UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
-----
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1994
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
-----
THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-483
MALLINCKRODT GROUP INC.
(Exact name of Registrant as specified in its charter)
New York 36-1263901
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7733 Forsyth Boulevard
St. Louis, Missouri 63105-1820
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 314-854-5200
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 .
Applicable Only to Registrants Involved in Bankruptcy
Proceedings During the Preceding Five Years:
Indicate by check mark whether the Registrant has filed all
documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes . No .
Applicable Only to Corporate Registrants: Indicate the
number of shares outstanding of each of the Registrant's classes
of common stock, as of the latest practicable date. 76,660,774
shares excluding 10,455,515 treasury shares as of October 31,
1994.
<PAGE>
PART I. FINANCIAL INFORMATION
- -------------------------------
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED).
The accompanying interim condensed consolidated financial
statements of Mallinckrodt Group Inc. (the Company or
Mallinckrodt) do not include all disclosures normally provided in
annual financial statements. These financial statements, which
should be read in conjunction with the consolidated financial
statements contained in Mallinckrodt's 1994 Annual Report to
Shareholders, are unaudited but include all adjustments which
Mallinckrodt's management considers necessary for a fair
presentation. These adjustments consist of normal recurring
accruals except as discussed in Note 1 of the Notes to Condensed
Consolidated Financial Statements. Interim results are not
necessarily indicative of the results for the fiscal year. All
references to years are to fiscal years ended June 30 unless
otherwise stated.
<TABLE>
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In millions except per share amounts)
<CAPTION>
Three months ended
September 30,
1994 1993
- -----------------------------------------------------------------
<S> <C> <C>
Net sales $487.7 $444.9
Operating costs and expenses:
Cost of goods sold 274.7 242.5
Selling, administrative, and
general expenses 129.8 121.6
Research and development expenses 23.2 21.1
Other operating income, net (2.2) (1.2)
------- -------
Total operating costs and expenses 425.5 384.0
------- -------
Operating earnings 62.2 60.9
Equity in pre-tax earnings of
joint venture 6.1 3.8
Interest and other nonoperating
expense, net (.4) (.6)
Interest expense (11.9) (8.6)
------- -------
Earnings from continuing operations
before income taxes 56.0 55.5
Income tax provision 21.3 20.2
------ ------
Earnings from continuing operations 34.7 35.3
Loss from discontinued operations (.8) (.8)
------- -------
Net earnings 33.9 34.5
Preferred stock dividends (.1) (.1)
------- -------
Available for common shareholders $ 33.8 $ 34.4
======= =======
Earnings per common share
Continuing operations $ .45 $ .45
Discontinued operations (.01) (.01)
------- -------
Net earnings $ .44 $ .44
======= =======
(See Notes to Condensed Consolidated Financial Statements on page
5.)
</TABLE>
<PAGE>
<TABLE>
CONDENSED CONSOLIDATED BALANCE SHEET
<CAPTION>
(In millions except share and per share amount)
September 30, June 30,
1994 1994
- -----------------------------------------------------------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 75.7 $ 87.9
Trade receivables, less allowances
of $11.6 at September 30 and $11.1
at June 30 352.4 343.6
Inventories 384.4 376.9
Deferred income taxes 76.1 77.6
Other current assets 48.9 46.0
-------- --------
Total current assets 937.5 932.0
Investments and long-term receivables,
less allowances of $13.0 at
September 30 and $13.1 at June 30 150.3 147.0
Property, plant and equipment 1,444.8 1,396.0
Accumulated depreciation (560.8) (532.8)
--------- ---------
Net property, plant and equipment 884.0 863.2
Intangible assets 498.4 489.3
Deferred income taxes 2.8 2.0
--------- ---------
Total assets $2,473.0 $2,433.5
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 164.6 $ 147.8
Accounts payable 142.8 139.4
Accrued liabilities 338.1 356.0
Income taxes payable 35.0 25.4
Deferred income taxes 2.1 2.1
--------- ---------
Total current liabilities 682.6 670.7
Long-term debt, less current
maturities 513.1 522.0
Deferred income taxes 34.2 36.6
Accrued postretirement benefits 127.5 124.7
Other noncurrent liabilities and
deferred credits 63.4 63.6
--------- ---------
Total liabilities 1,420.8 1,417.6
Shareholders' equity
4 Percent cumulative preferred
stock 11.0 11.0
Common stock, par value $1,
authorized 300,000,000 shares;
issued 87,116,289 shares as of
September 30 and June 30 87.1 87.1
Capital in excess of par value 268.5 268.2
Reinvested earnings 870.6 846.4
Marketable securities valuation
allowance (1.2) (1.4)
Foreign currency translation (17.7) (32.8)
Treasury stock (166.1) (162.6)
--------- ---------
Total shareholders' equity 1,052.2 1,015.9
--------- ---------
Total liabilities and
shareholders' equity $2,473.0 $2,433.5
========= =========
(See Notes to Condensed Consolidated Financial Statements on page
5.)
</TABLE>
<PAGE>
<TABLE>
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
<CAPTION>
(In millions)
Three months ended
September 30,
1994 1993
- -----------------------------------------------------------------
<S> <C> <C>
CASH FLOWS - OPERATING ACTIVITIES
Net earnings $ 33.9 $ 34.5
Adjustments to reconcile net earnings
to net cash provided by operating
activities:
Depreciation and amortization 35.5 23.2
Deferred income taxes (.3) 5.2
Gains on disposals of assets (1.1)
Other, net (12.0) (3.6)
------- -------
56.0 59.3
Changes in noncash operating working
capital:
Accounts receivable (3.8) 6.9
Inventories (1.5) (2.4)
Accounts payable, accrued
liabilities and income taxes, net (13.8) (36.7)
Other, net (2.9) (2.6)
------- -------
Net cash provided by operating
activities 34.0 24.5
CASH FLOWS - INVESTING ACTIVITIES
Capital expenditures (48.2) (37.2)
Acquisition spending (3.4) (30.5)
IFL dividend receivable 51.9
Equity in pre-tax earnings of joint
venture, net 4.4 2.6
Proceeds from asset disposals 5.6 1.5
Short-term investments (4.9)
Other, net (.3) (1.9)
------- -------
Net cash used by investing activities (41.9) (18.5)
CASH FLOWS - FINANCING ACTIVITIES
Increase (decrease) in short-term debt 4.5 (3.1)
Issuance of Mallinckrodt common stock .9 1.7
Dividends paid (9.7) (8.6)
------- -------
Net cash used by financing activities (4.3) (10.0)
------- -------
Decrease in cash and cash equivalents (12.2) (4.0)
Cash and cash equivalents at beginning
of period 87.9 51.3
------- -------
Cash and cash equivalents at end
of period $ 75.7 $ 47.3
======= =======
(See Notes to Condensed Consolidated Financial Statements on page
5.)
</TABLE>
<PAGE>
<TABLE>
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY
(In millions except per share amounts)
<CAPTION>
1994 1993
- -----------------------------------------------------------------
<S> <C> <C>
4 Percent cumulative preferred stock
Balance at June 30 and September 30 $ 11.0 $ 11.0
Common stock
Balance at June 30 and September 30 87.1 87.1
Capital in excess of par value
Balance at June 30 268.2 262.4
Stock options exercised .3 .3
Restricted stock awards 1.8
---------- ----------
Balance at September 30 268.5 264.5
Reinvested earnings
Balance at June 30 846.4 780.3
Net earnings 33.9 34.5
Dividends
4 Percent cumulative preferred stock
($1.00 per share) (.1) (.1)
Common stock ($.125 per share in 1994
and $.11 per share in 1993) (9.6) (8.5)
---------- ----------
Balance at September 30 870.6 806.2
Marketable securities valuation allowance
Balance at June 30 (1.4) (2.2)
Valuation adjustment .2 .8
---------- ----------
Balance at September 30 (1.2) (1.4)
Foreign currency translation
Balance at June 30 (32.8) (56.4)
Translation adjustment 15.1 8.3
---------- ----------
Balance at September 30 (17.7) (48.1)
Treasury stock
Balance at June 30 (162.6) (171.7)
Stock options exercised .6 1.4
Restricted stock awards ( 4.1) 2.1
---------- ----------
Balance at September 30 (166.1) (168.2)
---------- ----------
Total shareholders' equity $ 1,052.2 $ 951.1
========== ==========
(See Notes to Condensed Consolidated Financial Statements on page
5.)
</TABLE>
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Provisions for income taxes were based on estimated annual
effective tax rates for each fiscal year. The income tax
provision for the first quarter of 1994 includes a favorable
adjustment of $1.4 million, or $.02 a share resulting from
tax law changes. The Company's effective tax rate for the
first quarter was 38.0 percent, compared to last year's 39.0
percent excluding the favorable adjustment discussed above.
This decrease reflects an earnings mix toward certain foreign
countries with lower statutory tax rates and the utilization
of certain tax losses.
2. Earnings per common share were based on the weighted average
number of common and common equivalent shares outstanding
(77,556,978 and 77,367,637 for the three months ended
September 30, 1994 and 1993, respectively).
<TABLE>
3. The components of inventory include the following:
<CAPTION>
As of
(In millions) September 30, 1994:
- -----------------------------------------------------------------
<S> <C>
Raw materials and supplies $ 100.9
Work in process 88.2
Finished goods 195.3
-------
$ 384.4
=======
</TABLE>
4. As of September 30, 1994, the Company has authorized and
issued 100,000 shares, par value $100, 4 Percent cumulative
preferred stock of which 98,330 shares are outstanding.
Mallinckrodt also has authorized 1,400,000 shares, par value
$1, of Series preferred stock, none of which is outstanding.
<TABLE>
Shares included in treasury stock were:
<CAPTION>
September 30, June 30,
1994 1994
- -----------------------------------------------------------------
<S> <C> <C>
Common stock 10,197,047 10,110,056
4 Percent cumulative
preferred stock 1,670 1,670
</TABLE>
5. At September 30, 1994 common shares reserved were:
Exercise of common stock
purchase rights 88,211,094
Exercise of stock options and
granting of stock awards 11,291,852
----------
Total 99,502,946
==========
<TABLE>
6. Supplemental cash flow information for the three months ended
September 30, included:
<CAPTION>
(In millions) 1994 1993
- -----------------------------------------------------------------
<S> <C> <C>
Interest paid $11.5 $11.5
Income taxes paid $11.4 $ 3.5
Noncash investing and
financial activities:
Assumption of liabilities related
to acquisitions $12.6
Issuance of common stock for
restricted stock awards $ 3.9
</TABLE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
RESULTS OF OPERATIONS
General
- -------
Earnings from continuing operations for the quarter ended
September 30, 1994 were $35 million, or 45 cents per share.
Excluding a two-cent per share tax benefit in the first quarter
of 1994, this is a 5 percent increase over the comparable 43
cents per share for the prior year. Net sales for the first
quarter were up 10 percent to $488 million, compared to $445
million last year. Net earnings for the quarter were $34
million, or 44 cents per share, compared with $35 million, or 44
cents per share, last year.
<TABLE>
A comparison of sales and operating earnings follows:
<CAPTION>
Three months ended
September 30,
(In millions) 1994 1993
- -----------------------------------------------------------------
<S> <C> <C>
Sales
- -----
Mallinckrodt Chemical $ 111 $ 103
Mallinckrodt Medical 230 201
Mallinckrodt Veterinary 147 142
Intersegment sales (1)
------ ------
$ 488 $ 445
====== ======
Operating earnings
- ------------------
Mallinckrodt Chemical $ 6 $ 8
Mallinckrodt Medical 51 47
Mallinckrodt Veterinary 11 14
Corporate (6) (8)
------ ------
$ 62 $ 61
====== ======
</TABLE>
Registered trademarks are indicated by asterisk.
<TABLE>
<CAPTION>
Mallinckrodt Chemical Three months ended
(In millions) September 30,
1994 1993
- -----------------------------------------------------------------
<S> <C> <C>
Net Sales:
Pharmaceutical Specialties $ 56 $ 58
Catalyst, Performance & Lab Chemicals 55 45
------ ------
$ 111 $ 103
====== ======
</TABLE>
Mallinckrodt Chemical, including its $6.1 million equity-
investment share of earnings from the flavors joint venture,
Tastemaker, achieved earnings of $12.7 million for the first
quarter, up 8 percent over last year's $11.8 million. Net sales
also increased 8 percent to $111 million. Significantly improved
operating performance from Tastemaker accounted for the earnings
increase. Pharmaceutical specialties sales decreased 3 percent
primarily from lower sales volumes for medicinal narcotics and
planned maintenance production shutdowns. Catalysts, performance
and lab chemicals sales increased 22 percent primarily from the
1994 acquisition of Catalyst Resources, Inc. In October 1994,
Chemical's facility in Dieburg, Germany was sold along with the
related photochemical business.
<TABLE>
<CAPTION>
Mallinckrodt Medical Three months ended
(In millions) September 30,
1994 1993
- -----------------------------------------------------------------
<S> <C> <C>
Net Sales:
Imaging $ 114 $ 96
Anesthesiology & Critical Care 70 62
Nuclear Medicine 46 43
------ ------
$ 230 $ 201
====== ======
</TABLE>
Mallinckrodt Medical's operating earnings for the quarter
increased 9 percent to $50.9 million principally as a result of
improved performance in the imaging businesses. Net sales
improved 14 percent to $230 million, led by an 18 percent
increase in sales of imaging products. Higher worldwide sales
volume of the x-ray contrast medium Optiray* more than offset the
effects of price competition. The company received FDA approval
of Albunex*, its ultrasound contrast agent in August 1994.
Product launch for Albunex* began in October 1994.
Anesthesiology and critical care sales increased 12 percent
boosted by the 1994 acquisition of DAR S.p.A. and improved sales
volume for tracheostomy tubes and hemoglobin and glucose testing
products. Nuclear medicine sales were up 9 percent primarily
from higher U.S. sales due to the introduction of OctreoScan* and
increased sales volume for thallium and TechneScan MAG3*.
<TABLE>
<CAPTION>
Mallinckrodt Veterinary Three months ended
(In millions) September 30,
1994 1993
- -----------------------------------------------------------------
<S> <C> <C>
Net Sales:
Pharmaceuticals $ 64 $ 62
Biologicals 21 21
Feed Ingredients 39 39
Veterinary Specialties & Other 23 20
------ ------
$ 147 $ 142
====== ======
</TABLE>
Mallinckrodt Veterinary's first quarter operating earnings
were $10.9 million, down 20 percent from last year. Factors
affecting the first quarter results were weak food animal
markets, higher manufacturing costs and lower pricing for feed
ingredients, revised buying patterns by certain North American
customers and higher manufacturing start-up costs. Net sales for
the quarter improved 4 percent over the prior year to $147
million. Pharmaceuticals sales were up 4 percent from favorable
currency translation and higher parasiticide and antimicrobial
sales, partially offset by lower animal productivity sales.
Biologicals sales decreased 3 percent primarily from lower foot
and mouth disease vaccine sales in Latin America. Feed
ingredients sales were slightly higher than last year as a result
of increased export sales volume. Veterinary specialties sales
improved 16 percent from expanded distribution rights in Brazil
and higher sales volume in Argentina.
Corporate Matters
- -----------------
Mallinckrodt corporate expense decreased $1.4 million
primarily from the benefits of reorganization implemented in late
fiscal 1994 and higher prior year costs for the Company's captive
insurance subsidiary. The Company's effective
tax rate was 38.0 percent, compared to last year's 39.0 percent
excluding the favorable adjustment previously discussed. This
decrease reflects an earnings mix toward certain foreign
countries with lower statutory tax rates and the utilization of
certain tax losses.
Financial Condition
- -------------------
The Company's financial resources are expected to continue to be
adequate to support existing businesses and fund new
opportunities. Since June 30, 1994, cash and cash equivalents
decreased $12.2 million. Operations provided $34.0 million of
cash, while acquisition and capital spending totalled $51.6
million. The Company's current ratio at September 30,1994 was
1.4. Debt as a percentage of invested capital was 39.2 percent.
In August 1987 and October 1988, the Company's Board of
Directors authorized repurchase of a total of 42.0 million shares
of its common stock. Since then, 28.9 million shares have been
purchased under this authorization; none during the first quarter
of 1995.
The Company has a $350 million private-placement commercial
paper program. This program is backed by $450 million of U.S.
lines of credit, of which $350 million is available until August
1996 and $100 million is available until August 1995. At September 30,
1994, commercial paper borrowings amounted to $204.7 million.
There were no outstanding borrowings under the U.S. lines of
credit at September 30, 1994. At September 1994, non-U.S. lines
of credit totaling $244.6 million were also available and
borrowings under these lines amounted to $32.5 million. The non-
U.S. lines are cancelable at any time.
Capital spending for the year ending June 30, 1995, is
estimated at approximately $250 million.
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In the previously reported claim by the United States
Environmental Protection Agency ("EPA") against the Company and
others concerning the alleged pollution of a stream near
Ashtabula, Ohio, designated as "Fields Brook," the arbitrator has
rendered a nonbinding decision concerning the allocation of
payment for a Remedial Design/Remedial Action study ordered by
EPA. Pursuant to agreement among the parties, the arbitrator's
decision may not be disclosed; however, it was consistent with
the expectations of the Company. Although the Company's
allocable share of cleanup costs cannot be determined at this
time, the Company continues to believe this proceeding will not
have a material adverse effect on its financial position or
results of operations.
Except as discussed in the preceding paragraph, there have
been no material developments in the legal proceedings previously
reported in the Company's Annual Report on Form 10-K for the year
ended June 30, 1994.
ITEM 2. CHANGES IN SECURITIES.
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
(a) The Annual Meeting of Shareholders was held October 19, 1994
in Mundelein, Illinois.
(b) The following directors were elected at the Annual Meeting
of Shareholders:
Term expiring in 1997 . . . . . . . C. Ray Holman
Term expiring in 1997 . . . . . . . Claudine B. Malone
Term expiring in 1997 . . . . . . . Morton Moskin
Term expiring in 1995 . . . . . . . Brian M. Rushton
The following directors continue in office:
Raymond F. Bentele
Dr. Ronald G. Evens
Alec Flamm
Roberta S. Karmel
Herve M. Pinet
Daniel R. Toll
(c) Other matters voted upon at the Annual Meeting of
Shareholders were:
1. Approval of Appointment of Independent Auditors.
The appointment of Ernst & Young LLP, as independent
auditors of the Registrant for the fiscal year ending June
30, 1995, was ratified by the affirmative vote of an
aggregate of 66,235,050 shares of common and 4 percent
cumulative preferred stock. A total of 100,067 shares of
common and 4 percent cumulative preferred stock was voted
against the appointment. Holders of 246,689 shares of
common and 4 percent cumulative preferred stock abstained
from voting.
2. Approval of Long-Term Incentive Compensation Plan and
the Material Terms of the Performance Goals for such
Plan.
A long-term incentive compensation plan and the material
terms of the performance goals for the plan were approved
by a total of 48,892,477 shares of common and 4 percent
cumulative preferred stock. A total of 17,175,517 shares
of common and 4 percent cumulative preferred stock was
voted against the plan. Holders of 513,812 shares of
common and 4 percent cumulative preferred stock abstained
from voting.
3. Approval of Deferred Election Plan for Non-Employee
Directors.
A deferred election plan for non-employee directors was
approved by a total of 64,561,302 shares of common and 4
percent cumulative preferred stock. A total of 1,451,499
shares of common and 4 percent cumulative preferred stock
voted against the plan. Holders of 569,005 shares of
common and 4 percent cumulative preferred stock abstained
from voting.
Item 5. Other Information.
Not applicable.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
11.1 Primary earnings per share computation for the three
months ended September 30, 1994 and 1993.
11.2 Fully diluted earnings per share computation for the
three months ended September 30, 1994 and 1993.
27 Financial Data Schedule
(b) Reports on Form 8-K.
During the quarter and through the date of this report, the
following reports on Form 8-K were filed:
- Report dated August 11, 1994, under Item 5 regarding
the resignation of the President of Mallinckrodt
Veterinary, Inc.
- Report dated September 13, 1994, under Item 5
regarding the Company's plan to repurchase common
stock.
- Report dated September 20, 1994, under Item 5
regarding plans to relocate a manufacturing
operation.
- Report dated October 19, 1994, under Item 5 regarding
the election of the President of Mallinckrodt
Veterinary, Inc.
- Report dated October 28, 1994, under Item 5 regarding
the first quarter fiscal 1995 forecasted earnings.
- Report dated November 3, 1994, under Item 5 regarding
the election of the Chairman of the Board of
Directors.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
Mallinckrodt Group Inc.
- --------------------------------
Registrant
By: MICHAEL A. ROCCA By: WILLIAM B. STONE
-------------------------- ----------------------------
Michael A. Rocca William B. Stone
Senior Vice President and Vice President and Controller
Chief Financial Officer
Date: November 10, 1994
<PAGE>
<TABLE>
Exhibit 11.1
EARNINGS PER SHARE
PRIMARY COMPUTATION
(In millions except share and per share amounts)
<CAPTION>
Three months ended
September 30,
1994 1993
----------------------------------------------------------------
<S> <C> <C>
Basis for computation of earnings per
common and common equivalent shares:
Earnings from continuing operations $ 34.7 $ 35.3
Deduct dividends on 4% preferred stock (.1) (.1)
------- -------
Earnings from continuing operations
available to common shareholders 34.6 35.2
Loss from discontinued operations (.8) (.8)
------- -------
Available for common shareholders $ 33.8 $ 34.4
======= =======
Number of shares:
Weighted average shares outstanding 76,898,893 76,617,398
Shares issuable upon exercise of
stock options, net of shares assumed
to be repurchased 658,085 750,239
---------- ----------
77,556,978 77,367,637
========== ==========
Earnings per common share:
Continuing operations $ .45 $ .45
Discontinued operations (.01) (.01)
------- -------
Net earnings $ .44 $ .44
======= =======
</TABLE>
<PAGE>
<TABLE>
Exhibit 11.2
EARNINGS PER SHARE
FULLY DILUTED COMPUTATION
(In millions except share and per share amounts)
<CAPTION>
Three months ended
September 30,
1994 1993
- ---------------------------------------------------------------------
<S> <C> <C>
Basis for computation of earnings per
common and common equivalent shares:
Earnings from continuing operations $ 34.7 $ 35.3
Deduct dividends on 4% preferred stock (.1) (.1)
------- -------
Earnings from continuing operations
available to common shareholders 34.6 35.2
Loss from discontinued operations (.8) (.8)
------- -------
Available for common shareholders $ 33.8 $ 34.4
======= =======
Number of shares:
Weighted average shares
outstanding 76,898,893 76,617,398
Shares issuable upon exercise of
stock options, net of shares
assumed to be repurchased 720,674 882,582
77,619,567 77,499,980
=========== ==========
Earnings per common share:
Continuing operations $ .45 $ .45
Discontinued operations (.01) (.01)
------- -------
Net earnings $ .44 $ .44
======= ========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the first
quarter 10-Q and is qualified in its entirety by reference to such 10-Q.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> QTR-1
<FISCAL-YEAR-END> JUN-30-1994
<PERIOD-START> JUL-01-1994
<PERIOD-END> SEP-30-1994
<CASH> 76
<SECURITIES> 0
<RECEIVABLES> 364
<ALLOWANCES> 12
<INVENTORY> 384
<CURRENT-ASSETS> 938
<PP&E> 1445
<DEPRECIATION> 561
<TOTAL-ASSETS> 2,473
<CURRENT-LIABILITIES> 683
<BONDS> 513
<COMMON> 87
0
11
<OTHER-SE> 954
<TOTAL-LIABILITY-AND-EQUITY> 2,473
<SALES> 488
<TOTAL-REVENUES> 488
<CGS> 275
<TOTAL-COSTS> 426
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 12
<INCOME-PRETAX> 56
<INCOME-TAX> 21
<INCOME-CONTINUING> 35
<DISCONTINUED> (1)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 34
<EPS-PRIMARY> .44
<EPS-DILUTED> .44
</TABLE>
