Cyclops shareholders OK Armco bid

April 24, 1992|By Ross Hetrick | Ross Hetrick,Staff Writer

Shareholders of Pittsburgh-based steelmaker Cyclops Industries Inc., overwhelmingly approved yesterday the sale of their company to Armco Inc., a steel company based in Parsippany, N.J.

Both companies have stainless-steel plants in Baltimore.

The merger is expected to be completed today after Armco shareholders approve it at their annual meeting in Parsippany. Armco is paying $156 million in cash and stock for Cyclops.

Armco also announced yesterday that it lost $30.5 million, or 37 cents a share, during the first quarter, a significant improvement over the 1991 first quarter, when the company lost $39.6 million, or 47 cents a share.

Armco's joint venture with Kawasaki Steel Corp., called Armco Steel Co. L.P., accounted for $24.9 million of the loss, the company said.

The joint operation includes steel mills in Middleton, Ohio, and Ashland, Ky.

Armco Steel has announced that it will shut down the hot strip mill in Ashland by the end of July, eliminating 700 of the 3,650 jobs at that plant.

Armco's Baltimore operation, Baltimore Specialty Steels Corp., lost $2.2 million on sales of $18.2 million in the first quarter. The operation has about 350 workers.

Cyclops owns the Eastern Stainless Steel plant on Rolling Mill Road, which has 600 workers.

Last month, the companies said they were studying the possibility of linking Armco's Baltimore operation with that of Cyclops' plant in suburban Pittsburgh.

Such a combination is seen as a way of bolstering the two struggling operations.

But executives at the two companies said it was too early to determine what form the arrangement would take or how it would affect the Baltimore work force.

Armco Inc.

Three months ended 3/31/92

.. .. .. Revenue.. .. .. .. Net.. .. .. .. .. .. .. .. .. Share

'92.. .. $366,400,000.. .. $(30,500,000).. .. .. .. .. $ (0.37)

'91.. .. $410,500,000.. .. $(39,600,000).. .. .. .. .. .$(0.47)

% change.. .. .. -10.7.. .. .. .. .. --.. .. .. .. .. .. .. --

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