1 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) November 30, 1995 ------------------------- THE DURIRON COMPANY, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) NEW YORK 0-325 31-0267900 - ---------------------------- --------- ----------------- (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 3100 Research Boulevard, Dayton, OH 45420 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (513) 476-6100 ------------------ - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report.) ================================================================================ 1 of 17 Pages 2 Item 2. Acquisition or Disposition of Assets. - ------ ------------------------------------ At a Special Meeting of Shareholders held on November 30, 1995, the shareholders of The Duriron Company, Inc. (the "Company") approved the Company's acquisition of Durametallic Corporation, a Michigan corporation ("Durametallic") by means of a merger of Wolverine Acquisition Corp., a wholly-owned subsidiary of the Company, with and into Durametallic. Also at a Special Meeting of Shareholders held on November 30, 1995, the shareholders of Durametallic approved the merger. On November 30, 1995, immediately following the Special Meetings of Shareholders of Durametallic and the Company, a Certificate of Merger effecting the merger was filed with the State of Michigan, and Durametallic became a wholly-owned subsidiary of the Company. Pursuant to the terms of the merger, shareholders of Durametallic are entitled to receive 3.1132 shares of the Company's Common Stock, $1.25 par value per share, for each share of Common Stock, $5.00 par value per share, of Durametallic owned by them. The Company will issue approximately 5,345,000 shares of its Common Stock in the exchange. The remaining information required by this Item has been previously reported in the Company's Registration Statement on Form S-4 (Registration No. 33-62527). Item 7. Financial Statements and Exhibits. - ------ --------------------------------- (a) Financial statements of businesses acquired. See Financial Statement Index for a list of interim financial statements of Durametallic which are being filed with this Report on Form 8- K. The following financial statements of Durametallic were filed as part of the Company's Registration Statement on Form S-4 (Registration No. 33-62527) and are incorporated into this Report on Form 8-K by reference: Report of Independent Auditors. Consolidated Balance Sheets at December 31, 1994 and 1993. Consolidated Statements of Income for the years ended December 31, 1994, 1993 and 1992. Consolidated Statements of Stockholders' Equity for the years ended December 31, 1994, 1993 and 1992. Consolidated Statements of Cash Flows for the years ended December 31, 1994, 1993 and 1992. Notes to Consolidated Financial Statements. - 2 - 3 (b) Pro forma financial information. See Financial Statement Index for a list of the unaudited pro forma condensed consolidated financial statements of the Company and Durametallic which are being filed with this Report on Form 8-K. The following unaudited pro forma condensed combined financial statements of the Company and Durametallic were filed as part of the Company's Registration Statement on Form S-4 (Registration No. 33-62527) and are incorporated into this Report on Form 8-K by reference: Unaudited Pro Forma Condensed Combined Statement of Operations for the year ended December 31, 1994. Unaudited Pro Forma Condensed Combined Statement of Operations for the year ended December 31, 1993. Unaudited Pro Forma Condensed Combined Statement of Income for the year ended December 31, 1992. Notes to Pro Forma Condensed Combined Financial Statements. (c) Exhibits. See Exhibit Index. Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE DURIRON COMPANY, INC. By /s/ Ronald F. Shuff --------------------------- Date: December 14, 1995 Ronald F. Shuff, Vice President, Secretary and General Counsel - 3 - 4 FINANCIAL STATEMENT INDEX ------------------------- - 4 -
Page ---- Interim Financial Statements of Durametallic Corporation: Unaudited Consolidated Balance Sheet at September 30, 1995. 5 Unaudited Consolidated Statements of Income for the nine months ended September 30, 1995 and 1994. 6 Unaudited Consolidated Statements of Income for the quarters ended September 30, 1995 and 1994. 7 Unaudited Consolidated Statements of Stockholders' Equity for the nine months ended September 30, 1995 and 1994. 8 Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 1995 and 1994. 9 Notes to Unaudited Consolidated Financial Statements. 10 Pro forma Condensed Consolidated Financial Statements of The Duriron Company, Inc. and Durametallic Corporation: Unaudited Pro Forma Condensed Balance Sheet at September 30, 1995. 12 Unaudited Pro Forma Condensed Statement of Operations for the nine months ended September 30, 1995. 13 Unaudited Pro Forma Condensed Statement of Operations for the nine months ended September 30, 1994. 14 Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements. 15 5 DURAMETALLIC CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET UNAUDITED (DOLLARS IN THOUSANDS) See accompanying notes to consolidated financial statements. - 5 -
SEPTEMBER 30, 1995 ------------------ ASSETS Current assets: Cash and cash equivalents..................................................... $ 3,482 Accounts receivable, less allowance for doubtful accounts of $568 in 1995..... 23,729 Inventories................................................................... 18,019 Prepaid expenses and other.................................................... 2,673 ------- Total current assets.................................................. 47,903 ------- Investments in affiliated companies............................................. 4,564 Property, plant and equipment, net.............................................. 23,959 Costs in excess of net assets of acquired subsidiaries, net of accumulated amortization...................................................... 9,352 Other assets.................................................................... 7,158 ------- $92,936 ======= LIABILITIES Current liabilities: Notes payable, banks.......................................................... $ 4,075 Current maturities of long-term debt.......................................... 427 Accounts payable.............................................................. 6,866 Income taxes payable.......................................................... 871 Accrued compensation.......................................................... 6,200 Accrued profit sharing contributions.......................................... 2,025 Other accrued liabilities..................................................... 3,062 ------- Total current liabilities............................................. 23,526 ------- Long-term debt, less current maturities......................................... 16,617 Deferred income taxes and other liabilities..................................... 1,047 Minority interest............................................................... 928 Postretirement and postemployment benefits...................................... 10,472 STOCKHOLDERS' EQUITY Common stock.................................................................... 8,584 Paid-in capital................................................................. 40 Retained earnings............................................................... 32,180 Cumulative translation adjustment............................................... (446) Stock subscriptions receivable.................................................. (12) ------- 40,346 ------- $92,936 ======= 6 DURAMETALLIC CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME UNAUDITED (DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994 See accompanying notes to consolidated financial statements. - 6 -
1995 1994 --------- --------- Net sales............................................................. $ 97,139 $ 85,207 Cost of goods sold.................................................... 50,214 42,397 --------- --------- Gross profit................................................ 46,925 42,810 --------- --------- Operating expenses: Engineering......................................................... 5,833 4,837 Selling............................................................. 17,903 16,442 Administration...................................................... 13,476 12,691 --------- --------- 37,212 33,970 --------- --------- Profit from operations................................................ 9,713 8,840 Other (expense), net.................................................. 219 (280) --------- --------- Income from continuing operations, before income taxes.............. 9,932 8,560 Provision for income taxes............................................ 3,815 3,254 --------- --------- Net Income.................................................. $ 6,117 $ 5,306 ========= ========= Earnings per common share............................................. $ 3.56 $ 2.93 ========= ========= Average common shares outstanding..................................... 1,717,000 1,811,000 ========= ========= 7 DURAMETALLIC CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME UNAUDITED (DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) FOR THE QUARTERS ENDED SEPTEMBER 30, 1995 AND 1994 See accompanying notes to consolidated financial statements. - 7 -
1995 1994 --------- --------- Net sales............................................................. $ 33,251 $ 28,629 Cost of goods sold.................................................... 17,388 14,118 ---------- ---------- Gross profit........................................................ 15,863 14,511 ---------- ---------- Operating expenses: Engineering......................................................... 2,045 1,664 Selling............................................................. 6,114 5,337 Administration...................................................... 4,762 4,348 ---------- ---------- 12,921 11,349 ---------- ---------- Profit from operations.............................................. 2,942 3,162 Other (expense), net.................................................. 499 (83) ---------- ---------- Income from continuing operations, before income taxes.............. 3,441 3,079 Provision for income taxes............................................ 1,265 1,197 ---------- ---------- Net Income....................................................... $ 2,176 $ 1,882 ========== ========== Earnings per common share............................................. $ 1.26 $ 1.09 ---------- ---------- Average common shares outstanding..................................... 1,717,000 1,718,000 ========== ========== 8 DURAMETALLIC CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY UNAUDITED (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994 See accompanying notes to consolidated financial statements. - 8 -
CUMULATIVE STOCK COMMON PAID-IN RETAINED TRANSLATION SUBSCRIPTIONS STOCK CAPITAL EARNINGS ADJUSTMENT RECEIVABLE TOTAL ------ ------- -------- ---------- ------------- ------- Balances at December 31, 1993........ $9,255 $ 917 $ 24,881 $ (745) $ (27) $34,281 Net income........................... -- -- 5,306 -- -- 5,306 Cash dividends paid, $0.54 per share.............................. -- -- (1,003) -- -- (1,003) Purchase and retirement of common stock.............................. (705) (1,066) (3,098) -- -- (4,869) Translation adjustments.............. -- -- -- 483 -- 483 Issuance of common stock: Deferred compensation plan......... 8 47 -- -- -- 55 Exercise of stock options.......... 27 102 -- -- -- 129 ------ ------- ------- ----- ---- ------- Balances at September 30, 1994....... $8,585 $ 0 $ 26,086 $ (262) $ (27) $34,382 ====== ======= ======= ===== ==== ======= Balances at December 31, 1994........ $8,582 -- $ 27,113 $ (405) $ (16) $35,274 Net income........................... -- -- 6,117 -- -- 6,117 Cash dividends paid, $0.60 per share.............................. -- -- (1,029) -- -- (1,029) Purchase and retirement of common stock.............................. (6) -- (21) -- -- (27) Translation adjustments.............. -- -- -- (41) -- (41) Issuance of common stock: Deferred compensation plan......... 8 40 -- -- -- 48 Payments of stock subscriptions...... -- -- -- -- 4 4 ------ ------- ------- ----- ---- ------- Balances at September 30, 1995....... $8,584 $ 40 $ 32,180 $ (446) $ (12) $40,346 ====== ======= ======= ===== ==== ======= 9 DURAMETALLIC CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED (DOLLARS IN THOUSANDS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994 See accompanying notes to consolidated financial statements. - 9 -
1995 1994 ------- ------- Operating activities: Net income............................................................. $ 6,117 $ 5,306 Charges (credits) to income not requiring the use of cash: Depreciation and amortization....................................... 3,308 2,621 Deferred taxes...................................................... (76) 268 (Gain) on disposition of assets..................................... (22) (46) Minority interests.................................................. 148 121 Provisions for obsolete inventory and doubtful accounts............. 556 802 Postretirement benefits............................................. (115) 136 Equity in income of affiliates, less dividends received............. (482) (124) Exchange losses..................................................... 0 21 Issuances of common stock as compensation........................... 48 55 Changes in operating assets and liabilities: Accounts receivable................................................. (2,877) (2,568) Inventories......................................................... (4,668) 123 Prepaid expenses and other current assets........................... (375) 223 Accounts payable and accrued liabilities............................ 3,208 (667) Income taxes payable................................................ (291) 521 ------- ------- Cash provided from operating activities........................ 4,479 6,792 ------- ------- Financing activities: Net change in notes payable, banks..................................... 941 (2,492) Proceeds from long-term debt........................................... 13,521 6,928 Payment of long-term debt.............................................. (871) (4,083) Payments received on stock subscriptions............................... 4 0 Dividends paid......................................................... (1,030) (1,003) Purchase of common stock............................................... (27) (4,869) Proceeds from sale of common stock..................................... 0 129 ------- ------- Cash used for financing activities............................. 12,538 (5,390) ------- ------- Investing activities: Acquisition of Pac-Seal, net of cash.................................. (12,206) 0 Additions to property, plant, and equipment............................ (3,769) (2,389) Additions to software and patents...................................... (684) (435) Proceeds from disposition of assets.................................... 188 152 Investments in affiliated companies.................................... (213) 0 ------- ------- Cash used for investing activities............................. (16,684) (2,672) ------- ------- Effect of exchange rate changes on cash.................................. (135) (55) ------- ------- Increase (decrease) in cash and cash equivalents......................... 198 (1,325) Cash and cash equivalents at the beginning of the year................... 3,284 3,613 ------- ------- Cash and cash equivalents at the end of the period....................... $ 3,482 $ 2,288 ======= ======= Supplemental cash flow disclosures: Income taxes paid...................................................... $ 7,104 $ 2,347 ======= ======= Interest paid.......................................................... $ 442 $ 391 ======= ======= 10 DURAMETALLIC CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994 1. INTERIM INFORMATION: The financial information as of September 30, 1995, and for the three month and nine month periods ended September 30, 1994 and 1995, is derived from unaudited financial statements that, in the opinion of management, include all adjustments (consisting only of normal recurring accruals) necessary to present fairly such information. Operating results for the three months and the nine months ended September 30, 1995 are not necessarily indicative of the results that may be expected for the entire year ending December 31, 1995. 2. INVENTORY: The cost of parent company inventories stated using the LIFO method was approximately 52 percent of total inventories as of September 30, 1995. Had these inventories been valued on the FIFO method, total inventories would have been $4,653 higher than reported at September 30, 1995. 3. STOCKHOLDERS' EQUITY: There are authorized 4,500,000 shares of $5 par value common stock. Changes in the nine months ended September 30, 1995 and 1994 are reflected in the Consolidated Statements of Stockholders' Equity. At September 30, 1995, 22,666 options were available for exercise under the 1991 nonqualified stock option plan. 4. COMMITMENTS AND CONTINGENT LIABILITIES: Durametallic is a defendant in numerous lawsuits that seek to recover damages for alleged personal injury allegedly resulting from exposure to asbestos containing products manufactured and distributed by Durametallic prior to 1986. All such products were used within self-contained process equipment, and management does not believe that there was any emission of ambient asbestos fiber during the operation of this equipment. In 1994, Durametallic received approximately 3,500 new asbestos liability claims and resolved approximately 8,100 claims. During the past three years, Durametallic has resolved approximately 9,300 claims at an average of one hundred thirty-two dollars per claim. Durametallic continues to have a substantial amount of available insurance from financially solvent carriers to cover such claims. Durametallic has reviewed its policies of insurance, historical settlement amounts and the number of pending cases. Based upon such reviews, Durametallic has estimated its potential liability for such claims to be approximately $875 and $780 at September 30, 1995 and December 31, 1994, respectively. The cases are expected to be paid or dismissed within the next two years. Under terms of its insurance policies, Durametallic estimates its insurance proceeds to be approximately $875 and $780 at September 30, 1995 and December 31, 1994, respectively. The coverage for such claims, including defense costs and case resolution costs, has not been disputed by Durametallic's insurance carriers. Accordingly, the gross liability and gross insurance recovery related to these claims have been reflected in the accompanying consolidated Balance Sheets. While management understands the inherent uncertainty in litigation of this type and the possibility that past costs may not necessarily be indicative of future costs, management does not believe that these claims will have any material adverse effect on Durametallic's financial position or results of operations. Durametallic is the defendant in lawsuits and other claims in the normal course of business. Management believes that Durametallic has adequate insurance protection to cover the costs of defense, settlements or awards. - 10 - 11 UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The following unaudited pro forma condensed consolidated balance sheet as of September 30, 1995 and the pro forma condensed consolidated statements of operations for the nine months ended September 30, 1995 and 1994, give effect to the merger accounted for as a pooling of interests. This pro forma information is based on the historical consolidated financial statements of Duriron and Durametallic and their subsidiaries under the assumptions and adjustments set forth in the accompanying notes. The unaudited pro forma condensed consolidated financial statements have been prepared by the managements of Duriron and Durametallic based upon their respective historical consolidated financial statements. Pro forma per share amounts are based on a conversion ratio in the merger of 3.1132 shares of Duriron Common Stock for each Durametallic share. The pro forma condensed consolidated financial statements, which include results of operations as if the merger had been consummated on January 1, 1994, do not reflect the merger expenses expected to be incurred by Duriron and Durametallic, or any anticipated cost savings. As a result, the pro forma condensed consolidated financial condition and results of operations of Duriron as of and after the merger may not be indicative of the results that actually would have occurred if the merger had been in effect during the periods presented or which may be attained in the future. Actual performance will differ, and the differences may be material. The pro forma condensed consolidated financial statements should be read in conjunction with the historical financial statements and notes thereto of Duriron and Durametallic. - 11 - 12 THE DURIRON COMPANY, INC. AND DURAMETALLIC CORPORATION PRO FORMA CONDENSED BALANCE SHEET SEPTEMBER 30, 1995 (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) (UNAUDITED)
- 12 -September 30, 1995 ------------------------------------------------------------ Pro Forma Pro Forma Duriron Durametallic Adjustments Consolidated --------- ------------ ------------- ------------- ASSETS Current assets: Cash and cash equivalents $19,595 $3,482 $23,077 Accounts receivable 77,212 23,729 100,941 Inventories 71,194 18,019 89,213 Prepaid expenses 5,882 2,673 8,555 --------- ------------ ------------- ------------- Total current assets 173,883 47,903 0 221,786 Property, plant and equipment, at cost 194,607 50,301 244,908 Less accumulated depreciation and amortization 114,866 26,342 141,208 --------- ------------ ------------- ------------- Net property, plant and equipment 79,741 23,959 0 103,700 Intangibles and other assets 44,231 21,074 65,305 --------- ------------ ------------- ------------- Total assets $297,855 $92,936 $0 $390,791 ========= ========= ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $21,875 $6,866 $28,741 Notes payable 3,139 4,075 7,214 Income taxes 2,180 871 3,051 Accrued liabilities 28,646 11,287 4,600(5) 44,533 Long-term debt due within one year 3,982 427 4,409 --------- ------------ ------------- ------------- Total current liabilities 59,822 23,526 4,600 87,948 Long-term debt due after one year 42,414 16,617 59,031 Postretirement benefits and other deferred items 42,491 12,447 54,938 Shareholders' equity Serial preferred stock, $1.00 par value, no shares issued -- -- -- -- Common stock, $1.25 par value 23,817 8,584 (1,903)(4) 30,498 Capital in excess of par value 3,984 40 1,903 (4) 5,927 Retained earnings 123,770 32,180 (4,600)(5) 151,350 --------- ------------ ------------- ------------- 151,571 40,804 (4,600) 187,775 Foreign currency and other equity adjustments 1,557 (458) 1,099 --------- ------------ ------------- ------------- Total shareholders' equity 153,128 40,346 (4,600) 188,874 --------- ------------ ------------- ------------- Total liabilities and shareholders' equity $297,855 $92,936 $0 $390,791 ========= ============ ============= ============= See Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements. 13 THE DURIRON COMPANY, INC. AND DURAMETALLIC CORPORATION PRO FORMA CONDENSED STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) (UNAUDITED)
See Notes to Unaudited Pro Forma Condensed Cosolidated Financial Statements. - 13 -For the Nine Months Ended September 30, 1995 --------------------------------------------------------------- Pro Forma Pro Forma Duriron Durametallic Adjustments Consolidated ------------ ------------ ------------ ------------ Net sales $290,659 $97,139 ($1,125)(3) $386,673 Costs and expenses: Cost of sales 181,428 50,214 (7)(1,3) 231,635 Selling and administrative 68,618 31,379 (813)(2) 99,184 Research, engineering and development 6,432 5,833 (1,118)(1) 11,147 Interest 3,070 673 3,743 Other, net 1,587 (892) 813 (2) 1,508 ------------ ------------ ------------ ------------ 261,135 87,207 (1,125) 347,217 Earnings before income taxes 29,524 9,932 0 39,456 Provision for income taxes 10,915 3,815 14,730 ------------ ------------ ------------ ------------ Net earnings $18,609 $6,117 $0 $24,726 ============ ============ ============ ============ Earnings per share 0.97 3.56 1.00 Average shares outstanding 19,278 1,717 24,622 14 THE DURIRON COMPANY, INC. AND DURAMETALLIC CORPORATION PRO FORMA CONDENSED STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1994 (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA) (UNAUDITED)
See Notes to Unaudited Pro Forma Condensed Cosolidated Financial Statements. - 14 -For the Nine Months Ended September 30, 1994 --------------------------------------------------------------- Pro Forma Pro Forma Duriron Durametallic Adjustments Consolidated ------------ ------------ ------------ ------------ Net sales $255,502 $85,207 ($1,079)(3) $339,630 Costs and expenses: Cost of sales 160,898 42,397 (164)(1,3) 203,131 Selling and administrative 62,980 29,133 (757)(2) 91,356 Research, engineering and development 7,066 4,837 (915)(1) 10,988 Interest 3,106 435 3,541 Other, net 1,647 (155) 757 (2) 2,249 ------------ ------------ ------------ ------------ 235,697 76,647 (1,079) 311,265 Earnings before income taxes 19,805 8,560 0 28,365 Provision for income taxes 7,420 3,254 10,674 ------------ ------------ ------------ ------------ Net earnings $12,385 $5,306 $0 $17,691 ============ ============ ============ ============ Earnings per share 0.65 2.93 0.71 Average shares outstanding 19,148 1,811 24,785 15 THE DURIRON COMPANY, INC. AND DURAMETALLIC CORPORATION Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements (1) Certain Durametallic research and development expenses have been reclassified to cost of sales to reflect consistent accounting policies on a pro forma combined basis. (2) Durametallic management incentive compensation and goodwill amortization have been reclassified from selling and administrative expenses to other, net costs and expenses to reflect consistent accounting policies on a pro forma combined basis. (3) To eliminate intercompany transactions between Durametallic and Duriron. (4) The pro forma condensed consolidated financial statements reflect the issuance of 5,344,868 shares of Duriron Common Stock in exchange for all the outstanding Durametallic Common Stock. This reflects a 3.1132 exchange ratio of Duriron for Durametallic shares, based upon a market value of $27.40 for a share of Duriron Common Stock. (5) Total costs to be incurred by Duriron and Durametallic in connection with the merger are estimated at $4.6 million after tax. Approximately $3.3 million of these costs relate to financial advisory, legal, accounting, printing and other related services. These non-tax deductible costs will be charged against income of the combined company in the period of consummation. The remaining costs of $1.3 million after tax include payments to be made to Durametallic's chief executive officer and its chief financial officer upon their retirement in 1996 and will be charged against income of the combined company in the period of consummation. The liabilities associated with these costs have been applied to reduce shareholders' equity in the pro forma financial statements. The costs related to the merger through September 30, 1995 were not material to pro forma condensed net income. - 15 - 16 EXHIBIT INDEX ------------- EXHIBIT NO. AND DESCRIPTION (2) Plan of acquisition, reorganization, arrangement, liquidation or succession. 2.1 Agreement and Plan of Merger, dated as of September 11, 1995, among The Duriron Company, Inc., Wolverine Acquisition Corp. and Durametallic Corporation (included as Annex A to the Joint Proxy Statement/Prospectus constituting a part of the Company's Registration Statement on Form S-4 (Registration No. 33-62527) and incorporated herein by reference). (23) Consents of experts and counsel. 23.1 Consent of KPMG Peat Marwick LLP. - 16 -
1 EXHIBIT 23.1 INDEPENDENT AUDITOR'S CONSENT The Board of Directors Durametallic Corporation We consent to the incorporation by reference in the Form 8-K of The Duriron Company, Inc., of our report dated February 17, 1995, relating to the consolidated balance sheets of Durametallic Corporation as of December 31, 1994 and 1993 and the related consolidated statements of Income, stockholders' equity and cash flows for each of the years in the three year period ended December 31, 1994, which report appears in the Registration Statement on Form S-4 (No. 33-62527) of The Duriron Company, Inc. Our report covering the December 31, 1993 financial statements refers to a change in the method of accounting for income taxes, to a change in the method of accounting for post-retirement benefits other than pensions, and to a change in the method of accounting for post-employment benefits. We also consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 33-16406), Form S-3 (No. 33-33820), Form S-8 (No. 2-66089), Form S-8 (33-28497), and Form S-8 (No. 33-72372) of The Duriron Company, Inc., of our report referred to in the first paragraph above, dated February 17, 1995, which report appears in the Registration Statement on Form S-4 (No. 33-62527) of The Duriron Company, Inc. and is incorporated by reference into the Form 8-K of The Duriron Company, Inc., dated November 30, 1995. KPMG Peat Marwick LLP Detroit, Michigan December 14, 1995 - 17 -