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
Date of Report (Date of earliest event reported): April 20, 1998
THE CARBIDE/GRAPHITE GROUP, INC.
Delaware 0-20490 25-1575609
(State of Incorporation) (Commission File Number) (IRS Employer
Identification Code)
One Gateway Center, 19th Floor
Pittsburgh, PA
15222
(Address of principal executive offices)
Registrant's telephone number, including area code: (412) 562-3700
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Item 1 through Item 4: Not applicable.
Item 5 -- Other Events:
Legal Proceedings Update
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On April 20, 1998, the Company announced the following information with
respect to pending litigation:
The Carbide/Graphite Group, Inc. (NASDAQ NNM: CGGI) today announced that it
will record a $38 million charge (approximately $25 million after tax) in its
fiscal third quarter ending April 30, 1998 for potential liabilities resulting
from civil lawsuits, claims, legal costs and other expenses associated with the
antitrust investigations initiated by the U.S. Department of Justice and the
antitrust enforcement authorities of the European Union. The $38 million reserve
includes amounts which may be paid in 1998 and beyond.
The Company is the subject of several civil lawsuits relating to the
investigations into the graphite electrode business. Although the Company
believes that it has meritorious defenses to such lawsuits, the Board of
Directors has determined that recording this reserve is appropriate and in the
best interests of the Company's customers, employees and shareholders. The
fundamentals of the Company's business remain strong and the Company is
optimistic that this reserve will be sufficient to address the resolution of the
civil lawsuits and claims associated with the antitrust investigations. The
Company noted, however, that circumstances could change and the actual
liabilities, costs and expenses resulting from the civil lawsuits and claims
could differ from the current estimate.
The Carbide/Graphite Group, Inc. is a leading manufacturer of industrial
graphite and calcium carbide products with manufacturing facilities in St.
Marys, Pennsylvania; Niagara Falls, New York; Louisville and Calvert City,
Kentucky; and Seadrift, Texas.
Note: This release may contain forward looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Actual future results could
differ materially from those set forth in such statements due to various
factors. Such factors include the occurrence of unanticipated events or
circumstances relating to investigations by the Department of Justice, the
antitrust enforcement authorities of the European Union or related civil
lawsuit's as well as the assertion of other claims relating to such
investigations or lawsuits or the subject matter thereof. Such factors also
include the possibility that increased demand or prices for the Company's
products may not occur or continue, changing economic and competitive
conditions, technological risks and other risks associated with the start-up of
major capital projects, and other risks and uncertainties, including those
detailed in the Company's filings with the Securities and Exchange Commission.
Neither the statements contained in this news release nor any reserve recorded
by the Company relating to civil lawsuits or claims shall be deemed to
constitute an admission as to any liability in connection with the subject
matter thereof.
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Item 6 through Item 9: Not applicable.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the following hereunto duly authorized.
The Carbide/Graphite Group, Inc.
/s/ Walter B. Fowler
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Walter B. Fowler - Chief Executive Officer
Dated: April 21, 1998
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