<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 2000 Commission file number 000-21109
CUNO INCORPORATED
(Exact name of registrant as specified in its charter)
Delaware 06-1159240
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
400 Research Parkway, Meriden, Connecticut 06450
(Address of principal executive offices) (Zip Code)
(203) 237-5541
Registrant's telephone number, including area code
Not Applicable
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 periods 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 practical date.
Common Stock, .001 Par Value -- 16,316,426 shares as of January 31, 2000
<PAGE> 2
CUNO INCORPORATED
<TABLE>
<CAPTION>
Page
----
<S> <C>
Part I. Financial Information
Item 1. Condensed Consolidated Financial Statements (Unaudited)
Consolidated Statements of Income - Three months ended January 31, 2000 and 1999 1
Consolidated Balance Sheets - January 31, 2000 and October 31, 1999 2
Consolidated Statements of Cash Flows - Three months ended January 31, 2000 and 1999 3
Notes to Unaudited Condensed Consolidated Financial Statements 4
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
</TABLE>
<PAGE> 3
CUNO INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands, except share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JANUARY 31,
2000 1999
------------ ------------
<S> <C> <C>
Net sales $ 57,734 $ 50,626
Less costs and expenses:
Cost of products sold 33,409 30,760
Selling, general and administrative expenses 15,781 14,320
Research, development and engineering 3,135 2,852
------------ ------------
52,325 47,932
------------ ------------
Operating income 5,409 2,694
Nonoperating income (expense):
Interest expense (241) (358)
Other income, net 104 169
------------ ------------
(137) (189)
------------ ------------
Income before income taxes 5,272 2,505
Provision for income taxes 2,014 917
------------ ------------
Net income $ 3,258 $ 1,588
============ ============
Basic earnings per common share $ 0.20 $ 0.10
Diluted earnings per common share $ 0.20 $ 0.10
Basic shares outstanding 16,162,419 16,034,555
Diluted shares outstanding 16,516,744 16,199,556
</TABLE>
See notes to unaudited condensed consolidated financial statements.
-1-
<PAGE> 4
CUNO INCORPORATED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share amounts)
<TABLE>
<CAPTION>
JANUARY 31, OCTOBER 31,
2000 1999
----------- -----------
<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 3,878 $ 6,186
Accounts receivable, less allowances for
doubtful accounts of $1,714 and $1,706, respectively 46,864 50,777
Inventories 29,111 29,246
Deferred income taxes 8,029 8,606
Prepaid expenses and other current assets 2,405 2,434
--------- ---------
Total current assets 90,287 97,249
Noncurrent assets
Deferred income taxes 1,448 1,598
Intangible assets, net 22,189 22,567
Other noncurrent assets 2,844 2,576
Property, plant and equipment, net 60,149 60,352
--------- ---------
Total assets $ 176,917 $ 184,342
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Bank loans $ 18,527 $ 19,189
Accounts payable 15,677 16,716
Accrued payroll and related taxes 8,191 11,790
Other accrued expenses 7,470 8,002
Accrued income taxes 3,444 3,750
Current portion of long-term debt 1,980 2,493
--------- ---------
Total current liabilities 55,289 61,940
Noncurrent liabilities
Long-term debt, less current portion 4,780 8,761
Deferred income taxes 4,648 4,750
Retirement benefits 4,568 4,317
--------- ---------
Total noncurrent liabilities 13,996 17,828
Stockholders' equity
Preferred Stock, $.001 par value; 2,000,000 shares
authorized, no shares issued -- --
Common Stock, $.001 par value; 50,000,000 shares authorized,
16,316,426 and 16,342,952 shares issued and outstanding
(excluding 4,328 shares in treasury) 16 16
Additional paid-in-capital 39,832 39,779
Unearned compensation (2,447) (2,568)
Accumulated other comprehensive income --
foreign currency translation adjustments 66 440
Retained earnings 70,165 66,907
========= =========
Total stockholders' equity 107,632 104,574
--------- ---------
Total liabilities and stockholders' equity $ 176,917 $ 184,342
========= =========
</TABLE>
See notes to unaudited condensed consolidated financial statements.
-2-
<PAGE> 5
CUNO INCORPORATED
STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)
(dollars in thousands)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JANUARY 31,
2000 1999
------- -------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 3,258 $ 1,588
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 2,129 2,054
Noncash compensation recognized under employee stock plans 236 240
Gain on sale of property, plant and equipment (16) (1)
Pension costs in excess of funding 357 427
Deferred income taxes 545 520
Changes in operating assets and liabilities:
Accounts receivable 3,005 2,660
Inventories (314) 792
Prepaid expenses and other current assets 159 (561)
Accounts payable and accrued expenses (3,542) (2,485)
Accrued income taxes (359) (510)
------- -------
Net cash provided by operating activities 5,458 4,724
INVESTING ACTIVITIES
Proceeds from sales of property, plant and equipment 21 --
Capital expenditures (2,101) (3,085)
------- -------
Net cash used for investing activities (2,080) (3,085)
FINANCING ACTIVITIES
Proceeds from long-term debt -- 1,600
Principal payments on long-term debt (4,412) (5,347)
Net borrowings under bank loans (138) 658
Retirement of Common Stock (1,154) --
------- -------
Net cash used for financing activities (5,704) (3,089)
Effect of exchange rate changes on cash and cash equivalents 18 58
------- -------
Net change in cash and cash equivalents (2,308) (1,392)
Cash and cash equivalents -- beginning of period 6,186 4,433
------- -------
Cash and cash equivalents -- end of period $ 3,878 $ 3,041
======= =======
</TABLE>
See notes to unaudited condensed consolidated financial statements.
-3-
<PAGE> 6
CUNO INCORPORATED
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2000
NOTE 1 - BUSINESS AND BASIS OF PRESENTATION
CUNO Incorporated (the "Company" or "CUNO") designs, manufactures and
markets a comprehensive line of filtration products for the separation,
clarification and purification of liquids and gases. The Company's products,
which include proprietary depth filters and semi-permeable membrane filters, are
sold in the healthcare, fluid processing and potable water markets throughout
the world.
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three-month period
ended January 31, 2000 are not necessarily indicative of the results that may be
expected for the year ending October 31, 2000. For further information, refer to
the consolidated financial statements and footnotes thereto included in the
Company's Form 10-K for the year ended October 31, 1999.
NOTE 2 - EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted
earnings per share for the three months ended:
<TABLE>
<CAPTION>
JANUARY 31, JANUARY 31,
2000 1999
------------ ------------
<S> <C> <C>
NUMERATOR:
Net income $ 3,258,000 $ 1,588,000
============ ============
DENOMINATORS:
Weighted average shares outstanding 16,309,967 16,168,961
Issued but unearned performance shares (69,222) (91,553)
Issued but unearned restricted shares (78,326) (42,853)
------------ ------------
DENOMINATOR FOR BASIC EARNINGS PER SHARE 16,162,419 16,034,555
============ ============
Weighted average shares outstanding 16,309,967 16,168,961
Effect of dilutive employee stock options 206,777 30,595
------------ ------------
DENOMINATOR FOR DILUTED EARNINGS PER SHARE 16,516,744 16,199,556
============ ============
Basic earnings per share $ 0.20 $ 0.10
Diluted earnings per share $ 0.20 $ 0.10
</TABLE>
4
<PAGE> 7
NOTE 3 - INVENTORIES
Inventories consist of the following (amounts in thousands):
<TABLE>
<CAPTION>
JANUARY 31, OCTOBER 31,
2000 1999
----------- -----------
<S> <C> <C>
Raw materials $12,792 12,399
Work-in-process 2,885 3,197
Finished goods 13,434 13,650
------- -------
$29,111 $29,246
======= =======
</TABLE>
Inventories are stated at the lower of cost or market. Inventories in
the United States are primarily valued by the last-in, first-out (LIFO) cost
method. The primary method used for all other inventories is first-in, first-out
(FIFO). An actual valuation of inventory under the LIFO method can be made only
at the end of each year based on the inventory levels and costs at that time.
Accordingly, interim LIFO calculations must necessarily be based on management's
estimates of expected year-end inventory levels and costs. Because these are
subject to many factors beyond management's control, interim results are subject
to the final year-end LIFO inventory valuation.
NOTE 4 - COMPREHENSIVE INCOME (LOSS)
Total comprehensive income (loss) was comprised of the following
(amounts in thousands):
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JANUARY 31, JANUARY 31,
2000 1999
------- -------
<S> <C> <C>
Net income $ 3,258 $ 1,588
Other comprehensive loss - foreign
currency translation adjustments (374) (2,217)
------- -------
Total comprehensive income (loss) $ 2,884 $ (629)
======= =======
</TABLE>
5
<PAGE> 8
NOTE 5 - SEGMENT DATA
For management reporting and control, the Company is divided into five
geographic operating segments as presented below. Each segment has general
operating autonomy over its markets.
Operating segment data includes the results of all subsidiaries,
consistent with the management reporting of these operations. Financial
information by geographic operating segments as of and for the three months
ended January 31 is summarized below (amounts in thousands):
<TABLE>
<CAPTION>
JANUARY 31,
2000 1999
-------- --------
<S> <C> <C>
NET SALES:
North America $ 37,584 $ 32,631
Europe 8,833 9,993
Japan 8,667 6,849
Asia/Pacific 6,163 5,665
Latin America 4,092 2,929
Elimination of intercompany sales (7,605) (7,441)
-------- --------
Consolidated $ 57,734 $ 50,626
======== ========
</TABLE>
<TABLE>
<CAPTION>
JANUARY 31,
2000 1999
-------- --------
<S> <C> <C>
OPERATING INCOME (LOSS):
North America $ 3,454 $ 1,494
Europe 47 116
Japan 488 (10)
Asia/Pacific 898 725
Latin America 522 369
-------- --------
Segment total 5,409 2,694
-------- --------
Interest expense (241) (358)
Other income, net 104 169
-------- --------
Income before income taxes $ 5,272 $ 2,505
======== ========
</TABLE>
- - Interest expense and other income (expense) have not been allocated to
segments.
<TABLE>
<CAPTION>
JANUARY 31, OCTOBER 31,
2000 1999
--------- ---------
<S> <C> <C>
ASSETS:
North America $ 143,769 $ 144,385
Europe 20,805 24,028
Japan 29,321 31,558
Asia/Pacific 13,553 13,239
Latin America 7,436 5,763
General Corporate 3,878 6,186
Eliminations and other (41,845) (40,817)
--------- ---------
Consolidated $ 176,917 $ 184,342
========= =========
</TABLE>
- - General Corporate assets (principally cash and investments) are not
allocated to segments.
- - Eliminations and other is primarily comprised of intercompany
receivables and investments in subsidiaries, both of which are
eliminated in the Company's consolidated financial statements.
6
<PAGE> 9
NOTE 6 - OTHER INCOME, NET
Other income, net consisted of the following (amounts in thousands):
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JANUARY 31, JANUARY 31,
2000 1999
----------- -----------
<S> <C> <C>
Interest income $ 52 $ 45
Exchange gains 20 213
Gains on sale of property, plant and equipment 16 1
Other income (expenses) 16 (90)
----- -----
$ 104 $ 169
===== =====
</TABLE>
7
<PAGE> 10
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
THREE MONTH PERIOD ENDED JANUARY 31, 2000 VS. THREE MONTH PERIOD ENDED JANUARY
31, 1999
NET SALES
The Company had net sales of $57.7 million in the first quarter of
fiscal 2000 representing a 14.0 percent increase over 1999's first quarter sales
of $50.6 million. The majority of this improvement can be attributed to an
increase in the unit volume of worldwide sales. Had currency values been
unchanged from the first quarter of fiscal 1999, net sales for the first quarter
of 2000 would have been $1.9 million higher, or 17.7 percent greater overall
than the comparable period in fiscal 1999.
<TABLE>
<CAPTION>
THREE MONTHS ENDED CURRENCY
JANUARY 31, JANUARY 31, PERCENT ADJUSTED
2000 1999 CHANGE CHANGE
---- ---- ------ ------
<S> <C> <C> <C> <C>
North America $32,127 $28,176 14.0% 14.0%
Europe 7,451 7,730 (3.6%) 10.2%
Japan 8,535 6,671 27.9% 14.3%
Asia/Pacific 5,730 5,186 10.5% 9.1%
Latin America 3,891 2,863 35.9% 92.1%
------- ------- ---- ----
Total sales $57,734 $50,626 14.0% 17.7%
======= ======= ==== ====
</TABLE>
North American sales increased 14.0 percent in the first quarter as
compared to the same quarter in 1999. The potable water market was responsible
for much of this growth, however both the fluid processing and healthcare
markets in North America had increased sales quarter over quarter. The Water
Group (within the potable water market) continued to record strong sales with
its series of new filters designed for various OEM customers with final sales to
US consumers. Sales in Europe were down 3.6 percent as compared to the same
period in 1999, but up 10.2 percent when expressed in local currency. All three
market segments in this region posted gains, on a local currency basis, over the
comparable period last year. Sales in Japan were 27.9 percent higher as compared
to the same quarter last year, and 14.3 percent higher when expressed in local
currency, reflecting double-digit sales growth in all three markets.
Asia/Pacific sales increased by 10.5 percent as compared to the same quarter
last year and, excluding changes in currency values over the period, increased
9.2 percent. The majority of the increase in Asia/Pacific is due to the slowly
recovering economy in Southeast Asia after nearly two years of recession. First
quarter Latin American sales increased 35.9 percent as compared to the same
period in 1999, and 92.1 percent when expressed in local currency. This increase
was primarily driven by a large contract completed and shipped in the first
quarter of 2000.
8
<PAGE> 11
The following table displays the Company's sales by market (amounts in
thousands):
<TABLE>
<CAPTION>
THREE MONTHS ENDED CURRENCY
JANUARY 31, JANUARY 31, PERCENT ADJUSTED
2000 1999 CHANGE CHANGE
---- ---- ------ ------
<S> <C> <C> <C> <C>
Potable Water $23,430 $20,471 14.5% 16.3%
Fluid Processing 19,505 17,055 14.4% 19.0%
Healthcare 14,799 13,100 13.0% 18.2%
------ ------ ---- ----
Total sales $57,734 $50,626 14.0% 17.7%
======= ======= ===== =====
</TABLE>
Although, on a currency adjusted basis, all geographic operating
segments experienced sales increases in the potable water segment, the increase
was primarily driven by strong sales in North America associated to OEM
customers, direct marketing companies, and appliance manufacturers. Similarly,
on a currency adjusted basis, all geographic operating segments experienced
sales increases in the fluid processing market. These increases reflect the
strengthening worldwide demand in the electronics and oil & gas markets. Also,
on a currency adjusted basis, all geographic operating segments experienced
sales increases in the healthcare market. This market continues to reflect sound
business conditions and a focus by management on competitively favorable niches.
GROSS PROFIT
The Company's gross profit increased $4.5 million to $24.3 million in
the first quarter of 2000 from $19.9 million in the first quarter of 1999. Gross
profit as a percentage of net sales (gross margin) increased during that same
period from 39.2 percent in 1999 to 42.1 percent in 2000. Several factors
contributed to the lower gross margin in 1999, chief among these were start-up
costs associated with a new product in the Water Group, higher manufacturing
costs in the US membrane operation associated with the introduction of a new
manufacturing process, and pricing pressure on certain products sold in Japan.
OPERATING EXPENSES
Selling, general and administrative expenses increased $1.5 million or
10.2 percent in the first quarter of 2000 as compared to the first quarter of
1999. Selling expenses increased $0.7 million due primarily to sales force
additions and normal incentive and inflation-based wage increases.
Administrative expenses increased $0.5 million due to expansions in the employee
base and inflation-based wage increases. Research, development and engineering
expenses increased $0.3 million or 9.9 percent in the first quarter as compared
to the prior year reflecting the Company's continued focus on the development of
new products and technologies.
OPERATING INCOME
As a result of the above, operating income increased $2.7 million, or
100.8 percent, to $5.4 million or 9.4 percent of sales in the first quarter of
2000 as compared to $2.7 million or 5.3 percent of sales in the first quarter of
1999.
9
<PAGE> 12
NONOPERATING ACTIVITY
Interest expense was down slightly ($0.1 million) quarter over quarter
as the level of debt outstanding decreased. See "Financial Position and
Liquidity" below. As detailed in Note 6 to the condensed consolidated financial
statements, other income, net was relatively flat quarter over quarter as no
material activity occurred in either of the two quarters.
INCOME TAXES
The Company's effective income tax rate for the first quarter of 2000
was 38.2% compared to 36.6% in the first quarter of 1999. The increase primarily
reflects a change in the mix of income attributed to the various countries in
which the Company does business and their associated tax rates.
FINANCIAL POSITION AND LIQUIDITY
The Company assesses its liquidity in terms of its ability to generate
cash to fund operating and investing activities. Of particular importance to the
management of liquidity are cash flows generated by operating activities,
capital expenditure levels, and adequate bank financing alternatives.
The Company manages its worldwide cash requirements considering the
cost effectiveness of the funds available from the many subsidiaries through
which it conducts its business. Management believes that its existing cash
position and available sources of liquidity are sufficient to meet current and
anticipated requirements for the foreseeable future.
Set forth below is selected key cash flow data (in thousands of
dollars):
<TABLE>
<CAPTION>
Source/(Use) of Cash THREE MONTHS ENDED
JANUARY 31,
2000 1999
---- ----
<S> <C> <C>
OPERATING ACTIVITIES:
Net cash provided by net income plus depreciation,
amortization and non-cash compensation $ 5,623 $ 3,882
Accounts receivable 3,005 2,660
Inventories (314) 792
Net cash provided by operating activities 5,458 4,724
INVESTING ACTIVITIES:
Capital expenditures (2,101) (3,085)
FINANCING ACTIVITIES:
Net change in total debt (4,550) (3,089)
Retirement of Common Stock (1,154) --
</TABLE>
The net cash provided by net income plus depreciation, amortization and
non-cash compensation is an important measurement of cash generated from the
earnings process before significant non-cash charges. Net income plus
depreciation, amortization and non-cash compensation of $5.6 million increased
44.8 percent in the first quarter of 2000 as compared to 1999 reflecting the
Company's increased sales volume and improved gross profit margin as previously
discussed above. The net source of $3.0 million generated from accounts
receivable reflects the Company's strong management of worldwide receivables,
and
10
<PAGE> 13
compares favorably to the general increase in sales levels. The net use of $0.3
million applicable to inventories reflects the Company's consistent growth in
sales and concomitant increase, although at a lessor rate, in inventories.
During the first quarter of 2000, a significant portion of the Company's
outstanding performance shares vested. In connection therewith, the Company
utilized $1.2 million in cash to pay applicable employee withholding taxes on
the common shares earned in return for shares of the Company's Common Stock then
retired.
Capital expenditures amounted to $2.1 million in the first three months
of 2000 and were primarily comprised of building additions and purchases of
machinery and equipment for the expansion of manufacturing capabilities. In the
second quarter of fiscal 2000, the Company may be required to make contingent
consideration payments of up to $3.0 million related to the acquisition of
Chemical Engineering Corporation. Any such payments will be recorded as
additional goodwill.
Due largely to the Company's continued strong cash flows from operating
activities ($5.5 million) in the first three months of 2000, the Company was
able to reduce its long-term debt and bank loans by $4.6 million.
OTHER MATTERS
COMPLIANCE WITH YEAR 2000
In prior years, the Company discussed the nature and progress of its
plans to become Year 2000 ready. In 1999, the Company completed its remediation
and testing of systems. As a result of those planning and implementation
efforts, the Company experienced no significant disruptions in critical
information technology and non-information technology systems and believes those
systems successfully responded to the Year 2000 date change. The Company is not
aware of any material problems resulting from Year 2000 issues, either with its
products, its internal systems, or the products and services of third parties.
The Company will continue to monitor its critical computer applications and
those of its suppliers and vendors throughout the year 2000 to ensure that any
latent Year 2000 matters that may arise are addressed promptly.
EUROPEAN ECONOMIC AND MONETARY UNION
On January 1, 1999, the Euro became the official currency of the
European Economic and Monetary Union (the "Union"). Companies in the Union may
begin conducting their business operations in the new currency, however, the
previous local currencies in those countries may also continue to be used as
legal tender through January 1, 2002.
The Company has implemented its program to accommodate the new
currency. Software used by the Company at its European facilities is capable of
handling multi-currencies, including the Euro. As such, the Company is able to
accept customer or supplier orders in either the new Euro or the previous local
currency. The Company continues to address the Euro's impact on its operations
(e.g. banking, payroll processing, pricing, currency hedging requirements, etc.)
The estimated costs of any remaining required system modifications and other
operational changes are not expected to be material to the Company.
MARKET RISK DISCLOSURES
11
<PAGE> 14
There have been no material changes in the information reported in the
Company's Form 10-K for the year ended October 31, 1999 under the "Market Risk
Disclosures" section of Management's Discussion and Analysis of Financial
Condition and Results of Operations.
FORWARD LOOKING INFORMATION
The Company wants to provide stockholders and investors with more
meaningful and useful information and therefore, this quarterly report describes
the Company's belief regarding business conditions and the outlook for the
Company, which reflects currently available information. These forward looking
statements are subject to risks and uncertainties which, as described in
Management's Discussion and Analysis in the Company's Annual Report on Form 10-K
for the year ended October 31, 1999, could cause the Company's actual results or
performance to differ materially from those expressed herein. The Company
assumes no obligation to update the information contained in this quarterly
report.
12
<PAGE> 15
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Documents filed as part of this report.
Exhibit 27. Financial Data Schedule (submitted electronically herewith)
(b) Reports on Form 8-K
No reports were filed on Form 8-K during the quarter for which this 10-Q is
filed.
13
<PAGE> 16
SIGNATURES
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.
CUNO INCORPORATED
Date March 1, 2000
----------------
By /s/ Frederick C. Flynn, Jr.
---------------------------
Frederick C. Flynn, Jr.
Senior Vice President -
Finance and Administration,
Chief Financial Officer,
Treasurer and Assistant Secretary
By /s/ Timothy B. Carney
---------------------------
Timothy B. Carney
Vice President, Controller,
and Assistant Secretary
14
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001019779
<NAME> CUNO, INC.
<MULTIPLIER> 1,000
<CURRENCY> US DOLLAR
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-2000
<PERIOD-START> NOV-01-1999
<PERIOD-END> JAN-31-2000
<EXCHANGE-RATE> 1
<CASH> 3,878
<SECURITIES> 0
<RECEIVABLES> 48,578
<ALLOWANCES> 1,714
<INVENTORY> 29,111
<CURRENT-ASSETS> 90,287
<PP&E> 110,598
<DEPRECIATION> 58,449
<TOTAL-ASSETS> 176,917
<CURRENT-LIABILITIES> 55,289
<BONDS> 4,780
0
0
<COMMON> 16
<OTHER-SE> 107,616
<TOTAL-LIABILITY-AND-EQUITY> 176,917
<SALES> 57,734
<TOTAL-REVENUES> 57,734
<CGS> 33,409
<TOTAL-COSTS> 33,409
<OTHER-EXPENSES> 18,916
<LOSS-PROVISION> 136
<INTEREST-EXPENSE> 241
<INCOME-PRETAX> 5,272
<INCOME-TAX> 2,014
<INCOME-CONTINUING> 3,258
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,258
<EPS-BASIC> 0.20
<EPS-DILUTED> 0.20
</TABLE>
