1
Exhibit 99(e)
POSCO HULS CO., LTD.
Statements of Cash Flows
Years ended December 31, 1998, 1997 and 1996
(in thousands of U.S. dollars)
- --------------------------------------------------------------------------------------------------------------------------
1998 1997 1996
- --------------------------------------------------------------------------------------------------------------------------
Cash flows from operating activities:
Net earnings (loss) $ (31,989) 5,970 57,025
Adjustments to reconcile net earnings (loss) to cash
provided by operating activities:
Foreign translation loss (gain), net 45 658 11,631
Loss on disposition of fixed assets, net 45 486 2,392
Depreciation and amortization 39,942 69,574 59,723
Provision for retirement and severance benefits 1,930 3,039 3,103
Contribution to National Pension Fund (423) (287) (223)
Payment for retirement and severance benefits (197) (352) (304)
Decrease (increase) in notes and accounts receivable 8,302 (8,164) (7,927)
Decrease (increase) in prepaid expenses and
other current assets 614 (1,232) 1,202
Decrease (increase) in inventories 10,913 (9,965) (27,646)
Increase (decrease) in trade notes and accounts payable 2,618 3,273 (639)
Increase (decrease) in accrued expenses and
other current liabilities (66) (685) 1,914
Other, net 482 118 579
- --------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 32,216 62,433 100,830
- --------------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Additions to fixed assets (12,720) (39,020) (65,032)
Purchase of marketable securities (5,494) - (3,714)
Proceeds from sale of fixed assets 432 380 30
Proceeds from disposition of marketable securities 4,731 2,518 232
Increase in investments, other assets and deferred charges (1,744) (2,159) (7,499)
- --------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (14,795) (38,281) (75,983)
- --------------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
Proceeds from bank overdraft and short-term borrowings 13,815 14,427 20,031
Repayments of bank overdraft and short-term borrowings (20,863) (2,245) (18,004)
Proceeds from issuance of bonds, net of discounts 56,818 - -
Proceeds from long-term debt 2,300 26,356 36,922
Repayment of long-term debt (43,623) (41,138) (48,873)
Payment of dividends - (28,156) -
Increase (decrease) in accounts payable - other (4,512) 3,123 (6,679)
- --------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities 3,935 (27,633) (16,603)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash
equivalents 21,356 (3,481) 8,244
Effect of changes in exchange rates 18,475 (17,647) (3,357)
Cash and cash equivalents at beginning of year 20,217 41,345 36,458
- --------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of year $ 60,048 20,217 41,345
=========================================================================================================================
Supplemental disclosure of cash flow information: Cash paid during the year for:
Income taxes $ 795 1,772 3,233
Interest 16,979 2,059 18,487
=========================================================================================================================
Supplemental schedule of non-cash investing and financing activities:
Capital lease obligations incurred and additions to
leased equipment $ - - 15,712
=========================================================================================================================
See accompanying notes to financial statements.