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UNITED STATES
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): January 27, 2000 (January 26,
2000)
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 January 26, 2000 announcing
it's fourth quarter 1999 results. 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 January 26, 2000.
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: January 27, 2000 By: /s/Glenn H. Gage
----------------
Glenn H. Gage
Senior Vice President and
Chief Financial Officer
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Exhibit 99.1
[LOGO NATIONAL STEEL]
NEWS RELEASE
- ------------
Media Contact: Clarence J. Ehlers
(219) 273-7327
Analyst and Joseph A. Rainis
Investor Contact: (219) 273-7158
NATIONAL STEEL ANNOUNCES RESULTS FOR FOURTH QUARTER 1999
Mishawaka, IN, January 26, 2000--National Steel Corporation (NYSE: NS) today
reported a net loss of $6.8 million for the fourth quarter of 1999, equivalent
to $0.17 per diluted common share, compared to net income of $18.8 million, or
$0.44 per diluted common share, for the fourth quarter of 1998. The Company
reported a net loss of $43.1 million, equivalent to $1.04 per diluted common
share, for the year ended 1999 compared to net income of $83.8 million, or $1.94
per diluted common share, for the prior year.
Operating income in the fourth quarter of 1999 totaled $0.2 million as compared
to $22.9 million in the fourth quarter of 1998. The decrease resulted primarily
from lower average selling prices and costs associated with numerous planned
maintenance outages despite improved operating performance. Net sales in the
fourth quarter rose 10.9% from the fourth quarter of 1998 to $759.9 million as
record shipments of 1.686 million tons more than offset an 11% decline in
average selling prices. Increases in transaction prices were more than offset
by changes in mix as larger volumes of hot rolled relative to other products
principally caused the decline in average selling prices.
Net sales of $2.85 billion in 1999 were nearly identical to the prior year as a
9% percent decline in average selling prices was offset by a 9% increase in
shipments. Raw steel production in 1999 totaled 6.25 million net tons compared
to 6.09 million net tons in 1998.
-more-
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"I am very pleased with the efforts that our employees took to minimize the
effect of numerous scheduled maintenance outages which affected our hot strip
mills, steelmaking vessels and most of our coating lines. Our shipments
increased to a record level and our cost reduction efforts continued to reap
benefits. Our prospects for the year 2000 appear promising as we have a strong
order book and we have been successful in increasing our spot market prices,"
said Chairman and Chief Executive Officer Yutaka Tanaka.
FINANCIAL POSITION AND LIQUIDITY
Total liquidity from cash and available short-term borrowing facilities amounted
to $410 million at December 31, 1999. Capital expenditures in 1999 totaled $318
million compared to $171 million in 1998. Major projects in 1999 included a new
coating line at the Great Lakes Operations, the major reline of a blast furnace
at our Granite City Division and various information systems projects.
OTHER MATTERS
Although average selling prices remained at depressed levels during 1999, the
Company was able to offset the effect of these lower prices through improvements
on the operating side of the business. Shipments in the fourth quarter
represented an all-time quarterly record and new monthly shipment records were
set in four of the last five months of 1999. In addition, numerous production
records were established in 1999 and the Company experienced a significant
improvement in safety performance.
Our customers also recognized National Steel for excellence in servicing their
requirements in 1999. The Company achieved PARTNER status in John Deere's
Achieving Excellence/JD CROP Program. Toyota Manufacturing North America
honored National Steel with its Certificate of Achievement for Quality
Performance, and General Motors recognized the outstanding work of our Great
Lakes Operation people with the "People Make Quality Happen" award. In
addition, National Steel was the only steel company to receive the Mitsubishi
Superior Supplier award, an award that is based on National's performance in the
areas of quality, delivery and competitiveness.
-more
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National Steel will be hosting a conference call to discuss fourth quarter
results on Thursday, January 27, 2000 at 11:00 a.m. EST. Investors will have
the opportunity to listen to the conference call over the Internet through
Investor Broadcast Networks' Vcall website, located at http://www.vcall.com. To
listen to the live call, please go to the web site at least fifteen minutes
early to register, download and install any necessary audio software.
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, 1998.
Headquartered in Mishawaka, Indiana, National Steel Corporation is one of the
nation's largest producers of carbon flat-rolled steel products, with annual
shipments of approximately six million tons. National Steel employs
approximately 9,200 employees. Visit National Steel's website at:
www.nationalsteel.com.
The Company's consolidated statements of income, condensed balance sheets and
statements of cash flows follow:
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Exhibit 99.1
<TABLE>
<CAPTION>
NATIONAL STEEL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In millions, except per share data)
Three Months Ended Year Ended
December 31, December 31,
------------------------------- ----------------------------------
1999 1998 1999 1998
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
Net sales $ 759.9 $ 685.4 $2,849.6 $2,848.0
Cost of products sold 686.1 588.7 2,581.7 2,496.8
Selling, general and administrative expense 38.4 40.7 147.8 153.6
Depreciation 35.7 33.3 140.1 129.2
Equity (income) loss of affiliates (0.5) (0.2) (2.1) (1.3)
Unusual (credit) -- -- -- (26.6)
--------------- --------------- --------------- ----------------
Income (loss) from operations 0.2 22.9 (17.9) 96.3
Other (income) expense
Financing costs (net) 7.4 3.2 28.1 10.9
Net gain on disposal of non-core assets (0.2) -- (0.8) (2.7)
--------------- --------------- --------------- ----------------
7.2 3.2 27.3 8.2
--------------- --------------- --------------- ----------------
Income (loss) before income taxes (7.0) 19.7 (45.2) 88.1
Income tax (credit) (0.2) 0.9 (2.1) 4.3
--------------- --------------- --------------- ----------------
Net income (loss) $ (6.8) $ 18.8 $ (43.1) $ 83.8
=============== =============== =============== ================
Basic earnings per share:
Net income (loss) $ (0.17) $ 0.44 $ (1.04) $ 1.94
=============== =============== =============== ================
Weighted average shares outstanding (in thousands) 41,288 42,946 41,411 43,202
Diluted earnings per share:
Net income (loss) $ (0.17) $ 0.44 $ (1.04) $ 1.94
=============== =============== =============== ================
Weighted average shares outstanding (in thousands) 41,288 42,948 41,411 43,271
Dividends paid per common share outstanding $ 0.07 $ 0.07 $ 0.28 $ 0.28
=============== =============== =============== ================
Operating Statistics (in thousands of tons):
Shipments 1,686 1,352 6,110 5,587
Production 1,659 1,350 6,250 6,087
</TABLE>
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Exhibit 99.1
NATIONAL STEEL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions)
<TABLE>
<CAPTION>
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
-------------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Assets Liabilities and
Stockholders'
Equity
Cash and cash equivalents $ 58.4 $ 137.9 Current liabilities $ 598.5 $ 546.8
Receivables - net 322.8 245.7 Long-term debt 555.6 285.8
Inventories 519.7 472.8 Other long-term
Other 29.5 19.9 liabilities 713.8 801.1
Deferred tax assets 28.2 23.3
--------- -------- -------- --------
Total current assets 958.6 899.6 Total liabilities 1,867.9 1,633.7
Property, plant and
equipment - net 1,446.4 1,270.5 Stockholders' equity 832.6 850.3
Other assets 295.5 313.9 -------- --------
-------- -------- Total Liabilities
Total Assets $2,700.5 $2,484.0 and Equity $2,700.5 $2,484.0
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</TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
<TABLE>
<CAPTION>
Year Ended December 31,
1999 1998
---------- ----------
<S> <C> <C>
Cash provided by operating
activities:
Net income (loss) $ (43.1) $ 83.8
Depreciation 140.1 129.2
Changes in assets and liabilities:
Receivables (77.1) 38.4
Inventories (46.9) (98.6)
Accounts payable & accrued liabilities 3.2 (51.3)
Pension & postretirement benefit liabilities 51.8 (60.0)
All other (19.8) (9.8)
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8.2 31.7
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Cash used in investing
activities:
Purchases of property, plant
and equipment (net) (318.3) (171.1)
Acquisition of ProCoil (7.7) --
Net proceeds from the sale of assets 1.3 4.7
------- ------
(324.7) (166.4)
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Cash provided by (used in) financing
activities:
Repayment of debt (55.4) (34.2)
Borrowings 311.9 14.7
Repurchase of common stock (7.9) (8.4)
Common stock dividends (11.6) (12.1)
------- ------
237.0 (40.0)
------- ------
Decrease in cash
and cash equivalents (79.5) (174.7)
Cash and cash equivalents at
the beginning of the period 137.9 312.6
------- ------
Cash and cash equivalents at
the end of the period $ 58.4 $137.9
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