FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1995
OR
[ ] 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 1-3939
KERR-McGEE CORPORATION
(Exact Name of Registrant as Specified in its Charter)
A Delaware Corporation 73-0311467
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
Kerr-McGee Center, Oklahoma City, Oklahoma 73125
(Address of Principal Executive Offices and Zip Code)
Registrant's telephone number, including area code (405) 270-1313
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
Number of shares of common stock, $1.00 par value, outstanding as
of July 31, 1995: 51,837,329
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
<TABLE>
KERR-McGEE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended Six Months Ended
(Millions of dollars, June 30, June 30,
except per-share amounts) 1995 1994 1995 1994
<S> <C> <C> <C> <C>
Sales $456.7 $420.7 $920.6 $794.0
Costs and Expenses
Costs and operating
expenses 249.8 242.8 504.3 462.1
Selling, general, and
administrative expenses 20.8 22.2 39.1 42.8
Depreciation and depletion 77.0 74.9 157.5 147.2
Exploration, including dry holes
and amortization of
undeveloped leases 22.6 19.4 43.8 42.5
Provisions for environmental
reclamation and remediation
of inactive sites 6.5 2.5 14.6 4.7
Taxes, other than income taxes 17.2 17.3 33.2 35.8
Interest and debt expense 16.3 14.0 34.9 26.8
Total Costs and Expenses 410.2 393.1 827.4 761.9
46.5 27.6 93.2 32.1
Other Income 3.2 2.3 9.0 7.2
Income from Continuing Operations
before Income Taxes 49.7 29.9 102.2 39.3
Provision for Income Taxes 14.5 9.6 30.2 12.1
Income from Continuing
Operations 35.2 20.3 72.0 27.2
Income from Discontinued Operations
(net of provision for income
taxes of $5.9 and $6.3 for the
second quarter of 1995 and 1994,
respectively, and $6.4 and $14.5
for the first six months of
1995 and 1994, respectively) 9.5 10.1 10.4 24.8
Net Income $44.7 $30.4 $82.4 $52.0
Net Income per Common Share
Continuing operations $.68 $.39 $1.39 $.52
Discontinued operations .18 .19 .20 .48
Total $.86 $.58 $1.59 $1.00
Cash Dividends Declared per
Common Share $.38 $.38 $.76 $.76
Average Number of Shares
Outstanding (thousands) 51,786 51,659 51,746 51,658
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
KERR-McGEE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
June 30, Dec. 31,
(Millions of dollars) 1995 1994
ASSETS
Current Assets
Cash $84.0 $81.7
Notes and accounts receivable 406.4 421.7
Inventories 326.6 398.7
Deposits and prepaid expenses 48.1 60.3
Total Current Assets 865.1 962.4
Property, Plant, and Equipment 6,190.7 6,009.5
Less reserves for depreciation,
depletion, and amortization 3,596.3 3,457.8
2,594.4 2,551.7
Investments and Other Assets 198.0 184.1
$3,657.5 $3,698.2
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-term borrowings and accounts
payable $532.1 $686.9
Other current liabilities 212.5 202.7
Total Current Liabilities 744.6 889.6
Long-Term Debt 661.0 672.8
Deferred Credits and Other Liabilities 650.6 592.4
Stockholders' Equity
Common stock, par value $1 -
150,000,000 shares authorized,
53,435,099 shares issued at
6-30-95 and 53,304,076 at
12-31-94 53.4 53.3
Capital in excess of par value 314.9 309.3
Preferred stock purchase rights .5 .5
Retained earnings 1,363.4 1,320.3
Unrealized gain on securities
available-for-sale 17.0 11.5
Common shares in treasury, at cost -
1,610,088 shares at 6-30-95
and 1,610,438 at 12-31-94 (62.6) (62.6)
Deferred compensation (85.3) (88.9)
Total Stockholders' Equity 1,601.3 1,543.4
$3,657.5 $3,698.2
The "successful efforts" method of accounting for oil and gas
exploration and production activities has been followed in
preparing this balance sheet.
The accompanying notes are an integral part of this balance sheet.
<PAGE>
KERR-McGEE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Six Months Ended
June 30,
(Millions of dollars) 1995 1994
Operating Activities
Net income $82.4 $52.0
Adjustments to reconcile to net cash
provided by operating activities -
Depreciation, depletion,
and amortization 179.8 169.6
Deferred income taxes 17.4 (1.6)
Provision for reclamation and
remediation of inactive sites 14.6 4.7
Noncash items affecting net income 30.4 30.8
Other net cash provided by
(used in) operating activities 2.8 (114.1)
Net Cash Provided by Operating
Activities 327.4 141.4
Investing Activities
Capital expenditures (259.5) (203.3)
Purchase of long-term investments (.8) (35.3)
Proceeds from sales of refining
and marketing assets 79.9 -
Other investing activities 18.4 28.8
Net Cash Used in Investing
Activities (162.0) (209.8)
Financing Activities
Increase (decrease) in short-term
borrowings (118.3) 186.8
Repayment of debt (11.3) (47.4)
Dividends paid (39.3) (39.3)
Other financing activities 5.8 .1
Net Cash Provided by (Used in)
Financing Activities (163.1) 100.2
Net Increase in Cash and Cash Equivalents 2.3 31.8
Cash and Cash Equivalents at Beginning
of Period 81.7 94.4
Cash and Cash Equivalents at End of Period $84.0 $126.2
The accompanying notes are an integral part of this statement.
<PAGE>
KERR-McGEE CORPORATION AND SUBSIDIARY COMPANIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1995
A. The condensed financial statements included herein have been
prepared by the company, without audit, pursuant to the rules
and regulations of the Securities and Exchange Commission and,
in the opinion of management, include all adjustments,
consisting only of normal recurring accruals, necessary to
present fairly the resulting operations for the indicated
periods. 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 such rules and regula-
tions, although the company believes that the disclosures are
adequate to make the information presented not misleading. It
is suggested that these condensed financial statements be read
in conjunction with the financial statements and the notes
thereto included in the company's latest annual report on Form
10-K.
B. After adding the dilutive effect of the conversion of options
to the weighted average number of shares outstanding, the
shares used to compute net income per common share were
51,974,852 and 51,727,196 for the three months ended June 30,
1995 and 1994, respectively, and 51,884,476 and 51,727,879 for
the six months ended June 30, 1995 and 1994, respectively.
C. The company has entered into various contracts or letters of
intent to sell its refining and marketing assets. The sale of
a small refinery was completed in the first quarter of 1995.
The sale of a lubricating oil and grease operation and the
Residuum Oil and Supercritical Extraction (ROSE [registered
trademark]) process was completed in the second quarter of 1995.
Sales of refineries at Corpus Christi, Texas, and Wynnewood, Oklahoma,
and a pipeline gathering system in Oklahoma were completed in early
August. The sales of the remaining refining and marketing
assets are scheduled for closing or are in various stages of
negotiations. The company intends to complete its plan to
exit the refining and marketing business in 1995; therefore,
refining and marketing operations are reported as a
discontinued operation. No material gain or loss is expected
to result from the disposal of the segment.
Revenues applicable to the discontinued operations totaled
$464.6 million and $486.2 million for the three months ended
June 30, 1995 and 1994, respectively, and $913.8 million and
$947.8 million for the six months ended June 30, 1995 and
1994, respectively. Refining and marketing assets not yet
sold are included as part of the appropriate line items in the
Consolidated Balance Sheet. Included at June 30, 1995, are
accounts receivable of $123.1 million; inventories of $148.4
million; net property, plant, and equipment of $194.5 million;
accounts payable of $100.4 million; and other current
liabilities of $31.3 million.
D. The crude oil and refined petroleum products inventories of
the refining and marketing operations are priced at cost under
the LIFO method. The carrying values of these inventories
under the LIFO method are based on an annual determination of
quantities and costs as of the last day of the fiscal year.
However, since these inventories are held for sale, the
carrying values at June 30, 1995, were based on quantities and
costs expected to exist at the anticipated date of
disposition.
E. Net cash provided by operating activities reflects cash
payments for income taxes and interest as follows:
Six Months Ended
June 30,
(Millions of dollars) 1995 1994
Income taxes $17.5 $33.6
Interest 37.5 38.7
F. CONTINGENCIES
West Chicago -
Since August 1979, when the company's wholly owned subsidiary,
Kerr-McGee Chemical Corporation (KMCC) filed a plan with the
Nuclear Regulatory Commission to decommission a former
operation in West Chicago, Illinois, KMCC has been involved in
a number of related judicial and administrative proceedings.
The operation, which was closed in 1973, processed thorium
ores, leaving ore residues, process buildings, and equipment
with some low-level radioactivity on site. While a number of
these proceedings have been settled or resolved, the following
discusses the remaining proceedings.
Decommissioning - Several approvals have been received for the
decommissioning process, but a license amendment to
decommission has not been issued. The State of Illinois (the
State) has jurisdiction over the site and requires offsite
disposal of contaminated material. In July 1994, KMCC, the
City of West Chicago, and the State executed a Settlement
Agreement (the Agreement) regarding the decommissioning of the
closed West Chicago facility. Pursuant to the Agreement, KMCC
built or leased appropriate support facilities during the
summer of 1994 and began shipments of material from the site
to a licensed permanent disposal facility in Utah in September
1994.
Under the Illinois Uranium and Thorium Mill Tailings Control
Act (the Act), KMCC is obligated to pay an annual storage fee
of $2.00 per cubic foot of byproduct material located at the
former facility. Under the Agreement, the amount of the
storage fee paid each year shall not exceed $26 million, and
all amounts paid pursuant to the Act are to be reimbursed to
KMCC as decommissioning expenditures are incurred. KMCC has
received reimbursement for all amounts paid under the Act to
the State through June 30, 1995, and will continue to seek
reimbursement for future amounts paid under the Act as
decommissioning costs are incurred.
The aggregate cost to decommission the former facility is
difficult to estimate because of the many contingencies,
including the terms of the license amendment required to
complete the decommissioning process. Decommissioning costs
to KMCC will be reduced by any amounts recovered pursuant to
the Energy Policy Act of 1992 (which could total up to $42
million, of which $7 million has been received). At December
31, 1994, reserves provided for the cost to decommission the
site under the plan proposed by KMCC were $157 million (before
any further recovery under the Energy Policy Act of 1992),
payable over the time necessary to relocate the materials,
which was estimated at year-end 1994 to be between four and
six years. During the first six months of 1995, additional
reserve provisions totaled $7 million.
Offsite Areas - The U.S. Environmental Protection Agency (EPA)
has listed four areas in the vicinity of the West Chicago
facility on the National Priority List that the EPA
promulgates under authority of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 and has
designated KMCC as a potentially responsible party in these
four areas. The EPA issued a unilateral administrative order
for one of these areas (referred to as the residential area),
which requires KMCC to conduct a removal action to excavate
contaminated soils and to ship the soil elsewhere for
disposal. At December 31, 1994, the estimated cost to clean
up the residential area was $22 million. Without waiving any
of its rights or defenses, in May 1995 KMCC began the cleanup
of this site.
Judicial Proceedings - Several personal injury lawsuits have
been filed against KMCC by residents of West Chicago seeking
compensation for illnesses allegedly caused by exposure to
thorium wastes from the former West Chicago facility. One
case was settled in 1994 with a payment by KMCC. The
remaining cases continue in the judiciary process. KMCC will
continue its defense of these cases and its efforts to recover
insurance proceeds from policies on the former facility.
Summary -
The plants and facilities of the company and its subsidiaries
are subject to various environmental laws and regulations.
The company or its subsidiaries have been notified that they
may be responsible in varying degrees for a portion of the
costs to clean up certain waste disposal sites and former
plant sites. As reported in the most recent 10-K, the company
or its subsidiaries have spent $228 million on remediation and
clean-up through December 31, 1994. Additionally, the
remaining reserves provided for the cost to investigate and/or
remediate all presently identified sites of former or current
operations were $239 million at December 31, 1994, which total
includes $179 million for the former KMCC facility and offsite
areas in West Chicago. During the first six months of 1995,
expenditures charged to the reserves totaled $23 million and
additional provisions for environmental reserves were $16
million.
In addition to the environmental issues previously discussed,
the company or its subsidiaries are also a party to a number
of other legal proceedings pending in various courts or
agencies in which the company or a subsidiary appears as
plaintiff or defendant. Because of continually changing laws
and regulations, the nature of the company's businesses, and
pending legal proceedings, it is not possible to reliably
estimate the amount or timing of all future expenditures
relating to contingencies. The company provides for costs
related to contingencies when a loss is probable and the
amount is reasonably estimable. Although management believes,
after consultation with general counsel, that adequate
reserves have been provided for all known contingencies, it is
possible, due to the above-noted uncertainties, additional
reserves could be required in the future that could have a
material effect on results of operations in a particular
quarter or annual period. However, the ultimate resolution of
these commitments and contingencies, to the extent not
previously provided for, should not have a material adverse
effect on the company's financial position.
Item 2. Management's Discussion and Analysis of Results of Opera-
tions and Financial Condition.
COMPARISON OF 1995 RESULTS WITH 1994 RESULTS
CONSOLIDATED OPERATIONS
Income from continuing operations for the 1995 second quarter
totaled $35.2 million, compared with $20.3 million for the same
1994 period. For the first six months of 1995, income from
continuing operations was $72 million, up from $27.2 million for
the 1994 period.
Second-quarter 1995 net income totaled $44.7 million, compared with
$30.4 million for the same 1994 period. For the first six months
of 1995, net income totaled $82.4 million, compared with $52
million for the same 1994 period.
Compared with the same 1994 periods, operating profit for the
quarter and six months ended June 30, 1995, was higher for all
business units. The improved results for both periods reflect
higher crude oil sales prices and volumes, higher natural gas sales
volumes, higher sales prices for titanium dioxide pigment and
higher coal sales volumes. Partially offsetting were lower natural
gas sales prices and higher exploration costs.
Second-quarter 1995 nonoperating expense was $30.5 million,
compared with $28.2 million for the 1994 quarter. For the six
months of 1995, nonoperating expense was $61.6 million, compared
with $50.8 million for the same 1994 period. The increase in both
periods was due primarily to higher environmental provisions.
SEGMENT OPERATIONS
Following is a summary of sales and operating profit and a
discussion of major factors influencing the results of each of the
company's business segments for the second quarter and first six
months of 1995, compared with the same periods last year.
<PAGE>
Three Months Ended Six Months Ended
June 30, June 30,
(Millions of dollars) 1995 1994 1995 1994
Sales
Exploration and production(1) $170.4 $158.9 $341.9 $302.9
Chemicals 183.7 174.3 377.5 319.6
Coal 87.9 76.4 174.6 150.4
Other 14.7 11.1 26.6 21.1
Total Sales $456.7 $420.7 $920.6 $794.0
Operating Profit (Loss)
Exploration and production $27.4 $17.9 $59.3 $22.8
Chemicals 33.7 26.9 65.0 43.8
Coal 15.9 12.9 33.0 25.5
Other 3.2 .4 6.5 (2.0)
Total Operating Profit 80.2 58.1 163.8 90.1
Nonoperating Expense 30.5 28.2 61.6 50.8
Provision for Income Taxes 14.5 9.6 30.2 12.1
Income from Continuing Operations 35.2 20.3 72.0 27.2
Discontinued Operations,
Net of Tax 9.5 10.1 10.4 24.8
Net Income $44.7 $30.4 $82.4 $52.0
(1)Includes sales of primarily crude oil to discontinued operations
in the amount of $48.7 and $42.1 for the three months ended June
30, 1995 and 1994, respectively, and $86.3 and $76.1 for the six
months ended June 30, 1995 and 1994, respectively.
Exploration and Production -
Operating profit for the second quarter of 1995 was $27.4 million,
compared with $17.9 million for the same 1994 period. Operating
profit for the first six months of 1995 and 1994 was $59.3 million
and $22.8 million, respectively. The increased operating profit
for both periods was due primarily to higher crude oil sales prices
and volumes and higher natural gas sales volumes. These increases
were partially offset by lower natural gas sales prices and higher
exploration costs.
Revenues, including sales to the discontinued refining and
marketing operations, were $170.4 million and $158.9 million for
the three months ended June 30, 1995 and 1994, respectively, and
$341.9 million and $302.9 million for the first six months of 1995
and 1994, respectively. The following table shows the company's
average crude oil and natural gas sales prices and volumes for both
the second quarter and first six months of 1995 and 1994.
<PAGE>
Three Months Ended Percent
June 30, Increase
1995 1994 (Decrease)
Crude oil sales
(thousands of bbls/day)
United States 29.0 26.4 10
Canada 4.5 4.4 2
North Sea 36.3 28.8 26
Other international(1) - 4.3 NM
Total 69.8 63.9 9
Average crude oil sales price
(per barrel)
United States $16.14 $15.07 7
Canada 16.28 14.04 16
North Sea 17.28 15.30 13
Other international(1) - 14.94 NM
Average $16.74 $15.09 11
Natural gas sold (MMCF/day) 290 266 9
Average natural gas sales price
(per MCF) $1.51 $1.83 (17)
Six Months Ended Percent
June 30, Increase
1995 1994 (Decrease)
Crude oil sales
(thousands of bbls/day)
United States 29.5 25.9 14
Canada 4.6 4.7 (2)
North Sea 37.5 29.9 25
Other international(1) - 4.1 NM
Total 71.6 64.6 11
Average crude oil sales price
(per barrel)
United States $15.90 $13.66 16
Canada 15.62 12.69 23
North Sea 16.68 14.21 17
Other international(1) - 14.36 NM
Average $16.29 $13.89 17
Natural gas sold (MMCF/day) 301 265 14
Average natural gas sales price
(per MCF) $1.45 $1.93 (25)
(1)Sales were from ABK field in Arabian Gulf, which was sold in
late 1994.
Chemicals -
Second-quarter 1995 operating profit was $33.7 million on revenues
of $183.7 million, compared with operating profit of $26.9 million
on revenues of $174.3 million for the same period last year. For
the first six months of 1995 and 1994, operating profit was $65
million and $43.8 million, respectively, on revenues of $377.5
million and $319.6 million, respectively. Revenues for both 1995
periods increased due principally to higher sales prices for
titanium dioxide pigment. Operating profit for both 1995 periods
increased due principally to higher revenues.
Coal -
Second-quarter 1995 operating profit was $15.9 million on revenues
of $87.9 million, compared with $12.9 million on revenues of $76.4
million for the same 1994 quarter. For the first six months of
1995, operating profit was $33 million, compared with $25.5 million
last year. Revenues were $174.6 million and $150.4 million for the
first six months of 1995 and 1994, respectively. Revenues for the
second quarter and the first six months of 1995 increased due to
higher sales volumes, partially offset by lower sales prices.
Operating profit increased due to the higher revenues and lower
per-unit production costs.
Nonoperating Expense -
For a discussion of variances in nonoperating expenses, see
Consolidated Operations discussion on page 7.
Provisions for Income Taxes -
The provision for income taxes was $14.5 million and $30.2 million
for the second quarter and first six months of 1995, respectively,
compared with $9.6 million and $12.1 million for the respective
1994 periods. The increased tax provision for both periods was due
primarily to higher pretax income.
FINANCIAL CONDITION
At June 30, 1995, the company's net working capital position was
$120.5 million, compared with $72.8 million at December 31, 1994.
The current ratio was 1.2 to 1 at June 30, 1995, compared with 1.1
to 1 at both December 31, 1994, and June 30, 1994. The company's
percentage of total debt to total capitalization was 35% at June
30, 1995, compared with 39% at December 31, 1994, and 40% at June
30, 1994.
For the first six months of 1995, net cash provided by operating
activities was $327.4, compared with $141.4 for the same 1994
period. The increase was due principally to lower refining and
marketing inventories, compared with increased 1994 inventories for
refining and marketing. The 1995 amount was comprised principally
of net income of $82.4 million; depreciation, depletion, and
amortization of $179.8; and a net decrease in current assets and
liabilities, excluding cash and debt, of $40 million.
The company had unused lines of credit and revolving credit
facilities of $644 million at June 30, 1995. Of this amount, $295
million and $200 million can be used to support commercial paper
borrowings of Kerr-McGee Credit Corporation and Kerr-McGee (U.K.)
PLC, respectively.
Cash capital expenditures for the first half of 1995 totaled $259.5
million, compared with $203.3 million for the same 1994 period.
This 28% increase was related principally to continued investments
in offshore China projects and domestic lease acquisitions.
Exploration and production expenditures were 84% of the 1995
amount. Chemicals expenditures were 9% of the total. Management
anticipates that the cash requirements for the next several years
can be provided through internally generated funds and selective
long- and/or short-term borrowings.
See Item 5, "Other Events," for a discussion of the sales of the
discontinued refining and marketing operations.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
As previously reported, Region Six of the United States
Environmental Protection Agency (EPA) conducted an inspection
in May 1992 of the refinery in Wynnewood, Oklahoma.
Following negotiations, Kerr-McGee Refining Corporation (KMRC)
transmitted payment of $150,000 on July 17, 1995, for monetary
sanctions imposed pursuant to a Consent Agreement and Consent
Order issued by the EPA. The refinery, which was sold on
August 1, 1995, was owned by KMRC, a wholly owned subsidiary
of the company.
Reference is made to the West Chicago matter on page 24 of the
company's Form 10-K for the year ended December 31, 1994. For
the report on the current status of this matter, reference is
made to Note F to the Consolidated Statements beginning on
page 6 of this Form 10-Q.
Item 5. Other Events
The company is in the process of disposing of its refining and
marketing assets and plans to exit the business by the end of
the year. The refining and marketing operations are being
reported as a discontinued segment. In connection therewith,
the following sales have been completed:
During the first quarter of 1995, the company sold
substantially all of the assets of the Cotton Valley,
Louisiana, refinery to Calumet Lubricants Company, L.P.
Completed during the second 1995 quarter was the sale of
the Residuum Oil and Supercritical Extraction (ROSE [registered
trademark]) process to M. W. Kellogg Company. On May 1, 1995,
the company sold substantially all the assets of its Oklahoma
City-based Cato Oil and Grease Co. to CITGO Petroleum
Corporation. In early August 1995, the company sold its
Wynnewood, Oklahoma, refinery to Gary-Williams Energy
Corporation and the pipeline gathering system associated
with the Wynnewood refinery to NGC Oil Trading and
Transportation, Inc. On August 8, 1995, the company sold
substantially all of the assets of the Corpus Christi,
Texas, refinery to Koch Refining Company, L.P. and Koch
Exploration Company. Additionally, certain inventories
were liquidated in connection with these asset sales.
To date, the company has received aggregate proceeds of
approximately $325 million. Sales contracts or letters of
intent have been signed on most of the other refining and
marketing assets.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
27.0 Financial Data Schedule
(b) Reports on Form 8-K
None
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.
KERR-McGEE CORPORATION
Date: August 14, 1995 By: (JOHN M. RAUH)
John M. Rauh
Vice President and Controller
and Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FORM
10-Q DATED JUNE 30, 1994 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FORM 10-Q.
</LEGEND>
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