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 March 31, 1999
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 April 30, 1999
Common stock, par value $1 per share 44,181,000
<PAGE>
MASCOTECH, INC.
INDEX
Page No.
Part I. Financial Information
Item 1. Financial Statements
Consolidated Condensed Balance Sheet -
March 31, 1999 and December 31,1998 1
Consolidated Condensed Statement of Income
for the Three Months Ended
March 31, 1999 and 1998 2
Consolidated Condensed Statement of
Cash Flows for the Three Months
Ended March 31,1999 and 1998 3
Notes to Consolidated Condensed Financial
Statements 4-6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 7-10
Part II. Other Information and Signature 11-12
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
MASCOTECH, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
March 31, 1999 and December 31, 1998
(Dollars in thousands)
<TABLE>
March 31, December 31,
ASSETS 1999 1998
<S> <C> <C>
Current assets:
Cash and cash investments $ 20,040 $ 29,390
Receivables 273,990 223,340
Inventories 195,900 198,350
Deferred and refundable income taxes 26,330 26,590
Prepaid expenses and other assets 20,620 23,710
Total current assets 536,880 501,380
Equity and other investments in affiliates 94,280 93,560
Property and equipment, net 669,690 678,130
Excess of cost over net assets of acquired
companies 770,580 764,220
Notes receivable and other assets 55,360 53,250
Total assets $2,126,790 $2,090,540
LIABILITIES
Current liabilities:
Accounts payable $ 120,460 $ 114,830
Accrued liabilities 154,970 135,230
Total current liabilities 275,430 250,060
Convertible subordinated debentures 305,000 310,000
Long-term debt 1,099,360 1,078,240
Deferred income taxes and other long-term
liabilities 200,110 198,360
Total liabilities 1,879,900 1,836,660
SHAREHOLDERS' EQUITY
Preferred stock, $1 par:
Authorized: 25 million;
Outstanding: None --- ---
Common stock, $1 par:
Authorized: 250 million;
Outstanding: 45.0 million 45,030 45,780
Paid-in capital 5,480 16,820
Retained earnings 266,540 245,860
Accumulated other comprehensive loss (18,240) (7,460)
Less: Restricted stock awards (51,920) (47,120)
Total shareholders' equity 246,890 253,880
Total liabilities and
shareholders' equity $2,126,790 $2,090,540
</TABLE>
The accompanying notes are an integral part of the
consolidated condensed financial statements.
1
<PAGE>
MASCOTECH, INC.
CONSOLIDATED CONDENSED STATEMENT OF INCOME
For the Three Months Ended March 31, 1999 and 1998
(Dollars in thousands except per share amounts)
<TABLE>
Three Months Ended March 31
1999 1998
<S> <C> <C>
Net sales $ 448,660 $ 400,760
Cost of sales (332,640) (296,370)
Selling, general and
administrative expenses (57,150) (45,560)
Gain on disposition of businesses, net 10,010 ---
Operating profit 68,880 58,830
Other income (expense), net:
Interest expense (20,220) (18,610)
Equity and interest income
from affiliates 1,730 2,100
Deferred gain recognized from
disposition of business --- 7,000
Other, net (3,650) 5,700
(22,140) (3,810)
Income before income taxes 46,740 55,020
Income taxes 22,880 22,280
Net income $ 23,860 $ 32,740
Basic earnings per share $ .58 $ .74
Diluted earnings per share $ .47 $ .60
Cash dividends declared per share $ .07 ---
Cash dividends paid per share $ .07 $ .06
</TABLE>
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 Three Months Ended March 31, 1999 and 1998
(Dollars in thousands)
<TABLE>
Three Months Ended
March 31
1999 1998
<S> <C> <C>
CASH FROM (USED FOR):
OPERATIONS:
Net cash from earnings $ 55,920 $ 44,900
Decrease (increase) in inventories 1,920 (4,380)
(Increase)in receivables (52,690) (34,040)
Increase in accounts payable and
accrued liabilities 11,740 29,160
Decrease in marketable securities, net --- 27,340
Decrease in prepaid expenses and
other current assets 3,330 1,160
Other, net (3,210) (740)
Net cash from operating activities 17,010 63,400
FINANCING:
Payment of debt (39,330) (284,450)
Increase in debt 54,850 1,040,000
Payment of common stock dividends (3,180) (2,810)
Retirement of Company common stock (12,280) ---
Other, net (5,980) 200
Net cash from (used for) financing
activities (5,920) 752,940
INVESTMENTS:
Capital expenditures (29,940) (24,830)
Cash from sale of businesses 3,540 ---
Acquisition of businesses, net of cash
acquired --- (820,260)
Proceeds from redemptions of debt by
affiliates --- 56,900
Other, net 5,960 7,480
Net cash (used for) investing
activities (20,440) (780,710)
CASH AND CASH INVESTMENTS:
(Decrease) increase for the three months (9,350) 35,630
At January 1 29,390 41,110
At March 31 $ 20,040 $ 76,740
Supplemental Cash Flow Information:
Net cash paid during the period for:
Interest $ 16,250 $ 14,340
Income taxes $ 9,120 $ 4,190
</TABLE>
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
March 31, 1999 and the results of operations and cash flows
for the three months ended March 31, 1999 and 1998.
B. Inventories by component are as follows (in thousands):
<TABLE>
March 31 December 31
1999 1998
<S> <C> <C>
Finished goods $ 79,370 $ 87,810
Work in process 54,410 47,960
Raw materials 62,120 62,580
$195,900 $198,350
</TABLE>
C. Property and equipment, net reflects accumulated
depreciation of $318 million and $313 million as at March
31, 1999 and December 31, 1998, respectively.
D. The Company's total comprehensive income for the period was
as follows (in thousands):
<TABLE>
Three Months Ended
March 31
1999 1998
<S> <C> <C>
Net income $ 23,860 $ 32,740
Other comprehensive loss (principally foreign
currency translation) (10,780) (2,050)
Total comprehensive income $ 13,080 $ 30,690
</TABLE>
E. In January 1998, the Company received $48 million of cash
from MSX International, Inc. ("MSXI") in payment of certain
amounts due MascoTech, resulting from the sale of the
Company's engineering and technical business services
business to MSXI in early 1997. The Company realized a pre-
tax gain of $7 million in the first quarter of 1998
resulting from the partial recognition of a deferred gain
that was deferred at the time of the sale pending the
receipt of cash.
F. On January 22, 1998, the Company completed the acquisition
of TriMas Corporation ("TriMas") by purchasing all of the
outstanding shares of TriMas not already owned by the
Company for approximately $920 million. The Company
previously owned 37 percent of TriMas. The results for
first quarter of 1998 reflect TriMas sales and operating
results from date of acquisition.
G. The Company has completed the sale of its aftermarket-
related and vacuum metalizing businesses in April for total
proceeds aggregating approximately $105 million, including $90
million of cash which will be applied to reduce the Company's
indebtedness, a note receivable of $6 million and retained equity
interests in the ongoing businesses. These transactions resulted
in a pre-tax gain of approximately $25 million ($14 million after-
tax), of which $10 million was recognized in the first quarter of
1999 (including $15.2 million ($6 million after-tax) resulting
from the Company's revised estimate of the fair market value of
certain assets held for sale at March 31, 1999 and a loss of
approximately $5.2 million ($3.8 million after-tax) on a
transaction that closed March 1999). The remaining pre-tax gain
on disposition of approximately $15 million ($12 million after-
tax) will be recognized in the second quarter of 1999.
4
<PAGE>
MASCOTECH, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(continued)
H. Effective December 31, 1998, the Company adopted SFAS No.
131, "Disclosure about Segments of an Enterprise and Related
Information." The adoption of SFAS No. 131 did not affect
results of operations or financial position but did affect
the disclosure of segment information.
The Company purchased TriMas in January 1998 and the segment
data for 1998 reflects TriMas as though the transaction
had occurred on January 1, 1998, consistent with the
Company's internal management reporting.
<TABLE>
Three Months Ended March 31
1999 1998
<S> <C> <C>
Revenues from External Customers
Specialty Metal Formed Products $202,700 $201,630
Towing Systems 69,090 57,290
Specialty Fasteners 61,260 58,570
Specialty Packaging & Sealing Products 57,550 57,360
Specialty Industrial Products 27,460 29,210
Companies Sold or Held for Sale 30,600 32,940
Total $448,660 $437,000
Intersegment Revenues
Specialty Metal Formed Products $ 2,380 $ 1,000
Towing Systems 2,250 2,100
Specialty Fasteners 830 370
Specialty Packaging & Sealing Products --- ---
Specialty Industrial Products 170 240
Companies Sold or Held for Sale 700 760
Total $ 6,330 $ 4,470
Operating Profit
Specialty Metal Formed Products $ 29,600 $ 31,350
Towing Systems 8,930 8,860
Specialty Fasteners 8,510 11,120
Specialty Packaging & Sealing Products 9,710 10,760
Specialty Industrial Products 4,140 4,180
Companies Sold or Held for Sale 3,640 4,420
Total $ 64,530 $ 70,690
Three Months Ended March 31
1999 1998
Revenues from External Customers
Revenues from external customers
for reportable segments $448,660 $437,000
TriMas sales prior to acquisition --- (36,240)
Total net sales $448,660 $400,760
Operating Profit
Total operating profit for reportable
segments $ 64,530 $ 70,690
General corporate expenses (5,660) (6,910)
Net gain on disposition of businesses 10,010 ---
TriMas operating profit prior to
acquisition --- (4,950)
Total operating profit $ 68,880 $ 58,830
</TABLE>
5
<PAGE>
MASCOTECH, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(concluded)
I. The following are reconciliations of the numerators
and denominators used in the computations of basic and diluted
earnings per share:
<TABLE>
Three Months Ended March 31
1999 1998
<S> <C> <C>
Weighted average number of shares
outstanding 41,460 44,270
Earnings used for basic earnings per
share computation $ 23,860 $ 32,740
Basic earnings per share $ .58 $ .74
Total shares used for basic earnings
per share computation 41,460 44,270
Dilutive securities:
Stock options and warrants 540 1,210
Convertible debentures 9,840 10,000
Contingently issuable shares 3,820 3,000
Total shares used for diluted
earnings per share computation 55,660 58,480
Earnings used for basic earnings per
share computation $ 23,860 $ 32,740
Add back of debenture interest 2,290 2,380
Earnings used for diluted
earnings per share computation $ 26,150 $ 35,120
Diluted earnings per share $ .47 $ .60
</TABLE>
Diluted earnings per share reflect the potential dilution
that would occur if securities or other contracts to issue
common stock were exercised or converted into common stock.
6
<PAGE>
MASCOTECH, INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
MascoTech sales for the first quarter 1999, aided by the
previously announced acquisition of TriMas Corporation on January
22, 1998, increased 12 percent to $449 million from $401 million
in 1998.
In April 1999, the Company completed the sale of its
aftermarket-related and vacuum metalizing businesses for total
proceeds aggregating $105 million, including $90 million of cash
which will be applied to reduce the Company's indebtedness.
These transactions resulted in a net pre-tax gain of
approximately $25 million ($14 million after-tax), of which $10
million ($2 million after-tax) net was recorded in the first
quarter of 1999 based on the Company's revised estimate of the
fair value of certain of these businesses held for sale at March
31, 1999. The remaining pre-tax gain on disposition of
approximately $15 million ($12 million after-tax) will be
recognized in the second quarter of 1999. The aggregate net pre-
tax gain of $25 million partially recovers the estimated $41
million pre-tax charge to earnings in the second quarter of 1998
related to the disposition of these businesses. This gain was
partially offset by an approximate $3 million pre-tax charge ($2
million after-tax), included in other expense, to reflect the
decline in value of an equity affiliate of the Company. Results
in the first quarter 1998 benefited from a gain (deferred at time
of sale pending receipt of cash) of $7 million pre-tax related to
the disposition of the Company's Technical Services Group in 1997
and gains from the Company's marketable securities portfolio.
The following information related to sales, operating profit
and margins is presented on a pro forma basis, as though
MascoTech and TriMas were combined for the three months ended
March 31, 1999 and 1998 and excluding the unusual pre-tax income
mentioned above.
Sales in the first quarter would have increased
approximately three percent to $449 million in 1999
from $437 million in 1998; operating profit after
general corporate expense would have been $59 million
in 1999 as compared with $64 million in 1998.
Sales for Specialty Metal Formed products for the
first quarter 1999 approximated 1998 levels. The
Company's European forging operations and connecting
rod business had 13 percent sales growth. This sales
growth was offset by significant declines in
the Company's tubular operations reflecting the phase
out of certain programs and decreased sales of constant
velocity joints principally as a result of depressed Eastern
Europe market conditions. In addition, inventory balancing at
a major customer decreased first quarter sales. Aided
by acquisitions, sales of Specialty Fasteners increased
five percent in the first quarter of 1999 as compared
with 1998. This segment continues to be negatively
impacted by reduced demand for aerospace and
agricultural fasteners applications. Sales of Towing
System products, aided by new product introductions and
promotional activities, increased 21 percent in the
first quarter of 1999 as compared with 1998. First
quarter 1999 sales for Specialty Packaging and Sealing
Products approximated 1998 levels as increased sales
from recent acquisitions were offset by a 30 percent
decline in sales of compressed gas cylinders principally
as a result of the economic conditions in Asia. In
addition, sales for specialty gaskets and related
products declined principally as a result of reduced
activity in the oil and gas industry. Sales of Specialty
Industrial products were down six percent from 1998
levels in the first quarter.
7
<PAGE>
MASCOTECH, INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)
Operating margins approximated 13.1 percent and
14.5 percent for the quarters ended March 31, 1999 and
1998, respectively. Although first quarter 1999
operating margins were improved from fourth quarter
1998 levels, margins continue to be negatively impacted
by sales declines for certain products including
tubular, constant velocity joint, cylinder, aerospace
and agricultural fastener, aftermarket-related and
certain products impacted by oil and gas prices. In
addition, start up costs related to the launch of new
products and a new manufacturing facility also
negatively impacted operating performance.
The Company's high effective tax rate, as compared with the
statutory rate for the quarter ended March 31, 1999 is the result
of the tax treatment accorded the gain recognized in the first
quarter related to the disposition of certain businesses.
The Board of Directors declared a dividend of $.07 per
common share, payable on May 10, 1999, to shareholders of record
on April 16, 1999. The Company purchased and retired in the
first quarter 1999 approximately 790,000 shares pursuant to an
outstanding Board of Directors authorization.
Although the Company incurred increased debt with the
purchase of TriMas, the Company's interest coverage ratio and
debt to cash flow ratio remain strong. The Company expects that
its ratio of debt to total debt plus equity will improve from the
operating performance of its businesses and the disposition of
certain businesses and financial assets. Additional borrowings
available under the Company's revolving credit agreement and
otherwise, and anticipated internal cash flows, are expected to
provide sufficient liquidity to fund the Company's debt repayment
requirements and foreseeable working capital, capital expansion
program and other investment needs.
Year 2000
The Year 2000 issue is the result of computer programs
having been written using two digits, rather than four, to define
the applicable year. Any of the Company's computers, computer
programs, manufacturing and administration equipment that have
date-sensitive software may recognize a date using "00" as the
year 1900 rather than the year 2000. If any of the Company's
systems or equipment that have date-sensitive software use only
two digits, system failures or miscalculations may result causing
disruptions of operations, including, among other things, a
temporary inability to process transactions or send and receive
electronic data with third parties or engage in similar business
activities.
As a key supplier to the automotive industry, the Company's
major exposure for Year 2000 problems is the effect of shutting
down production at one of its automotive customer's manufacturing
facilities. While lost revenues from such an event are a concern
for the Company, the greater risks are the consequential damages
for which the Company could be liable if it in fact is found
responsible for the shutdown of one of its customer's
manufacturing facilities. Such a finding could have a material
adverse impact on the Company's results of operations.
The most likely way in which the Company would shut down
production at an automotive customer's facility is by being
unable to supply parts to that customer. The parts supplied by
the Company, in most instances, are integral components of the
end products produced by customers, and the inability to provide
parts may render the customer unable to manufacture and sell its
products. Disruptions in the Company's computer systems and
applications could prevent the Company from being able to
manufacture and ship its parts. Examples are failures in the
Company's manufacturing application software, computer chips
embedded in manufacturing equipment and lack of supply of
materials from its suppliers. The Company's parts do not contain
computer devices that require remediation to meet Year 2000
requirements. A review of the Company's status with respect to
remediating its computer systems for Year 2000 compliance is
presented below.
8
<PAGE>
MASCOTECH, INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)
The Company has had in place an internal review team that is
addressing the Year 2000 issues that encompasses operating and
administrative areas of the Company. In addition, the Company
has engaged professional consultants to assist Company personnel
to identify significant Year 2000 issues in a timely manner.
Also, executive management and the Board of Directors regularly
monitors the status of the Company's Year 2000 remediation plans.
The process includes an assessment of issues and development of
remediation plans, where necessary, as they relate to internally
used software, computer hardware and the use of computer
applications in the Company's manufacturing processes.
For its information technology, the Company currently
utilizes a mid-range, non-mainframe based computing environment
which is complemented by a series of local-area networks ("LANs")
that are connected via a wide-area network ("WAN").
Substantially all operating systems related to the mid-range
systems, LANs and WAN have been updated to comply with Year 2000
requirements. In addition, upgraded and modified versions of the
Company's financial, manufacturing, human resource, and other
packaged software applications which are Year 2000-ready are in
the process of being integrated into the Company's overall
system. The Company presently expects that this integration will
be substantially completed in the next several months.
The Company utilizes non-mainframe computers and software in
its various production processes throughout the world. In
several locations, the Company has retained outside consultants
to assist in identifying potential Year 2000 issues in those
processes, and evaluating the readiness of the computer systems
used in those processes. General findings to-date have
identified minimal changes that need to be made to these systems.
Problems generally relate to old personal computers or memory
chips which are being replaced.
Although there can be no assurance that the Company will
identify and correct every Year 2000 issue found in the computer
applications used in its production processes, the Company
believes that it has in place a comprehensive program to identify
and correct any such issues, and has substantially completed the
remediation of its production systems in early 1999. At the
present time, the Company does not believe that it requires a
contingency plan with respect to its information technology and
production processes, and has therefore not developed one.
The Company is also reviewing its building and utility
systems (heat, light, phones, etc.) for Year 2000 impact. Many
of these systems are Year 2000-ready. While the Company is
working diligently with all of its utility suppliers and has no
reason to expect that they will not meet their required Year 2000
compliance targets, there can be no assurance that these
suppliers will in fact meet the Company's requirements. The
failure of any such supplier to fully remediate its systems for
Year 2000 compliance could cause a disruption of one or more of
the Company's plants, which could impact the Company's ability to
meet its obligations to supply products to its customers.
The Company has also commenced a program to determine the
Year 2000 compliance efforts of its equipment and material
suppliers. The Company has sent comprehensive questionnaires to
all of its significant suppliers regarding their Year 2000
compliance and is attempting to identify any problem areas with
respect to them. The Company has been working with its key
suppliers including its steel suppliers to ensure that it will
receive key components without disruption. This program will be
ongoing and the Company's efforts with respect to specific issues
identified will depend in part upon its assessment of the risk
that any such issues may have a material adverse impact on its
operations.
9
<PAGE>
MASCOTECH, INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(concluded)
Unfortunately, the Company cannot control the conduct of its
suppliers, and therefore cannot guarantee that Year 2000 problems
originating with a supplier will not occur. The Company has not
yet developed contingency plans in the event of a Year 2000
failure caused by a supplier or third party, but would intend to
do so if a specific problem is identified through the programs
described above. In some cases, especially with respect to its
utility vendors, alternative suppliers may not be available.
As a key supplier in the auto industry, the Company takes an
active role in many industry-sponsored organizations, including
the Automotive Industry Action Group ("AIAG"). The AIAG has been
proactive in working with OEMs and suppliers to ensure that the
industry as a whole addresses the Year 2000 problem. Tools to
assist in achieving compliance include standardized
questionnaires, regular meetings of members, follow-up by AIAG
personnel regarding answers to questionnaires, etc. The Company
continues to work with such industry groups to ensure compliance.
The information presented above sets forth the key steps the
Company is taking to address the Year 2000 issue. The cost of
Year 2000 compliance for the Company is expected to approximate
$11 - $15 million, including: replacement costs of $6-$8 million
which are normal and recurring; upgrades of $2-$3 million which
are normal and recurring; repair/programming costs of $2-$3
million and other costs of $1 million, will not be material to
the Company's consolidated results of operations and financial
position. The majority of the replacement and upgrade costs
would have been incurred by the Company over time as part of its
regular information system replacement process.
Forward-Looking Statements
Statements in this quarterly report on Form 10-Q, which are
not historical facts are forward looking statements that involve
certain risks and uncertainty, including, but not limited to,
risks associated with the uncertainty of future financial
results, conditions within the markets in which the Company
competes, labor relations of the Company and certain of its
customers and other uncertainties detailed in the Company's
filings with the Securities and Exchange Commission.
10
<PAGE>
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 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:
None.
11
<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: May 14, 1999 By: /s/Timothy Wadhams
Timothy Wadhams
Executive Vice President
Finance and Administration
(Principal financial officer
and authorized signatory)
12
<PAGE>
MASCOTECH, INC.
EXHIBIT INDEX
Exhibit Sequential
Page No.
Exhibit 12 Computation of Ratio of Earnings to Combined
Fixed Charges and Preferred Stock
Dividends 14
Exhibit 27 Financial Data Schedule 15
Exhibit 12
MASCOTECH, INC.
Computation of Ratio of Earnings to Combined Fixed Charges and
Preferred Stock Dividends
(Dollars in thousands)
<TABLE>
<CAPTION>
3 Months
Ended
March 31, For The Years Ended December 31
1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Earnings (Loss) Before Income
Taxes and Fixed Charges:
Income (loss) from continuing
operations before income
taxes (credit),
extraordinary item and
cumulative effect of
accounting change, net..... $ 46,740 $144,520 $190,290 $ 77,220 $100,280 $(264,490)
Deduct equity in
undistributed earnings
of less-than-fifty-
percent owned companies.... (1,680) (8,530) (46,030) (31,650) (29,590) (23,350)
Add interest on
indebtedness, net.......... 20,260 81,280 36,650 30,350 51,500 51,290
Add amortization of debt
expense.................... 720 3,250 900 1,490 1,670 3,450
Estimated interest factor
for rentals................ 840 3,620 2,100 6,350 7,070 6,220
Earnings (loss) before income
taxes and fixed charges.... $ 66,880 $224,140 $183,910 $ 83,760 $130,930 $(226,880)
Fixed Charges:
Interest on indebtedness,
net........................ $ 20,250 $ 81,740 $ 36,770 $ 30,590 $ 51,690 $ 51,540
Amortization of debt
expense.................... 720 3,250 900 1,490 1,670 3,450
Estimated interest factor
for rentals................ 840 3,620 2,100 6,350 7,070 6,220
Total fixed charges...... 21,810 88,610 39,770 38,430 60,430 61,210
Preferred stock dividend
requirement (a)............ --- --- 10,300 21,570 21,970 14,630
Combined fixed charges and
preferred stock dividends.. $ 21,810 $ 88,610 $ 50,070 $ 60,000 $ 82,400 $ 75,840
Ratio of earnings to
fixed charges................ 3.1 2.5 4.6 2.2 2.2 -- (b)
Ratio of earnings to combined
fixed charges and preferred
stock dividends.............. 3.1 2.5 3.7 1.4 1.6 -- (c)
(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) 1994 results of operations are inadequate to cover fixed charges by $288,090.
(c) 1994 results of operations are inadequate to cover combined fixed charges and preferred stock dividends by $302,720.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MARCH 31,
1999 MASCOTECH, INC. 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 20,040
<SECURITIES> 0
<RECEIVABLES> 273,990
<ALLOWANCES> 0
<INVENTORY> 195,900
<CURRENT-ASSETS> 536,880
<PP&E> 987,690
<DEPRECIATION> 318,000
<TOTAL-ASSETS> 2,126,790
<CURRENT-LIABILITIES> 275,430
<BONDS> 1,404,360
0
0
<COMMON> 45,030
<OTHER-SE> 201,860
<TOTAL-LIABILITY-AND-EQUITY> 2,126,790
<SALES> 448,660
<TOTAL-REVENUES> 448,660
<CGS> 332,640
<TOTAL-COSTS> 332,640
<OTHER-EXPENSES> 10,010
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 20,220
<INCOME-PRETAX> 46,740
<INCOME-TAX> 22,880
<INCOME-CONTINUING> 23,860
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 23,860
<EPS-PRIMARY> .58
<EPS-DILUTED> .47
</TABLE>
