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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): April 21, 1997
NATIONAL STEEL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-983 25-0687210
(Commission File Number) (IRS Employer Identification No.)
4100 Edison Lakes Parkway, Mishawaka, IN 46545-3440
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 219-273-7000
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ITEM 5. OTHER EVENTS
National Steel Corporation issued a press release on April 21, 1997 reporting
first quarter 1997 earnings. A copy of this press release is attached hereto as
Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibit 99.1 Press release dated April 21, 1997.
SIGNATURE
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 STEEL CORPORATION
Date: April 30, 1997 By: /s/Carl M. Apel
------------------------------------
Carl M. Apel
Vice President - Finance
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EXHIBIT 99.1
News Release
- ------------
Media Contact: Leon L. Judd
(219) 273-7631
Analyst/Investor Contact: Joseph A. Rainis
(219) 273-7158
NATIONAL STEEL REPORTS IMPROVED FIRST QUARTER EARNINGS
Mishawaka, IN, April 21, 1997--National Steel Corporation (NYSE: NS) today
reported net income for the first quarter of 1997 totaling $25.9 million, or
$0.53 per common share, compared to a loss of $15.6 million, or $0.42 per
share, for the first quarter of 1996.
Operating income also increased in the first quarter of 1997, totaling $36.7
million as compared to a loss from operations of $12.2 million for the same
period in 1996. Net sales for the quarter rose 11% from the year-earlier period
to $758 million in the first quarter of 1997, while shipments set a first
quarter record of 1.52 million net tons, or an increase of 6%.
"Our performance improved during the first quarter despite higher natural gas
prices and a less favorable product mix as well as costs associated with the
upgrade of a coating line at the Midwest Division. We ended the quarter very
strong and expect demand for our products to remain robust in the second
quarter," said National Steel Chairman and Chief Executive Officer Osamu
Sawaragi.
"Our operating profit per ton shipped of $28 was our best in nearly two years.
Operational stability was a key to our performance and I am very encouraged by
the efforts of our employees in achieving these results," concluded the chief
executive.
-more-
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Last week, the Company announced the proposed sale of its coke oven battery at
its Great Lakes Division, a transaction which is expected to generate
unrestricted proceeds of approximately $225 million of which $157 million of the
proceeds will be used to repay the outstanding indebtedness on the coke battery.
Along with the sale of its minority equity interest in Iron Ore Company of
Canada, a transaction which generated proceeds of approximately $85 million, the
Company's balance sheet has been strengthened considerably. Both transactions
represent the continuation of a strategy to deploy assets more effectively.
All statements contained in this release, other than historical information, are
forward-looking statements. A variety of factors could cause business
conditions and the Company's actual results and experience to differ materially
from those expected by the Company or expressed in the Company's forward-looking
statements. Additional information concerning these factors is available in the
Company's most recent report on Form 10-K for the year ended December 31, 1996.
Headquartered in Mishawaka, Indiana, National Steel is the nation's fourth
largest integrated steel company, with annual shipments of approximately six
million tons of flat rolled products. National employs approximately 9,500
people.
The company's consolidated income statement and condensed balance sheets and
cash flows follow:
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National Steel Corporation
Statements of Consolidated Income (Unaudited)
(In millions, except per share data)
<TABLE>
<CAPTION>
Three Months
Ended March 31,
1997 1996
-------------------
<S> <C> <C>
Net Sales $ 757.6 $ 682.1
Cost of products sold 654.3 628.9
Selling, general and administrative 31.6 31.4
Depreciation, depletion and amortization 35.1 36.3
Equity income of affiliates (0.1) (2.3)
-------------------
Income (Loss) from Operations 36.7 (12.2)
Financing costs (net) 8.2 8.8
-------------------
Income (Loss) before Income Taxes 28.5 (21.0)
Income tax provision (credit) 2.6 (5.4)
-------------------
Net Income (Loss) 25.9 (15.6)
Less preferred stock dividends 2.7 2.7
-------------------
Net Income (Loss) Applicable to Common Stock $ 23.2 ($18.3)
===================
PER SHARE DATA APPLICABLE TO COMMON STOCK:
Net Income (Loss) Applicable to Common Stock $ 0.53 ($0.42)
SFAS 106 transition obligation 0.10 0.10
-------------------
Adjusted Net Income (Loss) per Weighted Average
Common Outstanding Shares $ 0.63 ($0.32)
===================
Weighted Average Shares Outstanding (in thousands) 43,288 43,288
Operating Statistics (in thousands of tons)
Shipments 1,521 1,436
Production 1,634 1,666
</TABLE>
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NATIONAL STEEL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions)
<TABLE>
<CAPTION>
March 31, December 31, March 31, December 31,
1997 1996 1997 1996
--------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Assets Liabilities and
Stockholders'
equity
Cash and cash equivalents $ 135.0 $ 109.0 Current liabilities $ 574.1 $ 573.8
Receivables - net 288.1 279.9 Long term debt 453.9 470.3
Other long term
Inventories 411.8 436.0 liabilities 857.2 847.5
-------- -------- -------- --------
Total current assets 834.9 824.9 Total liabilities 1,885.2 1,891.6
Property, plant and Redeemable
equipment - net 1,463.9 1,455.5 preferred stock 63.1 63.5
Other assets 264.6 266.6 Stockholders' equity 615.1 591.9
-------- -------- -------- --------
Total Liabilities
Total Assets $2,563.4 $2,547.0 and Equity $2,563.4 $2,547.0
======== ======== ======== ========
</TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1997 1996
----------------------------
<S> <C> <C>
Cash from operations $ 90.7 $ 61.0
Investing Activities:
Purchases of property, plant
and equipment (net) (43.3) (31.2)
Financing Activities:
Repayment of debt (15.6) (15.0)
Preferred stock dividends (1.2) (1.0)
Other (4.6) (5.8)
----- ------
(21.4) (21.8)
----- ------
Increase in Cash
and Cash Equivalents 26.0 8.0
Cash and Cash Equivalents,
Beginning of the Period 109.0 127.6
----- ------
Cash and Cash Equivalents,
End of the Period $135.0 $135.6
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