<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the quarterly period ended September 30, 1998,
or
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the transition period from to .
Commission File No. 0-13787
INTERMET CORPORATION
(Exact name of registrant as specified in its charter)
GEORGIA 58-1563873
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
5445 Corporate Drive, Suite 200, Troy, Michigan 48098-2683
(Address of principal executive offices) (Zip code)
(248) 952-2500
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
At November 3, 1998 there were 25,720,824 shares of Common Stock, $0.10 par
value, outstanding.
<PAGE> 2
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Intermet Corporation
Interim Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
------------------- -------------------
(Unaudited)
(in thousands of dollars)
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $2,756 $7,022
Accounts receivable:
Trade, less allowance for doubtful accounts of $2,276
in 1998 and $2,125 in 1997 117,696 92,871
Other 12,114 7,549
------------------- -------------------
129,810 100,420
Inventories 58,458 61,164
Other current assets 7,088 24,676
------------------- -------------------
Total current assets 198,112 193,282
Property, plant and equipment, at cost 451,422 471,981
Less:
Foreign industrial development grants, net of
amortization 4,137 5,638
Accumulated depreciation and amortization 235,546 224,444
------------------- -------------------
Net property, plant and equipment 211,739 241,899
Goodwill, net of amortization 88,516 86,014
Other noncurrent assets 20,072 17,610
------------------- -------------------
$518,439 $538,805
=================== ===================
</TABLE>
2
<PAGE> 3
Intermet Corporation
Interim Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
------------------- ------------------
(Unaudited)
(in thousands of dollars)
<S> <C> <C>
Liabilities and shareholders' equity
Current liabilities:
Notes payable $12,000 $9,087
Accounts payable 53,266 59,173
Income taxes payable 6,626 8,635
Accrued liabilities 46,877 48,521
Long term debt due within one year 6,072 10,538
------------------- ------------------
Total current liabilities 124,841 135,954
Noncurrent liabilities:
Long term debt due after one year 123,838 167,295
Retirement benefits 48,936 49,013
Other noncurrent liabilities 8,499 8,778
------------------- ------------------
Total noncurrent liabilities 181,273 225,086
Minority interest 2,337 2,337
Shareholders' equity:
Common stock 2,573 2,526
Capital in excess of par value 62,632 58,176
Retained earnings 144,092 114,242
Accumulated other comprehensive income 878 561
Unearned restricted stock (187) (77)
------------------- ------------------
Total shareholders' equity 209,988 175,428
------------------- ------------------
$518,439 $538,805
=================== ==================
</TABLE>
See accompanying notes.
3
<PAGE> 4
Intermet Corporation
Interim Condensed Consolidated Statements of Income
<TABLE>
<CAPTION>
Three months Nine months ended
ended
September 30, September 30, September 30, September 30,
1998 1997 1998 1997
----------------- ----------------- ----------------- ----------------
(Unaudited)
(in thousands of dollars, except per share data)
<S> <C> <C> <C> <C>
Net sales $188,808 $189,535 $632,698 $609,924
Cost of sales 166,314 167,472 548,729 532,010
----------------- ----------------- ----------------- ----------------
Gross profit 22,494 22,063 83,969 77,914
Operating expenses:
Selling 1,957 2,528 6,786 7,452
General and administrative 4,852 4,799 15,650 14,421
Other operating expenses 956 536 2,860 1,609
----------------- ----------------- ----------------- ----------------
7,765 7,863 25,296 23,482
----------------- ----------------- ----------------- ----------------
Operating profit 14,729 14,200 58,673 54,432
Other income and expenses:
Interest income 60 46 161 469
Interest expense (2,543) (3,164) (8,822) (9,297)
Other, net 301 (79) 234 (413)
----------------- ----------------- ----------------- ----------------
(2,182) (3,197) (8,427) (9,241)
----------------- ----------------- ----------------- ----------------
Income before income taxes and minority
interest 12,547 11,003 50,246 45,191
Provision for income taxes 3,233 3,647 17,736 15,748
----------------- ----------------- ----------------- ----------------
Income before minority interest 9,314 7,356 32,510 29,443
Minority interest in loss of subsidiary - - 412 -
----------------- ----------------- ----------------- ----------------
Net income $9,314 $7,356 $32,922 $29,443
================= ================= ================= ================
Income per common share - Basic $0.36 $0.29 $1.29 $1.17
================= ================= ================= ================
Income per common share - Diluted $0.36 $0.28 $1.27 $1.15
================= ================= ================= ================
</TABLE>
See accompanying notes.
4
<PAGE> 5
Intermet Corporation
Interim Condensed Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
Nine months ended
September 30, September 30,
1998 1997
------------------ ------------------
(Unaudited)
(in thousands of dollars)
<S> <C> <C>
Operating activities:
Net income $32,922 $29,443
Adjustments to reconcile net income to cash provided by operating
activities:
Depreciation and amortization 27,674 27,590
Gain on sale of subsidiary (115)
Other, including net gain on disposal of fixed assets (529) (402)
Changes in operating assets and liabilities excluding the effects of
acquisitions and dispositions:
Accounts receivable (39,274) (32,544)
Inventories (640) 94
Accounts payable and accrued liabilities 4,876 (181)
Other assets and liabilities 713 2,347
------------------ ------------------
Net cash provided by operating activities 25,627 26,347
Investing activities:
Additions to property, plant and equipment (32,560) (31,465)
Sudbury acquisition (143) (36,098)
Proceeds from the sale of subsidiaries 22,971 -
Investment in joint venture (2,000) -
Proceeds from disposal of fixed assets 1,415 815
Other 2,342 663
------------------ ------------------
Net cash used in investing activities (7,975) (66,085)
Financing activities:
Net (decrease) increase in revolving credit facility (25,000) 34,700
Reduction in debt (1,987) (11,756)
Net increase in notes payable 7,000 -
Issuance of common stock 4,503 727
Dividends paid (3,071) (3,027)
Other - -
------------------ ------------------
Net cash (used in) provided by financing activities (18,555) 20,644
Effect of exchange rate changes on cash and cash equivalents (3,363) 882
------------------ ------------------
Net decrease in cash and cash equivalents (4,266) (18,212)
Cash and cash equivalents at beginning of period 7,022 23,485
------------------ ------------------
Cash and cash equivalents at end of period $2,756 $5,273
================== ==================
</TABLE>
See accompanying notes.
5
<PAGE> 6
Intermet Corporation
Notes to Interim Condensed Consolidated Financial Statements
September 30, 1998 (Unaudited)
1. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of
Intermet Corporation ("Intermet") and its subsidiaries (collectively, the
"Company") have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions to Form
10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for the three and nine
months ended September 30, 1998 are not necessarily indicative of the results
that may be expected for the year ending December 31, 1998. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Company's annual report on Form 10-K for the year ended
December 31, 1997.
Inventories
Inventories consist of the following (in thousands of dollars):
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
------------------ -----------------
<S> <C> <C>
Finished goods $13,414 $13,852
Work in process 14,808 13,897
Raw materials 8,319 11,533
Supplies and patterns 21,917 21,882
------------------ -----------------
$58,458 $61,164
================== =================
</TABLE>
Property, Plant and Equipment
Property, plant and equipment consist of the following (in thousands of
dollars):
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
------------------ -----------------
<S> <C> <C>
Land $ 4,205 $ 4,783
Buildings and improvements 85,598 89,215
Machinery and equipment 329,974 357,745
Construction in progress 31,645 20,238
------------------ -----------------
$451,422 $471,981
================== =================
</TABLE>
6
<PAGE> 7
Intermet Corporation
Notes to Interim Condensed Consolidated Financial Statements (continued)
September 30, 1998 (Unaudited)
1. Summary of Significant Accounting Policies (continued)
Intangible Assets
Intangible assets consist principally of costs in excess of net assets acquired
of $88,516,000 and $86,014,000 (net of accumulated amortization of $6,475,000
and $4,392,000) at September 30, 1998 and December 31, 1997, respectively. Such
costs are being amortized using the straight-line method over periods ranging
from ten to forty years.
Income per Common Share
Net income per common share amounts were previously based on the weighted
average number of shares outstanding during the period, after giving effect to
the exercise of options and assuming the repurchase at fair market value, of
shares using the proceeds from such exercise, unless the effect was
antidilutive. In February 1997, the Financial Accounting Standards Board
("FASB") issued Statement No. 128, "Earnings per Share", which was adopted by
the Company on December 31, 1997. Under the new requirements for calculating
basic earnings per share, the dilutive effect of stock options is excluded.
Fully diluted EPS has not changed significantly but has been renamed diluted
EPS. Earnings per share for all prior periods have been restated to reflect the
new accounting standard.
Reclassification
Certain amounts previously reported in the 1997 financial statements and notes
thereto have been reclassified to conform to the 1998 presentation.
2. Acquisitions and Dispositions
During the second quarter of 1998, the Company entered into an agreement with
Portuguese Grupo Jorge de Mello, creating a joint venture company called
PortCast-Fundicao Nodular, S.A. ("PortCast"). PortCast is located in Porto,
Portugal and increases foundry capacity in Europe. The Company spent $2.0
million of capital toward its investment in a 50% equity interest in PortCast.
The Company has managerial control.
In June 1998, the Company sold its Industrial Powder Coatings, Inc. subsidiary
("IPC"). IPC was purchased as part of the Sudbury acquisition in December 1996.
IPC's sales were approximately 7.6% of Intermet's consolidated sales for the
twelve months of 1997 and 4.6% for the first nine months of 1998.
7
<PAGE> 8
Intermet Corporation
Notes to Interim Condensed Consolidated Financial Statements (continued)
September 30, 1998 (Unaudited)
2. Acquisitions and Dispositions (continued)
During the second quarter of 1998, IWESA GmbH ("IWESA") entered bankruptcy
proceedings and continues to operate under the protection of a bankruptcy
referee. The Company had purchased a 49% equity investment in IWESA in late
1996. The Company's ownership of IWESA increased to 82.4% during 1997 and IWESA
was consolidated at the end of 1997. As a result of the bankruptcy proceedings,
the Company's consolidated financial statements include IWESA's results of
operations only through April 1998 and IWESA is not included in the consolidated
balance sheet at September 30, 1998. IWESA accounted for approximately 1.4% of
the Company's consolidated sales for the first nine months ended September 30,
1998.
The effect of the above mentioned disposals had an immaterial impact on the
Company's financial results for the three- and nine-month periods ended
September 30, 1998.
3. Debt
Long term debt consists of the following (in thousands of dollars):
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
------------------ -----------------
<S> <C> <C>
Intermet $137,000 $150,000
Subsidiaries 4,910 36,920
------------------ -----------------
Total long-term debt 141,910 186,920
Less amounts due within one year 18,072 19,625
------------------ -----------------
Long-term debt due after one year $123,838 $167,295
================== =================
</TABLE>
4. Comprehensive Income
During 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 130, "Reporting Comprehensive Income", which
the Company adopted as of January 1, 1998. Statement 130 establishes new rules
for reporting and display of comprehensive income and its components. However,
the adoption of this Statement had no impact on the Company's net income or
shareholders' equity. Statement 130 requires these items, which include foreign
currency translation adjustment and minimum pension liability adjustment, to be
combined and reported as accumulated other comprehensive income. Prior to
adoption, these items were reported separately in shareholders' equity. In
addition, the Statement requires net income and other comprehensive income to be
included as components of total comprehensive income, as displayed in the table
below.
8
<PAGE> 9
Intermet Corporation
Notes to Interim Condensed Consolidated Financial Statements (continued)
September 30, 1998 (Unaudited)
4. Comprehensive Income (Loss) (continued)
<TABLE>
<CAPTION>
Three months ended Nine months ended
------------------------------------- -------------------------------------
September 30, September 30, September 30, September 30,
1998 1997 1998 1997
---------------- ---------------- ---------------- -----------------
(in thousands of dollars)
<S> <C> <C> <C> <C>
Net income $9,314 $7,356 $32,922 $29,443
Other comprehensive loss:
Foreign currency translation
adjustment 371 3,002 317 (1,342)
Minimum pension liability adjustment
- - - -
---------------- ---------------- ---------------- -----------------
Total other comprehensive income (loss) 371 3,002 317 (1,342)
================ ================ ================ =================
Total comprehensive income $9,685 $10,358 $33,239 $28,101
================ ================ ================ =================
</TABLE>
Prior year financial statements have been reclassified to conform to the
requirements of Statement 130.
5. Environmental and Legal Matters
The Company is engaged in various legal proceedings and other matters incidental
to its normal business activities. The Company does not believe any such
proceedings or matters are material in relation to the Company's consolidated
financial position or results of operations.
9
<PAGE> 10
Intermet Corporation
Notes to Interim Condensed Consolidated Financial Statements (continued)
September 30, 1998 (Unaudited)
6. Earnings per Share
Basic earnings per share is computed by dividing income available to common
shareholders by the weighted average number of common shares outstanding for the
period. The dilutive earnings per share calculation reflects the assumed
exercise of stock options.
<TABLE>
<CAPTION>
Three months ended Nine months ended
-------------------------------------- -------------------------------------
September 30, September 30, September 30, September 30,
1998 1997 1998 1997
----------------- ----------------- ----------------- ----------------
(in thousands, except per share data)
<S> <C> <C> <C> <C>
Numerator:
Net income $9,314 $7,356 $32,922 $29,443
Denominator:
Denominator for basic earnings
per share - weighted average
shares 25,679 25,222 25,565 25,202
Effect of dilutive securities:
Employee stock options 297 592 374 491
----------------- ----------------- ----------------- ----------------
Denominator for diluted earnings
per share - adjusted weighted
average shares and assumed
conversions 25,976 25,814 25,939 25,693
================= ================= ================= ================
Basic earnings per share $ 0.36 $ 0.29 $ 1.29 $ 1.17
================= ================= ================= ================
Diluted earnings per share $ 0.36 $ 0.28 $ 1.27 $ 1.15
================= ================= ================= ================
</TABLE>
10
<PAGE> 11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
THIS MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995. WHEN USED IN THIS SECTION, THE WORDS
"ANTICIPATE," "BELIEVE," "ESTIMATE" AND "EXPECT" AND SIMILAR EXPRESSIONS ARE
GENERALLY INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. READERS ARE CAUTIONED
THAT ANY FORWARD-LOOKING STATEMENTS, INCLUDING STATEMENTS REGARDING THE INTENT,
BELIEF OR CURRENT EXPECTATIONS OF THE COMPANY OR ITS MANAGEMENT, ARE NOT
GUARANTEES OF FUTURE PERFORMANCE AND INVOLVE RISKS AND UNCERTAINTIES, AND THAT
ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING
STATEMENTS AS A RESULT OF VARIOUS FACTORS INCLUDING, BUT NOT LIMITED TO: (i)
GENERAL ECONOMIC CONDITIONS IN THE MARKETS IN WHICH THE COMPANY OPERATES; (ii)
FLUCTUATIONS IN WORLDWIDE OR REGIONAL AUTOMOBILE AND LIGHT AND HEAVY TRUCK
PRODUCTION; (iii) LABOR DISPUTES INVOLVING THE COMPANY OR ITS SIGNIFICANT
CUSTOMERS; (iv) CHANGES IN PRACTICES AND/OR POLICIES OF THE COMPANY'S
SIGNIFICANT CUSTOMERS TOWARD OUTSOURCING AUTOMOTIVE COMPONENTS AND SYSTEMS; (v)
FOREIGN CURRENCY AND EXCHANGE FLUCTUATIONS; (vi) FACTORS AFFECTING THE ABILITY
OF THE COMPANY OR ITS KEY SUPPLIERS TO RESOLVE YEAR 2000 ISSUES IN A TIMELY
MANNER; AND (vii) OTHER RISKS DETAILED FROM TIME TO TIME IN THE COMPANY'S
FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY DOES NOT INTEND
TO UPDATE THESE FORWARD-LOOKING STATEMENTS.
Material Changes in Financial Condition
For the first nine months of 1998, net cash provided by operating activities was
$25.6 million. Depreciation and amortization expense was $27.7 million. Accounts
receivable increased $39.3 million from December 31, 1997, as sales during
September 1998 were higher than those of December 1997, excluding IWESA, due to
the traditional holiday shutdown. In addition, because September only has 30
days, customer payments, which would have been received on the 31st day of the
month, were received on the first day of the fourth quarter. Accounts payable
increased $4.9 million from the beginning of 1998 due to increased production
volumes and capital spending in September 1998 versus December 1997. The
Company's investing activities for the first nine months of 1998 used cash of
$8.0 million. Additions to property, plant and equipment were $32.6 million and
investment in joint venture was $2.0 million. Offsetting these cash uses were
proceeds of $23.0 million on the sale of subsidiaries and $1.4 million on the
sale of fixed assets. Financing activities used cash of $18.6 million for the
year through September 30, 1998. A portion of the cash generated from operations
was used to reduce bank borrowings $20.0 million from the end of 1997. The
Company received $4.5 million from the exercise of stock options and paid $3.1
million in dividends during the first nine months of 1998.
Cash and cash equivalents decreased to $2.8 million at September 30, 1998 from
$7.0 million at December 31, 1997. The Company declared a cash dividend of $0.04
per share ($1.0 million in aggregate) for the holders of record on December 1,
1998.
11
<PAGE> 12
Material Changes in Results of Operations
SALES. Sales in the third quarter of 1998 were $188.8 million compared to $189.5
million during the same period in 1997. Sales during the first nine months of
1998 increased 3.7% to $632.7 million versus $609.9 million for the same
nine-month period in 1997. Domestic sales, excluding IPC, during the three and
nine months ended September 30, 1998 were approximately $9.8 million (or 6.6%)
and $27.3 million (or 5.7%) greater than during their respective periods in
1997. This is a result of an increase in domestic vehicle sales, primarily light
trucks and sport utility vehicles, including Ford PHN131, Mercedes SUV and Dodge
Durango programs. European foundry sales have increased over the prior year due
to an improved vehicle market. The effect of changes in the exchange rates on
sales in Europe was positive $0.7 million (or 3.1%) and negative $3.0 million
(or 4.0%) for the three and nine month periods ended September 30, 1998,
respectively, compared to exchange rates for the same periods in 1997.
GROSS PROFIT. Gross profit for the quarter ended September 30, 1998 was $22.5
million, an increase of $0.4 million from that of the same period in 1997. Gross
profit for the nine months ended September 30, 1998 was $84.0 million versus
$77.9 million for the nine months ended September 30, 1997. Gross profit as a
percentage of sales for the three and nine months ended September 30, 1998 were
11.9% and 13.3%, respectively, compared to 11.6% and 12.8% for the respective
corresponding periods in 1997.
OPERATING EXPENSES. Operating expenses as a percentage of sales were 4.1% for
the three months ended September 30, 1998 and 1997. Operating expenses as a
percentage of sales for the nine-month periods ending September 30, 1998 and
1997 were 4.0% and 3.8%. The increase in these costs during 1998 relates to the
write off of the Company's receivables from IWESA. Without the write off of the
receivables, the operating expenses as a percentage of sales would have been
3.7% for the nine months ended September 30, 1998.
INTEREST EXPENSE. Interest expense was $2.5 million and $8.8 million for the
three and nine months ended September 30, 1998, respectively, and $3.2 million
and $9.3 million for the same periods in 1997.
INCOME TAX EXPENSE. Income tax expense was favorably impacted during the third
quarter of 1998 by a one-time tax benefit of approximately $1.1 million
associated with the write-off of the IWESA investment and its prior period
losses.
Year 2000
The Company has conducted an evaluation of its IT and non-IT computer systems
with respect to the "Year 2000" issue. This issue arises because many electronic
systems use two digits rather than four to determine dates. This could cause
information technology systems such as software applications, hardware, network
systems and embedded systems to misread important dates beginning in the year
2000, which could cause system failures and disruption of operations.
The Company has completed a Year 2000 readiness assessment of its business
critical IT and non-IT systems. As a result of the assessment, the Company is in
the process of developing and implementing corrective action plans designed to
address Year 2000 issues. These plans include modification, upgrade and
replacement of the Company's critical administrative, production and research
and development computer systems to make them Year 2000 ready. Implementation of
corrective action plans has begun, and the Company expects to have its critical
systems Year 2000 ready by June 1999.
12
<PAGE> 13
Because the Company's operations depend on the uninterrupted flow of materials
and services from its suppliers, the Company has requested and has been
receiving and analyzing information from its suppliers with regard to their
progress toward Year 2000 readiness. The Company intends to continue to monitor
the progress of its key suppliers toward Year 2000 readiness.
A small number of the Company's products incorporate electronic components that
are purchased from third parties. The Year 2000 readiness of these purchased
components is also being assessed.
The Company began addressing Year 2000 issues in 1995, and prior to 1998 spent
approximately $2.2 million on Year 2000 readiness. The company estimates that it
will spend in total between $7.5 and $8.0 million to become Year 2000 ready. The
majority of this spending is for required upgrades to or new business systems
required in the ordinary course of business, which will also be Year 2000 ready.
It is possible that the actual cost of the Company's Year 2000 readiness effort
could exceed these estimates.
Although the Company has a process in place to assess Year 2000 readiness on the
part of its suppliers, the Company considers the most reasonably likely worst
case scenario is that one or more of the Company's suppliers might encounter a
Year 2000 problem and be unable to supply materials. If this were to occur and
the Company could not obtain the same materials from another vendor, production
could be interrupted, which could result in lost sales and profits. In addition,
while the Company is taking action to correct deficiencies in its own systems,
it is possible that one or more of the Company's facilities or critical business
systems might not achieve Year 2000 readiness as anticipated. This could also
result in disruption of operations and lost sales and profits.
Contingency plans are being or will be developed that are intended to avoid or
mitigate the risks that either key suppliers or the Company might not achieve
Year 2000 readiness in time to avoid disruption of the Company's operations.
Readers are cautioned that forward looking statements contained in this Year
2000 discussion should be read in conjunction with the Company's disclosures
under the cautionary statement for the purposes of the "Safe Harbor" Provisions
of the Private Securities Litigation Reform Act of 1995, included elsewhere in
Management's Discussion and Analysis of Financial Condition and Results of
Operations.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is engaged in various legal proceedings and other matters incidental
to its normal business activities. The Company does not believe any of the above
mentioned proceedings or matters are material in relation to the Company's
consolidated financial position or results of operations.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
13
<PAGE> 14
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) The following exhibits are filed with this Report pursuant to Item 601 of
Regulation S-K:
Exhibit Number Description of Exhibit
27.1 Financial Data Schedule.
(b) The Company filed no reports on Form 8-K during the three months ended
September 30, 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
INTERMET CORPORATION
By: /s/ Walter T. Knollenberg
-------------------------
Walter T. Knollenberg
Corporate Controller
(Principal Accounting Officer)
Date: November 10, 1998
14
<PAGE> 15
Exhibits Index
Exhibit Number Description of Exhibit
27.1 Financial Data Schedule.
15
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 2,756
<SECURITIES> 0
<RECEIVABLES> 119,972
<ALLOWANCES> 2,276
<INVENTORY> 58,458
<CURRENT-ASSETS> 198,112
<PP&E> 451,422
<DEPRECIATION> 235,546
<TOTAL-ASSETS> 518,439
<CURRENT-LIABILITIES> 124,841
<BONDS> 0
0
0
<COMMON> 2,573
<OTHER-SE> 207,415
<TOTAL-LIABILITY-AND-EQUITY> 518,439
<SALES> 632,698
<TOTAL-REVENUES> 632,698
<CGS> 548,729
<TOTAL-COSTS> 574,025
<OTHER-EXPENSES> 8,427
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,822
<INCOME-PRETAX> 50,246
<INCOME-TAX> 17,736
<INCOME-CONTINUING> 32,922
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 32,922
<EPS-PRIMARY> 1.29
<EPS-DILUTED> 1.27
</TABLE>
