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 March 31, 1997
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 April 30,
1997: 47,935,629
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
KERR-McGEE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Three Months Ended
March 31,
(Millions of dollars, except per-share amounts) 1997 1996
--------------------
Sales $468.0 $454.8
------ ------
Costs and Expenses
Costs and operating expenses 258.1 250.2
Selling, general, and administrative expenses 29.3 32.4
Depreciation and depletion 68.9 65.6
Exploration, including dry holes and
amortization of undeveloped leases 13.6 22.5
Taxes, other than income taxes 15.4 17.1
Interest and debt expense 11.7 12.3
------ -----
Total Costs and Expenses 397.0 400.1
------ -----
71.0 54.7
Other Income 29.3 15.3
------ -----
Income before Income Taxes 100.3 70.0
Provision for Income Taxes 30.1 22.1
------ -----
Net Income $ 70.2 $47.9
====== =====
Net Income per Common Share $ 1.45 $ .94
====== =====
Cash Dividends Declared per Common Share $ .45 $ .41
Average Number of Shares Outstanding (thousands) 48,064 50,562
The accompanying notes are an integral part of this statement.
<PAGE>
<TABLE>
KERR-McGEE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<CAPTION>
March 31, December 31,
(Millions of dollars) 1997 1996
---------------------------
<S> <C> <C>
ASSETS
Current Assets
Cash $ 155.0 $ 120.9
Notes and accounts receivable 321.7 374.4
Inventories 189.5 218.2
Deposits and prepaid expenses 91.2 91.1
-------- --------
Total Current Assets 757.4 804.6
-------- --------
Property, Plant, and Equipment 4,498.8 4,836.9
Less reserves for depreciation,
depletion, and amortization 2,574.2 2,889.5
-------- --------
1,924.6 1,947.4
-------- --------
Investments and Other Assets 390.8 372.5
-------- --------
$3,072.8 $3,124.5
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-term borrowings $ 21.9 $ 36.4
Accounts payable 220.9 262.3
Other current liabilities 184.7 186.0
-------- --------
Total Current Liabilities 427.5 484.7
-------- --------
Long-Term Debt 626.5 625.9
-------- --------
Deferred Credits and Reserves 614.4 646.4
-------- --------
Stockholders' Equity
Common stock, par value $1 - 150,000,000
shares authorized, 54,029,828 shares issued at
3-31-97 and 53,862,347 shares issued at 12-31-96 54.0 53.9
Capital in excess of par value 341.7 334.2
Preferred stock purchase rights .5 .5
Retained earnings 1,396.5 1,348.0
Unrealized gain on securities available-for-sale 9.6 11.6
Common shares in treasury, at cost - 6,032,265
shares at 3-31-97 and 5,568,815 at 12-31-96 (337.0) (305.2)
Deferred compensation (60.9) (75.5)
-------- --------
Total Stockholders' Equity 1,404.4 1,367.5
-------- --------
$3,072.8 $3,124.5
======== ========
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 statement.
</TABLE>
<PAGE>
<TABLE>
KERR-McGEE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<CAPTION>
Three Months Ended
March 31,
(Millions of dollars) 1997 1996
--------------------
<S> <C> <C>
Operating Activities
Net income $ 70.2 $ 47.9
Adjustments to reconcile net income to net cash
provided by operating activities -
Depreciation, depletion, and amortization 69.9 68.1
Deferred income taxes 13.6 15.6
Gain on sale and retirement of assets (7.7) (1.2)
Realized gain on available-for-sale securities (4.1) (9.0)
Provision for reclamation and remediation
of inactive sites - 9.2
Noncash items affecting net income 4.8 7.7
Other net cash provided by (used in) operating activities (9.2) 11.0
----- ------
Net Cash Provided by Operating Activities 137.5 149.3
----- ------
Investing Activities
Capital expenditures (67.2) (101.4)
Other investing activities 23.7 19.5
------ ------
Net Cash Used in Investing Activities (43.5) (81.9)
------ ------
Financing Activities
Decrease in short-term borrowings (14.5) (34.9)
Issuance of long-term debt - 16.6
Purchase of treasury stock (33.2) (58.3)
Dividends paid (19.9) (21.3)
Other financing activities 7.7 6.7
------ ------
Net Cash Used in Financing Activities (59.9) (91.2)
------ ------
Net Increase (Decrease) in Cash and Cash Equivalents 34.1 (23.8)
Cash and Cash Equivalents at Beginning of Period 120.9 87.3
------ ------
Cash and Cash Equivalents at End of Period $155.0 $ 63.5
====== ======
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
KERR-McGEE CORPORATION AND SUBSIDIARY COMPANIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1997
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 regulations. 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 48,311,546 and 50,852,508 for the three
months ended March 31, 1997 and 1996, respectively.
On March 3, 1997, the Financial Accounting Standards Board issued FAS No.
128, "Earnings per Share," which replaces primary earnings per share (EPS)
with basic EPS. Basic EPS includes no dilution and is computed by dividing
income available to common stockholders by the weighted-average number of
common shares outstanding for the period. The statement is effective for
periods ending after December 15, 1997, and does not allow for early
adoption. Upon adoption, restatement of prior years' EPS will be required.
EPS calculated under the guidance of the statement increased the reported
EPS to $1.46 and $.95 at March 31, 1997 and 1996, respectively. The company
believes the effect on its EPS in future periods will be immaterial.
C. Net cash provided by operating activities reflects cash payments for income
taxes and interest as follows:
Three Months Ended
March 31,
(Millions of dollars) 1997 1996
-------------------
Income taxes $19.2 $ 1.6
Interest 11.6 12.4
D. The company held U.S. government obligations and equity securities
considered to be available for sale at March 31, 1997 and December 31, 1996.
These financial instruments are carried in the Consolidated Balance Sheet at
fair value, which is based on quoted market prices. The company held no
securities classified as held to maturity or trading during the respective
periods. At March 31, 1997 and December 31, 1996, these financial
instruments were as follows:
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
------------------------------ -----------------------
Gross Unrealized
Fair Holding Gains Fair Gross Unrealized
(Millions of dollars) Value Cost (Losses) Value Cost Holding Gains
<S> <C> <C> <C> <C> <C> <C>
Equity Securities $18.3 $ 2.5 $15.8 $21.9 $ 3.1 $18.8
U.S. Government Obligations
Maturing within one year 18.4 18.4 - 25.7 25.7 -
Maturing between one
and four years 12.6 12.9 (.3) - - -
----- ------ ----- ----- ----- -----
Total $49.3 $33.8 $15.5 $47.6 $28.8 $18.8
===== ===== ===== ===== ===== =====
</TABLE>
During the first quarter of 1997, the company sold equity securities
considered to be available for sale. Proceeds from the sale totaled $4.7
million, resulting in a realized gain of $4.1 million before income taxes.
The average cost of the securities was used in computing the realized gain.
Equity securities are carried in the Consolidated Balance Sheet as
Investments and Other Assets. U.S. government obligations are carried as
Current Assets or Investments and Other Assets, depending upon their
maturity. The change in the equity component for unrealized holding gains
and losses, net of income taxes, for the first quarter of 1997 and 1996 was
as follows:
Three Months Ended
March 31,
(Millions of dollars) 1997 1996
--------------------
Balance, January 1 $11.6 $25.9
Net realized gains (2.5) (5.6)
Net unrealized holding gains .5 4.0
----- -----
Balance, March 31 $ 9.6 $24.3
===== =====
E. Investments in equity affiliates totaled $250.1 million at March 31, 1997,
and $243.7 million at December 31, 1996. Equity income related to the
investments and included in Other Income in the Consolidated Statement of
Income totaled $9.5 million and $1.2 million for the three months ended
March 31, 1997 and 1996, respectively.
F. CONTINGENCIES
WEST CHICAGO -
In 1973, a wholly owned subsidiary, Kerr-McGee Chemical Corporation (KMCC),
closed the facility located in West Chicago, Illinois, that processed
thorium ores. Operations resulted in some low-level radioactive
contamination at the site, and in 1979, KMCC filed a plan with the Nuclear
Regulatory Commission (NRC) to decommission the facility. The NRC
transferred jurisdiction of this site to the State of Illinois (the State)
in 1990. The following discusses the current status of various matters
associated with this closed facility.
Decommissioning - In 1994, KMCC, the City of West Chicago (the City), and
the State reached agreement on Phase I of the decommissioning plan for the
closed West Chicago facility. Pursuant to the Phase I agreement, KMCC began
shipping material from the site to a licensed permanent disposal facility in
Utah during 1994.
In February 1997, KMCC executed an agreement with the City as to the terms
and conditions for completing the final phase of the decommissioning work,
the bulk of which is expected to be completed about four to six years after
receiving the necessary license amendment. The State has indicated approval
of this agreement, and KMCC expects a license amendment that will enable
KMCC to proceed with the final phase of the decommissioning work.
Under the Illinois Uranium and Thorium Mill Tailings Control Act (the Act),
KMCC is obligated to pay an annual storage fee of $2 per cubic foot of
byproduct material located at the former facility. Under the Phase I
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 and will continue to seek
reimbursement for future amounts paid under the Act as decommissioning costs
are incurred.
Pursuant to Title X of the Energy Policy Act of 1992 (Title X), the United
States Department of Energy is obligated to reimburse KMCC for certain
decommissioning costs. Title X was amended in 1996 to increase the amount
authorized to $65 million plus inflation adjustments. Through the first
quarter of 1997, KMCC has been reimbursed approximately $28 million under
Title X.
At March 31, 1997, the remaining reserves provided for the cost to
decommission the site total $172 million (without regard to any further
recovery under Title X), payable over the course of the decommissioning
work.
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 unilateral administrative orders for two of these areas (referred
to as the residential area and Reed-Keppler Park), which require KMCC to
conduct removal actions to excavate contaminated soils and ship the soils
elsewhere for disposal. At March 31, 1997, the remaining reserves to clean
up the residential area and Reed-Keppler Park total $19 million. Without
waiving any of its rights or defenses, KMCC has begun the cleanup of these
two sites and anticipates completing the work within four years.
Judicial Proceedings - In December 1996, a lawsuit was filed against the
company and its subsidiary, KMCC, in Illinois state court on behalf of a
purported class of present and former West Chicago residents seeking damages
for alleged diminution in property values and the establishment of a medical
monitoring fund to benefit those allegedly exposed to thorium wastes
originating from the former facility. The case recently has been removed to
federal court and is being vigorously defended.
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. At March 31, 1997, the remaining reserves provided for the cost
to investigate and/or remediate all presently identified sites of former or
current operations total $292 million, which includes $191 million for the
former West Chicago facility, the residential area and Reed-Keppler Park.
The ultimate costs to decommission these sites are difficult to estimate
because of the numerous contingencies. Actual costs could differ from those
currently estimated as information becomes available for sites that are not
now included in the reserve, if contamination is not as expected, or field
conditions or other variables differ significantly from those that are now
assumed. Actual costs will be reduced by the amounts recoverable under Title
X and other government programs. Expenditures from inception through March
31, 1997, totaled $356 million for currently known sites.
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 environmental and other 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, the ultimate cost will
depend on the outcomes of the above-noted uncertainties. Therefore, it is
possible that 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.
<PAGE>
Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition.
Comparison of 1997 Results with 1996 Results
CONSOLIDATED OPERATIONS
First-quarter 1997 net income totaled $70.2 million, compared with $47.9 million
for the same 1996 period. Operating profit in the 1997 first quarter was 17%
more than for the same 1996 period due to improved results from the exploration
and production unit, partially offset by lower results from chemical and coal
operations. The increase in operating profit was due primarily to higher crude
oil and natural gas sales prices, partially offset by lower crude oil and
natural gas sales volumes, lower titanium dioxide pigment and coal sales prices
and higher pigment production costs.
First-quarter 1997 nonoperating income was $.2 million, compared with expense of
$15.3 million for the 1996 quarter due primarily to lower environmental
provisions, higher equity income of $8.3 million primarily from the company's
31% investment in Devon Energy Corporation (see Note E), and higher foreign
currency transaction gains, partially offset by lower realized gains on
available-for-sale securities.
The provision for income taxes was $30.1 million, compared with $22.1 million
for the 1996 first quarter. The increase was due to higher pretax income.
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 first quarter of 1997, compared with the same period last year.
Three Months Ended
March 31,
(Millions of dollars) 1997 1996
--------------------
Sales
Exploration and production $200.3 $189.8
Chemicals 183.4 175.2
Coal 84.2 89.7
Other .1 .1
------ ------
Total Sales $468.0 $454.8
====== ======
Operating Profit (Loss)
Exploration and production $ 68.0 $ 34.6
Chemicals 15.2 30.6
Coal 15.3 18.0
Other 1.6 2.1
------ ------
Total Operating Profit 100.1 85.3
Nonoperating Income (Expense) .2 (15.3)
------ ------
Income before Income Taxes 100.3 70.0
Provision for Income Taxes 30.1 22.1
------ ------
Net Income $ 70.2 $ 47.9
====== ======
Exploration and Production -
Operating profit for the first quarter of 1997 was $68 million, compared with
$34.6 million for the same 1996 period. First-quarter 1997 operating profit was
up due primarily to higher crude oil and natural gas sales prices and lower
exploration and operating expenses. Partially offsetting were lower crude oil
and natural gas liquids sales volumes as a result of the normal production
declines in the North Sea and December 1996 merger of the company's North
American onshore properties and the divestiture of nonstrategic oil and gas
properties.
Revenues were $200.3 million and $189.8 million for the three months ended March
31, 1997 and 1996, respectively. The following table shows the company's average
crude oil and natural gas sales prices and proprietary volumes for the first
quarter of 1997 and 1996.
Three Months Ended Percent
March 31, Increase
1997 1996 (Decrease)
-----------------------------------
Crude oil sales (thousands of bbls/day)
United States 25.4 27.1 (6)
North Sea 26.0 32.0 (19)
China 6.6 - NM
Canada - 4.2 NM
----- ------
Total 58.0 63.3 (8)
===== ======
Average crude oil sales price (per barrel)
United States $20.90 $16.33 28
North Sea 21.52 16.67 29
China 20.72 - NM
Canada - 14.75 NM
Average $21.14 $16.39 29
Natural gas sold (MMCF/day)
United States 183 189 (3)
North Sea 34 35 (3)
Canada - 35 NM
----- ------
Total 217 259 (16)
===== ======
Average natural gas sales price (per MCF)
United States $2.79 $ 1.93 45
North Sea 2.98 2.48 20
Canada - 1.10 NM
Average $2.82 $ 1.89 49
Chemicals -
Chemicals' first-quarter 1997 operating profit was $15.2 million on revenues of
$183.4 million, compared with operating profit of $30.6 million on revenues of
$175.2 million for the same 1996 quarter. Revenues increased primarily due to
higher pigment and forest product sales volumes and higher forest product sales
prices, partially offset by lower pigment sales prices. Operating profit
declined due to lower pigment sales prices and higher per-unit production costs.
Coal -
First-quarter 1997 coal operating profit was $15.3 million on revenues of $84.2
million, compared with operating profit of $18 million on revenues of $89.7
million for the same 1996 quarter. Revenues declined primarily due to lower
average sales prices. Operating profit decreased primarily due to the lower
revenues and higher per-unit production costs at the company's underground mine
resulting from a temporary reduction in longwall coal production.
Financial Condition
At March 31, 1997, the company's net working capital was $329.9 million,
compared with $319.9 million at December 31, 1996. The current ratio was 1.8 to
1 at March 31, 1997, compared with 1.7 to 1 at December 31, 1996, and 1.4 to 1
at March 31, 1996. The company's percentage of total debt to total
capitalization was 32% at March 31, 1997, compared with 33% at December 31,
1996, and 34% at March 31, 1996.
The company had unused lines of credit and revolving credit facilities of $610
million at March 31, 1997. Of this amount, $265 million and $270 million can be
used to support commercial paper borrowings of Kerr-McGee Credit Corporation and
Kerr-McGee Oil (U.K.) PLC, respectively.
The company's wholly owned subsidiary, Kerr-McGee China Petroleum Ltd., amended
its revolving credit agreement with several banks providing for borrowings up to
$105 million, of which $60 million was outstanding at March 31, 1997. The
company continues as guarantor of the agreement. The agreement was amended in
February 1997 to extend the period during which borrowings may be made to March
6, 2000. Interest is payable at varying rates.
In April 1997, the company and Kerr-McGee Oil (U.K.), a wholly owned subsidiary,
Kerr-McGee Oil (U.K.) PLC, amended their revolving credit agreement with several
banks. The agreement previously provided for borrowings of up to $230 million,
none of which was outstanding at March 31, 1997. The company continues as
guarantor of the agreement. The agreement was amended to reduce the amount of
borrowings available to $225 million and to separate the agreement into two loan
facility arrangements. Under the Facility A arrangement, $150 million may be
borrowed through April 28, 2002. Under the Facility B arrangement, $75 million
is available through April 24, 1998. Prior to the termination date of the
Facility B arrangement and in accordance with the terms of the agreement,
Kerr-McGee Oil (U.K.) PLC may request an extension of the commitment period for
not more than one year. Interest is payable at varying rates.
First-quarter 1997 cash capital expenditures totaled $67.2 million, compared
with $101.4 million for the same period last year. Chemical expenditures were
43% of the 1997 amount. Exploration and production expenditures, principally in
the Gulf of Mexico, North Sea, and offshore China, were 40% of the total.
Management anticipates that the cash requirements for the next several years can
be provided through internally generated funds and selective short-term and/or
long-term borrowings.
During the first quarter 1997, the company purchased 465,000 shares of its stock
at a cost of $31.9 million. Since initiation of the stock repurchase program in
October 1995 through March 31, 1997, 4.4 million shares have been purchased at a
cost $274.6 million.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 4. Submission of Matters to a Vote of Security Holders.
(a) The 1997 annual meeting of stockholders was held on May 13, 1997.
(b) The following matters were voted upon at the annual meeting:
(1) Following are the directors elected at the 1997 annual meeting
and the tabulation of votes related to each nominee.
Votes
Affirmative Withheld
Paul M. Anderson 40,524,882 26,572
Bennett E. Bidwell 40,527,257 24,197
Luke R. Corbett 40,492,585 58,869
Martin C. Jischke 40,542,934 8,520
Tom J. McDaniel 40,524,038 27,416
William C. Morris 40,547,349 4,105
John J. Murphy 40,537,390 14,064
Richard M. Rompala 40,526,694 24,760
Farah M. Walters 40,543,147 8,307
(2) The stockholders ratified the appointment of Arthur Andersen LLP
as independent public accountants for 1997. Affirmative votes
were 43,731,308; negative votes were 102,660 and abstentions were
99,958.
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 May 15, 1997 By: (Deborah A. Kitchens)
------------ ---------------------
Deborah A. Kitchens
Vice President and
Controller and Chief
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Balance Sheet at March 31, 1997, and the Consolidated Statement of
Income for the period ending March 31, 1997, and is qualified in its entirety by
reference to such Form 10-Q.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 155000
<SECURITIES> 0
<RECEIVABLES> 321700
<ALLOWANCES> 0
<INVENTORY> 189500
<CURRENT-ASSETS> 757400
<PP&E> 4498800
<DEPRECIATION> 2574200
<TOTAL-ASSETS> 3072800
<CURRENT-LIABILITIES> 427500
<BONDS> 0
0
0
<COMMON> 54000
<OTHER-SE> 1350400
<TOTAL-LIABILITY-AND-EQUITY> 3072800
<SALES> 468000
<TOTAL-REVENUES> 468000
<CGS> 258100
<TOTAL-COSTS> 397000
<OTHER-EXPENSES> (29300)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 11700
<INCOME-PRETAX> 100300
<INCOME-TAX> 30100
<INCOME-CONTINUING> 70200
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 70200
<EPS-PRIMARY> 1.45
<EPS-DILUTED> 0
</TABLE>
