SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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) : April 24, 1998
NATIONAL-STANDARD COMPANY
(Exact name of Registrant as specified in its charter)
Indiana 1-3940 38-1493458
State or other jurisdiction (Commission File Number) (IRS Employer
Identification No.)
1618 Terminal Rd., Niles, MI 49120
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (616) 683-8100
ITEM 5. OTHER EVENTS
On April 24, 1998, Registrant issued a press release announcing its Second
Quarter Results. A copy of such press release is attached hereto as Exhibit
(99) and incorporated in this item by reference.
This press release contains forward looking statements, within the meaning of
the Private Securities Litigation Reform Act of 1995, relating to continued
improvement in U.K. operations, continued growth in weld wire sales, higher
sales of more value added products and cost reduction activities. These
statements are subject to risks and uncertainties, including, but not limited
to, the impact of competitive products and pricing, changes in product demand,
industry overcapacity, availability and cost of raw materials and changes in
economic conditions. Based upon changing conditions, should any one or more of
these risks or uncertainties materialize, actual performance results may vary
materially. The Company does not intend to update these forward looking
statements.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99 Registrant's press release dated April 24, 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.
NATIONAL-STANDARD COMPANY
By /s/ T.C. Wright
Its General Counsel and Secretary
Dated: April 24, 1998
EXHIBIT INDEX
Exhibit (99) - Registrant's press release dated April 24, 1998
Dated: April 24, 1998
Exhibit 99
[logo] National-Standard
Niles, Michigan 49120 616/683-8100
[NEWS RELEASE]
Niles, Michigan
Corporate Headquarters
For Additional Iformation
Contact W. D. Grafer
For Immediate Release
April 24, 1998
NATIONAL-STANDARD REPORTS SECOND QUARTER RESULTS
National-Standard Company announced sales for the second quarter ended March 31,
1998 of $58.0 million, compared to $63.1 million reported for the same period
last year, according to Michael B. Savitske, President and Chief Executive
Officer. The decrease was due in part to lower sales in the U.K. subsidiary, a
direct result of the restructuring in the U.K. during Fiscal 1997. In North
America, sales declined in the air bag inflator filtration products and rubber
reinforcement products segments. The decline in air bag products follows the
decision to limit the sale of certain lower margin wire cloth products. The
decline in rubber reinforcement is due primarily to lower selling prices. These
declines, however, were partially offset by a 5 percent increase in weld wire
sales over the same period last year.
Net income for the second quarter was $.1 million, or 2 cents per share, versus
a net loss of $10.7 million, or $2.03 per share, for the same period last year.
Last year's second quarter loss includes a $9.9 million charge for restructuring
the Company's operations in the United Kingdom. The restructuring continues to
have a positive impact on 1998 results. Operating profit in the U.K. continues
to improve over last year on significantly lower sales. Continued improvement is
expected for the remainder of the year.
For the first six months of 1998, sales were $114.9 million with a net income of
$.3 million, or $.06 per share, compared to sales of $123.0 million with a net
loss of $10.0 million, or $1.88 per share, in the year earlier period.
"The second quarter was marked by continued success in our QS-9000 registration
activities and significant progress in implementing constraint management and
team training, all of which are critical for continuous improvement in our
performance," said Michael B. Savitske, President and Chief Executive Officer.
"The new air bag materials facility in Peterlee, England shipped its first
production quantities in March. Sales from this facility are expected to be $3.0
million for our fiscal year. Also, our modernization and capacity addition
activities are progressing well. The first phase of new machinery installation
began in the second quarter. Additional equipment will be delivered over the
summer.
"While the UK restructuring has had a positive impact on the UK net income,
results have been adversely affected by lower sales prices as a direct result of
the continued strength of the pound sterling. We do expect full year operating
results for the unit to be considerably better than last year.
"Domestically, our focus remains on achieving QS-9000 registration for all
facilities, continuing to manage manufacturing constraints to generate the
capacity needed to meet the growth in weld wire, and continuous improvement in
both manufacturing costs and product quality. Weld wire sales were down a bit
early in the second quarter. We achieved our lead time reduction objectives as
manufacturing throughput increased as a result of constraint management and
capacity increases. As a result, our customers were able to adjust their
ordering patterns and reduce inventory. The second quarter ended very strong as
additional sales growth was made possible by capacity increases. Year-to- date
weld wire sales are nine percent above last year."
Founded in 1907, National-Standard is a Niles, Michigan based firm with annual
sales of approximately $250 million. In ten operating facilities throughout the
world, the Company manufactures and distributes a broad range of wire and wire-
related products, including tire bead wire and welding wire, in addition to wire
cloth and fabricated filters for the automotive air bag industry.
This press release may contain forward-looking statements as defined under the
Private Securities Litigation Reform Act of 1995. Cautionary statements
accompanying these forward-looking statements are set forth, along with this
release, in a Form 8-K filed with the Securities and Exchange Commission.
<TABLE>
<CAPTION>
Financial Highlights
National-Standard Company and Subsidiaries
($000 except per share amounts)
For three months ended March 31: 1998 1997
<S> <C> <C>
Net Sales $ 57,959 $ 63,127
Operating Income/(Loss) 954 (9,397)
Net Income/(Loss) 127 (10,687)
Income/(Loss) Per Share .02 (2.03)*
Average Shares Outstanding 5,233,542 5,272,000
For six months ended March 31 1998 1997
Net Sales $114,900 $123,001
Operating Income/(Loss) 1,879 (7,752)
Net Income/(Loss) 333 (9,950)
Income/(Loss) per Share .06 (1.88)*
Average Shares Outstanding 5,231,066 5,291,854
* The three- and six-month periods ended March 1997 per share data of $(2.03)
and $(1.88) respectively, includes $(1.87) per share and $(1.86) per share
related to the restructuring charge.
</TABLE>
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