FEDERAL MOGUL CORP
10-Q, 1995-11-09
MOTOR VEHICLE PARTS & ACCESSORIES
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<PAGE> 1

                                    UNITED STATES

                         SECURITIES AND EXCHANGE COMMISSION

                                Washington, DC  20549


                                       FORM 10-Q


                       QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)

                          OF THE SECURITIES EXCHANGE ACT OF 1934


For the Period Ended                 September 30, 1995
                      ----------------------------------------------------

Commission File Number                   1-1511
                        --------------------------------------------------

                          FEDERAL-MOGUL CORPORATION
- --------------------------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

        Michigan                                           38-0533580
- -------------------------------                 --------------------------
(State or other jurisdiction of                 (I.R.S. Employer I.D. No.)
incorporation or organization)


             26555 Northwestern Highway, Southfield, Michigan  48034
- --------------------------------------------------------------------------
              (Address of principal executive offices)      (Zip Code)

                               (810) 354-7700
- ---------------------------------------------------------------------------
            (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, and (2) has been subject to such
filing requirements for the past 90 days.

               Yes        X                 No
               ----------------            -----------------

Indicate the number of shares outstanding of each of the issuer's classes 
of common stock, as of the latest practicable date:

            Common Stock, 34,995,859 shares as of November 7, 1995


<PAGE> 2

<TABLE>

PART I - FINANCIAL INFORMATION
- ------------------------------

Item 1.  Financial Statements

<CAPTION>

FEDERAL-MOGUL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings (Unaudited)


                                  Three Months Ended         Nine Months Ended
                                     September 30               September 30
                                 --------------------        ------------------
                                   1995        1994            1995      1994
                                 --------    --------        --------  --------
                                 (Millions of Dollars, Except Per Share Amounts)

<S>                                <C>         <C>          <C>        <C>
Net sales                          $  480.2    $  445.3      $1,510.8  $1,380.4
Cost of products sold                 373.4       349.7       1,176.6   1,083.3
Selling, distribution 
  and administrative expenses          78.1        66.0         237.5     195.6
                                    -------     -------       -------   -------

   Operating Earnings                  28.7        29.6          96.7     101.5

Other income (expense):
   Amortization of intangible assets   (2.8)       (2.5)         (8.7)     (7.0)
   Interest expense                    (9.6)       (4.0)        (26.2)    (13.3)
   Interest income                      2.1         2.7           4.0       6.5
   International currency 
      exchange gains (losses)           (.7)         .4          (2.3)     (5.0)
   Other, net                             -         (.2)          (.3)       .4
                                    -------     -------       -------   -------

      Earnings Before Income Taxes     17.7        26.0          63.2      83.1

   Income taxes                         6.7         9.9          23.8      31.6
                                    -------     -------       -------   -------

      Net Earnings                     11.0        16.1          39.4      51.5

   Preferred stock dividends, 
      net of tax benefits               2.2         2.3           6.6       6.9
                                    -------     -------       -------   -------

      Net Earnings Available 
         for Common Shares         $    8.8    $   13.8      $   32.8  $   44.6
                                    -------     -------       -------   -------
                                    -------     -------       -------   -------

Earnings Per Common Share

   Primary                         $    .25    $    .38      $    .94  $   1.27
                                    -------     -------       -------   -------
                                    -------     -------       -------   -------

   Fully Diluted                   $    .25    $    .37      $    .91  $   1.19
                                    -------     -------       -------   -------
                                    -------     -------       -------   -------


See accompanying notes.

</TABLE>

<PAGE> 3

<TABLE>

<CAPTION>

FEDERAL-MOGUL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Millions of Dollars)


                                                   September 30,   December 31,
                                                       1995            1994
                                                   ------------    ------------
                                                   (Unaudited)

<S>
Assets
                                                     <C>             <C>
Current Assets:
   Cash and equivalents                              $   22.2        $   25.0 
   Accounts receivable                                  341.6           269.5 
   Inventories                                          491.9           372.1 
   Prepaid expenses and income tax benefits              48.2            37.6 
                                                      -------         -------
      Total Current Assets                              903.9           704.2 

Property, Plant and Equipment                           459.0           437.3 
Goodwill                                                226.6           172.9 
Other Intangible Assets                                  68.2            71.2
Business Investments and Other Assets                   115.8           110.5 
                                                      -------         -------

      Total Assets                                   $1,773.5        $1,496.1 
                                                      -------         -------
                                                      -------         -------


Liabilities and Shareholders' Equity

Current Liabilities:
   Short-term debt                                   $  120.6        $   74.0 
   Accounts payable                                     167.4           136.6 
   Accrued compensation                                  38.4            33.3 
   Other accrued liabilities                            100.8            92.0 
                                                      -------         -------
      Total Current Liabilities                         427.2           335.9 

Long-Term Debt                                          466.5           319.4 
Postemployment Benefits                                 206.5           199.8 
Other Accrued Liabilities                                52.0            43.8 
                                                      -------         -------
      Total Liabilities                               1,152.2           898.9 

Shareholders' Equity:
   Series D preferred stock                              76.6            76.6 
   Series C ESOP preferred stock                         59.0            59.1 
   Unearned ESOP compensation                           (37.1)          (39.8)
   Common stock                                         175.0           174.9 
   Additional paid-in capital                           279.3           277.8 
   Retained earnings                                    100.6            82.0 
   Currency translation and other                       (32.1)          (33.4)
                                                      -------         -------
      Total Shareholders' Equity                        621.3           597.2 
                                                      -------         -------

      Total Liabilities and Shareholders' Equity     $1,773.5        $1,496.1
                                                      -------         -------
                                                      -------         -------


See accompanying notes.

</TABLE>


<PAGE> 4

<TABLE>

<CAPTION>

FEDERAL-MOGUL CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)



                                                            Nine Months Ended
                                                              September 30,
                                                             1995        1994
                                                           --------    --------
                                                           (Millions of Dollars)

<S>                                                         <C>        <C>
Cash Provided From (Used By) Operating Activities
   Net earnings                                             $ 39.4     $ 51.5
   Adjustments to reconcile net earnings to net cash
      provided from (used by) operating activities
         Depreciation and amortization                        45.9       40.9
         Gain on sale of business investment                  (7.8)         -
         Restructuring charge                                  7.8          -
         Deferred income taxes                                  .1       (7.5)
         Postemployment benefits other than pensions           2.3        4.9
         Increase in accounts receivable                     (41.5)     (73.1)
         Increase in inventories, 
            prepaid expenses and other                       (80.8)     (13.5)
         Increase (decrease) in other current liabilities     (1.1)      25.8
         Payments against restructuring reserves              (6.7)      (9.1)
                                                             -----      -----
      Net Cash Provided From (Used By) Operating Activities  (42.4)      19.9

Cash Provided From (Used By) Investing Activities
   Expenditures for property, plant and equipment            (56.6)     (48.1)
   Payments for rationalization of acquired businesses        (5.9)     (22.7)
   Proceeds from sale of business investment                  28.0          -
   Purchase of business investments                          (63.6)         -
   Other                                                         -        3.2
                                                             -----      -----
      Net Cash Used By Investing Activities                  (98.1)     (67.6)

Cash Provided From (Used By) Financing Activities
   Proceeds from issuance of common stock                       .2      197.0
   Expenditures for purchase of common stock                  (9.0)         -
   Net increase (decrease) in debt                           166.1     (154.5)
   Dividends                                                 (19.7)     (19.7)
   Other                                                        .1         .5
                                                             -----      -----
      Net Cash Provided From Financing Activities            137.7       23.3
                                                             -----      -----

      Decrease in Cash and Equivalents                        (2.8)     (24.4)

Cash and Equivalents at Beginning of Period                   25.0       33.8
                                                             -----      -----

      Cash and Equivalents at End of Period                 $ 22.2     $  9.4 
                                                             -----      -----
                                                             -----      -----


See accompanying notes.

</TABLE>


<PAGE> 5


FEDERAL-MOGUL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 1995


1.  BASIS OF PRESENTATION

The accompanying unaudited condensed 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  
and nine-month periods ended September 30, 1995 are not necessarily indicative 
of the results that may be expected for the year ended December 31, 1995.  
For further information, refer to the consolidated financial statements and 
footnotes thereto included in the Company's annual report on Form 10-K for 
the year ended December 31, 1994.

Certain items in the prior period financial statements have been reclassified 
to conform with the presentation used in 1995.


2.   SALE OF PFPD

On April 26, 1995, the Company completed the previously announced sale of the 
operations and substantially all of the operating assets of its Precision 
Forged Products Division to Borg-Warner Automotive, Inc. (Borg-Warner) in a 
transaction valued at approximately $45 million.  The Company received 
$28 million in cash, retained the division's customer receivables, and 
recognized a pretax gain of $7.8 million.  Additionally, Borg Warner assumed 
certain operating liabilities.  The results of operations of the Precision 
Forged Products Division have been included in the Company's consolidated 
statement of earnings through the date of sale.    


3.   PURCHASES OF BUSINESS INVESTMENTS 

On September 30, 1995, the Company completed its acquisition of the 
Centropiezas group, one of Puerto Rico's largest retailers of automotive 
aftermarket parts.  The acquisition has been accounted for as a purchase and, 
accordingly, the purchase price was allocated to the acquired assets and 
assumed liabilities based on their estimated fair values as of the acquisition 
date.  Annual sales of Centropiezas are approximately $40 million.  Results 
of operations of Centropiezas will be reflected in the consolidated statement 
of earnings beginning October 1, 1995.  

On September 25, 1995, the Company acquired Cardiff, Wales-based Seal 
Technology Systems Ltd. (STS), a leading designer and manufacturer of a 
specialized range of seals and gaskets for the automotive sector and other 
industrial markets.  The acquisition has been accounted for as a purchase 
and, accordingly, the purchase price was allocated to the acquired assets 
and assumed liabilities based on their estimated fair values as of the 
acquisition date.  Annual sales of STS are approximately $15 million.  
Results of operations of STS will be reflected in the consolidated statement 
of earnings beginning October 1, 1995.




<PAGE> 6


On June 28, 1995, the Company completed its acquisition of Bertolotti Pietro 
e Figli S.r.l. (Bertolotti), a distributor of premium brand European auto and 
truck parts throughout Italy.  The acquisition has been accounted for as a 
purchase and, accordingly, the purchase price was allocated to the acquired 
assets and assumed liabilities based on their estimated fair values as of the 
acquisition date.  Annual sales of Bertolotti are approximately $60 million.  
The consolidated statement of earnings includes the results of operations of 
Bertolotti from July 1, 1995.


4.   RESTRUCTURING CHARGE

During the second quarter of 1995, the Company recorded a restructuring charge 
of $7.8 million applicable to employee termination payments, closed operations, 
lease termination costs and other write-downs of assets.  The charge is 
comprised of $4.9 million to pay terminated employees primarily in Argentina, 
the United States and Europe, $1.7 million to write down impaired assets in 
Italy to their net realizable value, and $1.2 million for location closings 
and lease terminations.


5.   EARNINGS PER COMMON SHARE

The computation of primary earnings per share is based on the weighted average 
number of outstanding common shares during the period plus, when their effect 
is dilutive, common stock equivalents consisting of certain shares subject to 
stock options.  Fully diluted earnings per share additionally assumes the 
conversion of outstanding Series C ESOP and Series D preferred stock and the 
contingent issuance of common stock to satisfy the Series C ESOP preferred 
stock redemption price guarantee.  The number of contingent shares used in 
the fully diluted calculation is based on the common stock market price on 
September 30, 1995, and the number of preferred shares held by the Employee 
Stock Ownership Plan (ESOP) that were allocated to participants' accounts as 
of September 30 of each of the respective years. 

The primary weighted average number of common and equivalent shares outstanding 
(in thousands) was 35,043 and 34,975 for the three and nine-month periods 
ended September 30, 1995, and 36,000 and 35,166 for the three and nine-month 
periods ended September 30, 1994.  The fully diluted weighted average number 
of common and equivalent shares outstanding (in thousands) was 41,894 and 
41,844  for the three and nine-month periods ended September 30, 1995, and 
42,805 and 41,983 for the three and nine-month periods ended September 30, 
1994, respectively.  

Net earnings used in the computations of primary earnings per share are reduced 
by preferred stock dividend requirements.  Net earnings used in the computation 
of fully diluted earnings per share are reduced by amounts representing the 
additional after-tax contribution that would be necessary to meet ESOP debt 
service requirements under an assumed conversion of the Series C ESOP preferred 
stock.



<PAGE> 7


Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations


THREE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED WITH THREE MONTHS ENDED 
SEPTEMBER 30, 1994

Third quarter 1995 sales increased by 7.8 percent to $480.2 million from 
$445.3 million for the third quarter of 1994, with most of the increase 
occurring in the international replacement market.  The international 
replacement business achieved sales of $140.3 million, an increase of 
$56.0 million over the third quarter of 1994.  This increase is largely 
attributable to the acquisitions of Varex Corporation in South Africa and 
Bertolotti in Italy.  Excluding the acquisitions and the impact of the peso 
devaluation in Mexico, international replacement sales increased 15.3 percent 
over the third quarter of 1994.  North American replacement sales decreased 
1.9 percent primarily due to overall industry softness, particularly along 
the Mexican border, and continued pressure on engine parts sales due to 
brand consolidation at customer locations.  North American original equipment 
sales decreased 20.7 percent due primarily to the sale of the Company's 
Precision Forged Products Division (PFPD).  Excluding the operations of PFPD, 
North American original equipment sales decreased 8.1 percent.  European 
original equipment sales advanced 15.8 percent as a result of market 
penetration of engine bearings and favorable currency translation.  Excluding 
the impact of exchange rates, European original equipment sales increased 
6.8 percent.

The Company's operating earnings decreased to $28.7 million from $29.6 million 
for the third quarter of 1994 due primarily to a change in the sales mix as 
described above.  

Pretax earnings decreased to $17.7 million from $26.0 million for the third 
quarter of 1994.  The decrease in pretax earnings is attributable to the 
decrease in operating earnings and additional interest expense due to higher 
levels of debt incurred to finance the Varex and Bertolotti acquisitions, a  
stock repurchase program completed in January 1995 and increased levels of 
working capital.  Net earnings decreased to $11.0 million or $.25 per common 
share on a fully diluted basis for the third quarter of 1995 compared to net 
earnings of $16.1 million or $.37 per common share for the third quarter of 
1994.  

  



<PAGE> 8


NINE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED WITH NINE MONTHS ENDED 
SEPTEMBER 30, 1994 

Sales for the nine-month period ended September 30, 1995 increased by 
9.4 percent to $1,510.8 million from $1,380.4 million for the nine-month 
period ended September 30, 1994.  Most of this increase is in the international 
replacement market.  The increase in international replacement sales of 
$138.0 million over the nine-month period ended September 30, 1994 is largely 
attributable to the acquisitions of Varex Corporation in South Africa and 
Bertolotti in Italy.  Excluding the acquisitions, international replacement 
sales increased 11.5 percent.  North American replacement sales decreased 
3.1 percent.  Of the Company's five major product segments in the North 
American replacement market, engine parts account for a majority of the sales 
decline.  Engine part sales were negatively impacted primarily by a conscious 
reduction in engine part inventories at the customer level and brand 
consolidation at customer locations.  Worldwide sales of original equipment 
products increased 2.1 percent.  North American original equipment sales 
decreased 7.2 percent, due primarily to the sale of PFPD.  Excluding the 
operations of PFPD, sales decreased 2.0 percent.  European original equipment 
sales increased 30.5 percent as a result of market penetration of engine 
bearings and favorable currency translation.  Excluding the impact of exchange 
rates, European original equipment sales increased 15.3 percent. 

The Company's operating earnings decreased to $96.7 million from $101.5 million 
for the nine-month period ended September 30, 1994 due primarily to a change 
in the sales mix as described above.

Pretax earnings decreased to $63.2 million from $83.1 million for the 
nine-month period ended September 30, 1994.  The decrease in pretax earnings 
is attributable to the decrease in operating earnings and additional interest 
expense due to higher levels of debt incurred to finance the Varex and 
Bertolotti acquisitions, a stock repurchase program completed in January 
1995 and increased levels of working capital.  In addition, amortization 
expense increased $1.7 million due primarily to the acquisitions of Varex 
and Bertolotti.  Net earnings decreased to $39.4 million or $.91 per common 
share on a fully diluted basis for the nine-month period ended September 30, 
1995 compared to net earnings of $51.5 million or $1.19 per common share for 
the nine-month period ended September 30, 1994.



<PAGE> 9


LIQUIDITY AND CAPITAL RESOURCES

Working capital was impacted by an increase of $80.8 million in inventories, 
prepaid expenses and other during the nine-month period ended September 30, 
1995 compared to an increase of $13.5 million during the nine-month period 
ended September 30, 1994.  This increase is due primarily to an inventory 
build which enhanced product availability at various locations throughout 
the world.  The Company expects that available cash and existing short-term 
lines of credit will be sufficient to meet its normal operating requirements.

Net cash used for investing activities consists primarily of capital 
expenditures for property, plant and equipment to implement process 
improvements and new product introductions.   In both periods, the Company 
incurred payments for the rationalization of acquired businesses.  These 
payments were $16.8 million less during the nine-month period ended 
September 30, 1995 than during the nine-month period ended September 30, 
1994 as integrations are near completion.  The company received $28.0 million 
from the sale of PFPD during the nine-month period ended September 30, 1995.  

Net cash provided from financing activities reflects an increase in both 
long and short-term debt.  These borrowings were used to finance the Varex, 
Bertolotti, Centropiezas and STS acquisitions, repurchase common stock and 
fund increased levels of working capital.  In February 1994, the Company 
issued 5.75 million shares of common stock in a public offering which 
generated net proceeds of $191 million.  The proceeds were used to repay 
outstanding debt resulting from the acquisition of the Sealed Power 
Replacement business in October 1993.




<PAGE> 10

PART II - OTHER INFORMATION
- ---------------------------

Item 1.  Legal Proceedings
         -----------------

         On August 30, 1995, Zeller Corporation, an auto parts supplier, filed 
         a lawsuit against the Company and Neapco, Inc. in the United States 
         District Court for the Northern District of Ohio, Western Division, 
         seeking damages for alleged violations of federal antitrust laws and 
         certain state laws.  The Company believes the claims asserted are 
         without merit and is defending the lawsuit vigorously.  After 
         consulting with counsel for the Company, management believes that 
         this matter will not have a material effect on the Company's 
         consolidated financial statements.


Item 6.  Exhibits and Reports on Form 8-K
         --------------------------------

         (a)  Exhibits:

              11.1        Statement Re Computation of Per Share Earnings for 
                          the three months ended September 30, 1995 (filed with
                          this report). 

              11.2        Statement Re Computation of Per Share Earnings for
                          the nine months ended September 30, 1995 (filed with 
                          this report).

              The Company will furnish upon request any exhibit described above
              upon payment of the Company's reasonable expenses for furnishing 
              such exhibit.

         (b)  Reports on Form 8-K:

              No reports on Form 8-K were filed during the quarter ended 
              September 30, 1995.  




                                  SIGNATURE




    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.



                             FEDERAL-MOGUL CORPORATION



                   By:           (Michael J. Viola)
                       ----------------------------------------
                                  Michael J. Viola
                       Vice President, Controller and Treasurer
                               Chief Accounting Officer




Dated:  November 9, 1995


<PAGE> 1

<TABLE>

EXHIBIT 11.1 - STATEMENT RE COMPUTATION OF PER SHARE EARNINGS 

<CAPTION>

FEDERAL-MOGUL CORPORATION AND SUBSIDIARIES



        FOR THE THREE MONTHS ENDED                  PRIMARY         FULLY DILUTED
                                                 --------------    --------------- 
              SEPTEMBER 30                        1995    1994      1995     1994
- ------------------------------------------       ------  ------    ------   ------

<S>
EARNINGS:  (In Millions)
                                                 <C>     <C>       <C>     <C>
  Net earnings                                   $ 11.0  $ 16.1    $ 11.0   $ 16.1 
  Series C preferred dividend requirements          (.6)    (.7)
  Series D preferred dividend requirements         (1.6)   (1.6)
  Additional required ESOP contribution <F1>                          (.5)     (.5)
                                                  -----   -----     -----    -----

  Net earnings available for common 
    and equivalent shares                        $  8.8  $ 13.8    $ 10.5   $ 15.6 
                                                  -----   -----     -----    -----
                                                  -----   -----     -----    -----


WEIGHTED AVERAGE SHARES:  (In Millions) 

  Common shares outstanding                        35.0    35.6      35.0     35.6
  Dilutive stock options outstanding                         .4                 .4
  Conversion of Series C preferred stock <F3>                         1.9      1.9
  Contingent issuance of common stock to
    satisfy the redemption price guarantee <F2><F4>                    .6       .5
  Conversion of Series D preferred stock <F3>                         4.4      4.4
                                                  -----   -----     -----    -----

  Common and equivalent shares outstanding         35.0    36.0      41.9     42.8
                                                  -----   -----     -----    -----
                                                  -----   -----     -----    -----


PER COMMON AND EQUIVALENT SHARE:

   Net earnings                                  $  .25  $  .38    $  .25   $  .37
                                                  -----   -----     -----    -----
                                                  -----   -----     -----    -----
</TABLE>

[FN]
<F1> Amount represents the additional after-tax contribution that would be 
     necessary to meet the ESOP debt service requirements under an assumed 
     conversion of the Series C preferred stock.

<F2> Calculations consider the September 30, 1995 common stock market price in 
     accordance with Emerging Issues Task Force Abstract No. 89-12.

<F3> Amount represents the weighted average number of common shares issued 
     assuming conversion of preferred stock outstanding.

<F4> Amount represents the additional number of common shares that would be 
     issued in order to satisfy the Series C preferred stock redemption price 
     guarantee.  This calculation considers only the number of preferred shares
     held by the ESOP that have been allocated to participants' accounts as of 
     September 30 of the respective year.


<PAGE> 1

<TABLE>

EXHIBIT 11.2 - STATEMENT RE COMPUTATION OF PER SHARE EARNINGS 

<CAPTION>

FEDERAL-MOGUL CORPORATION AND SUBSIDIARIES


        FOR THE NINE MONTHS ENDED                   PRIMARY         FULLY DILUTED
                                                 --------------    --------------- 
              SEPTEMBER 30                        1995    1994      1995     1994
- ------------------------------------------       ------  ------    ------   ------

<S>
EARNINGS:  (In Millions)
                                                 <C>     <C>       <C>     <C>
  Net earnings                                   $ 39.4  $ 51.5    $ 39.4   $ 51.5 
  Series C preferred dividend requirements         (1.9)   (2.2)
  Series D preferred dividend requirements         (4.7)   (4.7)
  Additional required ESOP contribution <F1>                         (1.5)    (1.6)
                                                  -----   -----     -----    -----

  Net earnings available for common 
    and equivalent shares                        $ 32.8  $ 44.6    $ 37.9   $ 49.9 
                                                  -----   -----     -----    -----
                                                  -----   -----     -----    -----


WEIGHTED AVERAGE SHARES:  (In Millions) 

  Common shares outstanding                        35.0    34.6      35.0     34.6
  Dilutive stock options outstanding                         .6                 .6
  Conversion of Series C preferred stock <F3>                         1.9      1.9
  Contingent issuance of common stock to
    satisfy the redemption price guarantee <F2><F4>                    .6       .5
  Conversion of Series D preferred stock <F3>                         4.4      4.4
                                                  -----   -----     -----    -----

  Common and equivalent shares outstanding         35.0    35.2      41.9     42.0
                                                  -----   -----     -----    -----
                                                  -----   -----     -----    -----


PER COMMON AND EQUIVALENT SHARE:

   Net earnings                                  $  .94  $ 1.27    $  .91   $ 1.19
                                                  -----   -----     -----    -----
                                                  -----   -----     -----    -----
</TABLE>

[FN]
<F1> Amount represents the additional after-tax contribution that would be 
     necessary to meet the ESOP debt service requirements under an assumed 
     conversion of the Series C preferred stock.

<F2> Calculations consider the September 30, 1995 common stock market price in 
     accordance with Emerging Issues Task Force Abstract No. 89-12.

<F3> Amount represents the weighted average number of common shares issued 
     assuming conversion of preferred stock outstanding.

<F4> Amount represents the additional number of common shares that would be 
     issued in order to satisfy the Series C preferred stock redemption price 
     guarantee.  This calculation considers only the number of preferred shares
     held by the ESOP that have been allocated to participants' accounts as of 
     September 30 of the respective year.


<TABLE> <S> <C>


<ARTICLE>      5
<MULTIPLIER>   1,000
       
<CAPTION>
<S>                                    <C>
<PERIOD-TYPE>                           9-MOS
<FISCAL-YEAR-END>                                     DEC-31-1995
<PERIOD-END>                                          SEP-30-1995
<CASH>                                                     22,200
<SECURITIES>                                                    0
<RECEIVABLES>                                             356,900
<ALLOWANCES>                                               15,300
<INVENTORY>                                               491,900
<CURRENT-ASSETS>                                          903,900
<PP&E>                                                    695,600
<DEPRECIATION>                                            236,600
<TOTAL-ASSETS>                                          1,773,500
<CURRENT-LIABILITIES>                                     427,200
<BONDS>                                                   466,500
<COMMON>                                                  175,000
                                           0
                                               135,600
<OTHER-SE>                                                310,700
<TOTAL-LIABILITY-AND-EQUITY>                            1,773,500
<SALES>                                                 1,510,800
<TOTAL-REVENUES>                                        1,510,800
<CGS>                                                   1,776,600
<TOTAL-COSTS>                                             237,500
<OTHER-EXPENSES>                                            8,700
<LOSS-PROVISION>                                                0
<INTEREST-EXPENSE>                                         26,200
<INCOME-PRETAX>                                            63,200
<INCOME-TAX>                                               23,800
<INCOME-CONTINUING>                                        39,400
<DISCONTINUED>                                                  0
<EXTRAORDINARY>                                                 0
<CHANGES>                                                       0
<NET-INCOME>                                               39,400
<EPS-PRIMARY>                                                 .94
<EPS-DILUTED>                                                 .91

        

</TABLE>


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