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 WARREN, Ohio, Nov. 22 /PRNewswire/ -- CSC Industries, Inc. ("CSC") (NASDAQ: CPSL) announced today that it and its wholly-owned subsidiary Copperweld Steel Company ("Copperweld") have filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Ohio, Eastern Division. Copperweld is a leading regional producer of special quality alloy and carbon steel bars and employs approximately 1,400 people.
 CSC's President and CEO, Donald J. Caiazza, stated, "Our decision to seek Chapter 11 protection will help us overcome our current liquidity problems. We will now be able to obtain debtor in possession financing while we continue to address our high manufacturing cost, overcapacity and an abnormally low selling price for steel bar products.
 "The Company has been engaged in a 20 month turnaround effort to restore the operation to cash flow break even by year end 1993, and due to the significant effort of its employees, is approaching that goal. After reviewing all of the remaining options, however, the Board of Directors determined that the Company's potential success would be significantly enhanced by a chapter 11 filing. The filing provides us with the additional time needed to accomplish our goal, while continuing to operate our mills without interruption and to provide the high quality products and reliability our customers have come to expect.
 "We have obtained Court authority to pay employees for all work performed prior to the bankruptcy. Employees, vendors and other suppliers of goods and services provided to the debtor in possession after the filing will be paid according to regular business practices.
 "In regard to employee benefits, again we have obtained Court approval to pay all pre-bankruptcy benefits to the extent they were not paid. Copperweld also will continue to pay post-bankruptcy benefits, as it is our goal to avoid any interruption in payroll or benefits for all employees."
 In July of 1993, Daido Steel Co., Ltd., Itochu, Okaya, and Marubeni, which in the aggregate, own 62 percent of CSC, announced that they were seeking a purchaser of their stock in the company. Since that time, the company has engaged in preliminary discussions with several interested buyers and Caiazza did not rule out the possibility of a future sale of Copperweld.
 CSC and Copperweld have reached agreement with Congress Financial regarding a postpetition debtor in possession financing facility which will be submitted to the Bankruptcy Court for approval. The agreement is for a 12-month working capital facility that will provide a secured line of credit of $15 million to fund short-term cash needs. The company believes that such funds, together with the current improvement in manufacturing efficiency and continued cost reduction efforts will provide the liquidity for timely payment of CSC's and Copperweld's postpetition obligations during the term of the facility. CSC and Copperweld believe that their operations and their customer and vendor relations will continue uninterrupted.
 CSC Industries, Inc. today also reported its financial results for the third quarter of 1993. Sales and revenue of $44,260,000 were down from last year's third quarter level of $46,703,000. Sales and revenues were down 5 percent from the last year's third quarter, however, the third quarter 1993 price per ton of steel was up 6 percent over the comparable 1992 three-month period.
 A net loss of $4,531,000, or $0.20 per share, is reported in the third quarter of 1993, as compared to a net loss of $6,139,000, or $0.27 per share, as restated, during the third quarter last year. The third quarter loss for 1993 includes a charge of $1,000,000 for Employer's Accounting for Postretirement Benefits Other Than Pensions (FAS 106). Last year's restated third quarter loss includes a charge against earnings for FAS 106 of $1,177,000. (Please see the following financials for details.)
 Excluding the effect of FAS 106, the loss for the three-month period ending Sept. 30, 1993 was $3,531,000 as compared to a loss of $4,962,000 for the same period of 1992. This reduction in the period-to-period loss was the result of significant efforts in cost reductions, productivity and efficiency improvements, and rationalization projects.
 1993 1992
 Quarter ended September 30
 Sales and Revenues $ 44,260,000 $ 46,703,000
 Loss before OPEB expense (3,531,000) (4,962,000)
 OPEB expense (1,000,000) (1,177,000)
 Net loss $ (4,531,000) $ (6,139,000)
 Per share:
 Loss before OPEB expense $ (.15) $ (.22)
 OPEB expense (.05) (.05)
 Net loss $ (.20) $ (.27)
 Shares Outstanding 23,151,583 22,892,968
 Nine Months ended September 30
 Sales and Revenues $141,380,000 $138,886,000
 Loss before OPEB expense and
 cumulative effect of changes in
 accounting principles (11,198,000) (16,903,000)
 OPEB expense (3,000,000) (3,533,000)
 Loss before cumulative effect of
 changes in accounting principles (14,198,000) (20,436,000)
 Cumulative effect of changes in
 accounting principles --- (91,185,000)
 Net loss $(14,198,000) $(111,621,000)
 Per share:
 Loss before OPEB expense and
 cumulative effect of changes in
 accounting principles $ (.49) $ (.74)
 OPEB expense (.13) (.15)
 Loss before cumulative effect of
 changes in accounting principles (.62) (.89)
 Cumulative effect of changes in
 accounting principles --- (3.99)
 Net loss $ (.62) $(4.88)
 Shares Outstanding 23,046,315 22,887,350
 -0- 11/22/93
 /CONTACT: Robert Rubicky, manager of employee relations, of CSC Industries, 216-841-6550/

CO: CSC Industries, Inc. ST: Ohio IN: MNG SU: ERN BCY

BM-AR -- CL008 -- 6802 11/22/93 11:30 EST
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Publication:PR Newswire
Date:Nov 22, 1993

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