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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 11-K

(Mark One)

/X/   ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 [FEE REQUIRED]

      For the fiscal year ended December 31, 1994

                             OR
/ /   TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

      For the transition period from __________  to  __________.



Commission file number 1-5725

A.    Full title of the plan and the address of the plan, if different from 
      that of the issuer named below:

      Quanex Corporation Hourly Bargaining Unit Employees Savings Plan





B.    Name of issuer of the securities held pursuant to the plan and the 
      address of its principal executive office:

      Quanex Corporation
      1900 West Loop South, Suite 1500
      Houston, Texas 77027
      Phone: (713) 961-4600

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                          INDEPENDENT AUDITORS' REPORT





The Benefits Committee
Quanex Corporation
Houston, Texas

Re:      Quanex Corporation Hourly Bargaining Unit Employees Savings Plan
                                      
We have audited the accompanying statement of net assets available for benefits
of the Quanex Corporation Hourly Bargaining Unit Employees Savings Plan (the 
"Plan") as of December 31, 1994 and 1993, and the related statements of changes
in net assets available for benefits for the years then ended.  These financial
statements are the responsibility of the Plan's management.  Our responsibility
is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
from material misstatement.  An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.  We believe that our audits provide a reasonable basis
for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of December 31,
1994 and 1993, and the changes in net assets available for benefits for the
years then ended in conformity with generally accepted accounting principles.

Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole.  The accompanying supplemental
information by fund and supplemental schedules of (1) investments as of
December 31, 1994 and (2)  5% reportable transactions for the year ended
December 31, 1994 are presented for the purpose of additional analysis of the
basic financial statements rather than to present information regarding the net
assets available for benefits and changes in net assets available for benefits
of the individual funds.  This information and these schedules are not a
required part of the basic financial statements.  The schedules are
supplementary information required by the Department of Labor's Rules and
Regulation for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974.  This supplemental information and these schedules are
the responsibility of the Plan's management.  Such supplemental information and
schedules have been subjected to the auditing procedures applied in our audit
of the basic financial statements and, in our opinion, are fairly stated in all
material respects when considered in relation to the basic financial statements
taken as a whole.



/s/ Deloitte & Touche LLP

May 17, 1995
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                               QUANEX CORPORATION
                 HOURLY BARGAINING UNIT EMPLOYEES SAVINGS PLAN

                       STATEMENTS OF NET ASSETS AVAILABLE
                                  FOR BENEFITS



December 31, ----------------------------- 1994 1993 ---------- ----------- Assets: Investments, at fair value - Mutual fund assets $3,406,799 $2,249,402 Quanex Corporation common stock 132,707 15,617 Common/commingled trust 20,091 - ---------- ---------- 3,559,597 2,265,019 Deposits with insurance company at contract value 131,294 281,373 ---------- ---------- Total 3,690,891 2,546,392 ---------- ---------- Employee contributions receivable 117,866 74,473 Employer contributions receivable 6,951 - ---------- ---------- Net assets available for benefits $3,815,708 $2,620,865 ========== ==========
See notes to financial statements. 4 QUANEX CORPORATION HOURLY BARGAINING UNIT EMPLOYEES SAVINGS PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
December 31, ----------------------------- 1994 1993 ---------- ---------- Investment income: Interest and dividends $ 142,094 $ 148,229 Net appreciation (depreciation) in fair value of investments (80,190) 72,733 ---------- ---------- Total 61,904 220,962 ---------- ---------- Contributions Employee 1,157,814 830,367 Employer 72,075 - ---------- ---------- 1,229,889 830,367 ---------- ---------- Total additions 1,291,793 1,051,329 ---------- ---------- Benefit payments 96,950 188,154 ---------- ---------- Increase in net assets available for benefits 1,194,843 863,175 Net assets available for benefits: Beginning of year 2,620,865 1,757,690 ---------- ---------- End of year $3,815,708 $2,620,865 ========== ==========
See notes to financial statements. 5 QUANEX CORPORATION HOURLY BARGAINING UNIT EMPLOYEES SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1994 AND 1993 A. DESCRIPTION OF THE PLAN The following description of the Quanex Corporation Hourly Bargaining Unit Employees' Savings Plan (the "Plan") is provided for general information purposes only. Participants should refer to the Plan document for more complete information. (1) General. The Plan, originally named the Quanex Corporation Hourly Employee Savings Plan, became effective January 1, 1989 and is sponsored by Quanex Corporation (the "Company"). The Plan began receiving contributions in April 1989. The Plan is a defined contribution plan which is subject to the Employee Retirement Income Security Act of 1974 ("ERISA"). The plan is a voluntary savings plan in which hourly employees of certain divisions of the Company are eligible to participate after completing three months of active service. The assets of the Plan are held in trust by Fidelity Management Trust Company (the "Trustee"). The Benefits Committee (the "Committee"), appointed by the Company's Board of Directors, serves as the Plan administrator. (2) Contributions. Participants may elect to contribute up to 15% of their before-tax or after-tax compensation as defined by the Plan agreement. The Plan was amended effective July 1, 1994 to include LaSalle Steel hourly employees. All plan provisions apply to the LaSalle Steel hourly employees with the addition of an employer matching contribution that does not exceed 5% of the member's considered compensation. During the 1994 Plan year, LaSalle Steel Company made a Supplemental Employer Contribution of $100 on behalf of each member who was employed by LaSalle Steel Company on May 15, 1994 and also on behalf of each member who is first hired by LaSalle Steel Company after May 15, 1994, and completes 720 hours of service. (3) Participant Accounts. Each participant's account is credited with the participant's contribution and an allocation of investment income, which is based upon individual participant account balance as of the end of the period in which the income was earned. (4) Investment Options. The Plan has eight investment funds and a Quanex stock fund managed by the Trustee, as follows: Government Money Market Fund - composed of short-term government obligations. Short-Intermediate Government Fund - invested and reinvested in securities issued by the U.S. government. Balanced Fund - invested and reinvested in common and preferred stocks and bonds. Growth and Income Fund - invested and reinvested in equity and debt securities of foreign and domestic companies. 6 Magellan Fund - invested and reinvested in equity and debt securities of foreign and domestic companies. Contrafund - invested and reinvested in equities of foreign and domestic companies. Overseas Fund - invested and reinvested in foreign securities. Common/Commingled Trust - invested and reinvested in investment contracts with insurance companies, banks and other financial institutions. Puritan Fund - invested and reinvested in common and preferred stock and bonds. Quanex Corporation Common Stock - invested and reinvested exclusively in the common stock of Quanex Corporation. During 1994, the Short-Intermediate Government Fund was replaced by the Puritan Fund effective July 1, 1994. Additionally, the Plan has investments in a series of guaranteed investment contracts. Refer to Note C for further discussion. (5) Vesting. Participants are immediately vested in their contributions and the related earnings. Vesting in employer's matching contributions for employees is 0% for less than one year of services graduating to 100% for five or more years. Upon death, retirement or total permanent disability, the participant or beneficiary becomes immediately vested in the employer's contribution. In the event of termination, nonvested portions of employer's contributions are immediately forfeited by participants and utilized to reduce future employer matching contributions. (6) Payment of Benefits. Upon termination of service, the participant may elect to receive a lump sum distribution equal to the total amount of vested benefits in his or her account. See further discussion of benefits payable in Note G. B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (1) Accounting Basis. The financial statements of the Plan are prepared on the accrual basis of accounting in accordance with generally accepted accounting principles. (2) Investment Valuation. The Plan recognizes net appreciation or depreciation in the fair value of its investments. Investments are reflected at fair value in the financial statements. Fair value of mutual fund assets is determined using a quoted net asset value. Fair value for Quanex Corporation common stock, which is listed on the New York Stock Exchange, is determined using the last recorded sales price. (3) Administrative Expenses. The Company pays all administrative expenses. (4) Payment of Benefits. Benefits are recorded when paid. 7 C. DEPOSITS WITH INSURANCE COMPANY In 1989, the Plan entered into a series of guaranteed investment contracts with Metropolitan Life Insurance Company ("Metropolitan"). The contracts provide a guaranteed rate of return on principal invested which is credited to the Plan for the length of the contracts. The contracts are reduced for Plan withdrawals. The contracts are included in the financial statements at the December 31, 1994 and 1993 contract values as reported to the Plan by Metropolitan. A portion of these contracts matured on January 1, 1994. The remainder mature on January 1, 1995. The contracts provide an interest rate of 8.3%. D. PLAN TERMINATION Although it has not expressed any intention to do so, the Company has the right under the Plan to terminate the Plan at anytime subject to the provisions set forth in ERISA. In the event of plan termination, the assets held by the Trustee under the Plan will be valued and fully vested, and each participant will be entitled to distributions respecting his or her account. E. FEDERAL INCOME TAX STATUS The Plan is subject to specific rules and regulations related to employee benefit plans under the department of Labor and the Internal Revenue Service (the "IRS"). The Plan has received a favorable letter of tax determination dated June 11, 1990. As such, the Plan is a qualified trust under Sections 401 (a) and 401 (k) of the Internal Revenue Code (the "Code") and, as a result, is exempt from federal income tax under Section 501 (a) of the Code. The Company believes the Plan is currently designed and being operated in compliance with the applicable requirements of the Code. The Company believes the Plan was qualified and the related trust was tax-exempt as of the financial statement dates. F. RELATED PARTY TRANSACTIONS During the years ended December 31, 1994 and 1993, the Plan purchased and sold shares of Quanex Corporation common stock, as shown below:
1994 1993 ---- ---- Shares Cost Shares Cost ------ ---- ------ ---- 5,096 $110,023 565 $10,008
During the years ended December 31, 1994 and 1993, the Plan sold 194 and 5 shares of Quanex Corporation common stock for $5,392 (cost $4,682) and $95 (cost $108), respectively. During the year ended December 31, 1994 and 1993, the Plan purchased shares of Fidelity, the Trustee, mutual fund assets as shown below:
1994 1993 ---- ---- Shares Cost Shares Cost ------ ---- ------ ---- 824,831 $1,914,365 455,285 $1,216,239
During the years ended December 31, 1994 and 1993, the Plan sold 321,719 and 260,007 shares of Fidelity mutual fund assets for $819,960 (cost $825,438) and $461,405 (cost $459,020), respectively. 8 During the year ended December 31, 1994, the Plan purchased 20,091 shares (cost $20,091) of Fidelity , the Trustee, Common/Commingled Trust. G. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 Benefits payable are not reportable as liability on the statement of net assets available for benefits on the financial statements prepared in conformity with generally accepted accounting principles. See reconciliation of financial statements as of December 31, 1994, for Form 5500 below: Net assets available for benefits per financial statements $3,815,708 Less: Benefits payable 22,867 ---------- Net assets available for benefits per Form 5500 $3,792,841 ==========
For the year ended December 31, 1994, benefit payments recorded in the financial statements totaled $96,950. Benefit payments in Form 5500 totaled $119,818. H. SUBSEQUENT EVENT As of January 1, 1995, Guaranteed Insurance Contract Fund with Metropolitan matured. Effective January 1995, this fund is no longer a part of the Plan investment options. 9 I. ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS The following tables provide supplemental information regarding the net assets available for benefits by investment fund.
December 31, 1994 - ------------------------------------------------------------------------------------------------------------------------------------ GOVT. GROWTH MONEY COMMON\ AND MARKET COMMINGLED PURITAN BALANCED INCOME MAGELLAN TOTAL FUND TRUST FUND FUND FUND FUND ---------- ---------- ---------- -------- -------- -------- ---------- Assets Investments at fair value Mutual fund assets $3,406,799 $1,551,467 $479,342 $16,594 $126,277 $990,913 Quanex common stock 132,707 Common\commingled trust 20,091 $20,091 ---------- ---------- ------- -------- ------- -------- ---------- 3,559,597 1,551,467 20,091 479,342 16,594 126,277 990,913 Deposits with insurance company at contract value 131,294 ---------- ---------- ------- -------- ------- -------- ---------- Total Investments 3,690,891 1,551,467 20,091 479,342 16,594 126,277 990,913 Contributions receivable Employer 6,951 1,358 640 932 450 666 1,334 Employee 117,866 39,148 4,002 17,910 2,591 6,394 31,876 ---------- ---------- ------- -------- ------- -------- ---------- 124,817 40,506 4,642 18,842 3,041 7,060 33,210 ---------- ---------- ------- -------- ------- -------- ---------- Net assets available for benefits $3,815,708 $1,591,973 $24,733 $498,184 $19,635 $133,337 $1,024,123 ========== ========== ======= ======== ======= ======== ========== QUANEX CORP. GUARANTEED OVERSEAS CONTRA- COMMON INVESTMENT FUND FUND STOCK CONTRACT -------- ------- -------- ---------- Assets Investments at fair value Mutual fund assets $221,045 $21,161 Quanex common stock $132,707 Common\commingled trust -------- ------- -------- -------- 221,045 21,161 132,707 Deposits with insurance company at contract value $131,294 -------- ------- -------- -------- Total Investments 221,045 21,161 132,707 131,294 Contributions receivable Employer 805 291 475 Employee 9,052 2,663 4,230 -------- ------- -------- -------- 9,857 2,954 4,705 -------- ------- -------- -------- Net assets available for benefits $230,902 $24,115 $137,412 $131,294 ======== ======= ======== ========
December 31, 1993 - ------------------------------------------------------------------------------------------------------------------------------------ SHORT- GOVT. INTER- INTER- GROWTH MONEY MEDIATE MEDIATE AND MARKET GOVT. BOND PURITAN INCOME MAGELLAN TOTAL FUND FUND FUND FUND FUND FUND ---------- -------- -------- ------- -------- ------- -------- Assets: Investments at fair value Mutual fund assets $2,249,402 $907,094 $168,313 $0 $333,054 $45,120 $658,370 Quanex common stock 15,617 ---------- -------- -------- -- -------- ------- -------- 2,265,019 907,094 168,313 0 333,054 45,120 658,370 Deposits with insurance company at contract value 281,373 ---------- -------- -------- -- -------- ------- -------- Total Investments 2,546,392 907,094 168,313 0 333,054 45,120 658,370 Employee contributions receivable 74,473 24,184 5,945 0 12,298 2,619 23,809 ---------- -------- -------- -- -------- ------- -------- Net assets available for benefits $2,620,865 $931,278 $174,258 $0 $345,352 $47,739 $682,179 ========== ======== ======== == ======== ======= ======== QUANEX COMMON GUARANTEED OVERSEAS STOCK INVESTMENT FUND FUND CONTRACT -------- ------- ---------- Assets: Investments at fair value Mutual fund assets $137,451 Quanex common stock $15,617 -------- ------- -------- 137,451 15,617 Deposits with insurance company at contract value $281,373 -------- ------- -------- Total Investments 137,451 15,617 281,373 Employee contributions receivable 4,779 839 -------- ------- -------- Net assets available for benefits $142,230 $16,456 $281,373 ======== ======= ========
10 J. ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS The following tables provide supplemental information regarding the change in net assets available for benefits by investment fund.
December 31, 1994 - ----------------------------------------------------------------------------------------------------------------------------------- GOVT. QUANEX GROWTH MONEY CORP. COMMON\ AND MARKET COMMON COMMINGLED BALANCED INCOME PURITAN TOTAL FUND STOCK TRUST FUND FUND FUND ---------- ---------- ------- ---------- -------- --------- -------- Investment income: Interest and dividends $142,094 $50,311 $1,981 $218 $118 $7,167 $33,061 Net appreciation (depreciation) in fair value of investments (80,190) 2 11,748 0 (293) (5,286) (28,802) ---------- ---------- -------- ------- ------- --------- -------- Total 61,904 50,313 13,729 218 (175) 1,881 4,259 ---------- ---------- -------- ------- ------- --------- -------- Employer contributions 72,075 40,897 2,628 3,699 2,602 3,637 5,164 Employee contributions 1,157,814 384,265 40,789 20,816 14,912 59,278 174,607 ---------- ---------- -------- ------- ------- --------- -------- 1,229,889 425,162 43,417 24,515 17,514 62,915 179,771 ---------- ---------- -------- ------- ------- --------- -------- Total additions 1,291,793 475,475 57,146 24,733 17,339 64,796 184,030 Benefit payments 96,950 41,686 3,574 0 0 523 13,530 Fund transfers (0) 226,906 67,384 0 2,296 21,325 (17,668) ---------- ---------- -------- ------- ------- --------- -------- Increase in net assets available for benefits 1,194,843 660,695 120,956 24,733 19,635 85,598 152,832 ---------- ---------- -------- ------- ------- --------- -------- Net assets available of benefits: Beginning of year 2,620,865 931,278 16,456 0 0 47,739 345,352 ---------- ---------- -------- ------- ------- --------- -------- End of year $3,815,708 $1,591,973 $137,412 $24,733 $19,635 $133,337 $498,184 ========== ========== ======== ======= ======= ========= ========
SHORT- INTER- MEDIATE GUARANTEED MAGELLAN OVERSEAS CONTRA- BOND INVESTMENT FUND FUND FUND FUND CONTRACT ---------- -------- ------- -------- ---------- Investment income: Interest and dividends $30,363 $3,785 $0 $4,758 $10,332 Net appreciation (depreciation) in fair value of investments (45,839) (3,887) 231 (8,064) 0 ---------- -------- ------- -------- -------- Total (15,476) (102) 231 (3,306) 10,332 ---------- -------- ------- -------- -------- Employer contributions 7,337 4,515 1,596 0 0 Employee contributions 331,770 90,740 14,595 26,042 0 ---------- -------- ------- -------- -------- 339,107 95,255 16,191 26,042 0 ---------- -------- ------- -------- -------- Total additions 323,631 95,153 16,422 22,736 10,332 Benefit payments 28,461 4,168 214 958 3,836 Fund transfers 46,774 (2,313) 7,907 (196,036) (156,575) ---------- -------- ------- -------- -------- Increase in net assets available for benefits 341,944 88,672 24,115 (174,258) (150,079) ---------- -------- ------- -------- -------- Net assets available of benefits: Beginning of year 682,179 142,230 0 174,258 281,373 ---------- -------- ------- -------- -------- End of year $1,024,123 $230,902 $24,115 ($0) $131,294 ========== ======== ======= ======== ========
11 J. ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS (continued)
December 31, 1993 ---------------------------------------------------------------------------------------- SHORT- GOVT. INTER- INTER- GROWTH MONEY MEDIATE MEDIATE AND MARKET GOVT. BOND PURITAN INCOME MAGELLAN TOTAL FUND FUND FUND FUND FUND FUND ---------- -------- -------- -------- -------- ------- -------- Investment income: Interest and dividends $148,229 $24,976 $8,423 $695 $35,791 $1,810 $51,782 Net appreciation (depreciation) in fair value of investments 72,733 0 (1,528) 1,596 7,138 1,038 37,436 ---------- -------- -------- -------- -------- ------- -------- Total 220,962 24,976 6,895 2,291 42,929 2,848 89,218 Employee contributions 830,367 308,695 83,210 0 131,221 19,410 234,239 ---------- -------- -------- -------- -------- ------- -------- Total additions 1,051,329 333,671 90,105 2,291 174,150 22,258 323,457 Benefit payments 188,154 110,154 9,306 0 12,036 218 18,226 Fund transfers 0 (54,346) 93,459 (132,581) 31,762 25,699 94,128 ---------- -------- -------- -------- -------- ------- -------- Increase in net assets available for benefits 863,175 169,171 174,258 (130,290) 193,876 47,739 399,359 ---------- -------- -------- -------- -------- ------- -------- Net assets available of benefits: Beginning of year 1,757,690 762,107 0 130,290 151,476 0 282,820 ---------- -------- -------- -------- -------- ------- -------- End of year $2,620,865 $931,278 $174,258 $0 $345,352 $47,739 $682,179 ========== ======== ======== ======== ======== ======= ========
GUARAN- QUANEX TEED CORP. INVEST- OVERSEAS COMMON MENT FUND STOCK CONTRACT -------- ------- -------- Investment income: Interest and dividends $2,034 $366 $22,352 Net appreciation (depreciation) in fair value of investments 27,849 (796) 0 -------- ------- -------- Total 29,883 (430) 22,352 Employee contributions 44,340 9,252 0 -------- ------- -------- Total additions 74,223 8,822 22,352 Benefit payments 3,273 95 34,846 Fund transfers 10,386 400 (68,907) -------- ------- -------- Increase in net assets available for benefits 81,336 9,127 (81,401) -------- ------- -------- Net assets available of benefits: Beginning of year 60,894 7,329 362,774 -------- ------- -------- End of year $142,230 $16,456 $281,373 ======== ======= ========
12 Item 27a - Schedule of Assets Held for Investment Purposes EIN: 38-1872178; PN 015 QUANEX CORPORATION HOURLY BARGAINING UNIT EMPLOYEES SAVINGS PLAN SUPPLEMENTAL SCHEDULE OF INVESTMENTS DECEMBER 31, 1994
Shares/ Current Par Value Cost Value --------- ---- ------- Mutual fund assets - Fidelity Investments: Government Money Market Fund* 1,551,467 $1,551,467 $1,551,467 Balanced Fund* 1,350 16,885 16,594 Puritan Fund* 32,366 500,949 479,342 Growth and Income Fund* 5,988 130,410 126,277 Magellan* 14,834 1,013,205 990,913 Contrafund* 699 20,923 21,161 Overseas Fund* 8,097 213,790 221,045 ---------- ---------- Total Mutual Fund Assets 3,447,629 3,406,799 ---------- ---------- Quanex Corporation Common Stock* 5,801 123,896 132,707 Common/Commingled Trust* 20,091 20,091 20,091 Deposits with insurance company: Metropolitan Life Guaranteed Investment Contract 131,294 131,294 ---------- ---------- Total investments $3,722,910 $3,690,891 ========== ==========
*Party-in-Interest 13 Item 27d - Schedule of Reportable (5%) Transactions EIN 38-1872178; PN 015 QUANEX CORPORATION HOURLY BARGAINING UNIT EMPLOYEES SAVINGS PLAN SUPPLEMENTAL SCHEDULE OF 5% REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1994 Series of Transactions
Current Total Number of Total Number Value on Net Purchases During Purchase of Sales During Selling Cost of Transaction Gain Description Plan Year Price Plan Year Price Asset Date (Loss) - ----------- --------- ----- -------- ----- ----- ---- ------ Metropolitan Life Short-term Fund 5 $160,105 $160,105 $160,105 0 FMTC Government Reserve 17 $160,142 21 160,448 160,448 160,448 0 Quanex Corporation Common Stock 24 110,023 5 5,392 4,682 5,392 $710 Puritan Fund 37 234,282 11 60,192 59,192 60,192 1,000 Magellan Fund 44 449,310 12 69,569 70,930 69,569 (1,361) Contrafund 9 21,145 1 206 214 206 (8) Growth & Income Fund 27 89,552 3 2,989 3,109 2,989 (120) Overseas Fund 32 125,729 8 42,792 38,247 42,792 4,545
14 Item 27d - Schedule of Reportable (5%) Transactions EIN 38-1872178; PN 015 QUANEX CORPORATION HOURLY BARGAINING UNIT EMPLOYEES SAVINGS PLAN SUPPLEMENTAL SCHEDULE OF 5% REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1994 Series of Transactions (continued)
Current Total Number of Total Number Value on Net Purchases During Purchase of Sales During Selling Cost of Transaction Gain Description Plan Year Price Plan Year Price Asset Date (Loss) - ----------- -------- -------- --------------- ------- ------- ----------- ------ Balanced Fund 12 $17,337 2 $448 $450 $448 $(2) Government Money Market Fund 58 778,294 44 133,921 133,921 133,921 0 Common/Commingled Trust 8 20,091 0 0 0 0 0 Short Intermediate Government Fund 24 38,574 13 189,290 198,822 189,290 (9,532)
15 SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. DATE 6/26/95 /s/ Joseph K. Peery ---------------------------------- Joseph K. Peery 16 INDEX TO EXHIBITS
EXHIBIT NUMBER 23.1 Independent Auditor's Consent
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EXHIBIT 23.1


                           INDEPENDENT AUDITORS' CONSENT


We consent to the incorporation by reference in Registration Statement No.
33-46824 of Quanex Corporation on Form S-8 of our report dated May 17, 1995,
appearing in this Annual Report on Form 11-K of Quanex Corporation Hourly
Bargaining Unit Employees Savings Plan for the year ended December 31, 1994.



    /s/  Deloitte & Touche LLP
- ---------------------------------
         DELOITTE & TOUCHE LLP

Houston, Texas
June 29, 1994