SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarterly Period Ended September 30, 1994
Commission File Number 1-12068
MASCOTECH, INC.
(Exact name of Registrant as specified in its Charter)
Delaware 38-2513957
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
21001 Van Born Road, Taylor, Michigan 48180
(Address of principal executive offices) (Zip Code)
(313) 274-7405
(Telephone Number)
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, and (2) has been subject to such filing requirements
for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Shares Outstanding at
Class October 31, 1994
Common stock, par value $1 per share 56,610,000
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MASCOTECH, INC.
INDEX
Page No.
Part I. Financial Information
Item 1. Financial Statements
Consolidated Condensed Balance Sheet -
September 30, 1994 and December 31, 1993 1
Consolidated Condensed Statements of Income
for the Three Months and Nine Months Ended
September 30, 1994 and 1993 2
Consolidated Condensed Statement of
Cash Flows for the Nine Months
Ended September 30, 1994 and 1993 3
Notes to Consolidated Condensed Financial
Statements 4-5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 6-7
Part II. Other Information and Signature 8-9
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
MASCOTECH, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
September 30, 1994 and December 31, 1993
(Dollars in thousands)
September 30, December 31,
ASSETS 1994 1993
Current assets:
Cash and cash investments $ 37,350 $ 83,200
Marketable securities 70,310 27,790
Receivables 257,280 238,820
Inventories 163,230 140,040
Deferred and refundable income taxes 27,070 41,780
Prepaid expenses and other assets 56,830 24,210
Total current assets 612,070 555,840
Equity and other investments in affiliates 189,220 170,510
Property and equipment, net 565,300 490,190
Excess of cost over net assets of acquired
companies 433,600 439,760
Notes receivable and other assets 68,690 66,100
Net assets of discontinued operations 21,190 67,510
Total assets $1,890,070 $1,789,910
LIABILITIES
Current liabilities:
Accounts payable $ 105,310 $ 95,520
Accrued liabilities 99,130 103,260
Current portion of long-term debt 2,370 2,830
Total current liabilities 206,810 201,610
Long-term debt 867,700 788,360
Deferred income taxes and other long-term
liabilities 136,470 132,310
Total liabilities 1,210,980 1,122,280
SHAREHOLDERS' EQUITY
Preferred stock, $1 par, shares authorized:
25 million; outstanding: 10.8 million 10,800 10,800
Common stock, $1 par, shares authorized:
250 million; outstanding: 56.6 million
and 60.5 million 56,610 60,510
Paid-in capital 317,800 367,290
Retained earnings 291,760 232,120
Cumulative translation adjustments 2,120 (3,090)
Total shareholders' equity 679,090 667,630
Total liabilities and
shareholders' equity $1,890,070 $1,789,910
The accompanying notes are an integral part of the
consolidated condensed financial statements.
1
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<TABLE>
MASCOTECH, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
For the Three and Nine Months Ended September 30, 1994 and 1993
(Dollars in thousands except per share amounts)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Net sales $ 416,500 $ 373,680 $ 1,261,690 $ 1,190,280
Cost of sales (343,060) (295,080) (1,018,250) (941,320)
Selling, general and
administrative expenses (49,330) (44,780) (143,300) (136,930)
Operating profit 24,110 33,820 100,140 112,030
Other income (expense), net:
Interest expense, Masco
Corporation --- (1,950) --- (5,850)
Other interest expense (13,160) (19,010) (36,080) (55,980)
Equity and interest income
from affiliates 11,570 7,380 24,260 17,810
Gain from change in investment of
equity affiliates --- --- --- 9,470
Other income, net 4,100 7,970 32,020 14,650
2,510 (5,610) 20,200 (19,900)
Income from continuing operations
before income taxes and
extraordinary income 26,620 28,210 120,340 92,130
Income taxes 10,840 13,210 48,820 39,750
Income from continuing operations
before extraordinary income 15,780 15,000 71,520 52,380
Income from operations of
discontinued segment --- 320 --- 2,200
Income before extraordinary income 15,780 15,320 71,520 54,580
Extraordinary income (net of
income taxes) 2,600 --- 2,600 ---
Net income $ 18,380 $ 15,320 $ 74,120 $ 54,580
Preferred stock dividends $ 3,240 $ 5,420 $ 9,720 $ 10,250
Earnings attributable to
common stock $ 15,140 $ 9,900 $ 64,400 $ 44,330
Earnings per common and
common equivalent share:
Primary:
Continuing operations $ .21 $ .17 $ .96 $ .74
Income from operations of
discontinued segment -- .01 -- .04
Income before extraordinary income .21 .18 .96 .78
Extraordinary income .04 -- .03 --
Earnings attributable to
common stock $ .25 $ .18 $ .99 $ .78
Fully diluted:
Continuing operations $ .21 $ .17 $ .93 $ .70
Income from operations of
discontinued segment -- .01 -- .03
Income before extraordinary income .21 .18 .93 .73
Extraordinary income .04 -- .03 --
Earnings attributable to
common stock $ .25 $ .18 $ .96 $ .73
Cash dividends declared $ .03 .02 $ .07 $ .04
The accompanying notes are an integral part of the
consolidated condensed financial statements.
2
</TABLE>
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MASCOTECH, INC.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
For the Nine Months Ended September 30, 1994 and 1993
(Dollars in thousands)
Nine Months Ended
September 30,
1994 1993
CASH FROM (USED FOR):
OPERATIONS:
Net cash from earnings $ 80,490 $ 81,500
(Increase) in inventories (15,550) (16,950)
(Increase) in receivables (27,890) (15,350)
Increase (decrease) in accounts
payable and accrued liabilities 6,560 (7,430)
(Increase) in prepaid expenses
and other assets (32,120) (2,560)
(Increase) in marketable securities, net (42,520) (19,870)
Discontinued operations, net --- 8,830
Other, net 7,670 (10,660)
Net cash (used for) from operating
activities (23,360) 17,510
FINANCING:
Issuance of convertible debt 337,240 ---
Increase in other debt 69,760 ---
Retirement of 10 1/4% notes (253,120) ---
Payment of other debt (86,040) (164,910)
Issuance of preferred stock --- 209,320
Retirement of Company Common Stock (54,130) ---
Payment of preferred stock dividends (9,720) (7,160)
Payment of common stock dividends (4,670) (1,000)
Other, net (3,400) 1,250
Net cash (used for) from financing
activities (4,080) 37,500
INVESTMENTS:
Capital expenditures (86,350) (30,910)
Proceeds from sale of Energy-related
businesses 41,220 ---
Receipt of cash from notes receivable 13,590 14,000
Sale of common stock of affiliate 18,180 ---
Cash paid Masco Corporation --- (87,500)
Other, net (5,050) (1,650)
Net cash (used for) investing
activities (18,410) (106,060)
CASH AND CASH INVESTMENTS:
(Decrease) for the nine months (45,850) (51,050)
At January 1 83,200 76,000
37,350 24,950
Less cash from discontinued operations --- (3,770)
At September 30 $ 37,350 $ 21,180
Supplemental Cash Flow Information:
Net cash paid during the period for:
Interest $ 50,100 $ 73,400
Income taxes $ 21,350 $ 15,800
The accompanying notes are an integral part of the
consolidated condensed financial statements.
3
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MASCOTECH, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
A. In the opinion of the Company, the accompanying unaudited consolidated
condensed financial statements contain all adjustments, which are normal
and recurring in nature, necessary to present fairly its financial
position as at September 30, 1994, the results of operations for the three
and nine months ended September 30, 1994 and 1993, and cash flows for the
nine months ended September 30, 1994 and 1993. The statements of income
and cash flows and related notes for the nine months ended September 30,
1993 have been reclassified to present the Energy-related segment as
discontinued operations. In addition, the balance sheet as of September
30, 1994 and December 31, 1993 reflects the Energy-related segment as
discontinued operations. Certain 1993 amounts have been reclassified to
conform to the presentation adopted in 1994.
Primary earnings per common share were calculated based on 74.6 million
and 56.9 million weighted average common shares outstanding for the nine
months ended September 30, 1994 and 1993, respectively; and on 60.2
million and 55.6 million weighted average common shares outstanding for
the three months ended September 30, 1994 and 1993, respectively.
Fully diluted earnings per common share were calculated based on 84.8
million and 67.9 million weighted average common shares outstanding for
the nine months ended September 30, 1994 and 1993, respectively; and on
70.3 million and 66.1 million weighted average common shares outstanding
for the three months ended September 30, 1994 and 1993, respectively.
Primary and fully diluted earnings per common share amounts for the first
through third quarters do not total to the 1994 year to date amounts.
This is the result of the purchase and retirement of shares throughout the
year and a lower dilutive effect from outstanding options and warrants on
the year to date calculation.
B. Inventories by component are as follows (in thousands):
September 30, December 31,
1994 1993
Finished goods $ 32,330 $ 39,400
Work in process 57,030 38,240
Raw materials 73,870 62,400
$163,230 $140,040
C. Property and equipment, net reflects accumulated depreciation of $343
million and $308 million as at September 30, 1994 and December 31, 1993,
respectively.
D. Other income, net for the nine months ended September 30, 1994 includes
gains, primarily during the first six months of 1994, aggregating
approximately $18 million pre-tax from the sale by the Company of a
portion of its common stock holdings of an equity affiliate.
E. In January, 1994, the Company issued, in a public offering, $345 million
of 4 1/2% Convertible Subordinated Debentures due December 15, 2003.
These debentures are convertible into Company Common Stock at $31 per
share. The net proceeds of approximately $337 million were used to
redeem $250 million of 10 1/4% Subordinated Notes on February 1, 1994
and to reduce other indebtedness.
4
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MASCOTECH, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(concluded)
F. The following presents combined supplemental financial data of the Company
and TriMas Corporation as one entity, with MascoTech as the parent
company. The Company had an equity ownership interest in TriMas of
approximately 41 percent at September 30, 1994 and approximately 28
percent at September 30, 1993. Intercompany transactions have been
eliminated. Approximate combined condensed financial data are as follows
(in thousands):
September 30
1994 1993
Current assets $ 865,720 $ 808,090
Current liabilities (262,950) (239,640)
Working capital 602,770 568,450
Property and equipment, net 731,630 626,440
Excess of cost over net
assets of acquired companies 522,890 565,200
Other assets 256,970 324,040
Long-term debt (1,106,300) (1,138,690)
Deferred income taxes and
other long-term liabilities (165,720) (230,080)
Equity of the other shareholders
of TriMas (163,150) (119,880)
Equity of shareholders of
MascoTech $ 679,090 $ 595,480
Net sales $1,672,540 $1,522,960
Operating profit $ 170,840 $ 165,540
Income from continuing
operations $ 71,520 $ 52,380
Net income $ 74,120 $ 54,580
Earnings attributable to
common stock $ 64,400 $ 44,330
G. During 1994, the Company has repurchased and retired approximately four
million shares of its Common Stock in open-market purchases, pursuant to a
Board of Directors' authorized repurchase program.
H. During the second quarter of 1994 the Company amended its existing
Revolving Credit Agreement with a group of banks, resulting in an
extension of the due date to July, 1998 from January, 1997.
I. Results for the third quarter of 1994 include a $4.4 million pre-tax
extraordinary gain ($2.6 million after-tax or $.04 per common share)
related to the early extinguishment of convertible debt.
J. At September 30, 1994, the Company had approximately $45 million due
within one year under short-term bank lines of credit. As the Company has
the ability and the intent to maintain this amount of borrowing on a long-
term basis, borrowings under this facility have been classified as long-
term debt.
5
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MASCOTECH, INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Sales from continuing operations for the third quarter 1994 were the
highest for any third quarter since MascoTech became a publicly owned company in
1984. Net sales from continuing operations for the third quarter ended
September 30, 1994 increased 11 percent to $417 million from $374 million in
1993. Sales of transportation-related products for the third quarter of 1994
increased 19 percent, benefitting from increased market share and higher levels
of automotive production. Sales of specialty products for the third quarter of
1994 decreased eight percent from third quarter 1993.
Net sales for the nine month period ended September 30, 1994 increased six
percent over the comparable period in 1993. Sales of transportation-related
products for the nine months ended September 30, 1994 increased 10 percent and
sales of specialty products decreased six percent from the comparable period in
1993. Transportation-related product sales for the nine month period ended
September 30, 1994 were reduced by the phaseout in 1993 of certain product
programs by the Company's automotive customers. This reduction was offset by
higher levels of automotive production and by certain new and replacement
programs introduced in 1994. Specialty products sales for the three and nine
month periods were adversely impacted by the continuing softness in the
commercial construction markets served by the Company, and the continued decline
in defense spending.
Net income from continuing operations, including extraordinary income, in
the third quarter of 1994, after preferred stock dividends, increased 58 percent
to $15.1 million or $.25 per common share, compared with $9.6 million or $.17
per common share in the comparable period in 1993. Results for the nine months
and three months ended September 30, 1994 benefitted from reduced interest
expense, resulting primarily from the redemption in early 1994 of subordinated
debt with lower cost financing, and increased equity earnings. This was
partially offset by lower interest income and reduced gains from marketable
securities as compared with the comparable periods in 1993. In addition, the
Company recognized an extraordinary gain of $4.4 million pre-tax ($.04 per
common share after-tax) in the third quarter of 1994 from the early
extinguishment of debt securities. Third quarter 1993 earnings were reduced by
a charge, principally relating to the adjustment of deferred taxes, of
approximately $.04 per common share reflecting federal legislation which
increased the corporate income tax rate.
Although third quarter 1994 sales and earnings per common share were
improved over the comparable period in 1993, the Company's operating margins
decreased due primarily to increased costs and expenses reflecting start-up
costs associated with its expanded capital investment programs, launch costs for
new products and increased steel costs, for its transportation-related products
businesses. In addition, margins continue to be hampered by the operating
results of our specialty products businesses.
Results for the nine months ended September 30, 1994 include gains,
primarily during the first six months of 1994, of approximately $18 million pre-
tax from the sale by the Company of a portion of its common stock holdings of an
equity affiliate. Results for the nine months ended September 30, 1993 include
gains aggregating approximately $9 million pre-tax, recognized during the second
quarter, associated with the sale of stock through a public offering by an
equity affiliate. This income was largely offset by costs and expenses related
to cost reduction initiatives, the restructuring of certain operations and
product lines, adjustments to the carrying value of certain long term assets,
and other costs and expenses.
6
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MASCOTECH, INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(concluded)
As previously announced, the Company continues to review alternatives to
enhance shareholder value and improve the returns on assets employed in certain
of its businesses, and is considering the possibility of major strategic
restructurings and other initiatives which, if pursued, could result in
substantial one-time pre-tax, noncash charges of as much as several hundred
million dollars but which should have a favorable long-term effect on the
Company's balance sheet and future per common share earnings.
The Company also has announced that it intends to increase its planned
1994 and 1995 expenditures for capital programs, including new advanced
manufacturing technologies, primarily in its transportation-related businesses,
to in excess of $300 million. These additional investments, the majority of
which will be made in 1994, reflect the Company's belief in its favorable long-
term outlook and are planned to meet increased demand for certain current
product programs, to provide capacity for new products that the Company expects
to begin producing over the next several years, and to enhance the Company's
leadership positions in advanced manufacturing technologies related to its
forging and metal forming businesses. In both 1992 and 1993, capital
expenditures approximated $60 million.
The Company's Board of Directors has authorized the repurchase of up to
ten million shares of its common stock and convertible preferred stock in open-
market purchases, privately negotiated transactions or otherwise. The Company
has repurchased to date during 1994 approximately four million of its common
shares pursuant to this authorization at a cost of approximately $54 million.
During the second quarter of 1994 the Company amended its existing
Revolving Credit Agreement with a group of banks, resulting in an extension of
the due date to July, 1998 from January, 1997.
In late 1993, the Company adopted a formal plan to divest its energy-
related business segment, which consisted of seven business units with net sales
and operating profit of $153.8 million and $4.6 million, respectively, for the
nine months ended September 30, 1993. As of September 30, 1994, five energy-
related business units have been sold for approximately $140 million of
proceeds. The remaining energy-related business units had net assets at
September 30, 1994 of $21.2 million (adjusted to reflect the anticipated loss
upon disposition, net of tax benefit). The energy-related business segment had
net sales of $56.0 million and a net operating loss of $2.9 million (charged
against the loss provision established in 1993) for the nine months ended
September 30, 1994.
The Company's cash and marketable securities, additional borrowings
available under the Company's revolving credit agreement and anticipated
internal cash flow are expected to provide sufficient liquidity to fund its
near-term working capital, expanded capital expenditure program, and other
investment needs. The Company believes that its longer-term working capital and
other general corporate requirements, including the retirement of its Senior
Subordinated Notes maturing in 1995, will be satisfied through various sources
including the following: its internal cash flow; divestiture of the remaining
businesses in the energy-related segment, other nonstrategic operating assets
and certain additional financial assets; and, to the extent necessary, future
financings in the financial markets. At September 30, 1994, current assets were
approximately three times current liabilities.
7
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PART II. OTHER INFORMATION
MASCOTECH, INC.
Items 1 through 5 are not applicable.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit 11 Computation of Earnings Per Common Share
- Primary and Fully Diluted
Exhibit 12 Computation of Ratio of Earnings to Combined
Fixed Charges and Preferred Stock Dividends
Exhibit 27 Financial Data Schedules
(b) Reports on Form 8-K:
None
8
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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 thereunto duly authorized.
MASCOTECH, INC.
(Registrant)
Date: November 11, 1994 By: /s/ Timothy Wadhams
Timothy Wadhams
Vice President - Controller
and Treasurer
(Chief accounting officer
and authorized signatory)
9
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MASCOTECH, INC.
EXHIBIT INDEX
Exhibit
Exhibit 11 Computation of Earnings Per Common Share
- Primary and Fully Diluted
Exhibit 12 Computation of Ratio of Earnings to Combined
Fixed Charges and Preferred Stock Dividends
Exhibit 27 Financial Data Schedules
10
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<TABLE>
Exhibit 11
MASCOTECH, INC.
Computation of Earnings Per Common Share
Primary and Fully Diluted
(In thousands except per share amounts)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
PRIMARY:
Income from continuing operations
before extraordinary income $15,780 $15,000 $71,520 $52,380
Preferred stock dividends 3,240 5,420 9,720 10,250
Income from continuing operations
before extraordinary income
attributable to common stock 12,540 9,580 61,800 42,130
Add convertible preferred stock dividends --- (A) --- 9,720 ---
Earnings for computing primary earnings
from continuing operations per common
share before extraordinary income 12,540 9,580 71,520 42,130
Income from operations of discontinued
segment --- 320 --- 2,200
Earnings for computing primary earnings per
common share before extraordinary income 12,540 9,900 71,520 44,330
Extraordinary income (net of income taxes) 2,600 --- 2,600 ---
Earnings attributable to common stock,
as adjusted $15,140 $ 9,900 $74,120 $44,330
Weighted average number of common shares
outstanding during each period 58,270 50,200 59,690 53,190
Addition from assumed exercise of stock
options and warrants 1,930 5,430 4,110 3,740
Addition from assumed conversion of
preferred stock --- (A) --- 10,800 ---
Weighted average number of common shares
and equivalents outstanding during each
period--without dilution 60,200 55,630 74,600 56,930
Primary earnings per common and common
equivalent share:
Continuing operations $.21 $.17 $.96 $.74
Income from operations of discontinued
segment -- .01 -- .04
Income before extraordinary income .21 .18 .96 .78
Extraordinary income .04 -- .03 --
Earnings attributable to common stock $.25 $.18 $.99 $.78
</TABLE>
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<TABLE>
Exhibit 11
MASCOTECH, INC.
Computation of Earnings Per Common Share
Primary and Fully Diluted
(In thousands except per share amounts)
(concluded)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
FULLY DILUTED:
Income from continuing operations
before extraordinary income $15,780 $15,000 $71,520 $52,380
Preferred stock dividends 3,240 5,420 9,720 10,250
Income from continuing operations
before extraordinary income
attributable to common stock 12,540 9,580 61,800 42,130
Add after-tax convertible debenture
related expenses 2,390 1,770 7,000 5,510
Add convertible preferred stock dividends --- (A) --- 9,720 ---
Earnings for computing fully diluted
earnings from continuing operations per
common share before extraordinary income 14,930 11,350 78,520 47,640
Income from operations of discontinued
segment --- 320 --- 2,200
Earnings for computing fully diluted earnings
per common share before extraordinary income 14,930 11,670 78,520 49,840
Extraordinary income (net of income taxes) 2,600 --- 2,600 ---
Earnings attributable to common
stock, as adjusted $17,530 $11,670 $81,120 $49,840
Weighted average number of common shares
outstanding during each period 58,270 50,200 59,690 53,190
Addition from assumed conversion of
convertible debentures as of the issue date 10,090 10,380 10,150 10,380
Addition from assumed exercise of stock
options and warrants 1,930 5,540 4,110 4,360
Addition from assumed conversion of
preferred stock --- (A) --- 10,800 ---
Weighted average number of common shares and
equivalents outstanding during each period
--fully diluted basis 70,290 66,120 84,750 67,930
Fully diluted earnings per common and common
equivalent share:
Continuing operations $.21 $.17 $.93 $.70
Income from operations of discontinued
segment -- .01 -- .03
Income before extraordinary income .21 .18 .93 .73
Extraordinary income .04 -- .03 --
Earnings attributable to common stock $.25 $.18 $.96 $.73
(A) Amounts are not reflected in the calculation for three months ended September 30, 1994 as results of assumed conversion
would be anti-dilutive.
</TABLE>
<TABLE>
Exhibit 12
MASCOTECH, INC.
Computation of Ratio of Earnings to Combined Fixed Charges and
Preferred Stock Dividends
(Dollars In Thousands)
<CAPTION>
9 Months
Ended
September 30, For The Years Ended December 31
1994 1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C> <C>
Earnings Before Income
Taxes and Fixed Charges:
Income (loss) before income
taxes and extraordinary
income..................... $120,340 $121,180 $ 68,250 $(12,470) $(30,240) $ 85,410
Add (deduct) equity in
undistributed (earnings)
losses of less-than-fifty-
percent owned companies.... (21,060) (19,930) (21,760) (3,530) (3,430) (1,980)
Add interest on
indebtedness, net.......... 37,170 83,000 87,830 124,220 139,770 146,570
Add amortization of debt
expense.................... 2,760 4,390 1,930 2,230 2,670 3,510
Estimated interest factor
for rentals................ 4,570 5,550 5,740 5,220 4,520 4,470
Earnings before income
taxes and fixed charges.... $143,780 $194,190 $141,990 $115,670 $113,290 $237,980
Fixed Charges:
Interest on indebtedness,
net........................ $ 37,320 $ 83,110 $ 87,980 $124,370 $140,380 $147,320
Amortization of debt
expense.................... 2,760 4,390 1,930 2,230 2,670 3,510
Estimated interest factor
for rentals................ 4,570 5,550 5,740 5,220 4,520 4,470
Total fixed charges...... 44,650 93,050 95,650 131,820 147,570 155,300
Preferred stock dividend
requirement (a)............ 16,440 25,860 17,140 11,350 120 130
Combined fixed charges and
preferred stock dividends.. $ 61,090 $118,910 $112,790 $143,170 $147,690 $155,430
Ratio of earnings to
fixed charges................ 3.2 2.1 1.5 .9(b) .8(d) 1.5
Ratio of earnings to combined
fixed charges and preferred
stock dividends.............. 2.4 1.6 1.3 .8(c) .8(e) 1.5
(a) Represents amount of income before provision for income taxes required to meet the preferred stock dividend
requirements of the Company and its 50% owned companies.
(b) 1991 earnings were inadequate to cover fixed charges by $16,150.
(c) 1991 earnings were inadequate to cover combined fixed charges and preferred stock dividends by $27,500.
(d) 1990 earnings were inadequate to cover fixed charges by $34,280.
(e) 1990 earnings were inadequate to cover combined fixed charges and preferred stock dividends by $34,400.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SEPTEMBER
30, 1994 MASCOTECH, INC. FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1993
<PERIOD-END> SEP-30-1994
<CASH> 37,350
<SECURITIES> 70,310
<RECEIVABLES> 257,280<F1>
<ALLOWANCES> 0
<INVENTORY> 163,230
<CURRENT-ASSETS> 612,070
<PP&E> 908,090
<DEPRECIATION> (342,790)
<TOTAL-ASSETS> 1,890,070
<CURRENT-LIABILITIES> 206,810
<BONDS> 867,700
<COMMON> 56,610
0
10,800
<OTHER-SE> 611,680
<TOTAL-LIABILITY-AND-EQUITY> 1,890,070
<SALES> 1,261,690
<TOTAL-REVENUES> 1,261,690
<CGS> 1,018,250
<TOTAL-COSTS> 1,018,250
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 36,080
<INCOME-PRETAX> 120,340
<INCOME-TAX> 48,820
<INCOME-CONTINUING> 71,520
<DISCONTINUED> 0
<EXTRAORDINARY> 2,600
<CHANGES> 0
<NET-INCOME> 74,120
<EPS-PRIMARY> .99
<EPS-DILUTED> .96
<FN>
<F1>RECEIVABLES ARE PRESENTED NET OF ALLOWANCES
</FN>
</TABLE>
