Inland skips 2nd-quarter dividend

Reflecting hard times in the steel industry, Inland SteelIndustries Wednesday decided to skip its second-quarter cash dividendon common shares.

The company paid cash dividends of 15 cents per share in 1991'sfirst quarter and 35 cents per share in each quarter of 1990 and1989.

The company last suspended dividend payments in the fourthquarter of 1985 but resumed in the first quarter of 1988.

"Demand for our principal products - sheets and bar steels forconsumer durables - fell to low levels as consumer spending forautomobiles and appliances remained particularly weak," said ChairmanFrank W. Luerssen at the company's annual meeting Wednesday.

By skipping the dividend, Inland is conserving its cash.

During the first quarter, when the company operated at 77percent of capacity, Inland's wholly owned Inland Steel Co.subsidiary lost $75.1 million, compared with net income of $12.6million a year earlier.

Today, Inland is operating at even less than 77 percent.

"There are no clear indications that the economy is recoveringand our order book for the second quarter shows little improvement,"Luerssen said.

But Inland has adequate financing capacity even if the recessioncontinues for the rest of the year, the company said.

The firm has been hit harder than some other steelmakers,partially because it has had difficulty supplying quality flat-rolledsteel to I/N Tek, a joint-venture facility in New Carlisle, Ind.,said Christopher Plummer, a steel analyst with WEFA Group of BalaCynwyd, Pa.

Also Wednesday, Inland announced that it has trimmed another$100 million from its 1991 capital spending program. Earlier, thesteelmaker had said its spending would be $365 million, down $85million from a year earlier.

Completion of I/N Kote, its other joint venture with NipponSteel Corp. in New Carlisle, won't be slowed down. It is to beginoperations later this year.

The second-quarter dividend would have been payable June 1 tostockholders of record on May 8.

Inland said it will restore the dividend as soon as possibleafter a return to profitability and economic recovery in the steelindustry.