KEYSTONE CONSOLIDATED INDUSTRIES, INC.
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PRESS RELEASE
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FOR IMMEDIATE RELEASE CONTACT:
Keystone Consolidated Industries, Inc. Vic Stirnaman
5430 LBJ Freeway, Suite 1740 Director -
Dallas, Texas 75240-2697 Human Resources
(972) 458-0028 (309) 697-7512
KEYSTONE AND INDEPENDENT STEEL WORKERS ALLIANCE ANNOUNCE RATIFICATION
OF AMENDMENTS TO COLLECTIVE BARGAINING AGREEMENT
PEORIA, ILLINOIS . . . August 6, 2004 . . . Keystone Consolidated
Industries, Inc. (OTCBB: KESNQ) and the Independent Steel Workers Alliance
jointly announced today that the ISWA membership has overwhelmingly approved
revisions to the existing collective bargaining agreement at Keystone's
Bartonville Plant. Keystone and the ISWA leadership had previously come to a
tentative agreement relative to the revisions that required ratification by the
general membership of the ISWA. The revisions were ratified by a margin of 483
to 125. Keystone has approximately 840 ISWA members. The revisions to the
collective bargaining agreement must still be approved by the Bankruptcy Court
in Milwaukee before they become effective.
Randy Beck, President of the ISWA, said: "The ISWA members have worked hard
to keep the Bartonville Plant open and operating efficiently despite Keystone's
financial difficulties during the past months. The ratification vote sends a
clear message to Keystone's customers that the ISWA intends to do whatever it
can to keep the Bartonville Plant open and products delivered on time."
Vic Stirnaman, Director - Human Resources of Keystone, said: "We are
extremely pleased with ratification of the agreement's revisions by the ISWA
membership. The revised collective bargaining agreement is a major step forward
in the process of formulating a reorganization plan that Keystone intends to
file with the Bankruptcy Court in the near future. If ultimately confirmed by
the Bankruptcy Court, such a plan would enable the Company to complete a
successful reorganization and meet its goal to emerge from bankruptcy by the end
of the year."
The revised agreement provides for certain concessions related primarily to
healthcare coverage as well as new rights for ISWA members. Details of the
contract revisions are included in a motion that was jointly filed by Keystone
and the ISWA in Bankruptcy Court. Keystone expects the motion to be heard by the
Bankruptcy Court on August 12, 2004.
As provided by the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, the Company cautions that statements in this
Release relating to matters that are not historical facts are forward-looking
statements that represent management's beliefs and assumptions based on
currently available information. Forward-looking statements can be identified 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
such forward-looking statements are reasonable, it cannot give any assurances
that these expectations will prove to be correct. Such statements by their
nature involve substantial risks and uncertainties that could significantly
impact expected results, and actual future results could differ materially from
those described in such forward-looking statements. While it is not possible to
identify all factors, Keystone continues to face many risks and uncertainties.
Among the factors that could cause actual future results to differ materially
are the risks and uncertainties discussed in this Release and those described
from time to time in the Company's other filings with the Securities and
Exchange Commission including, but not limited to:
o Future supply and demand for the Company's products (including
cyclicality thereof),
o Customer inventory levels,
o Changes in raw material and other operating costs (such as ferrous
scrap and energy)
o General economic conditions,
o Competitive products and substitute products,
o Changes in customer and competitor strategies,
o The impact of pricing and production decisions,
o The possibility of labor disruptions,
o Environmental matters (such as those requiring emission and discharge
standards for existing and new facilities),
o Government regulations and possible changes therein,
o Significant increases in the cost of providing medical coverage to
employees and retirees,
o The ability to successfully obtain reductions in the Company's
operating costs, including achieving relief from the current
provisions of agreements relative to healthcare with certain retiree
groups,
o The ability of the Company to successfully renegotiate the terms of
certain of its indebtedness,
o The ultimate resolution of pending litigation,
o International trade policies of the United States and certain foreign
countries,
o A successful reorganization and exit from the bankruptcy process,
o Any possible future litigation, and
o Other risks and uncertainties as discussed in this Release.
Should one or more of these risks materialize (or the consequences of such
a development worsen), or should 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 new information, future events
or otherwise.
Keystone Consolidated Industries, Inc. is headquartered in Dallas, Texas.
The company is a leading manufacturer and distributor of fencing and wire
products, wire rod, industrial wire, nails and construction products for the
agricultural, industrial, construction, original equipment markets and the
retail consumer. Keystone's common stock is traded on the OTC Bulletin Board
(Symbol: KESNQ). Up to date information concerning the bankruptcy case, copies
of Bankruptcy Court filings and orders issued by the Bankruptcy Court may be
found at http://www.kccllc.com .
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