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 September 3, 1996
Commission File Number 0-21828
GREENFIELD INDUSTRIES, INC.
DELAWARE
470 Old Evans Road
Evans, Georgia 30809
706/863-7708
I.R.S. Employment I. D. 04-2917072
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Item 5. OTHER EVENTS
On September 3, 1996, Greenfield Industries, Inc. (the "Company") issued a press
release concerning expected results for the fiscal quarter ending September 30,
1996, a copy of which is attached hereto as an exhibit, and incorporated herein
by reference thereto.
ITEM 7. EXHIBITS
(a) Press Relesase of the Company dated September 3, 1996.
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SIGNATURES
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 hereunto duly authorized.
GREENFIELD INDUSTRIES, INC.
Date: September 6, 1996 by /s/ Gary L. Weller
_________________________________
Gary L. Weller
Senior Vice President and
Chief Financial Officer
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INDEX TO EXHIBITS
a) Press Release of the Company dated September 3, 1996.
Contacts: Gary L. Weller
Senior Vice President
and Chief Financial Officer
(706)650-4218
GREENFIELD INDUSTRIES, INC.
ANTICIPATES THIRD QUARTER RESULTS BELOW EXPECTATIONS
-- MANAGEMENT ANNOUNCES NEW COST CUTTING PLANS --
Augusta, Georgia -- September 3, 1996 -- Greenfield Industries, Inc.
(NASDAQ: GFII) announced today that it expects to report net sales for
the third quarter ending September 30, 1996 in the range of $115 million
to $125 million and net income in the range of $5.3 million to $6.3
million or $.28 and $.33 per share fully diluted, respectively, after a
restructuring charge of $3.0 million ($1.8 million net of tax or $.10
per share fully diluted). The Company added that it anticipates results
for the quarter will be reported in early November, 1996.
Paul W. Jones, President and Chief Executive Officer of Greenfield, said
"During the quarter, certain of our business groups have experienced a
softening in the marketplace caused by inventory destocking and softer
market conditions. The effect of these lower sales combined with the
Company's reduced production levels relating thereto, will result in
lower profitability for the quarter." Industrial sales are expected to
increase approximately 12% as compared to the third quarter of 1995,
totally driven by sales from newly acquired businesses. However, sales
of the industrial products, excluding acquisitions are expected to
decline approximately 3% as compared to the third quarter of 1995.
Recently however, our order rates have improved.
Mr. Jones continued "In connection with this soft market we have reduced
production in certain facilities to match customer demand, temporarily
resulting in lower plant efficiencies and higher costs. At the same time
however, we have accelerated other cost reduction plans as part of our
ongoing streamlining and productivity programs."
With respect to the electronics group, sales are expected to increase by
approximately 5% as compared to the third quarter of 1995. The market
has been softer than previously expected due to overstocked inventories
resulting in delayed orders. Orders were very sluggish at the beginning
of the quarter, but have recovered to rates near or above the second
quarter
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1996 rates as most markets have rebounded and selling efforts into
certain markets, primarily the Pacific-Rim, are resulting in new sales.
Sales for the remaining four business groups of the Company continue to
increase in line with the Company's expectations.
The Company also announced a restructuring charge of $3.0 million ($1.8
million net of tax) for severance and certain other charges primarily
relating to the continuing effects of the reorganization of the
Company's business groups. In connection with this reorganization,
certain functions were identified as redundant and will be combined or
eliminated, with the objective to make each business group more focused
and responsive to each of their respective customer bases.
Mr. Jones also stated "On a longer term basis, we are excited about the
various markets which we serve, particularly as we introduce new
marketing and promotional programs, expand internationally through
several of our business groups into new markets and expand domestically
through new and exciting consumer channels. In addition to our emphasis
on increasing sales, we will continue to focus on reducing costs
throughout all of our operations. We believe that the fundamentals are
in place for us to stay on course for a strong 1997 and to prosper
through new sales opportunities and further cost reductions."
Certain statements included herein are forward-looking statements.
Actual results could differ materially from those anticipated as a
result of various factors, including downturns, the ability to achieve
cost reductions through consolidation and restructuring of acquired
companies, and possible future acquisitions that may not be
complementary or additive.
Greenfield Industries, Inc. is a leading worldwide manufacturer of
expendable cutting tools and related products used in a variety
of industrial, electronics, energy and construction, engineered
products, consumer and marine markets.
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