UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
April 27, 1998
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Date of Report (Date of earliest event reported)
Harnischfeger Industries, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-9299 39-1566457
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(State or other (Commission IRS Employer
jurisdiction of File Number) Identification No.
incorporation)
3600 South Lake Drive, St. Francis, Wisconsin 53235
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(Address of principal executive offices)
(414) 486-6400
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(Registrant's telephone number, including area code)
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(Former name or former address, if changed since last report)
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Item 5. Other Events
On April 27, 1998, Harnischfeger Industries, Inc. issued a News Release
reporting an increase in the previously announced special charge to be taken
during the company's second quarter. Included as Exhibit I to this Current
Report on Form 8-K is Harnischfeger Industries, Inc.'s News Release dated
April 27, 1998
All statements in the release other than historical facts are
forward-looking statements which involve risks and uncertainties and which
are subject to change at any time. Such statements are based on management's
expectations at the time they are made. In addition to the
assumptions and other factors referred to in connection with the statements,
factors set forth in the company's Form 10Q filed with the Securities and
Exchange Commission on March 13, 1998, among others, could cause actual
results to differ materially from those contemplated.
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FORM 8-K
SIGNATURES
Pursuant to the requirements of Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HARNISCHFEGER INDUSTRIES, INC.
(Registrant)
Date: April 28, 1998 By:
/s/ Eric B. Fonstad
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Eric B. Fonstad
Associate General Counsel
and Assistant Secretary
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EXHIBIT I
Contact:
Francis M. Corby, Jr. David A. Brukardt
Executive Vice President Dir., Corp. Communication
Finance and Administration (414) 486-6474
(414) 486-6518
Harnischfeger Increases Beloit Special Charge
MILWAUKEE -- April 27, 1998 -- Harnischfeger Industries, Inc. (NYSE: HPH)
reported today that it has discovered cost overruns and possible accounting
irregularities in its Beloit Corporation subsidiary limited to four large,
ongoing projects in Indonesia.
Harnischfeger stated that while the exact amounts involved are still being
determined, the cumulative effect on Beloit is expected to be
approximately $155 million pretax or $75 million after tax and minority
interest. As a result, the company anticipates that it will increase the
previously announced special charge to be taken during the company's second
quarter by approximately $100 million pretax to reflect the impact of these
Indonesian projects. Harnischfeger further stated that the company expects
that with the gain from the sale of its Material Handling business, net
income for the fiscal second quarter ending April 30 will exceed
the first quarter 1998 results of $0.46 per share.
Jeffery T. Grade, Harnischfeger's Chairman and Chief Executive Officer,
stated: "The overruns and possible irregularities appear to relate
primarily to changes in estimates of costs to complete and failures to
estimate certain costs relating to these complex, large-scale projects. The
Harnischfeger Industries' Board of Directors has ordered a thorough review
of Beloit's accounting and control functions, including project control,
to determine the precise scope of the problem and how the problem arose
as well as to prevent any repetition."
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Page 2 Harnischfeger Industries, Inc.
Grade added, "We are chagrined that these overruns and possible
irregularities occurred. We are determined to take every action necessary
to assure that nothing like this can ever occur again. We are confident
our businesses are sound and on track toward lowering costs, providing
superior customer service and delivering greater profitability per sales
dollar."
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Harnischfeger Industries, Inc. [NYSE: HPH] is a global company with
business segments involved in the manufacture and distribution of equipment
for underground mining (Joy Mining Machinery), surface mining (P&H Mining
Equipment), and pulp and papermaking (Beloit Corporation).
