AMM 1998 'Top 50' Corporate Profiles

A.M. CASTLE & CO.

Metal sales: $792,846,000 (100 percent of gross sales)

Gross sales: $792,846,000

Metal products: Distributor and processor of carbon and stainless steels, specialty metals, non-ferrous metals, rounds, hexagons, squares and flat bars, plates, tubing, shapes, sheet and coil

Markets: Durable equipment producers

Headquarters: 3400 N. Wolf Rd., Franklin Park, Ill.

Sales and earnings:

Year Revenue Earnings
1998 $792,846,000 $18,522,000
1997 754,865,000 23,845,000
1996 672,617,000 26,104,000
1995 627,617,000 26,826,000


Summary: A.M. Castle believes it performed well in 1998 considering the difficult steel environment, but it still recorded a 22.3 percent dip in its 1998 earnings compared to the previous year.

The company blamed the drop in earnings principally on higher interest costs, along with higher amortization and depreciation levels, associated with investments made over the past three years. In 1999 and beyond, the company expects that those costs will moderate.

Net sales in 1998 rose 5 percent in 1998, to a record $793 million, compared to 1997. The increase reflected contributions from two acquisitions completed during the past two years, Castle said. In 1998, the company acquired Oliver Steel Plate Corp., Twinsburg, Ohio, a plate processor, and Aerospace Metals Ltd., Bury, England, a specialty metals distributor that specializes in bar products for the aerospace industry.

Castle also entered a joint venture with specialty metals distributor Energy Alloys Inc., Houston, which takes the company into the tubular business for the oil field industry, a highly specialized market niche.

However, operating earnings in the year-to-year comparison dropped 3 percent, to $48.7 million. The operating profit was affected by increased transaction activity as Castle said customers ordered in smaller quantities with more frequent deliveries. Operating earnings were also affected by increased expenses related to the start-up of new processing equipment and the integration of recent acquisitions.

"These expenses are largely behind us, Castle said in its annual report.

AK STEEL CORP. 11

Metal sales: $2,393,600,000

(100 percent of gross sales in 1998)

Gross sales: $2,393,600,000

Metal products: Hot and cold-rolled steels, aluminized, hot-dip galvanized, flat-rolled and other specialty steels

Markets: Automotive, appliances, construction, manufacturing

Headquarters: 703 Curtis St., Middletown, Ohio, 45043, (513) 425-5000: Website: www.aksteel.com

Sales and earnings:

Year Revenue Earnings
1998 $2,393,600,000 $114,500,000
1997 $2,440,500,000 $150,900,000
1996 2,302,000,000 146,000,000
1995 2,257,000,000 269,000,000
1994 2,013,200,000 257,600,000
1993 1,594,500,000 (42,700,000)
1992 1,404,500,000 (544,100,000)


Summary: For the full year 1998, AK Steel earned $114.5 million, or $1.92 per share of common stock, on shipments of 4.6 million tons Net sales were $2.4 billion, resulting in operating profit of $213.6 million, or $46 per shipped ton. In 1998, AK Steel's shipments to automotive customers were a record 2.3 million tons, surpassing by 11 percent its 1997 automotive shipments. AK Steel shipments to automotive customers have increased 155 percent since 1992.

The company achieved these numbers despite competing in a marketplace flooded with low-priced imports of foreign steel. The year brought about the early start-up of its new cold rolling and coating facilities in Rockport, Ind. At the same time, AK plants in Middletown, Ohio, and Ashland, Ky., posted record safety and productivity performances.

AK's percentage of shipments of value-added cold-rolled and coated products set a new annual record for the sixth consecutive year. Cold-rolled and coated products accounted for 68 percent of total shipments in 1998, up 9 percent from 1997 and reflecting product mix improvements from the start of cold-rolling and coating operations at Rockport.

During the year, two major units of AK's new Rockport Works began operations three months ahead of schedule. In June, operations commenced on the 800,000-tons-per-year hot-dipped galvanizing and galvannealing line, while in September. the 60,000 horsepower continuous carbon/stainless cold mill began operations. All the remaining units at Rockport Works were expected to be in operation later in 1999. AK Steel said it expected to begin finishing 300- and 400-series stainless flat rolled products at Rockport during 1999 to further enhance the mix of higher-margin products.

ALCAN ALUMINIUM LTD. 2

Metal sales: US$7,092,000,000 (91.0 percent at gross sales n 1998)

Gross sales: US$7,789,000,000

Metal products: Primary aluminum, fabricated, rolled sheet and foil prod ucts, litho sheet, alumina and alumina chemicals, secondary metal

Markets: Automotive, transportation, buildings and construction, containers and packaging, electrical, and alumina and chemicals