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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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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) October 1, 1997
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ALUMAX INC.
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(Exact Name of Registrant as Specified in Charter)
Delaware 1-12374 13-2762395
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
3424 Peachtree Rd., N.E., Suite 2100, Atlanta, GA 30326
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (404) 846-4600
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(Former Name or Former Address, if Changed Since Last Report)
Page 1 of 5 Total Pages
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Item 5. Other Events.
See the Registrant's press release, dated October 1, 1997, which is
attached hereto as Exhibit 99.1 and which is incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
Exhibit Number Description
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99.1 Registrant's press release dated October 1, 1997
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.
Alumax Inc.
By /s/ Helen M. Feeney
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Helen M. Feeney
Vice President & Corporate Secretary
Date: October 3, 1997
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EXHIBIT INDEX
Exhibit Number Description
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99.1 Registrant's press release dated October 1, 1997
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EXHIBIT 99.1
ALUMAX TO APPEAL TAX COURT DECISION
ATLANTA, GA. -- October 1, 1997 -- Alumax Inc. (NYSE: AMX; Toronto: AXI)
announced today that it has been informed that the United States Tax Court has
ruled in favor of the Internal Revenue Service in a suit against Alumax
regarding an alleged federal income tax deficiency of $129 million, which with
interest approximates a total of $400 million. Alumax has strongly contested
the IRS notice of deficiency and now plans to appeal the court's ruling.
Alumax indicated that it has established reserves so that this matter
will not have a material adverse effect on the company's financial condition.
Allen Born, Alumax chairman and chief executive officer, said:
"We're disappointed with the court's decision. We will vigorously
appeal the case. Meanwhile, Alumax will continue to pursue its strategic plans
for growth and development."
(more)
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In conjunction with its appeal, the company said that it will pay the
alleged deficiency and related interest upon receipt of the assessment in order
to prevent the further accrual of additional interest on the alleged
deficiency. The company said that it will fund the deficiency and related
interest from cash balances and available revolving credit facilities.
Alumax said that payment of the deficiency with interest thereon will
provide certain tax benefits to the company that will offset in part, in the
year of payment and within the carry-forward period, the cost of paying the
deficiency and interest. Therefore, as a result of this adverse ruling the
company will record a $100 million to $110 million (approximately $1.80 to
$1.95 per share) charge to net earnings in the third quarter of 1997, which
represents the unprovided for net deficiency related to this matter.
Alumax is a world leader in aluminum with assets of $3.3 billion and
1996 revenues of more than $3.1 billion.
The company produces and markets primary aluminum ingot, billet and
slab and is a major fabricator of value-added aluminum products for the
transportation, distributor, building and construction, packaging and consumer
durables markets.
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