UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D C 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1994
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 1-1463
UNION CARBIDE CORPORATION
(Exact name of registrant as specified in its charter)
New York 13-1421730
(State or other jurisdi#tion of (I.R.S. Employer
incorporation or organization) Identification No.)
39 Old Ridgebury Road, Danbury, CT 06817-0001
(Address of principal executive offices) (Zip Code)
203-794-2000
Registrant's telephone number, including area code
(Former name, former address and former fiscal year,
if changed since last report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No _______
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at July 31, 1994
Common Stock, $1 par value 149,895,565 shares
Total number of sequentially numbered pages in this filing,
including exhibits thereto: 16
INDEX
PART I. FINANCIAL INFORMATION
PAGE
Financial Statements
Condensed Consolidated Statement of Income -
Union Carbide Corporation and Subsidiaries -
Quarter Ended June 30, 1994 and 1993......................... 3
Condensed Consolidated Statement of Income -
Union Carbide Corporation and Subsidiaries -
Six Months Ended June 30, 1994 and 1993...................... 4
Condensed Consolidated Balance Sheet - Union Carbide
Corporation and Subsidiaries - June 30, 1994 and
December 31, 1993............................................ 5
Condensed Consolidated Statement of Cash Flows -
Union Carbide Corporation and Subsidiaries -
Six Months Ended June 30, 1994 and 1993....................... 6
Notes to Condensed Consolidated Financial Statements -
Union Carbide Corporation and Subsidiaries................... 7-9
Discussion and Analysis of Results of Operations
and Financial Condition........................................ 10-12
PART II. OTHER INFORMATION
Item 1. Legal Proceedings....................................... 13
Item 6. Exhibits and Reports on Form 8-K........................ 13
Signature........................................................ 14
Exhibit Index.................................................... 15
PART I. FINANCIAL INFORMATION
UNION CARBIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
Millions of dollars
(Except per share figures)
Quarter ended June 30,
1994 1993
NET SALES $ 1,177 $ 1,244
Deductions (additions)
Cost of sales, exclusive of depreciation and
amortization shown separately below 906 969
Research and development 33 38
Selling, administration and other expenses* 72 94
Depreciation and amortization 67 68
Interest on long-term and short-term debt 20 16
Other expense (income) - net (7) 4
INCOME BEFORE PROVISION FOR INCOME TAXES 86 55
Provision for income taxes 25 18
INCOME OF CONSOLIDATED COMPANIES 61 37
Plus: UCC share of net income from
corporate investments carried at equity 12 4
NET INCOME 73 41
Preferred stock dividend, net of taxes 3 3
NET INCOME - COMMON STOCKHOLDERS $ 70 $ 38
Earnings per common share
Primary $ 0.44 $ 0.24
Fully diluted $ 0.42 $ 0.24
Cash dividends per common share $ 0.1875 $ 0.1875
* Selling, administration and other expenses include:
Selling $ 31 $ 38
Administration 26 34
Other expenses 15 22
$ 72 $ 94
The Notes to Condensed Consolidated Financial Statements on Pages 7 through 9
should be read in conjunction with this statement.
UNION CARBIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
Millions of dollars
(Except per share figures)
Six Months ended June 30,
1994 1993
NET SALES $ 2,303 $ 2,437
Deductions
Cost of sales, exclusive of depreciation and
amortization shown separately below 1,762 1,861
Research and development 65 75
Selling, administration and other expenses* 144 185
Depreciation and amortization 134 144
Interest on long-term and short-term debt 36 41
Other expense - net - 16
INCOME BEFORE PROVISION FOR INCOME TAXES 162 115
Provision for income taxes 48 38
INCOME OF CONSOLIDATED COMPANIES 114 77
Plus: UCC share of net income from
corporate investments carried at equity 22 6
INCOME BEFORE CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE 136 83
Cumulative effect of change in accounting principle - (97)
NET INCOME (LOSS) 136 (14)
Preferred stock dividend, net of taxes 5 5
NET INCOME (LOSS) - COMMON STOCKHOLDERS $ 131 $ (19)
Earnings per common share
Primary
- Income $ 0.83 $ 0.52
- Cumulative effect of change in accounting principle $ - $ (0.66)
- Net income (loss) - common stockholders $ 0.83 $ (0.14)
Fully diluted $ 0.79 $ -
Cash dividends per common share $ 0.375 $ 0.375
* Selling, administration and other expenses include:
Selling $ 61 $ 72
Administration 53 66
Other expenses 30 47
$ 144 $ 185
The Notes to Condensed Consolidated Financial Statements on Pages 7 through 9
should be read in conjunction with this statement.
UNION CARBIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
Millions of dollars
June 30, Dec. 31,
1994 1993
ASSETS
Cash and cash equivalents $ 57 $ 108
Notes and accounts receivable 837 689
Inventories:
Raw materials and supplies 112 104
Work in process 49 52
Finished goods 233 229
394 385
Prepaid expenses 206 247
Total current assets 1,494 1,429
Property, plant and equipment 5,741 5,626
Less: Accumulated depreciation 3,307 3,206
Net fixed assets 2,434 2,420
Companies carried at equity 463 437
Other investments and advances 86 137
Total investments and advances 549 574
Other assets 337 266
Total assets $4,814 $4,689
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 316 $ 310
Short-term debt 120 24
Payments to be made within one year on
long-term debt 12 11
Accrued income and other taxes 144 189
Other accrued liabilities 594 662
Total current liabilities 1,186 1,196
Long-term debt 898 931
Postretirement benefit obligation 496 489
Other long-term obligations 512 379
Deferred credits 232 230
Convertible preferred stock 148 150
Unearned employee compensation (107) (114)
UCC stockholders' equity:
Common stock authorized - 500,000,000 shares
Common stock issued - 154,609,669 shares 155 155
Additional paid-in capital 339 366
Equity adjustment from foreign currency
translation (75) (84)
Retained earnings 1,140 1,067
1,559 1,504
Less: Treasury stock, at cost-4,833,513 shares
(4,062,189 shares in 1993) 110 76
Total UCC stockholders' equity 1,449 1,428
Total liabilities and stockholders' equity $4,814 $4,689
The Notes to Condensed Consolidated Financial Statements on Pages 7 through 9
should be read in conjunction with this statement.
UNION CARBIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Millions of dollars
Six Months ended June 30,
1994 1993
Increase (decrease) in
cash and cash equivalents
OPERATIONS
Income before accounting change $ 136 $ 83
Noncash charges (credits) to net income
Depreciation and amortization 134 144
Deferred income taxes 25 21
Other noncash charges (credits) 2 1
Investing debits to net income (13) 13
Working capital(a) (243) (188)
Long-term assets and liabilities 58 15
Cash Flow From Operations 99 89
INVESTING
Capital expenditures (156) (116)
Investments (38) (25)
Sale of investments 86 -
Sale of fixed and other assets 1 15
Cash Used for Investing (107) (126)
FINANCING
Change in short-term debt (three months or less) 96 (89)
Repayment of short-term debt - (36)
Proceeds from long-term debt - 320
Repayment of long-term debt (32) (218)
Issuance of common stock 42 38
Repurchase of common stock (90) (23)
Payments of dividends (64) (60)
Other 5 (1)
Cash Flow Used for Financing (43) (69)
Effect of exchange rate changes on cash and
cash equivalents - (1)
Change in cash and cash equivalents (51) (107)
Cash and cash equivalents beginning-of-period 108 171
Cash and cash equivalents end-of-period $ 57 $ 64
Cash paid for interest and income taxes
Interest (net of amount capitalized) $ 54 $ 50
Income taxes $ 40 $ 36
_____________
(a) Net change in working capital by component (excluding cash and cash
equivalents, deferred income taxes and short-term debt):
(Increase) decrease in current assets
Notes and accounts receivable $(125) $(108)
Inventories (14) 14
Prepaid expenses 7 42
Decrease in payables and accruals (111) (136)
Working capital $(243) $(188)
The Notes to Condensed Consolidated Financial Statements on Pages 7 through 9
should be read in conjunction with this statement.
UNION CARBIDE CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Consolidated Financial Statements
In the opinion of management, the accompanying unaudited condensed
consolidated financial statements include all adjustments necessary for a
fair statement of the results for the interim periods. These adjustments
consisted of only normal recurring adjustments. On April 27, 1994,
stockholders voted to approve the merger of Union Carbide Corporation
into Union Carbide Chemicals and Plastics Company Inc. (UCC&P). The
merger was effective May 1, 1994. Immediately after the merger, UCC&P
had the same consolidated assets, liabilities and stockholders' equity as
the corporation. UCC&P has changed its name to Union Carbide
Corporation. All references to Union Carbide Corporation, the
corporation or UCC after the periods starting May 1, 1994 shall be a
reference to the merged company. The accompanying statements should be
read in conjunction with the Notes to Financial Statements of Union
Carbide Corporation and Subsidiaries ("the corporation") in the 1993
annual report to stockholders.
2. Union Carbide Corporation, EniChem SpA, to Form Joint Venture
On August 1, 1994 the corporation and EniChem SpA, Milan, Italy,
("EniChem") jointly announced that they intend to form a 50-50 joint
venture to produce and market polyethylene in Europe. The two companies
have signed a memorandum of understanding, and are proceeding with
negotiation of definitive agreements. They anticipate a first quarter
1995 start up of the venture following European Community approval. Under
the proposed agreement, the new company will own EniChem's existing
polyethylene operations in Italy, France and Germany, EniChem's interest
in olefins crackers at Brindisi, Italy and Dunkirk, France, and build a
facility at Brindisi utilizing UCC's UNIPOL PE process technology.
3. Common Stock
On July 27, 1994 the Board of Directors announced that it had authorized
the repurchase of an additional 10 million shares of UCC common stock,
bringing the total number authorized for repurchase to 20 million. The
repurchase program, which began in the first quarter of 1993, is being
carried out over an unlimited period in order to minimize future earnings
dilution due to common stock requirements under certain employee benefit
plans. Through June 30, 1994, the corporation had repurchased 7,181,600
shares at an average effective price of $22.04 per share.
In conjunction with the corporation's common stock buyback program, put
options were sold in a series of private placements entitling the holders
to sell 3,775,000 shares of common stock to UCC, at specified prices if
the holders exercise the options. Since the inception of this program,
through June 30, 1994, options representing 3,013,800 common shares
expired unexercised and options representing 36,200 shares were exercised
at $868,800, or $24.00 per share. Options representing 725,000 shares
remain outstanding at June 30, 1994. Premiums received on these options
reduced the average price of repurchased shares to $22.04 per share from
$22.38 per share.
4. Commitments and Contingencies
The corporation has entered into three agreements for the purchase of
ethylene related products and two agreements for the availability of
terminal storage from facilities located in the U.S. and Canada. The net
present value of the fixed and determinable portion of these obligations
at June 30, 1994 totaled $453 million.
The corporation is subject to loss contingencies resulting from
environmental laws and regulations, which include obligations to remove or
mitigate the effects on the environment of the disposal or release of
certain wastes and substances at various sites. The corporation has
established accruals for those hazardous waste sites where it is probable
that a loss has been incurred and the amount of the loss can be reasonably
estimated. The reliability and precision of the loss estimates are
affected by numerous factors, such as different stages of site evaluation,
the allocation of responsibility among potentially responsible parties and
the assertion of additional claims. The corporation adjusts its accruals
as new remediation requirements are defined, as information becomes
available permitting reasonable estimates to be made, and to reflect new
and changing facts.
At June 30, 1994, the corporation had established environmental
remediation accruals in the amount of $280 million. Approximately
28 percent of the corporation's environmental accrual at June 30, 1994
pertained to closure and postclosure costs for both operating and closed
facilities. In addition, the corporation had environmental loss
contingencies of $135 million.
The corporation had additional contingent obligations at June 30, 1994 of
$103 million, principally related to guarantees of debt, litigation costs
and discounted receivables from customers.
During the first quarter of 1994, the corporation reduced the carrying
value of its stock in Union Carbide India Ltd. to zero. See Note 17 of
Notes to Financial Statements in the corporation's 1993 Annual Report to
Stockholders for information about suits and proceedings arising from or
related to the December 3, 1984 methyl isocyanate incident at the plant at
Bhopal, India, owned and operated by Union Carbide India Limited.
The corporation has provisionally joined the multi-billion dollar silicone
breast implant litigation settlement agreement. Union Carbide's
contribution to the settlement will be $138 million over the next several
years. The corporation has previously taken before-tax charges
aggregating $35 million for this litigation. Although insurance coverage
is subject to issues as to scope and application of policies, retention
limits, exclusions and policy limits, and the insurers have reserved their
rights to deny coverage, the corporation believes that after probable
insurance recoveries, the settlement will not have a material effect on
the company's earnings in the future. The corporation was not a
manufacturer of breast implants but did supply generic bulk silicone
materials to the industry.
The settlement is subject to fairness hearings and possible challenges
that might delay implementation or require settlement terms to be
reconsidered. Both the corporation and the other companies which are
parties to the agreement have the right to withdraw from the settlement
if, in their individual judgment, there are too few recipients of breast
implants covered by the final settlement.
In addition to the above, the corporation and its consolidated subsidiaries
are involved in a number of legal proceedings and claims with both private
and governmental parties. These cover a wide range of matters including,
but not limited to: product liability; governmental regulatory proceedings;
health, safety and environmental matters; employment; patents; contracts and
taxes. In some of these legal proceedings and claims, the remedies that may
be sought or damages claimed are substantial.
While it is impossible at this time to determine with certainty the
ultimate outcome of any legal proceedings and claims referred to in this
note, management believes that adequate provisions have been made for
probable losses with respect thereto and that such ultimate outcome, after
provisions therefor, will not have a material adverse effect on the
consolidated financial position of the corporation but could have a
material effect on consolidated results of operations in a given quarter
or year. Should any losses be sustained in connection with any of such
legal proceedings and claims, in excess of provisions therefor, they will
be charged to income in the future.
DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
Overview
The corporation reported second quarter, 1994 net income available to common
stockholders of $70 million, or $0.44 per share primary ($0.42 per share fully
diluted). For the first six months of 1994 net income available to common
stockholders was $131 million, or $0.83 per share primary ($0.79 per share
fully diluted).
For the corresponding quarter in 1993 the corporation reported earnings of $38
million, or $0.24 per share primary and fully diluted. For the first six
months of 1993 the corporation had a loss of $19 million, or $0.14 per share
primary, which included a noncash after-tax charge of $97 million, or $0.66
per share primary, for the adoption of FAS 112. Excluding the accounting
change, net income available to common shareholders was $78 million, or $0.52
per share.
The earnings improvement quarter to quarter resulted from higher volumes for
the corporation's key products, and higher prices for high density and linear
low density polyethylene. Also contributing were continued good results from
licensing activities, lower overhead and improved results from the UCAR
International joint venture.
While the first six months of 1994 have shown considerable improvement over
the corresponding period in 1993, the corporation is uncertain whether a
sustained upturn in the industry has begun. Prices and margins may come under
pressure by the end of 1994, for one or more quarters, as additional ethylene
and derivatives capacity comes on line.
Results of Operations
Sales decreased 5 percent in the second quarter of 1994 and also for the first
six months of the year over the previous year's comparable periods largely due
to the absence of sales from the OrganoSilicon (OSi) specialty chemicals
business, sold in July, 1993. Excluding OSi from those same periods, sales
rose 2 percent as volumes for the corporation's key products improved.
The corporation's variable margin for the second quarter of 1994 was
45.2 percent, higher than the 44.6 percent in the second quarter of 1993. For
the first six months of the year variable margin ran at 45.9 percent versus
46.0 percent last year. Excluding the higher margin OSi products from the
1993 totals, variable margin in 1993 for the second quarter was 43.4 percent
and for the first six months was 44.9 percent. Gross margin for the second
quarter of 1994 improved to 23.0 percent from 22.1 percent in the second
quarter of 1993. For the six month period ending June 30, 1994 gross margin
was 23.5 percent versus 23.6 percent in the comparable period in 1993. When
excluding the OSi business for 1993, gross margin in the second quarter was
20.8 percent and for the first six months, 22.6 percent. Selling,
administration and other expenses continued to fall over comparable periods,
even after considering the absence of the OSi business.
Partnership income rose slightly in the second quarter of 1994 over the same
period in 1993; on a comparable six month basis it was $20 million ahead of
1993's pace. Other expense (income)-net in the second quarter of 1993
contained a $9 million before tax loss on the sale of the corporation's
investment in Vitaphore Inc. In the first six months of 1994 the corporation
recorded the following items within other expense (income) - net: a
$24 million charge for the write-off of its investment in India and associated
costs; a $12 million charge on the proposed sale of the corporation's uranium
mill and certain uranium mines to Energy Fuels, Ltd.; and a $24 million gain
on the sale of its preferred stock investment in OSi Specialties, Inc.
Interest expense rose slightly in the second quarter of 1994 over 1993 due to
rising interest rates.
Earnings from the corporation's investments carried at equity continued to
show strong improvement on a comparative basis for the quarter and first six
months of 1994, with UCAR International, Inc. being the major contributor.
Estimates of future expenses related to environmental protection for
compliance with Federal, state and local laws regulating solid and hazardous
wastes and discharge of materials to air and water, as well as for waste site
remedial activities, and of future capital expenditures relating to
environmental protection, have not changed materially since December 31, 1993.
The reliability and precision of the loss estimates are affected by numerous
factors, such as different stages of site evaluation, the allocation of
responsibility among potentially responsible parties and the assertion of
additional claims.
The corporation has provisionally joined the multi-billion dollar silicone
breast implant litigation settlement agreement. This litigation is discussed
in more detail in the "Commitments and Contingencies" footnote to the
financial statements on pages 8 and 9 of this report on Form 10-Q.
Financial Condition - June 30, 1994
Cash flow from operations rose $10 million in the first six months of 1994
over the comparable period in 1993 due to improved operating results. A
decrease in the corporation's overheads coupled with improvement in volumes
for its key products contributed to this increase.
Cash flow used for investing for the first six months of 1994 of $107 million
was $19 million lower compared to the similar period in 1993. Included
through June 30, 1994 were proceeds of $86 million from the sale of the
corporation's preferred stock investment in OSi Specialties, Inc. Capital
spending increased by $40 million primarily on new projects, including the
UNIPOL II unit at the Star, LA plant and the butanol unit at the Taft, LA
plant, and an investment in a Brazilian ethylene company. On August 1, 1994
the corporation and EniChem SpA jointly announced their intention to form a
joint venture to produce and market polyethylene in Europe. The corporation
expects its cash investment to total approximately $200 million and be
financed through operations and short-term borrowings.
Through June 30, 1994 cash flow used for financing was $43 million compared to
$69 million in 1993. In 1994 the corporation repurchased $90 million in
common stock and redeemed its 5.3 percent sinking fund debentures due 1997 for
$26 million. These actions were financed through operations and short-term
borrowings. In the first six months of 1993, the corporation redeemed for
cash $12 million in senior debentures and $84 million of the outstanding
$345 million 7.5 percent convertible debentures, of which the remaining
$261 million was converted into common stock. The 1993 redemptions were
financed through a two-part public debt offering totaling $300 million.
During the first half of 1994, the corporation terminated substantially all of
its financial instruments used as hedges to manage exposure to financial
market risk caused by interest rate fluctuations. A net charge of $19 million
($13 million after tax) resulting from such terminations is deferred and will
be amortized to interest expense over the remaining terms of the underlying
instruments, which had various maturity dates through the year 2002. The
corporation also unwound its positions in financial instruments which were
designed to reduce earnings fluctuations due to business conditions. During
the first half of 1994, the corporation recorded a net charge of $4 million
after tax relating to these activities.
The corporation's ratio of debt to capital increased to 41.5 percent at
June 30, 1994 from 40.3 percent at December 31, 1993. At June 30, 1994 there
were no outstanding borrowings under the existing major bank credit agreement
of $600 million.
Cash dividends to UCC common stockholders amounted to $57 million.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
See Note 4 to the corporation's consolidated financial statements
on page 8 and 9 of this 10-Q Report.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
The following exhibit is filed as part of this report:
11 - Computation of Earnings Per Share.
(b) No reports on Form 8-K were filed for the three-months ended
June 30, 1994. The corporation's Form 8-K dated August 3, 1994
reported the joint announcement by the corporation and EniChem
SpA of their intention to form a joint venture to produce and
market polyethylene in Europe.
SIGNATURE
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 thereunto duly authorized.
UNION CARBIDE CORPORATION
(Registrant)
Date: August 11, 1994 By: JOHN K. WULFF
John K. Wulff
Vice-President, Controller
and Principal Accounting
Officer
EXHIBIT INDEX
Exhibit Page
No. Exhibit No.
11 Computation of Earnings Per Share 16
<TABLE>
Exhibit 11
UNION CARBIDE CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In millions of dollars except per share amounts)
<CAPTION>
Quarter Ended June 30, Six Months Ended June 30,
1994 1993 1994 1993
Earnings Per Share - Primary
<S> <C> <C> <C> <C>
Income $ 73 $ 41 $ 136 $ 83
Less: Preferred stock dividend 4 4 7 6
Net income available to common stockholders
for primary income calculation 69 37 129 77
Cumulative effect of accounting change - - - (97)
Net income (loss) - common stockholders $ 69 $ 37 129 $ (20)
Weighted average number of common
and common equivalent shares applicable
to primary earnings per share calculation
Weighted average number of shares outstanding 151,151,303 151,330,903 151,106,994 144,186,411
Dilutive effect of stock options 4,062,767 3,620,713 4,014,959 3,566,474
155,214,070 154,951,616 155,121,953 147,752,885
Earnings per share - primary
Income $ 0.44 $ 0.24 $ 0.83 $ 0.52
Cumulative effect of accounting change - - - (0.66)
Net income (loss) - common stockholders $ 0.44 $ 0.24 $ 0.83 $(0.14)
Earnings Per Share Assuming Full Dilution
Income $ 73 $ 41 $ 136 $ 83
Plus: Interest on convertible debentures -
(net of taxes) - - - 4
Less: Additional ESOP contribution resulting from
assumed conversion of preferred stock - - - -
Income for fully diluted income calculation 73 41 136 87
Cumulative effect of accounting change - - - (97)
Net income (loss) for fully diluted income calculation $ 73 $ 41 136 (10)
Weighted average number of common
and common equivalent shares applicable to
fully diluted earnings per share calculation
Weighted average number of shares outstanding 151,151,303 151,330,903 151,106,994 144,186,411
Dilutive effect of stock options 4,077,109 3,669,874 4,229,726 3,887,989
Shares issuable upon conversion of UCC
convertible debentures - - - 9,040,165
Shares issuable upon conversion of UCC
convertible preferred stock 16,563,259 16,828,734 16,606,148 16,843,164
171,791,671 171,829,511 171,942,868 173,957,729
Per share assuming full dilution
Income $ 0.42 $ 0.24 $ 0.79 $ 0.50
Cumulative effect of accounting change - - - (0.56)
Net income (loss) $ 0.42 $ 0.24 $ 0.79 $(0.06)*
<FN>
* Fully diluted per share amounts are not presented in the Condensed Consolidated
Statement of Income where amounts are antidilutive.
</TABLE>
