<PAGE> 1
FORM 1O-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 2O549
------------------------------------
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
-------------------------------------------
For quarter ended February 28, 1998
Commission File Number 1-4304
COMMERCIAL METALS COMPANY
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 75-0725338
- ----------------------------------- -----------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
7800 Stemmons Freeway
P. O. Box 1046 Dallas, Texas 75221
-----------------------------------------------------
( Address of principal executive offices )
( Zip Code )
(214) 689-4300
-----------------------------------------------------
( Registrant's telephone number, including area code )
-----------------------------------------------------
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 (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
------- -------
As of February 28, 1998 there were 14,902,200 shares of the Company's common
stock issued and outstanding excluding 1,230,383 shares held in the Company's
treasury.
<PAGE> 2
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART I - Financial Statements:
Consolidated Balance Sheets -
February 28, 1998 and August 31, 1997 2 - 3
Consolidated Statements of Earnings -
Six months and three months ended
February 28, 1998 and 1997 4
Consolidated Statements of Cash Flows -
Six months ended February 28, 1998 and 1997 5
Consolidated Statement of Stockholders' Equity
For the six months ended February 28, 1998 6
Notes to Consolidated Financial Statements 7
Management's Discussion and Analysis of the
Consolidated Financial Statements 8 - 13
PART II - Other Information and Signatures 14 - 16
</TABLE>
Page 1
<PAGE> 3
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
( In thousands except share data )
<TABLE>
<CAPTION>
Feb 28, August 31,
1998 1997
------------ ------------
<S> <C> <C>
CURRENT ASSETS:
Cash $ 25,856 $ 32,998
Accounts receivable (less allowance for
collection losses of $6,730 and $6,116) 302,561 289,735
Inventories 240,509 220,644
Other 47,511 41,899
--------- ---------
TOTAL CURRENT ASSETS 616,437 585,276
OTHER ASSETS 6,964 6,524
PROPERTY, PLANT, AND EQUIPMENT, at cost:
Land 19,679 17,844
Buildings 62,091 55,700
Equipment 460,605 447,553
Leasehold improvements 21,955 19,666
Construction in process 49,588 29,841
--------- ---------
613,918 570,604
Less accumulated depreciation
and amortization (343,021) (323,343)
--------- ---------
270,897 247,261
--------- ---------
$ 894,298 $ 839,061
========= =========
</TABLE>
See notes to consolidated financial statements.
Page 2
<PAGE> 4
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
( In thousands except share data )
<TABLE>
<CAPTION>
Feb 28, August 31,
1998 1997
--------- ------------
CURRENT LIABILITIES:
<S> <C> <C>
Commercial paper $ 30,000 $ --
Notes payable 40,900 --
Accounts payable 137,980 136,988
Other payables and accrued expenses 106,769 129,036
Income taxes payable 56 618
Current maturities of long-term debt 11,492 11,502
--------- ---------
TOTAL CURRENT LIABILITIES 327,197 278,144
DEFERRED INCOME TAXES 20,834 20,834
LONG-TERM DEBT 175,960 185,211
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Capital stock:
Preferred stock -- --
Common stock, par value $5.00 a share;
authorized 40,000,000 shares; issued
16,132,583 shares, outstanding
14,902,200 and 14,760,930 shares 80,663 80,663
Additional paid-in capital 13,822 13,627
Cumulative translation adjustment (125)
Retained earnings 306,149 293,600
--------- ---------
400,509 387,890
Less treasury stock,
1,230,383 and 1,371,653 shares at cost (30,202) (33,018)
--------- ---------
370,307 354,872
--------- ---------
$ 894,298 $ 839,061
========= =========
</TABLE>
See notes to consolidated financial statements.
Page 3
<PAGE> 5
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
( In thousands except share data )
<TABLE>
<CAPTION>
Three months ended Six months ended
February 28, February 28,
------------------------------- -------------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
REVENUES:
Net sales $ 563,950 $ 523,463 $ 1,111,049 $ 1,050,322
Other revenues 4,228 2,292 7,630 6,394
----------- ----------- ----------- -----------
568,178 525,755 1,118,679 1,056,716
COSTS AND EXPENSES:
Cost of goods sold 501,894 467,344 988,594 936,651
Selling, general and
administrative expenses 44,215 40,555 86,372 80,555
Interest expense 4,218 3,686 8,397 7,157
Employees' pension and
profit sharing plans 4,663 2,724 9,406 6,398
----------- ----------- ----------- -----------
554,990 514,309 1,092,769 1,030,761
EARNINGS BEFORE INCOME TAXES 13,188 11,446 25,910 25,955
INCOME TAXES 4,840 4,245 9,509 9,577
----------- ----------- ----------- -----------
NET EARNINGS $ 8,348 $ 7,201 $ 16,401 $ 16,378
=========== =========== =========== ===========
Net earnings per share basic $ 0.57 $ 0.48 $ 1.11 $ 1.09
Net earnings per share diluted $ 0.56 $ 0.47 $ 1.09 $ 1.07
Cash dividends per share $ 0.13 $ 0.13 $ 0.26 $ 0.26
Average shares outstanding basic 14,774,164 15,114,327 14,744,931 15,070,473
Average shares outstanding diluted 15,019,864 15,359,570 15,013,918 15,372,675
</TABLE>
See notes to consolidated financial statements.
Page 4
<PAGE> 6
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
<TABLE>
<CAPTION>
Six months ended
February 28,
--------------------------
1998 1997
- -----------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 16,401 $ 16,378
Adjustments to earnings not requiring cash:
Depreciation and amortization 22,961 21,556
Provision for losses on receivables 1,011 616
Deferred income taxes
Other (33) (26)
-------- --------
Cash flows from operations before changes in
operating assets and liabilities 40,340 38,524
Changes in operating assets and liabilities:
Decrease (increase) in receivables (13,837) (14,050)
Decrease (increase) in inventories (19,865) (19,028)
Decrease (increase) in other assets (6,177) (11,153)
Increase (decrease) in accounts payable,
accrued expenses and income taxes (21,837) (24,807)
-------- --------
Net Cash Used by Operating Activities (21,376) (30,514)
- -----------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (46,597) (34,887)
Sales of property, plant and equipment 33 26
-------- --------
Net Cash Used by Investing Activities (46,564) (34,861)
- -----------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Commercial paper - net change 30,000 30,000
Notes payable - net change 40,900 35,110
Payments on long-term debt (9,261) (9,107)
Stock issued under stock option/purchase plans 5,868 4,375
Treasury stock acquired (2,857)
Dividends paid (3,852) (3,932)
-------- --------
Net Cash Provided by Financing Activities 60,798 56,446
- -----------------------------------------------------------------------------------
Decrease in Cash and Cash Equivalents (7,142) (8,929)
Cash and Cash Equivalents at Beginning of Year 32,998 24,260
-------- --------
Cash and Cash Equivalents at End of Period $ 25,856 $ 15,331
======== ========
</TABLE>
See notes to consolidated financial statements.
Page 5
<PAGE> 7
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
( In thousands except share data )
<TABLE>
<CAPTION>
Common Stock Treasury Stock
---------------------- Cumulative Add'l ------------------------
Number of Translation Paid-In Retained Number of
Shares Amount Adjustment Capital Earnings Shares Amount
---------- -------- ----------- ------- -------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance September 1, 1997 16,132,583 $80,663 $13,627 $293,600 (1,371,653) $(33,018)
Net earnings for six months
ended February 28, 1998 16,401
Cash dividends - $.26 a share (3,852)
Treasury stock acquired (95,000) (2,857)
Translation adjustment (125)
Stock issued under stock option,
purchase and bonus plans 195 236,270 5,673
---------- ------- ----- ------- -------- ---------- --------
Balance, February 28, 1998 16,132,583 $80,663 $(125) $13,822 $306,149 (1,230,383) $(30,202)
========== ======= ===== ======= ======== ========== ========
</TABLE>
See notes to consolidated financial statements.
Page 6
<PAGE> 8
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE A - LONG-TERM DEBT AND EQUITY (in thousands):
<TABLE>
<CAPTION>
Long-Term Current Amount
Debt Maturities Outstanding
--------- ---------- -----------
<S> <C> <C> <C>
7.20% notes due 2005 $100,000 $ -- $100,000
6.80% notes due 2007 50,000 -- 50,000
8.49% notes due 2001 21,428 7,143 28,571
8.75% note due 1999 4,284 4,286 8,570
Other 248 63 311
-------- -------- --------
$175,960 $ 11,492 $187,452
======== ======== ========
</TABLE>
NOTE B - TAXES ON INCOME:
Provision for taxes on income includes estimated United States taxes on
undistributed earnings of subsidiaries outside the United States.
NOTE C - QUARTERLY FINANCIAL DATA
In the opinion of Management, the accompanying unaudited consolidated
financial statements contain all adjustments (consisting of only normal
recurring accurals) necessary to present fairly the financial position as of
February 28, 1998, the results of operations for the three months and six months
then ended and cash flows for the six months. The results of operations for the
six month periods are not necessarily indicative of the results to be expected
for a full year.
NOTE D - EARNINGS PER SHARE
Statement of Financial Accounting Standards No. 128, EARNINGS PER SHARE, is
effective for the Company for the quarter ended February 28, 1998. It requires a
reconciliation of both the numerator and denominator of the earnings per share
calculations and restatement of previous periods. There are no adjustments to
net earnings to arrive at income for either per share calculation.
Reconciliation of share amounts is as follows:
<TABLE>
<CAPTION>
Three months ended Six months ended
February 28, February 28,
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Shares outstanding for basic earnings per share 14,774,164 15,114,327 14,744,931 15,070,473
Effect of dilutive securities:
Stock options/purchase plans 245,700 245,243 268,987 302,202
Shares outstanding for dilutive earnings per share 15,019,864 15,359,570 15,013,918 15,372,675
</TABLE>
There were no securities that have anti-dilutive effects. There was no effect of
the restated earnings per share amount for the second quarter of last year
compared to diluted earnings per share; for the six months ended February 28,
1997 restated earnings per share were one cent higher.
Page 7
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED RESULTS OF OPERATIONS
(in millions)
<TABLE>
<CAPTION>
2ND QTR 2nd Qtr
FY 1998 FY 1997
------- -------
<S> <C> <C>
Revenues $ 568 $ 526
Net earnings 8.3 7.2
Cash flow 20.5 18.5
LIFO reserve 28.9 30.1
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS Six Months
FY 1998 FY 1997
------- -------
<S> <C> <C>
Revenues $ 1,119 $ 1,057
Net earnings 16.4 16.4
Cash flow 40.3 38.5
</TABLE>
SIGNIFICANT EVENTS AFFECTING THE COMPANY THIS QUARTER:
- - Net earnings increased 16% over the prior year period.
- - Steel Group achieved record second quarter sales and shipments.
- - Despite volatile and weakening markets, the Recycling segment reported a
modest profit.
- - Marketing and Trading overcame Asian market turmoil and posted higher
operating income than the prior year period.
CONSOLIDATED DATA
The LIFO method of inventory valuation increased net earnings for the quarter
$270 thousand (2 cents per share diluted) compared to a decrease of $497
thousand (3 cents per share diluted) last year. For the six months net earnings
were $792 thousand higher (5 cents per share diluted) compared to a decrease of
$149 thousand (1 cent per share diluted) last year.
Page 8
<PAGE> 10
SEGMENT OPERATING DATA
Revenues and operating profit by business segment are shown in the following
table:
<TABLE>
<CAPTION>
Three months ended Six months ended
----------------------- -------------------------
Feb 28 Feb 28 Feb 28 Feb 28
1998 1997 1998 1997
------ ------ ------ ------
<S> <C> <C> <C> <C>
REVENUES:
Manufacturing $ 279,120 $ 245,090 $ 570,038 $ 503,049
Recycling 104,894 115,207 209,020 211,281
Marketing and
Trading 198,113 179,712 370,889 374,269
Corporate and
Eliminations (13,949) (14,254) (31,268) (31,883)
---------- ---------- ---------- ----------
$ 568,178 $ 525,755 $ 1,118,679 $1,056,716
OPERATING PROFIT:
Manufacturing $ 13,986 $ 10,707 $ 28,656 $ 24,704
Recycling 500 2,117 10 2,307
Marketing and
Trading 4,288 3,653 7,676 9,009
Corporate and
Eliminations (1,368) (1,345) (2,035) (2,908)
---------- ---------- ---------- ----------
$ 17,406 $ 15,132 $ 34,307 $ 33,112
</TABLE>
MANUFACTURING
Operating profit for the segment was 31% ahead of last year's comparable
quarter. Record second quarter steel mill sales and shipments were complemented
by strong results from the steel fabrication businesses. Copper Tube Division
operating results were hampered by lower margins and an equipment failure.
Steel prices were generally higher as reflected in the table below:
<TABLE>
<CAPTION>
2nd Qtr 1998 2nd Qtr 1997
------------ ------------
<S> <C> <C>
Average mill selling price $322 $308
Average fab selling price 672 650
Average scrap purchase price 119 110
</TABLE>
With higher prices and increased shipments, the Steel Group's operating
profit was nearly 50% higher than last year's second quarter. Shipments by the
four mills totaled 466,000 tons or 5% higher than last year.
Page 9
<PAGE> 11
Mill operating profits increased; particularly notable is the turnaround in
profitability of SMI South Carolina which has now been profitable thirteen
months in a row. Construction is underway at the new rolling mill at SMI South
Carolina and SMI Alabama's new finishing line.
Operating profit in the Company's steel fabrication businesses rose almost
two hundred percent with improvement in all product areas. Fabricated shipments
were a record 185,000 tons for a second quarter versus 151,000 tons in the
prior year.
The Steel Group computer migration project expense for the quarter was
$2.1 million compared to the previous year of $1.4 million. Pension settlement
expense was $885,000.
The Copper Tube Division operating profit declined compared with last
year. Demand for plumbing tube was good, but increased supply resulted
indirectly because of soft markets for air conditioning tube. Copper tube
shipments increased 6% over the second quarter last year. Production for the
quarter was off slightly from the prior year due to an equipment failure at the
number two extrusion press but is still 5% ahead of last year-to-date's
production rate.
RECYCLING --
The Recycling segment reported a modest profit for the quarter but well
below that of last year. Total tonnage was up but revenues and gross margins
declined because of a sharply reduced average sales price. Nonferrous markets,
especially copper and brass, were considerably weaker, and the intake of scrap
dropped. The Asian economic troubles are the driving force; global prices were
lower than otherwise and reduced demand for American origin scrap products is
creating more raw material supply for the domestic markets. Compared with last
year the volume of ferrous scrap shipped increased 11% to 318,000 tons; however
nonferrous shipments declined 13% to 46,000 tons mainly because copper volume
was significantly lower. Total volume of scrap processed including the Steel
Group processing plants reached 480,000 tons.
MARKETING AND TRADING --
Operating income for the Marketing and Trading segment was 17% higher than
last year's second quarter while revenues increased 10%. Sales into North
America remained at a healthy level and business in Europe was stronger, but
the turmoil in Asia was a negative for the entire Pacific Rim.
Page 10
<PAGE> 12
Trade flow in the Far East reversed dramatically and our sales and shipments to
Asian countries were sharply curbed, which was only partly offset by increased
purchases from the area. Operating profits from steel trading were down
significantly, affected by nonperformance by several customers. However,
profitability in steel marketing and distribution was maintained. Results for
nonferrous metal products remained buoyant on account of a substantial increase
in aluminum semis volume and growing business in copper and copper alloy
products. Activity for ores, minerals and industrial materials continued to be
solid. The Company continues to diversify sourcing in all product lines.
OTHER
Statement of Financial Accounting Standards No. 128, Earnings per Share,
was effective for the quarter ended February 28,1998. There was no effect on
the restated earnings per share amount for the second quarter of last year
compared to diluted earnings per share; for the six months ended February
28,1997 restated earnings per share were one cent higher.
ENVIRONMENTAL ACTIVITIES
The Company is subject to federal, state and local pollution control laws and
regulations in all locations where it has operating facilities. It anticipates
that compliance with these laws and regulations will involve continuing capital
expenditures and operating costs.
In the ordinary course of conducting its business, the Company becomes involved
in environmental litigation, administrative proceedings, and governmental
investigations. Certain of these environmental matters or other proceedings may
result in fines, penalties or judgments against the Company which may have a
material impact on earnings for a particular quarter. While the Company is
unable to estimate precisely the ultimate dollar amount of exposure to losses
in connection with such matters, it makes timely accruals as warranted. It is
the opinion of the Company's management that the outcome of such proceedings,
individually or in the aggregate, will not have a material adverse effect on
the business or consolidated financial position of the Company.
Page 11
<PAGE> 13
OUTLOOK
Domestic markets are firm and manufacturing margins should continue to
widen during the balance of the year despite the Asian situation and its
widespread effect. Construction in the United States, including nonresidential,
public and residential, is strong. Manufacturing sector and distributor markets
also remain firm. Relatively low priced steel imports into North America will
occur, but quantities should be restrained on account of production limitations
in the Far East and possible anti-dumping actions; consequently, the main
effect will be to temper price increases. Some improvement in recycling profits
is anticipated, although scrap markets are sloppy. Global demand and prices for
steel and nonferrous metals are very likely to remain under pressure,
especially if the prolonged economic slump in Japan is not turned around.
However, it is likely that further new marketing opportunities will arise in
response to the dislocations in the Far East. The Company remains optimistic
about the balance of this fiscal year and very positive for the future on
account of its fundamental strengths and sound strategic plan.
This report contains forward-looking statements regarding the outlook for
the Company's short-term financial results including shipments, pricing, demand
and general market conditions. There is inherent risk and uncertainty in any
forward-looking statements. Variances will occur and some could be materially
different from management's current opinion. Developments that could impact the
Company's expectations include interest rate changes, construction activity,
metals pricing over which the Company exerts little influence, new capacity and
product availability from competing steel minimills and other steel suppliers,
currency fluctuations and decisions by governments impacting the pace of
overall economic growth.
LIQUIDITY
Cash flow from operations before changes in operating assets and
liabilities for the six months was $40 million compared to $39 million last
year, the increase coming by way of higher depreciation expense. Accounts
receivable increased $14 million due to strong quarterly results of the steel
fabrication businesses and international trading activity. Steel inventories
increased at the Company's joist plants and its rail salvage business. other
assets increased due to advance payments on contracts. Accounts payable and
accrued expenses decreased $22 million, about the same as the comparable period
last year. The Company financed these working capital needs as
Page 12
<PAGE> 14
well as $9 million of payments on long-term debt through internal cash flow and
an increase in short term borrowings of $71 million. The Company invested $47
million in capital expenditures as part of its anticipated $125 million annual
capital program.
During the quarter, the Company repurchased 95,000 shares of Company stock
at an average cost of $30.07 per share. At February 28,1998, there were
14,902,200 common shares issued and outstanding with 1,230,383 shares held in
the Company's treasury. Stockholders' equity was $370 million or $24.85 per
share.
Net working capital was $289 million at February 28,1998 compared to $307
million at August 31,1997. The current ratio was 1.9 compared to 2.1 at August
31,1997. The Company's effective tax rate for the six months was 36.7%; the
rate for the comparable period last year was 36.9%.
Long-term debt as a percent of total capitalization was 31% at February
28, 1998 compared to 33% at August 31,1997. The ratio of total debt to total
capitalization plus short-term debt stood at 39.8% compared with 34.4% at year
end due to seasonal borrowing requirements.
Page 13
<PAGE> 15
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Reference is made to the information incorporated by reference from
Item 3. Legal Proceedings in the Company's Annual Report on Form 10-K for the
year ending August 31, 1997 filed November 25, 1997, with the Securities and
Exchange Commission.
ITEM 2. CHANGES IN SECURITIES
Not Applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the registrant's annual meeting of stockholders held January 22,
1998, a total of 13,378,824 shares of common stock or approximately 90% percent
of those outstanding and entitled to vote were present in person or by proxy.
There was no solicitation in opposition to management's nominees and all such
nominees were elected as set forth in the following tabulation:
<TABLE>
<CAPTION>
Nominee Votes For Votes Withheld
------- --------- --------------
<S> <C> <C>
Moses Feldman 13,266,997 111,827
Ralph E. Loewenberg 13,259,782 119,042
Stanley A. Rabin 13,265,375 113,449
Marvin Selig 13,240,735 138,090
</TABLE>
Page 14
<PAGE> 16
Stockholders approved the proposed amendment to the Company's General
Employees Stock Purchase Plan by the following vote:
<TABLE>
<CAPTION>
For Against Abstain
--- ------- -------
<S> <C> <C>
12,984,104 369,101 25,619
</TABLE>
Stockholders also approved the ratification of the appointment of
Deloitte & Touche LLP as auditors of the registrant for the fiscal year ending
August 31, 1998, by the following vote:
<TABLE>
<CAPTION>
For Against Abstain
---- ------- -------
<S> <C> <C>
13,306,747 53,142 18,935
</TABLE>
ITEM 5. OTHER INFORMATION
Not Applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
A. Exhibits required by Item 601 of Regulation S-K.
27. Financial Data Schedule
Page 15
<PAGE> 17
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.
COMMERCIAL METALS COMPANY
April 10, 1998 Lawrence A. Engels
Vice President, Treasurer &
Chief Financial Officer
April 10, 1998 William B. Larson
Controller
Page 16
<PAGE> 18
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-START> SEP-01-1997
<PERIOD-END> FEB-28-1998
<CASH> 25,856
<SECURITIES> 0
<RECEIVABLES> 309,291
<ALLOWANCES> 6,730
<INVENTORY> 240,509
<CURRENT-ASSETS> 616,437
<PP&E> 613,918
<DEPRECIATION> 343,021
<TOTAL-ASSETS> 894,298
<CURRENT-LIABILITIES> 327,197
<BONDS> 175,960
0
0
<COMMON> 80,663
<OTHER-SE> 289,644
<TOTAL-LIABILITY-AND-EQUITY> 894,298
<SALES> 563,950
<TOTAL-REVENUES> 568,178
<CGS> 501,894
<TOTAL-COSTS> 501,894
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 504
<INTEREST-EXPENSE> 4,218
<INCOME-PRETAX> 13,188
<INCOME-TAX> 4,840
<INCOME-CONTINUING> 8,348
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,348
<EPS-PRIMARY> .57
<EPS-DILUTED> .56
</TABLE>
