FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 1996
Commission File Number 1-1657
CRANE CO.
(Exact name of registrant as specified in its charter)
Delaware 13-1952290
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
100 First Stamford Place, Stamford, Ct. 06902
(Address of principal executive office) (Zip Code)
(203) 363-7300
(Registrant's telephone number, including area code)
(Not Applicable)
(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
The number of shares outstanding of the issuer's classes of common
stock, as of October 31, 1996:
Common stock, $1.00 Par Value - 30,631,560 shares
<PAGE>
Part I - Financial Information
Item 1. Financial Statements
<TABLE>
Crane Co. and Subsidiaries
Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
<CAPTION>
Periods Ended September 30,
Three Months Nine Months
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Net Sales $481,116 $453,344 $1,383,810 $1,337,401
Operating Costs and
Expenses:
Cost of sales 352,632 336,860 1,012,219 993,081
Selling, general and
administrative 71,246 65,944 212,731 202,416
Depreciation and
amortization 12,226 12,406 36,298 36,252
436,104 415,210 1,261,248 1,231,749
Operating Profit 45,012 38,134 122,562 105,652
Other Income (Deductions):
Interest income 639 979 1,819 1,602
Interest expense (5,911) (6,699) (17,541) (20,729)
Miscellaneous - net 2,394 2,701 (207) 3,067
(2,878) (3,019) (15,929) (16,060)
Income Before Taxes 42,134 35,115 106,633 89,592
Provision for Income Taxes 15,245 13,086 39,432 34,171
Net Income $ 26,889 $ 22,029 $ 67,201 $ 55,421
Net Income Per Share $ .88 $ .71 $ 2.20 $ 1.81
Average Shares Outstanding 30,398 30,830 30,497 30,567
Dividends Per Share $ .1875 $ .1875 $ .5625 $ .5625
<FN>
See Notes to Consolidated Financial Statements
</TABLE>
-2-
<PAGE>
<TABLE>
Part I - Financial Information
Crane Co. and Subsidiaries
Consolidated Balance Sheets
(in thousands)
<CAPTION>
September 30, December 31,
1996 1995 1995
(Unaudited)
Assets
<S> <C> <C> <C>
Current Assets:
Cash and cash equivalents $ 28,241 $ 423 $ 5,476
Accounts receivable, net of
allowance 268,938 284,966 240,787
Inventories:
Finished goods 119,638 113,439 117,060
Finished parts and
subassemblies 34,618 33,710 37,915
Work in process 31,287 37,358 35,364
Raw materials 56,146x 54,558 54,662
241,689 239,065 245,001
Other current assets 7,232 6,682 6,774
Total Current Assets 546,100 531,136 498,038
Property, Plant and Equipment:
Cost 530,701 507,259 512,985
Less accumulated depreciation 281,402 263,540 269,047
249,299 243,719 243,938
Other Assets 27,381 27,410 26,874
Intangibles 56,649 60,142 58,894
Cost in excess of net assets
acquired 165,995 169,297 170,667
$ 1,045,424 $ 1,031,704 $ 998,411
<FN>
See Notes to Consolidated Financial Statements
-3-
</TABLE>
<PAGE>
<TABLE>
Part I - Financial Information
<CAPTION>
September 30, December 31,
1996 1995 1995
(Unaudited)
Liabilities and Shareholders' Equity
<S> <C> <C> <C>
Current Liabilities:
Current maturities of long-term debt $ 736 $ 767 $ 771
Loans payable 22,743 14,819 15,359
Accounts payable 112,330 109,612 96,873
Accrued liabilities 115,827 120,341 115,530
U.S. and foreign taxes on income 17,003 9,872 12,743
Total Current Liabilities 268,639 255,411 241,276
Long-Term Debt 265,179 305,756 281,093
Deferred Income Taxes 27,346 32,315 27,993
Other Liabilities 21,714 17,274 21,977
Accrued Postretirement Benefits 43,204 43,138 43,071
Accrued Pension Liability 8,397 8,730 8,272
Preferred Shares, Par Value $.01
Authorized - 5,000 Shares - - -
Common Shareholders' Equity:
Common shares 29,894 30,363 30,125
Capital surplus 2,383 20,037 12,283
Retained earnings 389,548 326,766 342,330
Currency translation adjustment (10,880) (8,086) (10,009)
Total Common Shareholders' Equity 410,945 369,080 374,729
$ 1,045,424 $ 1,031,704 $ 998,411
<FN>
See Notes to Consolidated Financial Statements
-4-
</TABLE>
<PAGE>
<TABLE>
Part I - Financial Information (Cont'd.)
Crane Co. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
<CAPTION>
Nine Months Ended
September 30,
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net income $ 67,201 $ 55,421
Depreciation 25,973 26,848
Amortization 10,325 9,404
Deferred taxes (1,159) (1,385)
Cash used for operating working capital (5,719) (27,800)
Other (4,261) 872
Total from operating activities 92,360 63,360
Cash flows from investing activities:
Capital expenditures (40,595) (20,239)
Payments for acquisitions - (1,879)
Proceeds from divestitures 1,554 -
Proceeds from disposition of capital assets 11,030 8,100
Purchase of equity investment - (5,501)
Total used for investing activities (28,011) (19,519)
Cash flows from financing activities:
Equity:
Dividends paid (16,966) (17,096)
Reacquisition of shares (20,311) (3,129)
Stock options exercised 4,492 8,762
Net Equity (32,785) (11,463)
Debt:
Repayments of long-term debt (12,013) (13,051)
Net decrease in short-term debt 3,321 (21,052)
Net Debt (8,692) (34,103)
Total(used for)provided from financing activities (41,477) (45,566)
Effect of exchange rate on cash and cash equivalents (107) 76
Decrease in cash and cash equivalents 22,765 (1,649)
Cash and cash equivalents at beginning of period 5,476 2,072
Cash and cash equivalents at end of period $ 28,241 $ 423
Detail of Cash (Used for) Provided From
Operating Working Capital:
Accounts receivable $ (28,947) $ (37,497)
Inventories 2,852 1,232
Other current assets (483) (209)
Accounts payable 10,450 6,164
Accrued liabilities 6,179 110
U.S. and foreign taxes on income 4,230 2,400
Total $ (5,719) $ (27,800)
Supplemental disclosure of cash flow information:
Interest paid $ 16,550 $ 19,681
Income taxes paid 34,882 30,526
See Notes to Consolidated Financial Statements
-5-
</TABLE>
<PAGE>
Part I - Financial Information (Cont'd.)
Notes to Consolidated Financial Statements
1. The accompanying unaudited consolidated financial statements
have been prepared in accordance with the instructions to
Form 10-Q and, therefore reflect all adjustments which are,
in the opinion of management, necessary for a fair statement
of the results for the interim period presented.
2. Sales and operating profit by segment are as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
(in thousands)
Net Sales:
Fluid Handling $ 91,606 $ 88,438 $ 275,810 $ 250,695
Aerospace 61,267 55,902 176,756 160,391
Engineered Materials 54,358 47,842 158,262 151,806
Crane Controls 31,933 31,739 98,173 99,006
Merchandising Systems 40,931 42,480 132,413 142,087
Wholesale Distribution 202,280 187,765 548,228 536,451
Other 2,756 2,903 7,228 9,221
Intersegment Elimination (4,015) (3,725) (13,060) (12,256)
Total $ 481,116 $ 453,344 $ 1,383,810 $ 1,337,401
Operating Profit (Loss):
Fluid Handling $ 6,685 $ 6,560 $ 17,449 $ 13,793
Aerospace 16,979 14,329 48,688 40,581
Engineered Materials 7,355 4,699 20,266 16,719
Crane Controls 2,501 2,417 8,597 8,475
Merchandising Systems 5,292 4,587 18,409 19,983
Wholesale Distribution 10,456 8,793 22,313 16,542
Other 70 280 83 322
Corporate (4,346) (3,507) (13,393) (10,817)
Intersegment Elimination 20 (24) 150 54
Total $ 45,012 $ 38,134 $ 122,562 $ 105,652
</TABLE>
-6-
<PAGE>
Part I - Financial Information (Cont'd.)
Notes to Consolidated Financial Statements
3. Accounts Receivable
Receivables are carried at net realizable value. The allowance
for doubtful accounts was $4,018,000 at September 30, 1996,
$4,484,000 at September 30, 1995, and $3,598,000 at December 31,
1995.
4. Inventories
Inventories are stated at the lower of cost or market,
principally on the last-in, first-out (LIFO) method of inventory
valuation. Replacement cost would be higher by $51,706,000 at
September 30, 1996, $52,021,000 at September 30, 1995, and
$49,460,000 at December 31, 1995.
5. Intangibles
Intangible assets are amortized on a straight-line basis over
their estimated useful lives which range from five to twenty
years. Accumulated amortization was $14,131,000 at September
30, 1996, $9,924,000 at September 30, 1995, and $11,020,000 at
December 31, 1995.
6. Cost in Excess of Net Assets Acquired
Cost in excess of net assets acquired is amortized on a straight-
line basis principally over 15 to 40 years. Accumulated
amortization was $26,723,000 at September 30,1996, $21,051,000
on September 30, 1995, and $22,482,000 on December 31, 1995.
-7-
<PAGE>
Part I - Financial Information (Cont'd)
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Three and Nine Months Ended September 30, 1996 and 1995
[CAPTION]
Results From Operations:
Third Quarter of 1996 Compared to Third Quarter of 1995:
Net income for the quarter ended September 30, 1996 set a third
quarter record of $26.9 million, or $.88 per share. This represents
a 22% increase from the $22 million, or $.71 per share, reported for
the 1995 third quarter. Operating profit for the third quarter
increased 18% to $45 million on a sales increase of 6.1% to $481.1
million. Operating margins improved one percentage point to 9.4% of
sales.
Fluid Handling sales were up 3.6% and operating profit increased
1.9% in the quarter compared to the prior year. The pump businesses
experienced strong sales gains with most product lines contributing
to the improvement. Pump sales also benefited from the impact of
the Process Systems acquisition completed in the fourth quarter of
1995 and new products. Valves shipments were up slightly as
improvements in international valves businesses more than offset a
significant decline in North American shipments of engineered cast
steel and nuclear products. Operating profit improved due to the
strong sales at the pump businesses and Crane Australia. These
improvements were tempered by weak results at Crane Valves North
America due to lower sales and lower production level at Crane U.K.
as this unit adjusts its inventory in line with current order
backlog.
Aerospace sales increased 10% in the quarter due to continued
increases in shipments to airframe manufacturers and increased
aftermarket shipments. Despite increased product development
spending, operating profit rose 18% from the increased sales volume
and manufacturing efficiency gains. Orders in the commercial air
transportation market remain strong and the company expects that
this trend will continue into 1997 as aircraft production and
airline utilization rates continue to rise.
Engineered Materials sales and operating profit increased 14% and
57%, respectively, compared to the 1995 third quarter. The improved
results were attributable to significantly higher shipments and
operating margins at Resistoflex and Kemlite. Resistoflex shipments
increased 50% with gains across most product lines. In addition,
Resistoflex benefited from its expansion into the Southeast Asia
market. Kemlite sales rose 16% as fiberglass-reinforced plastic
panels continued to displace aluminum in the recreational vehicle
market. Results at Cor Tec continued to be negatively impacted by
the 20% decline in the truck trailer transportation market.
-8-
<PAGE>
Part I - Financial Information (Cont'd)
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Three and Nine Months Ended September 30, 1996 and 1995
Crane Controls operating profit was up 3.5% on a small sales
increase compared to the third quarter 1995. Contributing to the
improvement in profits were Ferguson Europe which recorded a profit
compared to a loss due to the plant consolidation in 1995 and
Dynalco which had significantly higher margins on increased sales.
Lower operating costs at Barksdale U.S. resulted in improved margins
despite flat sales.
Merchandising Systems sales declined 3.6% while operating profit
improved 15% in the quarter compared to the prior year. National
Vendors vending merchandiser sales in the United States fell due to
reduced purchases by national accounts and a shift in product mix
towards smaller merchandisers. In addition, sales efforts in Europe
were hampered by weak demand in Germany and France. Despite the
lower sales, National Vendors' profit increased due to the cost
benefits of its plant modernization program. Operating profit for
NRI improved due to increased sales and the continued benefit of
costs reduction programs. Overall, this segment's operating margins
improved to 12.9% of sales from 10.8% in the third quarter of 1995.
Wholesale Distribution sales increased 7.7% and operating profit
rose 19%. Huttig's distribution business benefited from the
increased activity in the home construction market. This along with
a shift to higher value added products at its manufacturing
facilities led to improved profit margins at Huttig. Additionally,
Crane Supply and Valve Systems and Controls improved profit margins
due to cost control initiatives and increased focus on maintaining
margins in competitive markets allowing this segment's overall
margin to increase to 5.2% of sales compared to 4.7% in the third
quarter of 1995.
Interest expense in the quarter decreased $.4 million compared to
the prior year due to reduced debt levels. The company's effective
tax rate in the third quarter improved to 36.2% from 37.3% in the
comparable quarter as the company was able to realize tax benefits
on certain foreign tax loss carryforwards.
-9-
<PAGE>
Part I - Financial Information (Cont'd)
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Three and Nine Months Ended September 30, 1996 and 1995
Nine Months Ended September 30, 1996 Compared to Nine Months Ended
September 30 , 1995:
Net income for the first nine months increased 21% to $67.2 million,
or $2.20 per share, from the $55.4 million, or $1.81 per share, in
the comparable 1995 period. Operating profit for the nine months
increased 16% to $122.6 million on a sales increase of 3.5% to $1.4
billion. Operating margins improved a full percentage point from
the prior year level.
Fluid Handling sales were up 10% and operating profit was up 26%.
In the United States, sales increased due to the acquisition of
Process Systems in the fourth quarter of 1995 and strong demand in
the pump businesses. Internationally, sales improved due to higher
export sales at Crane U.K., increased market share at Westad in
Norway, and successful expansion to new markets and an improved
domestic market at Crane Australia. Operating profit increased due
to the strong sales as well as profitable results at Cochrane's
water treatment business compared to a loss in 1995.
Aerospace sales were up 10% in the first nine months due to
continued increases in shipments to airframe manufacturers and the
overhaul and repair markets. Operating profit rose 20% as a result
of the sales increase, higher margins in the overhaul and repair
markets and manufacturing efficiencies.
Engineered Materials sales and operating profit increased 4% and
21%, respectively. At Resistoflex, higher shipments across most
product lines and successful expansion in Asia led to a sales
increase of 31% and an operating profit increase of 58%. A
significant decline in the truck trailer transportation market
negatively impacted Cor Tec's sales and profits. At Kemlite, the
declines due to the transportation market were offset with increased
demand in the recreational vehicle market.
Crane Controls operating profit improved slightly despite a small
decline in sales. Lower shipments of Ferguson's motion control
products were offset partially by sales gains at Barksdale. In
addition, Ferguson Europe's results benefited from the plant
consolidation completed in 1995.
Merchandising Systems operating profit was down 8% on a 7% sales
decline. Vending merchandiser sales in the United States declined
due to the completion of the United States Postal Service contract
in 1995 and reduced purchases by national accounts. Operating
profit at NRI improved significantly on an 8% sales gain due to the
benefits of its cost reduction program.
-10-
<PAGE>
Part I - Financial Information (Cont'd)
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Three and Nine Months Ended September 30, 1996 and 1995
Wholesale Distribution operating profit improved 35% on a small
sales increase. This was mainly the result of significant
improvements in Huttig's manufacturing business along with profit
margin improvements in its distribution business. Cost control
initiatives at Crane Supply and Valve Systems & Controls also
benefited results increasing the overall profit margin of this
segment by a full percentage point.
Net interest expense decreased 18% to $15.7 million from $19.1
million a year earlier due to lower debt levels. The effective tax
rate was 37% compared to 38.1% in 1995.
[CAPTION]
Liquidity and Capital Resources:
For the first nine months of 1996, the company generated more than
$92 million in cash from operations allowing Crane to reduce net
debt $31.3 million from December 31, 1995 to $260.4 million at
September 30, 1996. As a result, the net debt to capital ratio
improved to 38.8% from 43.8%. In addition, the company made capital
expenditures of $40.6 million, paid dividends of $17 million and
repurchased 490,000 shares of stock in the open market at an average
price per share of $37.98 for a total of $18.6 million.
-11-
<PAGE>
Part II - Other Information
Item 1. Legal Proceedings:
Neither the company nor any subsidiary of the company has become a
party to, nor has any of their property become the subject of, any
material legal proceedings, other than ordinary routine litigation
incidental to their businesses, except for the following.
On February 28, 1991, the company was served with a complaint filed
in the U.S. District Court for the Eastern District of Missouri
naming the company and its former subsidiary, CF&I Steel Corporation
("CF&I"), as defendants and alleging violations of the federal False
Claims Act in connection with the distribution of the company's
shares of CF&I to the company's shareholders in 1985. A subsequent
complaint with substantially similar allegations was served on the
company on September 22, 1992 and the two actions were consolidated
by the Court. The case was brought in the name of the U.S.
Government by a private individual (the "relator") and involves
allegations of a conspiracy between the company and CF&I to cause
the Pension Benefit Guaranty Corporation ("PBGC") to assume certain
unfunded liabilities under a CF&I pension plan (alleged to have been
approximately $270 million), to prevent the PBGC from obtaining any
reimbursement from the company and to publish and file misleading
information in furtherance of those alleged objectives. The suit
seeks treble damages and attorney's fees. On June 1,1993 the
District Court dismissed the case for lack of subject matter
jurisdiction under the False Claims Act and the plaintiff appealed.
On November 16, 1994, the U.S. Court of Appeals for the Eighth
Circuit reinstated the action. The company's petition for a writ of
certiorari to the U.S. Supreme Court was denied on or about June 16,
1995 and the case was returned to the District Court to further
proceedings. The company filed motions for summary judgment and
judgment on the pleadings, and on May 30, 1996, the District Court
entered an order dismissing all counts of the complaint. The
relator asked the District Court to reconsider its decision and on
September 3, 1996 the District Court denied the relator's request.
The relator filed his notice of appeal on June 3, 1996 and an
amended notice of appeal on September 11, 1996, and the appeal is
currently being briefed by the parties for the United States Court
of Appeals for the Eighth Circuit. The company is firmly convinced
that the allegations made by the relator are without merit and that
the actions of the District Court are correct. The company has
vigorously defended itself in the litigation and will continue to do
so, and is confident that it will ultimately prevail.
The following proceedings are not considered by the company to be
material to its business or financial condition and are reported
herein because of the requirements of the Securities and Exchange
Commission with respect to the descriptions of administrative or
judicial proceedings by governmental authorities arising under
federal, state or local provisions regulating the discharge of
materials into the environment or otherwise relating to the
protection of the environment.
-12-
<PAGE>
Part II - Other Information
Item 1. Legal Proceedings (Cont'd)
On July 12, 1985 the company received written notice from the United
States Environmental Protection Agency (the "EPA") that the EPA
believes the company may be a potentially responsible party ("PRP")
under the Federal Comprehensive Environmental Response, Compensation
and Liability Act of 1980 ("CERCLA") to pay for investigation and
corrective measures which may be required to be taken at the
Roebling Steel Company site in Florence Township, Burlington County,
New Jersey ("Roebling Site") of which its former subsidiary, CF&I
Steel Corporation ("CF&I") was a past owner and operator prior to
the enactment of CERCLA. The stated grounds for the EPA's position
was the EPA's belief that the company had owned and/or operated the
Roebling Site. The company has advised the EPA that such was not
the case and does not believe that it is responsible for any testing
or clean-up at the Roebling Site based on current facts.
The EPA has identified sources and areas of contamination at the
Roebling Site which must be examined for potential environmental
damage. The EPA has disclosed that two surface clean-ups have been
performed at a cost in excess of $19 million. In July 1996 the EPA
completed a third Focused Feasibility Study which defined the nature
of contaminants and evaluated appropriate remedial alternatives, and
the EPA estimated the cost of its preferred clean-up alternative at
$38 million.
On November 7, 1990 CF&I filed a petition for reorganization and
protection under Chapter 11 of the United States Bankruptcy Code.
In the bankruptcy proceeding of CF&I the EPA was allowed an
unsecured claim against CF&I for $27.1 million related to EPA's
environmental investigations and remediation at the Roebling Site.
In June 1996 the company received a Section 104 Request issued by
the EPA under CERCLA requesting information about the company's
(and CF&I's) connection to the Roebling Site. The company has
filed its response to this request, and based on the facts and
circumstances summarized above, the company does not believe it is
responsible for any portion of the clean-up.
-13-
<PAGE>
Part II - Other Information
Item 5. Other:
On October 15, 1996, the company completed the acquisition of
Interpoint Corporation in a tax-free merger in which the company
issued shares of Crane common stock for all the outstanding shares
of Interpoint. The aggregate purchase price was $59 million which,
after deduction of approximately $26 million in Interpoint debt and
certain other adjustments, resulted in the issuance of 729,541
shares of Crane common stock. Interpoint designs and manufactures
high density power converters with applications in the aerospace and
medical technology industries. This acquisition allows Crane to
increase both its product and customer base and to provide its
current customers with a wider range of power components and sub-
systems.
On October 28, 1996, the company announced it would effect a three-
for-two split of its common stock in the form of a stock dividend of
one share of common stock for every two shares of common stock
outstanding payable on December 12, 1996 to shareholders of record
as the close of business December 4, 1996.
On October 31, 1996, the company acquired Grenson Electronics of
Daventry England for $2.74 million. Grenson Electronics designs and
produces low voltage power conversion electronics for the aerospace,
defense and industrial markets.
Item 6. Exhibits and Reports on Form 8-K
11.Computation of earnings per share for the
quarters and nine months ended September 30, 1996
and 1995.
27.Article 5 of Regulation S-X Financial Data Schedule
for the third quarter.
-14-
<PAGE>
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.
CRANE CO.
REGISTRANT
Date November 13, 1996 By /s/ D.S. Smith
D.S. SMITH
Vice President-Finance
and Chief Financial Officer
Date November 13, 1996 By /s/ M.L. Raithel
M.L. RAITHEL
Controller
-15-
<PAGE>
<TABLE>
Crane Co. and Subsidiaries
Exhibit 11 to Form 10-Q
Computation of Net Income per Common Share
Three and Nine Months Ended September 30, 1996 and 1995
(in thousands, except per share amounts)
<CAPTION>
Three Months Nine Months Ended
Ended
September 30, September 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Primary Net Income Per Share:
Net income available
to shareholders $ 26,889 $ 22,029 $ 67,201 $55,421
Average primary shares outstanding 30,398 30,830 30,497 30,567
Net Income $ .88 $ .71 $ 2.20 $ 1.81
Fully Diluted - Income Per Share:
Net income available to
shareholders $ 26,889 $ 22,029 $ 67,201 $55,421
Average primary shares outstanding 30,398 30,830 30,497 30,567
Add
Adjustment for further dilutive
effect of stock options (ending
market price higher than average
market price used in primary
shares calculation) 80 9 69 11
Average fully diluted shares
outstanding 30,478 30,839 30,566 30,578
Net income $ .88 $ .71 $ 2.20 $ 1.81
</TABLE>
-16-
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER>1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> Sept-30-1996
<CASH> 28,241
<SECURITIES> 0
<RECEIVABLES> 268,938
<ALLOWANCES> 0
<INVENTORY> 241,689
<CURRENT-ASSETS> 546,100
<PP&E> 530,701
<DEPRECIATION> 281,402
<TOTAL-ASSETS> 1,045,424
<CURRENT-LIABILITIES> 268,639
<BONDS> 0
<COMMON> 29,894
0
0
<OTHER-SE> 381,105
<TOTAL-LIABILITY-AND-EQUITY> 1,045,424
<SALES> 1,383,810
<TOTAL-REVENUES> 1,383,810
<CGS> 1,041,519
<TOTAL-COSTS> 1,261,248
<OTHER-EXPENSES> 207
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,722
<INCOME-PRETAX> 106,633
<INCOME-TAX> 39,432
<INCOME-CONTINUING> 67,201
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 67,201
<EPS-PRIMARY> 2.20
<EPS-DILUTED> 2.20
</TABLE>
