FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1999
OR
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from ________ to ___________
Commission file number: 000-15760
Hardinge Inc.
(Exact name of Registrant as specified in its charter)
New York 16-0470200
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Hardinge Inc.
One Hardinge Drive
Elmira, NY 14902
(Address of principal executive offices) (Zip code)
(607) 734-2281
(Registrant's telephone number including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No ____
As of March 31, 1999 there were 9,809,313 shares of Common Sock of the
Registrant outstanding.
<PAGE>
HARDINGE INC. AND SUBSIDIARIES
INDEX
Part I Financial Information Page
Item 1. Financial Statements
Consolidated Balance Sheets at March 31, 1999
and December 31, 1998. 3
Consolidated Statements of Income and Retained
Earnings for the three months ended March 31, 1999
and 1998. 5
Condensed Consolidated Statements of Cash Flows for
the three months ended March 31, 1999 and 1998. 6
Notes to Consolidated Financial Statements. 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. 10
Item 3. Quantitative and Qualitative Disclosures About
Market Risks 15
Part II Other Information
Item 1. Legal Proceedings 15
Item 2. Changes in Securities 15
Item 3. Default upon Senior Securities 15
Item 4. Submission of Matters to a Vote of Security Holders 15
Item 5. Other Information 15
Item 6. Exhibits and Reports on Form 8-K 15
Signatures 16
<PAGE>
PART I, ITEM 1
HARDINGE INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In Thousands)
<TABLE>
<CAPTION>
March 31, Dec. 31,
1999 1998
-------------------------------
(Unaudited)
<S> <C> <C>
Assets
Current assets:
Cash $ 2,132 $ 2,192
Accounts receivable 46,738 54,631
Notes receivable 8,545 7,194
Inventories 87,822 91,965
Deferred income taxes 2,299 2,299
Prepaid expenses 2,880 2,960
-------------------------------
Total current assets 150,416 161,241
Property, plant and equipment:
Property, plant and equipment 144,952 143,937
Less accumulated depreciation 68,715 67,183
-------------------------------
76,237 76,754
Other assets:
Notes receivable 15,471 13,063
Goodwill 3,902 3,938
Other 2,230 1,685
-------------------------------
21,603 18,686
-------------------------------
Total assets $248,256 $256,681
===============================
</TABLE>
See accompanying notes.
<PAGE>
HARDINGE INC. AND SUBSIDIARIES
Consolidated Balance Sheets--Continued
(Dollars In Thousands)
<TABLE>
<CAPTION>
March 31, Dec. 31,
1999 1998
-------------------------------
(Unaudited)
<S> <C> <C>
Liabilities and shareholders' equity Current liabilities:
Accounts payable $ 9,667 $ 11,368
Notes payable to bank 3,560 5,018
Accrued expenses 8,852 8,540
Accrued income taxes 2,010
Deferred income taxes 2,230 2,111
Current portion long-term debt 3,550 3,654
-------------------------------
Total current liabilities 29,869 30,691
Other liabilities:
Long-term debt 28,368 35,415
Accrued pension plan expense 3,527 3,527
Deferred income taxes 1,717 1,863
Accrued postretirement benefits 5,448 5,390
-------------------------------
39,060 46,195
Shareholders' equity:
Preferred stock, Series A, par value $.01:
Authorized - 2,000,000; issued - none
Common stock, $.01 par value:
Authorized shares - 20,000,000
Issued shares - 9,919,992 at March 31, 1999
and 9,843,992 at December 31, 1998 99 98
Additional paid-in capital 61,630 60,351
Retained earnings 128,230 127,526
Treasury shares (1,949) (853)
Accumulated other comprehensive income -
Foreign currency translation adjustments (3,388) (2,485)
Deferred employee benefits (5,295) (4,842)
-------------------------------
Total shareholders' equity 179,327 179,795
-------------------------------
Total liabilities and shareholders' equity $248,256 $256,681
===============================
</TABLE>
See accompanying notes.
<PAGE>
HARDINGE INC AND SUBSIDIARIES
Consolidated Statements of Income and Retained Earnings (Unaudited)
(In Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
Three months ended
March 31,
1999 1998
-------------------------------
<S> <C> <C>
Net Sales $46,194 $65,779
Cost of sales 30,646 42,926
-------------------------------
Gross profit 15,548 22,853
Selling, general and
administrative expenses 12,095 13,671
-------------------------------
Income from operations
3,453 9,182
Interest expense 489 573
Interest (income) (157) (150)
-------------------------------
Income before income taxes 3,121 8,759
Income taxes 1,039 3,305
-------------------------------
Net income 2,082 5,454
Retained earnings at beginning of period 127,526 112,625
Less dividends declared 1,378 1,368
===============================
Retained earnings at end of period $128,230 $ 116,711
===============================
Per share data:
Basic earnings per share $ .22 $ .58
===============================
Weighted average number
of common shares outstanding 9,460 9,411
===============================
Diluted earnings per share $ .22 $ .58
===============================
Weighted average number
of common shares outstanding 9,431 9,441
===============================
Cash dividends declared $ .14 $ .14
===============================
</TABLE>
See accompanying notes.
<PAGE>
HARDINGE INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In Thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1999 1998
----------------------------------
<S> <C> <C>
Net cash provided by operating activities $13,125 $ 10,014
Investing activities:
Capital expenditures (2,501) (6,677)
----------------------------------
Net cash (used in) investing activities (2,501) (6,677)
Financing activities:
(Decrease) in short-term notes payable to bank (1,403) (3,002)
(Decrease) increase in long-term debt (7,032) 2,259
(Purchase) of treasury stock (818) (169)
Dividends paid (1,378) (1,368)
----------------------------------
Net cash (used in) financing activities (10,631) (2,280)
Effect of exchange rate changes on cash (53) (4)
-----------------------------------
Net (decrease) increase in cash ($ 60) $1,053
</TABLE>
===================================
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
March 31, 1999
NOTE A--BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Article
10 of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three month period ended March 31,
1999, are not necessarily indicative of the results that may be expected for the
year ended December 31, 1999. For further information, refer to the consolidated
financial statements and footnotes thereto included in the Company's annual
report for the year ended December 31, 1998.
The Company has adopted Statement of Financial Accounting Standards
No. 131, "Disclosures About Segments of an Enterprise and Related Information."
The Company operates in only one business segment - industrial machine tools.
NOTE B--INVENTORIES
Inventories are summarized as follows (dollars in thousands):
March 31, December 31,
1999 1998
----------------- --- ------------------
Finished products $ 35,266 $ 36,185
Work-in-process 29,733 29,499
Raw materials and purchased components 22,823 26,281
=============== =================
$ 87,822 $ 91,965
=============== =================
NOTE C--CHANGES IN SHAREHOLDERS' EQUITY
On April 28, 1998, the Board of Directors approved a three-for-two
stock split of the Company's common shares to be paid in the form of a 50
percent stock dividend. As a result of the split, 3,281,351 additional shares
were issued on May 29, 1998 to shareholders of record on May 8, 1998 and
retained earnings were reduced by $32,813. Any fractional shares resulting from
the split were paid in cash. 1998 common shares outstanding and earnings per
share have been restated to reflect this stock split.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
March 31, 1999
NOTE D--EARNINGS PER SHARE AND WEIGHTED AVERAGE SHARES OUTSTANDING
Earnings per share are computed using Statement of Financial
Accounting Standards No. 128 "Earnings per Share." Basic earnings per share are
computed using the weighted average number of shares of common stock outstanding
during the period. For diluted earnings per share, the weighted average number
of shares includes common stock equivalents related primarily to restricted
stock. Earnings per share amounts and shares outstanding have been restated to
reflect the stock split mentioned above.
The following is a reconciliation of the numerators and denominators
of the basic and diluted earnings per share computations required by Statement
No. 128. The table sets forth the computation of basic and diluted earnings per
share:
Three months ended
March 31,
------------------------------
1999 1998
------------------------------
Numerator:
Net income $ 2,082 $ 5,454
Numerator for basic earnings per share 2,082 5,454
Numerator for diluted earnings per share 2,082 5,454
Denominator:
Denominator for basic earnings per share
-weighted average shares 9,460 9,411
Effect of diluted securities:
Restricted stock and stock options (29) 30
Denominator for diluted earnings per share
-adjusted weighted average shares 9,431 9,441
Basic earnings per share $ .22 $ .58
==============================
Diluted earnings per share $ .22 $ .58
==============================
NOTE E--DIVIDENDS DECLARED
1998 dividends declared per share have been restated to reflect the
additional shares issued in the stock split mentioned above.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
March 31, 1999
NOTE F--REPORTING COMPREHENSIVE INCOME
As of January 1, 1998 the Company adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income." Statement 130
establishes new rules for the reporting and display of comprehensive income and
its components. However, the adoption of this Statement had no impact on the
Company's net income or shareholders' equity. Statement 130 requires that
foreign currency translation adjustments, which prior to adoption were reported
separately in shareholders' equity, be included in shareholders' equity as other
comprehensive income.
During the three months ended March 31,1999 and 1998, the components
of total comprehensive income consisted of the following (dollars in thousands)
following (dollars in thousands):
Three months ended
March 31,
1999 1998
-------------- --------------
Net Income $ 2,082 $ 5,454
Foreign currency translation adjustments
(903) (266)
============== ==============
Comprehensive Income $ 1,179 $ 5,188
============== ==============
<PAGE>
PART I, ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following are management's comments relating to significant changes
in the results of operations for the three month periods ended March 31, 1999
and 1998 and in the Company's financial condition during the three month period
ended March 31, 1999.
Results of Operations
Net Sales. Net sales for the quarter ended March 31, 1999 were
$46,194,000 compared to $65,779,000 for the quarter ended March 31, 1998, for a
reduction of $19,585,000 or 29.8%. While sales to automotive customers fell
during the first quarter of 1999 by $8,500,000 from the same 1998 quarter, the
remaining decrease in sales volume resulted from declining demand among all
customers worldwide. In the United States, first quarter 1999 sales declined by
$16,214,000 or 35.6% from the same period a year ago. Similarly, sales to
European customers and to all other areas of the world decreased by $1,288,000
and $2,083,000, respectively, a combined decrease of 16.7%.
Sales of machines accounted for $28,567,000 during the first quarter of
1999 compared to $46,405,000 for the same 1998 period, a decline of $17,838,000
or 38.4%. Sales of non-machine products and services of $17,627,000 represented
a reduction of $1,747,000 or 9.0% from the same quarter last year.
The Company's orders backlog at March 31, 1999 dropped by 35.2% from a
year earlier. However, backlog rose during the first quarter of 1999 by 13.4%
from its level at December 31, 1998. This was the result of a strong influx of
orders at the end of the current quarter.
Gross Profit. Gross margin, as a percentage of sales, was 33.7% in the
first quarter of 1999, compared to 34.7% for the same period in 1998. This
reduction is the net result of several factors. First, the significant downturn
in customer demand has been felt across the entire machine tool industry. For
example, published data on consumption of U.S. domestic metal cutting machines
indicate a reduction in demand of approximately 53% for the first two months of
1999 compared to the same period during 1998. This condition resulted in
significant price discounting among machine tool suppliers, including Hardinge.
At the same time, the relatively larger portion of Hardinge total sales to
customers outside the United States also caused a reduction in gross margin.
This is true because foreign sales are typically conducted more through
distributor-based distribution channels requiring higher discounts than domestic
sales which often are made by the Company's direct sales force. Offsetting these
margin reductions is the fact that the relative proportion of total sales
attributable to non-machine products and services has increased during the first
quarter of 1999 compared to 1998. Higher gross margins on these items have
helped to offset the effects of price and channel of distribution discounting.
Finally, the Company made significant reductions in productive and overhead
labor levels in January 1999 in response to the lower sales volume.
<PAGE>
Selling, General, and Administrative Expenses. Selling, general and
administrative ("SG&A") expenses during the first quarter of 1999 were
$12,095,000 compared to $13,671,000 for the same quarter of 1998, for a
reduction of $1,576,000. The Company's January 1999 workforce reduction resulted
in reduced levels of SG&A labor in response to declining market conditions, and
additional cost reduction measures were taken as well. However, the significant
decline in sales volume described above resulted in SG&A as a percentage of
sales increasing to 26.2% for the quarter ended March 31, 1999 compared to 20.8%
a year earlier.
Income from Operations. Income from operations as a percentage of net
sales decreased in the three month period ended March 31, 1999 to 7.5% from the
14.0% earned for the same period in 1998. In January 1999, the Company reduced
its U.S. workforce by approximately 200 jobs, or 15%, in response to declining
market conditions, and took other cost reduction measures as well. However, the
substantial reduction in sales volume for the first quarter of 1999 could only
be partially offset by these cost reduction efforts.
Interest Expense and Income. Interest expense decreased to $489,000 in
the first quarter of 1999, from $573,000 in the same 1998 period. Average
outstanding debt for this year's quarter was somewhat lower than the previous
year. The Company also paid slightly lower interest rates during the first
quarter of 1999. Interest income, earned primarily on customer notes, remained
nearly constant over the two periods.
Income Taxes. The provision for income taxes as a percentage of net
income was 33.3% for the first quarter of 1999 compared to 37.7% a year earlier.
The decrease in average tax rate is the result of two factors. First, a
relatively larger portion of 1999 earnings is attributable to profits of the
Company's European operations, where the effective tax rate is considerably
lower than in the U.S. Second, the Company's U.S. operations experienced a
higher utilization of U.S. income tax credits during 1999's first quarter.
Net Income. Net income for the first quarter of 1999 was $2,082,000 or
$.22 diluted earnings per share compared to $5,454,000 or $.58 diluted earnings
per share for the first quarter of 1998 after restatement for the Company's
3-for-2 stock split in May, 1998.
Earnings Per Share. All earnings per share and weighted average share
amounts are presented to conform with Financial Accounting Standards Board
Statement No. 128, Earnings Per Share. Additionally, to provide comparability
between periods, prior period data have also been restated to give effect to the
Company's 3-for-2 stock split which took place in May 1998.
<PAGE>
Quarterly Information
The following table sets forth certain quarterly financial data for
each of the periods indicated.
<TABLE>
<CAPTION>
Three Months Ended
Mar. 31, June 30, Sept. 30, Dec. 31,
1998 1998 1998 1998
----------------------------------------------------------
----------------------------------------------------------
(in thousands, except per share data)
----------------------------------------------------------
<S> <C> <C> <C> <C>
Net Sales $ 65,779 $ 65,071 $ 62,041 $ 66,734
Gross Profit 22,853 23,600 22,606 23,038
Income from operations 9,182 9,068 7,720 7,670
Net income 5,454 5,409 4,531 4,889
Diluted earnings per share .58 .57 .48 .52
Weighted average shares outstanding 9,441 9,468 9,468 9,468
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended
Mar. 31,
1999
----------------------------------------------------------
----------------------------------------------------------
(in thousands, except per share data)
----------------------------------------------------------
<S> <C>
Net Sales $ 46,194
Gross Profit 15,548
Income from operations 3,453
Net income 2,082
Diluted earnings per share .22
Weighted average shares outstanding 9,431
</TABLE>
Liquidity and Capital Resources
For the first three months of 1999, operating activities generated
$13,125,000 of cash compared to $10,014,000 for the same period during 1998, for
an increase of $3,111,000. There are several reasons for this increase.
Operating funds were generated by a smaller reduction in accounts payable
($3,621,000) from the previous year's comparable quarter and by a larger
reduction in inventory ($1,470,000) during the first quarter of 1999 compared to
the year-ago quarter. These sources of operating funds were offset by the
reduction in net profit of $3,372,000 between the two quarters, with smaller
changes making up the remaining difference.
Investing activities for the quarter ended March 31, 1999, at
$2,501,000, used $4,176,000 less than the same quarter of last year. 1998's
first quarter investments were unusually high as a result of the purchase of
several large items of manufacturing equipment. Financing activities during the
first quarter of 1999 used cash of $10,631,000, or $8,351,000 more than 1998's
first quarter. The additional cash usage resulted primarily from a net paydown
of total debt of $8,435,000 in the first quarter of 1999, compared to a paydown
of $743,000 for the year-ago quarter.
<PAGE>
Hardinge's current ratio at March 31, 1999 was 5.04:1 compared to
5.25:1 at December 31, 1998.
Hardinge provides long-term financing for the purchase of its equipment
by qualified customers. The Company periodically sell portfolios of customer
notes to financial institutions in order to reduce debt and finance current
operations. The customer financing program has an impact on Hardinge's
month-to-month borrowings, but it has had little long-term impact on its working
capital because of the ability to sell the underlying notes. The Company sold
$10,238,000 of customer notes in the first three months of 1998. No notes were
sold during 1999's first quarter as a result of the lower sales levels
previously discussed coupled with the fact that a considerably lower portion of
total sales were recorded on contracts.
Hardinge maintains revolving loan agreements with several U.S. banks
providing for unsecured borrowing up to $70,000,000 on a revolving basis,
$20,000,000 through November 1, 1999 and $50,000,000 through August 1, 2002. At
November 1, 1999 any outstanding balance on the $20,000,000 facility converts,
at the Company's option, to a term loan payable quarterly over four years
through 2003. It is the Company's intent to negotiate a new revolver agreement
to replace this arrangement on or before November 1, 1999. These facilities,
along with other short term credit agreements, provide for immediate access of
up to $77,000,000. At March 31, 1999, outstanding borrowings under these
arrangements totaled $20,718,000.
We believe that currently available funds and credit facilities, along
with internally generated funds, will provide sufficient financial resources for
ongoing operations.
Year 2000 Issue
The Year 2000 issue arises from the use of two-digit date fields in
certain computer programs which may cause problems as the year changes from 1999
to 2000. If the Company's computer systems do not correctly recognize date
information, there could be a material adverse effect on the Company's
operations. The Company has identified risk associated with the Year 2000
problem in the following areas: (i) systems used by the Company to operate its
business; (ii) systems used by the Company's critical suppliers; and (iii)
warranty or other potential claims from the Company's customers. The Company has
evaluated its risks in these areas and is in the process of implementing a
program to minimize any potential impact on operations arising out of the Year
2000 problem. The Company's efforts have been directed by a Steering Committee
consisting of executive officers and other appropriate personnel. Costs
associated with the program are not expected to be significant and are being
expensed as incurred with funding through operating cash flows.
With respect to IT (Information Technology) systems, the Company has
reviewed, tested and corrected, where necessary, all internally-generated
software for the ability to recognize the year 2000. Where the Company relies on
outside software vendors, the Company has received written assurance of, and
tested for, such software's ability to properly perform beyond December 31,
1999.
Non-information technology ("Non-IT") systems include plant floor
machinery and systems with embedded technology such as microprocessors or
microcontrollers which operate such facility related items as phone systems,
access controls and heating, ventilation and air conditioning systems. The
Company has identified, tested where possible and received when available
written confirmation that its facility-related non-IT equipment is Year 2000
compliant and has requested written assurance from its key equipment suppliers
that their internal operations and products are and will be Year 2000 compliant.
Currently, a majority of suppliers have provided information indicating they are
addressing the Y2K issue in their own operations.
<PAGE>
The Company believes that its past and current products are Year 2000
compliant and therefore exposure to warranty and other potential claims is not
expected to be outside the ordinary course of business. With respect to the
computerized control systems in place on the Company's machines sold in prior
years, the Company's primary supplier of these controls has provided written
assurance that both their previously-supplied and current controls are Year 2000
compliant.
As part of its Year 2000 compliance program, the Company has developed
a contingency plan to address what it views as the most likely worst-case
scenario resulting from one or more of the above-identified risks being
realized. At this time, the Company believes that the failure of a third-party's
system to perform as represented poses the greatest risk to the Company's
operations. The contingency plan identifies alternative suppliers and addresses
other potential third-party failures. While the Company believes it has
addressed all critical Year 2000 issues, there is no guarantee against internal,
external and third-party system failures related to the Year 2000 problem. Such
failures could have a material adverse effect on the Company's results of
operations, liquidity and financial condition.
Subsequent Event
On April 9, 1999, Hardinge announced a stock repurchase program. The
Board of Directors has authorized the repurchase of up to 1.0 million shares of
the Company's common stock, or approximately 10% of the total shares
outstanding. Current report on Form 8-K was filed with the Securities and
Exchange Commission on April 16, 1999. To date, the Company has purchased
147,500 shares under the program.
This report contains statements, including those relating to the year
2000 issue, of a forward-looking nature relating to the financial performance of
Hardinge Inc. in 1999. Such statements are based upon information known to
management at this time. The company cautions that such statements necessarily
involve uncertainties and risk and deal with matters beyond the company's
ability to control, and in many cases the company cannot predict what factors
would cause actual results to differ materially from those indicated. Among the
many factors that could cause actual results to differ from those set forth in
the forward-looking statements are fluctuations in the machine tool business
cycles, changes in general economic conditions in the U.S. or internationally,
the mix of products sold and the profit margins thereon, the relative success of
the company's entry into new product and geographic markets , the company's
ability to manage its operating costs, actions taken by customers such as order
cancellations or reduced bookings by customers or distributors, competitors'
actions such as price discounting or new product introductions, governmental
regulations and environmental matters, changes in the availability and cost of
materials and supplies, the implementation of new technologies and currency
fluctuations. Any forward-looking statement should be considered in light of
these factors. The company undertakes no obligation to revise its
forward-looking statements if unanticipated events alter their accuracy.
<PAGE>
PART I. ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
None
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Default upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
A. Exhibits
27.1 Financial Data Schedule
27.2 Restated Financial Data Schedule
B. Reports on Form 8-K
Current report on Form 8-K, dated January 13, 1999 was filed in
connection with a January 7, 1999 press release announcing a workforce reduction
and a restructuring charge for moving the company's Hansvedt facility in
Illinois to Elmira, NY.
<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.
Hardinge Inc.
May 12, 1999 By:_/s/ Robert E. Agan
Date Robert E. Agan
Chairman of the Board, President /CEO
May 12, 1999 By:_/s/ J. Patrick Ervin__________________
Date J. Patrick Ervin
Executive Vice President
May 12, 1999 By:_/s/ Richard L. Simons_________________
Date Richard L. Simons
Senior Vice President and Chief
Financial Officer
(Principal Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS INFORMATION EXTRACTED FROM THE COMPANY'S UNAUDITED
FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 2,132
<SECURITIES> 0
<RECEIVABLES> 70,754
<ALLOWANCES> 0
<INVENTORY> 87,822
<CURRENT-ASSETS> 150,416
<PP&E> 144,952
<DEPRECIATION> 68,715
<TOTAL-ASSETS> 248,256
<CURRENT-LIABILITIES> 29,869
<BONDS> 0
0
0
<COMMON> 99
<OTHER-SE> 179,228
<TOTAL-LIABILITY-AND-EQUITY> 248,256
<SALES> 46,194
<TOTAL-REVENUES> 46,194
<CGS> 30,646
<TOTAL-COSTS> 12,095
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 489
<INCOME-PRETAX> 3,121
<INCOME-TAX> 1,039
<INCOME-CONTINUING> 2,082
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,082
<EPS-PRIMARY> .22
<EPS-DILUTED> .22
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS RESTATED SCHEDULE CONTAINS INFORMATION EXTRACTED FROM THE COMPANY'S
UNAUDITED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. EARNINGS
PER SHARE AMOUNTS HAVE BEEN RESTATED TO REFLECT A THREE FOR TWO STOCK SPLIT IN
MAY, 1998.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 2,618
<SECURITIES> 0
<RECEIVABLES> 70,963
<ALLOWANCES> 0
<INVENTORY> 89,880
<CURRENT-ASSETS> 157,286
<PP&E> 134,724
<DEPRECIATION> 65,221
<TOTAL-ASSETS> 246,495
<CURRENT-LIABILITIES> 37,843
<BONDS> 32,383
0
0
<COMMON> 66
<OTHER-SE> 167,229
<TOTAL-LIABILITY-AND-EQUITY> 246,495
<SALES> 65,779
<TOTAL-REVENUES> 65,779
<CGS> 42,926
<TOTAL-COSTS> 13,671
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 573
<INCOME-PRETAX> 8,759
<INCOME-TAX> 3,305
<INCOME-CONTINUING> 5,454
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,454
<EPS-PRIMARY> .58
<EPS-DILUTED> .58
</TABLE>
