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 QUARTER ENDED JUNE 25, 1994
OR
Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Commission File Number 1-3258
LUKENS INC.
50 South First Avenue, Coatesville, PA 19320-0911
(610) 383-2000
Incorporated in Delaware
I.R.S. Employer Identification Number 23-2451900
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
SHARES OUTSTANDING AS OF AUGUST 2, 1994
Common Stock, $.01 Par Value, 14,613,484
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
Lukens Inc.
Consolidated Statements of Earnings
(Dollars & shares in thousands except per share amounts)
<TABLE>
<CAPTION>
SECOND QUARTER YEAR-TO-DATE
13 Weeks Ended 26 Weeks Ended
June June June June
25, 1994 26, 1993 25, 1994 26, 1993
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net Sales $ 242,212 226,871 463,126 447,987
Operating Costs and Expenses
Cost of products sold 213,595 196,407 421,345 390,448
Selling and administrative expenses 13,893 13,286 27,072 26,075
-------- -------- -------- --------
Total operating costs and expenses 227,488 209,693 448,417 416,523
-------- -------- -------- --------
Operating Earnings 14,724 17,178 14,709 31,464
Interest income 1 16 18 25
Interest expense (3,915) (4,067) (8,012) (8,324)
-------- -------- -------- --------
Earnings Before Income Taxes 10,810 13,127 6,715 23,165
Income tax expense 4,216 5,095 2,619 8,971
-------- -------- -------- --------
Earnings from Continuing Operations-
Before Cumulative Effect of
1993 Accounting Changes 6,594 8,032 4,096 14,194
Discontinued Operations (Note 2)
Earnings from operations, net of tax - 1,497 - 1,513
-------- -------- -------- --------
Earnings Before Cumulative Effect
of 1993 Accounting Changes 6,594 9,529 4,096 15,707
Cumulative Effect of 1993 Accounting
Changes, Net of Tax
Postretirement benefits-SFAS No. 106 - - - (67,222)
Income taxes-SFAS No. 109 - - - 1,321
-------- -------- -------- --------
Net Earnings (Loss) $ 6,594 9,529 4,096 (50,194)
======== ======== ======== ========
Dividend requirements for
preferred stock (503) (472) (1,005) (940)
-------- -------- -------- --------
Net Earnings (Loss) Applicable
to Common Stock $ 6,091 9,057 3,091 (51,134)
======== ======== ======== ========
Earnings (Loss) Per Common Share
Primary
Earnings before cumulative effect
of 1993 accounting changes $ .41 .61 .21 1.00
Net earnings (loss) $ .41 .61 .21 (3.46)
Fully diluted
Earnings before cumulative effect
of 1993 accounting changes $ .39 .57 .21 .94
Net earnings (loss) $ .39 .57 .21 (3.46)
Common Shares and Equivalents Outstanding
Primary 14,695 14,810 14,721 14,797
Fully diluted 16,301 16,439 16,334 16,427
Cash Dividends on Common Stock-
Per Share $ .25 .25 .50 .50
The accompanying notes are an integral part of these statements.
</TABLE>
Lukens Inc.
Consolidated Balance Sheets
(Dollars in thousands)
<TABLE>
<CAPTION>
June December
25, 1994 25, 1993
---------- ----------
<S> <C> <C>
Assets
Current Assets
Cash and cash equivalents $ 5,211 11,483
Receivables, less allowance of $10,351
in 1994 and $11,444 in 1993 124,266 114,951
Inventories
Products finished and in process 96,108 121,437
Raw materials 30,487 32,596
Supplies 4,884 6,027
---------- ----------
131,479 160,060
Deferred income taxes 14,641 15,070
Prepaid expenses and other 2,872 6,175
---------- ----------
Total current assets 278,469 307,739
---------- ----------
Plant and Equipment 792,851 789,780
Less accumulated depreciation 353,038 357,927
---------- ----------
Net plant and equipment 439,813 431,853
---------- ----------
Intangible Assets, net of accumulated amortization
of $4,892 in 1994 and $9,817 in 1993 51,487 54,594
Deferred Income Taxes 24,040 20,498
Other Assets 3,122 2,494
---------- ----------
Total Assets $ 796,931 817,178
========== ==========
Liabilities and Stockholders' Investment
Current Liabilities
Accounts payable $ 84,006 75,540
Accrued employment costs 41,674 52,339
Other accrued expenses 29,157 28,005
Current maturities of long-term debt 7,302 5,821
---------- ----------
Total current liabilities 162,139 161,705
---------- ----------
Long-term Debt (Note 3) 195,426 220,768
Retirement Benefits
Pensions 24,342 19,055
Medical and life insurance 139,081 136,056
Other Liabilities 10,288 12,840
---------- ----------
Total Liabilities 531,276 550,424
---------- ----------
Commitments and Contingencies (Note 4)
Stockholders' Investment
Series preferred stock, 1,000,000 shares authorized
Series B ESOP convertible preferred
(532,774 shares outstanding in 1994 and
541,123 in 1993) 31,966 32,467
Common stock, 40,000,000 shares authorized
and 15,813,259 issued 158 158
Capital in excess of par value 83,307 82,625
Earnings invested 189,796 193,977
Foreign currency translation adjustments (1,013) (1,641)
Deferred compensation - ESOP (24,348) (26,209)
Repurchased stock, at cost (1,237,346 shares
in 1994 and 1,284,273 in 1993) (14,211) (14,623)
---------- ----------
Total stockholders' investment 265,655 266,754
---------- ----------
Total Liabilities and Stockholders' Investment $ 796,931 817,178
========== ==========
The accompanying notes are an integral part of these statements.
</TABLE>
Lukens Inc.
Consolidated Statements of Cash Flows
(Dollars in thousands)
<TABLE>
<CAPTION>
YEAR-TO-DATE
26 Weeks Ended
June June
25, 1994 26, 1993
---------- ----------
<S> <C> <C>
Operating Activity
Net earnings (loss) $ 4,096 (50,194)
Adjustments to Reconcile Net Earnings (Loss) to
Cash Flow from Operating Activity
Depreciation and amortization 22,747 22,467
Cumulative effect of 1993 accounting changes - 65,901
Income taxes deferred (309) 371
Provision for uncollectible accounts 5,084 6,593
Retirement benefit funding less (greater)
than expense 7,254 (3,748)
Changes in working capital affecting operations
Accounts receivable (26,288) (13,484)
Inventories 13,251 6,996
Prepaid expenses and other 2,921 (2,569)
Accounts payable 12,648 9,902
Accrued expenses (14,303) (5,537)
Other, net (64) 320
---------- ----------
Cash flow from operating activity 27,037 37,018
Financing Activity
Long-term debt
Borrowed - 9,000
Repaid (22,029) (14,890)
Dividends paid (8,568) (8,553)
Proceeds from stock options exercised 478 1,361
---------- ----------
Net for financing activity (30,119) (13,082)
Investing Activity
Capital expenditures (50,569) (21,575)
Proceeds from sale of assets/subsidiaries 46,967 -
Other, net 412 (147)
---------- ----------
Net for investing activity (3,190) (21,722)
Cash and Cash Equivalents
Increase (decrease) (6,272) 2,214
Start of period 11,483 14,970
---------- ----------
End of period $ 5,211 17,184
========== ==========
The accompanying notes are an integral part of these statements.
</TABLE>
SELECTED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands except per share amounts)
1. Basis of Presentation
The financial statements are unaudited but reflect all
adjustments (consisting of normal recurring accruals) which are,
in the opinion of management, necessary to a fair statement of
the results for the interim periods presented. These financial
statements should be read in conjunction with the financial
statements and related notes in the 1993 Annual Report to Stock-
holders. Results from any interim period are not necessarily
indicative of the results for a full year.
2. Discontinued Operations
As part of a program, adopted in 1993, to focus Lukens' resources
on its steel businesses, the subsidiaries previously reported in
the Corrosion Protection Group, Safety Products Group and most
subsidiaries in the Diversified Group were reported as
discontinued operations.
In the first quarter of 1994, the safety products and materials-
handling subsidiaries were sold. Net proceeds from the sales
totaled $46,649. Net assets of these subsidiaries as of year-end
1993 were $46,837.
In 1994, earnings from discontinued operations and divestiture
gains or losses are being charged against the discontinued
operations loss provision established in the fourth quarter of
1993. Second quarter 1994 net sales and net loss taken to the
provision were $15,537 and $291, respectively. For the 1994
first half, net sales of discontinued operations were $46,580
with a net loss of $641, excluding a small net gain on
divestitures.
Net sales and income tax expense of the discontinued operations
and an earnings per common share reconciliation (before the
cumulative effect of accounting changes) for 1993 are as follows.
2Q 1993 YTD 1993
------- --------
Net Sales $ 47,101 83,041
Income Tax Expense $ 895 903
Earnings Per Common Share - Primary
Continuing operations $ .51 .90
Discontinued operations .10 .10
------- -------
$ .61 1.00
------- -------
Earnings Per Common Share - Fully Diluted
Continuing operations $ .48 .85
Discontinued operations .09 .09
------- -------
$ .57 .94
------- -------
Net assets of the remaining discontinued operations at the end
of the 1994 second quarter were $40,002.
3. Long-term Debt
During June, a shelf registration for $100,000 of Lukens Inc.
notes was completed. Although there are no immediate plans to
issue the notes, they are available as a financing option for our
five-year, $400,000 capital expenditure program that began in
1993 and other long-term liquidity needs. The notes are
structured to provide Lukens with flexibility in maturities, from
nine months to 30 years, and flexibility in interest rate
structures.
4. Commitments and Contingencies
The company is party to various claims, disputes, legal actions
and other proceedings involving product liability, contracts,
equal employment opportunity, occupational safety, environmental
issues and various other matters. In the opinion of management,
the outcome of these matters should not have a material adverse
effect on the consolidated financial condition or results of
operations of the company.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
(Dollars in thousands)
Changes in Financial Condition during
the Twenty-six Weeks Ended June 25, 1994
Capital Structure
Cash and cash equivalents totaled $5,211 at the end of the second
quarter, a decrease of $6,272 from the end of 1993. Working capital
of $116,330 was down $29,704 from the balance at the end of 1993.
Divestitures of certain discontinued operations caused a decrease in
working capital of $24,238. The current ratio was 1.7 compared to 1.9
at year-end 1993.
Debt at the end of the second quarter was $202,728, a decrease of
$23,861 from the beginning of the year. The decrease was caused
primarily by repayment of short-term notes under our revolving credit
agreements. Also, a $3,000 industrial revenue bond, collateralized
by property owned by one of the discontinued operations, was repaid.
The ratio of long-term debt to capital (long-term debt plus
stockholders' investment) was 42.4 percent, which compared to 45.3
percent at year-end 1993.
During June 1994, a shelf registration for $100,000 of Lukens Inc.
notes was completed. Although there are no immediate plans to issue
the notes, they are available as a financing option for our five-year,
$400,000 capital expenditure program that began in 1993 and other
long-term liquidity needs. The notes are structured to provide Lukens
with flexibility in maturities, from nine months to 30 years, and
flexibility in interest rate structures.
Liquidity
Cash flow from operating activity was $27,037 for the first half of
the year compared to 1993 cash flow of $37,018. Lower results for the
1994 first half and increased working capital requirements contributed
to the drop in cash flow from operating activity. We anticipate that
cash flow from operating activity will continue to benefit from strong
shipment levels, evidenced by an order backlog at the end of the
quarter that totaled $192,797, up 90 percent from the beginning of the
year. The favorable effect of higher shipment levels is expected to
be offset by a lower-value shipment mix and lower selling prices in
the Washington Stainless Group. Higher scrap costs in the Lukens
Steel Group are also expected to be a negative factor. Overall, we
expect 1994 cash flow from operating activity to be in the range of
1993 cash flow.
Currently, the Washington Stainless Group is operating at full melting
capacity. Expansion of stainless steel melting, as part of our
capital expenditure program, will enable Lukens to better meet this
demand.
Financing activity required $30,119, including dividend payments of
$8,568 and debt repayments of $22,029. Investing activity required
$3,190 with proceeds from the discontinued operations divestitures
offset by capital expenditures of $50,569.
Capital expenditure projections for 1994 continue to be high, with
expenditures of approximately $138,000 projected. We anticipate
funding the balance of these expenditures through the combination of
cash flow from operations, debt under an existing committed line of
credit and proceeds from the sale of discontinued operations.
In the long term, Lukens relies on the ability to generate sufficient
cash flows from operating activity to fund investing and financing
requirements and maintain a target long-term debt to capital ratio of
35 percent. Because of our aggressive capital expenditure program,
however, we anticipate exceeding our target long-term debt to capital
ratio until the projected benefits of the program improve cash flow
from operations. Start-up of the plate and sheet processing system
at our Conshohocken, Pennsylvania facility, originally scheduled for
late in 1994, has been delayed until the end of the 1995 first
quarter. The benefits of this system, including lower production
costs and an expanded product range, will likely not be realized until
late in 1995.
Results of Operations for the Quarters Ended
June 25, 1994 and June 26, 1993
Operating Results
Second quarter operating earnings of $14,724 were 14 percent below
1993 earnings of $17,178. Both business groups reported lower results
for the quarter. Lower earnings in the Lukens Steel Group primarily
reflected higher scrap costs and a lower-value shipment mix, partially
offset by improved selling prices. In the Washington Stainless Group,
lower selling prices in sheet and strip products and a lower-value
shipment mix contributed to a decrease in earnings.
Sales for the second quarter were $242,212, up 7 percent from 1993
sales of $226,871, with both business groups contributing to the
increase.
Interest Expense
Interest expense of $3,915 was down 4 percent compared to 1993 expense
of $4,067. The decrease was attributable to lower interest rate swap
expense and lower debt levels.
Income Taxes
The effective tax rate was 39.0 percent in 1994 and 38.8 percent in
1993.
Results From Continuing Operations
Lower operating results caused a decrease in earnings from continuing
operations of 18 percent, from $8,032 in 1993 to $6,594 in 1994.
Discontinued Operations
Earnings from discontinued operations of $1,497 were recognized in
1993. In 1994, earnings from discontinued operations are being
charged against the loss provision established in the fourth quarter
of 1993. For more information on discontinued operations, see Note
2.
Net Earnings
Net earnings of $6,594 were down 31 percent compared to $9,529 in
1993.
Business Group Results
Operating
Net Sales Earnings (Loss)
----------------- -----------------
2Q 1994 2Q 1993 2Q 1994 2Q 1993
------- ------- ------- -------
Lukens Steel $ 122,391 116,721 9,012 10,612
Washington Stainless 123,203 110,150 9,737 10,797
Corporate - - (4,025) (4,231)
Inter-group eliminations ( 3,382) - - -
--------- --------- -------- --------
$ 242,212 226,871 14,724 17,178
--------- --------- -------- --------
Lukens Steel Group
Sales for the second quarter were up 5 percent. Improved selling
prices and higher shipment volumes were the primary causes for
the sales increase. Shipments of 190,900 tons in 1994 were up
3 percent from the 184,700 tons shipped in 1993. Despite the
increase in sales, earnings declined 15 percent. Margins were
impacted by higher scrap costs, which peaked early in the second
quarter, and a lower-value shipment mix. Although scrap costs
have recently declined, these costs are expected to remain at
relatively high levels.
Washington Stainless Group
Second quarter sales were up 12 percent with higher shipment
levels of sheet, strip, and plate products, combined with
improved service center sales, contributing to the sales
increase. Shipped tons were 66,600 in 1994 compared to 54,700
in the 1993 second quarter. Despite the improved sales volume,
earnings were impacted by lower selling prices in sheet and strip
products and a lower-value shipment mix. Production efficiencies
and higher selling prices are anticipated to improve earnings in
the second half.
Results of Operations for the Twenty-six Weeks Ended
June 25, 1994 and June 26, 1993
Operating Results
Year-to-date operating earnings of $14,709 compared to 1993 earnings
of $31,464. Lower operating results were reported by both business
groups. The Lukens Steel Group reported significantly lower results
because of production disruptions and maintenance costs caused by
severe weather conditions in the first quarter of 1994, combined with
increased scrap costs and a lower-value shipment mix. The Washington
Stainless Group experienced lower selling prices in sheet and strip
products and a lower-value shipment mix.
Year-to-date sales were up 3 percent, from $447,987 in 1993 to $463,126
in 1994. Most of the sales increase was attributable to the
Washington Stainless Group which benefited from increased shipped
tons.
Interest Expense
Interest expense of $8,012 was down 4 percent from 1993 expense of
$8,324. The decrease was attributable to lower interest rate swap
expense and higher amounts of capitalized interest.
Income Taxes
The effective tax rate was 39.0 percent in 1994 and 38.7 percent in
1993.
Results From Continuing Operations
Lower operating earnings, particularly in the first quarter of 1994,
translated into a 71 percent decrease in earnings from continuing
operations. Earnings of $4,096 were reported in the first half of
1994 compared to 1993 earnings of $14,194.
Discontinued Operations
Earnings from discontinued operations of $1,513 were recognized in the
first half of 1993. In 1994, earnings from discontinued operations
are being charged against the loss provision established in the fourth
quarter of 1993. For more information on discontinued operations, see
Note 2.
Net Earnings
Net earnings of $4,096 were reported in the 1994 first half. In 1993,
earnings, before the cumulative effect of accounting changes, were
$15,707.
Business Group Results
Operating
Net Sales Earnings (Loss)
------------------ ------------------
YTD 1994 YTD 1993 YTD 1994 YTD 1993
-------- -------- -------- --------
Lukens Steel $ 232,552 227,140 7,673 19,120
Washington Stainless 236,620 220,847 15,027 20,188
Corporate - - (7,991) (7,844)
Inter-group eliminations ( 6,046) - - -
--------- --------- -------- --------
$ 463,126 447,987 14,709 31,464
--------- --------- -------- --------
Lukens Steel Group
Sales for the first half of 1994 benefited from higher selling
prices and were 2 percent higher than 1993 sales. Shipments of
363,000 tons in 1994 remained essentially unchanged from the
364,800 tons shipped in 1993. Despite the improved sales, first
half earnings declined 60 percent. The decline resulted from
several factors including higher scrap costs, which peaked early
in the second quarter, and a lower-value shipment mix. Also,
first quarter production disruptions and maintenance costs were
experienced due to severe weather conditions. Although scrap
costs have recently declined, these costs are expected to remain
at relatively high levels. Earnings in 1994 are not expected to
exceed 1993 earnings before fourth quarter charges.
Washington Stainless Group
Year-to-date 1994 sales were up 7 percent. Sales improvements
at our service center operations and increased sales volumes in
sheet, strip, and plate products, were partially offset by lower
selling prices on these products. Shipped tons were 124,400 in
1994 compared to 110,700 in 1993. Despite the higher shipment
volume, lower selling prices and a lower-value shipment mix
contributed to an earnings decline of 26 percent. Production
efficiencies and higher selling prices are anticipated to improve
earnings in the second half. For the year, earnings are
anticipated to be in the range of 1993 earnings.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
Lukens has been identified by the United States
Environmental Protection Agency as a "potentially
responsible party," under Federal Superfund law, at certain
waste disposal sites. The company's exposure to remediation
costs at these sites is dependent upon several factors
including changing laws and regulations, the availability
and application of technology, the allocation of costs among
all potentially responsible parties, the method of
remediation selected, and the length of time involved in
remediation. Exposure is expected to be limited based on
the number and financial strength of other potentially
responsible parties and the volumes of waste which might be
attributable to Lukens. Any costs incurred for clean-up of
these sites will likely be paid out over several years. In
the opinion of management, any liability, over amounts
already accrued, will not have a material adverse effect on
the company's financial position.
As of July 31, 1994, 114 of the approximately 350 workers'
compensation claimants who had alleged hearing loss against
Lukens Steel Company released their claims and received
payments.
Item 2. Changes in Securities.
Information regarding a shelf registration of Lukens Inc.
notes is incorporated herein by reference to Note 3.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
(11) Statement regarding computation of per share earnings
(b) Reports on Form 8-K
No report on Form 8-K was filed during the quarter ended
June 25, 1994.
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.
LUKENS INC.
August 4, 1994 R. W. Van Sant
-----------------------------
R. W. Van Sant
Chairman and Chief Executive
Officer
August 4, 1994 John N. Maier
-----------------------------
John N. Maier
Vice President and Controller
Exhibit 11
Lukens Inc.
Computation of Primary Earnings Per Common Share
(Dollars and shares in thousands except per share amounts)
<TABLE>
<CAPTION> SECOND QUARTER YEAR-TO-DATE
13 Weeks Ended 26 Weeks Ended
June June June June
25, 1994 26, 1993 25, 1994 26, 1993
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net earnings (loss) applicable to
common stock
Earnings before cumulative effect
of 1993 accounting changes $ 6,594 9,529 4,096 15,707
ESOP dividend requirements
Preferred stock dividends declared (639) (651) (1,286) (1,303)
Tax benefit on dividends 136 179 281 363
-------- -------- -------- --------
Earnings before cumulative effect
of 1993 accounting changes
applicable to common stock 6,091 9,057 3,091 14,767
Cumulative effect of 1993 accounting
changes - - - (65,901)
-------- -------- -------- --------
Net earnings (loss) applicable
to common stock $ 6,091 9,057 3,091 (51,134)
======== ======== ======== ========
Weighted average number of common
shares and equivalents outstanding
Weighted average number of common
shares outstanding 14,560 14,505 14,548 14,493
Common stock equivalents:
Stock options, assuming exercised
at average market price 135 305 173 304
-------- -------- -------- --------
Weighted average number of common
shares and equivalents outstanding 14,695 14,810 14,721 14,797
======== ======== ======== ========
Primary earnings per common share
Earnings before cumulative effect
of 1993 accounting changes $ 0.41 0.61 0.21 1.00
Cumulative effect of 1993
accounting changes - - - (4.46)
-------- -------- -------- --------
Net earnings (loss) $ 0.41 0.61 0.21 (3.46)
======== ======== ======== ========
</TABLE>
Exhibit 11
Lukens Inc.
Computation of Fully Diluted Earnings Per Common Share
(Dollars and shares in thousands except per share amounts)
<TABLE>
<CAPTION> SECOND QUARTER YEAR-TO-DATE
13 Weeks Ended 26 Weeks Ended
June June June June
25, 1994 26, 1993 25, 1994 26, 1993
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net earnings (loss) applicable to
common stock
Earnings before cumulative effect
of 1993 accounting changes $ 6,594 9,529 4,096 15,707
Incremental cash contribution to
the ESOP assuming conversion of
preferred stock to common (240) (244) (482) (488)
Tax benefit on the incremental
cash contribution 84 93 169 187
-------- -------- -------- --------
Earnings before cumulative effect
of 1993 accounting changes
applicable to common stock 6,438 9,378 3,783 15,406
Cumulative effect of 1993
accounting changes - - - (65,901)
-------- -------- -------- --------
Net earnings (loss) applicable
to common stock $ 6,438 9,378 3,783 (50,495)
======== ======== ======== ========
Weighted average number of common
shares and equivalents outstanding
Weighted average number of common
shares outstanding 14,560 14,505 14,548 14,493
Common stock equivalents:
Stock options, assuming exercised
at greater of ending or average
market price 135 307 173 305
Series B ESOP preferred stock 1,606 1,627 1,613 1,629
-------- -------- -------- --------
Weighted average number of common
shares and equivalents outstanding 16,301 16,439 16,334 16,427
======== ======== ======== ========
Fully diluted earnings per common share
Earnings before cumulative effect
of 1993 accounting changes $ 0.39 0.57 0.21 * 0.94
======== ======== ======== ========
Net earnings (loss) $ 0.39 0.57 0.21 * (3.46)*
======== ======== ======== ========
* Calculation results in an improvement over primary earnings per share.
As a result, fully diluted earnings per share equals primary earnings
per share.
</TABLE>
