FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
------------------------
{X} QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended August 31, 1995
OR
{ } TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number 1-7002
BLOUNT, INC.
(Exact name of registrant as specified in its charter)
Delaware 63-0593908
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4520 Executive Park Drive 36116-1602
Montgomery, Alabama (Zip Code)
(Address of principal executive offices)
(334) 244-4000
(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, 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.
Outstanding at
Class of Common Stock August 31, 1995
--------------------- ----------------
Class A Common Stock $1.00 Par Value 8,734,239 shares
Class B Common Stock $1.00 Par Value 3,950,726 shares
Page 1
<PAGE>
BLOUNT, INC. AND SUBSIDIARIES
INDEX
Page No.
------------
Part I. Financial Information
Consolidated Balance Sheets -
August 31, 1995 and February 28, 1995 3
Consolidated Statements of Income -
three months and six months ended
August 31, 1995 and 1994 4
Consolidated Statements of Cash Flows -
six months ended August 31, 1995 and 1994 5
Notes to Consolidated Financial Statements 6
Management's Discussion and Analysis 10
Exhibit 11 - Computation of Net Income
Per Common Share 13
Page 2
<PAGE>
BLOUNT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
August 31, February 28,
1995 1995
---------- ------------
(Unaudited)
ASSETS
------
Current assets:
Cash and cash equivalents, including short-term
investments of $60,160 and $39,458 $ 62,865 $ 42,576
Accounts receivable, net of allowances for
doubtful accounts of $2,753 and $2,611 110,513 130,665
Inventories 74,927 77,075
Deferred income taxes 25,056 25,068
Other current assets 4,844 16,153
-------- --------
Total current assets 278,205 291,537
Property, plant and equipment, net of accumulated
depreciation of $151,427 and 145,519 124,093 134,289
Cost in excess of net assets of acquired
businesses, net 67,232 68,762
Other assets 23,902 23,200
-------- --------
Total Assets $493,432 $517,788
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current liabilities:
Notes payable and current maturities of
long-term debt $ 5,648 $ 7,791
Accounts payable 41,294 64,793
Accrued expenses 75,760 92,190
Other current liabilities 1,248 4,658
-------- --------
Total current liabilities 123,950 169,432
Long-term debt, exclusive of current maturities 96,745 99,754
Deferred income taxes, exclusive of current portion 19,111 19,214
Other liabilities 26,127 26,321
-------- --------
Total liabilities 265,933 314,721
-------- --------
Commitments and Contingent Liabilities
Shareholders' equity:
Common Stock: par value $1.00 per share
Class A: 8,734,239 and 8,562,786 shares issued 8,734 8,563
Class B, convertible: 3,950,726 and 4,030,424
shares issued 3,951 4,030
Capital in excess of par value of stock 12,676 10,964
Retained earnings 193,866 171,260
Accumulated translation adjustment 8,272 8,250
-------- --------
Total shareholders' equity 227,499 203,067
-------- --------
Total Liabilities and Shareholders' Equity $493,432 $517,788
======== ========
The accompanying notes are an integral part of these statements.
Page 3
<PAGE>
BLOUNT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
Three months ended Six months ended
August 31, August 31,
---------------------- ----------------------
1995 1994 1995 1994
---------- ---------- ---------- ----------
(Unaudited) (Unaudited)
Sales $ 147,166 $ 138,781 $ 311,355 $ 284,465
Cost of sales 98,414 91,687 207,551 188,852
---------- ---------- ---------- ----------
Gross profit 48,752 47,094 103,804 95,613
Selling, general and
administrative expenses 28,849 29,324 57,600 59,590
---------- ---------- ---------- ----------
Income from operations 19,903 17,770 46,204 36,023
Interest expense (2,646) (2,816) (5,299) (5,654)
Interest income 900 569 1,510 1,021
Other income (expense), net 1,001 211 542 (642)
---------- ---------- ---------- ----------
Income before income taxes 19,158 15,734 42,957 30,748
Provision for income taxes 7,336 6,035 16,856 12,041
---------- ---------- ---------- ----------
Net income $ 11,822 $ 9,699 $ 26,101 $ 18,707
========== ========== ========== ==========
Net income per common share $ .91 $ .75 $ 2.01 $ 1.45
========== ========== ========== ==========
Weighted average number of
common shares outstanding 12,985,920 12,906,796 12,981,804 12,874,564
========== ========== ========== ==========
Cash dividends declared
per share:
Class A Common Stock $ .1425 $ .1250 $ .2850 $ .2500
========== ========== ========== ==========
Class B Common Stock $ .1300 $ .1125 $ .2600 $ .2250
========== ========== ========== ==========
The accompanying notes are an integral part of these statements.
Page 4
<PAGE>
BLOUNT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six months ended August 31,
---------------------------
1995 1994
-------- --------
(Unaudited)
Cash Flows From Operating Activities:
Net Income $ 26,101 $ 18,707
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, amortization and other
noncash charges 11,086 11,570
Deferred income taxes (91) 2,999
Loss on disposals of property, plant and equipment 117 218
Changes in assets and liabilities, net of effects
of businesses acquired and sold:
Decrease in accounts receivable 11,458 7,776
(Increase) decrease in inventories 1,968 (1,591)
(Increase) decrease in other assets 8,485 (4,497)
Decrease in accounts payable (15,693) (10,862)
Decrease in accrued expenses (15,345) (2,985)
Decrease in other liabilities (2,599) (6,779)
-------- --------
Net cash provided by operating activities 25,487 14,556
-------- --------
Cash Flows From Investing Activities:
Proceeds from sales of businesses and property,
plant and equipment 4,765 2,882
Purchases of property, plant and equipment (4,355) (3,973)
Acquisitions of businesses (5,103)
-------- --------
Net cash provided by (used in)
investing activities 410 (6,194)
-------- --------
Cash Flows From Financing Activities:
Net increase (reduction) in short-term borrowings 107 (404)
Reduction of long-term debt (5,259) (12,383)
Decrease in restricted funds 1,235
Dividends paid (3,495) (3,018)
Issuance of stock under stock option and
dividend reinvestment plans 1,804 522
-------- --------
Net cash used in financing activities (5,608) (15,283)
-------- --------
Net increase (decrease) in cash and cash equivalents 20,289 (6,921)
Cash and cash equivalents at beginning of period 42,576 52,213
-------- --------
Cash and cash equivalents at end of period $ 62,865 $ 45,292
======== ========
The accompanying notes are an integral part of these statements.
Page 5
<PAGE>
BLOUNT, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments (consisting of only normal
recurring accruals) necessary to present fairly the financial position at August
31, 1995 and the results of operations and cash flows for the periods ended
August 31, 1995 and 1994. These financial statements should be read in
conjunction with the notes to the financial statements included in Blount,
Inc.'s Annual Report to Shareholders for the year ended February 28, 1995. The
results of operations for the periods ended August 31, 1995 and 1994 are not
necessarily indicative of the results to be expected for the full fiscal year,
due to the seasonal nature of certain of the Company's operations.
NOTE 2 On August 17, 1995, the Company entered into a Plan and Agreement of
Merger (the "Plan") among HBC, Incorporated [now by change of name Blount
International, Inc. ("BII")], HBC Transaction Subsidiary, Inc. ("Subsidiary"), a
wholly-owned subsidiary of BII, and the Company providing for the merger of
Subsidiary with and into the Company. The Company will be the surviving
corporation in the merger and following the merger will conduct its business as
a wholly-owned subsidiary of BII. The obligations of the Company including the
9% Senior Subordinated Notes due 2003 will remain obligations of the Company.
BII is now owned by the Company's Chairman of the Board, Winton M. Blount, and
members of his family and presently holds the controlling interest in the
Company. In the proposed transaction, stockholders are to receive shares in BII
in exchange for their shares of Company common stock. Immediately following the
transaction, the equity ownership of BII will exactly mirror the current equity
ownership of the Company. The Plan also provides for an exchange ratio of 3
shares of BII Class A Common Stock for 2 shares of Company Class A Common Stock
and 3 shares of BII Class B Common Stock for 2 shares of Company Class B Common
Stock. Upon completion of the transaction, BII shares will be publicly traded.
A listing has been applied for on the New York Stock Exchange. The transaction
is subject to approval by the stockholders of the Company at a meeting to be
held on November 3, 1995. A proxy statement has been mailed to each Blount,
Inc. stockholder describing the transaction and the matter to be voted on at
this meeting. BII filed a Form S-4 registration statement with the Securities
and Exchange Commission on October 3, 1995 for the shares to be issued in the
proposed transaction.
NOTE 3 Inventories consist of the following (in thousands):
August 31, February 28,
1995 1995
------------ ------------
Finished goods $ 32,500 $ 35,769
Work in process 13,116 14,075
Raw materials and supplies 29,311 27,231
-------- --------
$ 74,927 $ 77,075
======== ========
Page 6
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NOTE 4 The principal assets and liabilities of the discontinued construction
operations included in the Company's consolidated balance sheets are as follows
(in thousands):
August 31, February 28,
1995 1995
------------ ------------
Accounts receivable $ 19,856 $ 45,706
Other current assets 1,120 11,911
Other assets 1,424 5,203
Accounts payable (10,501) (24,588)
Accrued expenses (6,629) (12,578)
Other current liabilities (1,248) (4,659)
Other liabilities (2,203) (2,849)
During the first quarter of fiscal 1996, the Company sold Pozzo Construction
Company, part of its remaining discontinued construction operations, and its
Injection Molding Metal Products operations. The transactions were not material
to the Company's financial condition.
NOTE 5 In August 1995, the Company entered into agreements expiring August 31,
1998 with certain financial organizations under which the Company may sell up to
$25 million of undivided interests in a pool of eligible accounts receivable in
which the purchasers retain a security interest. The purchasers' level of
investment may fluctuate based on the level of the Company's eligible
receivables in the pool. As of August 31, 1995, no receivables have been sold
under this agreement.
At August 31, 1995 and February 28, 1995, $8.9 million and $10.1 million,
representing the unexpended proceeds from issues of industrial development
revenue bonds in fiscal 1995, was held in trust and is included in "Other
assets" in the Company's consolidated balance sheets.
NOTE 6 The United States Environmental Protection Agency ("EPA") has designated
a predecessor of the Company as a potentially responsible party ("PRP") with
respect to the Onalaska Municipal Landfill in Onalaska, Wisconsin (the "Site").
The waste complained of was placed in the landfill prior to 1981 by a
corporation, some of whose assets were purchased in 1981 by a predecessor of the
Company. It is the view of the Company that because its predecessor corporation
purchased assets rather than stock, the Company does not have successor
liability and is not properly a PRP. However, the EPA has indicated it does not
accept this position. The Company believes the EPA is wrong on the successor
liability issue. However, with other PRP's, the Company made a good faith offer
to the EPA to pay a portion of the clean-up costs. The offer was rejected and
the EPA is proceeding with the clean-up. The estimated past and future clean-up
costs are approximately $12 million. In 1989 the EPA named four PRP's. One of
the PRP's, the Town of Onalaska (the "Town") and the EPA and State of Wisconsin
negotiated a consent decree under which the Town would have been released from
future liability in return for paying $110 thousand, granting access to the Site
and adjacent properties and performing some future maintenance work. The United
States District Court for the District of Wisconsin found, on December 21, 1994,
that the settlement was not fair, reasonable or in the public interest, and
refused to approve and confirm it as the order of the Court. The Company denies
that it is a PRP and is unable to determine any other party's share of total
remediation costs. The Company does not know the financial status of the other
PRP's and other parties that, while not named by the EPA as PRP's, may have
Page 7
<PAGE>
liability with respect to the Site. The Company does not expect the situation
to have a material adverse effect on the Company's financial condition or
operating results.
The Company is closing the Resource Conservation and Recovery Act ("RCRA") Part
B Storage Permit at its Sporting Equipment Division's CCI operations facility in
Lewiston, Idaho. As part of the closure process, the Company is required by the
State of Idaho to undertake RCRA correction action at the facility. This
requires the Company to investigate all areas at the facility where solid waste
and hazardous waste have historically been managed. The facility has been
operating since the 1950s. There are several areas which require investigation
and environmental sampling. In order to effect the investigation, the Company
and the State of Idaho entered into an Administrative Consent Order which
governs the completion of the corrective action activities. The RCRA Facility
Investigation has commenced and the soils investigation is complete.
Environmental sampling indicates the presence of lead contamination in a limited
number of shallow surface soils. The Company is proposing to excavate this
limited lead contamination and dispose of it at a RCRA permitted landfill.
There is also some trichloroethylene and perchloroethylene contamination of the
uppermost groundwater beneath the facility. This uppermost groundwater is not
the drinking water supply source and does not appear to be connected to the
deeper drinking water aquifer. Further groundwater investigation is ongoing.
It is expected that the range of remediation costs is from $2.8 million to $6.2
million. The Company does not expect the situation to have a material adverse
effect on its financial condition or operating results beyond amounts accrued.
The Company is a defendant in a number of product liability lawsuits, some of
which seek significant or unspecified damages, involving serious personal
injuries for which there are large deductible amounts under the Company's
insurance programs. In addition, the Company is a party to a number of other
suits arising out of the conduct of its business. While there can be no
assurance as to their ultimate outcome, the Company does not believe these
lawsuits will have a material adverse effect on its financial condition or
operating results.
The Company's contingencies include normal liabilities for performance and
completion of its remaining construction contracts. At August 31, 1995, the
Company had outstanding bank letters of credit in the approximate amount of
$15.6 million issued principally in connection with various foreign construction
contracts for which the Company is contingently liable to the issuing banks in
the event payment is demanded by the holder.
See Notes 4 and 8 to the Consolidated Financial Statements included in Blount,
Inc.'s Annual Report to Shareholders for the year ended February 28, 1995 for
other commitments and contingencies of the Company which have not changed
significantly since year-end.
Page 8
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NOTE 7 Segment information is as follows (in thousands):
Three Months Six Months
Ended August 31, Ended August 31,
------------------- -------------------
1995 1994 1995 1994
-------- -------- -------- --------
Sales:
Outdoor products $ 66,969 $ 61,879 $143,662 $130,399
Industrial and power equipment 56,416 49,409 114,265 101,706
Sporting equipment 23,781 27,493 53,428 52,360
-------- -------- -------- --------
$147,166 $138,781 $311,355 $284,465
======== ======== ======== ========
Operating income:
Outdoor products $ 12,753 $ 10,189 $ 28,609 $ 20,241
Industrial and power equipment 9,719 7,794 19,614 15,621
Sporting equipment 1,816 5,451 6,511 10,122
-------- -------- -------- --------
Operating income from segments 24,288 23,434 54,734 45,984
Corporate office expenses (4,385) (5,664) (8,530) (9,961)
-------- -------- -------- --------
Income from operations 19,903 17,770 46,204 36,023
Interest expense (2,646) (2,816) (5,299) (5,654)
Interest income 900 569 1,510 1,021
Other income (expense), net 1,001 211 542 (642)
-------- -------- -------- --------
Income before income taxes $ 19,158 $ 15,734 $ 42,957 $ 30,748
======== ======== ======== ========
NOTE 8 Income taxes paid during the six months ended August 31, 1995 and 1994
were $22.7 million and $12.1 million. Interest paid during the six months ended
August 31, 1995 and 1994 was $5.0 million and $5.4 million.
NOTE 9 Net income per common share is based on the weighted average number of
common and common equivalent shares (stock options) outstanding in each period.
Page 9
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MANAGEMENT'S DISCUSSION AND ANALYSIS
Operating Results
The Company reported record net income for the three months and six months ended
August 31, 1995. Sales for the second quarter and first half of fiscal 1996
were $147.2 million and $311.4 million compared to $138.8 million and $284.5
million for the comparable periods of fiscal 1995. Net income for the second
quarter and first six months of fiscal 1996 was $11.8 million ($.91 per share)
and $26.1 million ($2.01 per share) compared to net income of $9.7 million ($.75
per share) and $18.7 million ($1.45 per share) for the same periods in fiscal
1995. These operating results reflect continued strong performance by the
Company's Outdoor Products segment and Industrial and Power Equipment segment,
partially offset by reduced earnings from the Sporting Equipment segment. The
principal reasons for these results and the status of the Company's financial
condition are set forth below and should be read in conjunction with the
Company's 1995 Form 10-K and 1995 Annual Report to Shareholders.
Sales for the Outdoor Products segment for the second quarter and first half of
fiscal 1996 were $67.0 million and $143.7 million compared to $61.9 million and
$130.4 million during the second quarter and first half of fiscal 1995.
Operating income increased by 25% to $12.8 million and by 41% to $28.6 million
during the second quarter and first six months, respectively, of fiscal 1996 in
comparison to the prior fiscal year. The sales and operating income increases
were principally attributable to a higher volume and increased average selling
prices of saw chain and saw bars sold in foreign markets by the Company's Oregon
Cutting Systems Division and an increase in the volume of riding lawn mowers
shipped by Dixon Industries, Inc.
Sales for the Industrial and Power Equipment segment were $56.4 million and
$114.3 million during the second quarter and the first six months of fiscal 1996
compared to $49.4 million and $101.7 million during the comparable periods of
fiscal 1995. Operating income increased to $9.7 million and $19.6 million for
the three months and six months ended August 31, 1995 from $7.8 million and
$15.6 million during the same periods of the prior fiscal year. The improved
operating results were principally due to higher average selling prices for
timber harvesting equipment, improved sales and operating income by CTR
Manufacturing, Inc., acquired on April 28, 1994, and its inclusion for the full
six months in the current year, and improved sales and operating income by the
Company's Gear Products, Inc. subsidiary, primarily due to higher volume.
The Sporting Equipment segment experienced a downturn during the second quarter
of fiscal 1996. In the aftermath of last year's booming domestic market, a
result of concern over the possibility of Congressional legislation adverse to
the shooting sports industry, an industry slowdown occurred. The Company
expects a return to market conditions which more nearly approximate its normal
historical levels during the latter half of fiscal 1996. Sales for the Sporting
Equipment segment declined to $23.8 million for the second quarter of fiscal
1996 from $27.5 million during the prior year's second quarter, while current
year-to-date sales of $53.4 million were slightly above last year's level for
the comparable period. Operating income was down to $1.8 million and $6.5
million for the second quarter and first six months of fiscal 1996 as compared
to $5.5 million and $10.1 million during the same periods of fiscal 1995. These
results reflect the reduced demand, higher raw material costs, costs associated
with temporary plant shutdowns and a loss from the Company's Ram-Line operation
acquired late in fiscal 1995.
The Company's total backlog at August 31, 1995 was approximately $125.5 million
compared to $125.0 million at May 31, 1995 and $134.4 million at February 28,
1995.
Page 10
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Financial Condition, Liquidity and Capital Resources
At August 31, 1995, the Company had no amounts outstanding under its $100
million revolving credit agreement. In August 1995, the Company entered into
new receivable sales agreements under which up to $25 million in receivables may
be sold (see Note 5 of Notes to Consolidated Financial Statements). As of
August 31, 1995, no receivables had been sold under these agreements. The
Company's total capitalization at August 31, 1995 consists of $96.7 million
long-term debt and equity of $227.5 million for a long-term debt to equity ratio
of .4 to 1 as compared to a ratio of .5 to 1 at February 28, 1995. At August
31, 1995, the Company had 9% subordinated notes outstanding in the principal
amount of $80.1 million maturing in 2003. See Note 3 of Notes to the
Consolidated Financial Statements included in Blount, Inc.'s 1995 Annual Report
to Shareholders for the terms and conditions of the $100 million revolving
credit agreement and the 9% subordinated notes.
Working capital was $154.3 million at August 31, 1995 compared to $122.1 million
at February 28, 1995. The increase resulted principally from the Company's
earnings for the six months ended August 31, 1995. Accounts receivable,
accounts payable and accrued expenses decreased by $20.2 million, $23.5 million
and $16.4 million, respectively, since February 28, 1995. The primary reason
for the decrease in receivables is the reduction in balances attributable to the
Company's discontinued construction segment as those operations either wind down
or are sold (see Note 4 of Notes to Consolidated Financial Statements). The
reductions in accounts payable and accrued expenses also reflect the reduced
construction activity, the sale of the Company's Injection Molding Metal
Products operations and higher estimated tax payments resulting from the
Company's higher earnings. The Company's operating cash flows for the first six
months of fiscal 1996 were $25.5 million compared to $14.6 million in the first
six months of fiscal 1995, while cash and cash equivalent balances increased by
$20.3 million since February 28, 1995. The improved operating cash flows
reflect the improved income from manufacturing operations and cash flows of
approximately $12.2 million from the discontinued construction segment,
partially offset by higher corporate expenditures for estimated income tax
payments, employee benefit plans, management incentive plans and charitable
contributions which were accrued in the prior year.
Restrictions on the Company's ability to pay cash dividends are contained in the
indenture related to the Company's 9% subordinated notes and in certain
financial covenants of the revolving credit agreement. Under the most
restrictive requirement, retained earnings of approximately $51.4 million were
available for the payment of dividends at August 31, 1995.
Page 11
<PAGE>
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.
BLOUNT, INC.
- --------------------
Registrant
Date: October 13, 1995 /s/ Harold E. Layman
---------------------------------
Harold E. Layman
Senior Vice President &
Chief Financial Officer
Page 12
<PAGE>
PART I - EXHIBIT 11
BLOUNT, INC. AND SUBSIDIARIES
COMPUTATION OF NET INCOME PER COMMON SHARE
(In thousands, except share data)
(Unaudited)
Three Months Six Months
Ended August 31, Ended August 31,
----------------------- -----------------------
1995 1994 1995 1994
---------- ---------- ---------- ----------
Primary:
Net income $ 11,822 $ 9,699 $ 26,101 $ 18,707
========== ========== ========== ==========
Shares:
Weighted average common
shares outstanding 12,684,795 12,516,321 12,684,489 12,513,682
Dilutive effect of stock
options 301,125 390,475 297,315 360,882
---------- ---------- ---------- ----------
Average common shares
outstanding as adjusted 12,985,920 12,906,796 12,981,804 12,874,564
========== ========== ========== ==========
Primary net income per
common share $ .91 $ .75 $ 2.01 $ 1.45
========== ========== ========== ==========
Assuming Full Dilution:
Net income $ 11,822 $ 9,699 $ 26,101 $ 18,707
========== ========== ========== ==========
Shares:
Average common shares
as adjusted for primary
computation 12,985,920 12,906,796 12,981,804 12,874,564
Additional dilutive effect
of stock options 29,844 9,176 32,113 38,066
---------- ---------- ---------- ----------
Average common shares
outstanding as adjusted 13,015,764 12,915,972 13,013,917 12,912,630
========== ========== ========== ==========
Net income per common share
assuming full dilution $ .91 $ .75 $ 2.01 $ 1.45
========== ========== ========== ==========
Page 13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF BLOUNT, INC. FOR THE PERIOD ENDED AUGUST 31, 1995, AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> FEB-29-1996
<PERIOD-END> AUG-31-1995
<CASH> 62,865
<SECURITIES> 0
<RECEIVABLES> 113,266
<ALLOWANCES> 2,753
<INVENTORY> 74,927
<CURRENT-ASSETS> 278,205
<PP&E> 275,520
<DEPRECIATION> 151,427
<TOTAL-ASSETS> 493,432
<CURRENT-LIABILITIES> 123,950
<BONDS> 96,745
<COMMON> 12,685
0
0
<OTHER-SE> 214,814
<TOTAL-LIABILITY-AND-EQUITY> 493,432
<SALES> 311,355
<TOTAL-REVENUES> 311,355
<CGS> 207,551
<TOTAL-COSTS> 207,551
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,299
<INCOME-PRETAX> 42,957
<INCOME-TAX> 16,856
<INCOME-CONTINUING> 26,101
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 26,101
<EPS-PRIMARY> 2.01
<EPS-DILUTED> 2.01
</TABLE>
