##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the quarterly period ended December 31, 2008
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission
    
    Name of Registrant, State of Incorporation, Address of
    
    IRS EmployerFile No.
    
    Principal Executive Offices, and Telephone No.
    
    Identification No.000-52681
    
    Neenah Enterprises, Inc.
    
    25-1618281(a Delaware Corporation)2121 Brooks AvenueP.O. Box 729Neenah, WI 54957(920) 725-7000333-28751
    
    Neenah Foundry Company
    
    39-1580331(a Wisconsin Corporation)2121 Brooks AvenueP.O. Box 729Neenah, WI 54957(920) 725-7000
 þ o
  Neenah Enterprises, Inc.
    
    Neenah Foundry CompanyLarge accelerated filer
    
    o
    
    oAccelerated filer
    
    o
    
    oNon-accelerated filer
    
    o
    
    þSmaller reporting company
    
    þ
    
    o
  Neenah Enterprises, Inc.
    
    Yes o No þNeenah Foundry Company
    
    Yes o No þ
 þ o
 Neenah Enterprises, Inc.
    
    As of January 31, 2009, Neenah Enterprises, Inc.
had 14,625,326 shares of common stock
outstanding.Neenah Foundry Company
    
    As of January 31, 2009, Neenah Foundry Company
had 1,000 shares of common stock outstanding, all
of which were owned by NFC Castings, Inc, a
wholly owned subsidiary of Neenah Enterprises,
Inc.




---



##### 



NEENAH ENTERPRISES, INC.
 NEENAH FOUNDRY COMPANY
   PagePart I. Financial InformationItem 1. Financial StatementsNeenah Enterprises, Inc.Condensed consolidated balance sheets  Neenah Enterprises, Inc. as of December 31, 2008
and September 30, 2008
    
    
    3Condensed consolidated statements of operations  Neenah Enterprises, Inc. for the three
months ended December 31, 2008 and 2007
    
    
    4Condensed consolidated statements of cash flows  Neenah Enterprises, Inc. for the three
months ended December 31, 2008 and 2007
    
    
    5Notes to condensed consolidated financial statements  December 31, 2008
    
    
    6Neenah Foundry CompanyCondensed consolidated balance sheets  Neenah Foundry Company as of December 31, 2008
and September 30, 2008
    
    
    10Condensed consolidated statements of operations  Neenah Foundry Company for the three
months ended December 31, 2008 and 2007
    
    
    11Condensed consolidated statements of cash flows  Neenah Foundry Company for the three
months ended December 31, 2008 and 2007
    
    
    12Notes to condensed consolidated financial statements  December 31, 2008
    
    
    13Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    22Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    28Item 4T. Controls and Procedures
    
    
    28Part II. Other InformationItem 1. Legal Proceedings
    
    
    29Item 4. Submission of Matters to a Vote of Security Holders
    
    
    29Item 6. Exhibits
    
    
    30Signatures
    
    
    31EX-31.1EX-31.2EX-31.3EX-31.4EX-32.1EX-32.2
  2




---



##### Table of Contents



NEENAH ENTERPRISES, INC.
 
 . FINANCIAL INFORMATION
 
 Financial Statements
 
   December 31,
    
    
    September 30,2008
    
    
    2008(1)(Unaudited)AssetsCurrent assets:Cash
    
    $
    
    
    
    $
    Accounts receivable, net
    
    
    60,167
    
    
    
    92,489Inventories
    
    
    73,139
    
    
    
    71,015Refundable income taxes
    
    
    7,363
    
    
    
    7,363Deferred income taxes
    
    
    4,610
    
    
    
    4,610Other current assets
    
    
    4,116
    
    
    
    4,486Total current assets
    
    
    149,395
    
    
    
    179,963Property, plant and equipment
    
    
    230,355
    
    
    
    222,868Less accumulated depreciation
    
    
    69,134
    
    
    
    62,628161,221
    
    
    
    160,240Deferred financing costs, net
    
    
    2,886
    
    
    
    3,000Identifiable intangible assets, net
    
    
    46,405
    
    
    
    48,218Goodwill
    
    
    88,136
    
    
    
    88,136Other assets
    
    
    7,131
    
    
    
    6,942$
    455,174
    
    
    $
    486,499Liabilities and stockholders equityCurrent liabilities:Accounts payable
    
    $
    22,433
    
    
    $
    39,452Accrued wages and employee benefits
    
    
    8,702
    
    
    
    12,525Accrued interest
    
    
    192
    
    
    
    5,572Accrued interest  related party
    
    
    2,813
    
    
    
    2,344Other accrued liabilities
    
    
    2,821
    
    
    
    2,669Current portion of long-term debt
    
    
    70,131
    
    
    
    59,683Current portion of capital lease obligations
    
    
    71
    
    
    
    71Total current liabilities
    
    
    107,163
    
    
    
    122,316Long-term debt
    
    
    225,000
    
    
    
    225,000Long-term debt  related party
    
    
    75,000
    
    
    
    75,000Capital lease obligations
    
    
    1,724
    
    
    
    400Deferred income taxes
    
    
    23,206
    
    
    
    29,065Postretirement benefit obligations
    
    
    8,091
    
    
    
    8,052Other liabilities
    
    
    11,553
    
    
    
    11,622Total liabilities
    
    
    451,737
    
    
    
    471,455Commitments and contingenciesStockholders equity:Preferred stock, par value $0.01 per share
 1,000,000 shares authorized, no shares
issued and outstanding
    
    
    
    
    
    
    Common stock, par value $0.01 per share 
35,000,000 shares authorized 14,625,326
issued and outstanding at December 31, 2008
and September 30, 2008
    
    
    146
    
    
    
    146Capital in excess of par value
    
    
    6,227
    
    
    
    6,132Retained earnings (accumulated deficit)
    
    
    (3,163
    )
    
    
    8,539Accumulated other comprehensive income
    
    
    227
    
    
    
    227Total stockholders equity
    
    
    3,437
    
    
    
    15,044$
    455,174
    
    
    $
    486,499
  
 (1)
    
    The balance sheet as of September 30, 2008 has been derived from the
audited financial statements as of that date but does not include all
of the information and footnotes required by U.S. generally accepted
accounting principles for complete financial statements. 3




---



##### Table of Contents



NEENAH ENTERPRISES, INC.
 
 
 Three months endedDecember 31,2008
    
    
    2007Net sales
    
    $
    97,635
    
    
    $
    101,225Cost of sales
    
    
    95,311
    
    
    
    87,692Gross profit
    
    
    2,324
    
    
    
    13,533Selling, general and administrative expenses
    
    
    9,197
    
    
    
    8,983Restructuring costs
    
    
    
    
    
    
    1,227Amortization of intangible assets
    
    
    1,812
    
    
    
    1,782Gain on disposal of equipment
    
    
    
    
    
    
    (1
    )Total operating expenses
    
    
    11,009
    
    
    
    11,991Operating income (loss)
    
    
    (8,685
    )
    
    
    1,542Interest expense
    
    
    (6,340
    )
    
    
    (5,282
    )Interest expense  related party
    
    
    (2,344
    )
    
    
    (2,344
    )Loss before income taxes
    
    
    (17,369
    )
    
    
    (6,084
    )Income tax benefit
    
    
    (5,667
    )
    
    
    (2,305
    )Net loss
    
    $
    (11,702
    )
    
    $
    (3,779
    )Loss per share:Basic
    
    $
    (0.80
    )
    
    $
    (0.28
    )Diluted
    
    $
    (0.80
    )
    
    $
    (0.28
    )Shares used in the computation of loss
per share:Basic
    
    
    14,600
    
    
    
    13,680Diluted
    
    
    14,600
    
    
    
    13,680
  4




---



##### Table of Contents



NEENAH ENTERPRISES, INC.
 
 
 Three months endedDecember 31,2008
    
    
    2007Operating activitiesNet loss
    
    $
    (11,702
    )
    
    $
    (3,779
    )Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization
    
    
    8,448
    
    
    
    5,915Amortization of deferred financing costs
    
    
    114
    
    
    
    114Stock-based compensation
    
    
    95
    
    
    
    41Changes in operating assets and liabilities
    
    
    (1,111
    )
    
    
    (3,009
    )Net cash used in operating activities
    
    
    (4,156
    )
    
    
    (718
    )Investing activitiesPurchase of property, plant and equipment
    
    
    (6,228
    )
    
    
    (14,250
    )Net cash used in investing activities
    
    
    (6,228
    )
    
    
    (14,250
    )Financing activitiesNet change in revolver balance
    
    
    10,448
    
    
    
    15,016Payments on capital lease obligations
    
    
    (64
    )
    
    
    (51
    )Proceeds from exercise of stock warrants
    
    
    
    
    
    
    3Net cash provided by financing activities
    
    
    10,384
    
    
    
    14,968Increase (decrease) in cash
    
    
    
    
    
    
    Cash at beginning of period
    
    
    
    
    
    
    Cash at end of period
    
    $
    
    
    
    $
    
  5




---



##### Table of Contents



NEENAH ENTERPRISES, INC.
 
 
 Note 1  Basis of Presentation
  Note 2  Recent Accounting Pronouncements
       6




---



##### Table of Contents



Note 3  Inventories
  December 31,
    
    
    September 30,2008
    
    
    2008Raw materials
    
    $
    8,765
    
    
    $
    9,899Work in process and finished goods
    
    
    47,101
    
    
    
    43,901Supplies
    
    
    17,273
    
    
    
    17,215$
    73,139
    
    
    $
    71,015
 Note 4  Employee Benefit Plans
 Components of Net Periodic Benefit Cost
  Pension Benefits
    
    
    Postretirement BenefitsThree months ended December 31,
    
    
    Three months ended December 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Service cost
    
    $
    370
    
    
    $
    461
    
    
    $
    78
    
    
    $
    55Interest cost
    
    
    1,095
    
    
    
    1,097
    
    
    
    131
    
    
    
    81Expected return on plan assets
    
    
    (1,235
    )
    
    
    (1,364
    )
    
    
    
    
    
    
    Amortization of prior service cost (credit)
    
    
    7
    
    
    
    4
    
    
    
    40
    
    
    
    (13
    )Recognized net actuarial gain
    
    
    (3
    )
    
    
    
    
    
    
    (50
    )
    
    
    (53
    )Net periodic benefit cost
    
    $
    234
    
    
    $
    198
    
    
    $
    199
    
    
    $
    70
 Employer Contributions
  7




---



##### Table of Contents



Note 5  Closure of Kendallville
  Note 6  Cost Reduction Actions
  Note 7  Acquisition
   Accounts receivable
    
    $
    827Inventories
    
    
    561Other current assets
    
    
    13Property, plant and equipment
    
    
    1,665Identifiable intangible assets
    
    
    410Goodwill
    
    
    1,437Current liabilities
    
    
    (564
    )$
    4,349
 Note 8  Contingencies
   Note 9  Subsequent Event
  8




---



##### Table of Contents



Note 10  Segment Information
   Three months endedDecember 31,2008
    
    
    2007Revenues from external customers:Castings
    
    $
    87,280
    
    
    $
    90,097Forgings
    
    
    8,145
    
    
    
    8,998Other
    
    
    4,348
    
    
    
    4,502Elimination of intersegment revenues
    
    
    (2,138
    )
    
    
    (2,372
    )$
    97,635
    
    
    $
    101,225Net loss:Castings
    
    $
    (11,012
    )
    
    $
    (3,660
    )Forgings
    
    
    (542
    )
    
    
    (188
    )Other
    
    
    (313
    )
    
    
    (9
    )Elimination of intersegment loss
    
    
    165
    
    
    
    78$
    (11,702
    )
    
    $
    (3,779
    )
 December 31,
    
    
    September 30,2008
    
    
    2008Total assets:Castings
    
    $
    440,131
    
    
    $
    471,509Forgings
    
    
    25,162
    
    
    
    26,324Other
    
    
    11,762
    
    
    
    11,187Elimination of intersegment assets
    
    
    (21,881
    )
    
    
    (22,521
    )$
    455,174
    
    
    $
    486,499
 9




---



##### Table of Contents



NEENAH FOUNDRY COMPANY
 
   December 31,
    
    
    September 30,2008
    
    
    2008(1)(Unaudited)AssetsCurrent assets:Cash
    
    $
    
    
    
    $
    Accounts receivable, net
    
    
    60,167
    
    
    
    92,489Inventories
    
    
    73,139
    
    
    
    71,015Refundable income taxes
    
    
    7,363
    
    
    
    7,363Deferred income taxes
    
    
    4,610
    
    
    
    4,610Other current assets
    
    
    4,116
    
    
    
    4,486Total current assets
    
    
    149,395
    
    
    
    179,963Property, plant and equipment
    
    
    230,355
    
    
    
    222,868Less accumulated depreciation
    
    
    69,134
    
    
    
    62,628161,221
    
    
    
    160,240Deferred financing costs, net
    
    
    2,886
    
    
    
    3,000Identifiable intangible assets, net
    
    
    46,405
    
    
    
    48,218Goodwill
    
    
    88,136
    
    
    
    88,136Other assets
    
    
    7,131
    
    
    
    6,942$
    455,174
    
    
    $
    486,499Liabilities and stockholders equityCurrent liabilities:Accounts payable
    
    $
    22,433
    
    
    $
    39,452Accrued wages and employee benefits
    
    
    8,702
    
    
    
    12,525Accrued interest
    
    
    192
    
    
    
    5,572Accrued interest  related party
    
    
    2,813
    
    
    
    2,344Other accrued liabilities
    
    
    3,121
    
    
    
    2,969Current portion of long-term debt
    
    
    70,131
    
    
    
    59,683Current portion of capital lease obligations
    
    
    71
    
    
    
    71Total current liabilities
    
    
    107,463
    
    
    
    122,616Long-term debt
    
    
    225,000
    
    
    
    225,000Long-term debt  related party
    
    
    75,000
    
    
    
    75,000Capital lease obligations
    
    
    1,724
    
    
    
    400Deferred income taxes
    
    
    23,206
    
    
    
    29,065Postretirement benefit obligations
    
    
    8,091
    
    
    
    8,052Other liabilities
    
    
    11,553
    
    
    
    11,622Total liabilities
    
    
    452,037
    
    
    
    471,755Commitments and contingenciesStockholders equity:Common stock, par value $100 per share 
1,000 shares authorized, issued, and
outstanding
    
    
    100
    
    
    
    100Capital in excess of par value
    
    
    5,973
    
    
    
    5,878Retained earnings (accumulated deficit)
    
    
    (3,163
    )
    
    
    8,539Accumulated other comprehensive income
    
    
    227
    
    
    
    227Total stockholders equity
    
    
    3,137
    
    
    
    14,744$
    455,174
    
    
    $
    486,499
  
 (1)
    
    The balance sheet as of September 30, 2008 has been derived from the
audited financial statements as of that date but does not include all
of the information and footnotes required by U.S. generally accepted
accounting principles for complete financial statements. 10




---



##### Table of Contents



NEENAH FOUNDRY COMPANY
 
  
 Three months endedDecember 31,2008
    
    
    2007Net sales
    
    $
    97,635
    
    
    $
    101,225Cost of sales
    
    
    95,311
    
    
    
    87,692Gross profit
    
    
    2,324
    
    
    
    13,533Selling, general and administrative expenses
    
    
    9,197
    
    
    
    8,983Restructuring costs
    
    
    
    
    
    
    1,227Amortization of intangible assets
    
    
    1,812
    
    
    
    1,782Gain on disposal of equipment
    
    
    
    
    
    
    (1
    )Total operating expenses
    
    
    11,009
    
    
    
    11,991Operating income (loss)
    
    
    (8,685
    )
    
    
    1,542Interest expense
    
    
    (6,340
    )
    
    
    (5,282
    )Interest expense  related party
    
    
    (2,344
    )
    
    
    (2,344
    )Loss before income taxes
    
    
    (17,369
    )
    
    
    (6,084
    )Income tax benefit
    
    
    (5,667
    )
    
    
    (2,305
    )Net loss
    
    $
    (11,702
    )
    
    $
    (3,779
    )
  11




---



##### Table of Contents



NEENAH FOUNDRY COMPANY
 
  
 Three months endedDecember 31,2008
    
    
    2007Operating activitiesNet loss
    
    $
    (11,702
    )
    
    $
    (3,779
    )Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization
    
    
    8,448
    
    
    
    5,915Amortization of deferred financing costs
    
    
    114
    
    
    
    114Stock-based compensation
    
    
    95
    
    
    
    40Changes in operating assets and liabilities
    
    
    (1,111
    )
    
    
    (3,005
    )Net cash used in operating activities
    
    
    (4,156
    )
    
    
    (715
    )Investing activitiesPurchase of property, plant and equipment
    
    
    (6,228
    )
    
    
    (14,250
    )Net cash used in investing activities
    
    
    (6,228
    )
    
    
    (14,250
    )Financing activitiesNet change in revolver balance
    
    
    10,448
    
    
    
    15,016Payments on capital lease obligations
    
    
    (64
    )
    
    
    (51
    )Net cash provided by financing activities
    
    
    10,384
    
    
    
    14,965Increase (decrease) in cash
    
    
    
    
    
    
    Cash at beginning of period
    
    
    
    
    
    
    Cash at end of period
    
    $
    
    
    
    $
    
  12




---



##### Table of Contents



NEENAH FOUNDRY COMPANY
 
  
 Note 1  Basis of Presentation
  Note 2  Recent Accounting Pronouncements
        13




---



##### Table of Contents



Note 3  Inventories
  December 31,
    
    
    September 30,2008
    
    
    2008Raw materials
    
    $
    8,765
    
    
    $
    9,899Work in process and finished goods
    
    
    47,101
    
    
    
    43,901Supplies
    
    
    17,273
    
    
    
    17,215$
    73,139
    
    
    $
    71,015
 Note 4  Employee Benefit Plans
 Components of Net Periodic Benefit Cost
  Pension Benefits
    
    
    Postretirement BenefitsThree months ended December 31,
    
    
    Three months ended December 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Service cost
    
    $
    370
    
    
    $
    461
    
    
    $
    78
    
    
    $
    55Interest cost
    
    
    1,095
    
    
    
    1,097
    
    
    
    131
    
    
    
    81Expected return on plan assets
    
    
    (1,235
    )
    
    
    (1,364
    )
    
    
    
    
    
    
    Amortization of prior service cost (credit)
    
    
    7
    
    
    
    4
    
    
    
    40
    
    
    
    (13
    )Recognized net actuarial gain
    
    
    (3
    )
    
    
    
    
    
    
    (50
    )
    
    
    (53
    )Net periodic benefit cost
    
    $
    234
    
    
    $
    198
    
    
    $
    199
    
    
    $
    70
 Employer Contributions
  14




---



##### Table of Contents



Note 5  Closure of Kendallville
  Note 6  Cost Reduction Actions
  Note 7  Acquisition
   Accounts receivable
    
    $
    827Inventories
    
    
    561Other current assets
    
    
    13Property, plant and equipment
    
    
    1,665Identifiable intangible assets
    
    
    410Goodwill
    
    
    1,437Current liabilities
    
    
    (564
    )$
    4,349
 Note 8  Contingencies
   Note 9  Subsequent Event
  15




---



##### Table of Contents



Note 10  Subsidiary Guarantors
 1 2 1 2
 Condensed Consolidating Balance Sheet
December 31, 2008
 SubsidiaryNeenah
    
    
    Guarantors
    
    
    Eliminations
    
    
    ConsolidatedAssetsCurrent assets:Cash
    
    $
    (2,573
    )
    
    $
    2,573
    
    
    $
    
    
    
    $
    Accounts receivable, net
    
    
    26,198
    
    
    
    33,969
    
    
    
    
    
    
    
    60,167Inventories
    
    
    27,250
    
    
    
    45,889
    
    
    
    
    
    
    
    73,139Deferred income taxes
    
    
    688
    
    
    
    3,922
    
    
    
    
    
    
    
    4,610Refundable income taxes
    
    
    7,363
    
    
    
    
    
    
    
    
    
    
    
    7,363Other current assets
    
    
    1,459
    
    
    
    2,657
    
    
    
    
    
    
    
    4,116Total current assets
    
    
    60,385
    
    
    
    89,010
    
    
    
    
    
    
    
    149,395Investments in and advances to subsidiaries
    
    
    130,327
    
    
    
    
    
    
    
    (130,327
    )
    
    
    Property, plant and equipment, net
    
    
    96,879
    
    
    
    64,342
    
    
    
    
    
    
    
    161,221Deferred financing costs and intangible assets, net
    
    
    35,888
    
    
    
    13,403
    
    
    
    
    
    
    
    49,291Goodwill
    
    
    86,699
    
    
    
    1,437
    
    
    
    
    
    
    
    88,136Other assets
    
    
    2,397
    
    
    
    4,734
    
    
    
    
    
    
    
    7,131$
    412,575
    
    
    $
    172,926
    
    
    $
    (130,327
    )
    
    $
    455,174Liabilities and Stockholders EquityCurrent liabilities:Accounts payable
    
    $
    3,606
    
    
    $
    18,827
    
    
    $
    
    
    
    $
    22,433Net intercompany payable
    
    
    
    
    
    
    140,884
    
    
    
    (140,884
    )
    
    
    Accrued liabilities
    
    
    8,148
    
    
    
    6,680
    
    
    
    
    
    
    
    14,828Current portion of long-term debt
    
    
    70,131
    
    
    
    71
    
    
    
    
    
    
    
    70,202Total current liabilities
    
    
    81,885
    
    
    
    166,462
    
    
    
    (140,884
    )
    
    
    107,463Long-term debt and capital lease obligations
    
    
    300,000
    
    
    
    1,724
    
    
    
    
    
    
    
    301,724Deferred income taxes
    
    
    12,009
    
    
    
    11,197
    
    
    
    
    
    
    
    23,206Postretirement benefit obligations
    
    
    8,091
    
    
    
    
    
    
    
    
    
    
    
    8,091Other liabilities
    
    
    7,453
    
    
    
    4,100
    
    
    
    
    
    
    
    11,553Stockholders equity (deficit)
    
    
    3,137
    
    
    
    (10,557
    )
    
    
    10,557
    
    
    
    3,137$
    412,575
    
    
    $
    172,926
    
    
    $
    (130,327
    )
    
    $
    455,174
 16




---



##### Table of Contents



Note 10  Subsidiary Guarantors (continued)
 Condensed Consolidating Balance Sheet
September 30, 2008
 SubsidiaryNeenah
    
    
    Guarantors
    
    
    Eliminations
    
    
    ConsolidatedAssetsCurrent assets:Cash
    
    $
    523
    
    
    $
    (523
    )
    
    $
    
    
    
    $
    Accounts receivable, net
    
    
    47,083
    
    
    
    45,406
    
    
    
    
    
    
    
    92,489Inventories
    
    
    26,570
    
    
    
    44,445
    
    
    
    
    
    
    
    71,015Refundable income taxes
    
    
    7,363
    
    
    
    
    
    
    
    
    
    
    
    7,363Deferred income taxes
    
    
    688
    
    
    
    3,922
    
    
    
    
    
    
    
    4,610Other current assets
    
    
    1,340
    
    
    
    3,146
    
    
    
    
    
    
    
    4,486Total current assets
    
    
    83,567
    
    
    
    96,396
    
    
    
    
    
    
    
    179,963Investments in and advances to subsidiaries
    
    
    132,206
    
    
    
    
    
    
    
    (132,206
    )
    
    
    Property, plant and equipment, net
    
    
    94,582
    
    
    
    65,658
    
    
    
    
    
    
    
    160,240Deferred financing costs and intangible assets, net
    
    
    37,428
    
    
    
    13,790
    
    
    
    
    
    
    
    51,218Goodwill
    
    
    86,699
    
    
    
    1,437
    
    
    
    
    
    
    
    88,136Other assets
    
    
    2,398
    
    
    
    4,544
    
    
    
    
    
    
    
    6,942$
    436,880
    
    
    $
    181,825
    
    
    $
    (132,206
    )
    
    $
    486,499Liabilities and Stockholders EquityCurrent liabilities:Accounts payable
    
    $
    15,381
    
    
    $
    24,071
    
    
    $
    
    
    
    $
    39,452Net intercompany payable
    
    
    
    
    
    
    134,274
    
    
    
    (134,274
    )
    
    
    Accrued liabilities
    
    
    13,599
    
    
    
    9,882
    
    
    
    
    
    
    
    23,481Current portion of long-term debt
    
    
    59,683
    
    
    
    
    
    
    
    
    
    
    
    59,683Total current liabilities
    
    
    88,663
    
    
    
    168,227
    
    
    
    (134,274
    )
    
    
    122,616Long-term debt and capital lease obligations
    
    
    300,000
    
    
    
    400
    
    
    
    
    
    
    
    300,400Deferred income taxes
    
    
    17,980
    
    
    
    11,085
    
    
    
    
    
    
    
    29,065Postretirement benefit obligations
    
    
    8,052
    
    
    
    
    
    
    
    
    
    
    
    8,052Other liabilities
    
    
    7,441
    
    
    
    4,181
    
    
    
    
    
    
    
    11,622Stockholders equity (deficit)
    
    
    14,744
    
    
    
    (2,068
    )
    
    
    2,068
    
    
    
    14,744$
    436,880
    
    
    $
    181,825
    
    
    $
    (132,206
    )
    
    $
    486,499
 17




---



##### Table of Contents



Note 10  Subsidiary Guarantors (continued)
 Condensed Consolidating Statement of Operations
Three months ended December 31, 2008
 SubsidiaryNeenah
    
    
    Guarantors
    
    
    Eliminations
    
    
    ConsolidatedNet sales
    
    $
    43,832
    
    
    $
    55,232
    
    
    $
    (1,429
    )
    
    $
    97,635Cost of sales
    
    
    40,288
    
    
    
    56,452
    
    
    
    (1,429
    )
    
    
    95,311Gross profit (loss)
    
    
    3,544
    
    
    
    (1,220
    )
    
    
    
    
    
    
    2,324Selling, general and administrative expenses
    
    
    4,879
    
    
    
    4,318
    
    
    
    
    
    
    
    9,197Amortization of intangible assets
    
    
    1,426
    
    
    
    386
    
    
    
    
    
    
    
    1,812Operating loss
    
    
    (2,761
    )
    
    
    (5,924
    )
    
    
    
    
    
    
    (8,685
    )Net interest expense
    
    
    (4,249
    )
    
    
    (4,435
    )
    
    
    
    
    
    
    (8,684
    )Loss before income taxes and equity in loss
of subsidiaries
    
    
    (7,010
    )
    
    
    (10,359
    )
    
    
    
    
    
    
    (17,369
    )Income tax benefit
    
    
    (2,287
    )
    
    
    (3,380
    )
    
    
    
    
    
    
    (5,667
    )(4,723
    )
    
    
    (6,979
    )
    
    
    
    
    
    
    (11,702
    )Equity in loss of subsidiaries
    
    
    (6,979
    )
    
    
    
    
    
    
    6,979
    
    
    
    Net loss
    
    $
    (11,702
    )
    
    $
    (6,979
    )
    
    $
    6,979
    
    
    $
    (11,702
    )
 Condensed Consolidating Statement of Operations
Three months ended December 31, 2007
 SubsidiaryNeenah
    
    
    Guarantors
    
    
    Eliminations
    
    
    ConsolidatedNet sales
    
    $
    45,303
    
    
    $
    57,357
    
    
    $
    (1,435
    )
    
    $
    101,225Cost of sales
    
    
    36,280
    
    
    
    52,847
    
    
    
    (1,435
    )
    
    
    87,692Gross profit
    
    
    9,023
    
    
    
    4,510
    
    
    
    
    
    
    
    13,533Selling, general and administrative expenses
    
    
    5,016
    
    
    
    3,967
    
    
    
    
    
    
    
    8,983Restructuring costs
    
    
    885
    
    
    
    342
    
    
    
    
    
    
    
    1,227Amortization of intangible assets
    
    
    1,427
    
    
    
    355
    
    
    
    
    
    
    
    1,782Gain on disposal of equipment
    
    
    
    
    
    
    (1
    )
    
    
    
    
    
    
    (1
    )Operating income (loss)
    
    
    1,695
    
    
    
    (153
    )
    
    
    
    
    
    
    1,542Net interest expense
    
    
    (3,399
    )
    
    
    (4,227
    )
    
    
    
    
    
    
    (7,626
    )Loss before income taxes and equity in loss
of subsidiaries
    
    
    (1,704
    )
    
    
    (4,380
    )
    
    
    
    
    
    
    (6,084
    )Income tax benefit
    
    
    (646
    )
    
    
    (1,659
    )
    
    
    
    
    
    
    (2,305
    )(1,058
    )
    
    
    (2,721
    )
    
    
    
    
    
    
    (3,779
    )Equity in loss of subsidiaries
    
    
    (2,721
    )
    
    
    
    
    
    
    2,721
    
    
    
    Net loss
    
    $
    (3,779
    )
    
    $
    (2,721
    )
    
    $
    2,721
    
    
    $
    (3,779
    )
 18




---



##### Table of Contents



Note 10  Subsidiary Guarantors (continued)
 Condensed Consolidating Statement of Cash Flows
Three months ended December 31, 2008
 SubsidiaryNeenah
    
    
    Guarantors
    
    
    Eliminations
    
    
    ConsolidatedOperating activitiesNet loss
    
    $
    (11,702
    )
    
    $
    (6,979
    )
    
    $
    6,979
    
    
    $
    (11,702
    )Adjustments to reconcile net loss to net cash used
in operating activities:Depreciation and amortization
    
    
    3,179
    
    
    
    5,269
    
    
    
    
    
    
    
    8,448Amortization of deferred financing costs
    
    
    114
    
    
    
    
    
    
    
    
    
    
    
    114Stock-based compensation
    
    
    95
    
    
    
    
    
    
    
    
    
    
    
    95Changes in operating assets and liabilities
    
    
    (3,059
    )
    
    
    1,948
    
    
    
    
    
    
    
    (1,111
    )Net cash provided by (used in) operating activities
    
    
    (11,373
    )
    
    
    238
    
    
    
    6,979
    
    
    
    (4,156
    )Investing activitiesInvestments in and advances to subsidiaries
    
    
    1,879
    
    
    
    5,100
    
    
    
    (6,979
    )
    
    
    Purchase of property, plant and equipment
    
    
    (4,050
    )
    
    
    (2,178
    )
    
    
    
    
    
    
    (6,228
    )Net cash provided by (used in) investing activities
    
    
    (2,171
    )
    
    
    2,922
    
    
    
    (6,979
    )
    
    
    (6,228
    )Financing activitiesNet change in revolver balance
    
    
    10,448
    
    
    
    
    
    
    
    
    
    
    
    10,448Payments on capital lease obligations
    
    
    
    
    
    
    (64
    )
    
    
    
    
    
    
    (64
    )Net cash provided by (used in) financing activities
    
    
    10,448
    
    
    
    (64
    )
    
    
    
    
    
    
    10,384Increase (decrease) in cash
    
    
    (3,096
    )
    
    
    3,096
    
    
    
    
    
    
    
    Cash at beginning of period
    
    
    523
    
    
    
    (523
    )
    
    
    
    
    
    
    Cash at end of period
    
    $
    (2,573
    )
    
    $
    2,573
    
    
    $
    
    
    
    $
    
 19




---



##### Table of Contents



Note 10  Subsidiary Guarantors (continued)
 Condensed Consolidating Statement of Cash Flows
Three months ended December 31, 2007
 SubsidiaryNeenah
    
    
    Guarantors
    
    
    Eliminations
    
    
    ConsolidatedOperating activitiesNet loss
    
    $
    (3,779
    )
    
    $
    (2,721
    )
    
    $
    2,721
    
    
    $
    (3,779
    )Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:Depreciation and amortization
    
    
    2,762
    
    
    
    3,153
    
    
    
    
    
    
    
    5,915Amortization of deferred financing costs
    
    
    114
    
    
    
    
    
    
    
    
    
    
    
    114Stock-based compensation
    
    
    40
    
    
    
    
    
    
    
    
    
    
    
    40Changes in operating assets and liabilities
    
    
    (3,190
    )
    
    
    185
    
    
    
    
    
    
    
    (3,005
    )Net cash provided by (used in) operating activities
    
    
    (4,053
    )
    
    
    617
    
    
    
    2,721
    
    
    
    (715
    )Investing activitiesInvestments in and advances to subsidiaries
    
    
    574
    
    
    
    2,147
    
    
    
    (2,721
    )
    
    
    Purchase of property, plant and equipment
    
    
    (11,068
    )
    
    
    (3,182
    )
    
    
    
    
    
    
    (14,250
    )Net cash used in investing activities
    
    
    (10,494
    )
    
    
    (1,035
    )
    
    
    (2,721
    )
    
    
    (14,250
    )Financing activitiesNet change in revolver balance
    
    
    15,016
    
    
    
    
    
    
    
    
    
    
    
    15,016Payments on capital lease obligations
    
    
    
    
    
    
    (51
    )
    
    
    
    
    
    
    (51
    )Net cash provided by (used in) financing activities
    
    
    15,016
    
    
    
    (51
    )
    
    
    
    
    
    
    14,965Increase (decrease) in cash
    
    
    469
    
    
    
    (469
    )
    
    
    
    
    
    
    Cash at beginning of period
    
    
    969
    
    
    
    (969
    )
    
    
    
    
    
    
    Cash at end of period
    
    $
    1,438
    
    
    $
    (1,438
    )
    
    $
    
    
    
    $
    
 20




---



##### Table of Contents



Note 11  Segment Information
   Three months endedDecember 31,2008
    
    
    2007Revenues from external customers:Castings
    
    $
    87,280
    
    
    $
    90,097Forgings
    
    
    8,145
    
    
    
    8,998Other
    
    
    4,348
    
    
    
    4,502Elimination of intersegment revenues
    
    
    (2,138
    )
    
    
    (2,372
    )$
    97,635
    
    
    $
    101,225Net loss:Castings
    
    $
    (11,012
    )
    
    $
    (3,660
    )Forgings
    
    
    (542
    )
    
    
    (188
    )Other
    
    
    (313
    )
    
    
    (9
    )Elimination of intersegment loss
    
    
    165
    
    
    
    78$
    (11,702
    )
    
    $
    (3,779
    )
 December 31,
    
    
    September 30,2008
    
    
    2008Total assets:Castings
    
    $
    440,131
    
    
    $
    471,509Forgings
    
    
    25,162
    
    
    
    26,324Other
    
    
    11,762
    
    
    
    11,187Elimination of intersegment assets
    
    
    (21,881
    )
    
    
    (22,521
    )$
    455,174
    
    
    $
    486,499
 21




---



##### Table of Contents



Managements Discussion and Analysis of Financial Condition and Results of Operations
 General
   Recent Developments
 Gregg Closure
 Deferral of Interest Payment on 12 1/2% Notes 1 2 1 2 1 2
 Kendallville Closure
 Tontine Intentions
 Order for Abatement at Gregg Facility
 New Mold Line
 22




---



##### Table of Contents



Asset Purchase.
 Increase of 2006 Credit Facility.
 Labor Agreement at Mercer.
 Labor Agreement at Dalton.
 Steel Scrap Volatility
 Cost Reduction Actions.
 23




---



##### Table of Contents



Results of Operations
  Three months ended December 31, 2008 and 2007
 Net sales.
 Cost of sales.
 Gross profit.
 Selling, general and administrative expenses.
 Restructuring costs
 Amortization of intangible assets.
 Operating income (loss).
 Net interest expense.
 Income tax provision.
 24




---



##### Table of Contents



Liquidity and Capital Resources
 Refinancing Transactions
 1 2 1 2
 2006 Credit Facility.
 1 2 1 2
  9 1 / 2 % Notes. 1 2 1 2 1 2
 25




---



##### Table of Contents



1 2 1 2 1 2 1 2 1 2 1 2 1 2
 12 1 / 2 % Notes. 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
    Future Capital Needs.
 26




---



##### Table of Contents



1 2 1 2 1 2 1 2
 Off-Balance Sheet Arrangements
  Contractual Obligations
  Less Than
    
    
    
    
    
    
    
    
    
    
    More ThanTotal
    
    
    1 year
    
    
    1-3 Years
    
    
    3-5 Years
    
    
    5 YearsLong-term debt
    
    $
    300.0
    
    
    $
    
    
    
    $
    
    
    
    $
    75.0
    
    
    $
    225.0Interest on long-term debt
    
    
    218.3
    
    
    
    33.6
    
    
    
    61.5
    
    
    
    59.1
    
    
    
    64.1Revolving line of credit
    
    
    70.1
    
    
    
    70.1
    
    
    
    
    
    
    
    
    
    
    
    Interest and fees on revolving line of credit
    
    
    1.7
    
    
    
    1.7
    
    
    
    
    
    
    
    
    
    
    
    Capital leases
    
    
    1.8
    
    
    
    0.1
    
    
    
    0.6
    
    
    
    0.6
    
    
    
    0.5Operating leases
    
    
    4.7
    
    
    
    1.7
    
    
    
    2.1
    
    
    
    0.7
    
    
    
    0.2New mold line commitments
    
    
    3.0
    
    
    
    3.0
    
    
    
    
    
    
    
    
    
    
    
    Total contractual obligations
    
    $
    599.6
    
    
    $
    110.2
    
    
    $
    64.2
    
    
    $
    135.4
    
    
    $
    289.8
  Critical Accounting Estimates
  27




---



##### Table of Contents



Quantitative and Qualitative Disclosures About Market Risk
  Interest Rate Sensitivity. 1 2 1 2
 
 Controls and Procedures
 Disclosure Control and Procedures.
 Internal Control Over Financial Reporting.
 28




---



##### Table of Contents



NEENAH ENTERPRISES, INC.
NEENAH FOUNDRY COMPANY
 
 OTHER INFORMATION
 
 Legal Proceedings
    Fox River Cleanup Matter.
  
 Submission of Matters to a Vote of Security Holders
  Proposal 1: To elect seven directors for terms expiring at the 2010 Annual Meeting of NEI
Stockholders.
  For
    
    Withheld FromWilliam M. Barrett
    
    
    13,372,576
    
    
    
    6,083Albert E. Ferrara, Jr.
    
    
    13,313,934
    
    
    
    64,725David B. Gendell
    
    
    13,262,592
    
    
    
    116,067Stephen E.K. Graham
    
    
    13,284,523
    
    
    
    94,136Joseph V. Lash
    
    
    13,058,324
    
    
    
    320,335Jeffrey G. Marshall
    
    
    13,284,523
    
    
    
    94,136Robert E. Ostendorf, Jr.
    
    
    13,262,413
    
    
    
    116,246
  29




---



##### Table of Contents



Proposal 2: The ratification of Ernst & Young LLP as the independent registered public
accounting firm for the 2009 fiscal year.
  For
    
    
    13,378,659Against
    
    
    Abstentions
    
    
    Broker Non-Votes
    
    
    
 
 Exhibits
   30




---



##### Table of Contents



NEENAH ENTERPRISES, INC.
NEENAH FOUNDRY COMPANYDATE: February 12, 2009
    /s/ Jeffrey S. JenkinsJeffrey S. JenkinsCorporate Vice President  Finance and Chief Financial Officer
(Principal Financial Officer and Duly Authorized Officer) 31




---



##### Table of Contents



Exhibit Index
to
Quarterly Report on Form 10-Q
For the Quarter Ended December 31, 2008
 Exhibit No.
    
    Description
    
    Incorporated Herein by Reference to
    
    Filed Herewith31.1
    
    Certification of
Chief Executive
Officer of Neenah
Enterprises, Inc.
pursuant to Rule
13a-14(a) or Rule
15d-14(a), as
adopted pursuant to
Section 302 of the
Sarbanes-Oxley Act
of 2002
    
    
    
    X31.2
    
    Certification of
Chief Financial
Officer of Neenah
Enterprises, Inc.
pursuant to Rule
13a-14(a) or Rule
15d-14(a), as
adopted pursuant to
Section 302 of the
Sarbanes-Oxley Act
of 2002
    
    
    
    X31.3
    
    Certification of
Chief Executive
Officer of Neenah
Foundry Company
pursuant to Rule
13a-14(a) or Rule
15d-14(a), as
adopted pursuant to
Section 302 of the
Sarbanes-Oxley Act
of 2002
    
    
    
    X31.4
    
    Certification of
Chief Financial
Officer of Neenah
Foundry Company
pursuant to Rule
13a-14(a) or Rule
15d-14(a), as
adopted pursuant to
Section 302 of the
Sarbanes-Oxley Act
of 2002
    
    
    
    X32.1
    
    Certification of
Chief Executive
Officer and Chief
Financial Officer
of Neenah
Enterprises, Inc.
pursuant to 18
U.S.C. Section
1350, as adopted
pursuant to Section
906 of the
Sarbanes-Oxley Act
of 2002
    
    
    
    X32.2
    
    Certification of
Chief Executive
Officer and Chief
Financial Officer
of Neenah Foundry
Company pursuant to
18 U.S.C. Section
1350, as adopted
pursuant to Section
906 of the
Sarbanes-Oxley Act
of 2002
    
    
    
    X
 32