<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13
or 15(d) of the
Securities Exchange Act of 1934
Commission File No. 001-12335
FOR THE QUARTER ENDED SEPTEMBER 30, 1998
BUTLER MANUFACTURING COMPANY
Incorporated in State of Delaware
BMA Tower - Penn Valley Park
Post Office Box 419917
Kansas City, Missouri 64141-0917
Phone: (816) 968-3000
I.R.S. Employer Identification Number: 44-0188420
Shares of common stock outstanding at
September 30, 1998: 7,460,048
The name, address and fiscal year of the Registrant have not changed since the
last report.
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.
<PAGE> 2
INDEX
<TABLE>
<CAPTION>
PART I. - FINANCIAL INFORMATION Page Number
ITEM 1. Financial Statements
<S> <C>
(1) Consolidated Financial Statements (unaudited):
Consolidated Statements of Operations for the Three and Nine Month
Periods Ended September 30, 1998 and 1997. 3
Consolidated Balance Sheets as of September 30, 1998 and
December 31, 1997. 4
Consolidated Statements of Cash Flows for the Nine Month Periods
Ended September 30, 1998 and 1997. 5
(2) Notes to Consolidated Financial Statements 6
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 7-9
PART II. - OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K 10
</TABLE>
In addition to historical information included herein, this report
contains forward-looking statements and information that are based on
management's beliefs as well as on assumptions made by and
information currently available to management. These forward-looking
statements and information are within the meaning of the Private
Securities Litigation Reform Act of 1995. When used in this report,
the words "anticipate," "intend," "plan," "believe," "estimate,"
"project," and similar expressions are intended to identify
forward-looking statements. Such statements are not guarantees of
future performance and involve certain risks, uncertainties and
assumptions which could cause the company's future results and
stockholder values to differ materially from those expressed in such
forward-looking statements.
For additional comments, refer to the October 15, 1998 letter to
shareholders, which is attached as exhibit 19.
Page 2
<PAGE> 3
BUTLER MANUFACTURING COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three and nine month periods ended September 30, 1998 and 1997
(unaudited)
($000's omitted except for per share data)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
----------------------- ----------------------
1998 1997 1998 1997
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net sales $ 268,054 $ 241,031 $ 700,355 $ 670,211
Cost of sales 222,809 197,149 582,121 552,926
--------- --------- --------- ---------
Gross profit 45,245 43,882 118,234 117,285
Selling, general and administrative expenses 32,007 30,513 91,611 88,166
--------- --------- --------- ---------
Operating income 13,238 13,369 26,623 29,119
Other income (expense), net (245) 68 406 297
Gain on sale of Grain Systems --- --- --- 22,000
--------- --------- --------- ---------
Earnings before interest and taxes 12,993 13,437 27,029 51,416
Interest expense 1,420 950 4,288 3,860
--------- --------- --------- ---------
Pretax earnings 11,573 12,487 22,741 47,556
Income tax expense 4,840 5,681 9,931 19,862
--------- --------- --------- ---------
Net earnings $ 6,733 $ 6,806 $ 12,810 $ 27,694
========= ========= ========= =========
Basic earnings per common share $ .89 $ .87 $ 1.68 $ 3.61
========= ========= ========= =========
Diluted earnings per common share $ .88 $ .86 $ 1.67 $ 3.57
========= ========= ========= =========
Basic weighted average number of shares 7,564,700 7,786,297 7,627,038 7,662,786
Diluted weighted average number of shares 7,618,435 7,871,803 7,691,510 7,753,125
</TABLE>
Net earnings from operations, which excludes the gain on the sale of the Grain
Systems division, was $14,395 or $1.85 per share, for the nine months ended
September 30, 1997.
See Accompanying Notes to Consolidated Financial Statements.
Page 3
<PAGE> 4
BUTLER MANUFACTURING COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 1998 and December 31, 1997
(unaudited)
($000's omitted)
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 26,762 $ 5,515
Receivables, net 135,096 106,882
Inventories:
Raw materials 45,269 38,622
Work in process 9,547 7,304
Finished goods 32,134 43,223
Lifo reserve (11,893) (10,858)
------------ ------------
Total inventory 75,057 78,291
Real estate developments in progress 21,653 22,401
Deferred tax assets 7,811 7,812
Other current assets 11,785 12,422
------------ ------------
Total current assets 278,164 233,323
Investments and other assets 40,900 35,887
Assets held for sale 9,423 9,423
Property, plant and equipment, at cost 247,244 239,747
Less accumulated depreciation (149,872) (143,408)
------------ ------------
Net property, plant and equipment 97,372 96,339
------------ ------------
$ 425,859 $ 374,972
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 1,515 $ 21,280
Current maturities of long-term debt 5,861 5,862
Accounts payable 94,236 72,266
Dividends payable 1,119 1,069
Accrued liabilities 65,469 55,846
Taxes on income 9,179 8,181
------------ ------------
Total current liabilities 177,379 164,504
Deferred tax liabilities 3,561 3,561
Other noncurrent liabilities 15,851 16,423
Long-term debt, less current maturities 68,097 33,918
Shareholders' equity:
Common stock, no par value, authorized 20,000,000
shares, issued 9,088,200 shares, at stated value 12,623 12,623
Cumulative foreign currency translation adjustment (372) 26
Retained earnings 185,517 175,373
------------ ------------
197,768 188,022
Less cost of common stock in treasury, 1,628,152 shares in
in 1998 and 1,451,205 shares in 1997 36,797 31,456
------------ ------------
Total shareholders' equity 160,971 156,566
------------ ------------
$ 425,859 $ 374,972
============ ============
</TABLE>
See Accompanying Notes to Consolidated Financial Statements.
Page 4
<PAGE> 5
BUTLER MANUFACTURING COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine month periods ended September 30, 1998 and 1997
(unaudited)
($000's omitted)
<TABLE>
<CAPTION>
1998 1997
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 12,810 $ 27,694
Adjustments to reconcile net earnings to net cash used
in operating activities:
Depreciation and amortization 11,012 9,127
Gain on sale of Grain Systems --- (13,299)
Equity in earnings of joint ventures (156) (207)
Change in asset and liabilities, net of businesses acquired and sold:
Receivables (28,214) (7,606)
Inventories 3,234 (18,207)
Real estate developments in progress 748 592
Other current assets 638 (3,721)
Current liabilities excluding short-term debt 32,591 5,745
----------- -----------
Net cash provided by operating activities 32,663 118
Cash flows from investing activities:
Capital expenditures (10,301) (20,140)
Sale of Grain Systems --- 33,748
Acquisition of new businesses --- (7,697)
Other, net (6,512) (1,611)
----------- -----------
Net cash provided (used) by investing activities (16,813) 4,300
Cash flows from financing activities:
Payment of dividends (3,214) (2,751)
Proceeds from issuance of long-term debt 35,000 790
Repayment of long-term debt (821) (533)
Net change in short-term debt (19,766) (4,031)
Sale and issuance of treasury stock 781 783
Purchase of treasury stock (6,121) (1,035)
Other, net (64) 2,618
----------- -----------
Net cash provided (used) by financing activities 5,795 (4,159)
Effect of exchange rate changes on cash (398) (860)
----------- -----------
Net increase (decrease) in cash and cash equivalents 21,247 (601)
Cash and cash equivalents at beginning of year 5,515 2,013
----------- -----------
Cash and cash equivalents at September 30 $ 26,762 $ 1,412
=========== ===========
</TABLE>
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
The company purchased all of the capital stock of Modu-Line Windows, Inc. on
June 11, 1997 for 191,777 shares of the company's common stock issued from the
treasury, plus deferred cash payments and closing costs totaling $.5 million.
The company also retired Modu-Line's existing bank debt of $4.5 million. In
conjunction with the acquisition, the value of treasury stock issued is shown
below:
Fair value of assets acquired $11,982
Cash paid 4,982
-------
Treasury stock issued for purchase of capital stock $ 7,000
=======
See Accompanying Notes to Consolidated Financial Statements.
Page 5
<PAGE> 6
BUTLER MANUFACTURING COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited consolidated condensed financial statements have been
prepared in accordance with the accounting policies described in the
consolidated financial statements and related notes included in Butler
Manufacturing Company's 1997 Form 10-K. It is suggested that those consolidated
statements be read in conjunction with this report. The year-end financial
statements presented were derived from the company's audited financial
statements. In the opinion of management, the accompanying consolidated
financial statements reflect all adjustments necessary for a fair presentation
of the financial position of Butler Manufacturing Company and the results of its
operations.
NOTE 2 - NEW ACCOUNTING PRONOUNCEMENT
Derivative Instruments and Hedging Activities
In June, 1998 the Financial Accounting Standards Board issued Statement No. 133,
"Accounting for Derivative Instruments and Hedging Activities." This new
statement replaces existing pronouncements and practices with an integrated
accounting and reporting standard for derivatives and hedging activities. It
requires that every derivative instrument be recorded in the balance sheet as
either an asset or liability at its fair value, and changes in a derivative's
fair value be recognized in current earnings or other comprehensive income. The
company is required to adopt Statement No. 133 starting January 1, 2000. The
company does not expect adoption of this standard to have a material impact on
the company's financial statements.
Comprehensive Income
In June, 1997 the Financial Accounting Standards Board issued FASB Statement No.
130, "Reporting of Comprehensive Income" which requires reporting and display of
comprehensive income and its components in a full set of financial statements.
The company has adopted this statement as of January 1, 1998 as required.
"Foreign Currency Translation Adjustment" is the company's only comprehensive
income item as defined by the statement. Comprehensive income, including after
tax adjustments for foreign currency translation losses, was $6.8 million and
$6.7 million, for the quarters ending September 30, 1998 and 1997, respectively,
and $12.6 million and $27.1 million for the nine month periods ending September
30, 1998 and September 30, 1997, respectively.
NOTE 3 - ACQUISITION AND DISPOSITION OF BUSINESS
On June 11, 1997 the company announced the acquisition of Modu-Line Windows,
Inc. for 191,777 shares of Butler stock having a market value of approximately
$7 million, plus deferred cash payments and closing costs totaling $.5 million.
The company also retired Modu-Line's existing bank debt of approximately $4.5
million. The fair value of assets acquired of $12 million consisted primarily
of receivables, inventory, and equipment valued at $6.2 million with the
remaining amount allocated to goodwill which will be amortized over 40 years.
On June 23, 1997 the company sold the business and substantially all of the
assets and liabilities used in the business of the Grain Systems division, an
unincorporated division of the company, to CTB, Inc., a privately owned company
in Indiana. The business was sold for approximately $34 million in cash. The
sale of the Grain Systems division generated an after-tax gain of $13.3 million,
or $1.72 per share. Net cash proceeds to the company were approximately $23
million.
Page 6
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Cash and cash equivalents increased $21.2 million in the first nine months of
1998, primarily due to the $35 million private placement of senior notes secured
at the end of the first quarter and used to pay down the company's short-term
line of credit and fund working capital requirements. For the nine months ended
September 30, 1998 domestic short term borrowings averaged $20 million for 118
days compared to $23 million for 242 days in 1997.
In June, 1998 the company amended its existing bank credit agreement to extend
its expiration date to June, 2001 and to reduce the credit available to $40
million from $50 million. As of September 30, 1998 $1.8 million of the domestic
credit line was utilized to provide a bank letter of credit to secure insurance
obligations. The company also maintains a separate line of credit of
approximately $2.5 million for its United Kingdom subsidiary. Management
believes the company's operating cash flow, along with bank credit lines, is
sufficient to meet future liquidity requirements.
Capital expenditures were $10.3 million for the first nine months of 1998
compared to $20.1 million a year ago. Total capital expenditures are projected
to be approximately $16 million in 1998 compared to actual expenditures of $30
million in 1997. Capital expenditures were greater a year ago due to costs
incurred to increase capacity in the domestic and international metal buildings
businesses, as well as the Architectural Products segment.
Through early October, 1998 the company had repurchased 312,000 shares of its
common stock and had 299,000 shares remaining under the current repurchase
authorization.
On September 15, 1998 the Board of Directors voted to increase the company's
regular quarterly dividend to $.15 per share of common stock payable on October
15, 1998 to shareholders of record as of the close of business on October 1,
1998.
The Board also declared a dividend distribution of one preferred share purchase
right for each outstanding share of common stock, to replace its rights plan
which expired on September 30, 1998. The dividend was made to holders of record
of common shares on October 1, 1998 upon expiration of the outstanding rights.
The rights will be exercisable only if a person or group acquires 15% or more of
Butler's common stock or announces a tender offer, the consummation of which
will result in ownership by a person or group of 15% or more of the common
stock. The rights will expire on September 30, 2008.
RESULTS OF OPERATIONS
Net sales of $268 million for the quarter ended September 30, 1998 increased 11%
compared to the same quarter a year ago. The Building Systems, Architectural
Products, and Construction Services segments all contributed to the increase in
sales. For the nine months ended September 30, 1998 net sales were $700
million, an increase of 8% from last year excluding prior year sales of Grain
Systems which was sold in June, 1997.
The third quarter 1998 consolidated gross profit of $45.2 million compared to
$43.8 million recorded a year ago. For the nine months ended June 30, 1998
consolidated gross profit was $118.2 million compared to $117.3 million in 1997.
The increase in gross profit in the Building Systems, Construction Services and
Architectural Products segments, offset the loss of gross profits from the Grain
Systems division sale.
Page 7
<PAGE> 8
The Building Systems segment's earnings increased on modestly higher sales due
to a 10.7% increase in the domestic metal buildings division's earnings during
the first nine months of the year. Improved results from the domestic metal
buildings business, Lester wood framed buildings division, and export
operations offset losses in the company's Brazilian building systems business.
The Construction Services segment reported higher earnings for the nine month
period due in part to more effective project execution. Earnings were also
higher for the continuing operations in the Architectural Products group.
Net earnings from operations for the quarter ended September 30, 1998 were $6.7
million or $.88 per common share, which were comparable with the same period a
year ago. Net earnings from operations for the nine months ended September 30,
1998 were $12.8 million or $1.67 per common share compared to net operating
income of $14.4 million or $1.85 per common share last year, excluding $13.3
million or $1.72 per common share from the gain on the sale of the Grain Systems
division. Third quarter and year-to-date 1998 net earnings from operations were
lower due to a delay in closing the sale of sizable Butler Real Estate projects
anticipated to be accomplished in September. One of these projects closed in
October.
Total backlog of $327 million on September 30, 1998 was up 3% from a year ago.
Product backlog was 5% higher which balanced the construction backlog which was
10% lower.
YEAR 2000 UPDATE
Many computer systems used by companies, governments and individuals around the
world use only the last two digits to refer to a year ("98" for 1998).
Therefore, these computer programs may not properly distinguish between a year
that begins with "20" versus one beginning with "19". If not corrected, many
computer applications could fail or create erroneous results. This has come to
be known as the "Year 2000 (Y2K) problem."
The company believes it has identified, or has processes in place to identify,
and will be able to address all of its critical Information Technology, Other
Technology, and Business Issues Year 2000 problems in a timely manner. Costs
incurred and expected to be incurred in remediation of the company's Year 2000
problems are expected to be immaterial.
In 1997 the company reviewed its principal business, manufacturing, and
engineering computer systems and applications to determine the impact of the
Year 2000 problem on these systems, and to establish a plan to address critical
issues ("Compliance Plan"). In early 1998, the company engaged a consultant to
assess the company's Compliance Plan and its progress toward effecting the Plan
in a timely manner. The consultant looked at three areas: Information
Technology ("IT"), such as the company's business, telecommunications,
manufacturing and engineering systems; Other Technology ("Non-IT") such as
manufacturing equipment which contained embedded micro-controllers; and Business
Issues related to service providers, vendors and customers. The consultant
advised the company that nothing was identified that in and of itself would
indicate that the company would not be successful with its Year 2000 compliance
efforts.
In mid-1998 the company established a Year 2000 Project Office responsible for
the day-to-day oversight and coordination of the Y2K Compliance Plan, including
assessment, remediation or compliance (which includes testing), and reporting
efforts. This office reports to the Executive Vice President of the Company and
the Company's Board of Directors. A manager at each company business unit has
been assigned the responsibility for coordination and reporting on "IT",
"Non-IT", and "Business Issue" compliance efforts, including any contingency
plans if needed. Status reports are reviewed, evaluated and summarized monthly
by the Y2K Project Office.
INFORMATION TECHNOLOGY: The assessment phase of the IT process was
completed in 1997. The company is currently in the remediation or
compliance phase. Currently, individual business units are at various
stages of compliance. However, it is estimated that in total the company
is approximately 40% complete with the compliance phase of the project.
Page 8
<PAGE> 9
OTHER TECHNOLOGY: The assessment phase of the Non-IT process began in
1998. This started with an inventory of all computer controlled and
networked manufacturing equipment to determine if date functions existed in
their controllers and whether they were compliant. This phase of the
Non-IT process is substantially complete. Subsequent phases include
remediation of equipment controls which are non-compliant. To-date it is
estimated that in total the company is approximately 60% complete with all
phases of the Non-IT plan, including remediation.
BUSINESS ISSUES: The assessment of the Business Issues portion of the Y2K
plan began in 1998. This phase of the company's plan began with
identification of key service providers, vendors, and customers by each
business unit. Company business units have begun to contact key service
providers, vendors, and customers to assess their Y2K readiness. To-date
the company is approximately 10% complete with all phases of its Business
Issues plan.
Successful completion of the company's Y2K Compliance Plan is dependent upon
timely Year 2000 compliance by key third parties. If they are not compliant
there could be a material adverse effect on the company's business, results of
operations, or financial condition. The Compliance Plan also requires the
company to consider its potential liability to third parties if it is not Year
2000 compliant. These determinations and assessments are still underway as
noted above. Finally, the Compliance Plan requires the company to identify its
most reasonably likely worst case Year 2000 problem scenarios and to develop a
contingency plan to handle them. These scenarios have yet to be identified or
contingency plans, if needed, created.
MANAGEMENT TRANSITION
In September, 1998 the Board of Directors elected Paul F. Liljegren Treasurer of
the company. Mr. Liljegren, previously Vice President - Controller of the
company's Lester Building Systems Division, replaces Larry C. Miller who was
elected Vice President - Finance in June, 1998.
Page 9
<PAGE> 10
PART II. - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
(19) October 15, 1998 letter to shareholders
(27) Financial Data Schedule
(b) Reports on Form 8-K
The company filed a report on Form 8-K on September 23, 1998 disclosing
the declaration of a dividend of one preferred share purchase right for
each outstanding share of common stock.
Page 10
<PAGE> 11
SIGNATURES
Pursuant to the requirement 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.
BUTLER MANUFACTURING COMPANY
November 12, 1998 /s/ Larry C. Miller
- ----------------- -----------------------------------
Date Larry C. Miller
Vice President - Finance
and Chief Financial Officer
November 12, 1998 /s/ Richard O. Ballentine
- ----------------- -----------------------------------
Date Richard O. Ballentine
Vice President, General Counsel
and Secretary
Page 11
<PAGE> 12
Exhibit 99
EXHIBIT INDEX
Exhibit
Number Description
- ------- ---------------------------------------
19 October 15, 1998 Letter to Shareholders
27 Financial Data Schedule
<PAGE> 1
Exhibit 19
Butler
Manufacturing
Company
THIRD
QUARTER
REPORT 1998
Nine Months Ended
September 30, 1998
BMA TOWER PENN VALLEY PARK KANSAS CITY, MO 64108
To Our Shareholders:
Third quarter sales of $268 million were up 11% compared to a year ago.
Quarterly net earnings of $6.7 million were about the same as in 1997, although
per share earnings increased 2% because of a smaller number of shares currently
outstanding.
Third quarter 1998 net earnings were somewhat reduced from expectations because
of the delay in closing the sale of sizable Butler Real Estate projects
anticipated to be accomplished in September. The effect of these on after tax
profit was about $1.1 million, or $.14 per share, which now is expected to be
realized in the fourth quarter. One of these projects has already closed in
October.
For the nine month period, Butler's sales were $700 million, an increase of 8%
from last year (excluding prior year sales of Grain Systems, which was sold in
June 1997). Year-to-date net earnings of $12.8 million were slightly higher than
comparable operating net income a year ago.
The U.S. operations that comprise our Building Systems group are achieving
excellent results in 1998. The core metal building systems division had good
increases in both sales and earnings for the quarter and nine months, and their
September 30 backlog was up about 7% from a year ago. Sales in the Lester wood
frame buildings business were slightly lower for the quarter and nine months,
reflecting more difficult conditions in agricultural markets in general and in
the hog confinement market in particular. Lester profitability recovered nicely,
however, in both periods, primarily because of better management this year of
raw material costs. Innovative Building Technologies, our start-up panelized
building products division, had a loss of about $.06 per share for the nine
months, and is gradually expanding its base of market opportunities and customer
prospects. Butler Real Estate is achieving another very strong year in 1998.
As communicated previously, Butler's international operations are having
decidedly mixed results. Our export operations are exceeding expectations and
last year's profit contribution. Our buildings business in China is making
excellent progress, was solidly profitable for the third quarter, and had a much
smaller loss for the nine months. Similarly, Butler Europe had lower losses in
both accounting periods, compared to 1997, but weak U.K. market conditions are
the major factor causing European results to be lower than planned this year.
Our Brazilian metal building systems business had a loss for the nine months of
about $4 million, or $.50 per share, resulting from operating problems and
difficult local economic conditions. We have made progress in resolving the
operating problems, and we are pursuing several initiatives to reposition our
business in South America. We expect our operations in that sector will have
little, if any, effect on Butler's earnings in 1999.
Butler Construction had slightly reduced third quarter earnings, but their
profitability year-to-date is nicely ahead of last year. They continue to
perform well, but because of timing variations with their large construction
contracts, specific quarterly comparisons are usually not very meaningful.
<PAGE> 2
The Vistawall Architectural Products group achieved third quarter increases in
both sales and earnings. For the nine months, their sales were 21% higher than
last year, but earnings were up only 8%, largely as a result of industry price
competition and expenses associated with their expanded facilities and scope of
operations.
Enclosed with this report is a communication describing the renewal of Butler's
Shareholder Rights Plan, which your Board of Directors approved at its September
meeting. The rationale for, and provisions of, the Plan are virtually identical
with the predecessor plan which was originally adopted in 1988.
In recent weeks, we have increased the level of share repurchases, partially in
response to the decline in Butler's stock price. Through early October we have
repurchased this year a total of about 312,000 shares and have approximately
299,000 shares remaining under the current repurchase authorization. At its
September meeting, the Board of Directors also approved a 7% increase in the
cash dividend to a new annual rate of $.60 per share -- further reflection of
the confidence we have in the future prospects for your company.
Despite obvious apprehension about the global economic outlook, Butler's
near-term order activity remains encouraging. Total backlog of $327 million was
3% higher than a year ago. Product backlog was 5% higher and balanced the
construction backlog which was down 10%.
Cordially yours,
Robert H. West
Chairman and Chief Executive Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BUTLER
MANUFACTURING COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE QUARTER
ENDED SEPTEMBER 30, 1998, AND CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30,
1998, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000015840
<NAME> BUTLER MANUFACTURING COMPANY
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 26,762
<SECURITIES> 0
<RECEIVABLES> 135,096
<ALLOWANCES> 0
<INVENTORY> 75,057
<CURRENT-ASSETS> 278,164
<PP&E> 247,244
<DEPRECIATION> 149,872
<TOTAL-ASSETS> 425,859
<CURRENT-LIABILITIES> 177,379
<BONDS> 68,097<F1>
0
0
<COMMON> 12,623
<OTHER-SE> 185,517<F2>
<TOTAL-LIABILITY-AND-EQUITY> 425,859
<SALES> 700,355
<TOTAL-REVENUES> 700,761<F3>
<CGS> 582,121
<TOTAL-COSTS> 582,121
<OTHER-EXPENSES> 91,611<F4>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,288
<INCOME-PRETAX> 22,741
<INCOME-TAX> 9,931
<INCOME-CONTINUING> 12,810
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 12,810
<EPS-PRIMARY> 1.68
<EPS-DILUTED> 1.68
<FN>
<F1>REFLECTS LONG-TERM DEBT, LESS CURRENT MATURITIES.
<F2>REFLECTS OTHER STOCKHOLDERS' EQUITY BEFORE DEDUCTION OF $36.8 MILLION COST OF
TREASURY STOCK.
<F3>REFLECTS NET SALES PLUS NET INTERNATIONAL JOINT VENTURE INCOME LESS NET OTHER
EXPENSE.
<F4>CONSISTS OF SELLING, GENERAL AND ADMINISTRATIVE EXPENSE.
</FN>
</TABLE>
