Keystone Consolidated Industries, Inc. reported operating income before pension and other postretirement benefit (OPEB) credits for the second quarter of 2012 of $8.8 million, as compared to $10.0 million in the second quarter of 2011. This decline in operating results was primarily due to higher accrued incentive compensation expense at Keystone’s largest segment, severance and related costs at another segment and higher insurance costs, partially offset by lower utility costs and better yield at the Company’s largest segment.

Net income for the second quarter of 2012 was $7.3 million as compared to net income of $9.7 million in the second quarter of 2011. The decrease in net income was primarily due to a $2.9 million lower defined benefit pension credit during the second quarter of 2012 and the lower operating income before pension and OPEB credits as discussed above.

Primarily due to a $45 million decrease in Keystone’s pension plans’ assets as well as a 101 basis point reduction in the applicable discount rate during 2011, the company currently expects to record a defined benefit pension credit of only $7.6 million during 2012 as compared to the $24.4 million defined benefit pension credit it recorded during 2011. Accordingly, Keystone recorded a defined benefit pension credit of $1.9 million during the second quarter of 2012 as compared to the $4.8 million credit recorded during the second quarter of 2011.