SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
--------------------------------------
For Quarter Ended September 30, 1994 Commission File Number 1-3157
INTERNATIONAL PAPER COMPANY
(Exact name of registrant as specified in its charter)
New York 13 0872805
(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) Identification No.)
Two Manhattanville Road, Purchase, NY 10577
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 914-397-1500
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 latest practicable
date.
Common stock outstanding on October 31, 1994: 125,060,432
shares.
INTERNATIONAL PAPER COMPANY
INDEX
Page No.
--------
PART I. Financial Information
Item 1. Financial Statements
Consolidated Statement of Earnings -
Three Months and Nine Months Ended
September 30, 1994 and 1993 4
Consolidated Balance Sheet -
September 30, 1994 and December 31, 1993 5-6
Consolidated Statement of Cash Flows -
Nine Months Ended September 30, 1994 and 1993 7
Notes to Consolidated Financial
Statements 8-9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 10-11
Item 3. Other Financial Information 12
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 2. Changes in Securities *
Item 3. Defaults upon Senior Securities *
Item 4. Submission of Matters to a Vote of Security Holders *
2
INTERNATIONAL PAPER COMPANY
INDEX (cont'd)
Page No.
--------
Item 5. Other Information *
Item 6. Exhibits and Reports on Form 8-K 14
Signatures 15
* Omitted since no answer is called for, answer is in the
negative or inapplicable.
3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
INTERNATIONAL PAPER COMPANY
Consolidated Statement Of Earnings
(Unaudited)
(In millions, except per-share amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -------------------
1994 1993 1994 1993
------ ------ ------- -------
<S> <C> <C> <C> <C>
Net Sales $3,792 $3,405 $10,839 $10,273
------ ------ ------- -------
Costs and Expenses
Cost of products sold 2,815 2,543 8,092 7,705
Depreciation and amortization 231 223 684 671
Distribution expenses 176 157 505 476
Selling and administrative expenses 272 247 774 731
Taxes other than payroll and income taxes 39 37 117 117
------ ------ ------- -------
Total Costs and Expenses 3,533 3,207 10,172 9,700
------ ------ ------- -------
Earnings Before Interest and Income Taxes 259 198 667 573
Interest expense, net 92 79 255 231
------ ------ ------- -------
Earnings Before Income Taxes 167 119 412 342
Provision for income taxes (includes $25 in
1993 related to the change in tax law) 58 71 144 153
------ ------ ------- -------
Net Earnings $ 109 $ 48 $ 268 $ 189
====== ====== ======= =======
Earnings per Common Share $ .87 $ .39 $ 2.15 $ 1.53
====== ====== ======= =======
Average Shares of Common Stock Outstanding 124.8 123.4 124.6 123.1
====== ====== ======= =======
Cash Dividends per Common Share $ .42 $ .42 $ 1.26 $ 1.26
====== ====== ======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
INTERNATIONAL PAPER COMPANY
Consolidated Balance Sheet
(Unaudited)
(In millions)
<TABLE>
<CAPTION>
September 30, December 31,
1994 1993
------------- ------------
<S> <C> <C>
Assets
Current Assets
Cash and temporary investments $ 196 $ 242
Accounts and notes receivable, net 2,194 1,856
Inventories 2,051 2,024
Other current assets 288 279
------- -------
Total Current Assets 4,729 4,401
Plants, Properties and Equipment, Net 9,044 8,872
Forestlands 804 786
Investments 991 631
Goodwill 776 754
Deferred Charges and Other Assets 1,353 1,187
------- -------
Total Assets $17,697 $16,631
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
INTERNATIONAL PAPER COMPANY
Consolidated Balance Sheet
(Unaudited)
(In millions)
<TABLE>
<CAPTION>
September 30, December 31,
1994 1993
------------- ------------
<S> <C> <C>
Liabilities and Common Shareholders'
Equity
Current Liabilities
Notes payable and current maturities
of long-term debt $ 1,911 $ 2,089
Accounts payable and accrued
liabilities 1,988 1,920
------- -------
Total Current Liabilities 3,899 4,009
Long-Term Debt 4,507 3,601
Deferred Income Taxes 1,657 1,614
Minority Interest and Other Liabilities 1,195 1,182
Common Shareholders' Equity
Common stock, $1 par value, issued
1994 - 127.4 shares,
1993 - 127.3 shares 127 127
Paid-in capital 1,769 1,704
Retained earnings 4,663 4,553
------- -------
6,559 6,384
Less: Common stock held in treasury,
at cost; 1994 - 2.4 shares,
1993 - 3.4 shares 120 159
------- -------
Total Common Shareholders' Equity 6,439 6,225
------- -------
Total Liabilities and
Common Shareholders' Equity $17,697 $16,631
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
INTERNATIONAL PAPER COMPANY
Consolidated Statement of Cash Flows
(Unaudited)
(In millions)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
-----------------
1994 1993
------- -----
<S> <C> <C>
Operating Activities
Net earnings $ 268 $ 189
Noncash items
Depreciation and amortization 684 671
Deferred income taxes 8 36
Other, net (20) (36)
Changes in current assets and liabilities
Accounts and notes receivable (325) (61)
Inventories 6 (61)
Other current assets (18) 4
Accounts payable and accrued liabilities 112 (222)
------- -----
Cash Provided by Operations 715 520
------- -----
Investment Activities
Invested in capital projects (746) (577)
Mergers and acquisitions
Plants, properties and equipment, net (4)
Other assets and liabilities, net (4) (11)
Investments in affiliated companies (299) (9)
Other (45) (12)
------- -----
Cash Used for Investment Activities (1,094) (613)
------- -----
Financing Activities
Issuance of common stock 62 49
Issuance of debt 1,741 617
Reduction of debt (1,077) (406)
Change in bank overdrafts (41) (22)
Dividends paid (158) (156)
Other (199) 74
------- -----
Cash Provided by Financing Activities 328 156
------- -----
Effect of Exchange Rate Changes on Cash 5 (1)
------- -----
Change in Cash and Temporary Investments (46) 62
Cash and Temporary Investments
Beginning of the period 242 225
------- -----
End of the period $ 196 $ 287
======= =====
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
INTERNATIONAL PAPER COMPANY
Notes to Consolidated Financial Statements
(Unaudited)
1. The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions to Form 10-Q and, in the opinion of
Management, include all adjustments (consisting only of normal recurring
accruals) which are necessary for the fair presentation of results for the
interim periods. It is suggested that these consolidated financial
statements be read in conjunction with the audited financial statements and the
notes thereto incorporated by reference in the Company's Form 10-K for the year
ended December 31, 1993, which has previously been filed with the Commission.
2. In March 1994, the Company acquired approximately one-half of Brierley
Investments Limited's holdings in Carter Holt Harvey Limited, a major New
Zealand forest products and paper company with substantial assets in Chile. The
purchase increased the Company's ownership of Carter Holt Harvey Limited to 24
percent.
In April 1993, the Company acquired certain assets of the Los Angeles - based
Ingram Paper Company (Ingram). Ingram is a distributor of industrial and fine
printing papers. In December, JB Papers, Inc., a paper distribution company
located in Union, N.J., was purchased. Also in December, the assets of
Monsanto Company's Kentucky-based Fome-Cor division, a manufacturer of
polystyrene foam products, were acquired.
All of the 1993 acquisitions were accounted for using the purchase method. The
effects of these acquisitions, individually or in the aggregate, were not
significant to the Company's financial statements.
The consolidated balance sheet at September 30, 1994 includes preliminary
purchase price allocations for JB Papers and Fome-Cor. The consolidated balance
sheet at December 31, 1993 includes preliminary purchase price allocations for
Ingram, JB Papers and Fome-Cor. Final allocations for JB Papers and Fome-Cor
will be completed in 1994.
3. Inventories by major category include:
<TABLE>
<CAPTION>
September 30, December 31,
1994 1993
------------- ------------
(In millions)
<S> <C> <C>
Raw materials $ 388 $ 380
Finished pulp, paper and packaging products 1,014 1,017
Finished imaging products 169 164
Finished lumber and panel products 75 79
Operating supplies 329 324
Other 76 60
------ ------
Total $2,051 $2,024
====== ======
</TABLE>
8
4. Interest payments made during the nine months ended September 30, 1994 and
1993 were $279 million and $301 million, respectively, including payments of
$115 million and $131 million for the 1994 and 1993 third quarters. Income tax
payments made during the nine months of 1994 and 1993 were $77 million and
$181 million, respectively.
5. Temporary investments with a maturity of three months or less are treated as
cash equivalents and are stated at cost. Temporary investments totaled $82
million and $160 million at September 30, 1994 and December 31, 1993,
respectively.
6. Certain amounts have been reclassified in the 1993 consolidated statement of
cash flows to conform with the current year presentation for changes in bank
overdrafts as financing activities. Changes in bank overdrafts were presented
as operating activities prior to 1994.
Bank overdrafts are included in accounts payable and accrued liabilities in the
consolidated balance sheet.
7. The Company filed a shelf registration statement with the Securities and
Exchange Commission to register $2.0 billion of debt and other securities in the
second quarter of 1994. At November 11, 1994, $600 million of long-term notes
have been issued under this shelf registration statement. The proceeds from
these notes were used primarily for the retirement of short-term borrowings.
8. The 1993 tax provision includes a $25 million ($.20 per share) non-cash
charge to revalue deferred tax balances to reflect the increase in the U.S.
federal income tax rate.
9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
International Paper reported 1994 third-quarter net earnings of $109 million or
$0.87 per share on net sales of $3.8 billion, a 47 percent increase over 1993
third-quarter net earnings of $73 million or $0.59 per share on net sales of
$3.4 billion (a 123 percent increase, based on last year's reported earnings of
$48 million or $0.39 per share after a special charge to revalue deferred
taxes). Net earnings for the 1994 third quarter were 24 percent higher than the
1994 second-quarter net earnings of $87 million or $0.70 per share. Nine-month
net earnings for 1994 were $268 million or $2.15 per share on net sales of $10.8
billion compared with $214 million or $1.73 per share ($189 million or $1.53 per
share after a special charge to revalue deferred taxes) on net sales of $10.3
billion in 1993.
Overall, the third quarter's results were the best since the second quarter of
1992. Business conditions are continuing to improve and even higher earnings
are expected in the final quarter of this year. Essentially all product lines
are experiencing greater demand and higher prices due to expanding economies in
the United States, Europe and the Pacific Rim. As worldwide economies improve,
demand for paper and packaging products is expected to grow faster than the
industry's manufacturing capacity. While 1994 will be a year of substantial
improvement, even more robust growth is expected in 1995.
Printing Papers third-quarter 1994 net sales were $1.1 billion compared with
$955 million in the 1993 third quarter. Nine-month net sales were $3.1 billion
in 1994 and $3.0 billion in 1993. Sector operating results for the 1994
third-quarter were well ahead of the comparable 1993 period. Led by a very
strong market for pulp and a sharp recovery in Europe, Printing Papers returned
to profitability for the first time in two years.
Packaging third-quarter 1994 net sales increased to $875 million from $775
million in the prior year and were $2.5 billion and $2.3 billion for the nine
months of 1994 and 1993, respectively. Operating earnings for the packaging
businesses also improved significantly over the prior year. Containerboard sales
and earnings were up sharply from year-earlier levels due in part to strong
linerboard and corrugated box demand. Consumer packaging earnings also
increased, due to the improving outlook in the bleached board and liquid
packaging businesses.
Distribution net sales increased to $890 million in the third quarter of 1994,
up from $810 million in the 1993 third quarter. Net sales for the nine-month
period of 1994 were $2.5 billion compared with $2.3 billion in 1993. Operating
profits were up slightly over the prior year due to improved business
conditions. Contributions from Ingram Paper, acquired early in the second
quarter of 1993, accounted for much of the 1994 nine-month sales increase.
Specialty Products reported third-quarter 1994 net sales of $650 million
compared with $610 million in the prior-year third quarter and nine-month net
sales of $1.9 billion in 1994 and $1.8 billion in 1993. Operating profits for
the third quarter were lower as strong performances by Masonite, decorative
products, chemicals and specialty industrial papers were offset by declines in
the nonwovens, imaging and petroleum businesses.
10
Forest Products net sales were $430 million and $415 million in the respective
1994 and 1993 third quarters and were $1.3 billion in each of the 1994 and 1993
nine-month periods. The forest products businesses maintained a high level of
profitability. Operating profits for the 1994 third quarter were about even
with the comparable prior-year period.
An increase in total debt outstanding together with higher short-term interest
rates resulted in a 16 percent increase in third-quarter net interest expense to
$92 million in 1994 from $79 million in 1993.
LIQUIDITY AND CAPITAL RESOURCES
Operating cash flow totaled $715 million for the nine-month period, up from $520
million for the comparable 1993 period. Higher earnings together with lower
working capital requirements led to the increase.
Investments in capital projects totaled $746 million for the nine months, up
from the $577 million for the 1993 nine months. Additionally, $299 million was
spent to increase investments in affiliated companies.
Dividend payments were $158 million, or $1.26 per common share. Debt issued
during the nine-month period included medium-term notes, commercial paper and
bank notes and $600 million of long-term notes that were used primarily to
retire short-term borrowings.
The Company anticipates that cash flow generated by operations, supplemented as
necessary by short- or long-term borrowings, will be adequate to meet capital
expenditures which are expected to exceed $1.1 billion for 1994.
11
ITEM 3. OTHER FINANCIAL INFORMATION
Sales by Industry Segment
and
Production by Products
(Unaudited)
Sales by Industry Segment (In millions)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
----------------- --------------------
1994 1993 1994 1993
------ ------ ------- -------
<S> <C> <C> <C> <C>
Printing Papers $1,135 $ 955 $ 3,125 $ 2,985
Packaging 875 775 2,455 2,320
Distribution 890 810 2,510 2,330
Specialty Products 650 610 1,915 1,845
Forest Products 430 415 1,300 1,255
Less: Intersegment Sales (188) (160) (466) (462)
------ ------ ------- -------
Net Sales $3,792 $3,405 $10,839 $10,273
====== ====== ======= =======
</TABLE>
Production by Products
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- ---------------------
1994 1993 1994 1993
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Printing Papers (In thousands of tons)
White Papers and Bristols 896 744 2,419 2,160
Coated Papers 261 252 767 741
Market Pulp (A) 385 411 1,210 1,205
Packaging (In thousands of tons)
Containerboard 553 518 1,594 1,554
Bleached Packaging Board 255 239 782 746
Industrial Papers 206 144 549 419
Industrial and Consumer Packaging (B) 770 769 2,241 2,175
Forest Products (In millions)
Panels (sq. ft. 3/8" basis) (C) 205 199 621 585
Lumber (board feet) 246 245 721 719
</TABLE>
(A) This excludes market pulp purchases.
(B) A significant portion of this tonnage was fabricated from paperboard and
paper produced at the Company's own mills and included in the containerboard,
bleached packaging board, and industrial papers amounts in this table.
(C) Panels include plywood and oriented strand board.
12
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
As reported in the Annual Report on Form 10-K for the year ended December 31,
1993 (the "Annual Report"), the Town of Jay, Maine assessed a penalty of
$394,000 against the Company's Androscoggin mill for violations of its air
permit under the Town's Environmental Control and Improvement Ordinance
attributable to excess emissions of particulate from one of the mill's lime
kilns, as well as violations of certain reporting requirements. The Company
appealed the Town's penalty assessment. On September 28, 1994, the Maine
Superior Court vacated most of the penalty the Town had assessed, leaving
$22,000 in place but providing the Town with the opportunity to reassess the
penalty on four violations. The Town has appealed this decision to the Law
Court, the State's highest court. The Company has also appealed the findings
adverse to it.
On September 29, 1994, Arizona Chemical Company ("Arizona"), a wholly-owned
subsidiary of the Company, entered into a Consent Agreement and Order with the
U.S. Environmental Protection Agency (the "EPA"), which resolved an enforcement
action previously reported in the Annual Report, alleging violations of
regulations governing the burning of hazardous waste fuel at an Arizona facility
in Panama City, Florida. The settlement contained a civil penalty provision of
$200,000.
On September 26, 1994, the EPA issued a Complaint and Compliance Order alleging
that an Arizona facility in Gulfport, Mississippi violated regulations governing
the burning of hazardous waste fuel in an industrial boiler. The Complaint
seeks a civil penalty of $712,350. The Company has filed its Answer to the
Complaint and Compliance Order.
As reported in the Annual Report on Form 10-K for the year ended December 31,
1993, on November 15, 1993, the Thilmany division of the Company and the EPA
agreed on penalties for an alleged violation of the Clean Air Act at the
Thilmany mill located in Kaukauna, Wisconsin. The settlement was approved by
the Federal Court having jurisdiction of the action on August 3, 1994 and
terminates this proceeding.
13
PART II. OTHER INFORMATION (cont'd)
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
(11) Statement of Computation of Per Share Earnings
(12) Computation of Ratio of Earnings to Fixed Charges
(27) Financial Data Schedule
(b) Reports on Form 8-K.
Reports on Form 8-K were filed on August 1, 1994, August 3, 1994,
August 10, 1994, and October 17, 1994.
14
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.
INTERNATIONAL PAPER COMPANY
(Registrant)
Date: November 11, 1994 By /s/ ROBERT C. BUTLER
Robert C. Butler
Senior Vice President
and Chief Financial Officer
Date: November 11, 1994 By /s/ ANDREW R. LESSIN
Andrew R. Lessin
Controller and Chief
Accounting Officer
15
EXHIBIT INDEX
Exhibit No.
- -----------
11 Statement of Computation of Per Share Earnings
12 Computation of Ratio of Earnings to Fixed Charges
27 Financial Data Schedule
(Exhibit 11)
INTERNATIONAL PAPER COMPANY
STATEMENT OF COMPUTATION OF PER SHARE EARNINGS
(Unaudited)
(In millions, except per-share amounts)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended Ended
September 30, September 30,
------------- -------------
1994 1993 1994 1993
----- ----- ----- -----
<S> <C> <C> <C> <C>
Net earnings $ 109 $ 48 $ 268 $ 189
Debenture interest savings, net of taxes,
assuming conversion of convertible
subordinated debentures 1 * 5 *
----- ----- ----- -----
Primary and fully diluted net earnings $ 110 $ 48 $ 273 $ 189
===== ===== ===== =====
Earnings per common share $ .87 $ .39 $2.15 $1.53
===== ===== ===== =====
Primary earnings per share $ .86 $ .39 $2.14 $1.53
===== ===== ===== =====
Fully diluted earnings per share $ .86 $ .39 $2.13 $1.53
===== ===== ===== =====
PRIMARY SHARES
Average shares outstanding 124.8 123.4 124.6 123.1
Shares assumed to be repurchased using
long-term incentive plan deferred
compensation at average market price (.2) (.3) (.3) (.3)
Shares assumed to be issued upon exercise of
stock options, net of treasury buyback at
average market price .6 .3 .5 .4
Shares assumed to be issued upon conversion
of convertible subordinated debentures 2.9 * 2.9 *
----- ----- ----- -----
Primary shares 128.1 123.4 127.7 123.2
===== ===== ===== =====
FULLY DILUTED SHARES
Average shares outstanding 124.8 123.4 124.6 123.1
Shares assumed to be repurchased using
long-term incentive plan deferred
compensation at period-end market price
(if higher than average market price) (.2) (.3) (.2) (.3)
Shares assumed to be issued upon exercise of
stock options, net of treasury buyback at
period-end market price (if higher than
average market price) .8 .3 .8 .4
Shares assumed to be issued upon conversion
of convertible subordinated debentures 2.9 * 2.9 *
----- ----- ----- -----
Fully diluted shares 128.3 123.4 128.1 123.2
===== ===== ===== =====
</TABLE>
Note: The Company reports earnings per common share as the effect of dilutive
securities is less than 3%.
* Convertible subordinated debentures were antidilutive.
(Exhibit 12)
INTERNATIONAL PAPER COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollar amounts in millions)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months
Ended
For the Years Ended December 31, September 30,
TITLE 1989 1990 1991 1992 1993 1993 1994
- ---------------------------------- -------- -------- -------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
A) Earnings before income taxes,
extraordinary item and
accounting changes $1,404.7 $ 945.9 $ 637.9 $206.1 $500.0 $342.3 $412.0
B) Add: Fixed charges excluding
capitalized interest 250.4 336.2 380.3 325.3 365.3 270.9 298.4
C) Add: Amortization of previously
capitalized interest 8.4 8.6 9.9 9.9 12.2 9.0 9.4
D) Less: Equity in undistributed
earnings of affiliates (6.7) (9.4) (10.8) (19.1) (25.9) (21.7) (37.1)
-------- -------- -------- ------ ------ ------ ------
E) Earnings before income taxes,
extraordinary item, accounting
changes and fixed charges $1,656.8 $1,281.3 $1,017.3 $522.2 $851.6 $600.5 $682.7
======== ======== ======== ====== ====== ====== ======
Fixed Charges
F) Interest and amortization of
debt expense $ 228.7 $ 309.5 $ 351.1 $297.1 $334.5 $248.7 $268.9
G) Interest factor attributable
to rentals 21.7 26.7 29.2 28.2 30.8 22.2 29.5
H) Capitalized interest 10.9 26.3 36.4 42.0 12.2 10.0 10.5
-------- -------- -------- ------ ------ ------ ------
I) Total fixed charges $ 261.3 $ 362.5 $ 416.7 $367.3 $377.5 $280.9 $308.9
======== ======== ======== ====== ====== ====== ======
J) Ratio of earnings to fixed
charges 6.34 3.53 2.44 1.42 2.26 2.14 2.21
======== ======== ======== ====== ====== ====== ======
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Unaudited)
(In millions, except per-share amounts)
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
<CASH> 196
<SECURITIES> 0
<RECEIVABLES> 2,293
<ALLOWANCES> (99)
<INVENTORY> 2,051
<CURRENT-ASSETS> 4,729
<PP&E> 15,968
<DEPRECIATION> (6,924)
<TOTAL-ASSETS> 17,697
<CURRENT-LIABILITIES> 3,899
<BONDS> 4,507
0
0
<COMMON> 127
<OTHER-SE> 6,312
<TOTAL-LIABILITY-AND-EQUITY> 17,697
<SALES> 10,839
<TOTAL-REVENUES> 10,839
<CGS> 8,092
<TOTAL-COSTS> 10,172
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 255
<INCOME-PRETAX> 412
<INCOME-TAX> 144
<INCOME-CONTINUING> 268
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 268
<EPS-PRIMARY> 2.14
<EPS-DILUTED> 2.13
</TABLE>
