WD060201.10Q
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
Commission file number 1-6571
SCHERING-PLOUGH CORPORATION
Incorporated in New Jersey 22-1918501
One Giralda Farms (I.R.S. Employer Identification No.)
Madison, N.J. 07940-1000 (201) 822-7000
(telephone number)
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, and (2) has been subject to
such filing requirements for the past 90 days.
YES X NO
Common Shares Outstanding as of September 30, 1996: 369,379,595
PART I. - FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
SCHERING-PLOUGH CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME
(UNAUDITED)
(Dollars in millions, except per share figures)
<CAPTION>
Three Months Nine Months
Ended Ended
September 30 September 30
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Sales . . . . . . . . . . . . . $1,382.2 $1,256.8 $4,241.5 $3,813.5
Costs and expenses:
Cost of sales. . . . . . . . . 257.7 237.8 807.4 746.1
Selling, general
and administrative. . . . . . 562.7 509.7 1,644.6 1,477.4
Research and development . . . 182.0 165.8 522.8 475.1
Other, net . . . . . . . . . . (6.6) 8.9 27.7 37.3
995.8 922.2 3,002.5 2,735.9
Income before income taxes. . . 386.4 334.6 1,239.0 1,077.6
Income taxes. . . . . . . . . . 94.7 82.0 303.6 264.0
Income from continuing operations 291.7 252.6 935.4 813.6
Discontinued operations, net of
tax:
Loss from operations. . . . . . - - - (10.2)
Loss on disposal. . . . . . . . - - - (156.2)
Net income. . . . . . . . . . . $ 291.7 $ 252.6 $ 935.4 $ 647.2
Earnings per common share:
Continuing operations. . . . . $ .79 $ .68 $ 2.54 $ 2.19
Discontinued operations:
Loss from operations. . . . . - - - (.03)
Loss on disposal. . . . . . . - - - (.42)
Total . . . . . . . . . . . . . $ .79 $ .68 $ 2.54 $ 1.74
Dividends per common share. . . $ .33 $ .29 $ .95 $ .835
<FN>
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
SCHERING-PLOUGH CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in millions, except per share figures)
<CAPTION>
September, 30 December 31,
1996 1995
<S> <C> <C>
Assets
Cash and cash equivalents . . . . . . . . $ 437.2 $ 321.4
Accounts receivable, net. . . . . . . . . 571.2 569.3
Inventories . . . . . . . . . . . . . . . 574.1 502.0
Prepaid expenses, deferred income
taxes and other current assets . . . . . 674.0 563.6
Total current assets. . . . . . . . . 2,256.5 1,956.3
Property, plant and equipment . . . . . . 3,284.9 3,136.0
Less accumulated depreciation . . . . . . 1,105.2 1,037.1
Property, net . . . . . . . . . . . . 2,179.7 2,098.9
Other assets. . . . . . . . . . . . . . . 760.1 609.4
$ 5,196.3 $ 4,664.6
Liabilities and Shareholders' Equity
Accounts payable. . . . . . . . . . . . . $ 312.9 $ 374.2
Short-term borrowings and current
portion of long-term debt. . . . . . . . 562.3 841.3
Other accrued liabilities . . . . . . . . 1,420.6 1,146.6
Total current liabilities . . . . . . 2,295.8 2,362.1
Long-term debt. . . . . . . . . . . . . . 42.0 87.1
Other long-term liabilities . . . . . . . 618.1 592.5
Shareholders' Equity:
Preferred shares - $1 par value
each; issued - none. . . . . . . . . . . - -
Common shares - $1 par value each; shares
issued: 1996 - 507,368,360
1995 - 502,965,382 . . . . . . . . . . . 507.4 503.0
Paid-in capital . . . . . . . . . . . . . 146.0 49.5
Retained earnings . . . . . . . . . . . . 4,927.5 4,341.8
Foreign currency translation
adjustment and other . . . . . . . . . . (129.7) (103.9)
Total . . . . . . . . . . . . . . . . 5,451.2 4,790.4
Less treasury shares, at cost -
1996, 137,988,765 shares;
1995, 138,796,653 shares . . . . . . . . 3,210.8 3,167.5
Total shareholders' equity. . . . . . 2,240.4 1,622.9
$ 5,196.3 $ 4,664.6
<FN>
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
SCHERING-PLOUGH CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30
(UNAUDITED)
(Dollars in millions)
<CAPTION>
1996 1995
<S> <C> <C>
Operating Activities:
Income from continuing operations . . . . $ 935.4 $ 813.6
Depreciation and amortization . . . . . . 127.1 120.1
Working capital changes - source (use):
Accounts receivable. . . . . . . . . . . (17.2) 39.9
Inventories. . . . . . . . . . . . . . . (84.2) (24.5)
Other current assets . . . . . . . . . . (113.0) (64.1)
Accounts payable and other accrued
liabilities . . . . . . . . . . . . . . 187.2 173.1
Other, net. . . . . . . . . . . . . . . . (5.3) (62.3)
Net cash provided by operating
activities . . . . . . . . . . . . . . . 1,030.0 995.8
Investing Activities:
Reduction of investments. . . . . . . . . .6 45.3
Purchases of investments. . . . . . . . . (34.6) (80.4)
Capital expenditures. . . . . . . . . . . (208.0) (167.6)
Other, net. . . . . . . . . . . . . . . . (1.8) (1.5)
Net cash used for investing
activities . . . . . . . . . . . . . . . (243.8) (204.2)
Financing Activities:
Dividends paid to common shareholders . . (349.7) (310.4)
Repayment of long-term debt . . . . . . . (140.3) -
Short-term borrowings, net. . . . . . . . (180.0) (102.4)
Common shares repurchased . . . . . . . . (45.9) (268.0)
Proceeds from other equity
transactions . . . . . . . . . . . . . . 46.2 33.9
Other, net. . . . . . . . . . . . . . . . - .6
Net cash used for financing
activities . . . . . . . . . . . . . . . (669.7) (646.3)
Effect of exchange rates on cash and
cash equivalents. . . . . . . . . . . . . (.7) (3.9)
Net Cash Flow from Continuing Operations . 115.8 141.4
Net Cash Flow from Discontinued Operations - 79.7
Net increase in cash and cash equivalents . 115.8 221.1
Cash and cash equivalents, beginning
of period . . . . . . . . . . . . . . . . 321.4 115.6
Cash and cash equivalents, end of period . $ 437.2 $ 336.7
<FN>
See notes to consolidated financial statements.
</TABLE>
SCHERING-PLOUGH CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(Dollars in millions, except per share figures)
Basis of Presentation
The unaudited financial statements included herein have been
prepared pursuant to the rules and regulations of the Securities
and Exchange Commission for reporting on Form 10-Q. Certain
information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations. The statements should be
read in conjunction with the accounting policies and notes to
consolidated financial statements included in the Company's 1995
Annual Report on Form 10-K.
In the opinion of management, the financial statements reflect
all adjustments necessary for a fair statement of the operations
for the interim periods presented.
Earnings Per Common Share
Earnings per common share is computed by dividing net income by
the weighted-average number of common shares outstanding. Shares
issuable through the exercise of stock options and warrants and
under deferred delivery agreements are not considered in the
calculation, as they do not have a material effect on the
determination of earnings per common share. The weighted-average
number of shares used in the computation of earnings per common
share for the nine months ended September 30, 1996 and 1995 were
367,976,072 and 371,203,591, respectively.
During the first quarter of 1996, the Company issued
approximately 1.0 million shares of common stock in connection
with the acquisition of Canji, Inc., a gene therapy company
(accounted for using the purchase method of accounting). Also,
during the first six months of 1996, the Company issued
approximately 3.4 million shares of common stock in exchange and
settlement for warrants to purchase 14.2 million shares of common
stock.
Inventories
Inventories consisted of: September 30, December 31,
1996 1995
Finished products . . . . . . . $ 255.0 $ 213.2
Goods in process. . . . . . . . 187.4 179.4
Raw materials and supplies. . . 131.7 109.4
Total inventories . . . . . . $ 574.1 $ 502.0
Sales
Segment sales for the nine months ended September 30, 1996 and
1995 were as follows:
1996 1995
Pharmaceutical products . . . . $3,748.9 $3,290.4
Health care products. . . . . . 492.6 523.1
Consolidated sales. . . . . . $4,241.5 $3,813.5
Legal and Environmental Matters
The Company is involved in various claims and legal proceedings
of a nature considered normal to its business, including
environmental matters and product liability cases. The recorded
liabilities for these matters at September 30, 1996 were not
material. Management believes that, except for the matters
discussed in the following paragraph, it is remote that any
material liability in excess of the amounts accrued will be
incurred.
The Company is a defendant in more than 150 antitrust actions
commenced in state and federal courts by independent retail
pharmacies, chain retail pharmacies and consumers. The
plaintiffs allege price discrimination and/or conspiracy between
the Company and other defendants to restrain trade by jointly
refusing to sell prescription drugs at discounted prices to the
plaintiffs. One of the federal cases is a class action on behalf
of approximately two-thirds of all retail pharmacies in the
United States alleging a price-fixing conspiracy. The Company
has agreed to settle the federal class action for a total of
$22.1 payable over three years. The settlement provides, among
other things, that the Company shall not refuse to grant
discounts on brand name prescription drugs to a retailer based
solely on its status as a retailer and that, to the extent a
retailer can demonstrate its ability to affect market share of a
Company brand name prescription drug in the same manner as a
managed care organization with which the retailer competes, it
will be entitled to negotiate similar incentives subject to the
rights, obligations, exemptions and defenses of the Robinson-
Patman Act and other laws and regulations. The District Court
approved the settlement of the federal class action on June 21,
1996. In early July, the Seventh Circuit Court of Appeals agreed
to review before trial the District Court's denial of defendant's
summary judgment motion seeking dismissal of all claims by
indirect purchasers of pharmaceutical products in all remaining
cases before the District Court. In addition, the Seventh Circuit
Court of Appeals will hear an appeal by the plaintiffs from the
grant of summary judgment to the wholesaler defendants and an
appeal by certain plaintiffs from the approval of the settlement
by the District Court. Three of the state antitrust cases have
been certified as class actions. One is a class action on behalf
of certain retail pharmacies in California, and the other two are
class actions in California and Alabama, respectively, on behalf
of certain consumers of prescription medicine. Plaintiffs seek
treble damages in an unspecified amount and an injunction against
the allegedly unlawful conduct. The Company believes that all the
antitrust actions are without merit and is defending itself
vigorously against all such claims.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations - three and nine months ended September 30,
1996 compared with the corresponding periods in 1995.
Consolidated sales for the third quarter increased $125.4 million
or 10 percent compared with the same period in 1995. For the
nine months, sales rose $428.0 million or 11% over 1995.
Excluding the effect of foreign currency exchange rate changes,
consolidated sales grew 12 percent in the quarter and the nine-
month period.
In the United States, many of the Company's pharmaceutical
products are subject to increasingly competitive pricing as
managed care, institutions, government agencies and other buying
groups seek price discounts. In most international markets, the
Company operates in an environment of government-mandated cost
containment programs. Several governments have placed
restrictions on physician prescription levels and patient
reimbursements, emphasized greater use of generic drugs and
enacted across-the-board price cuts as methods of cost control.
Since the Company is unable to predict the final form and timing
of any future domestic and international governmental or other
health care initiatives, their effect on future operations and
cash flows cannot be reasonably estimated.
Sales
Domestic ethical pharmaceutical sales advanced 20 percent for the
1996 third quarter and 24 percent for the nine-month period.
Sales of respiratory products increased 21 percent in the quarter
and 25 percent for the nine months, due to significant market
share growth for the CLARITIN brand of nonsedating
antihistamines. Sales growth for the nine months was also aided
by increases for VANCENASE allergy and VANCERIL asthma products.
The respiratory sales gains also reflected a decrease for the
quarter and nine-month period in sales of the PROVENTIL
(albuterol) line of asthma products, due to increased generic
competition. Sales of the PROVENTIL line totaled $55 million for
the quarter and $261 million for the nine months, with metered-
dose inhalers contributing over 60 percent to both periods. The
PROVENTIL formulations of solution, syrup and tablets have been
subject to generic competition, and in December 1995 generic
metered-dose inhalers entered the market. In response, the
Company's generic pharmaceutical marketing subsidiary, Warrick
Pharmaceuticals, launched its own generic inhaler. While generic
inhalers have significantly reduced branded PROVENTIL inhaler
sales, the Warrick inhaler has moderated the sales decline.
Competition from generic metered-dose inhalers will, however,
continue to negatively affect future sales and profitability of
the PROVENTIL (albuterol) line of asthma products.
U.S. sales of cardiovascular products rose 26 percent in the
quarter and 30 percent for the nine months, reflecting market
share gains for IMDUR, a once-daily oral nitrate. The nine-month
period also benefited from strong sales of K-DUR potassium
supplements due to market share gains. Sales of anti-infective
and anticancer products grew 25 percent in the third quarter and
32 percent for the nine-month period, resulting from increased
utilization of INTRON-A, the Company's alpha interferon
anticancer and antiviral agent, for melanoma and hepatitis. Also
contributing to the nine-month period sales increase was the
first quarter launch of CEDAX, a third-generation cephalosporin
antibiotic. Both periods, however, were negatively affected by
lower sales of EULEXIN, a prostate cancer therapy, due to branded
competition. Domestic dermatological product sales declined 6
percent for the quarter but advanced 11 percent for the nine
months. Higher sales of LOTRISONE, an antifungal/anti-
inflamatory cream, and ELOCON, a mid-potency topical
corticosteriod, drove the nine month advance, while lower sales
of several smaller dermatological products were responsible for
the third quarter's decline.
International ethical pharmaceutical product sales increased 6
percent in the third quarter and 5 percent for the nine-month
period. Excluding the impact of foreign currency exchange rate
fluctuations, sales would have risen 10 percent in the quarter
and 7 percent for the nine months. Sales of anti-infective and
anticancer products grew 10 percent in the third quarter, and 9
percent for the nine-month period, due to gains for INTRON A in
both periods.
International respiratory product sales advanced 13 percent in
the quarter and 7 percent for the nine-month period, as strong
CLARITIN growth for both periods was tempered by a decline in
sales of other allergy products in Japan for the nine months.
Dermatological product sales grew 10 percent for the third
quarter and 7 percent for the nine-month period, primarily
reflecting gains for ELOCON. Sales growth for both periods was
also aided by continued gains for LOSEC, an anti-ulcer treatment
licensed from AB Astra.
Worldwide sales of animal health products were flat for the third
quarter and nine months. The sales gains from the domestic June
launch of NUFLOR, an antibiotic for bovine respiratory disease,
were tempered by lower sales of various other animal health
products in both the domestic and international markets.
Sales of health care products declined 10 percent in the third
quarter and 6 percent for the nine-month period. Over-the-
counter product sales declined 13 percent in the quarter and 19
percent for the nine months, primarily due to aggressive private-
label competition for allergy/cold products, along with the
introduction of competitive products and price reductions for
female health products. Footcare product sales advanced in both
periods, while Suncare product sales declined in the quarter but
were flat for the nine-month period.
Income before income taxes increased 15 percent for the quarter
and represented 28.0 percent of sales versus 26.6 percent last
year. For the nine months, income before taxes from continuing
operations grew 15 percent over 1995, representing 29.2 percent
of sales compared with 28.3 percent last year.
Cost of sales as a percentage of sales decreased to 18.6 percent
from 18.9 percent in the quarter, principally the result of a
favorable sales mix of higher margin pharmaceutical products.
For the nine-month period, the cost of sales ratio declined to
19.0 percent from 19.6 percent, also the result of a favorable
product mix.
Selling, general and administrative expenses represented 40.7
percent of sales in the third quarter compared with 40.6 percent
last year. For the nine-month period, the ratio was 38.8 percent
versus 38.7 percent in 1995. These increases reflect higher
CLARITIN promotions and launch-related expenses for CEDAX in the
U.S.
For the quarter, research and development spending rose 10
percent and represented 13.2 percent of sales in both 1996 and
1995. For the nine months, spending also grew 10 percent, and
represented 12.3 percent of sales versus 12.5 percent in 1995.
The higher spending reflects the Company's funding of both
internal research efforts and research collaborations with
various partners. It is anticipated that total research and
development expenses will approximate $720 million in 1996.
The effective tax rate for continuing operations was 24.5 percent
in the three- and nine- month periods of both 1996 and 1995.
Earnings per common share advanced 16 percent in the third
quarter to $.79 from $.68 in 1995. For the nine-month period,
earnings per common share from continuing operations increased 16
percent to $2.54 from $2.19 last year. Excluding the impact of
foreign currency exchange rates, earnings per common share from
continuing operations would have risen approximately 19 percent
in the quarter and 18 percent for the nine months.
Liquidity and financial resources - nine months ended September
30, 1996
Cash generated from operations continues to be the Company's
major source of funds to finance working capital, additions to
property, shareholder dividends, common share repurchases and
repayment of debt. Cash provided from operations totaled
$1,030.0 million for the first nine months of 1996. This cash
funded the spending of $349.7 million for shareholder dividends
and $208.0 million for capital expenditures, as well as provided
for the $180.0 million reduction in short-term borrowings and
$140.3 million repayment of long-term debt.
In the second quarter, the Company completed a $500 million
repurchase program, which had begun in 1995. In September 1996,
the Board of Directors authorized the purchase of an additional
$500 million of common shares. As of September 30 this program
was approximately 5% complete.
The Company's liquidity and financial resources continue to be
sufficient to meet its operating needs.
Cautionary Statements for Forward Looking Information
Management's discussion and analysis set forth above contains
certain forward looking statements, including statements
regarding the Company's financial position and results of
operations. These forward looking statements are based on
current expectations. Certain factors have been identified by
the Company in Exhibit 99 to the Company's Quarterly Report on
Form 10-Q for the quarterly period ended March 31, 1996 which
could cause the Company's actual results to differ materially
from expected and historical results. Exhibit 99 from that
quarterly report is incorporated by reference herein.
PART II OTHER INFORMATION
Item 1. Legal Proceedings
The first paragraph of Item 3, Legal Proceedings of Part I
of the Company's Annual Report on Form 10-K for the fiscal year
ended December 31, 1995, as amended by the Company's Quarterly
Reports on Form 10-Q for the quarterly periods ended March 31,
1996 and June 30, 1996, respectively, relating to certain product
liability actions pending against the Company, is incorporated
herein by reference. Subsidiaries of the Company are defendants
in 149 lawsuits involving approximately 600 plaintiffs arising
out of the use of synthetic estrogens by the mothers of the
plaintiffs.
The final paragraph of Item 3, Legal Proceedings of Part I
of the Company's Annual Report on Form 10-K for the fiscal year
ended December 31, 1995, as amended by the Company's Quarterly
Reports on Form 10-Q for the quarterly periods ended March 31,
1996 and June 30, 1996, respectively, relating to certain
antitrust actions, is incorporated herein by reference. In the
federal class action, the Seventh Circuit Court of Appeals will
also hear an appeal by the plaintiffs from the grant of summary
judgment to the wholesaler defendants and an appeal by certain
plaintiffs from the approval of the settlement by the District
Court.
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits - The following Exhibits are filed with this
document:
Exhibit
Number Description
11 - Computation of Earnings Per Common Share
27 - Financial Data Schedule
99 - Exhibit 99 to Quarterly Report on Form 10-Q
for the quarterly period ended March 31, 1996
is hereby incorporated by reference.
b) Reports on Form 8-K:
No report has been filed during the three months ended
September 30, 1996.
SIGNATURE(S)
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.
Schering-Plough Corporation
(Registrant)
Date October 30, 1996 Thomas H. Kelly
Thomas H. Kelly
Vice President and Controller
WD041001.10Q
Exhibit 11
<TABLE>
SCHERING-PLOUGH CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
(Amounts in millions, except per share figures)
<CAPTION>
Nine Months Ended
September 30,
1996 1995
<S> <C> <C>
Earnings per Common Share, As Reported:
Income from continuing operations . . . $ 935.4 $ 813.6
Discontinued operations:
Loss from operations . . . . . . . . . - (10.2)
Loss on disposal . . . . . . . . . . . - (156.2)
Net income applicable to common shares. 935.4 647.2
Average Number of Common Shares
Outstanding . . . . . . . . . . . . . . 368.0 371.2
Earnings per Common Share:
Income from continuing operations . . . 2.54 2.19
Discontinued operations:
Loss from operations . . . . . . . . . - (.03)
Loss on disposal . . . . . . . . . . . - (.42)
Total . . . . . . . . . . . . . . . . . $ 2.54 $ 1.74
Earnings per Common Share, Assuming
Full Dilution: (a)
Average Number of Common Shares
Outstanding . . . . . . . . . . . . . . 368.0 371.2
Shares Contingently Issuable for
Stock Incentive Plans and Warrant
Agreements. . . . . . . . . . . . . . . 4.4 5.4
Average Number of Common Shares and
Common Share Equivalents Outstanding. . 372.4 376.6
Earnings per Common Share:
Continuing operations . . . . . . . . . 2.51 2.16
Discontinued operations:
Loss from operations . . . . . . . . . - (.03)
Loss on disposal . . . . . . . . . . . - (.41)
Earnings per Common Share, Assuming
Full Dilution . . . . . . . . . . . . $ 2.51 $ 1.72
(a) This calculation is submitted in accordance with the
regulations of the Securities and Exchange Commission although
not required by APB Opinion No. 15 because it results in dilution
of less than 3%.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
SCHERING-PLOUGH CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS,
AND RELATED EXHIBITS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 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> 437200
<SECURITIES> 0
<RECEIVABLES> 571200
<ALLOWANCES> 0
<INVENTORY> 574100
<CURRENT-ASSETS> 2256500
<PP&E> 3284900
<DEPRECIATION> 1105200
<TOTAL-ASSETS> 5196300
<CURRENT-LIABILITIES> 2295800
<BONDS> 42000
0
0
<COMMON> 507400
<OTHER-SE> 1733000
<TOTAL-LIABILITY-AND-EQUITY> 5196300
<SALES> 4241500
<TOTAL-REVENUES> 4241500
<CGS> 807400
<TOTAL-COSTS> 807400
<OTHER-EXPENSES> 522800
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1239000
<INCOME-TAX> 303600
<INCOME-CONTINUING> 935400
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<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 935400
<EPS-PRIMARY> 2.54
<EPS-DILUTED> 2.51
</TABLE>
