SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended: September 30, 1996
Commission File Number: 1-5642
DRAVO CORPORATION
(Exact name of registrant as specified in its charter)
Pennsylvania 25-0447860
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
One Oliver Plaza, Pittsburgh, Pennsylvania 15222
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (412) 566-3000
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 each of the registrant's classes of common
stock as of October 31, 1996:
Title of Class Shares Outstanding
Common Stock, $1.00 par value 14,763,649
DRAVO CORPORATION AND SUBSIDIARIES
INDEX
PART I - FINANCIAL INFORMATION
Page No.
Consolidated Balance Sheets at September 30, 1996
and December 31, 1995 3, 4
Consolidated Statements of Earnings for the
Quarters ended September 30, 1996 and 1995 5
Consolidated Statements of Earnings for the
Nine Months ended September 30, 1996 and 1995 6
Consolidated Statements of Cash Flows for the
Nine Months ended September 30, 1996 and 1995 7, 8
Notes to Consolidated Financial Statements 9 - 12
Management's Discussion and Analysis of Financial
Condition and Results of Operations 13, 14
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 15
SIGNATURES 16
-2-
DRAVO CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000's)
<TABLE>
September 30, December 31,
1996 1995
(unaudited)
<CAPTION>
ASSETS
Current assets:
<S> <C> <C>
Cash and cash equivalents $ 885 $ 1,086
Accounts receivable, net 25,565 24,251
Notes receivable, net 870 1,296
Inventories 15,214 14,194
Net assets of disc. operations -- 923
Other current assets 1,534 1,322
Total current assets 44,068 43,072
Advances to and equity in joint ventures 2,897 2,466
Notes receivable 3,887 3,497
Other assets 24,108 23,205
Deferred income taxes 24,853 24,853
Property, plant and equipment 241,245 225,835
Less: accumulated depreciation and
amortization 117,243 109,667
Net property, plant and equipment 124,002 116,168
Total assets $223,815 $213,261
</TABLE>
See accompanying notes to consolidated financial statements.
-3-
DRAVO CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000's)
<TABLE>
September 30, December 31,
1996 1995
(unaudited)
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
<S> <C> <C>
Current portion of long-term notes $ 6,138 $ 6,099
Accounts payable - trade 16,736 17,969
Income taxes 37 208
Accrued insurance 1,176 1,639
Accrued retirement contribution 2,930 2,423
Net liabilities of discontinued operations 3,770 --
Other current liabilities 4,619 4,969
Total current liabilities 35,406 33,307
Long-term notes 61,840 64,292
Net liabilities of discontinued operations 9,756 9,517
Other liabilities 8,244 6,290
Redeemable preference stock:
Par value $1, issued 200,000 shares:
Series D, $12.35 cumulative, convertible,
exchangeable (entitled in liquidation to
$20.0 million) 20,000 20,000
Shareholders' equity:
Preference stock, par value $1, authorized
1,878,870: Series B, $2.475 cumulative,
convertible; issued 25,386 shares
(entitled in liquidation to $1.4 million); 25 25
Series D, reported above
Common stock, par value $1, authorized
35,000,000 shares; issued 15,080,737
and 15,055,237 15,081 15,055
Other capital 61,050 60,818
Retained earnings 16,755 8,464
Treasury stock at cost:
Common shares 333,168 and 347,691 (4,342) (4,507)
Total shareholders' equity 88,569 79,855
Total liabilities and shareholders' equity $223,815 $213,261
</TABLE>
See accompanying notes to consolidated financial statements.
-4-
DRAVO CORPORATION AND SUBSIDIARIES
Consolidated Statements of Earnings
(unaudited, $ in 000's, except per share data)
<TABLE>
Quarters ended September 30,
1996 1995
<CAPTION>
<S> <C> <C>
Revenue $ 40,752 $ 37,774
Cost of revenue 30,217 28,310
Gross profit 10,535 9,464
Selling, general and administrative expenses 5,454 5,440
Earnings from operations 5,081 4,024
Other income (expense):
Equity in earnings of joint ventures 234 96
Interest income 6 --
Interest expense (1,575) (970)
Net other income (expense) (1,335) (874)
Earnings before taxes 3,746 3,150
Provision for income taxes 113 220
Net earnings 3,633 2,930
Preference dividends 633 633
Net earnings available
for common shares $ 3,000 $ 2,297
Earnings per share:
Operations $ 0.20 $ 0.15
Weighted average shares outstanding 14,936 14,889
</TABLE>
See accompanying notes to consolidated financial statements.
-5-
DRAVO CORPORATION AND SUBSIDIARIES
Consolidated Statements of Earnings
(unaudited, $ in 000's, except per share data)
<TABLE>
Nine Months ended September 30,
1996 1995
<CAPTION>
<S> <C> <C>
Revenue $ 118,325 $ 107,376
Cost of revenue 88,707 79,731
Gross profit 29,618 27,645
Selling, general and administrative expenses 15,777 16,133
Earnings from operations 13,841 11,512
Other income (expense):
Equity in earnings of joint ventures 702 564
Other income -- 182
Interest income 874 75
Interest expense (4,911) (3,534)
Net other income (expense) (3,335) (2,713)
Earnings before taxes 10,506 8,799
Provision for income taxes 316 616
Net earnings 10,190 8,183
Preference dividends 1,899 1,901
Net earnings available for
common shares $ 8,291 $ 6,282
Earnings per share:
Operations $ 0.56 $ 0.42
Weighted average shares outstanding 14,879 14,896
</TABLE>
See accompanying notes to consolidated financial statements.
-6-
DRAVO CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited, $ in 000's)
<TABLE>
Nine Months ended September 30,
1996 1995
<CAPTION>
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 10,190 $ 8,183
Adjustments to reconcile net earnings
to net cash provided (used) by continuing
operations activities:
Depreciation and amortization 7,744 6,869
Equity in joint ventures (431) 67
Changes in assets and liabilities:
Increase in accounts receivable (1,314) (3,171)
Decrease in notes receivable 37 472
Increase in inventories (1,020) (641)
Decrease (increase) in other current assets (145) 888
Decrease in accounts payable
and accrued expenses (1,431) (27,423)
Increase (decrease) in taxes payable (171) 485
Increase in other assets (903) (4,358)
Increase in other liabilities 1,954 134
Net cash provided (used) by continuing
operations activities 14,510 (18,495)
Increase (decrease) in net liabilities
of discontinued operations 4,932 (11,865)
Proceeds from repayment of notes receivable
from sale of discontinued operations -- 2,200
Net cash provided (used) by discontinued
operations activities 4,932 (9,665)
Net cash provided (used) by operating
activities 19,442 (28,160)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets -- 120,464
Additions to property, plant and equipment (15,528) (27,742)
Other, (net) -- 51
Net cash provided (used) by investing activities $(15,528) $ 92,773
</TABLE>
See accompanying notes to consolidated financial statements.
-7-
DRAVO CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited, $ in 000's)
<TABLE>
Nine Months ended September 30,
1996 1995
<CAPTION>
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowing under revolving credit
agreements $ 3,550 $ 22,749
Principal payments under long-term notes (6,014) (85,156)
Proceeds from issuance of common stock 248 511
Purchase of treasury stock -- (2,667)
Dividends on preference stock (1,899) (1,901)
Net cash used by financing activities (4,115) (66,464)
Net decrease in cash and cash equivalents (201) (1,851)
Cash and cash equivalents at beginning of
period 1,086 2,027
Cash and cash equivalents at end of period $ 885 $ 176
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest (net of amount capitalized) $ 4,976 $ 3,941
Income tax 487 131
</TABLE>
See accompanying notes to consolidated financial statements.
-8-
DRAVO CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(1) Basis of Presentation
The accompanying consolidated financial statements include the accounts
of Dravo Corporation and its majority-owned subsidiaries (the company).
The principal subsidiary is Dravo Lime Company, one of the nation's
largest lime producers. The company completed a transaction on December
30, 1994 in which it sold substantially all the assets and certain
liabilities of Dravo Basic Materials Company, Inc. (DBM), a former
principal subsidiary. The consolidated cash flow statement for the nine
months ended September 30, 1995 reflects the collection of proceeds from
the sale of DBM, repayment of debt, and satisfaction of DBM liabilities,
primarily accounts payable. Significant intercompany balances and
transactions have been eliminated in the consolidation process.
These unaudited consolidated financial statements include all adjustments,
consisting only of normal, recurring accruals, which management considers
necessary for a fair presentation of the company's consolidated financial
position, results of operations, and cash flows for the interim periods
presented. Certain reclassifications of previously reported balances have
been made to conform to the current period's presentation.
(2) Inventories
Inventories are classified as follows:
($ in 000's)
<TABLE>
September 30, December 31,
1996 1995
<CAPTION>
<S> <C> <C>
Materials and supplies $ 12,476 $ 12,517
Finished goods 2,738 1,677
Net inventories $ 15,214 $ 14,194
</TABLE>
Finished goods are valued at average production cost or market, whichever
is lower, and include raw materials, direct labor, and operating
overhead. Materials and supplies are valued at average cost.
-9-
DRAVO CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(3) Contingent Liabilities
The company has been notified by the federal Environmental Protection
Agency (EPA) that the EPA believes the company is a potentially
responsible party (PRP) for the clean-up of soil and groundwater
contamination at four sub-sites in Hastings, Nebraska. The Hastings
site is one of the EPA's priority sites for taking remedial action under
the Comprehensive Environmental Response, Compensation and Liability Act
(CERCLA).
At one of these sub-sites, a municipal landfill, the company believes it
could not have disposed of hazardous wastes at the particular sub-site
because the landfill was closed prior to the time the company's
predecessor began disposing of the hazardous substances found at this
sub-site. Other PRPs, including the local municipality, have agreed to
perform the remedial investigation and to design soil and groundwater
remedies at this sub-site. The company is participating in an EPA-
initiated allocation proceeding for this sub-site which will allocate
shares of liability for costs of a proposed cap of the landfill.
The company has also been notified by the EPA that the EPA considers it
a PRP at another municipal landfill in Hastings. At least three other
parties (including the City of Hastings) are considered by the EPA to be
PRPs at this second sub-site. At this sub-site, the company has
concluded that the City of Hastings is primarily responsible for a
proper closure of the landfill and the remediation of any release of
hazardous substances. In January, 1994, EPA invited the company and the
other PRPs to make an offer to conduct a remedial investigation and
feasibility study (RI/FS) of this sub-site and stated that the EPA was
in the process of preparing a work plan for the RI/FS. None of the PRPs
has volunteered to undertake the RI/FS.
With respect to the third sub-site, the company and two other PRPs have
been served with administrative orders directing them to undertake soil
remediation and interim groundwater remediation at that sub-site. The
company is currently complying with these orders while reserving its
right to seek reimbursement from the United States for its costs if it
is determined it is not liable for response costs or if it is required
to incur costs because of arbitrary, capricious or unreasonable
requirements imposed by the EPA.
The EPA has taken no legal action with respect to its demand that the
company and the other PRPs pay its past response costs. A total of five
parties have been named by the EPA as PRPs at this sub-site, but two of
them have been granted de minimis status. The company believes other
persons should also be named as PRPs.
The fourth sub-site is a former naval ammunition depot which was
subsequently converted to an industrial park. The company and its
predecessor owned and operated a manufacturing facility in this
industrial park. To date, the company's investigation indicates that it
did not cause the release of hazardous substances at this sub-site
during the time it owned and operated the facility. The United States
has undertaken to conduct the remediation of this sub-site.
-10-
DRAVO CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(3) Contingent Liabilities (continued)
In addition to sub-site clean-up, the EPA is seeking a clean-up of
area-wide contamination associated with all of the sub-sites in and around
Hastings, Nebraska. The company, along with other Hastings PRPs, has
recommended that the EPA adopt institutional controls as the area-wide
remedy in Hastings. The EPA has indicated some interest in this
proposal but has decided to first conduct an area-wide remedial
investigation before choosing a remedy.
On August 10, 1992 the company filed suit in the Alabama District Court
against its primary liability insurance carriers and one of its
predecessor's insurers, seeking a declaratory judgment that the company
is entitled to a defense and indemnity under its contracts of insurance
(including certain excess policies provided by one of the primary
carriers) with regard to the third Hastings sub-site. The company has
settled the claim against its predecessor's insurer, but the case
against the company's insurers is still in litigation. An award of
punitive damages is also being sought against the company's insurers for
their bad faith in failing to investigate the company's claim and/or
denying the company's claim. The company has notified its primary and
excess general liability carrier, as well as the excess carrier of its
predecessor, of the receipt of its notice of potential liability at the
first, second and fourth sub-sites.
Estimated total clean-up costs, including capital outlays and future
maintenance costs for soil and groundwater remediation of approximately
$18 million, are based on independent engineering studies. Included in
the discontinued operations provision is the company's estimate that it
will participate in 33 percent of these remediation costs. The
company's estimated share of the costs is based on its assessment of the
total clean-up costs, its potential exposure, and the viability of other
named PRPs.
Other claims and assertions made against the company will be resolved, in
the opinion of management, without material additional charges to
earnings.
The company has asserted claims that management believes to be
meritorious, but no estimate can be made at present of the timing or the
amount of recovery.
-11-
DRAVO CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(4) Discontinued Operations
In December, 1987, Dravo's Board of Directors approved a major
restructuring program which concentrated the company's future direction
exclusively on opportunities involving its natural resources business.
The remaining discontinued operations' assets and liabilities at September
30, 1996 and December 31, 1995 relate to non-cancelable leases, insurance,
environmental, legal and other matters associated with exiting the
engineering and construction business and are presented below:
<TABLE>
($ in 000's) September 30, December 31,
1996 1995
<CAPTION>
<S> <C> <C>
Current assets:
Accounts and retainers receivable $ 323 $ 122
Other -- 7,185
Total current assets 323 7,307
Accounts and retainers receivable -- 333
Other 309 309
Total assets $ 632 $ 7,949
Current liabilities:
Accounts and retainers payable $ 146 $ 140
Accrued loss on leases 2,348 2,240
Other 1,599 4,004
Total current liabilities 4,093 6,384
Accrued loss on leases 1,592 3,328
Other 8,473 6,831
Total liabilities $ 14,158 $ 16,543
Net liabilities and accrued loss
on leases of discontinued operations $(13,526) $ (8,594)
</TABLE>
-12-
DRAVO CORPORATION AND SUBSIDIARIES
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Revenue for the third quarter was $40.8 million, nearly 8 percent
higher than last year's quarter. The principal reason for the revenue
increase was strong lime demand in the southeastern United States and
increased aggregate sales from the company's Longview facility located
near Birmingham, Alabama. Longview is a quarry operation and a new
aggregates plant completed late last year allowed the company to
process cap rock, which must be removed to reach limestone suitable
for lime production, into salable sized aggregates. Gross profit was
$1.1 million higher than last year and reflected the higher revenue.
The current year's gross profit margin of 25.9 percent increased
almost 1 percent over last year. Gross profit was impacted, however,
by higher inventory costs due to the lingering effects of second
quarter delivery interruptions to a major electric utility customer
caused by problems at the customer's generating station. The
associated shipping and production disruptions increased production
costs and, ultimately, cost of sales at the Black River and Maysville,
Kentucky operations. Helping to partially offset the higher direct
unit production costs were lower overhead expenses associated with
employees' medical benefits and workers compensation insurance costs.
Joint venture earnings at a 50-percent owned mining operation were
$138,000 higher due to last year's unusually high maintenance
expenses. Interest expense was $605,000 higher because of higher debt
levels, and because the 1995 period benefited from the capitalization
of interest charges associated with the Black River expansion project.
The higher debt resulted from revolving credit borrowing used to
finance the completion of the Black River project and the ongoing
expansion, discussed below, at Maysville. Also, the company used the
proceeds received from the sale of a former principal subsidiary's
assets, Dravo Basic Materials Company, Inc. (DBM) to reduce debt $85
million in 1995. Debt levels subsequently increased as the remaining
liabilities of DBM retained by the company were satisfied.
Year-to-date net earnings of $10.2 million, or 56 cents per share
after preferred dividend payments, were 25 percent higher than the
$8.2 million net earnings, or 42 cents per share, reported last year.
Revenue for the nine months to date was up $10.9 million due to strong
Longview sales and modestly higher sales to the utility lime market
made possible by the mid-1995 completion of a major expansion at the
company's Black River facility in northern Kentucky. Gross profit
increased nearly $2 million on the higher revenue. Interest income
was $799,000 higher than last year due to a second quarter refund
received from a state taxing authority after the company filed amended
tax returns based on its current interpretation of the state tax code.
Interest expense was $1.4 million higher due to capital expenditures
in 1996 and the lower debt level for part of 1995 resulting from the
DBM asset sale.
The previously announced $20 million expansion of the company's lime
production facility near Maysville, Kentucky continues on schedule. A
new kiln and ancillary equipment, expected to start-up late in the
first quarter of 1997, will increase Maysville's production capacity
by 350,000 tons, or 33 percent.
-13-
DRAVO CORPORATION AND SUBSIDIARIES
Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
On October 18, 1996, the company announced that it had engaged an
investment adviser to explore all strategic alternatives that would
enable it to achieve its goal of increasing business scope. The
company's current size makes operating performance acutely sensitive
to major utility lime customers' level of lime utilization. At this
time, the company does not know whether or when it may pursue any such
alternatives.
-14-
DRAVO CORPORATION AND SUBSIDIARIES
PART II - Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
The following is filed as an exhibit
to Part I of this Form 10-Q:
Exhibit No. 11 - Statement re
computation of per share earnings.
(b) Reports on Form 8-K
The Company filed no Reports on Form
8-K for the quarter ended September 30, 1996.
-15-
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.
DRAVO CORPORATION
(Registrant)
Date: November 12, 1996 /s/ERNEST F. LADD III
Ernest F. Ladd III
Executive Vice President and
Chief Financial Officer
Date: November 12, 1996 /s/LARRY J. WALKER
Larry J. Walker
Vice President and Controller
(Principal Accounting Officer)
-16-
Exhibit 11. Statement Re Computation of Per Share Earnings
<TABLE>
(In 000's, except per share data)
<CAPTION>
Quarters ended September 30,
Primary 1996 1995
Earnings:
<S> <C> <C>
Net earnings $ 3,633 $ 2,930
Deduct dividends on preference stock 633 633
Net earnings applicable to common stock $ 3,000 $ 2,297
Shares:
Weighted average number of common
shares outstanding 14,742 14,700
Dilutive effect of outstanding
options and rights (as determined
by the application of the treasury
stock method at the average market
price for the period) 194 189
Weighted average number of shares
outstanding, as adjusted 14,936 14,889
Primary earnings per share $ 0.20 $ 0.15
Fully diluted
Earnings:
Net earnings $ 3,633 $ 2,930
Deduct dividends on preference stock (1) 633 633
Net earnings applicable to common stock $ 3,000 $ 2,297
Shares:
Weighted average number of common
shares outstanding 14,742 14,700
Dilutive effect of outstanding
options and rights (as determined
by the application of the treasury
stock method at the higher of the
closing or the average market price
for the period) 194 189
Weighted average number of shares
outstanding, as adjusted 14,936 14,889
Fully diluted earnings per share $ 0.20 $ 0.15
</TABLE>
-17-
Exhibit 11. Statement Re Computation of Per Share Earnings (continued)
<TABLE>
(In 000's, except per share data)
<CAPTION>
Quarters ended September 30,
Additional Fully Diluted Computation (2) 1996 1995
Earnings:
<S> <C> <C>
Net earnings $ 3,633 $ 2,930
Shares:
Weighted average number of common shares
outstanding 14,742 14,700
Dilutive effect of outstanding options and
rights (as determined by the application of
the treasury stock method at the higher of
the closing or average market price for
the period) 194 189
Shares issuable from assumed exercise of
convertible preference stock 1,682 1,682
Weighted average number of shares
outstanding, as adjusted 16,618 16,571
Fully diluted earnings per share $ 0.22 $ 0.18
</TABLE>
(1) The inclusion of preference stock in the fully dilutive
computation would have an anti-dilutive effect on earnings per share.
(2) This calculation is submitted in accordance with Securities
Exchange Act of 1934, Regulation S-K, paragraph 229.601 (b)(11)
although it is contrary to paragraph 40 of APB Opinion No. 15 because
it produces an anti-dilutive result.
-18-
Exhibit 11. Statement Re Computation of Per Share Earnings
<TABLE>
(In 000's, except per share data)
<CAPTION>
Nine Months ended September 30,
Primary 1996 1995
Earnings:
<S> <C> <C>
Net earnings $10,190 $ 8,183
Deduct dividends on preference stock 1,899 1,901
Net earnings applicable to common stock $ 8,291 $ 6,282
Shares:
Weighted average number of common
shares outstanding 14,726 14,771
Dilutive effect of outstanding
options and rights (as determined
by the application of the treasury
stock method at the average market
price for the period) 153 125
Weighted average number of shares
outstanding, as adjusted 14,879 14,896
Net earnings per share $ 0.56 $ .42
Fully diluted
Earnings:
Net earnings $10,190 $ 8,183
Deduct dividends on preference stock (1) 1,899 1,901
Net earnings applicable to common stock $ 8,291 $ 6,282
Shares:
Weighted average number of common
shares outstanding 14,726 14,771
Dilutive effect of outstanding
options and rights (as determined
by the application of the treasury
stock method at the higher of the
closing or the average market price
for the period) 177 125
Weighted average number of shares
outstanding, as adjusted 14,903 14,896
Fully diluted earnings per share: $ 0.56 $ 0.42
</TABLE>
-19-
Exhibit 11. Statement Re Computation of Per Share Earnings (continued)
<TABLE>
(In 000's, except per share data)
<CAPTION>
Nine Months ended September 30,
1996 1995
Additional Fully Diluted Computation (2)
Earnings:
<S> <C> <C>
Net earnings $10,190 $ 8,183
Shares:
Weighted average number of common shares
outstanding 14,726 14,771
Dilutive effect of outstanding options and
rights (as determined by the application of
the treasury stock method at the higher of
the closing or average market price for
the period) 177 125
Shares issuable from assumed exercise of
convertible preference stock 1,682 1,686
Weighted average number of shares
outstanding, as adjusted 16,585 16,582
Fully diluted earnings per share $ 0.61 $ 0.49
</TABLE>
(1) The inclusion of preference stock in the fully dilutive
computation would have an anti-dilutive effect on earnings per share.
(2) This calculation is submitted in accordance with Securities
Exchange Act of 1934, Regulation S-K, paragraph 229.601 (b)(11)
although it is contrary to paragraph 40 of APB Opinion No. 15 because
it produces an anti-dilutive result.
-20-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM DRAVO
CORPORATION'S SEPTEMBER 30, 1996 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 885
<SECURITIES> 0
<RECEIVABLES> 26578
<ALLOWANCES> 143
<INVENTORY> 15214
<CURRENT-ASSETS> 42820
<PP&E> 241245
<DEPRECIATION> 117243
<TOTAL-ASSETS> 223815
<CURRENT-LIABILITIES> 35406
<BONDS> 0
<COMMON> 15081
20000
25
<OTHER-SE> 73463
<TOTAL-LIABILITY-AND-EQUITY> 223815
<SALES> 118325
<TOTAL-REVENUES> 118325
<CGS> 88707
<TOTAL-COSTS> 88707
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4911
<INCOME-PRETAX> 10506
<INCOME-TAX> 316
<INCOME-CONTINUING> 10190
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10190
<EPS-PRIMARY> .56
<EPS-DILUTED> 0
</TABLE>
