- --------------------------------------------------------
- --------------------------------------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File
No. 1-9820
BIRMINGHAM STEEL CORPORATION
DELAWARE 13-3213634
(State of Incorporation) (I.R.S. Employer
Identification No.)
1000 Urban Center Parkway, Suite 300
Birmingham, Alabama 35242
(205) 970-1200
Indicate by check mark whether the registrant (1)
has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the
past 90 days Yes X No .
----- -----
Indicate the number of shares outstanding of each
of the issuer's classes of common stock, as of the
latest practicable date: 28,537,613 Shares of Common
Stock, Par Value $.01 Outstanding at November 14, 1995
- --------------------------------------------------------
<PAGE>
BIRMINGHAM STEEL CORPORATION
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
ASSETS September 30, 1995 June 30, 1995
(Unaudited) (Audited)
------------------ -----------------
Current Assets:
Cash and cash equivalents $ 2,852 $ 4,311
Accounts receivable, net of
allowance for doubtful accounts
of $1,438 at September 30, 1995;
$1,368 at June 30, 1995 113,096 110,883
Inventories 198,107 173,053
Prepaid expenses 1,821 1,154
Other 6,639 13,595
------- -------
Total current assets 322,515 302,996
Property, plant and equipment
(including property and equip-
ment, net, held for disposition
of $22,025 and $27,655 at
September 30, 1995 and June 30,
1995, respectively):
Land and buildings 119,012 117,835
Machinery and equipment 361,098 350,275
Construction in progress 90,211 53,932
------- -------
570,321 522,042
Less accumulated depreciation (117,459) (110,385)
------- -------
Net property, plant and equipment 452,862 411,657
Excess of cost over net
assets acquired 42,173 32,338
Other assets 11,939 9,813
------- -------
Total assets $ 829,489 $ 756,804
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 59,083 $ 8,020
Accounts payable 57,639 63,082
Accrued operating expenses 3,700 4,137
Accrued payroll expenses 5,692 8,791
Income taxes payable 1,233 583
Other accrued liabilities 18,534 11,482
------- -------
Total current liabilities 145,881 96,095
Deferred income taxes 54,983 53,265
Deferred compensation 5,221 5,225
Long-term debt less current portion 157,500 142,500
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $.01;
authorized 5,000,000 shares - -
Common stock, par value $.01;
authorized 75,000,000 shares;
29,605,925 and 29,594,286 shares
issued at September 30, 1995 and
June 30, 1995, respectively 296 296
Additional paid-in capital 330,656 330,490
Treasury stock, 1,064,786 shares
at September 30, 1995 (21,144) (21,909)
Unearned compensation (2,610) (2,537)
Retained earnings 158,706 153,379
------- -------
Total stockholders' equity 465,904 459,719
------- -------
Total liabilities and stockholders'
equity $ 829,489 $ 756,804
=========== =========
See accompanying notes
- --------------------------------------------------------
- --------------------------------------------------------
BIRMINGHAM STEEL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA; UNAUDITED)
Three months ended September 30,
----------------------------------------
1995 1994
------------------ ----------------
Net Sales $207,252 $220,601
Cost of sales:
Other than depreciation
and amortization 174,105 180,322
Depreciation and
amortization 8,030 7,985
-------- --------
Gross profit 25,117 32,294
Provision for loss on
disposition of property,
plant and equipment - 726
Selling, general and
administrative 10,382 9,169
Interest 2,271 2,356
-------- --------
12,464 20,043
Other income, net 1,363 730
Income before income taxes 13,827 20,773
Provision for income taxes 5,649 8,568
------- --------
Net Income $ 8,178 $ 12,205
======== ========
Weighted average shares
outstanding 28,521 29,404
======== ========
Earnings per share $ 0.29 $ 0.42
Dividends declared per
share $ 0.10 $ 0.10
======== ========
See accompanying notes.
BIRMINGHAM STEEL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
Three months ended
September 30,
-----------------------
1995 1994
(unaudited) (unaudited)
----------- -----------
CASH FLOWS FROM OPERATING
ACTIVITIES
Net Income $ 8,178 $ 12,205
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation and
amortization 8,030 8,039
Provision for doubtful
accounts receivable 92 264
Deferred income taxes 1,641 1,880
Provision for loss on
disposition of
property, plant and
equipment - 726
Other 720 607
Changes in operating assets
and liabilities, net
of effects from business
acquisition:
Accounts receivable (2,305) (2,637)
Inventories (25,054) 3,176
Prepaid expenses (667) (90)
Other current assets 6,956 581
Accounts payable (5,585) 8,282
Income taxes payable 650 -
Other accrued liabilities 3,594 7,862
Deferred compensation (4) 154
--------- ---------
Net cash provided by
operating activities (3,754) 41,049
CASH FLOWS FROM INVESTING
ACTIVITIES:
Additions to property,
plant and equipment (36,891) (13,027)
Payments for business
acquisitions (11,250) -
Proceeds from disposal
of property, plant
and equipment 16 5
Additions to other
non-current assets (12,765) (1,232)
Reductions in other
non-current assets 81 46
-------- ---------
Net cash used in
investing activities (60,809) (14,208)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Net short-term borrowings
and repayments 51,063 -
Proceeds from issuance of
long-term debt 15,000 -
Proceeds from issuance of
common stock 59 119
Purchase of treasury
stock (167) -
Cash dividends paid (2,851) (2,940)
--------- ---------
Net cash (used in)
provided by
financing
activities 63,104 (2,821)
--------- ---------
Net (decrease) increase
in cash and cash
equivalents (1,459) 24,020
Cash and cash equivalents
at:
Beginning of period 4,311 28,916
--------- ---------
End of period 2,852 52,936
========= =========
Supplemental cash flow
disclosures:
Cash paid during the
period for:
Interest (net of
amounts
capitalized) (445) (124)
Income taxes 162 1,541
See accompanying notes
BIRMINGHAM STEEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1995 AND 1994
1. Significant Accounting Policies
Principles of consolidation
The consolidated financial statements include the
accounts of Birmingham Steel Corporation (the Company)
and its subsidiaries, all of which are wholly owned.
All significant intercompany accounts and transactions
have been eliminated. The Company operates in one
industry segment, production of steel and steel products.
Inventories
Inventories are stated at the lower of cost or market
value. The cost of steel inventories is determined
using the first-in, first-out method.
Earnings per share
Earnings per share are computed using the weighted
average number of outstanding common shares and dilutive
equivalents (if any).
Recent accounting pronouncement
In March 1995, the Financial Accounting Standards
Board issued Statement No. 121 that requires impairment
losses to be recorded on long-lived assets used in
operations, including goodwill, when impairment
indicators are present and the undiscounted cash flows
estimated to be generated by those assets are less than
the assets' carrying amount. Statement No. 121 also
addresses the accounting for long-lived assets that are
expected to be disposed of in future periods. The
Company will adopt Statement No. 121 in the first
quarter of fiscal 1997 and, based on current
circumstances, does not believe the effect of adoption
will be material.
2. Business Acquisitions
On December 31, 1994, the Company purchased Port
Everglades Steel Corporation (PESCO), a steel
distribution company headquartered in Fort Lauderdale,
Florida for $11,400,000 in cash and assumption of
liabilities of $3,100,000 million. The purchase price
has been allocated to the assets and liabilities of
PESCO based upon their estimated fair values. Pro forma
results for prior year would not be materially different
from the amounts reported in the Company's consolidated
income statement if the acquisition had occurred as of
the beginning of the prior year.
In the quarter ending September 30, 1995, the Company
entered into an agreement to purchase the steel
manufacturing equipment and other assets from Western
Steel Limited, a subsidiary of IPSCO Inc. located in
Calgary, Alberta, Canada, and the stock of Richmond
Steel Recycling Limited, a subsidiary of Western Steel
Limited, located in Richmond, British Columbia, Canada.
The first transaction was consummated in the quarter and
the second transaction is expected to be completed in
the second quarter. The purchase price of these
acquisitions is approximately $17,500,000.
3. Business Disposition
On March 12, 1995, the Company sold its mine roof
bolt business unit for $21,500,000, less costs
approximating $1,758,000. In connection with the sale,
the Company entered into a five-year supply agreement to
provide purchaser the majority of its steel
requirements.
4. Inventories
Inventories were valued as summarized in the
following table (in thousands):
September 30 June 30
1995 1995
----------- ---------
At lower of cost (first-in,
first-out) or market:
Raw materials and mill
supplies $ 46,786 $ 45,074
Work-in-progress 72,207 51,516
Finished goods 79,114 76,463
-------- --------
198,107 173,053
======== ========
5. Borrowing Arrangements
Under line of credit arrangements for short-term
borrowings with four banks, the Company may borrow up to
$185,000,000 with interest at market rates mutually
agreed upon by the Company and the banks. One of these
lines of credit supports bankers'acceptance and
commercial paper program. Approximately $125,917,000
was available under these facilities at September 30,
1995.
On September 1, 1995, American Steel & Wire
Corporation (ASW), a wholly-owned subsidiary of the
Company, issued $15,000,000 in Solid Waste Disposal
Revenue Bonds under the authority of the Ohio Water
Development Authority. The bonds have a term of thirty
years at a variable market interest rate. The proceeds
of the bonds will be used to construct a waste water
treatment facility at the Company's new bar mill project
located in Cleveland, Ohio.
On September 19, 1995, the Company completed a
$150,000,000 private placement of senior notes. The
notes are unsecured and primarily consist of maturities
ranging from seven to ten years and a weighted average
interest rate of 7.05 percent. The notes contained a
delayed funding provision which allows the Company to
draw down the proceeds at any time through mid-December
1995. The proceeds of the debt issue will be utilized
primarily to fund the current requirements of the
Company's multi-year capital expenditure program.
6. Commitments
In April, 1995, the Company entered into a ten-year
agreement with Electronic Data Systems Corporation
(EDS), an information management and consulting firm.
Under the agreement, EDS will provide information system
management, systems development and consulting services
to the Company. Future minimum payments from systems
management services are $6,300,000 per year.
7. Contingencies
Environmental
The Company is subject to federal, state and local
environmental laws and regulations concerning, among
other matters, waste water effluents, air emissions and
furnace dust disposal.
The Company has been advised by the Virginia
Department of Waste Management of certain conditions
involving the disposal of hazardous materials at the
Company's Norfolk, Virginia property which existed prior
to the Company's acquisition of the facility. The
Company has also been notified by the department of
Toxic Substances Control of the Environmental Protection
Agency of the State of California of certain
environmental conditions regarding its property in
Emeryville, California. The Company is performing
environmental assessments of these sites and developing
work plans for remediation of the properties for
approval by the applicable regulatory agencies.
As part of its ongoing environmental compliance and
monitoring programs, the Company is voluntarily
developing work plans for environmental conditions
involving certain of its operating facilities and other
properties which are held for sale. Based upon the
Company's study of the known conditions and its prior
experience in investigating and correcting environmental
conditions, the Company estimates that the potential
costs of these site restoration and remediation efforts
may range from $3,050,000 to $4,650,000. Approximately
$1,359,000 of these costs is recorded in accrued
liabilities at September 30, 1995. The remaining costs
principally consist of site restoration and
environmental exit costs to ready the idle facilities
for sale, and have been considered in determining
whether the carrying amounts of the properties exceed
their net realizable values. These expenditures are
expected to be made in the next one to two years, if the
necessary regulatory agency approvals of the Company's
work plans are obtained. Though the Company believes it
has adequately provided for the cost of all known
environmental conditions, the applicable regulatory
agencies could insist upon different and more costly
remediative measures than those the Company believes are
adequate or required by existing law. Otherwise, the
Company believes that it is currently in compliance with
all known material and applicable environmental
regulations.
Legal Proceedings
The Company is involved in litigation relating to
claims arising out of its operations in the normal
course of business. Such claims are generally covered
by various forms of insurance. In the opinion of
management, any uninsured or unindemnified liability
resulting from existing litigation would not have a
material effect on the Company's business, its financial
position, liquidity or results of operations.
8. Disposal of Idle Facilities
In Fiscal 1995, the Company entered into an agreement
to sell its idle facility in Ballard, Washington. In
August, 1995, the Company completed the exchange of the
idle Kent, Washington facility and other property at the
Seattle, Washington steel-making facility with the Port
of Seattle for property owned by the Port which will be
used in the Company's Seattle operations
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
In the first quarter of fiscal 1996, the Company
reported net income of $8,178,000, compared with
$12,205,000 in the first period of fiscal 1995.
Earnings per share for the quarter were $.29, down from
$.42 reported in the prior year period. First quarter
earnings reflected a $1.3 million pretax charge
associated with the start-up of a new electric arc
furnace at the Company's Seattle mill. First quarter
steel shipments were 574,000 tons, compared with 619,000
tons shipped a year ago. Net sales for the first
quarter were $207,252,000, compared with $220,601,000 in
the first quarter last year.
Net Sales
Steel shipments in the first quarter declined
approximately 7 percent from the prior year level,
primarily reflecting reduced sales of lower margin semi-
finished steel billets. Finished goods shipments during
the same period were down approximately 2 percent. Net
sales for the first quarter declined approximately 6
percent, reflecting the reduced shipment levels
mentioned above and the absence of sales from the
Company's former mine roof support business (sold in
March 1995).
The average steel selling price for the Company's
Rebar/Merchant Business was $317 per ton in the first
quarter, a rise of $22 per ton over the prior year first
quarter, but flat with the immediately preceding
quarter. Rebar/merchant pricing experienced downward
pressure late in the first quarter, as the Company
announced a $20 per ton price decrease for merchant
products effective in September. Selling price
pressures continue to be evident into the second
quarter, with rebar pricing off as much as $25 per ton
in certain regions. With the Company heading into the
seasonally weaker winter months, the near term outlook
for steel pricing indicates further weakening.
First quarter shipment of high quality rod and wire
products declined approximately 7 percent to 123,000
tons, compared with 132,000 tons in the prior year
period. The average selling price for high quality rod
products increased approximately 3 percent in the first
quarter to $483 per ton, compared with $470 per ton in
the prior year. The near term pricing outlook for the
Company's Rod and Wire Business is stable to nominally
down.
Cost of Sales
As a percentage of net sales, cost of sales (other than
depreciation and amortization) increased to 84.0 percent
compared with 81.7 percent in the first quarter last
year. This increase resulted primarily from a rise in
the cost of FIFO inventories charged to cost of sales
during the first quarter and expenses associated with
the start-up of a new melt shop furnace at the Company's
Seattle mill.
During the fourth quarter of fiscal 1995, the Company
suffered production outages at two of its mini-mills
related to transformer failures and a major equipment
installation. These outages, and the resultant
increases in conversion costs, led to the high cost FIFO
inventories referred to above. First quarter steel
conversion costs were $119 per ton, compared with $126
in the immediately preceding quarter and $117 in the
first quarter last year. Raw material scrap cost in the
first quarter was $138 per ton, down from $142 in the
immediately preceding quarter and up from $123 in the
first quarter last year.
Operating efficiency at the Company's rebar/merchant
mini-mills was high during the first quarter, as steel
melting and finished rolling production records were
set. In July, the Company began operating a new high-
reactance electric arc furnace at its Seattle mill,
which has significantly outperformed the Company's
expectations. Production levels achieved by the new
melt shop, though low due to its start-up mode, were
nearly double its projected output. Although all the
Company's mini-mills are operating efficiently, flat
steel shipment levels coupled with rising production
have led to increased inventory levels Company-wide. As
a prudent measure to reduce these surplus inventory
levels, the Company has begun to limit production at
certain facilities and perform scheduled equipment
upgrades and maintenance operations. As a result,
conversion costs in the second quarter will likely
increase from first quarter levels.
First quarter raw material billet cost at the Company's
high quality rod mills rose to $348 per ton, an increase
of 8 percent from $321 in the prior year period. The
Company is proceeding on schedule with its announced
plan to construct a high quality steel melting facility
in Memphis. Groundbreaking for the new facility is
planned for late in the fiscal second quarter, with
tentative start-up scheduled for the fourth quarter of
fiscal 1997.
Depreciation and amortization expense increased to
$8,030,000 from $7,985,000 in the first quarter of
fiscal 1995, primarily due to the recognition of
depreciation of fixed asset additions during fiscal 1995
and fixed asset additions in the first quarter of fiscal
1996.
Selling, General and Administrative Expenses (SG&A)
SG&A increased in the first quarter to $10,382,000 from
$9,169,000 reported last year primarily due to expenses
associated with the Company's recent contract with
Electronic Data Systems (EDS) which is expected to
provided the Company with state-of-the-art systems
capabilities. As a percent of net sales, first quarter
SG&A were 5.0 percent, compared with 4.2 percent last
year.
Interest Expense
Interest expense declined 3.6 percent in the first
quarter of fiscal 1996 to $2,271,000, compared with
$2,356,000 reported last year. Interest expense is
expected to increase for the remainder of the fiscal
year due to an increase in debt levels with the planned
mid-December 1995 funding of the Company's recently
arranged $150 million private placement bearing an
average interest rate of 7.05 percent.
Income Taxes
Effective income tax rates for the first quarters of
fiscal 1996 and fiscal 1995 were 40.9% and 41.2%,
respectively.
Liquidity and Capital Resources
Operating Activities
In the first quarter of fiscal 1996, net cash used in
operating activities was $3.8 million, compared with
cash provided by operating activities of $41.0 million
reported last year. The decline in cash flow was
essentially due to a substantial increase in operating
inventory levels at all of the Company's production
facilities. The growth in current year inventory levels
was primarily the result of increased finished goods
production combined with flat shipment levels and the
inclusion of certain inventories at the Company's rod
production facilities previously held as inventory on
consignment.
Investing Activities
Net cash used in investing activities during the first
quarter was $60.8 million, compared with $14.2 million
last year. Capital spending increased significantly
during fiscal 1996, as the Company proceeds with the
primary elements of its multi-year capital development
plan. Current major projects include the recently
completed melt shop furnace at the Seattle mill and the
$112 million state-of-the-art bar mill at the Company's
American Steel and Wire subsidiary (ASW) scheduled for
completion in April 1996. Also during the first
quarter, the Company entered into an agreement to
purchase certain idled steelmaking assets of Western
Steel Limited and the stock of Richmond Steel Recycling
Limited (a subsidiary of Western Steel Limited) both
located in British Columbia, Canada (see Note 2 to
Consolidated Financial Statements).
Financing Activities
Net cash provided by financing activities was $63.1
million in the first quarter, compared with net cash
used in financing activities of $2.8 million last year.
During the quarter, the Company drew from its short-term
credit lines in order to fund capital investments and
other expenditures in excess of operating cash flow and
completed a $15 million, 30 year tax-free bond financing
at ASW. Also, pursuant to Board authorization, the
Company purchased approximately 10,000 shares of its
stock in the open market during the first quarter, with
subsequent purchases of approximately 25,000 shares
early in the second quarter of fiscal 1996.
Working Capital
Working capital at the end of the first quarter
decreased to $176.6 million, compared with $206.9
million at the end of fiscal 1995. The decrease in
working capital was essentially due to the increased
short-term borrowing mentioned above.
Other Comments
On October 17, 1995, the Company declared a regular
quarterly cash dividend of $.10 (ten cents) per share
which was paid November 7, 1995 to shareholders of
record on October 27, 1995.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The Company is involved in litigation relating to claims
arising out of its operations in the normal course of
business. Such claims against the Company are generally
covered by insurance. It is the opinion of management
that any uninsured or unindemnified liability resulting
from existing litigation would not have a material
adverse effect on the Company's business or financial
position. There can be no assurance that insurance,
including product liability insurance, will be
available in the future at reasonable rates.
By letter dated October 20, 1992, the Department of
Toxic Substances Control of the Environmental Protection
Agency of the State of California ("DTSC") submitted to
Barbary Coast Steel Corporation ("BCSC"), a wholly owned
subsidiary of the Company, for its review and comment a
proposed Consent Order relating to BCSC's closed steel
facility at Emeryville, California. BCSC and DTSC
executed the terms of a Consent Order on March 22, 1993
and, pursuant to that Consent Order, BCSC has completed
an environmental assessment of the site and has nearly
completed the remediation of the property. DTSC has
approved the work plan. The Company believes that, in
connection with the January 1991 closure of the
Emeryville mill, it made adequate provisions in its
financial statements for the cost of remediating the
site.
On March 26, 1993, an action entitled IMACC Corporation
v. Warburton. et al. was filed in the U.S. District
Court for the Northern District of California, Case No.
C93-1114-VRW against Barbary Coast Steel Corporation
("BCSC"), a wholly owned subsidiary of the Company. This
lawsuit was brought by IMACC Corporation ("IMACC"), the
parent of Myers Container Corporation, the lessee of
property immediately adjacent to the Company's Barbary
Coast property in Emeryville, California. IMACC has sued
BCSC, Judson Steel Corporation (from whom BCSC purchased
the property) and several of the individual owners of
the property leased by IMACC, under the Comprehensive
Environmental Response, Compensation and Liability Act
of 1980 ("CERCLA"), 42 U.5.C. SS 9601 -9675 and various
state law causes of action, alleging that the Defendants
contributed to environmental contamination on the IMACC
property. IMACC subsequently amended its complaint
several times, including the addition of a citizens'
suit claim under RCRA, 42 U.S.C. SS 6972.
BCSC has interposed numerous affirmative defenses to
IMACC's claims, and additionally has counterclaimed
against IMACC alleging that IMACC has contaminated the
BCSC property, and cross-claimed against Judson Steel
Corporation and its corporate parent, alleging that they
must indemnify BCSC for any monies due to IMACC. Other
parties in the case have brought additional
counterclaims and cross-claims against each other, BCSC,
and third parties, including Kaiser Steel Resources. The
parties have exchanged voluminous documents and lists of
potential witnesses pursuant to the Court's Case
Management Program.
IMACC has alleged current and prospective damages,
excluding attorneys' fees, of between $1,000,000 and
$4,700,000. BCSC and several co-defendants successfully
moved for dismissal of IMACC's RCRA claims, effectively
eliminating liability for IMACC's attorneys fees. IMACC
has indicated that it intends to request reconsideration
of this ruling.
Based upon the results of laboratory analysis of soil
samples taken from the property, BCSC believes that
IMACC's contention that BCSC is responsible for the
contamination of the property in question is without
merit. The Company believes that there is little, if
any, factual basis for IMACC's claims; the Company
further believes that most, if not all, of any liability
imposed upon it may be recovered from other parties to
the litigation through its claims of indemnity. Trial
is presently set for October 7, 1996.
Item 6. Exhibits and Reports on Form 8-K
The following exhibit is being filed with this report:
Exhibit 27 - Financial Data Schedule
During the quarter ended September 30, 1995, no reports
on Form 8-K were required to be filed.
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.
Birmingham Steel
Corporation
November 14, 1995 James A. Todd, Jr.
-------------------
James A. Todd, Jr.
Chairman, Chief
Executive Officer
November 14, 1995 John M. Casey
--------------------
John M. Casey
Vice President,
Chief Financial
Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
September 30, 1995 Consolidated Balance Sheets and Consolidated Statements
of Income of Birmingham Steel Corporation and is qualified in its entirety by
reference to such.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> SEP-30-1995
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<ALLOWANCES> 1438
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<PP&E> 570321
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<TOTAL-ASSETS> 829489
<CURRENT-LIABILITIES> 145881
<BONDS> 157500
<COMMON> 296
0
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<OTHER-SE> 465608
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<CGS> 182135
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</TABLE>
