<PAGE> 1
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 quarter ended March 31, 2000
Commission file number 1-6450
GREAT LAKES CHEMICAL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 95-1765035
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
500 East 96th Street,
Suite 500
Indianapolis, IN 46240
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 317-715-3000
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X
-----
No
-----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report.
One Class - 54,440,921 Shares as of March 31, 2000
<PAGE> 2
Part I - Financial Statements
GREAT LAKES CHEMICAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(millions)
<TABLE>
<CAPTION>
March 31 Dec. 31
2000 1999
---------- ----------
<S> <C> <C>
Assets
Current Assets
Cash and cash equivalents $ 442.9 $ 478.3
Accounts and notes receivable, less allowance of $4.1
and $4.7, respectively 387.6 339.6
Inventories
Finished products 253.9 227.9
Raw materials 55.3 60.1
Supplies 27.1 28.8
---------- ----------
Total inventories 336.3 316.8
Prepaid expenses 28.1 32.8
---------- ----------
Total current assets 1,194.9 1,167.5
---------- ----------
Plant and Equipment 1,364.3 1,357.4
Less allowance for depreciation (609.4) (605.6)
---------- ----------
Net plant and equipment 754.9 751.8
Goodwill 241.6 246.5
Investments in and Advances to Unconsolidated Affiliates 45.9 55.5
Other Assets 48.5 39.7
---------- ----------
$2,285.8 $2,261.0
========== ==========
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 143.4 $ 136.5
Accrued expenses 118.7 123.7
Income taxes payable 66.8 40.5
Dividends payable 4.4 4.5
Notes payable and current portion of long-term debt 4.9 6.0
---------- ----------
Total current liabilities 338.2 311.2
---------- ----------
Long-Term Debt, less Current Portion 871.0 883.4
Other Noncurrent Liabilities 33.5 34.4
Deferred Income Taxes 41.1 37.9
Stockholders' Equity
Common stock, $1 par value, authorized 200 shares,
issued 73.0 and 72.9 shares, respectively 73.0 72.9
Additional paid-in capital 132.7 132.0
Retained earnings 1,793.2 1769.2
Accumulated other comprehensive income (68.9) (56.5)
Less treasury stock, at cost, 18.5 and 18.4 shares, respectively (928.0) (923.5)
---------- ----------
Total stockholders' equity 1,002.0 994.1
---------- ----------
$2,285.8 $2,261.0
========== ==========
</TABLE>
1
<PAGE> 3
GREAT LAKES CHEMICAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(millions, except per share data)
----------------------------------------------------------
Three Months Ended
March 31
--------------------
2000 1999
-------- -------
Net Sales $390.2 $334.2
Operating Expenses
Cost of products sold 278.9 236.4
Selling, general and administrative expenses 64.2 51.5
-------- -------
343.1 287.9
-------- -------
Operating Income 47.1 46.3
Interest and Other Income 12.9 7.7
Interest and Other Expenses 18.9 7.0
-------- -------
Income before Income Taxes 41.1 47.0
Income Taxes 12.7 16.0
-------- -------
Net Income $ 28.4 $ 31.0
======== =======
Earnings per Share:
Basic $ 0.52 $ 0.53
Diluted $ 0.52 $ 0.53
Cash Dividends Declared per Share $ 0.08 $ 0.08
2
<PAGE> 4
GREAT LAKES CHEMICAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(millions)
----------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
March 31
-------------------------
2000 1999
---------- ----------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $28.4 $31.0
Adjustments to reconcile income to net cash provided by operating activities:
Depreciation and amortization 27.5 20.5
Changes in deferred items and other 4.4 (0.3)
---------- ----------
Cash provided by continuing operations excluding changes in working capital 60.3 51.2
Changes in working capital other than debt, net of effect from
business combinations (42.2) (88.9)
Other noncurrent liabilities 0.1 --
---------- ---------
Net Cash Provided (Used) by Operating Activities 18.2 (37.7)
Discontinued Operations:
Change in net assets -- 11.0
---------- ---------
Net Cash Provided (Used) by Operating Activities 18.2 (26.7)
INVESTING ACTIVITIES
Plant and equipment additions (41.7) (28.7)
Business combinations, net of cash acquired -- --
Other 13.3 0.1
---------- ---------
Net Cash Used in Investing Activities (28.4) (28.6)
FINANCING ACTIVITIES
Net borrowings under short-term credit lines (3.8) 1.3
Net decrease in commercial paper and other long-term obligations (12.4) (21.5)
Proceeds from stock options exercised 0.8 1.8
Cash dividends paid (4.4) (4.7)
Repurchase of common stock (7.0) (6.4)
Other 2.6 3.9
---------- --------
Net Cash Used by Financing Activities (24.2) (25.6)
Effect of Exchange Rate Changes on Cash and Cash Equivalents (1.0) (5.2)
---------- ---------
Decrease in Cash and Cash Equivalents (35.4) (86.1)
Cash and Cash Equivalents at Beginning of Year 478.3 411.6
---------- ---------
Cash and Cash Equivalents at End of Period $442.9 $325.5
========== =========
</TABLE>
Parentheses indicate decrease in cash and cash equivalents
3
<PAGE> 5
GREAT LAKES CHEMICAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(millions, except as indicated)
----------------------------------------------------------
NOTE 1: 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 the information and
footnotes necessary for a comprehensive presentation of financial position and
results of operations.
It is management's opinion, however, that all material adjustments (consisting
of normal recurring accruals) have been made which are necessary for a fair
financial statement presentation. The results for the interim period are not
necessarily indicative of the results to be expected for the year.
For further information, refer to the consolidated financial statements and
footnotes included in the Company's Annual Report on Form 10-K for the year
ended December 31, 1999.
NOTE 2: INCOME TAXES
A reconciliation of the U.S. Federal income tax rate to the effective income tax
rate follows:
Three Months Ended March 31
------------------------------
2000 1999
------------- --------------
% %
Statutory U.S. Federal tax rate 35.0 35.0
State income taxes 1.6 2.0
International operations (2.2) (1.1)
Other (3.4) (1.9)
------------- --------------
31.0 34.0
============= ==============
NOTE 3: COMPREHENSIVE INCOME
During the first quarter of 2000 and 1999, comprehensive income was $16.0
million and $19.6 million, respectively.
Three Months Ended
March 31
--------------------------
2000 1999
------------ ------------
Net Income 28.4 31.0
Other comprehensive income (12.4) (11.4)
------------ ------------
Comprehensive Income 16.0 19.6
============ ============
NOTE 4: EARNINGS PER SHARE
The computation of basic and diluted earnings per share is determined by
dividing net income as reported as the numerator, by the number of shares
included in the denominator as follows:
4
<PAGE> 6
Three Months Ended
March 31
--------------------------
2000 1999
------------ ------------
Denominator for basic earnings per share
(weighted-average shares) 54.5 58.4
Effect of dilutive securities 0.1 0.2
------------ ------------
Denominator for diluted earnings per share 54.6 58.6
============ ============
NOTE 5: SEGMENT INFORMATION
The Company is organized into four global business segments: Polymer Additives,
Performance Chemicals, Water Treatment and Energy Services and Products. These
segments are strategic business units that offer products and services that are
intended to satisfy specific customer requirements. The units are organized and
managed to deliver a distinct group of products, technology and services.
The Company evaluates business unit performance and allocates resources based on
operating income which represents net sales less costs of products sold,
selling, administrative and research expenses. Each of the Company's segments
uses bromine as a raw material in their production processes. Bromine is
transferred at cost based on the percentage of production consumed.
Three Months Ended
March 31
----------------------
2000 1999
--------- ---------
Net Sales by Segment to External Customers:
Polymer Additives $ 174.4 $ 141.3
Performance Chemicals 88.0 80.1
Water Treatment 101.3 89.1
Energy Services and Products 26.5 23.8
--------- ---------
Total Sales of Reportable Segments 390.2 334.3
Corporate and Other -- (0.1)
--------- ---------
$ 390.2 $ 334.2
========= =========
Segment Profit:
Polymer Additives $ 17.5 $ 20.3
Performance Chemicals 20.2 19.5
Water Treatment 17.4 13.8
Energy Services and Products 1.2 1.0
--------- ---------
Total Profits of Reportable Segments 56.3 54.6
Corporate and Other (9.2) (8.3)
--------- ---------
Operating Income 47.1 46.3
Interest and Other Income 12.9 7.7
Interest and Other Expense 18.9 7.0
--------- ---------
Income before Income Taxes $ 41.1 $ 47.0
========= =========
March 31 Dec. 31
2000 1999
Significant Changes in Segment Assets: --------- ---------
Water Treatment $ 357.0 $ 303.3
========= =========
5
<PAGE> 7
The change results from the seasonal nature of the recreational water treatment
business.
NOTE 6: COMMITMENTS AND CONTINGENCIES
There have been no significant subsequent developments relating to the
commitments and contingencies reported in the Company's most recent Form 10-K.
6
<PAGE> 8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
FOR THE THREE MONTHS ENDED MARCH 31, 1999
----------------------------------------------------------
This Management's Discussion and Analysis of Results of Operations and Financial
Condition should be read in conjunction with the Company's Consolidated
Financial Statements and Management's Discussion and Analysis contained in the
1999 Annual Report on Form 10-K and the unaudited interim consolidated financial
statements included elsewhere in this report. All references to earnings per
share contained in this report are diluted earnings per share unless otherwise
noted.
The following table sets forth the percentage relationship to net sales of
certain income statement items for the Company's operations:
Three Months Ended
March 31
----------------------
2000 1999
---------- ---------
% %
Net Sales 100.0 100.0
Gross Profit 28.5 29.3
Selling, General and Administrative Expenses 16.5 15.4
---------- ---------
Operating Income 12.0 13.9
Interest and Other Income 3.3 2.3
Interest and Other Expense 4.8 2.1
---------- ---------
Income before Income Taxes 10.5 14.1
Income Taxes 3.3 4.8
---------- ---------
Net Income 7.2 9.3
========== =========
RESULTS OF OPERATIONS
Sales increased to $390.2 million from $334.2 million during the prior year
period primarily due to strong sales volume growth both organic and from
acquisitions in the Water Treatment and Polymer Additives business units. The
volume growth in sales was offset by price pressure in the Polymer Additives
business unit and the effects of a stronger dollar. The effect of competitive
pricing pressure on average selling prices was mostly offset by continued
productivity and Six Sigma initiatives.
Selling, general and administrative expenses increased $12.7 million to $64.2
million due primarily to the PAD and NSC Technologies acquisitions and
depreciation expense related to the Company's new ERP information systems.
Interest and other income increased $5.2 million from $7.7 million during the
prior year period due to higher investment balances, coupled with higher
interest rates, increased earnings of unconsolidated subsidiaries and a gain of
$3.0 on the sale of preferred stock in Huntsman Chemicals.
Interest and other expense increased by $11.9 million to $18.9 million for the
period. This increase was primarily due to higher outstanding debt levels,
primarily related to the debt offering completed in July 1999, and an increase
in amortization expense due to goodwill related to the acquisitions of the
Polymer Additives Division of FMC Corporation (PAD) and NSC Technologies from
Monsanto Corporation (NSCT) and share repurchases.
7
<PAGE> 9
Income taxes were $12.7 million or 31.0% of income before taxes compared to 34%
in the prior year quarter. The lower effective tax rate is primarily due to
structural changes made in the Company's foreign operations that result in a
significantly higher percentage of income in lower tax rate jurisdictions.
Net income was $28.4 million or $0.52 per share in 2000, as compared to $31.0
million or $0.53 per share in 1999.
SEGMENT INFORMATION
Set forth below is a discussion of the operations of the Company's business
segments: Polymer Additives, Performance Chemicals, Water Treatment and Energy
Services and Products. Operating income, which is the income measure the Company
uses to evaluate business segment performance, represents net sales less costs
of products sold, selling, general and administrative expenses. Bromine used by
each of the Company's segments as a raw material in their production processes
is reflected at cost.
POLYMER ADDITIVES
The Polymer Additives business unit is a leading worldwide developer, producer
and marketer of brominated, non-halogen, intumescent and antimony-based flame
retardants and antioxidants, UV absorbers and light stabilizers. Results for the
quarter follow:
2000 1999
Net Sales $ 174.4 $ 141.3
Operating Income $ 17.5 $ 20.3
Net sales were 23.4% higher than the first quarter of 1999 due primarily to
growth in sales volume of No Dust Blends (NDB) products and the addition of
sales related to the PAD acquisition. This sales growth was offset by average
selling price decreases of approximately 9% due to competitive pricing.
Operating income decreased primarily due to the lower selling prices, but this
effect was partially offset by the PAD acquisition, continued strong
productivity and Six Sigma gains.
PERFORMANCE CHEMICALS
The Performance Chemical business unit is a collection of individual businesses
providing products and services that meet highly specific requirements for
pharmaceutical, agrochemical and industrial chemical applications. Results for
the quarter follow:
2000 1999
Net Sales $ 88.0 $ 80.1
Operating Income $ 20.2 $ 19.5
The Performance Chemical business unit achieved 9.9% sales growth due to
continued strong volumes in Fluorines and higher selling prices in Ag Chemicals,
coupled with the NSC acquisition and strong demand at WIL Research Laboratories.
These increases in net sales were partially offset by the reduction in sales
volume for Fine Chemicals. Operating income increased slightly as a result of
the aforementioned strength in Fluorine, Ag Chemicals and Wil Research
Laboratories.
8
<PAGE> 10
WATER TREATMENT
The Water Treatment business unit is the world's leading provider of
recreational water care products to the consumer. In addition, this business
unit is the world's leading provider of bromine-based biocides for industrial
water treatment applications and a leading supplier of corrosion inhibitors,
scale control and desalination products using polymaleate chemistry. Results for
the quarter follow:
2000 1999
Net Sales $ 101.3 $ 89.1
Operating Income $ 17.4 $ 13.8
Water Treatment achieved a 13.7% increase in sales from $89.1 million in the
first quarter of 1999 to $101.3 million in the current period due primarily to
continued market growth and market share growth, coupled with the inclusion of
the Water Treatment portion of the PAD acquisition, which accounted for $9.9
million of the sales increase. Operating income improved $3.6 million from the
same period a year ago due primarily to productivity gains and the PAD
acquisition.
ENERGY SERVICES AND PRODUCTS
The Energy Services and Products business unit provides completion products
including bromine-based clear fluids and services to oil and gas well operators.
Results for the quarter follow:
2000 1999
Net Sales $ 26.5 $ 23.8
Operating Income $ 1.2 $ 1.0
Net sales for the current period increased due to increased drilling activity in
the Gulf of Mexico offset by the sale of the Environmental Services business in
January 1999, which accounted for $1.2 million in revenue in the first quarter
of 1999. Operating income increased $0.2 million from the first quarter of 1999
due primarily to the increase in sales.
FINANCIAL CONDITION AND LIQUIDITY
Inventories were $336.3 million at March 31, 2000, an increase of $19.5 million
from year-end and $49.1 million from a year ago. This increase from year-end is
primarily due to the build-up of inventories in the Water Treatment business
unit due to seasonal requirements. The year over year increase in inventory
resulted from the PAD and NSC Technologies acquisitions.
Primarily as a result of the seasonal increase in sales in the Water Treatment
business unit, trade accounts receivable increased $48.0 million to $387.6
million at March 31, 2000, as compared to December 31, 1999. Days sales
outstanding were 75 days compared to 77 days at year end 1999.
Current liabilities increased $27.0 million from year end to $338.2 million
primarily due to an increase in the accrual for income taxes as a result of the
effective rate increasing from 20.4% at year end to 31.0% during the first
quarter of 2000.
9
<PAGE> 11
Operating activities provided $18.2 million in cash during the quarter due, an
improvement of $55.9 million over first quarter 1999. The improvement was driven
by increased earnings before interest, taxes, depreciation and amortization
(EBITDA), improvements in management of working capital as the seasonal build in
Water Treatment was partially offset by improvements by the other business units
and higher accrued income taxes.
The cash provided by discontinued operations reflects the disposition of the
environmental business in January 1999.
Capital spending during the quarter amounted to $41.7 million. Spending for the
year is expected to be approximately $140 million.
Approximately 200,000 shares were repurchased in the quarter at a cost of $7.0
million.
OTHER MATTERS
Acquisitions
On May 3, 1999, the Company completed the acquisition of NSC Technologies (NSCT)
from Monsanto Corporation for approximately $125 million. NSCT develops,
manufactures and sells chiral pharmaceutical intermediates and select bulk
actives to pharmaceutical companies. Current annual sales are approximately $70
million. The businesses core chiral expertise in unnatural amino acids provides
a broad platform from which it develops novel, high value-added intermediates
and bulk actives for anti-viral, cardiovascular and oncology therapeutic drugs.
NSCT has been included as part of the Performance Chemicals business unit.
On August 2, 1999, the Company completed the acquisition of FMC Corporation's
Process Additives Division (PAD) for $162 million in cash. PAD is a world leader
in the production of phosphate ester flame retardants, flame retardant fluids,
and lubricant additives, as well as a leading supplier of specialty water
treatment chemicals used in industrial applications and desalination. The
transaction broadens the Polymer Additives business unit and more than doubles
the industrial segment of the Water Treatment business unit. The business
employs 500 people and includes operations in Nitro, West Virginia and Trafford
Park (Manchester, England). PAD has been included in the Polymer Additives and
Water Treatment business units.
The acquisitions were funded with available cash and borrowing capacity.
Special Charges
In the fourth quarter of 1999, the Board of Directors took action to further
streamline the Polymer Additives business unit, to provide a more flexible data
processing solution for the Company's manufacturing operations and to write down
certain assets formerly used in the Energy Services and Products' Mexico
environmental business. The plan is intended to increase the Company's focus on
its core specialty chemicals businesses and to position these operations to
achieve higher growth and profitability. These actions were in addition to the
actions approved by the Board of Directors in 1998.
A progression of the reserve balance from December 31, 1999 to March 31, 2000:
Reserve Balance 2000 Reserve Balance
Description at December 31, 1999 Activity at March 31, 2000
10
<PAGE> 12
Severance Costs:
Polymer Additives 1.0 (0.1) 0.9
Corporate 0.9 0.0 0.9
1.9 (0.1) 1.8
Severance costs include the cost of separation payments to certain Polymer
Additives and Corporate employees who have been or will be terminated. These
costs have either been negotiated individually with the employee or based upon
statutory requirements or severance plans. The Company will be eliminating
approximately 65 positions as a result of the 1999 actions. As of December 31,
1999, substantially all personnel involved have been terminated or have been
given specific notice of termination dates. Notification to European employees
has been made through their unions and workers councils. The Polymer Additives
terminations relate to a decision to consolidate research activities in the
United States and Europe into two Technology Centers, one located in West
Lafayette, Indiana, and the other in Bolgiano, Italy. Researchers in West
Lafayette will focus primarily on halogen and non-halogen based flame retardant
and performance additives and fluids technology. Those in Bolgiano will
concentrate on polymer stabilizers. All European Technical Service and
Applications capabilities will be consolidated in a new Customer Technical
Service and Applications Center in Geel, Belgium. European Polymer Additives
customers will receive all the technical service and analytical support they
need from a single location, which is located near 80 percent of the Company's
European customers. The Corporate severance costs relate to information systems
personnel.
The 1998 portion of the repositioning plan affects the Polymer Additives,
Performance Chemicals and Energy Services and Products business units and
includes both domestic and international operations primarily in France, Italy
and the United Kingdom. The plan provides for improving manufacturing
productivity; the closing of production units at four sites; and the
consolidation of United States flame retardant production. Additionally, the
consolidation of sales offices and research and development facilities is
planned. As a result of these actions, approximately 500 positions have been or
will be eliminated.
A progression of the reserve balance from December 31, 1999 to March 31, 2000:
Reserve Balance 2000 Reserve Balance
Description at December 31, 1999 Activity at March 31, 2000
- --------------------------------------------------------------------------------
Severance Costs:
Polymer Additives 8.6 (0.2) 8.4
Performance Chemicals 0.9 (0.6) 0.3
Corporate 1.0 (0.1) 0.9
- --------------------------------------------------------------------------------
Total Severance: 10.5 (0.9) 9.6
Plant Closure and Environmental:
Polymer Additives 2.9 (0.1) 2.8
Performance Chemicals 2.2 (0.1) 2.1
- --------------------------------------------------------------------------------
Total Plant Closure
and Environmental 5.1 (0.2) 4.9
11
<PAGE> 13
Senior Management Transition
Corporate 6.1 (0.9) 5.2
Lease Costs
Energy Services and Products 1.8 (0.8) 1.0
- --------------------------------------------------------------------------------
23.5 (2.8) 20.7
In accordance with a plan approved by the Board of Directors in December 1997,
the Company took a series of actions to restructure its Water Treatment business
and eliminate underperforming assets.
A progression of the reserve balance from December 31, 1999 to March 31, 2000:
Reserve Balance 2000 Reserve Balance
Description at December 31, 1999 Activity at March 31, 2000
- --------------------------------------------------------------------------------
Severance Costs: 1.0 (0.1) 0.9
Other 0.7 -- 0.7
- --------------------------------------------------------------------------------
1.7 (0.1) 1.6
DISPOSITIONS
The Company completed the sale of the environmental services business in January
1999 and the sale of the furfural and derivatives business was completed on June
30, 1999.
In September 1999, the Company announced its intentions to sell approximately
50% of its interest in its Energy Services and Products business (OSCA). OSCA
has been included in continuing operations because the Company will retain its
ability to exert significance influence over OSCA due to its continuing
ownership interest.
FORWARD LOOKING STATEMENT
This report contains forward looking statements involving risks and
uncertainties that affect the Company's operations as discussed in the 1999
Annual Report on Form 10-K filed with the Securities and Exchange Commission.
Accordingly, there is no assurance that the Company's expectations will be
realized.
Part II. - Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits filed as part of the report are listed below:
Exhibits Number
(27) Financial Data Schedule
12
<PAGE> 14
(b) The Company did not file, nor was it required to file, a form 8-K because of
a change in independent auditors or because of any material unusual charges or
credits to income occurring during the quarter for which this report was filed.
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.
Date: May 12, 2000 By: /s/ Kevin J. Mulcrone
---------------- -----------------------------------
Kevin J. Mulcrone
Vice President and Controller
13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET, STATEMENT OF INCOME, AND STATEMENT OF CASHFLOW 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-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 442,900
<SECURITIES> 0
<RECEIVABLES> 387,600
<ALLOWANCES> 4,100
<INVENTORY> 336,300
<CURRENT-ASSETS> 1,194,900
<PP&E> 1,364,300
<DEPRECIATION> 609,400
<TOTAL-ASSETS> 2,285,800
<CURRENT-LIABILITIES> 338,200
<BONDS> 871,000
0
0
<COMMON> 73,000
<OTHER-SE> 928,900
<TOTAL-LIABILITY-AND-EQUITY> 1,001,900
<SALES> 390,200
<TOTAL-REVENUES> 390,200
<CGS> 278,900
<TOTAL-COSTS> 343,100
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,000
<INCOME-PRETAX> 41,100
<INCOME-TAX> 12,700
<INCOME-CONTINUING> 28,400
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 28,400
<EPS-BASIC> 0.52
<EPS-DILUTED> 0.52
</TABLE>
