FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
(X) Quarterly Report pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1997
Commission file number 1-1043
BRUNSWICK CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 36-0848180
(State or other Jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1 N. Field Ct., Lake Forest, Illinois 60045-4811
(Address of principal executive offices) (Zip Code)
(847) 735-4700
Registrant's telephone number, including area code
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
At July 24, 1997, there were 99,310,510 shares of the Company's Common
Stock ($.75 par value) outstanding.
Part I- Financial Information
Item I-Financial Statements
<TABLE>
Brunswick Corporation
Consolidated Statements of Income
for the periods ended June 30
(dollars in millions, except per share data)
Quarter Six months
ended June 30 ended June 30
1997 1996 1997 1996
(unaudited)
<S> <C> <C> <C> <C>
Net sales 1,008.2 858.3 1,849.8 1,597.2
Cost of sales 706.0 601.9 1,307.0 1,125.9
Selling, general and administrative 164.2 143.1 311.4 281.4
Operating earnings 138.0 113.3 231.4 189.9
Interest expense (10.3) (7.9) (21.4) (16.0)
Other income and expense 4.1 5.7 6.9 12.0
Earnings before income taxes 131.8 111.1 216.9 185.9
Income tax provision 48.9 41.3 81.3 69.7
Earnings from continuing operations 82.9 69.8 135.6 116.2
Earnings from discontinued operations 0.0 1.0 0.0 0.0
Net earnings 82.9 70.8 135.6 116.2
Earnings per common share
Continuing operations 0.83 0.71 1.36 1.18
Earnings from discontinued operations 0.00 0.01 0.00 0.00
Net earnings per common share 0.83 0.72 1.36 1.18
Cash dividends declared per common share 0.125 0.125 0.25 0.25
Average shares used for computation of
earnings per share 100.2 98.7 99.9 98.6
The notes are an integral part of these consolidated statements.
</TABLE>
<TABLE>
Brunswick Corporation
Consolidated Balance Sheets
As of June 30, 1997 and December 31, 1996
(in millions, except share data)
June 30, December 31,
1997 1996
(unaudited)
Assets
Current assets
<S> <C> <C>
Cash and cash equivalents, at cost, which approximates market 110.8 238.5
Marketable securities 0.0 3.6
Accounts and notes receivable, less allowances of $18.5 and $17.2 509.4 326.9
Inventories
Finished goods 292.8 225.3
Work-in-process 149.7 137.2
Raw materials 92.9 82.4
Net inventories 535.4 444.9
Prepaid income taxes 192.2 184.4
Prepaid expenses 32.7 33.6
Income tax refund receivable 0.0 9.9
Current assets 1,380.5 1,241.8
Property
Land 69.5 65.0
Buildings 411.3 404.6
Equipment 797.6 752.7
Total land, buildings and equipment 1,278.4 1,222.3
Accumulated depreciation (636.7) (620.5)
Net land, buildings and equipment 641.7 601.8
Unamortized product tooling costs 97.0 83.6
Net property 738.7 685.4
Other assets
Unrestricted cash held for acquisition of Igloo Holdings, Inc. 0.0 143.0
Goodwill 437.5 352.4
Other intangibles 126.0 137.9
Investments 89.1 87.5
Other long-term assets 158.7 154.4
Other assets 811.3 875.2
Total assets 2,930.5 2,802.4
Liabilities and Shareholders' Equity
Current liabilities
Short-term debt, including current maturities of long-term debt
Accounts payable 67.7 112.6
Accrued expenses 244.4 202.4
Income taxes payable 504.5 516.1
Current liabilities 21.3 0.0
837.9 831.1
Long-term debt
Notes, mortgages and debentures
458.6 455.4
Deferred items
Income taxes
Postretirement and postemployment benefits 137.4 155.6
Compensation and other 134.6 131.7
Deferred items 36.5 30.9
308.5 318.2
Common shareholders' equity
Common stock; authorized: 200,000,000 shares, $.75 par value;
issued: 102,537,692 shares
Additional paid-in capital 76.9 76.9
Retained earnings 305.2 302.0
Treasury stock, at cost: 3,220,570 shares and 4,071,644 shares 1,062.1 951.3
Cumulative translation adjustments (59.1) (75.4)
Unamortized ESOP expense and other 6.8 11.2
Common shareholders' equity (66.4) (68.3)
1,325.5 1,197.7
Total liabilities and shareholders' equity 2,930.5 2,802.4
The notes are an integral part of these consolidated statements.
</TABLE>
<TABLE>
Brunswick Corporation
Consolidated Statements Of Cash Flows
for the six months ended June 30
(dollars in millions)
1997 1996
(unaudited)
Cash flows from operating activities
<S> <C> <C>
Net earnings 135.6 116.2
Depreciation and amortization 72.0 59.2
Changes in noncash current assets and current liabilities
of continuing operations (204.6) (163.8)
Income taxes 26.8 40.9
Other, net 17.9 (0.5)
Net cash provided by operating activities 47.7 52.0
Cash flows from investing activities
Acquisitions of businesses (176.0) (156.8)
Unrestricted cash held for acquisition of Igloo Holdings, Inc. 143.0 0.0
Capital expenditures (80.6) (64.9)
Payments advanced for long-term supply arrangements (4.6) (47.0)
Proceeds from businesses disposed 0.0 29.4
Investments in marketable securities 3.6 9.2
Other, net 5.8 (1.4)
Net cash used for investing activities (108.8) (231.5)
Cash flows from financing activities
Proceeds from issuances of short-term commercial paper 54.3 0.0
Proceeds from issuances of long-term debt 7.0 0.0
Payments of long-term debt including current maturties (103.1) (2.8)
Cash dividends paid (24.8) (24.6)
Net cash used for financing activities (66.6) (27.4)
Net decrease in cash and cash equivalents (127.7) (206.9)
Cash and cash equivalents at January 1 238.5 344.3
Cash and cash equivalents at June 30 110.8 137.4
Supplemental cash flow disclosures:
Interest paid 29.2 27.0
Income taxes paid, net 54.6 28.8
The notes are an integral part of these consolidated statements.
</TABLE>
Brunswick Corporation
Notes to Consolidated Financial Statements
June 30, 1997, December 31, 1996 and June 30, 1996
(unaudited)
Note 1 - Accounting Policies
This financial data has been prepared pursuant to the rules and regulations of
the Securities and Exchange Commission. Accordingly, certain information and
disclosures, normally included in financial statements and footnotes prepared in
accordance with generally accepted accounting principles, have been condensed or
omitted. Brunswick Corporation (the "Company") believes that the disclosures in
these statements are adequate to make the information presented not misleading.
The results of operations and net assets of the Company's divested freshwater
fishing boat operations that comprised substantially all of the assets of the
Fishing Boats Division have been reported as discontinued operations.
Previously reported amounts have been restated to conform with this
presentation. Additionally, certain amounts on the December 31, 1996,
balance sheet have been reclassified to conform with the current period
presentation.
These financial statements should be read in conjunction with, and have been
prepared in conformity with, the accounting principles reflected in the
consolidated financial statements and related notes included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1996.
These interim results include, in the opinion of the Company, all normal
and recurring adjustments necessary to present fairly the results of
operations for the quarter and six-month periods ended June 30, 1997
and 1996. The 1997 interim results are not necessarily indicative of
the results which may be expected for the remainder of the year.
Note 2 - Acquisitions
On January 3, 1997, the Company acquired the stock of Igloo Holdings, Inc., a
manufacturer and marketer of coolers and ice chests, for approximately $143.0
million in cash. On March 7, 1997, the Company acquired the assets of the
Hoppe's line of hunting accessories from Penguin Industries, Inc.
On April 28, 1997, the Company purchased for approximately $22.0 million
the inventory and trademarks of the Mongoose bicycle and parts business of
Bell Sports Corp. and a three-year option to acquire up to 600,000 shares of
Bell common stock for $7.50 per share.
These operations have been included as part of the Brunswick Outdoor Recreation
Group of the Recreation segment. These acquisitions were accounted for as
purchases and have been recorded using preliminary valuations of the opening
balance sheets. Goodwill arising from these acquisitions will be amortized
using the straight-line method over 40 years. The operating results of each
acquisition are included in the Company's results of operations since the
date of acquisition.
In January 1997, the Company received an $8.2 million payment from Roadmaster
Industries, Inc. in settlement of the final purchase price adjustment on the
bicycle business purchased in September 1996, which reduces the final cash
consideration paid for the business to $190.2 million.
On July 9, 1997, the Company purchased substantially all of the facilities,
equipment, inventory and other assets of Life Fitness, a designer, manufacturer
and marketer of computerized cardiovascular and strength training fitness
equipment, from a private equity fund. The purchase price was approximately
$310.0 million, of which $10.0 million has been deferred pursuant to an
incentive compensation plan in connection with the waiver of employee options
granted by Life Fitness.
Note 3 - Debt
On April 1, 1997, the Company retired $100.0 million of 8.125 percent notes
that matured.
During the second quarter of 1997, the Company negotiated a new long-term
credit agreement with a group of banks for $400.0 million with a termination
date of May 22, 2002. Under terms of the agreement, the Company has multiple
borrowing options including borrowing at the greater of the prime rate as
announced by The Chase Manhattan Bank, or federal funds effective rate plus
0.5 percent, or a rate tied to the Eurodollar rate. The Company must pay a
facility fee of 0.08 percent per annum on the unused portion of the agreement.
Under the terms of the agreement, the Company is subject to a leverage test, as
well as a restriction on secured debt. The Company was in compliance with these
covenants at June 30, 1997.
On July 9, 1997, the Company issued $296.0 million of commercial paper to
fund the acquisition of the Life Fitness business.
Note 4 - Litigation
There have been no significant changes in the status of the items set forth
in Note 4: "Commitments and Contingencies" in the 1996 Annual Report to
Shareholders except as noted in Note 18: "Subsequent Event" in the 1996 Annual
Report on Form 10-K.
Note 5 - Segment Data
The following table sets forth net sales and operating earnings of each of the
Company's industry segments for the quarter and six-month periods ended
June 30, 1997 and 1996 (in millions):
Quarter ended June 30
1997 1996
Net Operating Net Operating
Sales Earnings Sales Earnings
Marine $ 659.1 $ 105.8 $ 638.9 $ 99.0
Recreation 349.1 41.7 219.4 23.8
Corporate - (9.5) - (9.5)
Consolidated $1,008.2 $ 138.0 $ 858.3 $ 113.3
Six months ended June 30
1997 1996
Net Operating Net Operating
Sales Earnings Sales Earnings
Marine $1,227.7 $ 172.8 $1,185.4 $ 163.3
Recreation 622.1 78.5 411.8 45.5
Corporate - (19.9) - (18.9)
Consolidated $1,849.8 $ 231.4 $1,597.2 $ 189.9
Item 2. - Management's Discussion and Analysis
Overview
The Company's financial results for the first six months of 1997 continue to
reflect the favorable impact of strategic initiatives, which include increasing
the contribution of active recreation businesses through acquisitions, expanding
existing brands through effective marketing programs and product innovations,
and managing costs to improve operating margins.
There were several acquisitions that affected the comparison of the Company's
results from the quarter and six months ending June 30, 1997 with the prior
year. These acquisitions consist of American Camper acquired on March 8, 1996;
Boston Whaler, a designer and manufacturer of offshore fishing boats, acquired
on May 31, 1996; Roadmaster Bicycles acquired on September 6, 1996; Igloo
Holdings, Inc., the leading manufacturer and marketer of coolers and
thermoelectric products, acquired on January 3, 1997; Hoppe's hunting
accessories acquired on March 7, 1997; and Mongoose bicycles acquired on
April 28, 1997.
The Company further advanced its strategy to increase the scope of its active
recreation businesses by acquiring substantially all of the facilities,
equipment, inventory and other assets of Life Fitness, the leading designer,
manufacturer and marketer of computerized cardiovascular and strength training
fitness equipment for the commercial market, from a private equity fund on
July 9, 1997.
The Company continues to evaluate the profit margins of existing businesses and
product lines, making investments where necessary to improve quality, efficiency
and cost; actively managing its supply chain; and adjusting cost structures, if
appropriate. These activities may result in restructuring charges in future
periods.
Other Matters - Results for the second quarter and first six months of 1996 have
been restated to account for the Company's divested freshwater fishing boat
units as discontinued operations.
In February 1997, the Financial Accounting Standards Board issued Statement No.
128 (SFAS No. 128), "Earnings per Share." SFAS No. 128 replaces the
presentation of primary earnings per share with basic earnings per share, which
excludes the dilutive effect of common stock equivalents. The Company's basic
earnings per share are not expected to be materially different from primary
earnings per share.
On March 18, 1997, the Company received notification from the Federal Trade
Commission that the investigation, referenced in Note 4: "Commitments and
Contingencies" of the Company's 1996 Annual Report to Shareholders and Note 18:
"Subsequent Event" in the 1996 Annual Report on Form 10-K, had been concluded
with no action warranted by the Commission.
Results of Operations
Consolidated
The following table sets forth certain ratios and relationships calculated from
the consolidated statements of income for the quarter and six-month periods
ended June 30:
Quarter Six months
ended June 30 ended June 30
1997 1996 1997 1996
Percentage increase in (1)
Net sales 17.5% 6.9% 15.8% 3.2%
Operating earnings 21.8% 18.4% 21.9% 12.2%
Earnings from continuing operations 18.8% 15.6% 16.7% 15.5%
Earnings per share from
continuing operations 16.9% 12.7% 15.3% 12.4%
Expressed as a percentage
of net sales
Gross margin 30.0% 29.9% 29.3% 29.5%
Selling, general and administrative
expense 16.3% 16.7% 16.8% 17.6%
Operating margin 13.7% 13.2% 12.5% 11.9%
(1) compared with the prior year; excludes the effects of restructuring
charges of $40.0 million ($24.4 million after tax) recorded in 1995 and
reflects results from continuing operations.
Sales increased by $149.9 million to $1,008.2 million in the second quarter
of 1997 compared with $858.3 million in 1996. The Marine segment recorded a
sales increase of $20.2 million, and the Recreation segment added $129.7 million
in the second quarter. Sales for the six-month period of 1997 were $1,849.8
million, an increase of $252.6 million versus 1996 sales. The Marine segment
contributed $42.3 million to this increase, and the Recreation segment recorded
a sales increase of $210.3 million. These increases primarily reflect the
effect of revenues from the companies acquired in 1996 and 1997, growth in sales
of large boats and continued strong demand for bowling capital equipment in East
Asian markets.
The Company's gross margin percentage for the second quarter of 1997 improved
slightly to 30.0 percent reflecting productivity enhancements and product
innovations.
Selling, general and administrative expenses as a percent of sales decreased to
16.3 percent in the second quarter of 1997 from 16.7 percent in the second
quarter of 1996 as a result of ongoing cost management and the integration of
acquired businesses. This relationship, coupled with improved gross margins in
the quarterly period, resulted in operating margin improvement in the second
quarter of 1997 of 0.5 points to 13.7 percent, and in the first six months of
1997 an increase of 0.6 points to 12.5 percent, as compared with the 1996
periods.
Interest expense increased $2.4 million and $5.4 million, or 30.4 percent and
33.8 percent, in the second quarter and first six months of 1997 compared with
1996 due to increased debt levels related to the funding of acquisitions. Other
income and expense decreased $1.6 million to $4.1 million in the second quarter
of 1997 and $5.1 million to $6.9 million in the first six months of 1997
compared with 1996 due to lower joint venture earnings and interest income.
The Company's effective tax rate of 37.1 percent in the second quarter of 1997
was comparable to the 37.2 percent rate in the 1996 and remained unchanged at
37.5 percent in the first six months of 1997 versus 1996. Earnings per share
from continuing operations increased 16.9 percent to $0.83 in the second quarter
of 1997 from $0.71 in 1996. Earnings per share from continuing operations for
the first six months of 1997 were $1.36, a 15.3 percent increase from $1.18 in
1996. Per share amounts reflect higher levels of shares outstanding in 1997
versus 1996.
Marine Segment
The following table sets forth Marine segment results for the quarter and
six-month periods ended June 30:
Quarter Six-months
(Dollars in millions) ended June 30 ended June 30
1997 1996 1997 1996
Net sales $659.1 $638.9 $1,227.7 $1,185.4
Percentage increase(decrease)(1) 3.2% (1.0)% 3.6% 2.7%
Operating earnings $105.8 $ 99.0 $ 172.8 $ 163.3
Percentage increase (1) 6.9% 12.6% 5.8% 9.8%
Operating margin 16.1% 15.5% 14.1% 13.8%
Capital expenditures $ 29.0 $ 25.8 $ 48.3 $ 43.1
(1) compared with the prior year
The Marine segment achieved sales gains versus the prior year of 3.2 percent and
3.6 percent for the 1997 second quarter and six-month periods, respectively, as
a result of successful marketing programs and an improved product mix.
Operating earnings for the segment increased 6.9 percent to $105.8 million in
the second quarter of 1997, compared with $99.0 million in the same period last
year. Operating margins increased for the quarter to 16.1 percent in 1997 from
15.5 percent in 1996 and to 14.1 percent from 13.8 percent in the six-month
period of 1997 compared with 1996. These gains reflect the benefits of cost
management actions, which more than offset costs associated with new product
introductions and increased marketing expenses.
Recreation Segment
The following table sets forth Recreation segment results for the quarter and
six-month periods ended June 30:
Quarter ended Six-months
(Dollars in millions) ended June 30 ended June 30
1997 1996 1997 1996
Net sales $349.1 $219.4 $622.1 $411.8
Percentage increase (1) 59.1% 13.2% 51.1% 4.9%
Operating earnings $ 41.7 $ 23.8 $ 78.5 $ 45.5
Percentage increase (1) 75.2% 32.2% 72.5% 8.3%
Operating margin 11.9% 10.8% 12.6% 11.0%
Capital expenditures $ 13.8 $ 11.4 $ 26.3 $ 19.0
(1) compared with the prior year; excludes the effects of a $25.8
million restructuring charge recorded in 1995.
In the second quarter of 1997, Recreation segment sales increased 59.1 percent
to $349.1 million while operating earnings increased 75.2 percent to
$41.7 million. Sales increased 51.1 percent to $622.1 million, and
operating earnings increased 72.5 percent to $78.5 million in the first
six months of 1997 compared with 1996. These gains reflect the
contribution of the aforementioned businesses acquired in 1996 and 1997,
increased shipments of bowling capital equipment into rapidly growing East
Asian markets and higher fishing tackle sales.
Operating margins for the segment were 11.9 percent during the second quarter
of 1997, an increase of 1.1 points from 10.8 percent in 1996, and 12.6 percent
during the first six months of 1997, an increase of 1.6 points from 11.0 percent
in 1996. These operating margin improvements reflect the benefits of higher
bowling capital equipment sales along with ongoing cost management and
acquisition integration actions.
Cash Flow, Liquidity and Capital Resources
Cash generated from operating activities, available cash balances and selected
borrowings are the Company's major sources of funds for investments and dividend
payments.
Cash and cash equivalents totaled $110.8 million at June 30, 1997, down
$127.7 million from the end of 1996.
Cash provided by operating activities totaled $47.7 million in 1997, compared
with $52.0 million in 1996. The primary components of cash provided by
operating activities include the Company's net earnings adjusted for noncash
expenses; the timing of cash flows relating to operating expenses, sales and
income taxes; and the management of inventory levels. The change in
cash provided by operating activities between 1996 and 1997 is due
to stronger operating results offset by the requirements for seasonal noncash
working capital by newly acquired businesses.
During the first six months of 1997, the Company invested $80.6 million in
capital expenditures, compared with $64.9 million in 1996. The $15.7 million
increase reflects the Company's continued emphasis on investing to achieve
improved production efficiencies and product quality, growth from new
products and expansion of existing product lines. Management anticipates
that 1997 capital expenditures could approach $200.0 million, principally
for new product introductions and productivity improvements.
Investments in acquisitions of businesses totaled $176.0 million in the first
six months of 1997. The $143.0 million of cash paid to acquire Igloo
Holdings, Inc. was classified as unrestricted cash held for acquisition of Igloo
Holdings, Inc. and excluded from cash and cash equivalents on the
December 31, 1996 balance sheet.
Total debt at June 30, 1997 was $526.3 million versus $568.0 million at the end
of 1996, with debt-to-capitalization ratios at those dates of 28.4 percent
and 32.2 percent, respectively. On April 1, 1997, the Company used cash to
retire $100.0 million of 8.125 percent notes maturing on that date.
On July 9, 1997, the Company used proceeds from commercial paper borrowings
along with cash from operations to pay for the acquisition of Life Fitness.
The Company is in the process of evaluating refinancing a portion of its
commercial paper borrowings with longer-term debt instruments.
The Company has substantial financial flexibility and access to the capital
markets stemming from its strong balance sheet, investment-grade credit ratings
and ability to generate significant cash from operating activities.
The Company has $400.0 million available under a long-term credit agreement with
a group of banks and $350.0 million under a universal shelf registration filed
in 1996 with the Securities and Exchange Commission for the issuance
of equity and/or debt securities.
The Company uses its cash balances and other sources of liquidity to invest
in its current businesses to promote innovation and new product lines, and to
acquire complementary businesses. These investments, along with other actions
taken to improve the profit margins of current businesses, are designed to
continue improvement in the Company's financial performance and enhance
shareholder value.
Forward Looking Statements
Certain statements in this Form 10-Q are forward looking as defined in the
Private Securities Litigation Reform Act of 1995. These statements involve
certain risks and uncertainties that may cause actual results to differ
materially from expectations as of the date of this filing. These risks
include, but are not limited to, adverse weather conditions retarding sales;
inventory adjustments by major retailers; competitive pricing pressures;
success of planned acquisitions, marketing and cost-management programs and
shifts in market demand.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
12. Statement regarding computation of ratio of earnings to
fixed charges
(b) Reports on Form 8-K.
The Company filed no reports on Form 8-K during the three
months ended June 30, 1997.
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.
BRUNSWICK CORPORATION
July 30, 1997 By: /s/ Victoria J. Reich
Victoria J. Reich
Vice President and Controller*
*Ms. Reich is signing this report both as a duly authorized officer and as the
principal accounting officer.
Exhibit Index
No. Title
12. Statement regarding computation of ratio of earnings to fixed charges
27. Financial Data Schedule
<TABLE>
Exhibit 12
Brunswick Corporation
Computation of Ratio of Earnings to Fixed Charges
(dollars in millions) Six Months Ended Year Ended
June 30 December 31,
1997 1996 1996
Earnings as Adjusted
<S> <C> <C> <C>
Earnings from continuing operations (a) 135.6 116.2 185.8
Income tax provision 81.3 69.7 104.5
Interest expense 21.4 16.0 33.4
Interest portion of rent expense 4.9 4.9 9.8
Equity in earnings of less-than 50% owned affiliates 0.0 0.0 0.0
Dividends received from less-than 50% owned affiliates 0.0 0.0 0.0
243.2 206.8 333.5
Fixed Charges
Interest expense 21.4 16.0 33.4
Interest portion of rent expense 4.9 4.9 9.8
Capitalized interest 0.0 0.0 0.0
26.3 20.9 43.2
Ratio of earnings to fixed charges (b) 9.2x 9.9x 7.7x
(a) Previously reported amounts have been restated to reflect the results of operations
and net assets of the divested freshwater fishing boat unit as discontinued operations.
(b)For computation of the ratio of earnings to fixed charges, "earnings" have been calculated
by adding fixed charges (excluding capitalized interest) to earnings from continuing
operations before income taxes and then deducting the undistributed earnings of affiliates.
Fixed charges consist of interest expense, estimated interest portion of rental expense
and capitalized interest.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
article 5 fds for 2nd quarter 10-q
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 110,800
<SECURITIES> 0
<RECEIVABLES> 527,900
<ALLOWANCES> 18,500
<INVENTORY> 535,400
<CURRENT-ASSETS> 1,380,500
<PP&E> 1,375,400
<DEPRECIATION> 636,700
<TOTAL-ASSETS> 2,930,500
<CURRENT-LIABILITIES> 837,900
<BONDS> 458,600
0
0
<COMMON> 76,900
<OTHER-SE> 1,248,600
<TOTAL-LIABILITY-AND-EQUITY> 2,930,500
<SALES> 1,849,800
<TOTAL-REVENUES> 1,849,800
<CGS> 1,307,000
<TOTAL-COSTS> 1,307,000
<OTHER-EXPENSES> 311,400
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 21,400
<INCOME-PRETAX> 216,900
<INCOME-TAX> 81,300
<INCOME-CONTINUING> 135,600
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 135,600
<EPS-PRIMARY> 1.36
<EPS-DILUTED> 1.36
</TABLE>
