<PAGE>
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 JUNE 29, 1996
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 JULY 31, 1996
Common Stock, $.01 Par Value, 14,793,312
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
Consolidated Statements of Earnings
(Dollars and shares in thousands except per share amounts)
<TABLE>
<CAPTION>
SECOND QUARTER YEAR-TO-DATE
Thirteen Weeks Ended Twenty-six Weeks Ended
June 29, July 1, June 29, July 1,
1996 1995 1996 1995
- ---------------------------------------------------------------------------- ----------- ------------- -----------
<S> <C> <C> <C> <C>
Net Sales $ 255,955 271,825 520,127 531,782
Operating Costs and Expenses
Cost of products sold 236,343 237,733 488,807 466,420
Selling and administrative expenses 13,042 14,918 27,866 29,205
Unusual item - work force reduction provision (Note 5) 10,782 - 10,782 -
- ---------------------------------------------------------------------------- ----------- ------------- -----------
Total operating costs and expenses 260,167 252,651 527,455 495,625
Operating Earnings (Loss) (4,212) 19,174 (7,328) 36,157
Interest expense 4,045 3,824 7,895 6,184
- ----------------------------------------------------------------------------- ----------- ------------- -----------
Earnings (Loss) Before Income Taxes (8,257) 15,350 (15,223) 29,973
Income tax expense (benefit) (Note 7) (2,524) 5,803 (5,115) 11,330
- ----------------------------------------------------------------------------- ----------- ------------- -----------
Net Earnings (Loss) $ (5,733) 9,547 (10,108) 18,643
- ---------------------------------------------------------------------------------------------------------------------
Dividend requirements for preferred stock (500) (494) (996) (984)
Net Earnings (Loss) Applicable to Common Stock $ (6,233) 9,053 (11,104) 17,659
- ---------------------------------------------------------------------------------------------------------------------
Earnings (Loss) Per Common Share
Primary $ (.42) .61 (.75) 1.19
Fully diluted $ (.42) .57 (.75) 1.12
Common Shares and Equivalents Outstanding
Primary 14,780 14,858 14,768 14,805
Fully diluted 16,257 16,380 16,247 16,352
Cash Dividends on Common Stock - Per Share $ .25 .25 .50 .50
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statements.
1
<PAGE>
Consolidated Balance Sheets
(Dollars in thousands)
<TABLE>
<CAPTION>
June 29, December 30,
1996 1995
- --------------------------------------------------------------------------------------------------------------------- -----------
<S> <C> <C>
Assets
Current Assets
Cash and cash equivalents $ 6,780 11,056
Receivables, less allowance of $7,618 in 1996 and $6,632 in 1995 123,348 130,601
Inventories
Products finished and in process 138,631 131,886
Raw materials 30,470 26,240
Supplies 4,686 4,999
------------------------------------------------------------------------------------------------------------- -----------
173,787 163,125
Deferred income taxes (Note 7) 9,184 8,442
Prepaid expenses and other 1,196 1,667
------------------------------------------------------------------------------------------------------------- -----------
Total current assets 314,295 314,891
Plant and Equipment (Note 2) 945,876 908,379
Less accumulated depreciation 402,314 378,947
------------------------------------------------------------------------------------------------------------- -----------
Net plant and equipment 543,562 529,432
Intangible Assets, net of accumulated amortization of $8,095 in 1996
and $7,076 in 1995 (Note 2) 85,122 57,861
Deferred Income Taxes (Note 7) 24,306 16,301
Other Assets 1,273 1,178
------------------------------------------------------------------------------------------------------------- -----------
Total Assets $ 968,558 919,663
----------------------------------------------------------------------------------------------------------------------------
Liabilities and Stockholders' Investment
Current Liabilities
Accounts payable $ 109,710 121,923
Accrued employment costs 49,953 53,688
Other accrued expenses 27,670 22,209
Current maturities of long-term debt (Note 8) 3,910 10,850
------------------------------------------------------------------------------------------------------------- -----------
Total current liabilities 191,243 208,670
Long-Term Debt (Note 8) 265,952 217,339
Retirement Benefits (Note 6)
Pensions 69,687 39,275
Medical and life insurance 147,625 146,401
Other Liabilities 10,298 9,259
------------------------------------------------------------------------------------------------------------- -----------
Total liabilities 684,805 620,944
Commitments and Contingencies (Note 9)
Stockholders' Investment
Series preferred stock, 1,000,000 shares authorized
Series B ESOP convertible preferred 29,432 29,665
(490,535 shares outstanding in 1996 and 494,413 in 1995)
Common stock, 40,000,000 shares authorized and 15,813,259 issued (Note 3) 158 158
Capital in excess of par value 85,802 85,204
Earnings invested 198,439 216,934
Foreign currency translation adjustments (1,115) (1,141)
Deferred compensation - ESOP (Note 8) (16,836) (19,404)
Repurchased stock, at cost (1,028,938 shares in 1996 and 1,077,305 in 1995) (12,127) (12,697)
------------------------------------------------------------------------------------------------------------- -----------
Total stockholders' investment 283,753 298,719
------------------------------------------------------------------------------------------------------------- -----------
Total Liabilities and Stockholders' Investment $ 968,558 919,663
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statements.
2
<PAGE>
Consolidated Statements of Cash Flows
(Dollars in thousands)
<TABLE>
<CAPTION>
YEAR-TO-DATE
Twenty-six Weeks Ended
June 29, July 1,
1996 1995
- --------------------------------------------------------------------------- --------------
<S> <C> <C>
Operating Activity
Net earnings (loss) $ (10,108) 18,643
Adjustments to Reconcile Net Earnings (Loss) to
Cash Flow (Used for) From Operating Activity
Depreciation and amortization 24,441 20,879
Income taxes deferred (8,747) 2,341
Provision for uncollectible accounts 4,293 4,793
Retirement benefit funding less than expense 12,966 6,924
Changes in working capital affecting operations
Accounts receivable 2,960 (22,529)
Inventories (10,662) (22,360)
Prepaid expenses and other 471 287
Accounts payable (12,209) 5,359
Accrued expenses (7,536) (6,135)
Other, net 1,236 431
- --------------------------------------------------------------------------- --------------
Cash flow (used for) from operating activity (2,895) 8,633
Financing Activity
Long-term debt
Proceeds from issuance of notes 74,538 -
Other borrowed - 47,550
Other repaid (30,349) (15,304)
Dividends paid (8,562) (9,162)
Proceeds from stock options exercised 802 183
Other, net (537) (9)
- --------------------------------------------------------------------------- --------------
Net from financing activity 35,892 23,258
Investing Activity
Capital expenditures (36,824) (48,883)
Proceeds from sale of assets/subsidiaries 400 17,007
Other, net (849) (4,062)
- --------------------------------------------------------------------------- --------------
Net for investing activity (37,273) (35,938)
Cash and Cash Equivalents
Increase (decrease) (4,276) (4,047)
Start of period 11,056 9,806
- --------------------------------------------------------------------------- --------------
End of period $ 6,780 5,759
- -------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these statements.
3
<PAGE>
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. The preparation of our financial statements in
conformity with generally accepted accounting principles requires estimates
and assumptions that affect the reported amounts and contingency
disclosures. These financial statements should be read in conjunction with
the financial statements and related notes in the 1995 Annual Report to
Stockholders. Results from any interim period are not necessarily
indicative of the results for a full year.
2. Accounting Changes
In 1996, Lukens adopted Statement of Financial Accounting Standards (SFAS)
No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-
Lived Assets to Be Disposed Of." This statement requires review and
measurement methods to calculate impairment of long-lived assets, including
certain identifiable intangible assets and goodwill. The statement also
requires that long-lived assets to be disposed of be reported at the lower
of the carrying amount or fair value less costs to sell. The adoption of
the statement, based on conditions existing at the beginning of the year,
did not require a write-down of assets.
In 1996, Lukens will also adopt SFAS No. 123, "Accounting for Stock-Based
Compensation." This statement provides for an implementation option,
reflecting the controversy surrounding the measurement of compensation
expense for stock options and other stock-based compensation. One option
is to recognize compensation expense in the consolidated financial
statements using a fair-value based method, applied to virtually all stock-
based compensation. The alternative would not change the current
intrinsic-value approach to expense recognition, but would require pro
forma disclosure in the notes to the consolidated financial statements
using the fair-value method. We plan on adopting the pro forma disclosure
option in the 1996 Annual Report to Stockholders, which will not have a
material effect on our consolidated financial condition or results of
operations.
3. Stock Options
At the Annual Meeting of Stockholders on April 24, 1996, stockholders
approved an amendment to the 1985 Stock Option and Appreciation Plan that
increased the number of shares of common stock available for issuance by
900,000 to a maximum of 2,737,500.
4. Business Group Reporting
With the continued integration of our facilities, effective in 1996
business group results are reported on a product line basis. The new
groups are the Carbon & Alloy Group and the Stainless Group. Prior year
results have been restated to conform with these business groups.
4
<PAGE>
5. Unusual Item
During the second quarter of 1996, Lukens announced a work force reduction
program of approximately 150 salaried positions. The program was primarily
aimed at reducing costs by integrating administrative functions.
Termination benefits accrued and charged to expense in the second quarter
totaled $10,782. On an after-tax basis, the provision reduced results by
$6,859, or $.46 per common share.
The components of the charge included severance related benefits of $6,784.
Severance benefits are anticipated to be paid during the second half of
1996 and during 1997. Pension related benefits included $3,998 from the
combination of pension plan benefits that are triggered at termination and
from the recognition of a curtailment loss. Pension benefits were measured
at a 7.75 percent discount rate.
6. Retiree Benefits - Retiree Health & Life Insurance Benefits
As required under the new contract for the bargaining unit employees at the
Coatesville, Pennsylvania, plant, a Voluntary Employees' Beneficiary
Association (VEBA) Trust was established to provide funding for retiree
medical benefit and life insurance programs. The trust agreement requires
an annual contribution of $2,500 for the next four years. The initial
contribution was made on July 1, 1996.
7. Income Taxes
Because of the unusual nature of the work force reduction provision, the
tax impact of 36.4 percent was recognized separately in the second quarter
income tax provision. Excluding the work force provision, an effective
rate of 27.1 percent was applied to 1996 first half results. Year-to-date
results were used to develop the effective tax rate.
8. Financial Instruments - Long-term Debt
The Employee Stock Ownership Plan (ESOP) term loan, guaranteed by Lukens,
is recognized as debt in the Consolidated Balance Sheets. In June 1996,
the quarterly payments of the ESOP debt were restructured to align
anticipated benefits with the release of Lukens Inc. preferred stock.
Payments are now projected to end in 2000, instead of 1998.
9. 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.
5
<PAGE>
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
(Dollars in thousands)
Changes in Financial Condition during
the Twenty-six Weeks Ended June 29, 1996
Capital Structure
Cash and cash equivalents totaled $6,780 at the end of the second quarter, a
decrease of $4,276 from the end of 1995. Working capital of $123,052 was up
$16,831 from the balance at the end of 1995. Lower current liabilities
contributed to the working capital increase. The current ratio was 1.6 compared
to 1.5 at year-end 1995.
Included in Intangible Assets and Retirement Benefits - Pensions was $25,570 of
pension minimum liabilities recognized during the first quarter. The additional
minimum liabilities resulted from a new labor contract for the Coatesville,
Pennsylvania, facility.
Debt at the end of the second quarter was $269,862, an increase of $41,673 from
the beginning of the year. The increase reflected the issuance of $75,000 of
Medium-Term Notes, Series A, under a $100,000 shelf registration completed in
June 1994. The notes are due in February 2006 and are rated BBB+ by Standard
and Poor's and Baa2 by Moody's. Interest is paid semi-annually and the notes
carry a coupon rate of 6.5 percent with an effective rate of 6.585 percent. Net
proceeds were primarily used to repay the outstanding balance of revolving
credit agreements. The ratio of long-term debt to capital (long-term debt plus
stockholders' investment) was 48.4 percent, which compared to 42.1 percent at
year-end 1995.
At the Annual Meeting of Stockholders on April 24, 1996, stockholders approved a
900,000 increase in the number of shares of common stock available for issuance
under the 1985 Stock Option and Appreciation Plan, increasing the total to
2,737,500.
Liquidity
Operating activity required cash of $2,895 for the first half compared to cash
generated from operations of $8,633 in the first half of 1995. Cash
requirements in 1996 were primarily due to lower results.
Financing activity generated $35,892. Proceeds from the issuance of the notes
discussed in the Capital Structure section above were offset by net repayments
of $30,349 and dividend payments of $8,562. Investing activity required
$37,273, primarily for capital expenditures of $36,824.
Improving cash flow from operations in 1996 to reach the 1995 level is dependent
on improving earnings and reducing inventory. Earnings in the second half of
the year are anticipated to be limited by weak conditions in the stainless steel
market. The market was impacted by increased imported product, which put
pressure on prices in 1996. The trend is expected to continue at
6
<PAGE>
least through the third quarter. Improved operations from the Steckel Mill
Advanced Rolling Technology (SMART/(R)/) system should be a positive factor
during the balance of the year.
During the second quarter, coiled plate production increased and a variety of
carbon and alloy plate products were released for commercial production on the
SMART system. The wide anneal & pickle line project is expected to be ready for
production in the second half of 1996.
Order backlog was $154,000 at the end of the second quarter, which was 14
percent higher than year-end 1995 order backlog and 21 percent lower than at the
same time last year.
In the long term, Lukens relies on the ability to generate sufficient cash flows
from operating activity to fund investing and financing requirements and to
maintain a target long-term debt-to-capital ratio of 35 percent. Because of our
aggressive capital expenditure program, we continue to exceed our target long-
term debt-to-capital ratio. The projected benefits of the program should
improve cash flow from operations and enable us to reach our target in the long
term.
Results of Operations for the Quarters Ended
June 29, 1996 and July 1, 1995
Operating Results
The second quarter operating loss of $4,212 compared to operating earnings of
$19,174 in the second quarter of 1995. The loss was the result of a $10,782
work force reduction provision recorded in the second quarter. Excluding the
provision for comparison purposes, second quarter operating earnings were
$6,570, down 66 percent from 1995. The Stainless Group primarily contributed to
the decrease due to a highly competitive stainless steel market, which put
substantial pressure on base selling prices. Although to a lesser extent, the
Carbon & Alloy Group results continued to be impacted by the start-up of the
SMART system.
Sales for the second quarter were $255,955, down 6 percent from 1995 sales of
$271,825. The decrease resulted from lower sales in the Stainless Group,
partially offset by improvements in the Carbon & Alloy Group.
Interest Expense
Interest expense of $4,045 was up 6 percent compared to 1995 expense of $3,824.
The increase primarily related to higher debt levels, partially offset by higher
amounts of capitalized interest in 1996.
7
<PAGE>
Income Tax Expense (Benefit)
The effective tax rate was 30.6 percent in 1996 and 37.8 percent in 1995.
Because of the unusual nature of the work force reduction provision, the tax
impact of 36.4 percent was recognized separately in the second quarter income
tax provision. Excluding the work force provision, an effective rate of 27.1
percent was applied to 1996 first half results. Year-to-date results were used
to develop the effective tax rate.
Net Earnings (Loss)
A net loss of $5,733 was recorded for the second quarter of 1996 compared to net
earnings of $9,547 for the same period in 1995. On an after-tax basis, the work
force reduction provision reduced results by $6,859 in 1996.
<TABLE>
<CAPTION>
Business Group Results
Operating
Net Sales Earnings (Loss)
2Q 1996 2Q 1995 2Q 1996 2Q 1995
--------- ------- -------- --------
<S> <C> <C> <C> <C>
Carbon & Alloy $125,395 116,283 1,287 2,146
Stainless 130,560 155,542 (812) 21,160
Corporate - - (4,687) (4,132)
-------- ------- ------ ------
$255,955 271,825 (4,212) 19,174
======== ======= ====== ======
</TABLE>
Carbon & Alloy Group
Net sales increased 8 percent. The increase was largely attributable to a 12
percent increase in shipments, particularly in the carbon steel product line.
Shipped tons were 170,300 tons in 1996 compared to 151,900 tons in 1995.
Earnings for the second quarter were down 40 percent. Included in second
quarter earnings was a work force reduction charge of $6,178. Excluding the
unusual charge, earnings of $7,465 were three-times higher than the comparable
period last year. Although to a lesser extent, results continued to be impacted
by production disruptions and expenses associated with the commissioning of the
SMART system.
Stainless Group
Highly competitive conditions in the stainless steel market led to a 16 percent
decrease in sales. Increases in imported products contributed to weakened base
selling prices. Shipments increased 9 percent, from 64,000 tons in 1995 to
69,700 tons in 1996. However, excluding lower-value conversion tonnage,
shipments were down slightly from last year.
8
<PAGE>
The group recorded a loss in the second quarter, which resulted from a work
force reduction charge of $3,695. Excluding the work force reduction provision,
earnings of $2,883 were down 86 percent. Lower margins due to a less favorable
shipment mix and lower selling prices contributed to the earnings erosion.
Results of Operations for the Twenty-six Weeks Ended
June 29, 1996 and July 1, 1995
Operating Results
The first half operating loss of $7,328 compared to operating earnings of
$36,157 in 1995. Included in 1996 results was a work force reduction provision
of $10,782. Excluding the provision for comparison purposes, operating earnings
were $3,454, down 90 percent from 1995. The Stainless Group primarily
contributed to the decrease due to a highly competitive stainless steel market,
which put substantial pressure on base selling prices. The Carbon & Alloy Group
results were impacted by higher utility costs caused by severe weather and by
signing bonuses associated with a new labor contract for the Coatesville,
Pennsylvania, facility.
Sales for the first half of $520,127 were 2 percent behind 1995 sales of
$531,782. The decrease resulted from weak business conditions in the Stainless
Group, partially offset by improvements in the Carbon & Alloy Group.
Interest Expense
Interest expense of $7,895 was up 28 percent compared to 1995 expense of $6,184.
Higher debt levels primarily contributed to the increase.
Income Tax Expense (Benefit)
The effective tax rate was 33.6 percent in 1996 and 37.8 percent in 1995.
Because of the unusual nature of the work force reduction provision, the tax
impact of 36.4 percent was recognized separately in the second quarter income
tax provision. Excluding the work force provision, an effective rate of 27.1
percent was applied to 1996 first half results. Year-to-date results were used
to develop the effective tax rate.
Net Earnings (Loss)
A net loss of $10,108 in 1996 compared to net earnings of $18,643 in 1995. On
an after-tax basis, the work force reduction provision reduced results by $6,859
in 1996.
9
<PAGE>
<TABLE>
<CAPTION>
Business Group Results
Operating
Net Sales Earnings (Loss)
YTD 1996 YTD 1995 YTD 1996 YTD 1995
--------- -------- --------- ---------
<S> <C> <C> <C> <C>
Carbon & Alloy $246,822 223,163 (4,373) 4,275
Stainless 273,305 308,619 5,773 41,099
Corporate - - (8,728) (9,217)
-------- ------- ------ ------
$520,127 531,782 (7,328) 36,157
======== ======= ====== ======
</TABLE>
Carbon & Alloy Group
Net sales for the first half increased 11 percent. The increase was largely
attributable to a 15 percent increase in shipments, particularly in the carbon
steel product line. Shipped tons were 339,200 tons in 1996 compared to 296,000
tons in 1995.
The group recorded a loss for the first half of 1996 primarily due to a work
force reduction charge of $6,178. Before the provision, earnings of $1,805 were
down 58 percent from 1995. Also impacting 1996 results was a $3,756 charge for
signing bonuses associated with the new labor agreement at the Coatesville,
Pennsylvania, facility, higher utility costs caused by severe weather and strike
preparation costs. Although to a lesser extent, results continued to be
impacted by production disruptions and expenses associated with the
commissioning of the SMART system.
Stainless Group
Weak stainless steel market conditions led to an 11 percent decrease in sales.
Inventory corrections by our customers during the first half and increased
imported products significantly reduced cold-rolled stainless shipments and
selling prices across product lines. A lower-value shipment mix also contri-
buted to the decrease. Shipments for the first half increased 5 percent, from
133,400 tons in 1995 to 140,700 tons in 1996. The increase was primarily due to
lower-value conversion tonnage.
Earnings for the first half were down 86 percent. Included in first half
earnings was a work force reduction charge of $3,695. Excluding the unusual
charge for comparison purposes, earnings of $9,468 were down 77 percent. The
decline reflected a significant change in stainless steel market conditions as
previously discussed.
10
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
As of the end of the 1996 second quarter, 17 active claims remain of the total
394 workers' compensation hearing loss claims alleged against Lukens Steel
Company.
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 June 29, 1996.
11
<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.
August 7, 1996 /s/ R. W. Van Sant
------------------
R. W. Van Sant
Chairman and Chief Executive Officer
August 7, 1996 /s/ C. B. Houghton, Jr.
-----------------------
C. B. Houghton, Jr.
Vice President and Controller
12
<PAGE>
Exhibit 11
Computation of Earnings Per Common Share
(Dollars and shares in thousands except per share amounts)
<TABLE>
<CAPTION>
SECOND QUARTER YEAR-TO-DATE
Thirteen Weeks Ended Twenty-six Weeks Ended
June 29, July 1, June 29, July 1,
1996 1995 1996 1995
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
Primary Earnings (Loss) per Common Share
Net earnings (loss) applicable to common stock
Net earnings (loss) $ (5,733) 9,547 (10,108) 18,643
ESOP dividend requirements
Preferred stock dividends declared (588) (608) (1,180) (1,218)
Tax benefit on dividends - unallocated shares 88 114 184 234
--------- ---------- ----------- -----------
Net earnings (loss) applicable to common stock $ (6,233) 9,053 (11,104) 17,659
--------- ---------- ----------- -----------
Weighted average number of common shares and equivalents outstanding
Weighted average number of common shares outstanding 14,780 14,677 14,768 14,666
Common stock equivalents:
Stock options, assuming exercised at average market price - * 181 - * 139
--------- ---------- ----------- -----------
Weighted average number of common shares and
equivalents outstanding 14,780 14,858 14,768 14,805
--------- ---------- ----------- -----------
Primary Earnings (Loss) per Common Share $ (0.42) 0.61 (0.75) 1.19
========= ========== =========== ===========
Fully Diluted Earnings (Loss) per Common Share
Net earnings (loss) applicable to common stock
Net earnings (loss) $ - 9,547 - 18,643
Incremental cash contribution to the ESOP assuming conversion
of preferred stock to common - (228) - (457)
Tax benefit on the incremental cash contribution - 80 - 160
--------- ---------- ----------- -----------
Net earnings (loss) applicable to common stock $ - 9,399 - 18,346
--------- ---------- ----------- -----------
Weighted average number of common shares and equivalents outstanding
Weighted average number of common shares outstanding - 14,677 - 14,666
Common stock equivalents:
Stock options, assuming exercised at greater of ending
or average market price - 181 - 161
Series B ESOP preferred stock - 1,522 - 1,525
--------- ---------- ----------- -----------
Weighted average number of common shares and
equivalents outstanding - 16,380 - 16,352
--------- ---------- ----------- -----------
Fully Diluted Earnings (Loss) per Common Share $ (0.42)** 0.57 (0.75)** 1.12
========= ========== ============ ===========
</TABLE>
* Not applicable because it would result in an anti-dilutive
calculation.
** Fully diluted calculation is not presented because it is
anti-dilutive.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM LUKENS INC.
FINANCIAL STATEMENTS FOR THE TWENTY-SIX WEEKS ENDED JUNE 29, 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-28-1996
<PERIOD-START> DEC-31-1995
<PERIOD-END> JUN-29-1996
<CASH> 6,780
<SECURITIES> 0
<RECEIVABLES> 130,966
<ALLOWANCES> 7,618
<INVENTORY> 173,787
<CURRENT-ASSETS> 314,295
<PP&E> 945,876
<DEPRECIATION> 402,314
<TOTAL-ASSETS> 968,558
<CURRENT-LIABILITIES> 191,243
<BONDS> 265,952
0
29,432
<COMMON> 158
<OTHER-SE> 254,163
<TOTAL-LIABILITY-AND-EQUITY> 968,558
<SALES> 520,127
<TOTAL-REVENUES> 520,127
<CGS> 488,807
<TOTAL-COSTS> 488,807
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 4,293
<INTEREST-EXPENSE> 7,895
<INCOME-PRETAX> (15,223)
<INCOME-TAX> (5,115)
<INCOME-CONTINUING> (10,108)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (10,108)
<EPS-PRIMARY> (0.75)
<EPS-DILUTED> (0.75)
</TABLE>
