<PAGE>
Exhibit 99.1
National
Steel
--------------------------------------------------------------------------------
National Steel Corporation
4100 Edison Lakes Parkway
Mishawaka, IN 46545
(219) 273-7000
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 SECOND QUARTER 2000
Mishawaka, IN, July 26, 2000 -- National Steel Corporation (NYSE: NS) today
reported a net loss of $5.0 million, or $0.12 per diluted common share, for the
second quarter of 2000. This compares to a net loss of $4.6 million or $0.11
per diluted common share, for the same period of 1999. Net sales for the
quarter increased to $772.4 million on shipments of 1,631,000 tons compared to
$707.3 million on shipments of 1,471,000 tons for the second quarter of 1999.
The second quarter 2000 results include a gain of $15.1 million from the sale of
the Company's 30% interest in the Presque Isle Corporation.
For the first half of 2000 the Company reported net income of $0.3 million or
$0.01 per diluted common share, as compared to a net loss of $28.7 million, or
$0.69 per diluted common share, for the first half of 1999. Net sales increased
approximately 16% in the first half of 2000 to $1.58 billion on shipments of
3,411,000 tons compared to net sales of $1.37 billion on shipments of 2,861,000
tons for the same period last year.
"The unanticipated extension of our planned outages combined with the fire at
our Great Lakes Caster adversely impacted our second quarter results. As these
issues have been concluded we will now continue our cost reduction efforts,"
said Chairman and Chief Executive Officer Yutaka Tanaka. "We succeeded in
improving our shipments in value added products and the successful start-up of
our new hot dip galvanizing facility will allow us to further improve our
product mix in the future," concluded the chief executive.
- more -
<PAGE>
Exhibit 99.1
FINANCIAL POSITION AND LIQUIDITY
Total liquidity from cash and available short-term borrowing facilities amounted
to $391 million at June 30, 2000. During June 2000 the Company received $16.4
million in gross cash proceeds from the sale of Presque Isle Corporation.
Capital expenditures for the first half of 2000 totaled $93.4 million primarily
related to the new hot dip galvanizing facility at our Great Lakes Operations
and the scheduled B Blast Furnace reline at the same location.
OTHER MATTERS
On June 24, 2000 the Company successfully started-up the new hot dip galvanizing
facility at the Great Lakes Operations. When fully operational, the facility
will produce 450,000 tons of coated material annually to service the automotive
industry with quality exposed material.
In June 2000, the Company received the prestigious "Partner" award from John
Deere Harvester Works, which comes from the agricultural division's Achieving
Excellence program. It is the highest ranking a supplier can earn. The focus of
the program is on quality, delivery, technical assistance and cost management.
National Steel will be hosting a conference call to discuss second quarter
results on Thursday, July 27, 2000 at 2:00 p.m. EDT. Investors will have the
opportunity to listen to the conference call over the Internet at
http://videonewswire.com/NATIONAL/072700/ or you may go directly to our website
at www.nationalsteel.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.
- more -
<PAGE>
Exhibit 99.1
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, 1999.
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:
- more -
<PAGE>
Exhibit 99.1
NATIONAL STEEL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In millions, except per share data)
<TABLE>
<CAPTION>
Three Months Six Months
Ended June 30, Ended June 30,
------------------- ---------------------
2000 1999 2000 1999
------- ------- -------- --------
<S> <C> <C> <C> <C>
Net sales $ 772.4 $ 707.3 $1,580.2 $1,365.2
Cost of products sold 709.7 633.6 1,428.1 1,240.4
Selling, general and administrative expense 36.7 35.6 74.7 75.3
Depreciation 40.8 35.5 78.6 68.1
Equity (income) loss of affiliates (1.4) (0.3) (1.3) (0.7)
------- ------- -------- --------
Income (loss) from operations (13.4) 2.9 0.1 (17.9)
Other (income) expense
Financing costs (net) 6.9 7.7 14.8 13.0
Net gain on disposal of non-core assets (15.1) -- (15.1) (0.6)
------- ------- -------- --------
(8.2) 7.7 (0.3) 12.4
------- ------- -------- --------
Income (loss) before income taxes (5.2) (4.8) 0.4 (30.3)
Income tax provision (credit) (0.2) (0.2) 0.1 (1.6)
------- ------- -------- --------
Net income (loss) $ (5.0) $ (4.6) $ 0.3 $ (28.7)
======= ======= ======== ========
Basic earnings per share:
Net income (loss) $ (0.12) $ (0.11) $ 0.01 $ (0.69)
======= ======= ======== ========
Weighted average shares outstanding (in thousands) 41,288 41,288 41,288 41,537
Diluted earnings per share:
Net income (loss) $ (0.12) $ (0.11) $ 0.01 $ (0.69)
======= ======= ======== ========
Weighted average shares outstanding (in thousands) 41,288 41,288 41,291 41,537
Dividends paid per common share outstanding $ 0.07 $ 0.07 $ 0.14 $ 0.14
======= ======= ======== ========
Operating Statistics (in thousands of tons):
Shipments 1,631 1,471 3,411 2,861
Production 1,646 1,408 3,397 2,910
</TABLE>
- more -
<PAGE>
Exhibit 99.1
NATIONAL STEEL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions)
<TABLE>
<CAPTION>
June 30, December 31, June 30, December 31,
2000 1999 2000 1999
-------- ------------ -------- ------------
<S> <C> <C> <C> <C> <C>
Assets Liabilities and
Stockholders'
Equity
Cash and cash equivalents $ 58.2 $ 58.4 Current liabilities $ 591.6 $ 597.9
Receivables - net 329.4 322.8 Long-term debt 536.5 555.6
Inventories 503.4 519.7 Other long-term
Other 32.8 29.5 liabilities 755.5 713.8
Deferred tax assets 28.2 28.2
-------- -------- -------- --------
Total current assets 952.0 958.6 Total Liabilities 1,883.6 1,867.3
Property, plant and
equipment - net 1,460.6 1,446.4 Stockholders' Equity 827.8 833.2
Other assets 298.8 295.5
-------- -------- -------- --------
Total Liabilities
Total Assets $2,711.4 $2,700.5 and Equity $2,711.4 $2,700.5
======== ======== ======== ========
</TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
<TABLE>
<CAPTION>
Six Months Ended June 30,
2000 1999
---- ----
<S> <C> <C>
Cash provided by (used in) operating
activities:
Net income (loss) $ 0.3 $ (28.7)
Depreciation 78.6 68.1
Changes in assets and liabilities:
Receivables (5.1) (27.1)
Inventories 16.2 9.6
Accounts payable & accrued liabilities 51.5 (42.5)
All other (33.8) 15.7
------ -------
107.7 (4.9)
------ -------
Cash provided by (used in) investing
activities:
Purchases of property, plant
and equipment (net) (86.9) (130.3)
Acquisition of ProCoil -- (7.7)
Net proceeds from the sale of assets 15.5 0.6
------ -------
(71.4) (137.4)
------ -------
Cash provided by (used in) financing
activities:
Repayment of debt (30.8) (28.3)
Borrowings - net -- 295.4
Repurchase of common stock -- (7.9)
Common stock dividends (5.7) (5.8)
------ -------
(36.5) 253.4
------ -------
Increase (decrease) in cash
and cash equivalents (0.2) 111.1
Cash and cash equivalents at
the beginning of the period 58.4 137.9
------ -------
Cash and cash equivalents at
the end of the period $ 58.2 $ 249.0
====== =======
Noncash investing and financing activities:
Purchase of equipment through capital leases $ 6.5 $ 13.3
====== =======
</TABLE>
