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 June 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 July 31, 1996:
Common stock, $1.00 Par Value - 29,965,809 shares
<PAGE>
Part I - Financial Information
Item 1. Financial Statements
<TABLE>
Crane Co.
Consolidated Statements of Income
(in thousands except per share amounts)
(unaudited)
<CAPTION>
Periods Ended June 30,
Three Months Six Months
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Net Sales $ 466,231 $ 451,479 $ 902,694 $ 884,057
Operating Costs and Expenses:
Cost of sales 339,605 332,763 659,587 656,221
Selling, general and
administrative 70,999 67,875 141,485 136,472
Depreciation & amortization 12,050 11,942 24,072 23,846
422,654 412,580 825,144 816,539
Operating Profit 43,577 38,899 77,550 67,518
Other Income (Deductions):
Interest income 647 255 1,180 623
Interest expense (5,768) (7,037) (11,630) (14,030)
Miscellaneous - net (3,437) 463 (2,601) 366
(8,558) (6,319) (13,051) (13,041)
Income Before Taxes 35,019 32,580 64,499 54,477
Provision for Income Taxes 12,915 12,463 24,187 21,085
Net Income $ 22,104 $ 20,117 $ 40,312 $ 33,392
Net Income Per Share $.72 $.66 $1.32 $1.10
Average Shares Outstanding 30,645 30,622 30,586 30,459
Dividends Per Share $.1875 $.1875 $.3750 $.3750
<FN>
See Notes to Consolidated Financial Statements
</TABLE>
-2-
<PAGE>
<TABLE>
Part I - Financial Information
Item 1. Financial Statements (Cont'd)
Crane Co.
Consolidated Balance Sheets
(in thousands)
<CAPTION>
June 30, December 31,
1996 1995 1995
(unaudited)
Assets
<S> <C> <C> <C>
Current Assets:
Cash and cash equivalents $ 22,494 $ 661 $ 5,476
Accounts receivable 255,184 252,894 240,787
Inventories:
Finished goods 121,805 122,910 117,060
Finished parts and
subassemblies 35,199 32,886 37,915
Work in process 33,791 39,549 35,364
Raw materials 55,435 53,223 54,662
246,230 248,568 245,001
Other current assets 7,091 7,861 6,774
Total Current Assets 530,999 509,984 498,038
Property, Plant and Equipment:
Cost 521,344 520,126 512,985
Less accumulated depreciation 280,478 263,636 269,047
240,866 256,490 243,938
Other Assets 27,080 37,100 26,874
Intangibles 57,359 61,358 58,894
Cost in excess of net assets
acquired 167,601 170,941 170,667
$ 1,023,905 $ 1,035,873 $ 998,411
<FN>
See Notes to Consolidated Financial Statements
-3-
</TABLE>
<PAGE>
<TABLE>
Part I - Financial Information
Item 1. Financial Statements (Cont'd)
Crane Co.
Consolidated Balance Sheets (Cont'd)
(in thousands)
<CAPTION>
June 30, December 31,
1996 1995 1995
(unaudited)
Liabilities and Shareholders' Equity
<S> <C> <C> <C>
Current Liabilities:
Current maturities of long-term debt $ 760 $ 1,196 $ 771
Loans payable 18,115 20,428 15,359
Accounts payable 101,040 101,229 96,873
Accrued liabilities 116,559 118,071 115,530
U.S. and foreign taxes on income 14,143 8,256 12,743
Total Current Liabilities 250,617 249,180 241,276
Long-Term Debt 265,180 326,258 281,093
Deferred Income Taxes 27,609 32,306 27,993
Other Liabilities 21,876 19,059 21,977
Accrued Postretirement Benefits 43,153 43,172 43,071
Accrued Pension Liability 8,382 8,725 8,272
Preferred Shares, Par Value $.01
Authorized - 5,000 Shares - - -
Common Shareholders' Equity:
Common shares 30,364 30,506 30,125
Capital surplus 19,947 24,871 12,283
Retained earnings 367,819 309,746 342,330
Currency translation adjustment (11,042) (7,950) (10,009)
Total Common Shareholders' Equity 407,088 357,173 374,729
$ 1,023,905 $ 1,035,873 $ 998,411
<FN>
See Notes to Consolidated Financial Statements
-4-
</TABLE>
<PAGE>
<TABLE>
Part I - Financial Information
Item 1. Financial Statements (Cont'd)
Crane Co.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
<CAPTION>
Six Months Ended
June 30,
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net income $ 40,311 $ 33,392
Depreciation 17,279 17,915
Amortization 6,793 5,931
Deferred taxes (833) (697)
Cash used for operating working capital (10,227) (22,181)
Other (659) (3,020)
Total from operating activities 52,664 31,340
Cash flows from investing activities:
Capital expenditures (16,710) (13,609)
Payments for acquisitions - (1,879)
Proceeds from divestitures 1,554 -
Proceeds from disposition of capital assets 1,391 3,120
Purchase of equity investment - (5,038)
Total used for investing activities (13,765) (17,406)
Cash flows from financing activities:
Equity:
Dividends paid (11,356) (11,365)
Reacquisition of shares (1,522) (3,115)
Stock options exercised 4,160 7,323
Net Equity (8,718) (7,157)
Debt:
Proceeds from issuance of long-term debt - -
Repayments of long-term debt (11,905) (7,934)
Net decrease in short-term debt (1,237) (311)
Net Debt (13,142) (8,245)
Total used for financing activities (21,860) (15,402)
Effect of exchange rate on cash and cash equivalents (21) 57
Increase (decrease) in cash and cash equivalents 17,018 (1,411)
Cash and cash equivalents at beginning of period 5,476 2,072
Cash and cash equivalents at end of period $ 22,494 $ 661
Detail of Cash (Used for) Provided From
Operating Working Capital:
Accounts receivable $ (15,569) $ (15,379)
Inventories (1,877) (8,441)
Other current assets (353) (1,379)
Accounts payable 4,830 4,406
Accrued liabilities 1,343 (2,191)
U.S. and foreign taxes on income 1,399 803
Total $ (10,227) $ (22,181)
Supplemental disclosure of cash flow information:
Interest paid $ 11,418 $ 13,876
Income taxes paid 22,530 19,279
See Notes to Consolidated Financial Statements
-5-
</TABLE>
<PAGE>
Part I - Financial Information
Item 1. Financial Statements (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.
<TABLE>
2. Sales and operating profit by segment are as follows:
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
(In thousands)
Net Sales:
Fluid Handling $ 91,974 $ 83,397 $ 184,204 $ 162,257
Aerospace 57,168 53,440 115,489 104,489
Engineered Materials 53,166 50,026 103,904 103,964
Crane Controls 32,457 34,195 66,240 67,267
Merchandising Systems 47,410 51,984 91,482 99,607
Wholesale Distribution 186,528 179,580 345,948 348,686
Other 1,892 3,190 4,472 6,318
Intersegment Elimination (4,364) (4,333) (9,045) (8,531)
Total $ 466,231 $ 451,479 $ 902,694 $ 884,057
Operating Profit (Loss):
Fluid Handling $ 5,726 $ 4,990 $ 10,764 $ 7,233
Aerospace 16,426 14,344 31,709 26,252
Engineered Materials 7,671 5,345 12,911 12,020
Crane Controls 2,619 3,170 6,096 6,058
Merchandising Systems 7,251 8,780 13,117 15,396
Wholesale Distribution 8,297 5,921 11,857 7,749
Other (38) (179) 13 42
Corporate (4,475) (3,610) (9,047) (7,310)
Intersegment Elimination 100 138 130 78
Total $ 43,577 $ 38,899 $ 77,550 $ 67,518
-6-
</TABLE>
<PAGE>
Part I - Financial Information
Item 1. Financial Statements (Cont'd)
Notes to Consolidated Financial Statements (Cont'd)
3. Accounts Receivable
Receivables are carried at net realizable value. The allowance
for doubtful accounts was $3,904,000 at June 30, 1996,
$3,980,000 at June 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 $52,377,000 at
June 30, 1996, $53,114,000 at June 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 $13,064,000 at June 30,
1996, $8,851,000 at June 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 $25,318,000 at June 30,1996, $19,569,000 on
June 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 Six Months Ended June 30, 1996 and 1995
[CAPTION]
Results From Operations:
Second Quarter of 1996 Compared to Second Quarter of 1995:
Net income for the quarter ended June 30, 1996 was $22.1 million, or
$.72 per share, after a $4 million pretax charge ($2.5 million after
tax), or $.08 per share, in connection with the successful defense
of the False Claims Act case related to the CF&I Steel Corporation
spin-off in 1985. The net income result represents a 10% increase
from the $20.1 million, or $.66 per share, reported for the 1995
second quarter. Operating profit for the second quarter increased
12% to $43.6 million on a sales increase of 3% to $466.2 million.
Fluid Handling sales were up 10% and operating profit increased 15%
in the quarter compared to the prior year. Sales gains were
experienced in both the valves and pumps businesses. In Valves,
sales gains were primarily in the international operations. Crane
U.K. had strong export sales while Crane Australia benefited from
its successful efforts to expand markets to Asia and from
significant improvements in domestic demand from the depressed
levels of a year ago. Pumps sales increased due to new products,
Chempump's NC Series diagnostic sealless pump and Barnes' pressure
sewer pump systems, and the impact of the Process Systems
acquisition completed in the fourth quarter of last year. Operating
profit improved due to the strong sales at Crane Australia and the
pumps businesses as well as profitable results at Cochrane's water
treatment business compared to a loss in 1995. Crane U.K. profits
were lower because of the lower margins on export sales.
Aerospace sales increased 7% in the quarter due to continued
increases in shipments to airframe manufacturers and the overhaul
and repair markets. Operating profit rose 15% due to the increased
sales volume and greater focus on the higher-margin overhaul and
repair market. Orders in the commercial air transportation market
remained strong.
Engineered Materials sales and operating profit increased 6% and
44%, respectively, compared to the 1995 second quarter. Higher
shipments and operating margins at Kemlite, Resistoflex and Crane
Plumbing more than offset lower results at Cor Tec where sales
decreased significantly due to a 25% decline in the truck trailer
transportation market in the United States. Kemlite sales rose 11%
as fiberglass-reinforced plastic panels continued to displace
aluminum in the recreational vehicle market. Resistoflex
shipments were higher across all product lines with the company
capturing significant orders in the Southeast Asia market as a
result of its acquisition of Kessel PTE., Ltd. in the fourth quarter
of last year.
-8-
<PAGE>
Part I - Financial Information (Cont'd)
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Three and Six Months Ended June 30, 1996 and 1995
[CAPTION]
Results From Operations:
Crane Controls sales and operating profit were down 5% and 17%,
respectively, compared to the second quarter 1995. The lower results
were due primarily to lower shipments of Ferguson's motion control
products in the United States and Europe. Total sales and operating
profit for the remaining operations were essentially flat.
Merchandising Systems sales declined 9% and operating profit
declined 17% in the quarter compared to the prior year. National
Vendors vending merchandiser sales in the United States fell due to
the completion of the United States Postal Service contract in 1995
as well as reduced purchases by national accounts. Unit shipments
to independent operators, National Vendors' core business, increased
6%, but sales revenues were lower due to a shift in product mix
towards smaller merchandisers. In addition, sales efforts in Europe
were hampered by weak demand in Germany and France. National
Vendors anticipates favorable results for the second half of 1996
due to the cost benefits of completing the plant modernization
program. Operating profit for NRI improved due to increased sales
and the continued benefit of costs reduction programs.
Wholesale Distribution sales increased 4% and operating profit rose
40%. Sales gains at Huttig were partially offset by sales declines
at Valve Systems and Controls and Crane Supply. Profit improvements
were attributable to the increased sales, improved results in
Huttig's manufacturing business and higher margins at Crane Supply
due to continued emphasis on costs controls.
Interest expense in the quarter decreased $1.7 million compared to
the prior year due to reduced debt levels. In the 1996 second
quarter, the company recorded miscellaneous expense of $3.4 million
which included the $4 million litigation charge, compared to
miscellaneous income of $.5 million in the 1995 second quarter. The
company's effective tax rate in the second quarter improved to 36.9%
from 38.3% because in 1996 the company was able to recognize the 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 Six Months Ended June 30, 1996 and 1995
[CAPTION]
Results From Operations:
Six Months Ended June 30, 1996 Compared to Six Months Ended
June 30 , 1995:
Net income for the first six months was up 21% to $40.3 million, or
$1.32 per share, compared to $33.4 million, or $1.10 per share, last
year. Operating income for the first six months was up 15% to $77.6
million on a sales increase of 2% to $902.7 million.
Fluid Handling sales were up 14% and operating profit rose 49%
compared to 1995. In the United States, sales increased due to the
acquisition of Process Systems in the fourth quarter of 1995, strong
demand for new products in the pumps line and higher shipments at
Pacific Valves. Internationally, sales increased due to higher
export sales at Crane U.K., and successful expansion to new markets
and an improved domestic market at Crane Australia. Operating
profit improved due to the sales increase as well as profitable
results at Cochrane's water treatment business compared to a loss in
the first half of 1995.
Aerospace sales increased 11% for the first six months as all three
businesses experienced sales gains. Operating profit rose 21% due
to the sales gains and increased penetration of the higher-margin
aftermarket. Lear Romec's profits nearly doubled on a sales
increase of 22% due to higher aftermarket and OEM sales.
Engineered Materials sales were essentially flat and operating
profit improved 7%. At Resistoflex, higher shipments across all
product lines resulted in a sales increase of 20% and an operating
profit increase of 38%. A significant decline in the truck trailer
transportation market negatively impacted results at Cor Tec. For
Kemlite, this decline was offset with an increased demand in the
recreational vehicle market. Crane Plumbing's results benefited
from operating efficiencies.
Crane Controls sales declined slightly and operating profit was
essentially flat. Results were negatively impacted by lower
shipments of Ferguson's motion control products in the United States
and Europe. This was partially offset by increased sales and
operating profit at Powers Process Controls and Barksdale Germany.
Profit improvements at Ferguson Europe were due to efficiency gains
attributable to the plant consolidation completed in 1995.
Merchandising Systems sales decreased 8% and operating profit
declined 15% compared to the first half of 1995. Vending
merchandiser sales in the United States were down 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 a sales gain of 10% 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 Six Months Ended June 30, 1995 and 1994
[CAPTION]
Results From Operations:
Six Months Ended June 30, 1995 Compared to Six Months Ended
June 30 , 1994:
Wholesale Distribution operating profit improved 53% on slightly
lower sales. This was the result of significant improvements in
Huttig's manufacturing business along with a 10% increase in profits
in its distribution business. Higher margins at Crane Supply due to
cost controls also contributed to the profit improvement.
Net interest expense declined to $10.5 million compared to $13.4
million a year earlier due to lower debt levels. The effective tax
rate was 37.5% compared to 38.7% in 1995.
[CAPTION]
Liquidity and Capital Resources:
During the first half of 1996 the company generated $52.7 million of
cash from operating activities compared to $31.3 million in 1995.
Net debt totaled 39.1 percent of capital at June 30, 1996. The
current ratio increased to 2.1 with working capital totaling $280.4
million at June 30, 1996 compared to $260.8 million at June 30,
1995. Due to seasonality, the company's working capital requirements
peak at midyear.
As discussed further in Part II, Item 5 of this Form 10-Q, the
company has signed a definitive agreement to acquire the
microelectronics business of Interpoint Corporation. This
acquisition will be financed through the issuance of stock.
-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 has asked the District Court to reconsider its decision.
That request is still pending. In addition, the relator has filed a
notice of his intention to appeal the decision of the District Court
to 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 is
currently in the process of responding to this request, but
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 Information
On July 1, 1996, the company signed a definitive agreement to
acquire the microelectronics business of Interpoint Corporation
through a tax-free merger in which the company will issue shares of
the company's common stock for all of the outstanding shares of
Interpoint stock, immediately following the spin-off by Interpoint
of its data storage subsidiary. The number of shares of the
company's common stock issued will be based on the aggregate
purchase price of $59 million less any outstanding debt of
Interpoint on the date of the merger, estimated to be $20 million.
Approximately 950,000 shares of the company's common stock will be
issued as a result of this transaction. The transaction is subject
to the approval of Interpoint shareholders.
Item 6. Exhibits and Reports on Form 8-K
11.Computation of earnings per share for the
quarters and six months ended June 30, 1996 and
1995.
27.Article 5 of Regulation S-X Financial Data Schedule
for the second 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 August 14, 1996 By /s/ D.S. Smith
D.S. SMITH
Vice President-Finance
and Chief Financial Officer
Date August 14, 1996 By /s/ M.L. Raithel
M.L. RAITHEL
Controller
-15-
<PAGE>
<TABLE>
EXHIBIT 11
Crane Co.
Computation of Net Income per Common Share
(in thousands except per share amounts)
<CAPTION>
Three Months Six Months
Ended Ended
June 30, June 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Primary Net Income Per Share:
Net income available
to shareholders $22,104 $ 20,117 $40,312 $33,392
Average primary shares outstanding 30,645 30,622 30,586 30,459
Net Income $ .72 $ .66 $ 1.32 $ 1.10
Fully Diluted - Income Per Share:
Net income $22,104 $ 20,117 $40,312 $33,392
Average primary shares outstanding 30,645 30,622 30,586 30,459
Add
Adjustment for further dilutive
effect of stock options (ending
market price higher than average
market price used in primary
shares calculation) - 14 1 15
Average fully diluted shares
outstanding 30,645 30,636 30,587 30,474
Net income $ .72 $ .66 $ 1.32 $ 1.10
</TABLE>
-16-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER>1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> Jun-30-1996
<CASH> 22,494
<SECURITIES> 0
<RECEIVABLES> 255,184
<ALLOWANCES> 0
<INVENTORY> 246,230
<CURRENT-ASSETS> 530,999
<PP&E> 521,344
<DEPRECIATION> 280,478
<TOTAL-ASSETS> 1,023,905
<CURRENT-LIABILITIES> 250,617
<BONDS> 0
<COMMON> 30,364
0
0
<OTHER-SE> 376,724
<TOTAL-LIABILITY-AND-EQUITY> 1,023,905
<SALES> 902,694
<TOTAL-REVENUES> 902,694
<CGS> 679,015
<TOTAL-COSTS> 825,144
<OTHER-EXPENSES> 2,601
<LOSS-PROVISION> 1,421
<INTEREST-EXPENSE> 10,450
<INCOME-PRETAX> 64,499
<INCOME-TAX> 24,187
<INCOME-CONTINUING> 40,312
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 40,312
<EPS-PRIMARY> 1.32
<EPS-DILUTED> 1.32
</TABLE>
