===========================================================================
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Amendment No. 1 to
Form 10-Q
(Form 10-Q/A)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended MARCH 31, 1996
______________
Commission File Number 0-1339
______
OREGON METALLURGICAL CORPORATION
(Exact name of registrant as specified in its charter)
Oregon 93-0448167
_______________________________ ________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
530 34th Avenue S.W.
Albany, Oregon 97321
__________________________________ _____
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (541) 967-9000
______________
NONE
______________________________________________________
(Former name or address, if changed since last report)
===========================================================================
<PAGE>
Pursuant to Rule 12b-15, promulgated under the Securities Exchange Act of
1934, as amended ("Exchange Act"), Oregon Metallurgical Corporation hereby
amends each of the following Items of its Quarterly Report on Form 10-Q for the
period ended March 31, 1996, so that, as amended, such Items read as set forth
herein:
Part I Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Exhibit 27.1 Restated Financial Data Schedule.
As used in this Form 10-Q/A, the terms "OREMET" or "Company" mean Oregon
Metallurgical Corporation and its consolidated subsidiaries, taken as a whole,
unless the context indicates otherwise.
OREMET<REGISTERED TRADEMARK> is a registered trademark of the Company.
- -1-
<PAGE>
PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
OREGON METALLURGICAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
Unaudited
<TABLE>
<CAPTION>
Three Months
________________
For the period ended March 31, 1996 1995
____ ____
<S> <C> <C>
Net sales $ 51,309 $ 30,838
Cost of sales 40,948 25,506
________ ________
GROSS PROFIT 10,361 5,332
Research, technical and product
development expenses 617 365
Selling, general and administrative
expenses 4,290 3,400
________ ________
INCOME FROM OPERATIONS 5,454 1,567
Interest expense 634 575
Minority interests 225 106
________ ________
INCOME BEFORE INCOME TAXES 4,595 886
Provision for income taxes 1,250 351
________ ________
NET INCOME $ 3,345 $ 535
======== ========
Net income per share $ 0.30 $ 0.05
======== ========
Weighted average common shares
and equivalents outstanding 11,327 11,055
======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
- -2-
<PAGE>
OREGON METALLURGICAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands except par value)
<TABLE>
<CAPTION>
Unaudited
March 31, December 31,
1996 1995
_________ ____________
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 1,154 $ 572
Accounts receivable, net 33,038 25,894
Inventories 71,163 66,010
Prepayments 1,035 689
Deferred tax assets 4,201 3,242
__________ __________
Total current assets 110,591 96,407
Property, plant and equipment, net 34,973 35,138
Other assets, net 1,473 1,532
__________ __________
TOTAL ASSETS $ 147,037 $ 133,077
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 1,406 $ 616
Book overdraft 3,657 2,014
Accounts payable 17,603 16,973
Accrued payroll and employee benefits 6,924 6,659
Accrued loss on long-term agreements 2,781 2,781
Other accrued expenses 5,793 3,595
__________ __________
Total current liabilities 38,164 32,638
Long-term debt, less current portion 28,644 26,746
Deferred tax liabilities 4,044 3,149
Deferred compensation payable 508 678
Accrued postretirement benefit 1,608 1,563
Accrued loss on long-term agreements,
less current portion 1,353 1,636
Minority interests 1,019 780
__________ __________
Total liabilities 75,340 67,190
__________ __________
Shareholders' equity:
Common stock, $1.00 par value;
shares authorized, 25,000; shares issued:
1996 11,214, 1995, 11,018 11,214 11,018
Additional paid-in capital 40,653 38,340
Retained earnings 19,890 16,545
Cumulative foreign currency
translation adjustment (60) (16)
__________ __________
Total shareholders' equity 71,697 65,887
__________ __________
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 147,037 $ 133,077
========== ==========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
- -3-
<PAGE>
OREGON METALLURGICAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Unaudited
<TABLE>
<CAPTION>
Three Months
____________________
For the period ended March 31, 1996 1995
____ ____
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 3,345 $ 535
Adjustments to reconcile net income to
cash used in operating activities:
Depreciation and amortization 1,381 1,126
Deferred income tax expense 545 177
Employee benefits paid or payable in
common stock 1,307 473
Provision for loss on long-term agreements (283) ----
Minority interests 225 106
Decrease (increase) in:
Accounts receivable (7,144) (2,340)
Inventories (5,153) (7,140)
Prepayments (346) 491
Increase (decrease) in:
Accounts payable 630 1,897
Accrued payroll and employee benefits 760 513
Other accrued expenses 2,198 283
Other (24) 45
__________ ________
Net cash used in operating activities (2,559) (3,834)
__________ ________
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to properties, plant and equipment (1,142) (219)
Other (20) (383)
_________ ________
Net cash used in investing activities (1,162) (602)
__________ ________
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving credit agreement 46,660 23,537
Payments on revolving credit agreement (44,118) (20,222)
Proceeds from long-term debt 177 ----
Payments on long-term debt (31) (3)
Book overdraft 1,643 ----
Other ---- 20
__________ ________
Net cash provided by financing activities 4,331 3,332
__________ ________
Effect of exchange rates on cash and
cash equivalents (28) (7)
__________ ________
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 582 (1,111)
CASH AND CASH EQUIVALENTS:
Beginning of period 572 1,636
__________ ________
End of period $ 1,154 $ 525
========== ========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
- -4-
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS)
NOTE 1. BASIS OF PRESENTATION
The interim consolidated financial statements have been prepared by Oregon
Metallurgical Corporation ("OREMET") and its subsidiaries (the "Company")
without audit. In the opinion of management, the accompanying unaudited
consolidated financial statements contain all adjustments, consisting only of
normal recurring adjustments, necessary to present fairly the financial
position of the Company as of March 31, 1996, and December 31, 1995, the
results of operations; and the cash flows of the Company for the three months
ended March 31, 1996 and 1995. The interim consolidated financial statements
should be read in conjunction with the audited consolidated financial
statements and notes thereto appearing in the Company's Annual Report to
Shareholders.
The results for the first quarter of 1996 are not necessarily indicative of the
operating results of a full year or future years.
NOTE 2. ORGANIZATION AND OPERATIONS
The Company is one of two U.S. integrated producers and distributors of
titanium sponge, ingot, mill products and castings for use in the aerospace,
industrial, golf and military markets. As of March 31, 1996, the Company is
32%-owned by the Oregon Metallurgical Corporation Employee Stock Ownership Plan
(the "ESOP").
NOTE 3. BASIS OF CONSOLIDATION
Titanium Industries, Inc. ("TI") an eighty percent (80%) owned subsidiary
operates full-line titanium metal service centers in the United States,
Canada, United Kingdom and Germany and produces small diameter bar, weld
wire and fine wire. The consolidated financial statements of the Company
include the accounts of TI and the Company's wholly-owned subsidiary, OREMET
France S.a.r.l. TI's accounts reflect the activities of its wholly-owned
subsidiaries, Titanium International, LTD., Titanium Wire Corporation and
Titanium International GmbH. All material intercompany accounts and
transactions have been eliminated in consolidation.
NOTE 4. INVENTORIES
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
_________ ____________
<S> <C> <C>
Finished goods $ 20,243 $ 18,141
Work-in-progress 21,222 19,837
Raw materials 29,698 28,032
________ ________
$ 71,163 $ 66,010
======== ========
</TABLE>
- -5-
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS)
NOTE 5. PROPERTY, PLANT AND EQUIPMENT
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
_________ ____________
<S> <C> <C>
Land $ 1,189 $ 1,189
Buildings and improvements 11,431 11,455
Machinery and equipment 42,453 42,248
Integrated sponge facility 45,641 45,641
Construction in progress 1,737 846
________ ________
102,451 101,379
Less accumulated depreciation (67,478) (66,241)
________ ________
$ 34,973 $ 35,138
======== ========
</TABLE>
- -6-
<PAGE>
PART 1: FINANCIAL INFORMATION
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the Company's
1995 Annual Report on Form 10-K, as amended and the Consolidated Financial
Statements and Notes thereto of the Company. The following information
contains forward-looking statements which involve certain risks and
uncertainties. Actual results and events may differ significantly from those
discussed in the forward-looking statements.
OVERVIEW
The Company reported net income of $3.3 million, or $0.30 per share, for
the first quarter of 1996. This level of earnings represents a major
breakthrough in the Company's efforts to return to profitability. During the
fourth quarter of 1995, the Company reported a net loss of $3.0 million, or
$0.26 per share. Increased shipments and pricing across all of the Company's
product lines were the primary factors in the Company's improved performance.
The Company's financial performance was consistent with the results of other
major U.S. titanium producers.
The Company's twelve-month order backlog has increased from $48 million as
of March 31, 1995 to $134 million as of March 31, 1996. OREMET's backlog is
based on firm purchase orders scheduled for delivery during the subsequent
twelve-month period. Beginning in the second half of 1995 and continuing to
the present, the Company has experienced a significant increase in requests for
quotations as well as increased orders and prices on accepted orders. The
increase in demand is primarily a result of the recovery in the commercial
aerospace market and the growth of the golf clubhead market. Because of the
strong demand, the Company has been increasingly selective in the new orders
that it accepts. In addition, the Company has delayed opening its first
quarter 1997 order book in order to better assess future raw material costs.
The twelve-month sales backlog reflects recent customer order placements, but
may not be an accurate indicator of annual or quarterly sales volume.
RESULTS OF OPERATIONS
The following table sets forth certain operating items of the Company's
consolidated results of operations as a percentage of net sales for each of the
years in the five-year period ended December 31, 1995, and for the quarters
ended March 31, 1995 and March 31, 1996.
<TABLE>
<CAPTION>
Year Ended Three Months Ended
December 31, March 31,
________________________________________ _____________
(unaudited)
1991 1992 1993 1994 1995 1995 1996
____ ____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C> <C>
Net sales 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Gross profit (loss)(1) (5.9) (1.0) 4.9 9.3 10.8 17.3 20.2
Income (loss) from operations(1) (15.7) (10.4) (11.2) (3.5) (0.2) 5.1 10.6
Net income (8.6)% (7.4)% (7.4)% (2.8)% (1.6)% 1.7 % 6.5 %
______________
<FN>
<F1> A provision for a loss on LTAs of $4.4 million was recorded in the
fourth quarter of 1995. Gross profit and income from operations,
exclusive of this provision, as a percentage of net sales would have
been 13.8% and 2.8% in 1995, respectively.
</FN>
</TABLE>
- -7-
<PAGE>
Quarterly Results of Operations
The following table presents the Company's unaudited consolidated
quarterly financial data for fiscal years 1994 and 1995, and the first
quarter of 1996. Although the Company's business is not seasonal, growth
rates of sales have varied from quarter to quarter as a result of the
purchase of TI in September 1994, the timing of new products, industry
cyclicality and general U.S. and international economic conditions.
<TABLE>
<CAPTION>
1996
1994 Quarters 1995 Quarters Quarter
First Second Third Fourth First Second(1) Third Fourth(1) First
_____ ______ _____ ______ _____ _________ _____ _________ _____
(in millions)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net sales $ 13.3 $ 14.5 $ 17.0 $ 26.4 $ 30.8 $ 35.2 $ 41.2 $ 39.7 $ 51.3
Gross profit 0.1 0.6 1.7 4.2 5.3 5.3 4.1 1.2 10.4
Income (loss) from operations (1.7) (0.9) (0.6) 0.7 1.6 1.4 0.1 (3.4) 5.5
Net income (loss) $ (1.1) $ (0.6) $ (0.4) $ 0.1 $ 0.5 $ 0.5 $ (0.4) $ (3.0) $ 3.3
___________________
<FN>
<F1> During the second quarter of 1995, the Company reported a pre-tax charge
to income of $1.3 million to reflect the impact of projected conversion
costs on long-term agreements which were in excess of selling price.
During the fourth quarter of 1995, the Company reported a pre-tax charge
to income of $4.4 million to reflect the impact of increased raw material
costs on long-term agreements.
</FN>
</TABLE>
Comparison of First Quarter 1996 to First Quarter 1995
Net Sales. Net sales increased $20.5 million, or 66% to $51.3 million in
the first quarter of 1996, compared to $30.8 million in 1995. The increase in
sales was primarily driven by increased demand and higher prices for both the
Company's manufactured and service center products. Of the $20.5 million net
sales increase, $10.9 million was the result of volume increases and $9.6 from
higher average selling prices.
Titanium Sponge. During the first quarter of 1996, the Company's
integrated sponge facility operated at near capacity, primarily supplying the
Company's internal demand for titanium sponge as well as sales to RMI under a
long-term titanium sponge conversion agreement. Sales of titanium sponge and
sponge conversion services increased 48% to $3.2 million from $2.2 million for
the first quarter of 1996 compared to the first quarter of 1995. Sponge
shipments increased 42% and the average sponge price per pound increased 4%.
The increase in the average price per pound can be attributed to sales of high
purity sponge, which the Company started commercially producing in limited
quantities in 1995. The Company projects that it will continue to operate its
sponge facility at near capacity with substantially all production being
utilized for internal consumption and for supply to RMI (approximately 39% of
capacity in 1996). The Company is presently supplementing its sponge
production with purchases from other producers.
Ingot. Sales of ingot increased 118% to $9.1 million for the first
quarter of 1996 compared to $4.2 million for the first quarter of 1995. Ingot
shipments increased 79% and the average ingot price per pound increased 22%.
The Company operated its melt facilities at near capacity during the first
quarter of 1996 and expects to continue to do so for the remainder of 1996.
The Company produces ingot for both internal use in its mill products division
and for sale primarily to aerospace customers.
Mill Products. The Company produces or contracts for outside production a
variety of mill products including: billet, bar, plate, sheet and engineered
parts. Mill product sales increased 107% to $18.6 million for the first
quarter of 1996 compared to $9.0 million for the first quarter of 1995.
Shipments of mill products increased 46% and the average price per pound
increased 42%. Sales to producers of aerospace components and golf clubheads
are responsible for a substantial portion of the growth in mill product sales.
Castings. Sales of castings increased 40% to $2.2 million for the first
quarter of 1996 compared to $1.5 million for the first quarter of 1995. The
Company is operating at a higher production rate in 1996 and is expanding its
casting facilities.
- -8-
<PAGE>
Distribution. The Company's service centers market a wide variety of mill
products including engineered parts that are manufactured by various producers.
During the first quarter of 1996, sales of service center products increased
27% to $16.7 million compared to $13.1 million for the first quarter of 1995.
The increase in sales was due to increased shipments and favorable pricing and
product mix.
Cost of Sales and Gross Profit. Cost of sales for the first quarter of
1996 increased 61% to $40.9 million, compared to $25.5 million in the first
quarter of 1995. The primary reason for the increase in cost of sales was
increased shipments. The Company's gross profit margin increased to 20.2% for
the first quarter of 1996 from 17.3% for the first quarter of 1995, as a result
of higher prices and improved production efficiencies.
Research, Technical and Product Development Expenses. Research, technical
and product development expenses ("RT&D") increased by $0.3 million for the
first quarter of 1996 to $0.6 million from the comparable quarter of 1995. The
increase is primarily a result of additional employees hired to support the
increase in operating activity. The main focus of RT&D is to develop enhanced
production procedures, provide customers with required technical support and
develop new products and markets. RT&D works jointly on projects with
customers, research agencies and universities.
Selling, General and Administrative Expenses. Selling, general and
administrative expenses ("SG&A") increased $0.9 million, or 26%, for the first
quarter of 1996 to $4.3 million from $3.4 million in the comparable quarter of
1995. As a percentage of sales, SG&A decreased to 8.4% in the first quarter of
1996 from 11.0% in the first quarter of 1995.
Interest Expense. Interest expense increased $0.1 million to $0.6 million
in the first quarter of 1996 compared to the first quarter of 1995, resulting
from an increase in borrowing needed to fund expanded operating levels.
Provision for Income Taxes. The Company reported a provision for income
taxes of $1.3 million, or an effective tax rate of 26% (on income before income
taxes and minority interests) for the first quarter of 1996 compared to $0.4
million, or an effective tax rate of 35% for the comparable period in 1995.
The difference between the federal and state combined statutory tax rate of 39%
and the effective tax rate of 26% for the first quarter of 1996 is primarily
due to a change in the Company's deferred tax asset valuation allowance,
reflecting the belief that it is more likely than not that the deferred tax
assets will be realized by the Company.
Net Income. The Company reported net income of $3.3 million, $0.30 per
share, for the first quarter of 1996 compared to a net income of $0.5 million,
$0.05 per share, for the comparable period in 1995.
LIQUIDITY AND CAPITAL RESOURCES
Overview
Net cash used in operating activities totaled $2.6 million for the first
quarter of 1996, compared to $3.8 million for the comparable period of 1995.
Increases in sales and the sales backlog accounted for the increased levels of
accounts receivable and inventory, which represented the primary uses of cash
for the quarter. Working capital increases required to support the sharp
increase in operating levels were responsible for the most significant portion
of the cash used by the Company's operating activities in 1995. The increase
in the amount of cash flow used in operating activities is a trend which began
in the second quarter of 1994, consistent with the Company's experience of
increasing sales, sales order backlog and production.
During the first quarter of 1996, the Company incurred $1.3 million in
expenses relating to its Stock Compensation Plans and Savings Plan.
Liabilities arising under these plans are satisfied by issuing shares of the
Company's common stock. See note 10 to the Company's Consolidated Financial
Statements filed with the 1995 Annual Report on Form 10-K.
- -9-
<PAGE>
Net cash used in investing activities totaled $1.2 million for the first
quarter of 1996 compared to $0.6 million for the first quarter of 1995. The
Company had additions to property, plant and equipment of $1.1 million in the
first quarter of 1996.
Net cash provided by financing activities totaled $4.3 million for the
first quarter of 1996, compared to $3.3 million for the comparable period of
1995. For the first quarter of 1996, $4.2 million was provided from net
borrowings on the Company's credit agreements and book overdraft.
Review of Significant Working Capital Accounts
Inventories. Inventories increased by $5.2 million, or 8% to $71.2
million at March 31, 1996, compared to $66.0 million at December 31, 1995. In
addition to an increase in finished goods inventory, increases in raw materials
and work-in-process have been made in support of higher production levels. In
response to a growing sales backlog, the Company is continuing to raise its
production levels. The Company is also experiencing higher raw material and
conversion costs, which have increased the cost of the Company's inventory.
Accounts Receivable. Accounts receivable increased by $7.1 million, or
28% to $33.0 million at March 31, 1996, compared to $25.9 million at December
31, 1995. The increase in accounts receivable is consistent with the Company's
increase in sales volume.
Book Overdraft. The Company had a book overdraft at March 31, 1996 of
$3.7 million. The book overdraft represents Company checks which have been
disbursed and are in transit as of the end of the reporting period. When the
checks clear the Company's bank, they are funded by draws on the Company's U.S.
credit facility to the extent they are not funded by deposits.
Accounts Payable. Accounts payable at March 31, 1996 were $17.6 million,
which are comparable to the December 31, 1995 balance of $17.0 million.
Accrued Payroll and Employee Benefits. Accrued payroll and employee
benefits of $6.9 million at March 31, 1996 was essentially unchanged from the
balance at December 31, 1995.
Credit Agreement
The Company may borrow up to $35 million under the terms of a revolving
credit agreement with BankAmerica Business Credit, Inc. ("BABC"). The credit
agreement expires in September 1997. The balance outstanding under the credit
agreement as of March 31, 1996 was $23.3 million. As of March 31, 1996,
interest charged under the credit agreement is at BABC's reference rate plus
1.5% or a borrowing base option based on LIBOR plus 2.5%.
As of December 31, 1995, the Company was not in compliance with certain of
its financial covenants contained in its BABC credit agreement. The Company
obtained a written waiver from BABC on these matters. The U.S. credit
agreement was amended as of March 14, 1996 and May 1, 1996 to, among other
things, modify the debt to equity ratio covenant and certain other restrictive
covenants and to increase the line from $25 to $35 million. The amendments to
the covenants were needed for the Company to remain in compliance with certain
financial covenants in the U.S. credit agreement in light of increased working
capital growth.
Titanium International Limited, a subsidiary of TI, has a short-term
credit facility with Midland Bank plc, in the U.K., permitting borrowings of
approximately L2.3 million (approximately $3.6 million at current exchange
rates). The U.K. credit agreement is subject to renewal on December 31, 1996.
The balance outstanding under the U.K. credit agreement as of March 31, 1996
was $1.0 million (at current exchange rates).
- -10-
<PAGE>
Capital Expenditures
The Company has no material open commitments which obligate it to make
future capital expenditures. The Company's 1996 capital plan anticipates that
expenditures will approximate $9.0 million. Capital expenditures required to
maintain compliance with applicable environmental regulations are included in
the Company's capital expenditure plan to the extent that they can be
determined. The Company's capital expenditures will be funded by a combination
of internally generated cash and external financing.
The Company's credit facility with BABC provides that capital expenditures
may not exceed $7.0 million for any fiscal year. A change in the covenant to
reflect the higher budgeted capital spending amount is currently being
discussed with BABC.
Income Taxes
The Company anticipates that in 1996 it will fully utilize its federal net
operating loss carryforwards of $3.5 million and will pay federal taxes on any
remaining balance of its federal taxable income. The Company has a State of
Oregon net operating loss carryforward of $30.0 million which will limit the
amount of state taxes paid in 1996. In addition, the Company pays minimal
franchise and income taxes in various states and foreign jurisdictions.
Adequacy of Liquidity and Capital Resources
The Company's access to borrowing facilities, internally generated cash
and capital markets are expected to provide the resources necessary to support
increased operating needs and to finance continued growth, capital expenditures
and repayment of long-term debt obligations.
Non-U.S. Operations and Monetary Assets
Approximately 8% of the Company's net sales for the first quarter of 1996
were derived from its service centers in the U.K. and France. Changes in the
value of foreign currencies relative to the U.S. dollar cause fluctuations in
the U.S. dollar financial position and operating results. The impact of
foreign currency fluctuations on the Company was not significant during the
first quarter of 1996.
Impact of Inflation
Inflation can be expected to have an effect on many of the Company's
operating costs and expenses. Due to worldwide competition in the titanium
industry, the Company may not be able to pass through such increased costs to
its customers.
- -11-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this amendment to the report to be signed on its
behalf by the undersigned thereunto duly authorized.
OREGON METALLURGICAL CORPORATION
Registrant
Date: August 14, 1996 /s/ Dennis P. Kelly
________________________________________
Dennis P. Kelly
Vice President, Finance and
Chief Financial Officer*
* Signing on behalf of the Registrant and as
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Company's report on Form 10-Q for the period ended March 31, 1996, 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-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 1,154
<SECURITIES> 0
<RECEIVABLES> 34,220
<ALLOWANCES> (1,182)
<INVENTORY> 71,163
<CURRENT-ASSETS> 110,591
<PP&E> 102,451
<DEPRECIATION> 67,478
<TOTAL-ASSETS> 147,037
<CURRENT-LIABILITIES> 37,864
<BONDS> 28,644
0
0
<COMMON> 11,214
<OTHER-SE> 60,483
<TOTAL-LIABILITY-AND-EQUITY> 147,037
<SALES> 51,309
<TOTAL-REVENUES> 51,309
<CGS> 40,948
<TOTAL-COSTS> 40,948
<OTHER-EXPENSES> 5,132
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 634
<INCOME-PRETAX> 4,595
<INCOME-TAX> 1,250
<INCOME-CONTINUING> 3,345
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,345
<EPS-PRIMARY> .30
<EPS-DILUTED> .30
</TABLE>
