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
March 31, 1999
Commission File Number 1-12545
Willamette Industries, Inc.
(Exact name of registrant as specified in its charter)
State of Oregon 93-0312940
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1300 S.W. Fifth Avenue, Suite 3800, Portland, Oregon 97201
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (503) 227-5581
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. Common Stock, 50 cent par
value: 111,332,313 at April 30, 1999.
<PAGE>
WILLAMETTE INDUSTRIES, INC. AND SUBSIDIARIES FORM 10-Q
CONSOLIDATED BALANCE SHEETS PART I
(AMOUNTS, EXCEPT PER SHARE AMOUNTS, IN THOUSANDS) ITEM 1
<TABLE>
<S> <C> <C>
MARCH 31, DECEMBER 31,
ASSETS 1999 1998
------ --------- -----------
Current assets:
Cash $ 22,303 31,359
Accounts receivable, less allowance
for doubtful accounts of $4,503 and $4,300 339,145 306,332
Inventories (Note 2) 397,838 411,316
Prepaid expenses and timber deposits 40,732 45,316
--------- ---------
Total current assets 800,018 794,323
Timber, timberlands and related facilities, net 1,102,661 1,112,180
Property, plant and equipment, at cost less
accumulated depreciation of $2,310,934 and $2,253,551 2,712,881 2,707,146
Other assets 82,807 84,019
--------- ---------
4,698,367 4,697,668
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Current installments on long-term debt 2,205 2,267
Notes payable 35,211 47,252
Accounts payable, includes book overdrafts
of $37,756 and $55,030 176,249 196,134
Accrued expenses 172,458 165,743
Accrued income taxes 19,077 16,081
--------- ---------
Total current liabilities 405,200 427,477
Deferred income taxes 415,418 404,518
Other liabilities 42,782 42,159
Long-term debt, net of current installments 1,816,521 1,821,083
Stockholders' equity:
Preferred stock, cumulative, of $.50 par value.
Authorized 5,000 shares. - -
Common stock, $.50 par value. Authorized 150,000
shares; issued 111,065 and 110,981 shares. 55,533 55,490
Capital surplus 287,275 285,140
Retained earnings 1,675,638 1,661,801
--------- ---------
Total stockholders' equity 2,018,446 2,002,431
--------- ---------
$ 4,698,367 4,697,668
========= =========
</TABLE>
- 2 -
<PAGE>
WILLAMETTE INDUSTRIES, INC. AND SUBSIDIARIES FORM 10-Q
CONSOLIDATED STATEMENTS OF EARNINGS PART I
(AMOUNTS, EXCEPT PER SHARE AMOUNTS, IN THOUSANDS) ITEM 1
THREE MONTHS ENDED
MARCH 31,
1999 1998
---- ----
Net sales $ 923,453 900,075
Cost of sales (Note 3) 778,295 775,823
------- -------
Gross profit 145,158 124,252
Selling and administrative expenses 65,152 62,741
------- -------
Operating earnings 80,006 61,511
Other income (expense) - net (91) 2,773
------- -------
79,915 64,284
Interest expense 32,760 30,572
------- -------
Earnings before provision for income taxes 47,155 33,712
Provision for income taxes 15,561 11,631
------- -------
Net earnings $ 31,594 22,081
======= =======
Per share information (1):
Basic earnings per share $ 0.28 0.20
======= =======
Diluted earnings per share $ 0.28 0.20
======= =======
Dividends $ 0.16 0.16
======= =======
Weighted average shares outstanding:
Basic 111,002 111,362
Diluted (2) 111,478 111,915
(1) Per share earnings are based upon the weighted average number of shares
outstanding.
(2) Weighted average shares outstanding (diluted) are calculated using the
treasury stock method assuming all stock options are exercised.
- 3 -
<PAGE>
WILLAMETTE INDUSTRIES, INC. AND SUBSIDIARIES FORM 10-Q
CONSOLIDATED STATEMENTS OF CASH FLOWS PART I
(DOLLAR AMOUNTS IN THOUSANDS) ITEM 1
THREE MONTHS ENDED
MARCH 31,
1999 1998
-------- --------
Cash flows from operating activities:
Net earnings $ 31,594 22,081
Adjustments to reconcile net earnings to net cash
from operating activities:
Depreciation 59,500 68,764
Cost of fee timber harvested 10,954 12,195
Other amortization 4,105 4,836
Increase in deferred income taxes 10,900 5,816
Changes in working capital items:
Accounts receivable (32,813) (20,471)
Inventories 13,478 (9,098)
Prepaid expenses and timber deposits 4,584 (11,770)
Accounts payable and accrued expenses (13,170) (27,122)
Accrued income taxes 2,996 4,096
------- -------
Net cash from operating activities 92,128 49,327
------- -------
Cash flows from investing activities:
Proceeds from sale of equipment 510 64
Expenditures for property, plant and equipment (65,741) (93,770)
Expenditures for timber and timberlands (2,274) (2,393)
Expenditures for roads and reforestation (2,912) (3,101)
Other 1,491 (20,082)
------- -------
Net cash from investing activities (68,926) (119,282)
------- -------
Cash flows from financing activities:
Net change in operating lines of credit (12,041) 90,050
Debt borrowing 152 -
Proceeds from sale of common stock 2,164 1,072
Cash dividends paid (17,757) (17,816)
Payment on debt (4,776) (710)
------- -------
Net cash from financing activities (32,258) 72,596
------- -------
Net change in cash (9,056) 2,641
Cash at beginning of period 31,359 27,600
------- -------
Cash at end of period $ 22,303 30,241
======= =======
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest (net of amount capitalized) $ 42,203 39,248
======= =======
Income taxes $ 729 1,718
======= =======
- 4 -
<PAGE>
FORM 10-Q
PART I
ITEM 1
WILLAMETTE INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999
Note 1 The information furnished in this report reflects all adjustments which
are, in the opinion of management, necessary to a fair statement of the
results for the interim periods presented.
Note 2 The components of inventories are as follows (thousands of dollars):
March 31, December 31,
1999 1998
--------- ---------
Finished product $ 141,388 131,383
Work in progress 7,675 6,909
Raw material 156,244 184,734
Supplies 92,531 88,290
-------- --------
$ 397,838 411,316
======== ========
Note 3 Effective January 1, 1999, the Company changed its accounting estimates
relating to depreciation. The estimated service lives for much of the
Company's machinery and equipment was extended five years. The change
was based upon a study performed by the Company's engineering
department, comparisons to typical industry practices and the effect of
the Company's extensive capital investments which have resulted in a
mix of assets with longer productive lives due to technological
advances. As a result of the change, the Company's net income for the
three months ended March 31, 1999, was increased $14.1 million, or
$0.13 per share. The Company estimates the change will increase net
income in 1999 by approximately $55.2 million, or $0.50 per share.
Note 4 Certain items previously reported have been reclassified to conform
with the 1999 presentation.
Other notes have been omitted pursuant to Rule 10-01(a)(5) of
Regulation S-X.
- 5 -
<PAGE>
FORM 10-Q
PART I
ITEM 2
WILLAMETTE INDUSTRIES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
MARCH 31, 1999
The Company's three basic businesses, white paper, brown paper and building
materials, are affected by changes in general economic conditions. White and
brown paper sales and earnings tend to follow the general economy. Building
materials activity is closely related to new housing starts and to the
availability and terms of financing for construction. All industry segments are
influenced by global economic factors of supply and demand. In addition, the
cost of wood and recycled fiber, basic raw materials for all segments, are
sensitive to various supply and demand factors, including environmental issues
affecting supply.
SEGMENT INFORMATION
-------------------
Three Months Ended March 31,
1999 1998
-------- --------
Sales:
Building Materials $ 332,807 293,888
Brown Paper 332,697 337,250
White Paper 257,949 268,937
-------- --------
$ 923,453 900,075
======== ========
Operating Earnings:(1)
Building Materials $ 49,758 13,549
Brown Paper 33,674 41,106
White Paper 9,190 18,312
Corporate (12,616) (11,456)
------ ------
$ 80,006 61,511
======== ========
(1) Operating earnings for 1999 include the positive impact of a change in
estimate for depreciable lives of property, plant and equipment. The
increase in operating earnings is approximately as follows:
Building Materials $5,700
Brown Paper 6,200
White Paper 9,100
- 6 -
<PAGE>
RESULTS OF OPERATIONS
1st Quarter 1999 vs,. 1st Quarter 1998
--------------------------------------
Consolidated net sales increased 2.6% and operating earnings increased 30.1% in
the first quarter of 1999 compared with the first quarter of 1998. The sales
increase was driven by increased unit shipments for most product lines and
positive movement in average sales prices during the quarter for many building
materials products. Consolidated operating earnings increased due to improved
markets for building materials and the positive impact from a change in estimate
for depreciable lives of property, plant and equipment. The change in
depreciable lives was based upon a study performed by the Company's engineering
department, comparisons to typical industry practices and the effect of the
Company's extensive capital investments which have resulted in a mix of assets
with longer productive lives due to technological advances. The change in
estimate increased first quarter 1999 operating earnings $21.0 million and net
income $14.1 million, or $0.13 per share.
Brown paper net sales declined 1.4% and operating earnings decreased 18.1%
(33.2% before the depreciation adjustment) in the first quarter of 1999, as
average sales prices decreased in all product lines compared to the prior year.
Corrugated container prices were down 6.8% and grocery bag prices declined 7.8%
as the market adjusted to supply and demand issues. While the price trend in the
first quarter was down, price increases announced at the end of the first
quarter should begin to show positive results in the second quarter.
Unit shipments in the brown paper segment increased over the prior year to help
partially offset the negative price impact. Corrugated container unit
- 7 -
<PAGE>
shipments increased 7.6% and grocery bags showed a modest 2.5% increase from the
first quarter of 1998. The increase in corrugated container unit shipments was
the result of expansion of internal converting capacities through capital
projects. Raw material costs also positively affected earnings during the
quarter as old corrugated container (OCC) costs decreased 26.8% and chip costs
decreased 11.4% from the comparable period of 1998.
White paper net sales decreased 4.1% and operating earnings decreased 49.8%
(99.5% before the effect of the depreciation change) in the first quarter of
1999 compared to 1998, as sales prices declined in all product lines. Average
sales prices declined 17.7% for fine paper, 14.9% for cut sheets, 11.2% for
continuous forms and 2.1% for hardwood market pulp. These price declines reflect
the supply and demand imbalances created by the increase in imports of white
paper and softness in worldwide markets.
Partially offsetting the decline in prices were unit shipment increases for
continuous forms and cut sheets. Continuous forms increased 15.9% and cut sheets
increased 24.2% over the prior year. The increase in continuous forms was the
result of the Company's increased focus on the resale market (sales to office
superstores). Cut sheet unit shipment increases resulted from the start-up of
our new Brownsville, Tennessee, cut sheet plant which came on-line in February
1998, and increased converting volumes at other facilities due to the production
from the new Kentucky paper machine ("K-2"), which successfully came on-line at
the end of the second quarter of 1998. Hardwood market pulp realized the only
decline, as unit shipments decreased 20.4% from the prior year. Raw material
costs also impacted white paper results, as chip costs increased 5.4% over the
first quarter of 1998.
- 8 -
<PAGE>
Building materials net sales increased 13.2% and operating earnings increased
267.2% (225.2% before the effects of the depreciation change) in the first
quarter compared to the prior year. Increases in average sales prices for
structural panels and increased unit shipments led to the operating earnings
growth. With the continued strength in housing starts, prices for oriented
strand board (OSB) increased 26.1% and plywood increased 18.9% over the first
quarter of 1998. While lumber prices remained flat with the prior year,
particleboard decreased 2.2% and MDF decreased 3.2%. Lumber prices, however, did
increase 15.1% over average sales prices in the fourth quarter of 1998.
Unit shipment volumes were strong in the first quarter of 1999, as all product
lines experienced increases over the first quarter of 1998. Lumber unit
shipments increased 13.6% over the prior year as gains were realized from
capital project completions, including the start-up of our new small-log sawmill
in Taylor, Louisiana in August 1998. While strong housing starts helped bolster
lumber shipments, they also contributed to structural panel increases as OSB
increased 25.9% and plywood increased 8.9% from 1998. Composite board products
also realized unit shipment gains as MDF increased 11.5% over volumes achieved
in 1998. MDF unit shipments increased as a result of expansion from capital
projects and the acquisition of a new facility in Morcenx, France in March 1998.
Selling and administrative expenses increased $2.4 million or 3.8% in the first
quarter mostly due to expansion of Company operations. The ratio of selling and
administrative expenses to net sales was 7.1% for the first quarter of 1999
compared to 7.0% for the same period in 1998.
- 9 -
<PAGE>
Interest expense was $32.8 million in the first quarter of 1999 compared with
$30.6 million in the prior year. The increase in interest expense was driven by
capital project completions, which resulted in a decrease in capitalized
interest from $5.6 million in the first quarter of 1998 to $.5 million for the
first quarter of 1999. The Company's effective interest rate on average
outstanding debt slightly increased to 7.1% for the first quarter of 1999
compared to 7.04% in 1998.
Financial Condition as of March 31, 1999
----------------------------------------
For the first three months of 1999, cash flows from operating activities were
$92.1 million, representing an increase of 86.8% from the same period in 1998.
The increase was primarily attributable to reductions in inventories and various
other changes in working capital items compared to the prior year. Net working
capital increased 7.6% to $394.8 million at March 31, 1999, compared to $366.8
million at December 31, 1998. The total debt to capital ratio decreased to 47.9%
at March 31, 1999, from 48.3% at December 31, 1998.
In December 1998, the Company finalized the sale of 117,000 acres of timberland
in southwest Washington for $234.0 million. The Company acquired the land in
1996 as part of the purchase of Cavenham Forest Industries. The timberlands were
not critical to the long-term fiber supply needs of the Company's Northwest
operations. Proceeds were used to pay down existing debt.
On April 20, 1999, the Board of Directors of the Company voted to pay a
quarterly cash dividend of $.18 in the second quarter of 1999, which was a 12.5%
increase over the previous quarterly rate; however, there is no
- 10 -
<PAGE>
assurance as to future dividends as they depend on earnings, capital
requirements and financial condition.
The Company believes it has the resources available to meet its short-term and
long-term liquidity requirements. Resources include internally generated funds,
short-term borrowing arrangements and the unused portion of the revolving loan
available under a Credit Agreement.
YEAR 2000 COMPLIANCE
--------------------
The year 2000 (Y2K) issue, which is common to most businesses, arises from the
inability of systems and certain software application programs to properly
recognize and process dates and date sensitive information on and beyond January
1, 2000. In 1996, the Company began working to address the possible effects of
the Y2K issue on its information, financial and manufacturing systems. These
efforts include inventory assessment, modification and testing of these key
systems. Willamette is fortunate in that many of the Company's systems have been
replaced during the past few years as we implemented new technology. Many of
these new systems are currently Y2K ready. To date, the Company has spent $3.9
million on Y2K readiness and currently estimates that total spending will not
exceed $10.0 million. These costs are being expensed as incurred and are not
expected to have a material impact on the Company's financial position.
As of March 31, 1999, a majority of the Company's financial and information
systems have been modified and tested for Y2K readiness and are expected to be
compliant by the end of the second quarter of 1999. In the manufacturing
- 11 -
<PAGE>
area, the Company has completed the process of inventorying and assessing its
primary manufacturing systems for Y2K readiness. To date, no significant issues
have been identified with the Company's manufacturing systems and the Company
expects to resolve any issues with these systems by the third quarter of 1999.
The Company has also been surveying its major vendors, suppliers and customers
to assess the potential impact on its operations of these key third-party
relationships. This process includes obtaining a letter of certification from
vendors and suppliers on their Y2K readiness and monitoring the status of key
customers. To date, no significant compliance issues have been identified with
these third parties. The Company plans to continually update and evaluate
compliance with these key third parties throughout 1999.
The most reasonably likely worst case scenario facing the Company is the
occurrence of unscheduled down-time at its facilities resulting from internal
system difficulties or third-party failures that could have a significant
adverse affect on the Company's earnings. While it is the Company's belief that
all of its systems will be assessed and modified before January 1, 2000, there
can be no guarantee that issues will not arise pertaining to these systems or
that vendors, suppliers and customers will adequately address their Y2K
readiness requirements. The Company is developing contingency plans relating to
mission-critical systems and key third parties. These include identifying
alternative suppliers and manufacturing systems, and working with major
customers who may be affected by Y2K issues. The Y2K readiness effort is
continuously monitored by a special task force which makes regular reports to
senior management and the audit committee of the Board of Directors.
- 12 -
<PAGE>
Forward-Looking Statements
--------------------------
Statements contained in this report that are not historical in nature, including
without limitation adequacy of the Company's liquidity resources, the impact of
environmental regulations and risks associated with the Year 2000 problem, are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are subject to risks
and uncertainties that may cause actual future results to differ materially from
those projected. Such risks and uncertainties with respect to the Company, in
addition to those included with the forward-looking statements, include the
effect of general economic conditions; the level of new housing starts and
remodeling activity; the availability and terms of financing for construction;
competitive factors, including pricing pressures; the cost and availability of
wood fiber; the effect of natural disasters on the Company's timberlands;
construction delays; risk of non-performance by third parties; and the impact of
environmental regulations and the construction and other costs associated with
complying with such regulations. In view of these uncertainties, investors are
cautioned not to place undue reliance on such forward-looking statements.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
- ------------------------------------------------------------------
No disclosure is required under this item.
- 13 -
<PAGE>
FORM 10-Q
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
- -------------------------
As first reported in the Company's Form 8-K report filed January 26, 1998, the
Company received from the Environmental Protection Agency (EPA) a request for
information under Section 114 of the Clean Air Act (the Act) with respect to the
Company's building materials operations. The requests were focused on compliance
with regulations under the Prevention of Significant Deterioration ("PSD")
Program under the Act. On May 7, 1998, the EPA issued a Notice of Violation
(NOV) alleging violations of the Act and related state regulations, and on
December 11, 1998, issued a second NOV supplementing and clarifying the first
NOV. The Company is reviewing the allegations contained in the NOVs and is
meeting with the EPA to negotiate a resolution of the issues raised by the NOVs.
Settlements by other companies in the wood products industry that have received
NOVs under the Act have involved the payment of fines and agreements to install
emission control equipment and undertake supplemental environmental projects.
In November 1998, the Company received from the EPA a request for information
under Section 114 of the Act with respect to the Company's paper operations.
This request also focused on compliance with the PSD regulations. Subsequently,
on April 19, 1999, the Company received an NOV relating to its Johnsonburg,
Pennsylvania, pulp and paper mill. The NOV alleges violations of the Act
relating to two major modifications to the plant, allegedly without proper PSD
permits and without complying with applicable PSD requirements. The Company is
reviewing the allegations contained in this NOV and will be meeting with federal
and state officials to discuss the issues raised by the NOV. The Company
believes that additional NOVs may be issued with respect to one or more of the
Company's other paper mills.
The Company believes that the outcome of the foregoing proceedings will not have
a material adverse effect on the Company's financial position.
Item 4. Submission of Matters to a Vote of Security Holders
- -----------------------------------------------------------
The annual meeting of the Company's shareholders was held April 20, 1999. The
following directors were elected at the annual meeting for terms of office
expiring in the indicated year by the vote indicated below:
Expiration Abstentions and
of term For Withheld Broker non-votes
------- --- -------- ----------------
Winslow H. Buxton 2002 100,256,340 646,574 0
G. Joseph Prendergast 2002 100,297,880 605,034 0
William Swindells 2002 100,282,327 620,587 0
- 14 -
<PAGE>
The following individuals continue to serve as directors:
Gerard K. Drummond 2000
Kenneth W. Hergenhan 2001
Paul N. McCracken 2000
Stuart J. Shelk, Jr. 2000
Robert M. Smelick 2001
Samuel C. Wheeler 2000
Benjamin R. Whiteley 2001
Item 6. Exhibits and Reports on Form 8-K
- ----------------------------------------
(a) Exhibits
--------
Exhibit No. Exhibit
----------- -------
12 Computation of
Ratio of Earnings
to Fixed Charges.
27 Financial Data Schedule for three-month
period ended March 31, 1999.
(b) Reports on Form 8-K
On March 11, 1999, the Company filed a report on Form 8-K
reporting under Item 5 a change in accounting estimate for
depreciable lives of property, plant and equipment.
- 15 -
<PAGE>
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.
WILLAMETTE INDUSTRIES, INC.
By /s/J. A. Parsons
----------------
J. A. Parsons
Executive Vice President
(Principal Financial Officer)
Date: May 12, 1999
- 16 -
EXHIBIT 12
WILLAMETTE INDUSTRIES, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLAR AMOUNTS IN THOUSANDS)
<TABLE>
THREE MONTHS ENDED
YEAR ENDED DECEMBER 31, MARCH 31,
----------------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1994 1995 1996 1997 1998 1998 1999
---- ---- ---- ---- ---- ---- ----
Fixed Charges:
Interest cost $ 80,807 77,237 103,338 136,929 145,579 36,201 33,265
One-third rent
expense 5,227 5,976 6,906 7,535 8,075 1,916 1,841
------- ------- ------- ------- ------- ------- -------
Total Fixed Charges $ 86,034 83,213 110,244 144,464 153,654 38,117 35,106
======= ======= ======= ======= ======= ======= =======
Add (Deduct):
Earnings before
income taxes $ 288,923 823,804 306,086 111,263 132,783 33,712 47,155
Interest capitalized (9,294) (6,187) (10,534) (19,939) (13,589) (5,629) (505)
------- ------- ------- ------- ------- ------- --------
Earnings for
Fixed Charges $ 365,663 900,830 405,796 235,788 272,848 66,200 81,756
======= ======= ======= ======= ======= ======= ========
Ratio of Earnings to
Fixed Charges 4.25 10.83 3.68 1.63 1.78 1.74 2.33
======= ======= ======= ======= ======= ======= ========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE COMPANY'S CONSOLIDATED BALANCE SHEETS AND RELATED
CONSOLIDATED STATEMENTS OF EARNINGS FOR THE PERIOD ENDED March
31, 1999, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
EXHIBIT 27
WILLAMETTE INDUSTRIES, INC.
FINANCIAL DATA SCHEDULE
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 22,303
<SECURITIES> 0
<RECEIVABLES> 343,648
<ALLOWANCES> (4,503)
<INVENTORY> 397,838
<CURRENT-ASSETS> 800,018
<PP&E> 6,126,476
<DEPRECIATION> 2,310,934
<TOTAL-ASSETS> 4,698,367
<CURRENT-LIABILITIES> 405,200
<BONDS> 1,816,521
0
0
<COMMON> 55,533
<OTHER-SE> 1,962,913
<TOTAL-LIABILITY-AND-EQUITY> 4,698,367
<SALES> 923,453
<TOTAL-REVENUES> 923,453
<CGS> 788,295
<TOTAL-COSTS> 788,295
<OTHER-EXPENSES> 65,061
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 32,760
<INCOME-PRETAX> 47,155
<INCOME-TAX> 15,561
<INCOME-CONTINUING> 31,594
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 31,594
<EPS-PRIMARY> 0.28
<EPS-DILUTED> 0.28
</TABLE>
