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 June 30, 1996
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 July 31, 1996
Common stock, par value $1 per share 55,100,000
<PAGE>
MASCOTECH, INC.
INDEX
Page No.
Part I. Financial Information
Item 1. Financial Statements
Consolidated Condensed Balance Sheet -
June 30, 1996 and December 31, 1995 1
Consolidated Condensed Statements of Operations
For the Three and Six Months Ended
June 30, 1996 and 1995 2
Consolidated Condensed Statement of
Cash Flows for the Six Months
Ended June 30, 1996 and 1995 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
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
MASCOTECH, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
June 30, 1996 and December 31, 1995
(Dollars in thousands)
June 30, December 31,
ASSETS 1996 1995
Current assets:
Cash and cash investments $ 17,450 $ 16,380
Receivables 191,900 216,490
Inventories 81,280 94,420
Deferred and refundable income taxes 11,050 51,300
Prepaid expenses and other assets 24,690 25,750
Net current assets of businesses held
for disposition 39,190 62,410
Total current assets 365,560 466,750
Equity and other investments in affiliates 256,510 237,530
Property and equipment, net 405,300 466,450
Excess of cost over net assets of acquired
companies 70,020 115,750
Notes receivable and other assets 47,890 47,780
Net non-current assets of businesses held
for disposition 20,720 104,510
Total assets $1,166,000 $1,438,770
LIABILITIES
Current liabilities:
Accounts payable $ 73,160 $ 99,710
Accrued liabilities 94,220 82,400
Current portion of long-term debt 2,550 5,150
Total current liabilities 169,930 187,260
Long-term debt 448,740 701,910
Deferred income taxes and other long-term
liabilities 135,600 134,420
Total liabilities 754,270 1,023,590
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: 55.4 million
and 55.5 million 55,390 55,520
Paid-in capital 304,850 307,910
Retained earnings 37,250 32,380
Cumulative translation adjustments 3,440 8,570
Total shareholders' equity 411,730 415,180
Total liabilities and
shareholders' equity $1,166,000 $1,438,770
The accompanying notes are an integral part of the
consolidated condensed financial statements.
1
<PAGE>
MASCOTECH, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
For the Three and Six Months Ended June 30, 1996 and 1995
(Dollars in thousands except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Net sales $ 345,060 $ 439,290 $ 718,980 $ 884,300
Cost of sales (287,130) (370,040) (599,610) (738,590)
Selling, general and
administrative expenses (33,830) (46,890) (71,360) (93,280)
Charge for disposition of
businesses, net (29,520) (1,000) (31,520) (2,500)
Operating profit (loss) (5,420) 21,360 16,490 49,930
Other income (expense), net:
Interest expense (6,840) (13,110) (14,760) (27,800)
Equity and interest income
from affiliates 11,700 11,360 18,340 18,410
Gain from change in investment of
equity affiliate --- 5,100 --- 5,100
Other income (expense), net 140 770 (2,600) 2,760
5,000 4,120 980 (1,530)
Income (loss) before income taxes
and cumulative effect of
accounting change, net (420) 25,480 17,470 48,400
Income taxes 6,240 10,380 13,390 19,840
Income (loss) before cumulative effect
of accounting change, net (6,660) 15,100 4,080 28,560
Cumulative effect of accounting
change, net --- --- 11,700 ---
Net income (loss) $ (6,660) $ 15,100 $ 15,780 $ 28,560
Preferred stock dividends $ 3,240 $ 3,240 $ 6,480 $ 6,480
Earnings (loss) attributable to
common stock $ (9,900) $ 11,860 $ 9,300 $ 22,080
Earnings (loss) per common and
common equivalent share:
Primary:
Earnings (loss) before cumulative
effect of accounting change, net $(.18) $ .21 $(.04) $ .39
Cumulative effect of accounting
change, net -- -- .20 --
Earnings (loss) attributable to
common stock $(.18) $ .21 $ .16 $ .39
Cash dividends declared $ .04 $ .03 $ .08 $ .03
The accompanying notes are an integral part of the
consolidated condensed financial statements.
2
<PAGE>
MASCOTECH, INC.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
For the Six Months Ended June 30, 1996 and 1995
(Dollars in thousands)
Six Months Ended
June 30
1996 1995
CASH FROM (USED FOR):
OPERATIONS:
Net cash from earnings $ 44,320 $ 40,190
(Increase) decrease in inventories 7,830 (1,150)
(Increase) in receivables (2,890) (8,940)
Increase (decrease) in accounts payable
and accrued liabilities 11,140 (25,800)
Decrease in marketable securities, net --- 53,230
Other, net 29,720 33,550
Net cash from operating activities 90,120 91,080
FINANCING:
Retirement of Senior Subordinated Notes --- (233,150)
Payment of other debt (257,650) (48,460)
Increase in other debt 720 173,750
Retirement of Company Common Stock (6,140) (5,990)
Payment of preferred stock dividends (6,480) (6,480)
Payment of common stock dividends (4,430) (3,550)
Other, net 1,920 (3,170)
Net cash (used for) financing
activities (272,060) (127,050)
INVESTMENTS:
Capital expenditures (19,550) (35,620)
Proceeds from sale of businesses 198,020 37,400
Acquisition of businesses (4,470) (22,810)
Receipt of cash from notes receivable 8,610 5,160
Net assets of businesses held
for disposition (820) 7,790
Other, net 1,220 (2,540)
Net cash from (used for) investing
activities 183,010 (10,620)
CASH AND CASH INVESTMENTS:
Increase (decrease) for the six months 1,070 (46,590)
At January 1 16,380 61,950
At June 30 $ 17,450 $ 15,360
Supplemental Cash Flow Information:
Net cash paid (refunded) during the period for:
Interest $ 8,680 $ 33,470
Income taxes $ (23,150) $ 3,060
The accompanying notes are an integral part of the
consolidated condensed financial statements.
3
<PAGE>
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 June 30, 1996 and the results of operations for the three
and six months ended June 30, 1996 and 1995 and cash flows for six
months ended June 30, 1996 and 1995. In addition, the balance sheet
as of June 30, 1996 and December 31, 1995 reflects the segregation of
net current and net non-current assets related to the plan, adopted in
late 1994, to dispose of certain businesses. Certain 1995 amounts have
been reclassified to conform to the presentation adopted in calendar
1995.
Primary loss per common share was calculated based on 55.4 million
weighted average common shares and common equivalent shares outstanding
for the three months ended June 30, 1996. Primary earnings per common
share was calculated based on 58.7 million weighted average common and
common equivalent shares outstanding for the three months ended June
30, 1995. Primary earnings per common share was calculated based on
56.6 million and 58.9 million weighted average common shares
outstanding for the six months ended June 30, 1996 and 1995,
respectively. The convertible preferred stock did not meet the
criteria for inclusion as a common stock equivalent for the
six months and three months ended June 30, 1996 and 1995. Earnings per
common share for the periods ended June 30, 1996 were computed based upon
the treasury stock method and, in 1995, the modified treasury stock
method, which results in an assumed interest expense reduction and
incremental shares based on the assumed conversion of all stock options
and warrants.
Fully diluted earnings per common share are only presented when the
assumed conversion of convertible securities is dilutive. Convertible
securities did not have a dilutive effect on earnings (loss) per
common share for the six months and three months ended June 30, 1996
and 1995.
B. Inventories by component are as follows (in thousands):
June 30, December 31,
1996 1995
Finished goods $ 15,810 $ 21,120
Work in process 34,280 38,480
Raw materials 31,190 34,820
$ 81,280 $ 94,420
C. Property and equipment, net reflects accumulated depreciation of $279
million and $281 million as at June 30, 1996 and December 31, 1995,
respectively.
D. On May 31, 1996 the Company completed the previously announced sale of
MascoTech Stamping Technologies, Inc. (MSTI), a wholly owned
subsidiary, to Tower Automotive, Inc. (Tower) which resulted in a
second quarter after-tax loss of approximately $26 million ($.47 per
share), including losses of approximately $1 million after-tax ($.03
per share) related to the closure of a MSTI manufacturing facility not
included in the sale. MSTI had sales of approximately $190 million in
1995. The Company has received initial consideration of approximately
$80 million consisting principally of $55 million in cash, 785,000
shares of Tower common stock and warrants to purchase additional Tower
common stock. The Company applied the cash proceeds (including
approximately $14 million received from the subsequent sale of 600,000
shares of Tower common stock) to reduce its indebtedness in the second
quarter. The Company may receive additional consideration, contingent
upon the future earnings of MSTI over the next three years, which if
entirely earned, would substantially offset the loss.
4
<PAGE>
MASCOTECH, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(concluded)
E. The liability for accrued exit costs approximated $18 million at December
31, 1995. During the first six months of 1996, $3 million of exit costs
were charged against the accrual. The accrual was further reduced by
approximately $4 million to reflect expected reduced future costs,
principally employee retirement costs. At June 30, 1996 the accrual
was $14 million.
F. The Company was required to adopt Statement of Financial Accounting
Standards No. 121 ("SFAS 121"), "Accounting for the Impairment of Long-
Lived Assets and for Long-Lived Assets to Be Disposed Of", effective
January 1, 1996. SFAS 121 requires that long-lived assets and certain
identifiable intangible assets held for disposition be reported at the
lower of carrying value at date of decision to dispose or fair value
less cost to sell. The Company determined that the estimated proceeds
of the businesses held for sale at January 1, 1996 exceeded the
carrying value for such assets, and accordingly, has recorded income
in the first quarter of 1996, classified as a cumulative effect of
accounting change, in the amount of $11.7 million after-tax to reflect
the impact of adopting SFAS 121.
G. 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 June 30, 1996 and June 30, 1995,
respectively. Intercompany transactions have been eliminated.
Approximate combined condensed financial data are as follows (in
thousands):
June 30
1996 1995
Current assets $ 655,000 $ 728,450
Current liabilities (231,320) (243,330)
Working capital 423,680 485,120
Property and equipment, net 581,320 600,060
Excess of cost over net
assets of acquired companies 152,380 198,450
Other assets 278,240 468,930
Long-term debt (635,780) (1,001,860)
Deferred income taxes and
other long-term liabilities (173,550) (131,620)
Equity of the other shareholders
of TriMas (214,560) (184,700)
Equity of shareholders of
MascoTech $ 411,730 $ 434,380
Net sales $ 1,024,580 $1,182,130
Operating profit $ 71,550 $ 103,830
Cumulative effect of accounting change $ 11,700 $ ---
Net income $ 15,780 $ 28,560
Earnings attributable to
common stock $ 9,300 $ 22,080
5
<PAGE>
MASCOTECH, INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Sales for the second quarter ended June 30, 1996 declined to $345 million
from $439 million in 1995, reflecting the disposition of certain businesses as
part of the Company's previously announced restructuring plan. Sales of the
Company's remaining core transportation-related businesses, which approximated
$279 million, increased nine percent in the second quarter of 1996 as compared
with the prior year quarter, while sales of the Company's businesses held for
sale or sold decreased 64 percent from the comparable period in 1995.
Sales for the six month period ended June 30, 1996 decreased 19 percent
over the comparable period in 1995, reflecting the disposition of certain
businesses as part of the Company's previously announced restructuring plan.
Sales of the Company's remaining core transportation-related businesses,
which approximated $557 million, increased eight percent compared to the
prior year period. Sales of the Company's businesses held for sale or sold,
which approximated $162 million, decreased 56 percent from the comparable
period in 1995.
Income after preferred stock dividends and excluding the losses related to
the previously announced disposition of MascoTech Stamping Technologies, Inc.
(MSTI) in the second quarter of 1996 would have been approximately $16
million or $.29 per common share, compared with $11.9 million or $.21 per
common share in the comparable period in 1995. Including losses related to
the disposition of MSTI, second quarter 1996 loss after preferred stock
dividends was $9.9 million or $.18 per common share.
Operating profit for the Company's remaining core businesses before
general corporate expense and charge on disposition of businesses, net for
the six months and three months ended June 30, 1996 was approximately $69
million and $35 million, respectively, as compared with $65 million and $32
million for the comparable periods in 1995. Businesses held for sale or
sold had operating losses before general corporate expense and charge on
disposition of businesses, net for the six months and three months ended
June 30, 1996 of approximately $9 million and $5 million, respectively, as
compared to $3 million and $5 million for the comparable periods in 1995.
Second quarter 1996 results benefitted from reduced interest expense as
proceeds from the divestiture of businesses were applied to reduce the
Company's indebtedness. Second quarter 1995 results include a pre-tax gain
of approximately $5 million resulting from the sale of stock by an equity
affiliate. The unusual relationship of tax expense to pre-tax amounts in
1996 is the result of a significant portion of the loss on the sale of MSTI
not being deductible for tax purposes.
In December 1994, the Company announced the planned disposition of a
number of businesses, including its Architectural Products, Defense and
certain of its transportation-related businesses, as part of its long-term
strategic plan to increase the focus on its core operating capabilities. To
date, the Company has disposed of certain of such businesses for proceeds
(including related tax benefits) aggregating approximately $315 million.
The Company expects that the divestiture of the remaining businesses held
for sale will be completed in 1996 for additional proceeds (including related
tax benefits) approximating $85 million. At June 30, 1996 the net assets of
businesses held for disposition decreased by $107 million as compared to
December 31, 1995 as a result of the disposition of such businesses and from
the reduction of assets employed in these businesses through operating
activity.
On May 31, 1996 the Company completed the previously announced sale of
MSTI, a wholly owned subsidiary, to Tower Automotive, Inc. The disposition
of MSTI and the related closure of a MSTI manufacturing facility not included
in the sale resulted in after-tax losses of approximately $26 million (or
$.47 per share) in the second quarter. The Company has received initial
consideration of approximately $80 million consisting principally of $55
million in cash, 785,000 shares of Tower common stock and warrants to
purchase additional Tower common stock. The Company applied the cash
proceeds (including approximately $14 million received from the subsequent
sale of 600,000 shares of Tower common stock) to reduce its indebtedness in
the second quarter. The Company may receive additional consideration,
contingent upon the future earnings of MSTI over the next three years, which
if entirely earned, would substantially offset the loss.
The Company paid a cash dividend of $.04 per common share in the second
quarter of 1996 and the Board of Directors declared a dividend of $.05 per
common share, a 25 percent increase in the quarterly dividend rate, on
July 12, 1996 payable on August 12, 1996.
6
<PAGE>
MASCOTECH, INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(concluded)
Additional borrowings available under the Company's revolving credit
agreement and otherwise, proceeds from the disposition of businesses held for
sale and anticipated internal cash flow are expected to provide sufficient
liquidity to fund the Company's near-term working capital needs and capital
expansion programs. The Company believes that its longer-term working
capital and other general corporate requirements will be satisfied through
its internal cash flow, revolving credit agreement, the disposition of
certain financial assets and, to the extent necessary, future financings in
the financial markets. At June 30, 1996, current assets were in excess of
two times current liabilities.
7
<PAGE>
PART II. OTHER INFORMATION
MASCOTECH, INC.
Items 1, 2, 3, and 5 are not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
The annual meeting of shareholders was held on May 21, 1996 at which
the three nominees for the Company's Board of Directors identified
in the Company's proxy statement dated April 29, 1996 were elected,
and the Board of Directors recommendation of Coopers & Lybrand L.L.P.
as independent auditors for the Company for the year 1996 was
approved. Following is a tabulation of shares voted:
Election of Directors:
Peter A. Dow (1) Roger T. Fridholm Eugene A. Gargaro, Jr.(1)
For 55,152,597 55,442,353 54,995,452
Withheld 814,464 524,708 971,609
(1) Re-elected
Ratification of the Selection of Coopers & Lybrand L.L.P. as
Independent Auditors for the Company for the Year 1996
For 55,775,601
Against 72,779
Abstain 118,681
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 Schedule
(b) Reports on Form 8-K:
1. Report on Form 8-K dated June 17, 1996 reporting under Item 2
"Acquisition or Disposition of Assets" and under Item 7 unaudited
pro forma consolidated condensed balance sheet as of March 31,
1996 and unaudited pro forma consolidated condensed income
statements for the year ended December 31, 1995 and for the three
months ended March 31, 1996 for the assumed disposition of
MascoTech Stamping Technologies, Inc., a wholly owned subsidiary
of the registrant.
8
<PAGE>
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: August 13, 1996 By: /s/ Timothy Wadhams
Timothy Wadhams
Vice President - Controller
and Treasurer
(Chief accounting officer
and authorized signatory)
9
<PAGE>
MASCOTECH, INC.
EXHIBIT INDEX
Exhibit Sequential
Page No.
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 Schedule
Exhibit 11
MASCOTECH, INC.
Computation of Earnings Per Common Share
Primary and Fully Diluted
(In thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
PRIMARY:
<S> <C> <C> <C> <C>
Income (loss) before cumulative effect
of accounting change $(6,660) $15,100 $ 4,080 $28,560
Preferred stock dividends 3,240 3,240 6,480 6,480
Income (loss) before cumulative effect
of accounting change attributable to
common stock (9,900) 11,860 (2,400) 22,080
Add after tax interest expense reduction
on conversion of stock options and
warrants --- 320 --- 640
Earnings (loss) before cumulative effect
of accounting change attributable to
common stock (9,900) 12,180 (2,400) 22,720
Cumulative effect of accounting change --- --- 11,700 ---
Earnings (loss) attributable to common
stock, as adjusted $(9,900) $12,180 $ 9,300 $22,720
Weighted average number of common shares
outstanding during each period 55,390 56,220 55,360 56,420
Addition from assumed exercise of stock
options and warrants --- 2,430 1,210 2,430
Weighted average number of common shares
and equivalents outstanding during each
period--without dilution 55,390 58,650 56,570 58,850
Primary earnings (loss) per common and
common equivalent share:
Earnings (loss) before cumulative
effect of accounting change $(.18) $ .21 $(.04) $ .39
Cumulative effect of accounting change -- -- .20 --
Earnings (loss) attributable to
common stock $(.18) $ .21 $ .16 $ .39
</TABLE>
Earnings per common share for the periods ended June 30, 1995 were
computed based on the modified treasury stock method which results in an
assumed interest expense reduction and incremental shares based on assumed
conversion of all stock options and warrants and, in 1996, on the treasury
stock method.
<PAGE>
Exhibit 11
MASCOTECH, INC.
Computation of Earnings Per Common Share
Primary and Fully Diluted
(In thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
FULLY DILUTED:
<S> <C> <C> <C> <C>
Income (loss) before cumulative effect of
of accounting change $(6,660) $15,100 $ 4,080 $28,560
Preferred stock dividends 3,240 3,240 6,480 6,480
Income (loss) attributable to common stock (9,900) 11,860 (2,400) 22,080
Add interest reduction on conversion of
stock options and warrants --- 250 --- 580
Earnings (loss) before cumulative effect
of accounting change attributable to
common stock (9,900) 12,110 (2,400) 22,660
Cumulative effect of accounting change --- --- 11,700 ---
Earnings (loss) attributable to common
stock, as adjusted $(9,900) $12,110 $ 9,300 $22,660
Weighted average number of common shares
outstanding during each period 55,390 56,220 55,360 56,420
Addition from assumed exercise of stock
options and warrants --- 2,430 1,630 2,430
Weighted average number of common shares
and equivalents outstanding during
each period
--fully diluted basis 55,390 58,650 56,990 58,850
Fully diluted earnings (loss) per common
and common equivalent share:
Earnings (loss) before cumulative
effect of accounting change $(.18) $ .21 $(.04) $ .39
Cumulative effect of accounting change -- -- .20 --
Earnings (loss) attributable to
common stock $(.18) $ .21 $ .16 $ .39
</TABLE>
Earnings per common share for the periods ended June 30, 1995 were
computed based on the modified treasury stock method which results in an
assumed interest expense reduction and incremental shares based on assumed
conversion of all stock options and warrants and, in 1996, the treasury
stock method.
Exhibit 12
MASCOTECH, INC.
Computation of Ratio of Earnings to Combined Fixed Charges and
Preferred Stock Dividends
(Dollars in thousands)
<TABLE>
<CAPTION>
6 Months
Ended
June 30, For The Years Ended December 31
1996 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Earnings (Loss) Before Income
Taxes and Fixed Charges:
Income (loss) from continuing
operations before income
taxes (credit),
extraordinary income (loss)
and cumulative effect of
accounting change $ 17,470 $100,280 $(264,490) $121,180 $ 68,250 $(12,470)
Deduct equity in
undistributed earnings
of less-than-fifty-
percent owned companies.... (14,060) (29,590) (23,350) (19,930) (21,760) (3,530)
Add interest on
indebtedness, net.......... 15,210 51,500 51,290 83,000 87,830 124,220
Add amortization of debt
expense.................... 750 1,670 3,450 4,390 1,930 2,230
Estimated interest factor
for rentals................ 3,290 7,070 6,220 5,550 5,740 5,220
Earnings (loss) before income
taxes and fixed charges.... $ 22,660 $130,930 $(226,880) $194,190 $141,990 $115,670
Fixed Charges:
Interest on indebtedness,
net........................ $ 15,260 $ 51,690 $ 51,540 $ 83,110 $ 87,980 $124,370
Amortization of debt
expense.................... 750 1,670 3,450 4,390 1,930 2,230
Estimated interest factor
for rentals................ 3,290 7,070 6,220 5,550 5,740 5,220
Total fixed charges...... 19,300 60,430 61,210 93,050 95,650 131,820
Preferred stock dividend
requirement (a)............ 10,760 21,970 14,630 25,860 17,140 11,350
Combined fixed charges and
preferred stock dividends.. $ 30,060 $ 82,400 $ 75,840 $118,910 $112,790 $143,170
Ratio of earnings to
fixed charges................ 1.2 2.2 -- (c) 2.1 1.5 .9(e)
Ratio of earnings to combined
fixed charges and preferred
stock dividends.............. .8(b) 1.6 -- (d) 1.6 1.3 .8(f)
</TABLE>
(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) Six months ended June 30, 1996 earnings are inadequate to cover combined
fixed charges and preferred stock dividends by $7,400.
(c) 1994 results of operations are inadequate to cover fixed charges by
$288,090.
(d) 1994 results of operations are inadequate to cover combined fixed charges
and preferred stock dividends by $302,720.
(e) 1991 earnings are inadequate to cover fixed charges by $16,150.
(f) 1991 earnings are inadequate to cover combined fixed charges and
preferred stock dividends by $27,500.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM JUNE 30,
1996 MASCOTECH, INC. 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 17,450
<SECURITIES> 0
<RECEIVABLES> 191,900
<ALLOWANCES> 0
<INVENTORY> 81,280
<CURRENT-ASSETS> 365,560
<PP&E> 683,800
<DEPRECIATION> (278,500)
<TOTAL-ASSETS> 1,166,000
<CURRENT-LIABILITIES> 169,930
<BONDS> 448,740
0
10,800
<COMMON> 55,390
<OTHER-SE> 345,540
<TOTAL-LIABILITY-AND-EQUITY> 1,166,000
<SALES> 718,980
<TOTAL-REVENUES> 718,980
<CGS> 599,610
<TOTAL-COSTS> 599,610
<OTHER-EXPENSES> 31,520
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 14,760
<INCOME-PRETAX> 17,470
<INCOME-TAX> 13,390
<INCOME-CONTINUING> 4,080
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 11,700
<NET-INCOME> 15,780
<EPS-PRIMARY> .16
<EPS-DILUTED> .16
</TABLE>
