<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 November 30, 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 November 30, 1998 there were 14,584,816 shares of the Company's common
stock issued and outstanding excluding 1,547,767 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 -
November 30, 1998 and August 31, 1998 2 - 3
Consolidated Statements of Earnings -
Three months ended November 30, 1998 and 1997 4
Consolidated Statements of Cash Flows -
Three months ended November 30, 1998 and 1997 5
Consolidated Statement of Stockholders' Equity
For the three months ended November 30, 1998 6
Notes to Consolidated Financial Statements 7
Management's Discussion and Analysis of the
Consolidated Financial Statements 8 - 14
PART II - Other Information and Signatures 15 - 16
</TABLE>
Page 1
<PAGE> 3
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
---------------------------------------------
CONSOLIDATED BALANCE SHEETS
------------------------------
ASSETS
-----------
( In thousands except share data )
<TABLE>
<CAPTION>
Nov. 30, August 31,
1998 1998
----------- -----------
<S> <C> <C>
CURRENT ASSETS:
Cash $ 13,842 $ 30,985
Accounts receivable (less allowance for
collection losses of $7,809 and $8,120) 311,002 318,655
Inventories 275,635 257,231
Other 58,279 66,629
----------- -----------
TOTAL CURRENT ASSETS 658,758 673,500
OTHER ASSETS 11,891 10,655
PROPERTY, PLANT, AND EQUIPMENT, at cost:
Land 25,125 24,967
Buildings 68,025 67,505
Equipment 503,189 499,899
Leasehold improvements 27,386 26,084
Construction in process 105,739 61,946
----------- -----------
729,464 680,401
Less accumulated depreciation
and amortization (371,054) (361,939)
----------- -----------
358,410 318,462
----------- -----------
$ 1,029,059 $ 1,002,617
=========== ===========
</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>
Nov. 30, August 31,
1998 1998
----------- -----------
<S> <C> <C>
CURRENT LIABILITIES:
Commercial paper $ 50,000 $ 40,000
Notes payable 99,099 60,809
Accounts payable 143,773 156,389
Other payables and accrued expenses 134,379 150,512
Income taxes payable 5,134 6,870
Current maturities of long-term debt 11,865 11,483
----------- -----------
TOTAL CURRENT LIABILITIES 444,250 426,063
DEFERRED INCOME TAXES 21,376 21,376
LONG-TERM DEBT 172,023 173,789
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
14,584,816 and 14,569,611 shares 80,663 80,663
Additional paid-in capital 14,073 14,285
Cumulative translation adjustment (874) (1,596)
Retained earnings 337,714 328,597
----------- -----------
431,576 421,949
Less treasury stock,
1,547,767 and 1,562,972 shares at cost (40,166) (40,560)
----------- -----------
391,410 381,389
----------- -----------
$ 1,029,059 $ 1,002,617
=========== ===========
</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
Nov 30,
-------------------------
1998 1997
--------- ---------
<S> <C> <C>
REVENUES:
Net sales $ 549,376 $ 550,501
COSTS AND EXPENSES:
Cost of goods sold 475,256 486,700
Selling, general and
administrative expenses 46,863 42,157
Interest expense 4,911 4,179
Employees' pension and
profit sharing plans 4,798 4,743
----------- -----------
531,828 537,779
EARNINGS BEFORE INCOME TAXES 17,548 12,722
INCOME TAXES 6,537 4,669
----------- -----------
NET EARNINGS $ 11,011 $ 8,053
=========== ===========
Net earnings per share basic $ 0.76 $ 0.55
Net earnings per share diluted $ 0.75 $ 0.54
Cash dividends per share $ 0.13 $ 0.13
Average shares outstanding basic 14,578,065 14,715,697
Average shares outstanding diluted 14,660,851 15,045,138
</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>
Three months ended
Nov 30,
------------------------
1998 1997
--------- ---------
<S> <C> <C>
- ------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 11,011 $ 8,053
Adjustments to earnings not requiring cash:
Depreciation and amortization 11,853 11,278
Provision for losses on receivables 378 507
Other (26) 25
-------- --------
Cash flows from operations before changes in
operating assets and liabilities 23,216 19,863
Changes in operating assets and liabilities:
Decrease (increase) in receivables 7,275 11,528
Decrease (increase) in inventories (18,404) 12,261
Decrease (increase) in other assets 7,836 71
Increase (decrease) in accounts payable,
accrued expenses and income taxes (30,485) (60,088)
-------- --------
Net Cash Used by Operating Activities (10,562) (16,365)
- ------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (51,801) (22,208)
Sales of property, plant and equipment 26 (25)
-------- --------
Net Cash Used by Investing Activities (51,775) (22,233)
- ------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Commercial paper - net change 10,000 --
Notes payable - net change 38,290 28,320
Payments on long-term debt (1,384) (2,090)
Stock issued under stock option/purchase plans 182 895
Dividends paid (1,894) (1,922)
-------- --------
Net Cash Provided by Financing Activities 45,194 25,203
- ------------------------------------------------------------------------------
Decrease in Cash and Cash Equivalents (17,143) (13,395)
Cash and Cash Equivalents at Beginning of Year 30,985 32,998
-------- --------
Cash and Cash Equivalents at End of Period $ 13,842 $ 19,603
======== ========
</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, 1998 16,132,583 $80,663 ($1,596) $14,285 $328,597 (1,562,972) ($40,560)
Net earnings for three months
ended November 30, 1998 11,011
Cash dividends - $.13 per share (1,894)
Translation adjustment 722
Stock issued under stock option,
purchase and bonus plan (212) 15,205 394
---------- ---------- ---------- ---------- ---------- ----------- ---------
Balance, November 30, 1998 16,132,583 $80,663 ($874) $14,073 $337,714 (1,547,767) ($40,166)
</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 4,284
Other 595 438 1,033
-------- -------- --------
$172,023 $ 11,865 $183,888
======== ======== ========
</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
November 30, 1998, the results of operations for the three months then ended and
the cash flows for the three months. The results of operations for the three
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 period. Reconciliation of share amounts is as follows:
<TABLE>
<CAPTION>
Three months ended Nov. 30,
1998 1997
--------- ----------
<S> <C> <C>
Shares outstanding for basic earnings per share 14,578,065 14,715,697
Effect of dilutive securities:
Stock options/purchase plans 82,786 329,441
Shares outstanding for dilutive earnings per share 14,660,851 15,045,138
</TABLE>
Stock options with total share commitments of 1,369,812 at November 30,
1998 were anti-dilutive based on an average share price of $24.83 for the
quarter and exercise prices between $26.25 and $29.81. The options expire at
various dates between 2003 and 2006.
NOTE E - OTHER COMPREHENSIVE INCOME
Statement of Financial Accounting Standards No. 130, REPORTING
COMPREHENSIVE INCOME, was effective for the Company September 1, 1998. The
Standard requires disclosure of changes in stockholders' equity from nonowner
sources, which in the Company's instance is limited to foreign currency
translation adjustments. Such adjustments totaled $722,000 in the quarter ended
November 30, 1998 and zero for the prior period.
Page 7
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED RESULTS OF OPERATIONS
(in millions)
1st Qtr 1st Qtr
FY 1999 FY 1998
------- -------
Revenues $ 549 $ 551
Net earnings 11.0 8.1
Cash flow 23.2 19.9
EBITDA 34.3 28.2
LIFO reserve 19.4 29.3
SIGNIFICANT EVENTS AFFECTING THE COMPANY THIS QUARTER:
- - Record first quarter earnings
- - Steel Group achieved record first quarter sales and earnings
- - $1.8 million after-tax litigation settlement
- - Recycling contributed positive cash flow in horrific market
- - Amid collapsing world markets, Marketing and Trading bettered prior year
CONSOLIDATED DATA
The Lifo method of inventory valuation increased net earnings for the quarter
$2.0 million (14 cents per share) compared to an increase of $521 thousand (3
cents per share) 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 November 30,
----- ------ ----- -------- ---
1998 1997
---- ----
<S> <C> <C>
REVENUES:
Manufacturing $ 304,086 $ 290,918
Recycling 78,575 104,126
Marketing and Trading 184,164 172,776
Corporate and Eliminations (17,449) (17,319)
--------- ---------
$ 549,376 $ 550,501
========= =========
OPERATING PROFIT:
Manufacturing $ 23,593 $ 14,670
Recycling (4,123) (490)
Marketing and Trading 4,649 3,388
Corporate and Eliminations (1,660) (667)
--------- ---------
$ 22,459 $ 16,901
========= =========
</TABLE>
MANUFACTURING -
Operating profit for the segment was 61% above the prior year quarter on 5%
higher revenues. Lower raw material costs resulted in excellent margins,
overcoming weaker mill pricing.
<TABLE>
<CAPTION>
1st Qtr 1999 1st Qtr 1998
--- --- ---- --- --- ----
<S> <C> <C>
Average mill selling price $311 $315
Average fab selling price 675 657
Average scrap purchase price 81 112
</TABLE>
With strong performances in downstream fabrication businesses, lower raw
material costs, and a $1.8 million graphite electrode litigation settlement, the
Steel Group achieved a record first quarter operating profit. Bolstered by a $31
per ton lower average scrap purchase cost which sustained margins, the four
minimills recorded a 34% increase in operating profit despite a 20% decline in
shipments to 419,000 tons. SMI Texas, SMI Alabama, and SMI South Carolina all
had impressive increases in profit over the prior year.
Page 9
<PAGE> 11
SMI Arkansas, although profitable, was impacted more by the effect of cheaper
imported steel. Installation of the new rolling mill and ancillary equipment at
SMI South Carolina is on schedule as is the new finishing line at SMI Alabama.
Operating profit in steel fabrication rose 80% above last year's first
quarter with strong performance in most product lines. Average fab selling price
rose $18 per ton, partially because of product mix, while the cost of steel
purchased generally fell. Fabricated steel shipments totaled 205,000 tons
(196,000 tons in the prior year) and were a record for a first quarter.
The Copper Tube Division operating profit was over 50% ahead of the
comparable quarter last year. Favorable interest rates kept demand for plumbing
tube strong from the housing sector. Lower copper prices held sales dollars down
but metal spreads increased. Copper tube shipments and production decreased 3%
versus the first quarter last year.
RECYCLING -
The Recycling segment reported a significant loss compared with a marginal
loss in the year ago quarter due to substantially lower global demand and
terrible prices coupled with less availability of unprepared scrap. Cash flow
from operations, nonetheless, was positive. Gross margins fell more rapidly than
operating costs. Steel scrap markets were the worst in 25 years. Ferrous scrap
tonnage shipped was up 4%, but ferrous sales prices dropped precipitously by an
average of $40 per ton. Nonferrous markets weakened further to the poorest
levels in many years, and the intake of scrap remained depressed, although
nonferrous margins were steady. Total volume of scrap processed, including Steel
Group processing plants, was 496,000 tons against 449,000 tons last year. During
the quarter the Company acquired the assets of a nonferrous scrap processor in
the Houston area which was not significant to the financial position of the
Company.
MARKETING AND TRADING -
Amid the lowest international steel prices over the last 20 years and the
collapse of global markets, the Marketing and Trading segment achieved a
significant 37% increase in operating profit. Purchases from the Far East
continued at a higher level, shipments into North America were steady for
Page 10
<PAGE> 12
most product lines and business in Europe increased. However, gross margins in
steel marketing and distribution as well as steel trading were under tremendous
pressure. The Company achieved further market penetration for nonferrous metal
products including aluminum, copper and copper alloy semis and maintained
profitability. It was another profitable quarter in ores, minerals, ferrous raw
materials, primary metals and industrial products although results were below
last year's.
YEAR 2000
The Company as disclosed in its Form 10K for the year ended August 31,1998
has a comprehensive program to meet anticipated Year 2000 concerns. It continues
on schedule with this program. Steel Group computer migration pre-tax expense
this quarter was $1.7 million, equivalent to last year. The Recycling segment's
cost was minimal; Marketing and Trading and the Corporate office continued to
capitalize their project costs.
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
The outlook for nonresidential construction generally is good, whereas some
further softening in the industrial sector of the U.S. economy could occur.
Customer inventories of steel are too high and are being drawn down. Steel mill
prices will be lower to varying degrees in forthcoming months, but manufacturing
margins should remain at satisfactory levels, primarily because lower cost raw
material and supplies will continue to work their way through the Manufacturing
segment's inventory costs. A critical issue is the level of steel imports. The
outlook for steel fabrication remains favorable, and downstream operations
should benefit from reduced mill prices. Residential construction is strong,
consequently demand for copper tube is expected to remain good.
Recycling segment volume and margins will continue to be hurt by the dismal
ferrous and nonferrous scrap prices; accordingly, the second quarter of fiscal
1999 still will be very difficult in this segment. Lower operating costs will
help. Despite the current very weak markets, the Company sees an improvement in
Recycling profits in the second half of the year with some restoration of
margins beginning during the second quarter.
In Marketing and Trading, antidumping complaints and unsustainably low
prices are resulting in some production cutbacks, although more meaningful
reductions are required to achieve global price stability. At the same time many
customers are concentrating on reducing inventories. The relatively weak
worldwide demand and prices for steel and nonferrous metals will persist for
several quarters and it appears that any recovery in Asia will be slow. The
Company anticipates some reduction in volume, but more stable prices should
enhance unit margins.
The Company's profitability will be affected by the two major project
startups in the Steel Group with higher depreciation and startup costs. The
increase in earnings power from these projects should become evident in the year
2000. On the other hand, subsequent to quarter end the Company received a second
settlement recovery from the graphite electrode anti-trust litigation. Cash flow
from operations will, of course, gain from the increase in depreciation.
Page 12
<PAGE> 14
The new $217 billion six-year transportation bill known as The
Transportation Equity Act for the 21st Century is very positive for CMC. This
legislation will help restore the nation's infrastructure and substantially
increase spending for highways and bridges. Additionally, it includes especially
large increases for Texas and South Carolina and contiguous states. In general,
steel bar consumption should swing more toward the public sector during the next
few years.
This outlook section 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, unanticipated startup expenses and delays, metals pricing over which
the Company exerts little influence, new capacity and product availability from
competing steel minimills and other steel suppliers including import quantities
and pricing, global factors including credit availability, currency
fluctuations, timing of litigation settlements, 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 three months was approximately $23 million, over three
million higher than the comparable prior year period, attributable to higher
earnings. Accounts receivable decreased $7 million principally in the Recycling
segment and steel mills. Inventories increased $18 million with expansion in the
domestic trading operations and steel mills offset partially by decreases at the
international trading operations. Accounts payable, accrued expenses and income
taxes decreased $30 million spread across all the Company's segments. Part of
the decrease is due to the payment of incentive compensation and funding of
employee benefit plans accrued at August 31,1998. The Company invested $52
million in capital projects as part of its anticipated $150 million annual
capital program.
Page 13
<PAGE> 15
Notes payable and commercial paper increased $48 million to supplement
current cash flow to fund working capital and capital expenditures. The Company
has filed a shelf registration of $200 million of long-term notes, of which $100
million are expected to be issued in fiscal 1999.
At November 30,1998 there were 14,584,816 common shares issued and
outstanding with 1,547,767 held in the Company's treasury. Stockholders' equity
was $391 million or $26.84 per share.
Long-term debt as a percent of total capitalization was 29.4% at November
30,1998 compared to 30.1% at August 31,1998. The ratio of total debt to total
capitalization plus short-term debt stood at 44.6%, an increase from year end
due to capital expenditure and working capital requirements.
Net working capital was $215 million at November 30,1998 compared to $247
million at August 31,1998. The current ratio was 1.5 compared to 1.6 at August
31,1998. The Company's effective tax rate for the three months was 37.3%,
comparable to the prior year.
Page 14
<PAGE> 16
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, 1998 filed November 24, 1998, with the Securities and
Exchange Commission.
During the quarter ended November 30, 1998, the Company received a
settlement payment of $2.9 million before taxes from one of several defendants
in litigation brought by the Company and other purchasers of graphite
electrodes. The lawsuit alleges illegal price-fixing and other anti-competition
acts by manufacturers of graphite electrodes. Subsequent to the end of the
quarter the Company received a settlement payment from a second defendant in the
litigation.
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
15
<PAGE> 17
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.
Exhibit No.
27. Financial Data Schedule for the period ended
November 30, 1998.
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
/s/ Lawrence A. Engels
-------------------------
January 12, 1999 Lawrence A. Engels
Vice President, Treasurer
& Chief Financial Officer
/s/ William B. Larson
-------------------------
January 12, 1999 William B. Larson
Controller
16
<PAGE> 18
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
------- -----------
<S> <C>
27 Financial Data Schedule For Period
Ended November 30, 1998
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-01-1998
<PERIOD-END> NOV-30-1998
<CASH> 13,842
<SECURITIES> 0
<RECEIVABLES> 318,811
<ALLOWANCES> 7,809
<INVENTORY> 275,635
<CURRENT-ASSETS> 658,758
<PP&E> 729,464
<DEPRECIATION> 371,054
<TOTAL-ASSETS> 1,029,059
<CURRENT-LIABILITIES> 444,250
<BONDS> 172,023
0
0
<COMMON> 80,663
<OTHER-SE> 310,747
<TOTAL-LIABILITY-AND-EQUITY> 1,029,059
<SALES> 549,376
<TOTAL-REVENUES> 549,376
<CGS> 475,256
<TOTAL-COSTS> 475,256
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 378
<INTEREST-EXPENSE> 4,911
<INCOME-PRETAX> 17,548
<INCOME-TAX> 6,537
<INCOME-CONTINUING> 11,011
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11,011
<EPS-PRIMARY> .76
<EPS-DILUTED> .75
</TABLE>
