
Intangible Assets, net of accumulated amortization
of $5,447 in 1994 and $9,817 in 1993 49,761 54,594
Deferred Income Taxes 21,362 20,498
Other Assets 2,456 2,494
---------- ----------
Total Assets $ 812,844 817,178
========== ==========
Liabilities and Stockholders' Investment
Current Liabilities
Accounts payable $ 79,414 75,540
Accrued employment costs 46,298 52,339
Other accrued expenses 26,073 28,005
Current maturities of long-term debt 7,055 5,821
---------- ----------
Total current liabilities 158,840 161,705
---------- ----------
Long-term Debt (Note 3) 209,688 220,768
Retirement Benefits
Pensions 23,252 19,055
Medical and life insurance 140,580 136,056
Other Liabilities 10,571 12,840
---------- ----------
Total Liabilities 542,931 550,424
---------- ----------
Commitments and Contingencies (Note 5)
Stockholders' Investment
Series preferred stock, 1,000,000 shares authorized
Series B ESOP convertible preferred
(519,273 shares outstanding in 1994 and
541,123 in 1993) 31,156 32,467
Common stock, 40,000,000 shares authorized
and 15,813,259 issued 158 158
Capital in excess of par value 83,751 82,625
Earnings invested 193,017 193,977
Foreign currency translation adjustments (903) (1,641)
Deferred compensation - ESOP (23,557) (26,209)
Repurchased stock, at cost (1,193,613 shares
in 1994 and 1,284,273 in 1993) (13,709) (14,623)
---------- ----------
Total stockholders' investment 269,913 266,754
---------- ----------
Total Liabilities and Stockholders' Investment $ 812,844 817,178
========== ==========
The accompanying notes are an integral part of these statements.
</TABLE>
Lukens Inc.
Consolidated Statements of Cash Flows
(Dollars in thousands)
<TABLE>
<CAPTION>
YEAR-TO-DATE
39 Weeks Ended
September September
24, 1994 25, 1993
---------- ----------
<S> <C> <C>
Operating Activity
Net earnings (loss) $ 11,464 (42,245)
Adjustments to Reconcile Net Earnings (Loss) to
Cash Flow from Operating Activity
Depreciation and amortization 33,223 34,046
Cumulative effect of 1993 accounting changes - 65,901
Income taxes deferred 2,369 1,355
Provision for uncollectible accounts 7,852 10,413
Retirement benefit funding less (greater)
than expense 10,251 (1,784)
Changes in working capital affecting operations
Accounts receivable (36,835) (15,462)
Inventories 16,593 1,637
Prepaid expenses and other 1,246 (5,715)
Accounts payable 8,072 5,671
Accrued expenses (12,932) (4,577)
Other, net (1,083) 969
---------- ----------
Cash flow from operating activity 40,220 50,209
Financing Activity
Long-term debt
Borrowed 15,100 17,415
Repaid (22,338) (15,337)
Dividends paid (12,860) (12,832)
Proceeds from stock options exercised 581 1,545
---------- ----------
Net for financing activity (19,517) (9,209)
Investing Activity
Capital expenditures (79,116) (39,969)
Proceeds from sale of assets/subsidiaries 57,182 -
Other, net 395 (207)
---------- ----------
Net for investing activity (21,539) (40,176)
Cash and Cash Equivalents
Increase (decrease) (836) 824
Start of period 11,483 14,970
---------- ----------
End of period $ 10,647 15,794
========== ==========
The accompanying notes are an integral part of these statements.
</TABLE>
SELECTED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands except per share amounts)
1. Basis of Presentation
The financial statements are unaudited but reflect all adjustments
(consisting of normal recurring accruals) which are, in the opinion
of management, necessary to a fair statement of the results for the
interim periods presented. These financial statements should be
read in conjunction with the financial statements and related notes
in the 1993 Annual Report to Stockholders. Results from any
interim period are not necessarily indicative of the results for a
full year.
2. Discontinued Operations
As part of a program, adopted in 1993, to focus Lukens' resources
on its steel businesses, the subsidiaries previously reported in
the Corrosion Protection Group, Safety Products Group and most
subsidiaries in the Diversified Group were reported as discontinued
operations.
At the end of the third quarter, net proceeds from the divestiture
of discontinued operations totaled $56,649. Net assets of these
subsidiaries at year-end 1993 were $56,225. Subsequent to the end
of the third quarter, the cathodic protection subsidiary was sold.
With that sale, one subsidiary, our pipe-coating business, remains
from the 1993 discontinued operations. This subsidiary is actively
being marketed.
In 1994, results from discontinued operations and divestiture gains
or losses are being charged against the discontinued operations
loss provision established in the fourth quarter of 1993.
Operating results for the third quarter 1994 included net sales of
$17,540 and net earnings of $225. Year-to-date 1994 operating
results included net sales of $64,120 and a net loss of $416.
Net sales and income tax expense of the discontinued operations and
an earnings per common share reconciliation (before the cumulative
effect of accounting changes) for 1993 are as follows.
3Q 1993 YTD 1993
-------- --------
Net Sales $ 47,768 130,809
======== ========
Income Tax Expense $ 1,398 2,301
======== ========
Earnings Per Common Share - Primary
Continuing operations $ .36 1.25
Discontinued operations .15 .25
-------- --------
$ .51 1.50
======== ========
Earnings Per Common Share - Fully Diluted
Continuing operations $ .35 1.19
Discontinued operations .13 .22
-------- --------
$ .48 1.41
======== ========
Net assets of the remaining discontinued operations at the end of
the 1994 third quarter were $33,551.
3. Long-term Debt
During the third quarter of 1994, the term of our revolving credit
agreements was extended one year until September 30, 1997. These
agreements provide a $125,000 committed line of credit.
During June 1994, a shelf registration for $100,000 of Lukens Inc.
notes was completed. Although there are no immediate plans to
issue the notes, they are available as a financing option for our
five-year, $400,000 capital expenditure program that began in 1993
and other long-term liquidity needs. The notes are structured to
provide Lukens with flexibility in maturities, from nine months to
30 years, and flexibility in interest rate structures.
4. Income Tax Expense
In the third quarter of 1993, the Omnibus Budget Reconciliation Act
of 1993 was enacted. The act increased the top corporate tax rate
from 34 percent to 35 percent effective retroactive to January 1,
1993. As a result of the increase, income tax expense from
continuing operations in the 1993 third quarter was reduced by $727
from the revaluation of deferred tax assets and liabilities. Also
recognized in the third quarter income tax expense was the
retroactive impact of the higher tax rate.
5. Commitments and Contingencies
The company is party to various claims, disputes, legal actions and
other proceedings involving product liability, contracts, equal
employment opportunity, occupational safety, environmental issues
and various other matters. In the opinion of management, the
outcome of these matters should not have a material adverse effect
on the consolidated financial condition or results of operations of
the company.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
(Dollars in thousands)
Changes in Financial Condition during
the Thirty-nine Weeks Ended September 24, 1994
Capital Structure
Cash and cash equivalents totaled $10,647 at the end of the third
quarter, a decrease of $836 from the end of 1993. Working capital of
$131,097 was down $14,937 from the balance at the end of 1993.
Divestitures of certain discontinued operations caused a decrease in
working capital of $24,449. The current ratio was 1.8 compared to 1.9
at year-end 1993.
Debt at the end of the third quarter was $216,743, a decrease of
$9,846 from the beginning of the year. The decrease included
repayments of short-term notes under our revolving credit agreements
and repayment of a $3,000 industrial revenue bond, collateralized by
property owned by one of the discontinued operations. The ratio of
long-term debt to capital (long-term debt plus stockholders' invest-
ment) was 43.7 percent, which compared to 45.3 percent at year-end
1993.
During June 1994, a shelf registration for $100,000 of Lukens Inc.
notes was completed. Although there are no immediate plans to issue
the notes, they are available as a financing option for our five-year,
$400,000 capital expenditure program that began in 1993 and other
long-term liquidity needs. The notes are structured to provide
Lukens with flexibility in maturities, from nine months to 30 years,
and flexibility in interest rate structures. During the third quarter
of 1994, the term of our revolving credit agreements was extended one
year until September 30, 1997. These agreements provide a $125,000
committed line of credit.
Liquidity
Cash flow from operating activity was $40,220 for the first three
quarters of the year compared to 1993 cash flow of $50,209. Lower
results in 1994 and increased working capital requirements contributed
to the drop in cash flow from operating activity. We anticipate that
cash flow from operating activity will continue to benefit from
improving selling prices in the Lukens Steel Group and strong shipment
levels, evidenced by an order backlog that totaled $162,637, up 60
percent from the beginning of the year and 64 percent from the same
period last year. Higher scrap costs in the Lukens Steel Group
combined with lower selling prices and a less-profitable shipment mix
in the Washington Stainless Group are negative factors to cash flow
from operating activity in 1994. Overall, we expect 1994 cash flow
from operating activity to be in the range of 1993 cash flow.
Currently, the Washington Stainless Group is operating at full melting
capacity. Expansion of stainless steel melting, as part of our
capital expenditure program, will enable Lukens to better meet this
demand and match the anticipated long-term growth in stainless
markets.
Financing activity required $19,517 including dividend payments of
$12,860 and net debt repayments of $7,238. Investing activity
required $21,539 with proceeds from the discontinued operations
divestitures offset by capital expenditures of $79,116.
Capital expenditures in 1994 continue to be high, with expenditures
of approximately $127,000 projected. We anticipate funding the
balance of these expenditures through the combination of cash flow
from operations and proceeds from the sale of discontinued operations.
Start-up of the plate and sheet processing system at our facility in
Conshohocken, Pennsylvania, originally scheduled for late in 1994, has
been delayed until the end of the 1995 first quarter. 1995 earnings
will be limited by start-up expenses and production disruptions from
this project. The benefits of this system, including lower production
costs and an expanded product range, will likely not be realized until
late in 1995.
In the long term, Lukens relies on the ability to generate sufficient
cash flows from operating activity to fund investing and financing
requirements and maintain a target long-term debt to capital ratio of
35 percent. Because of our aggressive capital expenditure program,
however, we anticipate exceeding our target long-term debt to capital
ratio until the projected benefits of the program improve cash flow
from operations.
Results of Operations for the Quarters Ended
September 24, 1994 and September 25, 1993
Operating Results
Third quarter operating earnings of $15,909 were 23 percent above 1993
earnings of $12,920. Both business groups reported higher results for
the quarter. Higher earnings in the Lukens Steel Group primarily
reflected improved selling prices partially offset by higher scrap
costs. In the Washington Stainless Group, improved sales volume and
higher service center earnings contributed to an earnings improvement.
Corporate reported lower expenses for the quarter primarily due to
severance expenses recorded in 1993.
Sales for the third quarter were $231,463, up 9 percent from 1993
sales of $211,405, with both business groups contributing to the
increase.
Interest Expense
Interest expense of $3,846 was down 5 percent compared to 1993 expense
of $4,061.
Income Taxes
The effective tax rate was 39.0 percent in 1994 and 34.9 percent in
1993. The rate in 1993 included a favorable adjustment of $727
resulting from the enactment of a new tax bill discussed in Note 4.
Results From Continuing Operations
Higher operating results caused an increase in earnings from
continuing operations of 28 percent, from $5,772 in 1993 to $7,368 in
1994.
Discontinued Operations
Earnings from discontinued operations of $2,177 were recognized in
1993. In 1994, results from discontinued operations are being charged
against the loss provision established in the fourth quarter of 1993.
For more information on discontinued operations, see Note 2.
Net Earnings
Net earnings of $7,368 were down 7 percent compared to $7,949 in 1993.
Business Group Results
Operating
Net Sales Earnings (Loss)
3Q 1994 3Q 1993 3Q 1994 3Q 1993
-------- -------- -------- --------
Lukens Steel $ 113,955 109,384 9,024 8,114
Washington Stainless 120,517 102,021 10,775 9,473
Corporate - - (3,890) (4,667)
Inter-group eliminations ( 3,009) - - -
--------- --------- -------- --------
$ 231,463 211,405 15,909 12,920
========= ========= ======== ========
Lukens Steel Group
Higher selling prices led to a 4 percent increase in sales.
Shipments of 171,700 tons in 1994 were down slightly from the
174,000 tons shipped in 1993. Higher selling prices also led to an
11 percent increase in earnings. Although margins benefited from
improved selling prices, higher scrap costs continued to have a
negative impact.
Washington Stainless Group
Third quarter sales were up 18 percent with higher shipment levels
of sheet, strip, and plate products, combined with improved service
center sales, contributing to the sales increase. A lower-value
shipment mix partially offset the sales increase. Shipments were
up 42 percent from 51,000 tons in 1993 to 72,500 in 1994. Higher
shipments, combined with improved service center results, generated
a 14 percent increase in earnings. Margins continue to be impacted
by lower selling prices and a less-profitable shipment mix.
Results of Operations for the Thirty-nine Weeks Ended
September 24, 1994 and September 25, 1993
Operating Results
Operating earnings of $30,618 were down 31 percent compared to 1993
earnings of $44,384. Lower operating results were reported by both
business groups. Lukens Steel Group results were impacted by
increased scrap costs and production disruptions and maintenance costs
associated with severe weather conditions in the first quarter of
1994. The Washington Stainless Group experienced lower selling prices
in sheet and strip products and a less-profitable shipment mix.
Sales were up 5 percent, from $659,392 in 1993 to $694,589 in 1994.
Most of the sales increase was attributable to the Washington
Stainless Group which benefited from higher shipped tons.
Interest Expense
Interest expense of $11,858 was down 4 percent from 1993 expense of
$12,385. The decrease was primarily attributable to lower interest
rate swap expense.
Income Taxes
The effective tax rate was 39.0 percent in 1994 and 37.7 percent in
1993. The lower effective rate in 1993 included a favorable
adjustment of $727 resulting from the enactment of a new tax bill
discussed in Note 4.
Results From Continuing Operations
Lower operating earnings, particularly in the first quarter of 1994,
translated into a 43 percent decrease in earnings from continuing
operations. Earnings of $11,464 were reported in 1994 compared to
1993 earnings of $19,966.
Discontinued Operations
Earnings from discontinued operations of $3,690 were recognized in
1993. In 1994, results from discontinued operations are being charged
against the loss provision established in the fourth quarter of 1993.
For more information on discontinued operations, see Note 2.
Net Earnings
Net earnings of $11,464 were reported in 1994. In 1993, earnings
before the cumulative effect of accounting changes were $23,656.
Business Group Results
Operating
Net Sales Earnings (Loss)
YTD 1994 YTD 1993 YTD 1994 YTD 1993
-------- -------- -------- --------
Lukens Steel $ 346,507 336,524 16,697 27,234
Washington Stainless 357,137 322,868 25,802 29,661
Corporate - - (11,881) (12,511)
Inter-group eliminations ( 9,055) - - -
--------- --------- -------- --------
$ 694,589 659,392 30,618 44,384
========= ========= ======== ========
Lukens Steel Group
Sales for the first three quarters of 1994, which were 3 percent
higher than 1993 sales, benefited from higher selling prices.
Shipments of 534,700 tons in 1994 were slightly lower than the
538,700 tons shipped in 1993. Despite the improved sales, year-
to-date earnings declined 39 percent. The decline resulted from
several factors including higher scrap costs, and first quarter
production disruptions and maintenance costs associated with
severe weather conditions. Although scrap costs have moderated
since the beginning of the year, these costs are expected to
remain at relatively high levels. Earnings in 1994 are not
expected to exceed 1993 earnings before fourth quarter charges.
Washington Stainless Group
Year-to-date 1994 sales were up 11 percent. Sales improvements
at our service center operations and increased sales volumes in
sheet, strip, and plate products, were partially offset by lower
selling prices on certain products. Shipped tons of 196,900 in
1994 were 22 percent higher than 1993 shipped tons of 161,700.
Despite the higher shipment volume, lower selling prices and a
less-profitable shipment mix contributed to an earnings decline
of 13 percent. For the year, earnings are anticipated to be in
the range of 1993 earnings.<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
Legal proceedings regarding environmental remediation
liabilities were previously reported in the 1994 second
quarter Form 10-Q.
In addition to the information previously reported in the
1994 second quarter Form 10-Q, as of October 20, 1994, an
additional 124 workers' compensation claimants who had
alleged hearing loss against Lukens Steel Company released
their claims and received negotiated payments. In total,
238 of the approximately 350 claims have been released.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
(11) Statement regarding computation of per share earnings
(27) Financial Data Schedule
(b) Reports on Form 8-K
No report on Form 8-K was filed during the quarter ended
September 24, 1994.
<PAGE>
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.
LUKENS INC.
November 3, 1994 R. W. Van Sant
--------------
R. W. Van Sant
Chairman and Chief Executive
Officer
November 3, 1994 John N. Maier
-------------
John N. Maier
Vice President and Controller
Exhibit 11
Lukens Inc.
Computation of Primary Earnings Per Common Share
(Dollars and shares in thousands except per share amounts)
<TABLE>
<CAPTION> THIRD QUARTER YEAR-TO-DATE
13 Weeks Ended 39 Weeks Ended
September September September September
24, 1994 25, 1993 24, 1994 25, 1993
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net earnings (loss) applicable to
common stock
Earnings before cumulative effect
of 1993 accounting changes $ 7,368 7,949 11,464 23,656
ESOP dividend requirements
Preferred stock dividends declared (623) (650) (1,909) (1,953)
Tax benefit on dividends 125 187 406 550
-------- -------- -------- --------
Earnings before cumulative effect
of 1993 accounting changes
applicable to common stock 6,870 7,486 9,961 22,253
Cumulative effect of 1993 accounting
changes - - - (65,901)
-------- -------- -------- --------
Net earnings (loss) applicable
to common stock $ 6,870 7,486 9,961 (43,648)
======== ======== ======== ========
Weighted average number of common
shares and equivalents outstanding
Weighted average number of common
shares outstanding 14,599 14,519 14,565 14,502
Common stock equivalents:
Stock options, assuming exercised
at average market price 175 280 174 296
-------- -------- -------- --------
Weighted average number of common
shares and equivalents outstanding 14,774 14,799 14,739 14,798
======== ======== ======== ========
Primary earnings per common share
Earnings before cumulative effect
of 1993 accounting changes $ 0.47 0.51 0.68 1.50
Cumulative effect of 1993
accounting changes - - - (4.45)
-------- -------- -------- --------
Net earnings (loss) $ 0.47 0.51 0.68 (2.95)
======== ======== ======== ========
</TABLE>
Exhibit 11
Lukens Inc.
Computation of Fully Diluted Earnings Per Common Share
(Dollars and shares in thousands except per share amounts)
<TABLE>
<CAPTION> THIRD QUARTER YEAR-TO-DATE
13 Weeks Ended 39 Weeks Ended
September September September September
24, 1994 25, 1993 24, 1994 25, 1993
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net earnings (loss) applicable to
common stock
Earnings before cumulative effect
of 1993 accounting changes $ 7,368 7,949 11,464 23,656
Incremental cash contribution to
the ESOP assuming conversion of
preferred stock to common (234) (244) (716) (732)
Tax benefit on the incremental
cash contribution 80 101 249 288
-------- -------- -------- --------
Earnings before cumulative effect
of 1993 accounting changes
applicable to common stock 7,214 7,806 10,997 23,212
Cumulative effect of 1993
accounting changes - - - (65,901)
-------- -------- -------- --------
Net earnings (loss) applicable
to common stock $ 7,214 7,806 10,997 (42,689)
======== ======== ======== ========
Weighted average number of common
shares and equivalents outstanding
Weighted average number of common
shares outstanding 14,599 14,519 14,565 14,502
Common stock equivalents:
Stock options, assuming exercised
at greater of ending or average
market price 178 280 175 297
Series B ESOP preferred stock 1,579 1,626 1,602 1,628
-------- -------- -------- --------
Weighted average number of common
shares and equivalents outstanding 16,356 16,425 16,342 16,427
======== ======== ======== ========
Fully diluted earnings per common share
Earnings before cumulative effect
of 1993 accounting changes $ 0.44 0.48 0.67 1.41
======== ======== ======== ========
Net earnings (loss) $ 0.44 0.48 0.67 (2.95)*
======== ======== ======== ========
* Calculation results in an improvement over primary earnings per share.
As a result, fully diluted earnings per share equals primary earnings
per share.
</TABLE>
[ARTICLE] 5
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM LUKENS INC.
FINANCIAL STATEMENTS FOR THE THIRTY-NINE WEEKS ENDED SEPTEMBER 24, 1994 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
[/LEGEND]
[MULTIPLIER] 1,000
<TABLE>
<S> <C>
[PERIOD-TYPE] 9-MOS
[FISCAL-YEAR-END] DEC-31-1994
[PERIOD-START] DEC-26-1993
[PERIOD-END] SEP-24-1994
[CASH] 10,647
[SECURITIES] 0
[RECEIVABLES] 132,045
[ALLOWANCES] 10,800
[INVENTORY] 128,057
[CURRENT-ASSETS] 289,937
[PP&E] 809,930
[DEPRECIATION] 360,602
[TOTAL-ASSETS] 812,844
[CURRENT-LIABILITIES] 158,840
[BONDS] 209,688
[COMMON] 158
[PREFERRED-MANDATORY] 0
[PREFERRED] 31,156
[OTHER-SE] 238,599
[TOTAL-LIABILITY-AND-EQUITY] 812,844
[SALES] 694,589
[TOTAL-REVENUES] 694,589
[CGS] 624,304
[TOTAL-COSTS] 624,304
[OTHER-EXPENSES] 0
[LOSS-PROVISION] 7,852
[INTEREST-EXPENSE] 11,858
[INCOME-PRETAX] 18,793
[INCOME-TAX] 7,329
[INCOME-CONTINUING] 11,464
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 11,464
[EPS-PRIMARY] .68
[EPS-DILUTED] .67
</TABLE>
