<PAGE> 1
FORM 10-Q
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(MARK ONE)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the Quarter Ended June 30, 1998
---------------
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: 333-15789
-------------------
ChemFirst Inc.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Mississippi 64-0679456
- -------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
700 North Street, Jackson, MS 39202-3095
- -------------------------------------------------------------------------------
(Address of principal (Zip Code)
executive offices)
Registrant's Telephone Number, including Area Code: 601/948-7550
----------------------------
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 [ ]
Class Outstanding at July 31, 1998
- -------------------------------- --------------------------------
Common Stock, $1 Par Value 18,996,672
<PAGE> 2
Part I. Financial Information
Item 1. Financial Statements
ChemFirst Inc.
Consolidated Balance Sheets (Unaudited)
(In Thousands of Dollars)
<TABLE>
<CAPTION>
June 30 Dec. 31
1998 1997
---------- ----------
<S> <C> <C>
Assets:
Current assets
Cash and cash equivalents $ 8,027 7,766
Accounts receivable 69,819 77,526
Inventories:
Finished products 37,584 30,022
Work in process 32,197 21,768
Raw materials and supplies 23,471 23,592
---------- ----------
Total inventories 93,252 75,382
---------- ----------
Prepaid expenses and other current assets 12,365 12,741
---------- ----------
Total current assets 183,463 173,415
---------- ----------
Investments and other assets 50,403 57,455
Property, plant and equipment 390,945 366,876
Less: accumulated depreciation and amortization 150,827 138,400
---------- ----------
Property, plant and equipment, net 240,118 228,476
---------- ----------
$ 473,984 459,346
========== ==========
Liabilities and Stockholders' Equity:
Current liabilities
Notes payable $ -- 20,700
Current installments of long-term debt 708 878
Deferred revenue 4,457 2,964
Accounts payable 30,282 46,229
Accrued expenses and other current liabilities 27,545 24,585
---------- ----------
Total current liabilities 62,992 95,356
---------- ----------
Long-term debt 59,682 4,865
Deferred revenue and other liabilities 26,019 19,076
Deferred income taxes 19,220 18,352
Minority interest 700 --
Stockholders' equity:
Common stock 19,053 20,031
Additional paid-in capital 20,083 18,869
Retained earnings 266,235 282,797
---------- ----------
Total stockholders' equity 305,371 321,697
---------- ----------
$ 473,984 459,346
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 3
ChemFirst Inc.
Consolidated Statements of Operations (Unaudited)
(In Thousands of Dollars and Shares, Except Per Share Amounts)
<TABLE>
<CAPTION>
3 Months Ended 6 Months Ended
June 30 June 30
------------------------- -------------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues:
Sales $ 115,958 111,179 227,326 221,899
Interest and other income 1,088 1,309 10,679 3,715
---------- ---------- ---------- ----------
117,046 112,488 238,005 225,614
---------- ---------- ---------- ----------
Costs and expenses:
Cost of sales 90,242 85,611 176,672 170,729
General, selling and
administrative expenses 16,713 15,094 32,356 28,757
Other operating expenses 3,135 1,531 5,938 3,046
Interest expense 472 142 567 225
---------- ---------- ---------- ----------
110,562 102,378 215,533 202,757
---------- ---------- ---------- ----------
Earnings before income taxes 6,484 10,110 22,472 22,857
Income tax expense 2,530 3,992 8,765 9,028
Equity in net earnings of equity investees -- 1,757 -- 2,165
---------- ---------- ---------- ----------
Net earnings $ 3,954 7,875 13,707 15,994
========== ========== ========== ==========
Earnings per common share $ 0.20 0.39 0.70 0.78
========== ========== ========== ==========
Average shares outstanding 19,494 20,410 19,690 20,512
Earnings per common share, assuming dilution $ 0.20 0.38 0.69 0.76
========== ========== ========== ==========
Average shares outstanding 19,789 20,909 19,998 20,995
Cash dividend declared
per share $ 0.10 0.10 0.20 0.20
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 4
ChemFirst Inc.
Consolidated Statements of Cash Flows (Unaudited)
(In Thousands of Dollars)
<TABLE>
<CAPTION>
June 30
--------------------------
1998 1997
---------- ----------
<S> <C> <C>
Cash flows from operations:
Net earnings $ 13,707 15,994
Adjustments to reconcile earnings to
net cash provided by operations:
Depreciation and amortization 13,602 10,659
Gain on sale of equity investee (8,269) --
Deferred taxes and other items 4,973 (1,190)
Change in current assets and liabilities, net
of effects of dispositions (22,053) (18,346)
---------- ----------
Net cash provided by operations 1,960 7,117
---------- ----------
Cash flows from investing activities:
Capital expenditures (24,193) (43,295)
Proceeds from sale of equity investee 18,986 --
Proceeds from sale of subsidiary -- 2,100
Other investing activities 684 1,696
---------- ----------
Net cash used in investing activities (4,523) (39,499)
---------- ----------
Cash flows from financing activities:
Net borrowings - notes payable to banks 35,000 --
Principal repayments of long-term debt (304) (471)
Dividends (3,917) (4,091)
Purchase of common stock (28,086) (9,857)
Proceeds from issuance of common stock 831 689
Other financing activities (700) --
---------- ----------
Net cash provided by (used in) financing activities 2,824 (13,730)
---------- ----------
Net increase (decrease) in cash and cash equivalents 261 (46,112)
Cash and cash equivalents at beginning of period 7,766 68,385
---------- ----------
Cash and cash equivalents at end of period $ 8,027 22,273
========== ==========
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest , net of amounts capitalized $ 564 258
========== ==========
Income taxes, net $ 3,651 7,061
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 5
ChemFirst Inc. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited. In Thousands of Dollars)
Note 1 - General
The financial statements included herein are unaudited and have been
prepared in accordance with generally accepted accounting principles for interim
financial reporting and Securities and Exchange Commission regulations. Certain
prior year amounts have been reclassified to conform to the 1998 presentation.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and regulations. In the
opinion of management, the financial statements reflect all adjustments (of a
normal and recurring nature) which are necessary to present fairly the financial
position, results of operations and cash flows for the interim periods. These
financial statements should be read in conjunction with the Annual Report of the
Company and Form 10-K for the year ended December 31, 1997.
Note 2 - Sale Of Equity Investment
On January 22, 1998, the Company sold its fifty percent interest in
Power Sources, Inc. generating pretax cash proceeds of approximately $19,000. An
after tax gain of $5,000 was recognized during the first quarter and a potential
after tax gain of approximately $2,000 was deferred, pending resolution of
contingencies related to the contract.
Note 3 - Effect Of Adopting Accounting Changes
The Financial Accounting Standards Board issued Statement of Financial
Accounting Standards ("SFAS") No. 130 "Reporting Comprehensive Income", in June
1997, effective for fiscal years beginning after December 15, 1997. The
statement requires reporting comprehensive income (components include net income
plus all changes to equity except those resulting from investments and
distributions) directly in the financial statements and deals only with
reporting and display issues versus recognition and measurement issues.
Accordingly, there is no effect on the results of operations. The Company has
immaterial transactions that meet the definition of other comprehensive income
and, as such, has elected to omit disclosure as allowed by the statement under
these circumstances.
SFAS No. 131 - "Disclosures about Segments of an Enterprise and Related
Information", was also issued in June 1997, effective for fiscal years beginning
after December 15, 1997. The
<PAGE> 6
statement requires a "management approach," based on the way management
organizes segments internally for making operating decisions and assessing
performance, to provide selected reporting information. The Company has not yet
completed its analysis of SFAS No. 131 and accordingly has not yet determined
what effect, if any, it may have on future financial statement disclosure.
In March 1998, the Accounting Standards Executive Committee ("AcSEC")
released Statement of Position ("SOP") 98-1, "Accounting for the Costs of
Computer Software Developed or Obtained for Internal Use". The SOP identifies
the characteristics of internal-use software and provides guidance for
accounting treatment of costs for computer software developed or obtained for
internal use as related to capitalization or expense decisions. The statement is
effective for fiscal years beginning after December 15, 1998. In April 1998,
AcSEC released SOP 98-5, Reporting on the Costs of Start-Up Activities. The SOP
broadly defines start-up activities and provides guidance on the financial
reporting of start-up costs and organization costs. It requires costs of
start-up activities and organization costs to be expensed as incurred. The
statement is effective for fiscal years beginning after December 15, 1998.
Adoption of these statements is not expected to have a material impact on the
Company's financial statements.
SFAS No. 133 - "Accounting for Derivative Instruments and Hedging
Activities", was issued in June 1998, effective for fiscal years beginning after
June 15, 1999. The statement establishes accounting and reporting standards for
derivative instruments and for hedging activities. All derivatives are required
to be recognized as either assets or liabilities in the statement of financial
position and measured at fair value. Changes in fair value will be reported
either in earnings or outside earnings depending on the intended use of the
derivative and the resulting designation. Entities applying hedge accounting are
required to establish at the inception of the hedge the method used to assess
the effectiveness of the hedging derivative and the measurement approach for
determining the ineffective aspect of the hedge. The Company currently hedges
certain foreign currency transactions by entering into forward exchange
contracts. Gains and losses associated with currency rate changes on forward
contracts hedging foreign currency transactions are recorded in income and
generally offset the transaction losses or gains on the foreign currency cash
flows which they are intended to hedge. The Company has not completed its
analysis of SFAS No. 133 and accordingly has not determined what additional
effect, if any, it may have on future operations and financial statement
disclosure.
Note 4 - Earnings Per Share
In February 1997, the Financial Accounting Standards Board issued SFAS
No. 128 - "Earnings Per Share." The statement requires companies to adopt its
provisions in financial statements issued for periods ending after December 15,
1997, and requires restatement of all prior earnings per share ("EPS") data
presented. Basic EPS is based on the average number of
<PAGE> 7
common shares outstanding during each period. Diluted EPS includes the effect of
outstanding common stock equivalents ("CSEs").
<TABLE>
<CAPTION>
Three Months Ended June 30,
1998 1997
------------- ---------------
Shares EPS Shares EPS
------ --- ------ ---
(Millions, except per share amounts)
<S> <C> <C> <C> <C>
Earnings per Common Share:
Basic 19.49 $ 0.20 20.41 $ 0.39
Dilutive effect of CSEs 0.30 -- 0.50 (0.01)
----- --------- ----- ---------
Diluted 19.79 $ 0.20 20.91 $ 0.38
===== ========= ===== =========
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended June 30,
1998 1997
------------- ---------------
Shares EPS Shares EPS
------ --- ------ ---
(Millions, except per share amounts)
<S> <C> <C> <C> <C>
Earnings per Common Share:
Basic 19.69 $ 0.70 20.51 $ 0.78
Dilutive effect of CSEs 0.31 (0.01) 0.48 (0.02)
----- --------- ----- ---------
Diluted 20.00 $ 0.69 20.99 $ 0.76
===== ========= ===== =========
</TABLE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Results of Operations - Six months ended June 30, 1998 compared to the six
months ended June 30, 1997
Consolidated Results
Net earnings for the six months ended June 30, 1998 were $13.7 million
versus $16.0 million for the same period of the prior year. Current year
earnings include a $5.0 million gain from the January 1998 sale of Power
Sources, Inc., a 50% equity affiliate. As a result of the PSI sale and the
Melamine Chemicals sale in November 1997, there is no equity affiliate income in
the current year. Excluding all income related to the operations and sale of
equity affiliates, net earnings for the current year were down 37%, primarily
due to lower chemical operating profits.
<PAGE> 8
Segment Operations
Industry Segment Information
(In Thousands of Dollars)
<TABLE>
<CAPTION>
6 Months Ended, June 30
Sales 1998 1997
------------ ------------
<S> <C> <C>
Chemicals $ 152,273 146,491
Engineered Products and Services 34,244 37,590
Steel 40,809 37,818
------------ ------------
Total $ 227,326 221,899
============ ============
Operating profit (loss) before income taxes
Chemicals $ 17,876 25,097
Engineered Products and Services 618 1,301
Steel 326 (150)
------------ ------------
18,820 26,248
Unallocated corporate expenses (5,102) (5,271)
Interest income (expense), net 558 1,792
Other income, net 8,196 88
------------ ------------
Total $ 22,472 22,857
============ ============
</TABLE>
Chemicals pretax operating profits were down 29% from the prior year as
lower earnings from custom manufacturing and Pascagoula, Mississippi aniline
operations more than offset the additional earnings of the Company's new
Baytown, Texas aniline facility. Pascagoula operations were hurt by lower
aniline production and increased expenses, primarily the result of plant
maintenance during the first and second quarter. Also affecting chemicals
operating profits were higher research and development, and general, selling and
administrative expenses, up primarily due to acquisitions made in December 1997.
Sales for the current year were up 4% as higher revenue from electronic
chemicals and the addition of acylation derivatives and Baytown aniline sales
offset lower custom manufacturing revenue and Pascagoula aniline production. The
increase in electronic chemicals revenue was primarily due to increased
hydroxylamine-based (HDA) product sales where higher volume more than offset
lower unit sales prices.
The Company's 250-million-pound per year Baytown, Texas aniline
facility, built to supply Bayer Corporation's ("Bayer") Baytown MDI (methylene
diphenyl diisocyanate) operations, started up in March 1998. The plant averaged
approximately 75% of design capacity in the second quarter and is currently
running near design rate. Sales to Bayer at Baytown are dependent upon the
operation of the MDI facility, which is currently in start-up.
<PAGE> 9
Engineered Products and Services pretax operating profits were $0.6 million,
down from $1.3 million in the prior year on 9% lower revenue. While results for
the first six months of the year were not significantly affected, results for
the second half of the year and 1999 could be affected by the current low order
inquiry form the Far East, however, the extent of such is presently unknown.
Steel operating results were up $0.5 million as sales grew on a 9% increase in
volume. Net interest income was down $1.2 million due to a lower net cash
position and increased interest expense, while net other income increased on the
$8.3 million pretax gain from the Power Sources sale.
Results of Operations - Three months ended June 30, 1998
compared to the three months ended June 30, 1997
Consolidated Results
Net earnings for the three months ended June 30, 1998, were $4.0
million versus $7.9 million for the same period of the prior year. As a result
of the Power Sources sale in January 1998 and the Melamine Chemicals sale in
November 1997, there was no equity affiliate income in the current year second
quarter. Prior year equity earnings include a $1.5 million gain from a Melamine
technology sale. Excluding the income related to equity affiliates from the same
quarter of the prior year, net earnings for the current quarter were down 35%,
primarily due to lower chemical profits and lower net interest income.
Segment Operations
Industry Segment Information
(In Thousands of Dollars)
<TABLE>
<CAPTION>
3 Months Ended, June 30
Sales 1998 1997
------------ ------------
<S> <C> <C>
Chemicals $ 78,100 72,018
Engineered Products and Services 19,132 19,606
Steel 18,726 19,555
------------ ------------
Total $ 115,958 111,179
Operating profit (loss) before income taxes
Chemicals $ 9,091 11,517
Engineered Products and Services 496 852
Steel (208) 3
------------ ------------
9,379 12,372
Unallocated corporate expenses (2,928) (3,003)
Interest income , net 73 753
Other income, net (40) (12)
------------ ------------
Total $ 6,484 10,110
============ ======
</TABLE>
<PAGE> 10
Chemicals pretax operating profits were down 21% from the prior year as
lower earnings from custom manufacturing and Pascagoula, Mississippi aniline
operations more than offset the earnings of the Company's new Baytown, Texas
aniline facility. Pascagoula operations were hurt by a decline in aniline
production and increased expenses, primarily due to plant maintenance during the
second quarter. Also affecting chemicals operations were higher research and
development, and general, selling and administrative expenses, up primarily due
to acquisitions made in December 1997. Sales for the current year were up 8%
over the same period of the prior year as the addition of acylation derivatives
and Baytown aniline sales and higher electronic chemicals revenue offset lower
custom manufacturing revenue and Pascagoula aniline production. The increase in
electronic chemicals revenue was primarily due to increased hydroxylamine-based
(HDA) product sales where higher volume more than offset lower unit sales
prices. Electronic chemical sales for the current year second quarter were
slightly below the first quarter's, reflecting lower pricing to Far East
customers and a sluggish chip industry. Future product sales will be effected;
however, the extent of such is presently not known.
Engineered Products and Services pretax operating profits were $0.5
million, down from $0.9 million in the prior year on 2% lower revenue. Steel
operating results were a loss of $0.2 million as sales declined on a 6% decrease
in volume. Net interest income was down $0.7 million due to a lower net cash
position and increased interest expense.
Capital Resources and Liquidity
Cash flow from operating activities for the first six months of the
current year was $2.0 million, down from $7.1 million for the same period in the
prior year, primarily due to lower operating earnings. Net cash provided by
investing activities in 1998 includes $19.0 million in pretax proceeds from the
Company's sale of its interest in Power Sources, Inc. Cash flow used in
financing activities included $28.1 million for the purchase of 1,083,900 shares
of ChemFirst common stock. In 1997, $9.9 million was used in the purchase of
417,800 shares. Beginning with June 30, 1998, borrowings under bank revolving
credit facilities were classified as long-term debt based on repayment
projections.
Year 2000
The advent of the Year 2000 poses significant risks to many companies because of
the calculation limitations imposed by equipment and systems limited to storing
a year as a two-digit field (e.g. 1997 as "97"), which leads to computational
errors when the years 2000 or later are used in calculations. A comprehensive
review of all of the company's equipment and systems utilizing date or time
functions began in 1997. In its analysis, the Company believes that, based on
available information, the cost to upgrade equipment and systems for Year 2000
compliance should not have a material effect on its operating results or
financial condition. Remediation efforts are scheduled to be complete in
mid-1999. The Company cannot, however, reasonably estimate the potential impact
on its financial position and operations if key suppliers and customers are not
Year 2000 capable. Separately, the Company has elected to initiate installation
of a company-wide Enterprise Resource Planning ("ERP") system to integrate all
of the Company's information systems. This system will be Year 2000 compliant.
<PAGE> 11
In 1997, the Company expended $3.0 million, and is projecting to spend
approximately $6.0 million in 1998 and $3.0 million in 1999, with the material
portion of the system planned for completion by mid-1999. It is important that
this project meet this timetable to avoid the risks posed by the Year 2000.
Forward-Looking Statements
This Form 10-Q includes forward-looking statements that are based on
certain underlying assumptions and expectations of management. These
forward-looking statements are subject to risks and uncertainties which could
cause actual results to differ materially from the forward-looking statements
included in this Form 10-Q. For additional information on those factors which
could affect actual results, please refer to the Company's Form 10-K for the
fiscal year ended December 31, 1997.
Part II. Other Information
Item 4. Submission of Matters to a Vote of Security Holders
At the Annual Meeting of Stockholders on May 27, 1998, the Company
stockholders, pursuant to proxies solicited under Regulation 14A, elected four
directors for terms to expire in 2000 and four directors for terms to expire in
2001, or until their successors are elected and qualify. The following votes
were cast:
Directors with terms expiring in 2000:
<TABLE>
<S> <C> <C>
Richard P. Anderson 17,186,716 shares voted for
------------
116,367 shares withheld
------------
Michael J. Ferris 17,183,565 shares voted for
------------
119,518 shares withheld
------------
William A Percy, II 17,188,087 shares voted for
------------
114,996 shares withheld
------------
R. Gerald Turner 17,162,158 shares voted for
------------
140,925 shares withheld
------------
Directors with terms expiring in 2001:
Paul A. Becker 17,190,152 shares voted for
------------
112,931 shares withheld
------------
James W. Crook 17,188,303 shares voted for
------------
114,780 shares withheld
------------
</TABLE>
<PAGE> 12
<TABLE>
<S> <C> <C>
Dan F. Smith 17,188,013 shares voted for
------------
115,070 shares withheld
------------
Leland R. Speed 17,187,494 shares voted for
------------
115,589 shares withheld
------------
</TABLE>
Also, at the Annual Meeting Company stockholders voted on the proposals
to approve the ChemFirst Inc. 1998 Long-Term Incentive Plan and the ChemFirst
Inc. 1997 Employee Stock Purchase Plan as follows:
<TABLE>
<S> <C> <C>
1998 Long-Term Incentive Plan 14,868,950 shares voted for
------------
380,001 shares voted against
------------
90,363 shares withheld
------------
1,963,769 shares broker nonvotes
------------
1997 Employee Stock Purchase Plan 15,132,815 shares voted for
------------
122,059 shares voted against
------------
84,440 shares withheld
------------
1,963,769 shares broker nonvotes
------------
</TABLE>
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27.1 - Financial Data Schedule
Exhibit 27.2 - Financial Data Schedule
(b) Reports on Form 8-K
No report on Form 8-K was filed by the Registrant during the three
months ended June 30, 1998.
<PAGE> 13
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.
CHEMFIRST INC.
August 10, 1998 /s/ J. Kelley Williams
- ------------------------- -------------------------------------
Date J. Kelley Williams
Chairman and Chief Executive Officer
August 10, 1998 /s/ R. Michael Summerford
- ------------------------- -------------------------------------
Date R. Michael Summerford
Vice President & Chief
Financial Officer
<PAGE> 14
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBITS DESCRIPTION
- -------- -----------
<S> <C>
27.1 - Financial Data Schedules
27.2 - Financial Data Schedules
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 8,027
<SECURITIES> 0
<RECEIVABLES> 70,770
<ALLOWANCES> 951
<INVENTORY> 93,252
<CURRENT-ASSETS> 183,463
<PP&E> 390,945
<DEPRECIATION> 150,827
<TOTAL-ASSETS> 473,984
<CURRENT-LIABILITIES> 62,992
<BONDS> 59,682
0
0
<COMMON> 19,053
<OTHER-SE> 286,318
<TOTAL-LIABILITY-AND-EQUITY> 473,984
<SALES> 227,326
<TOTAL-REVENUES> 238,005
<CGS> 176,672
<TOTAL-COSTS> 176,672
<OTHER-EXPENSES> 5,938
<LOSS-PROVISION> 143
<INTEREST-EXPENSE> 567
<INCOME-PRETAX> 22,472
<INCOME-TAX> 8,765
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,707
<EPS-PRIMARY> 0.70
<EPS-DILUTED> 0.69
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 22,273
<SECURITIES> 0
<RECEIVABLES> 73,081
<ALLOWANCES> 696
<INVENTORY> 63,400
<CURRENT-ASSETS> 166,316
<PP&E> 315,789
<DEPRECIATION> 131,394
<TOTAL-ASSETS> 408,808
<CURRENT-LIABILITIES> 64,852
<BONDS> 1,764
0
0
<COMMON> 20,330
<OTHER-SE> 291,278
<TOTAL-LIABILITY-AND-EQUITY> 408,808
<SALES> 221,899
<TOTAL-REVENUES> 225,614
<CGS> 170,729
<TOTAL-COSTS> 170,729
<OTHER-EXPENSES> 2,212
<LOSS-PROVISION> 600
<INTEREST-EXPENSE> 225
<INCOME-PRETAX> 22,857
<INCOME-TAX> 9,028
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15,994
<EPS-PRIMARY> 0.78
<EPS-DILUTED> 0.76
</TABLE>
