SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
/x/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
/ / 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 1-4710
WHITMAN CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 36-6076573
- ------------------------------- ---------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
3501 Algonquin Road, Rolling Meadows, Illinois 60008
- ---------------------------------------------- -------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (708) 818-5000
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 October 31, 1995, the Registrant had 105,150,156 outstanding shares
(excluding treasury shares) of common stock, no par value, the Registrant's
only class of common stock.
CONTENTS
PART I FINANCIAL INFORMATION
Item 1 Financial Statements
Condensed Consolidated Statements of Income
Condensed Consolidated Balance Sheets
Condensed Consolidated Statements of Cash Flows
Notes to Condensed Consolidated Financial Statements
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
SIGNATURE
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Quarter Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
1995 1994 1995 1994
-------- -------- -------- --------
(in millions, except per-share data)
Sales and Revenues $ 827.1 $ 741.3 $2,156.2 $1,961.7
Cost of Goods Sold 535.1 472.0 1,389.2 1,250.7
-------- -------- -------- --------
Gross Profit 292.0 269.3 767.0 711.0
Selling, General and Administrative
Expenses 171.0 156.5 493.2 452.8
Amortization Expense 4.9 4.4 13.8 13.1
-------- -------- -------- --------
Operating Income 116.1 108.4 260.0 245.1
Interest Expense (20.2) (16.7) (56.7) (53.5)
Interest Income 1.5 1.5 4.4 4.8
Other Expense, Net (4.6) (5.3) (11.6) (16.8)
Unrealized Investment Loss -- (24.2) -- (24.2)
-------- -------- -------- --------
Income Before Income Taxes 92.8 63.7 196.1 155.4
Income Tax Provision 38.6 28.1 81.7 66.6
-------- -------- -------- --------
Income Before Minority Interest 54.2 35.6 114.4 88.8
Minority Interest 6.7 6.6 14.9 14.2
-------- -------- -------- --------
Net Income $ 47.5 $ 29.0 $ 99.5 $ 74.6
======== ======== ======== ========
Average Number of Common Shares
Outstanding 106.4 106.3 106.1 106.2
======== ======== ======== ========
Net Income per Common Share $ 0.45 $ 0.27 $ 0.94 $ 0.70
======== ======== ======== ========
Cash Dividends per Common Share $ 0.095 $ 0.085 $ 0.275 $ 0.245
======== ======== ======== ========
See accompanying notes to condensed consolidated financial statements.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, December 31,
1995 1994
------------ ------------
(in millions)
ASSETS:
Current Assets:
Cash and Cash Equivalents $ 83.5 $ 71.3
Receivables 392.6 362.5
Inventories 284.9 233.6
Other Current Assets 58.8 40.3
--------- ---------
Total Current Assets 819.8 707.7
--------- ---------
Investments 237.0 222.6
Property (at Cost) 1,328.8 1,205.2
Accumulated Depreciation and Amortization (643.8) (591.4)
--------- ---------
Net Property 685.0 613.8
--------- ---------
Intangible Assets 570.6 524.3
Other Assets 76.5 67.0
--------- ---------
Total Assets $ 2,388.9 $ 2,135.4
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current Liabilities:
Short-Term Debt, Including Current Portion
of Long-Term Debt $ 91.2 $ 90.0
Accounts and Dividends Payable 281.4 238.7
Other Current Liabilities 157.9 154.4
--------- ---------
Total Current Liabilities 530.5 483.1
--------- ---------
Long-Term Debt 849.7 723.0
Deferred Income Taxes 22.6 15.6
Other Liabilities 157.9 154.9
Minority Interest 222.2 206.2
Shareholders' Equity:
Common Stock (No par, 250.0 million shares
authorized; 105.0 million shares
outstanding at September 30, 1995 and
105.0 million shares outstanding at
December 31, 1994) 422.6 413.2
Retained Income 311.4 239.9
Cumulative Translation Adjustment (72.5) (51.8)
Unrealized Investment Gain 9.4 1.3
Treasury Common Stock (64.9) (50.0)
--------- ---------
Total Shareholders' Equity 606.0 552.6
--------- ---------
Total Liabilities and Shareholders' Equity $ 2,388.9 $ 2,135.4
========= =========
See accompanying notes to condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30,
-----------------
1995 1994
------- -------
(in millions)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 99.5 $ 74.6
Adjustments to Reconcile to Net Cash Provided by
Operating Activities:
Depreciation and Amortization 81.1 74.0
Unrealized Investment Loss -- 24.2
Other 10.0 16.3
Changes in Assets and Liabilities, Net of Acquisitions:
Increase in Receivables (33.6) (12.8)
Increase in Inventories (52.4) (22.0)
Increase in Payables 54.4 5.0
Net Change in Other Assets and Liabilities (27.1) (25.7)
------- -------
Net Cash Provided by Continuing Operations 131.9 133.6
Net Cash Used in Discontinued Operations (12.4) (2.4)
------- -------
Net Cash Provided by Operating Activities 119.5 131.2
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Investments, Net (126.5) (76.4)
Acquisitions and Joint Ventures (70.5) --
Purchase of Investments (183.9) (111.4)
Proceeds from Sale of Investments 182.9 115.0
------- -------
Net Cash Used in Investing Activities (198.0) (72.8)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Issuance of Long-Term Debt 284.6 186.4
Repayment of Long-Term Debt (150.3) (168.4)
Net Repayment of Bank Lines of Credit and
Commercial Paper (7.8) (36.1)
Increase in Current Debt (0.3) --
Common Dividends (28.8) (25.9)
Treasury Stock Purchases (15.0) (35.1)
Issuance of Common Stock 10.3 5.6
------- -------
Net Cash Provided by (Used in) Financing Activities 92.7 (73.5)
------- -------
Effect of Exchange Rate Changes on Cash and Cash
Equivalents (2.0) (0.4)
------- -------
Change in Cash and Cash Equivalents 12.2 (15.5)
Cash and Cash Equivalents at January 1 71.3 93.0
------- -------
Cash and Cash Equivalents at September 30 $ 83.5 $ 77.5
======= =======
See accompanying notes to condensed consolidated financial statements.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. The condensed consolidated financial statements included herein have
been prepared by the Registrant, without audit. Certain information
and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to the rules and regulations
of the Securities and Exchange Commission, although the Registrant
believes that the disclosures made are adequate to make the
information presented not misleading. It is suggested that these
condensed consolidated financial statements be read in conjunction
with the financial statements and notes thereto included in the
Registrant s Annual Report on Form 10-K for the year ended December
31, 1994. In the opinion of management, the information furnished
herein reflects all adjustments (consisting only of normal recurring
adjustments) necessary for a fair statement of results for the interim
periods presented.
2. In the third quarter of 1995, the Registrant's subsidiary, Pepsi
General, acquired the assets of a Pepsi-Cola franchise in Cedar
Rapids, Iowa. The acquisition was accounted for as a purchase, and
the operating results include this acquisition from the date of
purchase. The effects of this acquisition, had it been acquired as of
January 1, 1995, would not have been significant to operating results.
3. At the end of the third quarter of 1994, the Registrant adjusted its
investment in Northfield Laboratories Inc. ("Northfield") to reflect
the then current market value. The market value of the Northfield
investment, based upon quoted market prices at that time, was lower
than the purchase cost by $24.2 million. This unrealized loss, after
reflecting deferred tax benefits of $8.7 million, resulted in a non-
cash charge to income of $15.5 million, or $0.15 per share, in the
third quarter and nine months ended September 30, 1994.
4. During the first quarter of 1994, the Registrant s subsidiary, Pepsi
General, acquired a Pepsi-Cola franchise in Waterloo, Iowa, from
Midland Bottling Co. ("Midland Bottling"), a subsidiary of PepsiCo,
Inc. The acquisition was made through a tax-free merger in which
Pepsi General issued 2,025 shares of its Preferred Stock, Series A, to
Midland Bottling. The effects of this acquisition, had it been
acquired as of January 1, 1994, would not have been significant to
operating results.
5. Net cash provided by operating activities reflected cash payments or
receipts for interest and income taxes as follows:
Nine Months Ended
September 30,
------------------
1995 1994
-------- --------
(in millions)
Interest Paid $ 68.1 $ 49.8
Interest Received 4.6 4.9
Income Taxes Paid 66.9 72.9
6. As of September 30, 1995, the components of inventory were
approximately: raw materials and supplies -- 32.2 percent; work in
process -- 18.3 percent; and finished goods -- 49.5 percent.
Item 2. Management s Discussion and Analysis of Financial Condition and
Results of Operations.
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1995, the Registrant had cash and cash equivalents of
$83.5 million, compared with $71.3 million at December 31, 1994. The
increase in cash during the first nine months of 1995 principally resulted
from cash from operations and the issuance of long-term debt, partially
offset by the repayment of debt, capital expenditures, acquisitions of
companies, investments in joint ventures, dividends, and treasury stock
purchases.
Cash provided from operations amounted to $119.5 million in the first
nine months of 1995, compared with $131.2 million in the first nine months
of 1994. The decrease of $11.7 million principally resulted from
significantly higher inventory levels (reflecting, among other factors,
higher volumes, higher aluminum can costs, and acquisitions) and higher
receivable balances (primarily due to higher sales), partially offset by
higher payable balances which reflects, in part, higher inventory levels.
Cash provided from operations together with cash from the issuance of long-
term debt was used primarily for debt repayment, capital investments,
acquisitions and joint ventures, dividends, and treasury stock purchases.
Cash used in investing activities more than doubled in the first nine
months of 1995 to $198.0 million, compared with the first nine months of
1994. Net capital investments increased $50.1 million to $126.5 million,
with the increase reflecting, among other factors, spending for Pepsi
General's new distribution facilities in Poland. In addition, the
Registrant invested $70.5 million in acquisitions and joint ventures,
primarily in a Pepsi-Cola franchise in Cedar Rapids, Iowa, as well as
additional investments in a joint venture Pepsi-Cola bottling facility in
Poland, the acquisition of a Hussmann equipment distributor in Chile, and
the purchase of the remaining 50% interest in a refrigeration manufacturer
and distributor in the U.K. For the first nine months of 1995, proceeds
from the sale of investments of $182.9 million were used primarily to
purchase new investments of $183.9 million. The increase over 1994
principally reflects the timing of investment maturities.
In the first nine months of 1995, the Registrant issued debt totaling
$287.4 million (yielding net proceeds of $284.6 million), primarily
consisting of $100.0 million of twelve year notes, $50.5 million of two
year notes, $30.0 million of five year notes and $100.0 million of twenty
year notes with interest rates of 8.3 percent, 8.1 percent, 6.2 percent and
7.6 percent, respectively. The proceeds from the issuance of this long-
term debt were used primarily to repay long-term debt, commercial paper and
bank credit lines totaling $158.1 million, and for acquisitions and capital
investments. The Registrant's total debt increased $127.9 million from
December 31, 1994 to $940.9 million at September 30, 1995.
The Registrant had contractual bank lines of credit of $300.0 million
at September 30, 1995, unchanged from December 31, 1994. The Registrant
also maintains a $200.0 million commercial paper program. Borrowings under
these programs were $34.7 million and $42.5 million at September 30, 1995
and December 31, 1994, respectively.
RESULTS OF OPERATIONS
1995 THIRD QUARTER COMPARED WITH 1994 THIRD QUARTER
Sales and revenues increased 11.6 percent to $827.1 million in the
third quarter of 1995 with revenue increases being reported by each of the
Registrant's three major subsidiaries. Sales for the Registrant's three
major subsidiaries are summarized below:
Quarter Ended
September 30,
----------------- %
1995 1994 Change
------- ------- -------
(in millions)
Pepsi General $ 424.8 $ 353.7 20.1
Midas 160.9 154.5 4.1
Hussmann 241.4 233.1 3.6
------- -------
Total Sales and Revenues $ 827.1 $ 741.3 11.6
======= =======
Pepsi General's revenues increased $71.1 million, and included sales
in Poland of $13.2 million in 1995. The increase in Pepsi General's
revenues also reflected improved product demand in the United States and
higher selling prices. Domestic unit case volume, excluding the recent
acquisition in Cedar Rapids, increased more than 6 percent over the third
quarter of 1994. Midas' revenues increased $6.4 million, chiefly due to
higher retail sales in the United States and higher revenues in France.
Hussmann's revenues increased $8.3 million, resulting from stronger sales
in the United States, as well as from the acquisitions in China, Chile and
the U.K. These improvements were partially offset by lower sales in Mexico
due to the devaluation of the peso and the decline in the Mexican economy.
Gross profit improved 8.4 percent to $292.0 million, primarily due to
the increase in sales. Gross profit margins declined to 35.3 percent from
36.3 percent in 1994, primarily at Pepsi General, reflecting the start-up
costs in Poland as well as higher aluminum can costs in the U.S.
Selling, general and administrative (S,G&A) expenses increased $14.5
million, or 9.3 percent, with the increase reflecting both higher sales
volumes, start-up costs in Poland, as well as inflationary cost increases.
S,G&A expenses represented 20.7 percent of sales in 1995, down 0.4
percentage points from last year. Amortization expense did not change
significantly.
Operating income increased $7.7 million, or 7.1 percent, to $116.1
million with increases at Pepsi General and Midas, partially offset by a
decline at Hussmann. Operating income for each of the Registrant's three
major subsidiaries is summarized below:
Quarter Ended
September 30,
---------------- %
1995 1994 Change
------- ------- -------
(in millions)
Pepsi General $ 66.8 $ 59.2 12.8
Midas 29.5 28.0 5.4
Hussmann 23.9 25.0 (4.4)
------- -------
Subsidiary Operating Income 120.2 112.2 7.1
Corporate Administrative Expenses (4.1) (3.8) 7.9
------- -------
Total Operating Income $ 116.1 $ 108.4 7.1
======= =======
In the third quarter, Pepsi General had record operating earnings of
$66.8 million, primarily reflecting the benefits of higher volumes and
prices. Pepsi General's results included $2.9 million in operating losses
from its operations in Poland, compared with operating losses of $0.2
million in the prior year. Excluding the operating losses in Poland, Pepsi
General's operating income increased 17.3 percent. Midas also had record
operating earnings of $29.5 million, up $1.5 million or 5.4 percent,
primarily reflecting the benefits from improved retail sales in the U.S.
and higher revenues in France. Hussmann reported operating earnings of
$23.9 million, down 4.4 percent from last year. The reduction primarily
resulted from lower operating earnings in Mexico, reflecting both the
devaluation of the Mexican peso and the decline in the Mexican economy.
This reduction was offset partially by increased operating earnings in the
U.S. and additional operating earnings from the acquisitions in China,
Chile and the U.K.
Net interest expense increased $3.5 million, primarily due to higher
debt levels. The Registrant's total debt increased $115.8 million over the
period from September 30, 1994 to September 30, 1995, principally resulting
from higher working capital requirements, capital spending, investments in
new companies and joint ventures, and treasury stock purchases.
Other expense declined $0.7 million to $4.6 million in the third
quarter of 1995. The decrease principally reflects a variance in gains and
losses from asset sales. Foreign currency adjustments, included in other
expense, were not significant in either the third quarter of 1995 or 1994.
RESULTS OF OPERATIONS
1995 FIRST NINE MONTHS COMPARED WITH 1994 FIRST NINE MONTHS
Sales and revenues increased 9.9 percent to $2,156.2 million in the
first nine months of 1995 with revenue increases being reported by each of
the Registrant's three major subsidiaries as summarized below:
Nine Months Ended
September 30,
------------------ %
1995 1994 Change
-------- -------- --------
(in millions)
Pepsi General $1,083.7 $ 952.5 13.8
Midas 441.8 411.0 7.5
Hussmann 630.7 598.2 5.4
-------- --------
Total Sales and Revenues $2,156.2 $1,961.7 9.9
======== ========
Pepsi General's revenues increased $131.2 million and included sales
in Poland of $21.8 million in 1995. The increase in Pepsi General's
revenues also reflected the benefits of improved product demand and higher
selling prices. U.S. unit case volume increased 4.5 percent in the first
nine months compared with the corresponding period of 1994. Midas'
revenues increased $30.8 million, chiefly due to higher retail sales in the
United States and higher revenues in France. During the first nine months
of 1995, the number of jobs performed and the average revenue per job at
Midas shops in the U.S. each increased by slightly more than two percent from
the first nine months of 1994. Hussmann's revenues increased $32.5
million, principally from stronger sales volume in the United States, as
well as sales from recent acquisitions in China, Chile, and the U.K.,
partially offset by lower sales in Mexico due to the devaluation of the
peso and the decline in the Mexican economy.
Gross profit increased 7.9 percent to $767.0 million, primarily due to
the increase in sales. Gross profit margins decreased to 35.6 percent from
36.2 percent in 1994, primarily due to Pepsi General's start-up costs in
Poland and increased aluminum can costs in the U.S.
S,G&A expenses increased $40.4 million, or 8.9 percent, with the
increase reflecting both higher sales volume, start-up costs in Poland and
inflationary cost increases. As a percent of sales, S,G&A expenses were
22.9 percent in 1995, down 0.2 percentage points from last year.
Amortization expense did not change significantly.
Operating income increased $14.9 million, or 6.1 percent, to $260.0
million, with increases at Pepsi General and Midas, partially offset by a
decline at Hussmann. Operating income for each of the Registrant's three
major subsidiaries is summarized below:
Nine Months Ended
September 30,
----------------- %
1995 1994 Change
------- ------- --------
(in millions)
Pepsi General $ 156.3 $ 143.7 8.8
Midas 66.8 61.7 8.3
Hussmann 49.7 51.8 (4.1)
------- -------
Subsidiary Operating Income 272.8 257.2 6.1
Corporate Administrative Expenses (12.8) (12.1) 5.8
------- -------
Total Operating Income $ 260.0 $ 245.1 6.1
======= =======
In the first nine months Pepsi General had operating earnings of
$156.3 million, primarily reflecting the benefits of higher volumes and
prices. Pepsi General's results included operating losses of $8.1 million
from its operations in Poland, compared with operating losses of $0.2
million in the prior year. Excluding the operating losses in Poland, Pepsi
General's operating income has improved by 14.2 percent. Midas' operating
earnings of $66.8 million were up $5.1 million, or 8.3 percent, over a year
ago, primarily reflecting higher retail sales in the U.S. and higher
revenues in France. Hussmann reported operating earnings of $49.7 million,
down 4.1 percent from last year. The reduction at Hussmann primarily
resulted from lower operating earnings in Mexico, reflecting both the
devaluation of the peso and the decline in the Mexican economy, which more
than offset improved operating earnings from their U.S. operations and
earnings from recent acquisitions.
Net interest expense increased $3.6 million, primarily due to higher
debt levels. The effects of higher debt levels were partially offset by
the lower interest rates of recent debt issues.
Other expense declined $5.2 million to $11.6 million in the first nine
months of 1995 compared to the first nine months of 1994. The decrease
principally reflects a variance in gains and losses from asset sales.
Foreign currency adjustments, included in other expense, were not
significant in either the first nine months of 1995 or 1994.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
12. Statement of Calculation of Ratio of Earnings to Fixed
Charges.
(b) Reports on Form 8-K.
None filed during the third 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.
WHITMAN CORPORATION
Date: November 13, 1995 By: /s/ FRANK T. WESTOVER
---------------------------------
Frank T. Westover
Senior Vice President and
Controller
(As Chief Accounting Officer and
Duly Authorized Officer of Whitman
Corporation)
EXHIBIT 12
WHITMAN CORPORATION
STATEMENT OF CALCULATION
OF RATIO OF EARNINGS TO FIXED CHARGES
(in Millions, Except Ratios)
Nine
Months Ended
September 30, Years Ended December 31,
------------- ------------------------------------
1995 1994 1994 1993 1992 1991 1990
------ ------ ------ ------ ------ ------ ------
Earnings:
Income from Continuing
Operations before
Taxes $196.1 $155.4 $212.7 $212.2 $170.6 $161.7 $(39.0)
Fixed Charges Excluding
Capitalized Interest 65.4 61.2 82.2 105.9 106.9 138.2 168.1
------ ------ ------ ------ ------ ------ ------
Income as Adjusted $261.5 $216.6 $294.9 $318.1 $277.5 $299.9 $129.1
====== ====== ====== ====== ====== ====== ======
Fixed Charges:
Interest Expense $ 56.7 $ 53.5 $ 71.1 $ 96.2 $ 97.7 $128.6 $158.7
Portion of Rents
Representative of
Interest Factor 8.6 7.6 11.1 9.7 9.2 9.6 9.4
------ ------ ------ ------ ------ ------ ------
Fixed Charges Excluding
Capitalize Interest 65.3 61.1 82.2 105.9 106.9 138.2 168.1
Capitalized Interest 0.1 0.1 0.2 0.2 0.2 0.2 0.3
------ ------ ------ ------ ------ ------ ------
Total Fixed Charges $ 65.4 $ 61.2 $ 82.4 $106.1 $107.1 $138.4 $168.4
====== ====== ====== ====== ====== ====== ======
Ratio of Earnings to
Fixed Charges 4.0x 3.5x 3.6x 3.0x 2.6x 2.2x 0.8x
====== ====== ====== ====== ====== ====== ======
(1)
(1) In 1990, the ratio of earnings to fixed charges was less than
one to one coverage principally as a result of a $170 million
restructuring charge. The dollar amount of fixed charge coverage
deficiency in 1990 was $39.3 million. Excluding the restructuring
charge, the ratio of earnings to fixed charges was 1.8 times in 1990.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000049573
<NAME> WHITMAN CORPORATION
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 83,500
<SECURITIES> 0
<RECEIVABLES> 392,600<F1>
<ALLOWANCES> 6,400
<INVENTORY> 284,900
<CURRENT-ASSETS> 819,800
<PP&E> 1,328,800
<DEPRECIATION> 643,800
<TOTAL-ASSETS> 2,388,900
<CURRENT-LIABILITIES> 530,500
<BONDS> 849,700
<COMMON> 422,600
0
0
<OTHER-SE> 183,400
<TOTAL-LIABILITY-AND-EQUITY> 2,388,900
<SALES> 2,156,200
<TOTAL-REVENUES> 2,156,200
<CGS> 1,389,200
<TOTAL-COSTS> 1,896,200<F2>
<OTHER-EXPENSES> 11,600
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 52,300<F3>
<INCOME-PRETAX> 196,100
<INCOME-TAX> 81,700
<INCOME-CONTINUING> 99,500<F4>
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 99,500
<EPS-PRIMARY> $0.94
<EPS-DILUTED> $0.94
<FN>
<F1>Net of allowance for doubtful accounts of $6,400
<F2>Includes Selling, General and Administrative Expenses, Amortization
Expense and Cost of Goods Sold
<F3>Intesest expense reported is offset by $4,400 of interest income, therefore
gross interest expense equals $56,700
<F4>Income from continuing operations is reported after minority interest of
$14,900
</FN>
</TABLE>
