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NATIONAL STEEL'S REPORTED NET LOSSES FOR FOURTH QUARTER AND FULL YEAR 1992 INCLUDE LARGE UNUSUAL AND EXTRAORDINARY CHARGES

 MISHAWAKA, Ind., Jan. 22 /PRNewswire/ -- National Steel Corporation today reported net losses of $99.0 million for the fourth quarter and $48.4 million for the full year 1992.
 Included in these amounts were charges for extraordinary and unusual items which contributed an aggregate of $75.2 million and $10.7 million, respectively, to the quarter's and year's losses.
 The results for 1992 compare with net losses of $84.9 million and $189.5 million, respectively, for the fourth quarter and full year 1991, which included a fourth quarter charge for unusual items totaling $110.7 million.
 The 1992 net losses for the fourth quarter and year included an extraordinary charge of $50.0 million representing the company's estimated liability for the United Mineworkers of America retiree health and death benefits programs under a provision of the Coal Industry Retirement Benefit Act of 1992, commonly known as the Rockefeller Amendment. Also included in the year's results was a credit of $76.3 million representing the cumulative effect of a change in the method of accounting for income taxes in accordance with Financial Accounting Standard Board Statement 109 which the company adopted in the fourth quarter. This change required a restatement of the company's first quarter 1992 results.
 Net losses for the 1992 fourth quarter and year were increased by $3.4 million due to the liquidation of LIFO inventories. Last year, LIFO liquidations reduced the net loss for the same periods by $10.9 million.
 Excluding unusual items, National Steel had an operating profit of $24.5 million for the full year. In 1991, excluding unusual charges, National had a loss from operations of $20.0 million for the year.
 The unusual items charged to the company's 1992 operating results represented costs incurred for a pension window offered to salaried employees in connection with the relocation of the company's headquarters to Mishawaka from Pittsburgh, and the restructuring of its corporate and divisional staff organizations. In addition, the company recorded a further write-down of its coal properties and the costs associated with its decision to exit the coal business.
 National Steel's $110.7 million charge for unusual items in 1991 included costs related to the idling of its Mathies Coal Mine near Pittsburgh, writedowns at other coal mining operations, and estimated costs for the 1992 headquarters relocation and staff restructuring.
 Net sales for the fourth quarter and full year 1992 were $572.8 million and $2.4 billion, compared to the $627.8 million and $2.3 billion, respectively, reported in the same periods of 1991.
 Fourth quarter shipments of 1,179,000 were 7.1 percent less than the 1,268,000 tons shipped in the same 1991 period. However, shipments of 4,974,000 for the full year represented an increase of 1.4 percent over 1991's 4,906,000 tons.
 Raw steel production in the fourth quarter was 1,333,000 tons, 4.8 percent less than the 1,400,000 tons produced in 1991. For the year, however, production of 5,381,000 was up 2.6 percent over the 5,247,000 tons in 1991.
 National Steel attributed its 1992 operating performance principally to the impact of continuing soft economic conditions on prices. However, prime yield, a principal indicator of quality and productivity, continued to improve during the year, and the company was able to reduce the number of manhours needed to produce a ton of steel by about one-quarter of an hour.
 The company said its reduced production volume in the fourth quarter was due to planned maintenance outages at several key facilities including a blast furnace at the firm's Granite City Division and the hot strip mill and several finishing facilities at its Great Lakes Division.
 National Steel's sizable capital expenditures for new plant and equipment continued in 1992. A new coke battery serving the company's Great Lakes Division is now operational and should provide about 60 percent of the division's coke requirements in 1993. The DNN galvanizing line in Windsor, Ontario, began commercial production in January 1993. The line is a joint venture with National's parent company, NKK Corporation, and Dofasco Inc. of Canada. Upon reaching full capacity, it will process 400,000 tons of galvanized product annually for the North American automotive market.
 The company expressed satisfaction with the decision by the U.S. Department of Commerce in November to impose preliminary tariffs on steel imports from a dozen countries accused of subsidizing their steel industries. The action was in response to 30 trade suits filed by a dozen American steel producers last summer. A preliminary decision is due later this month on 42 dumping claims against foreign producers made at the same time. Final decisions on all of the suits are due this summer.
 National Steel Corporation is the fourth largest steel producer in North America, with production facilities in Ecorse, Mich., near Detroit; Granite City, Ill., near St. Louis; and Portage, Ind., near Chicago. The company is headquartered in Mishawaka, Ind., and employs about 10,300 people.
 NATIONAL STEEL CORPORATION
 Statements of Consolidated Income
 (Unaudited; in millions of dollars)
 Periods Ended Three Months Year
 Dec. 31 1992 1991 1992 1991
 Net sales $572.8 $627.8 $2,373.3 $2,329.8
 Cost of products sold 516.2 522.1 2,106.7 2,102.6
 Selling, general & adm. 35.0 35.3 132.8 139.3
 Depreciation, depletion
 and amortization 31.2 33.7 114.9 117.0
 Equity (income) (1.5) (3.3) (5.6) (9.1)
 Unusual items 25.2 110.7 37.0 110.7
 (Loss) from operations (33.3) (70.7) (12.5) (130.7)
 Financing costs 15.6 14.4 62.0 58.7
 (Loss) before income taxes,
 extraordinary item and
 cumulative effect of a change
 in method of accounting
 for income taxes (48.9) (85.1) (74.5) (189.4)
 Inc. tax prov. (credit) .1 (.2) .2 .1
 (Loss) before extraordinary
 item and cumulative effect
 of a change in method of
 accounting for income taxes (49.0) (84.9) (74.7) (189.5)
 Estimated liability for the
 United Mineworkers of
 America retiree health
 benefit program (50.0) 0 (50.0) 0
 Cumulative effect of a change
 in method of accounting for
 income taxes 0 0 76.3 0
 Net (loss) (99.0) (84.9) (48.4) (189.5)
 -0- 1/22/93
 /CONTACT: Robert R. Toothman of National Steel, 219-273-7552/


CO: National Steel Corporation; NKK Corporation; Dofasco Inc. ST: Pennsylvania, Indiana IN: MNG SU: ERN

DM-MP -- PG009 -- 8038 01/22/93 16:04 EST
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Date:Jan 22, 1993
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