<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 May 31, 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 May 31, 1998 there were 14,976,904 shares of the Company's common stock
issued and outstanding excluding 1,155,679 shares held in the Company's
treasury.
<PAGE> 2
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
------------------------------------------
INDEX
-----
<TABLE>
<CAPTION>
Page No.
--------
PART I - Financial Statements:
<S> <C>
Consolidated Balance Sheets -
May 31, 1998 and August 31, 1997 2 - 3
Consolidated Statements of Earnings -
Nine months and three months ended
May 31, 1998 and 1997 4
Consolidated Statements of Cash Flows -
Nine months ended May 31, 1998 and 1997 5
Consolidated Statement of Stockholders' Equity
For the nine months ended May 31, 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 - 15
</TABLE>
Page 1
<PAGE> 3
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
------------------------------------------
CONSOLIDATED BALANCE SHEETS
---------------------------
ASSETS
------
(In thousands except share data)
<TABLE>
<CAPTION>
May 31, August 31,
1998 1997
--------- ----------
CURRENT ASSETS:
<S> <C> <C>
Cash $ 29,793 $ 32,998
Accounts receivable (less allowance for
collection losses of $7,507 and $6,116) 342,378 289,735
Inventories 256,668 220,644
Other 44,211 41,899
--------- ---------
TOTAL CURRENT ASSETS 673,050 585,276
OTHER ASSETS 11,857 6,524
PROPERTY, PLANT, AND EQUIPMENT, at cost:
Land 21,198 17,844
Buildings 64,130 55,700
Equipment 475,631 447,553
Leasehold improvements 22,906 19,666
Construction in process 70,573 29,841
--------- ---------
654,438 570,604
Less accumulated depreciation
and amortization (354,230) (323,343)
--------- ---------
300,208 247,261
--------- ---------
$ 985,115 $ 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>
May 31, August 31,
1998 1997
--------- ----------
<S> <C> <C>
CURRENT LIABILITIES:
Commercial paper $ 40,000 $ --
Notes payable 58,000 --
Accounts payable 149,904 136,988
Other payables and accrued expenses 148,979 129,036
Income taxes payable 1,058 618
Current maturities of long-term debt 11,487 11,502
--------- ---------
TOTAL CURRENT LIABILITIES 409,428 278,144
DEFERRED INCOME TAXES 20,834 20,834
LONG-TERM DEBT 173,798 185,211
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
14,976,904 and 14,760,930 shares 80,663 80,663
Additional paid-in capital 13,691 13,627
Cumulative translation adjustment (455)
Retained earnings 315,595 293,600
--------- ---------
409,494 387,890
Less treasury stock, 1,155,679 and 1,371,653 shares
at cost (28,439) (33,018)
--------- ---------
381,055 354,872
--------- ---------
$ 985,115 $ 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 Nine months ended
May 31, May 31,
------------------------- -------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
REVENUES:
Net sales $ 603,798 $ 586,141 $ 1,714,847 $ 1,636,463
Other revenues 2,301 3,505 9,931 9,899
----------- ----------- ----------- -----------
606,099 589,646 1,724,778 1,646,362
COSTS AND EXPENSES:
Cost of goods sold 532,263 523,637 1,520,857 1,460,288
Selling, general and
administrative expenses 46,213 42,944 132,585 123,499
Interest expense 4,720 3,898 13,117 11,055
Employees' pension and
profit sharing plans 4,908 4,247 14,314 10,645
----------- ----------- ----------- -----------
588,104 574,726 1,680,873 1,605,487
EARNINGS BEFORE INCOME TAXES 17,995 14,920 43,905 40,875
INCOME TAXES 6,604 5,410 16,113 14,987
----------- ----------- ----------- -----------
NET EARNINGS $ 11,391 $ 9,510 $ 27,792 $ 25,888
=========== =========== =========== ===========
Net earnings per share basic $ 0.77 $ 0.64 $ 1.88 $ 1.73
Net earnings per share diluted $ 0.75 $ 0.63 $ 1.84 $ 1.69
Cash dividends per share $ 0.13 $ 0.13 $ 0.39 $ 0.39
Average shares outstanding basic 14,870,346 14,862,929 14,786,736 15,001,292
Average shares outstanding diluted 15,254,211 15,100,609 15,112,299 15,291,667
</TABLE>
See notes to consolidated financial statements.
Page 4
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COMMERCIAL METALS COMPANY AND SUBSIDIARIES
------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
(In thousands)
<TABLE>
<CAPTION>
Nine months ended
May 31,
-----------------------
1998 1997
- ---------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 27,792 $ 25,888
Adjustments to earnings not requiring cash:
Depreciation and amortization 34,722 32,634
Provision for losses on receivables 1,957 1,087
Deferred income taxes
Other (95) (182)
--------- ---------
Cash flows from operations before changes in
operating assets and liabilities 64,376 59,427
Changes in operating assets and liabilities:
Decrease (increase) in receivables (54,600) (10,692)
Decrease (increase) in inventories (36,024) (25,402)
Decrease (increase) in other assets (8,100) (14,493)
Increase (decrease) in accounts payable,
accrued expenses and income taxes 33,299 2,252
--------- ---------
Net Cash Provided (Used) by Operating Activities (1,049) 11,092
- ---------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (87,669) (51,225)
Sales of property, plant and equipment 95 182
--------- ---------
Net Cash Used by Investing Activities (87,574) (51,043)
- ---------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Commercial paper - net change 40,000 30,000
Notes payable - net change 58,000 30,300
Payments on long-term debt (11,428) (11,270)
Stock issued under stock option/purchase plans 7,500 4,698
Treasury stock acquired (2,857) (17,727)
Dividends paid (5,797) (5,863)
--------- ---------
Net Cash Provided by Financing Activities 85,418 30,138
- ---------------------------------------------------------------------------------------
Decrease in Cash and Cash Equivalents (3,205) (9,813)
Cash and Cash Equivalents at Beginning of Year 32,998 24,260
--------- ---------
Cash and Cash Equivalents at End of Period $ 29,793 $ 14,447
========= =========
</TABLE>
See notes to consolidated financial statements.
Page 5
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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 nine months
ended May 31, 1998 27,792
Cash dividends - $.39 a share (5,797)
Treasury stock acquired (95,000) (2,857)
Translation adjustment $ (455)
Stock issued under stock option,
purchase and bonus plans 64 310,974 7,436
----------- -------- -------- --------- --------- ----------- --------
Balance, May 31, 1998 16,132,583 $ 80,663 $ (455) $ 13,691 $ 315,595 (1,155,679) $(28,439)
=========== ======== ======== ========= ========= =========== ========
</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 2,141 4,286 6,427
Other 229 58 287
-------- -------- --------
$173,798 $ 11,487 $185,285
======== ======== ========
</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 May
31, 1998, the results of operations for the three months and nine months then
ended and cash flows for the nine months. The results of operations for the nine
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,
requires a reconciliation of both the numerator and denominator of the earnings
per share calculations. 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 Nine months ended
May 31, May 31,
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Shares outstanding for basic earnings per share 14,870,346 14,862,929 14,786,736 15,001,292
Effect of dilutive securities:
Stock options/purchase plans 383,865 237,680 325,563 290,375
Shares outstanding for dilutive earnings per share 15,254,211 15,100,609 15,112,299 15,291,667
</TABLE>
There were no securities that have anti-dilutive effects. There was no
effect of the restated diluted per share amount for the third quarter or nine
months of last year compared to earnings per share as originally reported.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
(in millions)
3RD QTR 3RD QTR
FY 1998 FY 1997
------- -------
<S> <C> <C>
Revenues $ 606 $ 590
Net earnings 11.4 9.5
Cash flow 24.0 20.9
LIFO reserve 28.5 31.3
</TABLE>
<TABLE>
<CAPTION>
NINE MONTHS NINE MONTHS
FY 1998 FY 1997
----------- -----------
<S> <C> <C>
Revenues $ 1,725 $ 1,646
Net earnings 27.8 25.9
Cash flow 64.4 59.4
</TABLE>
SIGNIFICANT EVENTS AFFECTING THE COMPANY THIS QUARTER:
- - 20% increase in earnings; second best third quarter ever
- - Cash flow from operations; second best quarter in history
- - Best quarter in history for CMC Steel Group
- - Sharply reduced sales prices led to modest Recycling loss
- - Consistent performance from Marketing and Trading in spite of Far East market
collapse
CONSOLIDATED DATA
The Lifo method of inventory valuation increased net earnings for the quarter
$280 thousand (2 cents per share) compared to a decrease of $803 thousand (5
cents per share) last year. For the nine months net earnings were $1.1 million
higher
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<PAGE> 10
(7 cents per share) compared to a decrease of $952 thousand (6 cents per share)
last year.
SEGMENT OPERATING DATA
Revenues and operating profit by business segment are shown in the
following table:
<TABLE>
<CAPTION>
Three months ended Nine months ended
May 31 May 31 May 31 May 31
1998 1997 1998 1997
----------- ----------- ----------- -----------
REVENUES:
<S> <C> <C> <C> <C>
Manufacturing $ 313,719 $ 277,871 $ 883,757 $ 780,920
Recycling 109,087 129,414 318,107 340,695
Marketing and Trading 199,866 198,669 570,755 572,938
Corporate and Eliminations (16,573) (16,308) (47,841) (48,191)
----------- ----------- ----------- -----------
$ 606,099 $ 589,646 $ 1,724,778 $ 1,646,362
OPERATING PROFIT:
Manufacturing $ 19,683 $ 13,421 $ 48,339 $ 38,125
Recycling (420) 1,255 (410) 3,562
Marketing and Trading 4,962 4,745 12,638 13,754
Corporate and Eliminations (1,510) (603) (3,545) (3,511)
----------- ----------- ----------- -----------
$ 22,715 $ 18,818 $ 57,022 $ 51,930
</TABLE>
MANUFACTURING -
Revenues and operating profit for the segment were significantly ahead of
last year's comparable quarter. The quarter was the best in history for the
Steel Group with record sales for any quarter and record shipments for a third
quarter. The Copper Tube Division operating profit also was well above last
year.
<TABLE>
<CAPTION>
3rd Qtr 1998 3rd Qtr 1997
------------ ------------
<S> <C> <C>
Average mill selling price $325.80 $311.91
Average fab selling price 648.67 626.30
Average scrap purchase price 112.87 113.60
</TABLE>
With higher prices and record shipments, the Steel Group's operating
profit was 41% higher than last year's third quarter. Third quarter records were
set for steel mill
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production. Mill tonnage shipped at 490,000 tons was 5% below last year's third
quarter but included lower billet shipments.
The four mills showed a 7% increase in operating profit led by SMI
Alabama and SMI Arkansas both with 24% increases. SMI Texas and SMI South
Carolina had particularly strong production increases. Construction of the new
rolling mill and ancillary equipment at SMI South Carolina is on schedule.
Operating profit in the Company's steel fabrication businesses rose
over three hundred percent with strong results in virtually all product areas.
The Company's structural fabrication units as well as the joist plants and
concrete related products warehouses had especially good results. Fabricated
shipments of 222,000 tons were a record for any quarter and compare favorably
with 175,000 tons in the prior year.
The Steel Group computer migration project tax effected expense was
$1.6 million compared with $1.2 million in the same period last year. The
increase was due mainly to higher consulting costs. The project is scheduled to
be completed in mid-1999; quarterly costs are anticipated to drop to $1 million
net after taxes in future quarters. Pension settlement costs of $650 thousand
net were incurred during the quarter and will conclude with a lesser amount in
the fiscal fourth quarter.
Strong residential construction markets have maintained demand for
plumbing tube. Margins were better than the second quarter of this year. Copper
tube shipments increased 19% over the third quarter last year. Production is 4%
ahead of last year's rate.
RECYCLING -
The Recycling segment's revenues and gross margins declined
significantly because of a sharply reduced average sales price. This resulted in
a modest loss compared with a profit in the year ago quarter. Nonferrous markets
were notably weaker. Average copper and brass scrap prices fell 28% with
shipments down 23%. Aluminum scrap prices fell 11% with shipments down 11%.
Ferrous prices held against last year's third quarter but fell during the
quarter due to the very weak Asian markets. Ferrous scrap shipped increased 8%
to 323,000 tons but nonferrous shipments declined 16% to 42,000 tons. Total
volume of scrap processed including the Steel Group processing plants reached
483,000 tons.
During the quarter the Company acquired the assets of
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<PAGE> 12
several scrap processing facilities in Missouri, Oklahoma, and Kansas. The
operations are neither individually nor combined significant to the financial
position of the Company. The new shredder in Jacksonville, Florida and a new
shear in Odessa, Texas will come online next quarter. During the quarter the
Division restructured its management into five regions to improve the
effectiveness in scrap sourcing, asset utilization and processing operations.
MARKETING AND TRADING -
Operating income for the Marketing and Trading segment was 5% higher
than last year's third quarter, remarkable considering the collapse of
traditional Far East markets. Purchases from the Far East increased
significantly and resulted in steel trading incurring only a marginal decrease
in operating profits. Business in Europe increased but sales to customary Asian
markets continued at a sharply reduced rate. Profitability in steel marketing
and distribution increased. Nonferrous metal product tonnage increased
particularly in aluminum. At quarter end the Company acquired the assets of a
ferro alloys trading unit in Australia; the acquisition was not significant in
size to the segment.
OTHER -
The Marketing and Trading segment in conjunction with the Corporate
office has begun the implementation of updated financial and management
information systems. Among other system improvements year 2000 considerations
are being addressed. Project completion is anticipated in the summer of 1999.
Current estimates of total costs range between $3.5 to $4 million pretax which
will be amortized over five years.
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
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<PAGE> 13
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.
OUTLOOK
Domestic steel markets are firm and manufacturing margins should remain
at a good level despite the effects of the turmoil in Asia. The outlook for
fabricated steel also is favorable. Construction in the United States including
private nonresidential, public and residential is strong. Manufacturing sector
and distributor demand continue to be firm. Relatively low priced steel is being
shipped into North America, but it is likely that in long products, which are
the Company's product lines, the market will absorb the quantities that will be
imported and the main effect will be to limit price increases. Some improvement
in recycling profits is anticipated, although scrap prices will remain weak.
Global demand and prices for steel and nonferrous metals have fallen
considerably, and it appears that any recovery in Asia will be slow, especially
if the Japanese Yen continues to weaken because it will exert additional
pressure on Asia. Nevertheless, it is probable that additional new marketing
opportunities will arise as a result of the dislocations in the Far East. During
the quarter, the US Congress passed a six year transportation bill to help
restore the nation's infrastructure which will substantially boost highway
spending and includes especially large increases for the states of Texas and
South Carolina. It is anticipated that the Company will benefit from this
program.
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, implementation of information systems, and
decisions by governments impacting the pace of overall economic growth.
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<PAGE> 14
LIQUIDITY
Cash flow from operations before changes in operating assets and
liabilities for the nine months was $64 million compared to $59 million last
year. The increase was due equally to higher earnings and depreciation. Accounts
receivable increased $55 million since August 31 principally due to increases in
structural steel activity and the Marketing and Trading segment. Inventories
have increased $36 million since year end due to seasonal buildups in the
Manufacturing segment. Accounts payable and accrued expenses have increased $33
million in conjunction with the Manufacturing segment's inventory increase. The
Company financed these working capital needs as well as $11 million of payments
on long-term debt through internal cash flow and an increase in short term
borrowings of $98 million. The Company invested $88 million in capital
expenditures as part of its anticipated $125 million annual capital program.
At May 31,1998, there were 14,976,904 common shares issued and
outstanding with 1,155,679 shares held in the Company's treasury. Stockholders'
equity was $381 million or $25.44 per share.
Net working capital was $264 million at May 31,1998 compared to $307
million at August 31,1997. The current ratio was 1.6 compared to 2.1 at August
31,1997. The Company's effective tax rate for the nine months was 36.7%,
comparable to the prior period.
Long-term debt as a percent of total capitalization was 30.2% at May
31,1998 compared to 33% at August 31,1997. The ratio of total debt to total
capitalization plus short-term debt stood at 41.3%.
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<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
Not Applicable.
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.
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<PAGE> 16
27.1 Restated Financial Data Schedule for year ended
August 31, 1996
27.2 Restated Financial Data Schedule for year ended
August 31, 1997
27.3 Restated Financial Data Schedule for periods ended
November 30, 1997 and February 28, 1998
27.4 Financial Data Schedule for period ended May 31, 1998.
B. No reports on Form 8-K have been filed during the quarter for
which this report is filed.
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
July 13, 1998 Lawrence A. Engels
Vice President, Treasurer
& Chief Financial Officer
July 13, 1998 William B. Larson
Controller
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<PAGE> 17
EXHIBIT INDEX
Exhibit Description
27.1 Restated Financial Data Schedule for year ended
August 31, 1996
27.2 Restated Financial Data Schedule for year ended
August 31, 1997
27.3 Restated Financial Data Schedule for periods ended
November 30, 1997 and February 28, 1998
27.4 Financial Data Schedule for period ended May 31, 1998.
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS 9-MOS YEAR
<FISCAL-YEAR-END> AUG-31-1996 AUG-31-1996 AUG-31-1996 AUG-31-1996
<PERIOD-START> SEP-1-1995 SEP-1-1995 SEP-1-1995 SEP-1-1995
<PERIOD-END> NOV-30-1995 FEB-29-1996 MAY-31-1996 AUG-31-1996
<CASH> 10,872 10,978 19,055 24,260
<SECURITIES> 0 0 0 0
<RECEIVABLES> 289,307 299,329 316,234 300,112
<ALLOWANCES> 4,965 5,221 5,395 5,501
<INVENTORY> 200,813 215,539 192,584 186,201
<CURRENT-ASSETS> 529,836 552,491 554,418 539,483
<PP&E> 474,144 483,991 494,925 506,969
<DEPRECIATION> 257,124 265,974 275,773 284,259
<TOTAL-ASSETS> 751,073 775,386 778,381 766,756
<CURRENT-LIABILITIES> 273,036 293,444 287,557 264,073
<BONDS> 155,840 148,676 146,519 146,506
0 0 0 0
0 0 0 0
<COMMON> 80,663 80,663 80,663 80,663
<OTHER-SE> 220,141 231,210 242,249 254,470
<TOTAL-LIABILITY-AND-EQUITY> 751,073 775,386 778,381 766,756
<SALES> 588,238 1,103,093 1,737,662 2,310,213
<TOTAL-REVENUES> 590,219 1,108,400 1,747,544 2,322,363
<CGS> 530,282 987,509 1,560,415 2,068,534
<TOTAL-COSTS> 530,282 987,509 1,560,415 2,068,534
<OTHER-EXPENSES> 0 0 0 0
<LOSS-PROVISION> 256 882 1,414 2,535
<INTEREST-EXPENSE> 3,697 7,857 12,072 15,822
<INCOME-PRETAX> 17,126 32,951 51,734 72,921
<INCOME-TAX> 6,294 12,109 18,880 26,897
<INCOME-CONTINUING> 10,832 20,842 32,854 46,024
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 10,832 20,842 32,854 46,024
<EPS-PRIMARY> .71 1.38 2.18 3.06
<EPS-DILUTED> .70 1.37 2.15 3.01
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS 9-MOS YEAR
<FISCAL-YEAR-END> AUG-31-1997 AUG-31-1997 AUG-31-1997 AUG-31-1997
<PERIOD-START> SEP-1-1996 SEP-1-1996 SEP-1-1996 SEP-1-1996
<PERIOD-END> NOV-30-1996 FEB-28-1997 MAY-31-1997 AUG-31-1997
<CASH> 11,986 15,331 14,447 32,998
<SECURITIES> 0 0 0 0
<RECEIVABLES> 308,256 313,831 310,256 295,851
<ALLOWANCES> 5,803 5,786 6,040 6,116
<INVENTORY> 191,194 205,229 211,603 220,644
<CURRENT-ASSETS> 540,606 571,876 577,130 585,276
<PP&E> 523,641 540,871 556,683 570,604
<DEPRECIATION> 294,641 304,830 315,382 323,343
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80,663 80,663
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