SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 28, 1998
LUKENS INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 1-3258 23-2451900
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification Number)
50 South First Avenue, Coatesville, PA 19320-0911
(Address of principal executive offices) (Zip Code)
Registrant's Telephone number, including area code (610) 383-2000
Item 5. Other Events.
On April 28, 1998, Lukens Inc. ("Lukens") issued its earnings release
for its first fiscal quarter of 1998 which ended on March 28, 1998. A press
release, dated April 28, 1998, was issued by Lukens and is filed as an
exhibit hereto and incorporated by reference herein.
On April 29, 1998, the Board of Directors of Lukens declared a
dividend of $.25 per share of common stock, par value $.01 per share, of
Lukens ("Common Stock"), payable on May 15, 1998 to record holders of
shares of Common Stock on May 11, 1998. A press release, dated April 29,
1998, was issued by Lukens and is filed as an exhibit hereto and
incorporated by reference herein.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits.
99.1 Press Release of Lukens Inc. dated April 28, 1998
99.2 Press Release of Lukens Inc. dated April 29, 1998
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 hereunto duly authorized.
LUKENS INC.
Dated: April 29, 1998 By: /s/ William D. Sprague
___________________________
William D. Sprague
Vice President, General Counsel
and Secretary
INDEX TO EXHIBITS
Exhibit
Number Exhibit
99.1 Press Release of Lukens Inc. dated April 28, 1998
99.2 Press Release of Lukens Inc. dated April 29, 1998
EXHIBIT 99.1
[Letterhead of Lukens]
Contact:
Kate Pella
(610)383-3345
LUKENS REPORTS FIRST QUARTER LOSS
CARBON & ALLOY GROUP ACHIEVES RECORD SHIPMENT PERFORMANCE
IMPORTS, LOWER PRICES DRIVE STAINLESS OPERATING LOSS
COATESVILLE, PA., April 28, 1998 - - Lukens Inc. (NYSE: LUC) today
reported a 1998 first quarter net loss of $4.4 million, compared to a net
loss of $2 million in the first quarter of 1997. The loss per share was
$.33 for the quarter versus a $.17 loss per share in the previous year.
First quarter net sales were $258.3 million, up 4 percent from sales
of $248.1 million in 1997.
"A robust capital goods market, strong demand for our plate steel
products and outstanding operating results supported an excellent financial
performance at the Carbon & Alloy Group," said R.W. Van Sant, Lukens'
chairman and chief executive officer. "Our new manufacturing systems and
entire organization responded to surging order rates and we achieved record
carbon and alloy plate shipments."
Van Sant said despite the Carbon & Alloy Group's strong performance,
a consolidated operating loss was reported due to the company's stainless
steel business. "The unabated flow of imported stainless steel continued to
drive down domestic selling prices during the quarter, significantly
reducing margins," he said. "We also are experiencing a decline in order
rates as customers react to the previously announced sale of our stainless
operations."
BETHLEHEM STEEL MERGER EXPECTED TO CLOSE IN SECOND QUARTER
The company said it expects to complete its merger transaction with
Bethlehem Steel Corporation by the end of May. "We are very pleased with
the prospects for the new Bethlehem-Lukens Plate Division," said Van Sant.
"Our new capital projects and aggressive cost reduction initiatives will
contribute significant advantages as the division gears up to compete in
tomorrow's global steel markets." For example, weekly production at the new
SMART(R) system at Conshohocken, Pa., averaged about 8,400 prime tons
during the first quarter, up 22 percent over the previous year said Lukens'
chairman. "SMART production rose steadily through the quarter reaching
average rates of 9,700 prime tons per week by the end of the period and has
exceeded the 11,000-ton-per-week level."
Van Sant also applauded the March 31 filing of trade cases against
offshore, flat-rolled stainless steel producers. "We anticipate these suits
will ease the relentless flood of unfairly traded stainless coiled plate
from foreign producers that has so severely injured U.S. steel companies
and their employees."
CARBON & ALLOY GROUP REPORTS STRONG PERFORMANCE
The Carbon & Alloy Group reported first quarter operating earnings of
$16.2 million, more than double the operating earnings of $7.9 million
during the previous year. First quarter sales of $139.5 million were up 13
percent over 1997. Higher production levels, increased productivity and
cost reduction initiatives contributed to the results. The group achieved
record first quarter shipments of $207,900 tons, up 19 percent from 175,400
tons during the previous year.
STAINLESS GROUP POSTS OPERATING LOSS
The Stainless Group recorded a first quarter operating loss of $13.0
million versus an operating loss of $3.1 million in 1997. Depressed selling
prices and lower order rates across all product lines continued to weaken
results. First quarter sales were $118.9 million, down 5 percent from
$125.1 million in the previous year. Mill group shipments, including
shipments to Lukens' Washington Specialty Metals service center operations,
were 58,200 tons versus 64,200 tons in 1997.
Lukens Inc. is a leading North American specialty steel manufacturer
whose operating units supply carbon, alloy and clad plate steels; and
stainless steel sheet, strip and plate products.
LUKENS INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FIRST QUARTER
THIRTEEN THIRTEEN
WEEKS ENDED WEEKS ENDED
MARCH 28, 1998 MARCH 29, 1997
NET SALES $ 258,342,000 248,118,000
OPERATING COSTS AND EXPENSES
Cost of products sold 245,881,000 233,837,000
Selling and administrative expenses 14,371,000 12,386,000
------------ ------------
Total operating costs and expenses 260,252,000 246,223,000
OPERATING EARNINGS (LOSS) (1,910,000) 1,895,000
Interest expense 4,507,000 4,729,000
------------ ------------
EARNINGS (LOSS) BEFORE INCOME TAXES (6,417,000) (2,834,000)
Income tax expense (benefit) (2,034,000) (856,000)
----------- ------------
NET EARNINGS (LOSS) $ (4,383,000) (1,978,000)
============= ===============
EARNINGS (LOSS) PER COMMON SHARE
Basic $ (0.33) (0.17)
Diluted $ (0.33) (0.17)
COMMON SHARES & EQUIVALENTS OUTSTANDING
Basic 14,838,000 14,805,000
Diluted 16,532,000 16,251,000
LUKENS INC.
BUSINESS GROUP RESULTS
FIRST QUARTER
1998 1997
NET SALES
Carbon & Alloy Group $ 139,465,000 123,010,000
Stainless Group 118,877,000 125,108,000
-------------- -------------
$ 258,342,000 248,118,000
============== =============
OPERATING EARNINGS (LOSS)
Carbon & Alloy Group $ 16,187,000 7,896,000
Stainless Group (13,019,000) (3,066,000)
Corporate (5,078,000) (2,935,000)
-------------- -------------
$ (1,910,000) 1,895,000
============== =============
LUKENS INC.
OTHER INFORMATION
FIRST QUARTER
1998 1997
SHIPPED TONS
Carbon & Alloy Group 207,900 175,400
Stainless Group 66,900 71,200
QUARTER-END YEAR-END
1998 1997
BACKLOG
Carbon & Alloy Group $ 136,700,000 118,600,000
Stainless Group $ 41,400,000 48,400,000
CASH AND CASH EQUIVALENTS $ 6,138,000 6,629,000
DEBT
Current Maturities $ 6,622,000 6,276,000
Long-Term 247,030,000 244,671,000
------------ --------------
Total Debt $ 253,652,000 250,947,000
============ ==============
[LUKENS LETTERHEAD]
Contact: Kate G. Pella
610-383-3345
LUKENS DECLARES COMMON STOCK DIVIDEND
COATESVILLE, PA., April 29, 1998 - Directors of Lukens Inc. (NYSE:
LUC) today declared a dividend on the company's common stock of $.25 a
share, payable May 15, 1998, to stockholders of record on May 11, 1998.
Lukens Inc. is a leading North American specialty steel manufacturer
whose operating units supply carbon, alloy and clad plate steels; and
stainless steel sheet, strip and plate products.
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