SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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): October 18, 1995
NATIONAL STEEL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
1-98325-0687210
(Commission File Number)(IRS Employer Identification No.)
4100 EDISON LAKES PARKWAY, MISHAWAKA, INDIANA 46545-3440
(Address of principal executive offices) (Zip Code)
Registrant s telephone number, including area code: (219) 273-7000
ITEM 5. OTHER EVENTS
National Steel Corporation issued a press release on October
18, 1995 announcing its third quarter and year to date 1995
earnings.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
20.1 Press release dated October 18, 1995
SIGNATURE
Pursuant to the requirement 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 STEEL CORPORATION
By: /s/ Carl M. Apel
Carl M. Apel
Corporate Controller, Accounting
and Assistant Secretary
EXHIBIT INDEX
Exhibit Description
20.1 Press Release dated October 18, 1995
- ---------------------------------------------------------------------------
NEWS RELEASE
Media Contact: Robert R. Toothman
(219) 273-7552 or (412) 391-1469
Analyst/Investor Contact: Joseph A. Rainis
(219) 273-7158
NATIONAL STEEL REPORTS THIRD QUARTER RESULTS
MISHAWAKA, IN, OCTOBER 18, 1995--National Steel
Corporation (NYSE:NS) today reported income from
operations, excluding unusual items, of $19.4 million and
$126.9 million for the third quarter and first nine
months of 1995, respectively. This compares to operating
income of $21.6 million and $12.2 million for the
comparable 1994 periods.
Sales for the third quarter of 1995 rose 6% to $725
million from $684 million in the 1994 period. Shipments
increased to 1,336,000 net tons, 2% above the 1,316,000
net tons shipped in the third quarter of 1994. Raw steel
production rose 17% to 1,532,000 net tons from the year-
earlier period level of 1,311,000 net tons, primarily due
to improved operating practices.
Our ten-fold increase in operating income so far this
year not only reflects higher average selling prices but
also the efforts we have made to improve the stability of
our operations, said National Steel President and Chief
Executive Officer V. John Goodwin. The combined
effects, however, of a decline in spot market prices
over the past two quarters and higher operating costs
associated with the upgrade of the pickle line and cold
mill, in order to facilitate the startup of the new
coating line under construction at Granite City, have
contributed to the disappointing third quarter results.
Operating profit per net ton shipped of $19 in the third
quarter is an unsatisfactory performance, noted the
chief executive.
Third quarter net income was $21.0 million, or $0.42 per
share, compared to $62.4 million, or $1.64 per share, for
the same 1994 period. Results for the current period
included an extraordinary item associated with the early
retirement of debt, while the 1994 period included a net
gain related to the reopening of the National Steel
Pellet Company (NSPC). Excluding the effects of these
items, net income totaled $15.6 million for the third
quarter of 1995 and $19.8 million for the third quarter
of 1994.
Excluding nonrecurring items, net income for the first
nine months of 1995 totaled $94.2 million, or $2.02 per
share, compared to a loss of $9.2 million, or $0.48 per
share, for the same period of 1994. Excluded from the
1995 period was a charge for the reduction in the
salaried workforce, which occurred during the first
quarter, and the extraordinary item related to the early
retirement of debt which occurred in the third quarter.
Similarly, net income for the 1994 period excludes a gain
from the settlement of a litigation judgment and the
reopening of NSPC, items which favorably impacted net
income by $150.5 million during the first nine months of
1994.
Sales for the first nine months of 1995 increased 13% to
$2.2 billion over the same period a year ago. Shipments
for the first nine months of 1995 rose 7% to 4,106,000
net tons and raw steel production rose 8% during the
first nine months to 4,455,000 net tons.
Mr. Goodwin also noted that net income from current
operations of $94 million for the first nine months of
1995 already exceeds any annual level achieved by the
company since it was restructured in 1984. Despite this
accomplishment, we don t expect shipments in the fourth
quarter to differ materially from the third quarter, and
we continue to see downward pressure in spot market
prices that will adversely impact our expectations for
the fourth quarter, the chief executive concluded.
Headquartered in Mishawaka, Indiana, National is the
nation's fourth largest integrated steel company, with
annual shipments of approximately five and one-half
million tons of flat rolled products. National employs
approximately 9,400 people.
The company's consolidated income summary follows:
National Steel Corporation
Statements of Consolidated Income
For the Three and Nine Month Periods Ended
September 30, 1995 and 1994
(In millions, except per share data)
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
1995 1994 1995 1994
_________________________________________
Net Sales $724.8 $683.6 $2,214.1 $1,957.0
Cost of products sold 634.5 593.1 1,874.0 1,738.6
Selling, general and administrative 36.8 33.9 108.4 101.5
Depreciation, depletion and
amortization 36.7 34.6 108.9 104.3
Equity (income) loss of affiliates (2.6) 0.4 (4.1) 0.4
Unusual items 0.0 (59.1) 5.3 (59.1)
_________________________________________
Income from Operations 19.4 80.7 121.6 71.3
Other (Income) Expense
Financing costs (net) 8.9 14.1 30.4 44.5
_________________________________________
Litigation judgment 0.0 0.0 0.0 (111.0)
8.9 14.1 30.4 (66.5)
_________________________________________
Income Before Income Taxes
and Extraordinary Item 10.5 66.6 91.2 137.8
Income tax provision (credit) (5.1) 4.2 0.6 (3.5)
_________________________________________
Income Before Extraordinary Item 15.6 62.4 90.6 141.3
Extraordinary item, net of
applicable income tax 5.4 0.0 5.4 0.0
_________________________________________
Net Income 21.0 62.4 96.0 141.3
Less preferred stock dividends 2.7 2.7 8.2 8.2
_________________________________________
Net Income Applicable
to Common Stock $18.3 $59.7 $87.8 $133.1
=========================================
PER SHARE DATA APPLICABLE TO COMMON STOCK:
Income Before Extraordinary Item $0.30 $1.64 $1.94 $3.66
Extraordinary item 0.12 0.00 0.12 0.00
_________________________________________
Net Income Applicable to Common Stock 0.42 1.64 2.06 3.66
SFAS 106 transition obligation 0.10 0.11 0.30 0.33
_________________________________________
Adjusted Net Income per Weighted
Average Common Outstanding Shares $0.52 $1.75 $2.36 $3.99
=========================================
Weighted Average Shares Outstanding
(in thousands) 43,286 36,370 42,513 36,364
Operating Statistics (in thousands of tons)
Shipments 1,336 1,316 4,106 3,824
Production 1,532 1,311 4,455 4,106
