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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 29, 1998
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 29, 1998 announcing
first quarter 1998 results, quarterly common stock dividend and Board of
Director approval for construction of a new coating line. 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 29, 1998.
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, 1998 By: /s/John A. Maczuzak
-------------------
John A. Maczuzak
President and Chief Operating Officer
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Exhibit 99.1
News Release
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Media Contact: Leon L. Judd
(219) 273-7631
Analyst/Investor Contact: Joseph A. Rainis
(219) 273-7158
NATIONAL STEEL ANNOUNCES FIRST QUARTER 1998 RESULTS, DIVIDEND PAYMENT AND NEW
COATING LINE
Mishawaka, IN, April 29, 1998--National Steel Corporation (NYSE: NS) today
reported net income of $5.9 million for the first quarter of 1998, or $0.14 per
diluted common share, compared to first quarter of 1997 net income of $26.7
million, or $0.55 per diluted common share. Earnings in the current period were
negatively impacted by a planned major blast furnace reline and associated lower
shipping volumes, lower sales prices, the effects of a late winter storm that
negatively affected operations, particularly at the Midwest Steel Division, and
an unplanned outage at National Steel Pellet Company.
The blast furnace reline contributed to reduced operating levels in the first
quarter of 1998 as both shipments and raw steel production fell compared to the
same 1997 period. Shipments fell by approximately 100,000 tons to 1.42 million
tons while raw steel production totaled 1.57 million tons in this year's first
quarter. For the same period of 1997, shipments totaled 1.52 million tons and
raw steel production totaled 1.63 million tons. Operating income totaled $1.8
million in the first quarter of 1998 compared to the year-earlier level of $36.9
million as the reduced shipping level and higher costs associated with the items
mentioned earlier significantly impacted results. The effects from these higher
costs were primarily confined to the first quarter although the blast furnace
reline will also impact the second quarter as it resumed production earlier this
week.
"Our performance in the first quarter was disappointing as the effects from the
planned blast furnace reline at our Great Lakes Division significantly impacted
our results in the first quarter," said Osamu Sawaragi, National's chairman and
chief executive officer. "We remain very confident about the future, however,
as demand for our products continues at a strong level and we expect improved
performance for the balance of 1998," concluded the chief executive.
-more-
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The Company also announced that its Board of Directors has approved funds for
the construction of a new coating line that will serve the automotive market.
Mr. Sawaragi said the Company is presently studying possible sites and
finalizing design for the facility. The facility will produce hot dip
galvanized product and will have an annual capacity of approximately 450,000
tons. "Our continued good performance and strong financial position gives us
the opportunity to continue our strategy of growing our value added products.
At the same time, the addition of this line will enable us to better serve our
critical automotive customers," Mr. Sawaragi said.
In addition, construction of a new coating line at the Midwest Steel Division
has progressed on schedule. Cold runs were completed earlier this month and
prime production is expected to begin in early May. The facility will serve the
construction market with approximately 270,000 tons of coated product and enable
National to increase its mix of value-added products.
The Company also said its board of directors declared a quarterly common stock
dividend of $0.07 per share, payable on June 10, 1998, to shareholders of record
on May 22, 1998.
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 Form 10-K for the year ended December 31, 1997.
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 Steel employs approximately 9,400
people. Visit National Steel's website at: www. nationalsteel.com.
The Company's consolidated income statement and condensed balance sheets and
cash flows follow:
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National Steel Corporation
Consolidated Statements of Income (Unaudited)
(In millions, except per share data)
<TABLE>
<CAPTION>
Three Months
Ended March 31,
1998 1997
------------------ ------------------
<S> <C> <C>
Net Sales $ 708.4 $ 757.6
Cost of products sold 637.4 653.2
Selling, general and administrative expense 38.0 32.4
Depreciation 31.1 35.2
Equity (income) loss of affiliates 0.1 (0.1)
------------------ ------------------
Income from Operations 1.8 36.9
Financing costs (net) 0.8 8.2
------------------ ------------------
Income before Income Taxes 1.0 28.7
Income tax provision (credit) (4.9) 2.0
------------------ ------------------
Net Income 5.9 26.7
Less preferred stock dividends --- 2.7
------------------ ------------------
Net Income Applicable to Common Stock $ 5.9 $ 24.0
================== ==================
Basic Earnings Per Share:
Net Income Applicable to Common Stock $ 0.14 $ 0.55
Weighted average shares outstanding (in thousands) 43,288 43,288
Diluted Earnings Per Share:
Net Income Applicable to Common Stock $ 0.14 $ 0.55
================== ==================
Weighted average shares outstanding (in thousands) 43,325 43,306
Operating Statistics (in thousands of tons)
Shipments 1,419 1,521
Production 1,573 1,634
</TABLE>
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NATIONAL STEEL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
----------- ------------
Assets
<S> <C> <C>
Cash and cash equivalents
and investments $ 291.9 $ 337.6
Receivables - net 269.7 284.3
Inventories 387.1 374.2
Deferred tax assets 8.6 8.6
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Total current assets 957.3 1,004.7
Property, plant and
equipment - net 1,235.2 1,229.0
Other assets 229.3 219.8
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Total Assets $2,421.8 $2,453.4
============ ===========
March 31, December 31,
1998 1997
------------ -----------
Liabilities and
Stockholders'
equity
Current liabilities $ 607.9 $ 637.4
Long term debt 304.2 311.0
Other long term
liabilities 669.8 668.0
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Total liabilities 1,581.9 1,616.4
Stockholders' equity 839.9 837.0
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Total Liabilities
and Equity $2,421.8 $2,453.4
========= ========
</TABLE>
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited)
(In millions)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1998 1997
--------- ---------
<S> <C> <C>
Cash from operations $ 27.0 $90.4
Investing Activities:
Purchases of property, plant
and equipment (net) (37.3) (43.0)
Financing Activities:
Repayment of debt (14.6) (15.6)
Borrowings 7.2 --
Preferred stock dividends -- (1.2)
Common stock dividends (3.0) --
Other -- (4.6)
--------- ---------
(10.4) (21.4)
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Increase (Decrease) in Cash
and Cash Equivalents (20.7) 26.0
Cash and cash equivalents at
the beginning of the period 312.6 109.0
--------- ---------
Cash and cash equivalents at
the end of the Period $291.9 $135.0
========= =========
</TABLE>
