<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended September 30, 1997
Commission file number 1-1941
BETHLEHEM STEEL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 24-0526133
(State of incorporation) (I.R.S. Employer Identification No.)
1170 Eighth Avenue
BETHLEHEM, PENNSYLVANIA 18016-7699
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (610) 694-2424
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
Yes X No
--- ---
Number of Shares of Common Stock Outstanding as of November 3, 1997:
112,806,519
<PAGE>
<PAGE> 2
BETHLEHEM STEEL CORPORATION AND CONSOLIDATED SUBSIDIARIES
INDEX
Page No.
PART I. Financial Information
- ------------------------------
Consolidated Statements of Income-
Three Months and Nine Months Ended September 30, 1997
and 1996 (unaudited) 2
Consolidated Balance Sheets-
September 30, 1997 (unaudited), December 31, 1996
and September 30, 1996 (unaudited) 3
Consolidated Statements of Cash Flows-
Nine Months Ended September 30, 1997
and 1996 (unaudited) 4
Notes to Consolidated Financial Statements 5
Management's Discussion and Analysis of Results of
Operations and Financial Condition 6
PART II. Other Information
- ---------------------------
Item 1. Legal Proceedings 9
Item 6. Exhibits and Reports on Form 8-K 10
Signatures 11
- 1 -
<PAGE>
<PAGE> 3
Bethlehem Steel Corporation
---------------------------
CONSOLIDATED STATEMENTS OF INCOME
(dollars and shares in millions, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
------------------ -----------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C>
$1,113.4 $1,174.6 Net Sales $3,512.8 $3,530.0
- -------- -------- --------- ---------
Costs and Expenses:
971.8 1,043.3 Cost of sales 3,077.7 3,146.1
56.4 65.5 Depreciation 173.7 208.6
26.7 26.0 Selling, administration and general expense 79.6 78.2
- 15.0 Estimated (gain) loss on exiting businesses (135.0) 15.0
- --------- --------- --------- ---------
1,054.9 1,149.8 Total Costs and Expenses 3,196.0 3,447.9
- --------- --------- --------- ---------
58.5 24.8 Income from Operations 316.8 82.1
Financing Income (Expense):
(11.6) (13.1) Interest and other financing costs (35.5) (41.2)
2.2 1.5 Interest and other income 5.7 4.5
- --------- --------- --------- ---------
49.1 13.2 Income before Income Taxes 287.0 45.4
(8.5) (2.2) Provision for Income Taxes (48.0) (7.7)
- --------- --------- --------- ---------
40.6 11.0 Net Income 239.0 37.7
Dividends on Preferred and
10.4 10.5 Preference Stock 31.2 31.5
- --------- --------- --------- ---------
Net Income Applicable to
$ 30.2 $ 0.5 Common Stock $ 207.8 $ 6.2
========= ========= ========= =========
Net Income per Common Share:
$ 0.27 $ - Primary $ 1.85 $ 0.06
$ 0.26 $ - Fully Diluted $ 1.75 $ 0.06
112.6 111.5 Average Primary Shares Outstanding 112.3 111.1
The accompanying Notes are an integral part of the Consolidated Financial
Statements.
</TABLE>
- 2 -
<PAGE>
<PAGE> 4
Bethlehem Steel Corporation
CONSOLIDATED BALANCE SHEETS
(dollars in millions)
<TABLE>
<CAPTION>
ASSETS
September 30 September 30
1997 December 31 1996
(unaudited) 1996 (unaudited)
------------ ----------- ------------
<S> <C> <C> <C>
Current Assets:
Cash and cash equivalents $ 164.8 $ 136.6 $ 106.3
Receivables, less allowances 307.8 311.6 327.9
Inventories:
Raw materials 325.8 332.0 307.3
Finished and semifinished 560.9 667.0 623.3
Contract work-in-progress, less billings 7.7 18.3 19.0
--------- --------- ---------
894.4 1,017.3 949.6
Other current assets 10.4 22.9 9.4
--------- --------- ---------
Total Current Assets 1,377.4 1,488.4 1,393.2
Investments and Miscellaneous Assets 103.2 106.7 113.3
Property, Plant and Equipment,
less accumulated depreciation of
$4,067.5, $3,924.3, and $4,476.6 2,404.7 2,419.8 2,670.0
Deferred Income Tax Asset - net 888.7 935.0 875.0
Intangible Asset - Pensions 160.0 160.0 463.0
--------- --------- ---------
Total Assets $4,934.0 $5,109.9 $5,514.5
========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 400.9 $ 410.4 $ 394.0
Accrued employment costs 314.0 313.3 313.7
Accrued taxes 57.3 67.9 62.3
Debt and capital lease obligations 41.8 49.3 61.5
Other current liabilities 106.1 116.5 98.6
--------- --------- ---------
Total Current Liabilities 920.1 957.4 930.1
Pension Liability 598.0 870.0 1,101.7
Postretirement Benefits Other Than Pensions 1,442.4 1,445.0 1,419.5
Long-term Debt and Capital Lease Obligations 451.7 497.4 499.5
Other Long-term Liabilities 340.5 374.1 310.1
Stockholders' Equity:
Preferred Stock 11.6 11.6 11.6
Preference Stock 2.5 2.5 2.6
Common Stock 114.8 113.9 113.6
Common Stock held in treasury at cost (60.0) (59.7) (59.4)
Additional paid-in capital 1,862.0 1,886.3 1,827.3
Accumulated deficit (749.6) (988.6) (642.1)
--------- --------- ---------
Total Stockholders' Equity 1,181.3 966.0 1,253.6
--------- --------- ---------
Total Liabilities and Stockholders' Equity $4,934.0 $5,109.9 $5,514.5
========= ========= =========
</TABLE>
The accompanying Notes are an integral part of the Consolidated Financial
Statements.
- 3 -
<PAGE>
<PAGE> 5
Bethlehem Steel Corporation
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
(unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30
------------------
1997 1996
---- ----
<S> <C> <C>
Operating Activities:
Net income $ 239.0 $ 37.7
Adjustments for items not affecting
cash from operating activities:
Depreciation 173.7 208.6
Estimated (gain) loss on exiting businesses (135.0) 15.0
Deferred income taxes 46.3 7.7
Other - net 17.3 10.0
Working capital (excluding financing
and investing activities):
Receivables - operating 3.8 (13.2)
Receivables - sold - 60.0
Inventories 115.3 8.9
Accounts payable (9.3) 12.5
Employment costs and other (10.7) (80.9)
--------- ---------
Cash Provided from Operating Activities 440.4 266.3
--------- ---------
Investing Activities:
Capital expenditures (189.3) (205.8)
Cash proceeds from asset sales and other 160.9 6.0
--------- ---------
Cash Used for Investing Activities (28.4) (199.8)
--------- ---------
Financing Activities:
Pension expense 117.0 141.7
Pension funding (390.0) (155.0)
Long-term debt and capital lease borrowings 1.5 2.4
Long-term debt and capital lease payments (53.3) (77.4)
Cash dividends paid (30.3) (30.3)
Other payments (28.7) (21.6)
--------- ---------
Cash Used for Financing Activities (383.8) (140.2)
--------- ---------
Net Increase (Decrease) in Cash and Cash Equivalents 28.2 (73.7)
Cash and Cash Equivalents- Beginning of Period 136.6 180.0
--------- ---------
- End of Period $ 164.8 $ 106.3
========= =========
Supplemental Cash Payment Information:
Interest, net of amount capitalized $ 42.8 $ 41.2
Income taxes $ 7.1 $ 3.3
</TABLE>
The accompanying Notes are an integral part of the Consolidated Financial
Statements.
- 4 -
<PAGE>
<PAGE> 6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
1. Segment Results (dollars in millions):
(unaudited)
1997 1996
--------------------------- -----------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Sales:
Basic Steel Operations $1,109.4 $1,188.7 $1,174.3 $1,126.4 $1,142.6
Steel Related Operations 10.0 26.8 27.0 32.6 42.8
Eliminations (6.0) (8.6) (8.8) (10.0) (10.8)
--------- --------- --------- --------- ---------
Total $1,113.4 $1,206.9 $1,192.5 $1,149.0 $1,174.6
========= ========= ========= ========= =========
Estimated Gain (Loss) on Exiting Businesses:
Basic Steel Operations $ - $ 135.0 $ - $ (240.0) $ (15.0)
Steel Related Operations - - - (210.0) -
--------- --------- --------- --------- ---------
Total $ - $ 135.0 $ - $ (450.0) $ (15.0)
========= ========= ========= ========= =========
Operating Income (Loss):
Basic Steel Operations $ 66.0 $ 212.1 $ 63.8 $ (193.0) $ 31.8
Steel Related Operations (7.5) (10.1) (7.5) (217.5) (7.0)
--------- --------- --------- --------- ---------
Total $ 58.5 $ 202.0 $ 56.3 $ (410.5) $ 24.8
========= ========= ========= ========= =========
Shipments
(thousands of net tons):
Basic Steel Operations 2,183 2,238 2,220 2,146 2,200
========= ========= ========= ========= =========
Raw Steel Production
(thousands of net tons):
Basic Steel Operations 2,417 2,462 2,317 2,412 2,359
========= ========= ========= ========= =========
</TABLE>
2. We sold our 37.57 percent interest in the Iron Ore Company of Canada for
about $145 million. This sale resulted in recognizing a pretax gain of $135
million in the second quarter of 1997.
We completed the sales of our BethForge and CENTEC businesses to West
Homestead Engineering and Machinery Company (WHEMCO) during the third quarter
of 1997. We also sold BethShip Sparrows Point Yard to Veritas in the
fourth quarter of 1997. These actions complete the implementation of our
comprehensive restructuring plan announced last October.
Additionally, our HPM coal operation was sold to Power Mountain Coal Company
in the fourth quarter of 1997.
3. In the second quarter of 1997, Bethlehem, through its wholly owned special
purpose subsidiary, amended its existing non-reducing credit facility with 13
domestic and international banks. The amendment extends the term of the
arrangement by about two years, through September 12, 2002, and increases the
facility's inventory credit arrangement from $200 million to $225 million. The
facility's receivable purchase agreement remains at $300 million, for a total
of $525 million.
4. The Consolidated Financial Statements as of and for the three month and
nine month periods ended September 30, 1997 and 1996 have not been audited.
However, the information reflects all adjustments which, in the opinion of
management, are necessary to present fairly the results shown for the periods
indicated. Management believes all adjustments were of a normal recurring
nature.
5. These Consolidated Financial Statements should be read together with the
1996 audited financial statements set forth in Bethlehem's Annual Report on
Form 10-K filed with the Securities and Exchange Commission.
- 5 -
<PAGE>
<PAGE> 7
MANAGEMENT'S DISCUSSION AND
ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
---------------------------------------------------------
Review of Results:
- ------------------
Third Quarter and First Nine Months 1997
Third Quarter and First Nine Months 1996
- ----------------------------------------
Bethlehem reported net income of $41 million, on sales of $1.11
billion, for the third quarter of 1997 compared to net income of $11 million,
on sales of $1.17 billion, for the third quarter of 1996. After deducting
preferred dividends, net income per common share was $.27 for the third quarter
of 1997 compared to break-even for the third quarter of 1996. Results for the
third quarter of 1996 included a restructuring charge of $15 million. Without
this charge, net income for the third quarter of 1996 was $23 million, or $.12
per common share.
For the first nine months of 1997, net income was $239 million, or
$1.85 per common share, including an after-tax gain of $113 million, or $1.01
per common share, related to the sale of our equity interest in Iron Ore
Company of Canada (IOC). Net income for the first nine months of 1996 was $38
million, or $.06 per common share, including the restructuring charge.
Excluding the effects of this year's IOC gain and 1996's restructuring charge,
net income for the first nine months of 1997 was $126 million, on sales of
$3.51 billion, compared to net income of $50 million, on sales of $3.53
billion, for the first nine months of 1996.
Segment Results
- ---------------
The Basic Steel Operations segment had income from operations of $66
million for the third quarter of 1997 compared to income from operations of $32
million (including the restructuring charge) for the third quarter of 1996.
Without this charge, income from operations for the third quarter of 1996 was
$47 million. The improvement of this segment's third quarter 1997 operating
results compared to the third quarter of 1996 was due to lower costs as a
result of exiting Bethlehem Structural and increased shipments at our remaining
businesses, partially offset by lower realized prices.
Income from operations was $342 million for the first nine months of
1997 compared to $106 million for the first nine months of 1996. Excluding the
effects of 1997's IOC gain and 1996's restructuring charge, income from
operations for the first nine months of 1997 was $207 million compared to $121
million for the first nine months of 1996. This improvement was primarily from
lower costs related to the exit of Bethlehem Structural.
- 6 -
<PAGE>
<PAGE> 8
Third quarter 1997 income from operations declined from the second
quarter of 1997 (excluding the IOC gain) because of lower realized prices and
lower shipments. While prices for our steel products were only slightly lower
during the third quarter, our average realized prices were reduced by lower
sales of raw materials, such as iron ore and coal, and a different product mix
principally caused by the automotive model-year changeover.
The Steel Related Operations segment (BethForge, CENTEC and BethShip)
reported losses from operations of $8 million and $25 million for the third
quarter and first nine months of 1997 compared to losses of $7 million and $24
million for the third quarter and first nine months of 1996.
Status of Restructuring Plans
- -----------------------------
As previously announced, we recently completed the sales of our
BethForge, CENTEC and BethShip Sparrows Point Yard businesses. BethForge and
CENTEC were sold to West Homestead Engineering and Machinery Company (WHEMCO)
in late September. The sale of BethShip to The Veritas Capital Fund was
completed early in the fourth quarter. Bethlehem Structural ended operations
in March. We have sold all of Bethlehem Structural's inventory and are now in
the process of selling individual assets. These actions complete the exit of
the five businesses that were part of the comprehensive restructuring plans
announced last year. The plans also included the write-down as an impaired
asset of our Bethlehem Coke operation, which we continue to closely monitor.
Also, as previously announced, we sold our HPM coal operation to Power
Mountain Coal Company, a subsidiary of A.T. Massey Coal Company, Inc., during
October. Although not part of the 1996 restructuring plans, this sale is a
continuation of our basic strategy of concentrating on our principal
steelmaking divisions and rebuilding our financial strength.
Liquidity and Capital Structure
- -------------------------------
At September 30, 1997, total liquidity, comprising cash, cash
equivalents and funds available under our bank credit arrangements, totaled
$513 million compared to $446 million at December 31, 1996, and $421 million at
September 30, 1996. At September 30, 1997, funds available under our bank
credit arrangements totaled $349 million.
Cash provided from operating activities for the first nine months of
1997 was $440 million compared to $266 million for the first nine months of
1996. Other sources of cash included proceeds from the sale of IOC in the
second quarter of 1997 and the sale of BethForge and CENTEC in the third
quarter of 1997.
- 7 -
<PAGE>
<PAGE> 9
Principal uses of cash during the first nine months of 1997 included
pension funding and capital expenditures. Capital expenditures were $189
million for the first nine months of 1997 compared to $206 million during the
year-earlier period. Capital expenditures are currently expected to be about
$250 million in 1997 compared to $259 million in 1996. We contributed $125
million to our pension fund during the third quarter of 1997, for a total of
$390 million so far this year. Principal uses of cash during the remainder of
1997 include capital expenditures and additional pension funding.
As previously announced, our board of directors authorized a capital
appropriation of about $300 million to construct a new cold rolling mill
complex at our Sparrows Point Division. The new complex will include a
continuous pickling line, cold reducing mill, annealing facilities, a skin pass
mill and related coil handling, storage and shipping facilities. The complex,
which is scheduled to begin production in the fourth quarter of 1999, is
expected to help Sparrows Point lower its costs, improve its quality and
further enhance its capabilities to meets its customers' expectations.
We expect to maintain an adequate level of liquidity from cash flow
from operations, reductions in working capital and available borrowings under
our credit arrangements.
Dividends
- ---------
On October 29, 1997, the Board of Directors declared dividends of
$1.25 per share on Bethlehem's $5.00 Cumulative Convertible Preferred Stock,
$0.625 per share on Bethlehem's $2.50 Cumulative Convertible Preferred Stock
and $0.875 per share on Bethlehem's $3.50 Cumulative Convertible Preferred
Stock, each payable December 10, 1997, to holders of record on November 10,
1997. No dividend was declared on Bethlehem's Common Stock.
Outlook
- -------
We believe the domestic economy will continue on a course of moderate
and sustainable growth and low inflation. The demand from the major
steel-consuming sectors continues to be very good and domestic industry steel
shipments in 1997 and 1998 should be about 100 million tons, about the same
volume shipped in 1996. We recognize, however, that competition will remain
intense in all our markets particularly as a result of new steel production
capacity and unfairly traded imports.
- 8 -
<PAGE>
<PAGE> 10
PART II. OTHER INFORMATION
---------------------------
Item 1. Legal Proceedings.
- ---------------------------
Bethlehem, in the ordinary course of its business, is the subject of
various pending or threatened legal actions involving governmental agencies or
private interests. The following previously reported proceedings had
developments during the third quarter of 1997:
On October 4, 1990, the State of Maryland Department of Environment
(the "MDE") filed a civil action against Bethlehem in the Circuit Court of
Baltimore County, Maryland seeking civil penalties for alleged violations of
the Maryland air pollution regulations arising out of exceedances of the
visible emissions standards established for various sources at the Sparrows
Point Division by an October 1987 Consent Order, as amended in June 1989. On
April 30, 1991, the MDE filed a complaint in intervention in a civil action
filed on April 25, 1991, by the Justice Department on behalf of the United
States Environmental Protection Agency (the "EPA") against Bethlehem, alleging
violations of the Clean Air Act resulting from alleged violations of Maryland
air pollution regulations at the Sparrows Point Division. The complaint in
intervention, which was approved by the Court on June 14, 1991, incorporated
all of the violations alleged in the MDE complaint. On May 1, 1992, a
settlement between the parties to the EPA action was memorialized in a Consent
Decree, which was entered by the Court on July 1, 1992. The Consent Decree
resolved all of the issues in both the federal and state actions except for a
single count in the MDE action dealing with alleged violations from the basic
oxygen furnace. The parties have agreed to resolve that count with a civil
penalty payment of $350,000 as part of a comprehensive multimedia pollution
prevention agreement which was lodged in the U.S. District Court for Maryland
as a proposed consent decree on February 25, 1997. On October 8, 1997, the
Decree was entered by the Court as a final resolution of this action.
On March 29, 1996, the U.S. Department of Justice, on behalf of the
EPA, brought a civil action against Bethlehem in the U.S. District Court for
the Northern District of Indiana for alleged violations of the Clean Water Act
and the Safe Drinking Water Act at the Burns Harbor Division. The Complaint
alleges that, from November 1992 to April 1994, the Division discharged
pollutants from its dock wall without a permit as required by the Clean Water
Act and failed to meet certain requirements of an underground injection well
permit. Settlement negotiations were initiated prior to the filing of the
Complaint. On August 22, 1997, a proposed Consent Decree to which the parties
had agreed was lodged with the Court. Upon entry by the Court, the Consent
Decree will be a final resolution of this action and will require Bethlehem to
pay a civil penalty of $441,300 and to take certain remedial actions to insure
continued compliance with the Clean Water Act and the Safe Drinking Water Act.
Bethlehem believes that any ultimate liability arising from these
actions should not have a material adverse effect on its consolidated financial
position at September 30, 1997.
- 9 -
<PAGE>
<PAGE> 11
Item 6. Exhibits and Reports on Form 8-K.
- ------------------------------------------
(a) Exhibits.
--------------
The following is an index of the exhibits included in this
Report on Form 10-Q:
11. Statement Regarding Computation of Earnings Per Share.
27. Financial Data Schedule.
(b) Reports on Form 8-K.
-------------------------
No reports on Form 8-K were filed by Bethlehem during the
quarter ended September 30, 1997.
<PAGE>
<PAGE> 12
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934,
Bethlehem Steel Corporation has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
Bethlehem Steel Corporation
(Registrant)
by:
/s/ L. A. Arnett
-------------------------------
L. A. Arnett
Vice President and Controller
(principal accounting officer)
Date: November 12, 1997
- 11 -
<PAGE>
<PAGE> 13
EXHIBIT INDEX
-------------
The following is an index of the exhibits included in this Report:
Item
No. Exhibit
- ---- -------
11 Statement Regarding Computation of
Earnings Per Share
27 Financial Data Schedule
<PAGE>
<PAGE> 14
EXHIBIT (11)
Bethlehem Steel Corporation
Statement Regarding Computation of Earnings Per Share
(dollars in millions and shares in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended September 30 Ended September 30
- ------------------ ------------------
1997 1996 Primary Earnings Per Share 1997 1996
---- ---- -------------------------- ---- ----
<S> <C> <C> <C> <C>
$40.6 $11.0 Net Income $239.0 $37.7
Less Dividend Requirements:
(2.5) (2.5) $2.50 Preferred Dividend (7.5) (7.5)
(3.1) (3.2) $5.00 Preferred Dividend (9.4) (9.4)
(4.5) (4.5) $3.50 Preferred Dividend (13.4) (13.5)
(0.3) (0.3) 5% Preference Dividend (0.9) (1.1)
- -------- -------- -------- -------
(10.4) (10.5) Total Preferred and Preference Dividends (31.3) (31.5)
- -------- -------- -------- -------
$30.2 $0.5 Net Income Applicable to Common Stock $207.7 $6.2
======== ======== ======== =======
Average Shares of Common Stock and
Equivalents Outstanding:
112,611 111,477 Common Stock 112,295 111,135
164 - Stock Options 55 2
- -------- -------- -------- -------
112,775 111,477 Total 112,350 111,137
======== ======== ======== =======
$0.27 $0.00 Primary Earnings Per Share $1.85 $0.06
======== ======== ======== =======
Fully Diluted Earnings Per Share
$40.6 $11.0 Net Income $239.0 $37.7
Less Dividend Requirements:
(2.5) (2.5) $2.50 Preferred Dividend (7.5) (7.5)
(3.1) (3.2) $5.00 Preferred Dividend (9.4) (9.4)
(4.5) (4.5) $3.50 Preferred Dividend - (13.5)
- (0.3) 5% Preference Dividend - (1.1)
- -------- -------- -------- -------
$30.5 $0.5 Net Income Applicable to Common Stock $222.1 $6.2
======== ======== ======== =======
Average Shares of Common Stock and Equivalents and
Other Potentially Dilutive Securities Outstanding:
112,611 111,477 Common Stock 112,295 111,135
164 - Stock Options 55 2
* * $2.50 Preferred Stock * *
* * $5.00 Preferred Stock * *
* * $3.50 Preferred Stock 12,255 *
2,456 * 5% Preference Stock 2,456 *
- -------- -------- -------- -------
115,231 111,477 Total 127,061 111,137
======== ======== ======== =======
$0.26 $0.00 Fully Diluted Earnings Per Share $1.75 $0.06
======== ======== ======== =======
</TABLE>
* Antidilutive
<PAGE>
<PAGE> 15
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000,000
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 165
<SECURITIES> 0
<RECEIVABLES> 327
<ALLOWANCES> 19
<INVENTORY> 894
<CURRENT-ASSETS> 10
<PP&E> 6472
<DEPRECIATION> 4067
<TOTAL-ASSETS> 4934
<CURRENT-LIABILITIES> 920
<BONDS> 452
0
14
<COMMON> 115
<OTHER-SE> 1052
<TOTAL-LIABILITY-AND-EQUITY> 4934
<SALES> 3513
<TOTAL-REVENUES> 3513
<CGS> 3078
<TOTAL-COSTS> 3196
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 36
<INCOME-PRETAX> 287
<INCOME-TAX> 48
<INCOME-CONTINUING> 239
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 208
<EPS-PRIMARY> 1.85
<EPS-DILUTED> 1.75
</TABLE>
