Keystone Consolidated Industries, Inc. : KEYSTONE REPORTS FIRST QUARTER OPERATING RESULTS

   Keystone Consolidated Industries, Inc. : KEYSTONE REPORTS FIRST QUARTER
                              OPERATING RESULTS

DALLAS, TEXAS . . . May 14, 2013 . . . Keystone Consolidated Industries,  Inc. 
(OTCQB:  KYCN),   reported  operating   income   before  pension   and   other 
postretirement benefit ("OPEB") credits for the first quarter of 2013 of  $5.8 
million, which was lower than the operating income before pension and OPEB  in 
the first quarter of 2012 of $8.9 million primarily due to the net effects  of 
the following factors:

  odecreased shipment volumes of wire rod due to weakened demand,
  oincreased shipment volumes of fabricated wire products due to strong
    demand and market share gained during 2012,
  olower margin on wire rod, industrial wire and bar due to competitive
    pressures and resulting lower average selling prices and customers'
    postponing purchases in anticipation of lower ferrous scrap market prices
    in the immediate future,
  obetter margin on fabricated wire products and mesh primarily due to a
    favorable change in product mix,
  oproduction inefficiencies due to certain unplanned repairs to Keystone's
    steel mill production equipment as well as lower wire rod production and
    frequent wire rod production changes as a result of low demand, and
  oincreased costs associated with continued efforts to optimize production
    operations at one of Keystone's segments.

Because the amount of the Company's  net periodic defined benefit pension  and 
OPEB expense or credits are unrelated  to the ongoing operating activities  of 
the  Company,  Keystone  measures  its  overall  operating  performance  using 
operating income before pension and OPEB expense or credits. A reconciliation
of operating income as reported to  operating income adjusted for pension  and 
OPEB expense or credits is set forth in the following table.

                                                         
                                                 Three months ended
                                                      March 31,
                                              2012               2013
                                                   (In thousands)
                                                    (unaudited)
                                                         
Operating income as reported             $ 12,326   $ 11,162
 Defined benefit pension credit         (1,899)  (3,696)
 OPEB credit                            (1,577)  (1,674)
Operating income before pension and OPEB $ 8,850  $ 5,792
                                                         
                                                         

Net income  for the  first quarter  of 2013  was $6.7  million, or  $0.55  per 
diluted share, as compared to net income of $7.3 million, or $0.60 per diluted
share, in the first quarter of 2012. The decrease in net income was primarily
due to  lower  operating income  before  pension  and OPEB  of  $3.1  million, 
partially offset  by a  $1.8  million higher  defined benefit  pension  credit 
during the first quarter of 2013.

Primarily due to a  $50 million increase in  Keystone's pension plans'  assets 
during 2012, the Company currently expects to record a defined benefit pension
credit of $14.8 million  during 2013 as compared  to the $6.9 million  defined 
benefit  pension  credit  it  recorded  during  2012.  Accordingly,  Keystone 
recorded a defined  benefit pension credit  of $3.7 million  during the  first 
quarter of 2013  as compared to  the $1.9 million  credit recorded during  the 
first quarter of 2012.

This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Statements in this release
that are not historical in nature are forward-looking and are not statements
of fact. Forward-looking statements represent the Company's beliefs and
assumptions based on currently available information. In some cases you can
identify these forward-looking statements by the use of words such as
"believes," "intends," "may," "should," "could," "anticipates," "expected" or
comparable terminology, or by discussions of strategies or trends. Although
Keystone believes the expectations reflected in forward-looking statements are
reasonable, it does not know if these expectations will be correct.
Forward-looking statements by their nature involve substantial risks and
uncertainties that could significantly impact expected results. Actual future
results could differ materially from those predicted. While it is not possible
to identify all factors, the Company continues to face many risks and
uncertainties. Among the factors that could cause Keystone's actual future
results to differ materially from those described herein are the risks and
uncertainties discussed from time to time in the Company's filings with the
Securities and Exchange Commission ("SEC") including, but not limited to, the
following:



  *Future supply and  demand for Keystone's  products (including  cyclicality 
    thereof),
  *Customer inventory levels,
  *Changes in raw material and other  operating costs (such as ferrous  scrap 
    and energy),
  *Availability of raw materials,
  *The possibility of labor disruptions,
  *General global economic and political conditions,
  *Competitive  products  (including   low-priced  imports)  and   substitute 
    products,
  *Customer and competitor strategies,
  *The impact of pricing and production decisions,
  *Environmental matters  (such as  those  requiring emission  and  discharge 
    standards for existing and new facilities),
  *Government regulations and possible changes thereof,
  *Significant increases  in  the  cost  of  providing  medical  coverage  to 
    employees,
  *The ultimate  resolution  of  pending litigation  and  U.S.  Environmental 
    Protection Agency investigations,
  *International trade  policies of  the United  States and  certain  foreign 
    countries,
  *Operating interruptions (including,  but not limited  to, labor  disputes, 
    fires, explosions, unscheduled or  unplanned downtime, supply  disruptions 
    and transportation interruptions),
  *The Company's ability to renew or refinance credit facilities,
  *The ability of the Company's customers to obtain adequate credit,
  *Any possible future litigation, and
  *Other risks and uncertainties as  discussed in the Company's filings  with 
    the SEC.

 Should one or more of these risks materialize, if the consequences
worsen, or if the underlying assumptions prove incorrect, actual results could
differ materially from those forecasted or expected. Keystone disclaims any
intention or obligation to update or revise any forward-looking statement
whether as a result of changes in information, future events or otherwise.



In an effort to  provide investors with  additional information regarding  the 
Company's results as determined by accounting principles generally accepted in
the United  States of  America  ("GAAP"), the  Company has  disclosed  certain 
non-GAAP information, which the  Company believes provides useful  information 
to investors:

  *The Company discloses operating income before pension and OPEB expense  or 
    credits,  which  is  used  by  the  Company's  management  to  assess  its 
    performance. The Company believes  disclosure of operating income  before 
    pension and  OPEB  expense  or  credits  provides  useful  information  to 
    investors because it allows  investors to analyze  the performance of  the 
    Company's operations in  the same  way the  Company's management  assesses 
    performance.

Keystone Consolidated Industries, Inc. is headquartered in Dallas, Texas. The
Company  is  a  leading  manufacturer  of  steel  fabricated  wire   products, 
industrial wire and wire  rod. Keystone also  manufactures wire mesh,  coiled 
rebar, steel bar and other products.  The Company's products are used in  the 
agricultural, industrial, cold  drawn, construction, transportation,  original 
equipment manufacturer and retail  consumer markets. Keystone's common  stock 
is quoted on the OTCQB (Symbol: KYCN).

                             * * * * * * * * * *

           KEYSTONE CONSOLIDATED INDUSTRIES, INC. AND SUBSIDIARIES
                       Condensed Summary of Operations
                    (In thousands, except per share data)

                                                    
                                           Three months ended
                                       March 31, 
                                      2012                    2013
                                               (unaudited)
                                                    
Net sales                     $ 153,293     $ 142,774
Cost of goods sold             (137,220)    (130,213)
                                                    
Gross margin                $ 16,073    $ 12,561
                                                    
Operating income              $ 12,326    $ 11,162
                                                    
                                                    
Income before income taxes    $ 11,689    $ 10,892
 Provision for income taxes   (4,424)  (4,225)
Net income                    $ 7,265   $ 6,667
                                                    
Basic and diluted net income  $ 0.60  $ 0.55
per share
                                                    
Basic and diluted weighted                           
average
 shares outstanding           12,102    12,102
                                                    

CONTACT: Bert E. Downing, Jr., Vice President and Chief Financial Officer,
(972) 458-0028

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Source: Keystone Consolidated Industries, Inc. via Thomson Reuters ONE
HUG#1701844
 
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