UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
(X) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the period ended September 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: 1-655
Maytag Corporation
(Exact name of registrant as specified in its charter)
Delaware 42-0401785
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
403 West 4th Street North, Newton, Iowa 50208
(Address of principal executive offices) (Zip Code)
515-792-8000
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report.)
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 September 30, 1995:
Common Stock, $1.25 Par Value - 107,949,443
Page 1 of 17<PAGE>
FORM 10-Q
MAYTAG CORPORATION
Quarter Ended September 30, 1995
I N D E X
Page
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Statements of Consolidated Income 3
Condensed Statements of Consolidated Financial Condition 4
Condensed Statements of Consolidated Cash Flows 6
Notes to Condensed Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 12
Computation of Per Share Earnings 14
Computation of Ratio of Earnings to Fixed Charges 16
Financial Data Schedule 17
2<PAGE>
Part I FINANCIAL INFORMATION
Item 1. Financial Statements
MAYTAG CORPORATION
Condensed Statements of Consolidated Income
(Unaudited)
(Thousands of dollars except per share data)
Third Quarter Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
Net sales $ 726,371 $ 848,930 $2,349,983 $2,509,880
Cost of sales 538,741 618,360 1,740,796 1,845,204
Gross profit 187,630 230,570 609,187 664,676
Selling, general and
administrative expenses 113,248 144,307 382,573 417,621
Operating income 74,382 86,263 226,614 247,055
Interest expense (11,355) (18,355) (40,891) (55,830)
Loss on business disposition (140,792)
Settlement of lawsuit (16,500) (16,500)
Other - net 3,477 2,833 3,679 3,895
Income before income
taxes, extraordinary item
and cumulative effect of
accounting change 50,004 70,741 32,110 195,120
Income taxes 20,001 9,711 63,722 61,950
Income (loss) before
extraordinary item and
cumulative effect of
accounting change 30,003 61,030 (31,612) 133,170
Extraordinary item -
loss on early retirement
of debt (2,057) (5,480)
Cumulative effect of
accounting change (3,190)
Net income (loss) $ 27,946 $ 61,030 $ (37,092) $ 129,980
Income (loss) per average
share of Common stock:
Income (loss) before
extraordinary item and
cumulative effect of
accounting change $ 0.28 $ 0.57 $ (0.30) $ 1.25
Extraordinary item - loss
on early retirement of
debt (0.02) (0.05)
Cumulative effect of
accounting change (0.03)
Net income (loss) $ 0.26 $ 0.57 $ (0.35) $ 1.22
Dividends per Common
share $ 0.125 $ 0.125 $ 0.375 $ 0.375
Average shares outstanding 107,312 106,878 107,053 106,772
See notes to condensed consolidated financial statements.
3<PAGE>
MAYTAG CORPORATION
Condensed Statements of Consolidated Financial Condition
September 30 December 31
1995 1994
(Unaudited)
(Thousands of dollars)
ASSETS
Current Assets
Cash and cash equivalents $ 134,671 $ 110,403
Accounts receivable 502,738 567,531
Inventories:
Finished products 181,857 254,345
Work in process, raw materials and supplies 111,475 132,924
293,332 387,269
Deferred income taxes 48,206 45,589
Other current assets 25,572 19,345
Total current assets 1,004,519 1,130,137
Noncurrent Assets
Deferred income taxes 80,020 72,394
Pension investments 1,497 112,522
Intangible pension asset 84,653 84,653
Other intangibles 302,800 310,343
Other noncurrent assets 33,072 44,979
502,042 624,891
Property, Plant and Equipment 1,381,039 1,456,755
Less allowance for depreciation 702,192 707,456
Total property, plant and equipment 678,847 749,299
Total Assets $ 2,185,408 $ 2,504,327
See notes to condensed consolidated financial statements.
4<PAGE>
MAYTAG CORPORATION
Condensed Statements of Consolidated Financial Condition - Continued
September 30 December 31
1995 1994
(Unaudited)
(Thousands of dollars)
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities
Notes payable $ $ 45,148
Accounts payable 146,168 212,441
Compensation to employees 54,952 61,311
Accrued liabilities 146,544 146,086
Income taxes payable 8,310 26,037
Current maturities of long-term debt 3,300 43,411
Total current liabilities 359,274 534,434
Noncurrent liabilities
Deferred income taxes 32,638 38,375
Long-term debt 536,759 663,205
Postretirement benefits other than
pensions 424,313 412,832
Pension liability 70,868 59,363
Other noncurrent liabilities 66,895 64,406
Total noncurrent liabilities 1,131,473 1,238,181
Shareowners' Equity
Common stock
Authorized - 200,000,000 shares
(par value $1.25)
Issued - 117,150,593 shares,
including shares in
treasury 146,438 146,438
Additional paid-in capital 473,251 477,153
Retained earnings 342,711 420,174
Cost of Common stock in treasury
(1995 - 9,201,150 shares; 1994 -
9,836,447 shares) (205,080) (218,745)
Employee stock plans (58,327) (60,816)
Foreign currency translation (4,332) (32,492)
Total shareowners' equity 694,661 731,712
Total Liabilities and Shareowners'
Equity $ 2,185,408 $ 2,504,327
See notes to condensed consolidated financial statements.
5<PAGE>
MAYTAG CORPORATION
Condensed Statements of Consolidated Cash Flows
(Unaudited)
Nine Months Ended
September 30
1995 1994
(Thousands of Dollars)
Operating Activities
Net income (loss) $ (37,092) $ 129,980
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Loss on business disposition 140,792 ---
Depreciation and amortization 85,215 88,614
Deferred income taxes (18,558) (1,265)
Changes in selected working capital items:
Inventories (9,445) (1,639)
Receivables (27,111) (113,467)
Other current assets 23,887 (1,194)
Reorganization reserve (903) (23,489)
"Free flights" reserve (388) (25,622)
Other current liabilities (2,167) 24,665
Net change in pension assets and liabilities 12,439 10,652
Postretirement benefits 11,481 16,045
Other - net 13,126 (4,632)
Net cash provided by operating activities 191,276 98,648
Investing Activities
Cash received from disposition ($164,280), net of
cash in business sold ($15,783) 148,497 ---
Capital expenditures - net (98,458) (50,753)
Net cash provided by (used in) investing
activities 50,039 (50,753)
Financing Activities
Decrease in long-term debt (163,330) (4,480)
Decrease in notes payable (29,808) (39,001)
Stock options exercised and other common stock
transactions 12,686 10,941
Dividends (40,386) (40,178)
Net cash used in financing activities (220,838) (72,718)
Effect of exchange rates on cash 3,791 6,907
Increase (decrease) in cash and cash equivalents 24,268 (17,916)
Cash and cash equivalents at beginning of year 110,403 31,730
Cash and cash equivalents at end of period $ 134,671 $ 13,814
See notes to condensed consolidated financial statements.
6<PAGE>
MAYTAG CORPORATION
Notes to Condensed Consolidated Financial Statements
September 30, 1995
(Unaudited)
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments considered
necessary for a fair presentation have been included. Operating results for the
nine month period ended September 30, 1995 are not necessarily indicative of the
results that may be expected for the year ended December 31, 1995. For further
information, refer to the consolidated financial statements and footnotes
included in the Maytag Corporation annual report on Form 10-K for the year ended
December 31, 1994.
Certain reclassifications have been made to prior years' financial statements to
conform with the 1995 presentation.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
COMPARISON OF 1995 WITH 1994
NET SALES
Net sales in the third quarter of 1995 decreased 14.4 percent from the third
quarter of 1994 as reported; however, after excluding combined sales totaling
$122.6 million in the third quarter of 1994 of Hoover Australia and Hoover
Europe, which were sold in December 1994 and June 1995, respectively, sales in
the third quarter of 1995 were approximately the same as in the comparable
quarter of 1994. The North American Appliance Group had third quarter sales of
$685.7 million, up 1.1 percent from sales of $678.3 million in the 1994 period.
The Group's performance in 1995 is consistent with the overall U.S. industry
performance for comparable major product categories. The U.S. appliance
industry for the remainder of 1995 is expected to be below the record shipment
levels which occurred in 1994 due to downward inventory adjustments by dealers
and a slowdown in general economic conditions. The 1996 appliance industry in
the U.S. is expected to be consistent with or up slightly compared to 1995.
Dixie-Narco's sales in the third quarter were down 15.2 percent to $40.7
million, compared to $48.0 million in the third quarter of 1994. The decrease
in Dixie-Narco's sales resulted from decreased bottler demand for venders in
both the U.S. and foreign markets and for glass door coolers sold domestically.
Net sales for the first nine months of 1995 were down 6.4 percent from the first
nine months of 1994 as reported, but up 1.1 percent after excluding combined
sales of Hoover Australia and Hoover Europe of $181.2 million in 1995 and $364.9
million in 1994. The North American Appliance Group had sales for the first
nine months of 1995 of $2.01 billion, up 0.9 percent from sales of $2 billion in
7<PAGE>
the same 1994 period. Dixie-Narco's sales for the first nine months of 1995
were up 3.5 percent to $154.5 million, compared to $149.3 million in the first
nine months of 1994.
GROSS PROFIT
Gross margin as a percent of sales decreased 1.4 percentage points from the
third quarter and 0.6 percentage points from the first nine months of 1994
primarily due to an increase in material costs.
The Company continues to experience cost increases in many commodities,
particularly steel, plastics and corrugated materials. A portion of these
increases is expected to be offset with internal cost reduction initiatives.
Through these initiatives, the overall commodity cost escalation is expected to
be contained to the low single-digit percent range. This will cause pressure on
operating margins during the remainder of 1995 as compared to 1994.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Third quarter selling, general and administrative expenses (SG&A) decreased as a
percent of sales over 1994 due to slightly lower advertising and sales promotion
activities and other cost control efforts. In the third quarter, SG&A expenses
decreased to 15.6 percent of sales from 17.0 percent in 1994. For the first
nine months of 1995, SG&A expenses decreased to 16.3 percent of sales from 16.6
percent in 1994.
OPERATING INCOME
Operating income in the third quarter of 1995 decreased 13.8 percent from 1994,
or 12.2 percent excluding the combined operating profit of $1.6 million reported
by Hoover Australia and Hoover Europe in the third quarter of 1994. The
decrease in operating income was caused primarily by the decline in gross margin
mentioned above. Operating income in the North American Appliance Group
decreased 10.2 percent to $77.9 million in the third quarter of 1995 from $86.8
million in the third quarter of 1994. Vending equipment operating income
decreased 25.9 percent to $4.1 million from $5.5 million in 1994.
For the first nine months of 1995, operating income decreased 8.3 percent from
1994, or 2.9 percent excluding Hoover Australia and Hoover Europe's combined
results from both 1995 and 1994. The North American Appliance Group's operating
income decreased 4.2 percent to $235.5 million from $245.7 million in the same
period in 1994. Dixie-Narco's operating income increased 7.8 percent to $19.9
million from $18.4 million in the first nine months of 1994. Hoover Australia
and Hoover Europe reported a combined operating profit of $6.2 million year-to-
date in 1994, compared to an operating loss of $7.2 million for Hoover Europe in
1995.
INTEREST EXPENSE
Interest expense decreased 38.1 percent in the third quarter and 26.8 percent
year-to-date due to application of proceeds from the sale of Hoover Australia
and Hoover Europe and cash provided by continuing operations to reduce debt.
8<PAGE>
OTHER INCOME AND EXPENSE
In the third quarter of 1995, the Company recorded a $16.5 million charge to
settle a lawsuit relating to the closing of the former Dixie-Narco plant in
Ranson, West Virginia. The after tax charge was $9.9 million or $.09 per share.
In the second quarter of 1995, the Company sold its Hoover Europe division for
approximately $180 million, subject to a post closing adjustment to the price
which is further described below. The pretax loss from the sale was $140.8
million and resulted in an after-tax loss of $135.4 million or $1.27 per share.
INCOME TAXES
The significant fluctuation in the effective tax rate is due largely to the
impact of the sale of Hoover Europe. Excluding amounts relating to the loss on
the sale of Hoover Europe, the effective tax rate decreased to 40 percent in the
third quarter and first nine months of 1995 from 42 percent in 1994. The
decrease is primarily due to tax benefits from an increase in export sales from
the United States.
EXTRAORDINARY ITEM
During the third quarter of 1995, the Company retired $26.6 million of long-term
debt at a cost of $2.1 million after-tax. Year-to-date, early retirements of
debt totaled $116.5 million at a cost of $5.5 million after-tax.
NET INCOME
Excluding the $9.9 million after-tax charge relating to the lawsuit settlement
mentioned above and the $2.1 million extraordinary item from early debt
retirement, net income for the third quarter would have been $39.9 million, or
$.37 per share in 1995 compared to $41.0 million, or $.38 per share in 1994.
Special items year-to-date in 1995 include the $9.9 million after-tax lawsuit
settlement charge, the $135.4 million after-tax loss on the sale of Hoover
Europe and the $5.5 million extraordinary item from the early retirement of
debt. Excluding these special items as well as the 1994 special items which
include a $3.2 million cumulative effect of accounting change and a $.19 per
share tax benefit associated with the funding of operating losses and
reorganization costs in Europe over the last several years, net income for the
first nine months of 1995 was $113.6 million, or $1.06 per share, compared to
net income of $113.2 million, or $1.06 per share in the comparable 1994 period.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of liquidity are cash provided by operating
activities and external debt. Detailed information on the Company's cash flows
is presented in the Statements of Consolidated Cash Flows.
Cash Flow From Operating Activities: Cash flow generated from operating
activities consists of net income adjusted for certain non-cash income and
expenses and changes in working capital. Non-cash income and expenses include
9<PAGE>
items such as depreciation, amortization and deferred income taxes. Working
capital consists primarily of accounts receivable, inventory and other current
liabilities.
Cash flow from operating activities in the first nine months of 1995 improved
significantly over the same period in 1994. This was driven by a lower increase
in the selected working capital items mentioned above. Included in the working
capital improvement was the sale of $43 million of accounts receivable relating
to the operations of Maytag Financial Services which ceased in 1994. In
addition, cash outflows for 1994 included $49 million of payments for the 1992
reorganization of the European operations and the 1992/1993 European "free
flights" promotional programs. The funding of these events was substantially
completed in 1994.
Cash Flow From Investing Activities: The $148.5 million proceeds from business
disposition represents the $164.3 cash received from the sale of Hoover Europe
in the third quarter of 1995, net of $15.8 million cash in business sold. The
terms of the contract provide for a post closing adjustment to the price under
which the Company believes an additional amount of approximately $19 million is
owed by the buyer. The post closing adjustment is in dispute and may ultimately
depend on the decision of an independent third party.
The Company continually invests in its businesses to improve product design and
manufacturing processes and to increase capacity when needed.
Capital expenditures for the first nine months of 1995 were $98.5 million
compared to $50.8 million in the first nine months of 1994. The higher capital
expenditures are a result of several capital projects that the Company will be
implementing over the next several years. This includes totals of $50 million
for a new high efficiency clothes washer and $180 million for a complete
redesign of the Company's refrigerator product lines. The new clothes washer
will be designed to comply with anticipated government regulations dealing with
energy usage and will use water more efficiently. The refrigeration project
will incorporate changes expected to be required by 1998 Department of Energy
refrigeration standards and the upcoming ban on chlorofluorocarbons ("CFCs").
Planned capital expenditures for 1995 and 1996 approximate $150 million and $200
million, respectively, and relate to these new projects as well as other ongoing
production improvements and product enhancements.
The Company announced on November 1, 1995 that it has entered into a letter of
intent to sell the business and assets of a Dixie-Narco, Inc. manufacturing
operation in Eastlake, Ohio, to a private investor for an undisclosed amount.
This business involves the design and manufacture of currency validators and
electronic components used in the gaming and vending industries. Dixie-Narco's
headquarters and vending machine manufacturing facility in Williston, SC, are
not affected by this asset sale at Eastlake. The Company will record a non-cash
book loss of approximately $6-$7 million pretax upon closing the sale, which is
expected in the fourth quarter of 1995.
Cash Flow From Financing Activities: Dividend payments for the first nine
months of 1995 amounted to $40.4 million and were $40.2 million in the same
period in 1994, or $.375 per share for both periods. In October, 1995, the
Board of Directors authorized an increase in the quarterly dividend payable in
December from $.125 to $.14 per share.
10<PAGE>
The Company used a portion of the cash flow generated from operations, $82.1
million of proceeds from the sale of Hoover Australia in 1994 and $148.5 million
of proceeds from the sale of Hoover Europe in July 1995 to reduce long-term debt
by $163.3 million in the first nine months of 1995. Included in the debt
reduction is $116.5 million for the early retirement of a portion of the
Company's outstanding long-term debt at December 31, 1994. The Company's ratio
of debt to total capitalization decreased from 50.7 percent at December 31, 1994
to 43.7 percent at September 30, 1995.
In October 1995, the Company announced a stock repurchase program to buy up to
10.8 million shares of the Company's outstanding Common stock. The buyback
program commenced in the fourth quarter of 1995 and will continue for an
unspecified period of time.
CONTINGENCIES/OTHER
The Company is contingently liable for guarantees of indebtedness owed by a
third party ("the borrower") of $24 million relating to the sale of one of its
manufacturing facilities in 1992. The borrower is performing under the payment
terms of the loan agreement; however, it is currently in default of certain
financial covenants. The indebtedness is collateralized by the assets of the
borrower; however, in the event of a liquidation, it is likely the liquidation
value would be substantially less than indebtedness. The Company also has other
commitments to the borrower totaling $2.5 million.
In connection with the sale of Hoover Europe mentioned above, the Company has
made various warranties to the buyer, including the accuracy of tax net
operating losses in the United Kingdom, and has agreed to indemnify the buyer
for liability resulting from customer claims under the "free flights" promotions
in excess of the reserve balance at the time of sale. The Company has limited
liability in the event the buyer incurs a loss as a result of breach of the
warranties.
The Company recently announced that it will conduct an in-home inspection
program to eliminate a potential problem with a small electrical component in
Maytag brand dishwashers. Although the ultimate cost of the repair will not be
known until the inspection program is complete, it is not expected to have a
material impact on the Company's results. The Company is also seeking
reimbursement from a supplier involved.
A 1992 alliance to jointly explore mutually beneficial business opportunities
with Bosch-Siemens Hausgate (BSHG) of Munich, Germany recently has been
terminated by mutual agreement of the parties. The alliance termination will
not have a material impact on the Company's financial results.
11<PAGE>
MAYTAG CORPORATION
Exhibits and Reports on Form 8-K
September 30, 1995
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
(11) Computation of Per Share Earnings
(12) Computation of Ratio of Earnings to Fixed Charges
(27) Financial Data Schedule
(b) Reports on Form 8-K
The Company filed a Form 8-K dated October 20, 1995 relating to an in-home
product inspection program to eliminate a potential problem with a small
electrical component on Maytag brand dishwashers manufactured between March
28, 1994 and January 31, 1995.
The Company filed a Form 8-K dated October 20, 1995 relating to an
announced repurchase of up to 10.8 million shares of the Company's stock
and a 12 percent increase in its December dividend.
The Company filed a Form 8-K dated November 7, 1995 relating to signing a
letter of intent to sell the business and assets of its Dixie-Narco, Inc.
manufacturing operation in Eastlake, Ohio.
Except as reflected in the Company's Form 10-Q for the second quarter ended
June 30, 1995, there were no other reports on Form 8-K filed during the
quarter ended September 30, 1995.
12<PAGE>
MAYTAG CORPORATION
Signatures
September 30, 1995
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.
MAYTAG CORPORATION
Date November 13, 1995 By s/s E. J. Bennett
E. James Bennett
Secretary and Assistant General
Counsel
13<PAGE>
MAYTAG CORPORATION
Exhibit 11
Computation of Per Share Earnings
(Amounts in thousands except per share data)
Third Quarter Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
PRIMARY
Average shares outstanding 107,107 106,522 106,854 106,385
Net effect of dilutive
stock options--based on the
treasury stock method using
average market price 151 283 149 300
Employee stock ownership plans 54 73 50 87
TOTAL 107,312 106,878 107,053 106,772
Income (loss) before
extraordinary item and
cumulative effect of
accounting change $ 30,003 $ 61,030 $ (31,612) $ 133,170
Extraordinary item - loss
on early retirement of debt (2,057) (5,480)
Cumulative effect of
accounting change (3,190)
Net income (loss) $ 27,946 $ 61,030 $ (37,092) $ 129,980
Per share amounts:
Income (loss) before
extraordinary item and
cumulative effect of
accounting change $ 0.28 $ 0.57 $ (0.30) $ 1.25
Extraordinary item - loss
on early retirement of debt (0.02) (0.05)
Cumulative effect of
accounting change (0.03)
Net income (loss) $ 0.26 $ 0.57 $ (0.35) $ 1.22
FULLY DILUTED
Average shares outstanding 107,107 106,522 106,854 106,385
Net effect of dilutive
stock options--based on the
treasury stock method using
average market price 276 283 236 328
Employee stock ownership plans 54 73 50 87
Assumed conversion of 6.5%
convertible debentures 273 273
TOTAL 107,437 107,151 107,140 107,073
Income (loss) before
extraordinary item and
cumulative effect of accounting
changes $ 30,003 $ 61,030 $ (31,612) $ 133,170
14<PAGE>
Add 6.5% convertible
debenture interest net of
income tax effect 20 138
Extraordinary item - loss on
early retirement of debt (2,057) (5,480)
Cumulative effect of
accounting change (3,190)
Net income (loss) $ 27,946 $ 61,050 $ (37,092) $ 130,118
Per share amounts:
Income (loss)before
extraordinary item and
cumulative effect of accounting
change $ 0.28 $ 0.57 $ (0.30) $ 1.25
Extraordinary item - loss on
early retirement of debt (0.02) (0.05)
Cumulative effect of
accounting change (0.03)
Net income (loss) $ 0.26 $ 0.57 $ (0.35) $ 1.22
15<PAGE>
MAYTAG CORPORATION
Exhibit 12
Computation of Ratio of Earnings to Fixed Charges
(Amounts in thousands of dollars except ratios)
Nine
Months
Ended Year Ended December 31
9-30-95 1994 1993 1992 1991 1990
Consolidated pretax
income from continuing
operations before
extraordinary item and
cumulative effect of
accounting change $ 32,110 $241,337 $ 89,870 $ 7,546 $123,417 $159,405
Interest expense 40,891 74,077 75,364 75,004 75,159 81,966
Depreciation of
capitalized interest 1,302 1,772 1,546 933 348 57
Interest portion of
rental expense 6,887 10,722 10,480 11,264 11,177 9,183
Earnings $ 81,190 $327,908 $177,260 $ 94,747 $210,101 $250,611
Interest expense $ 40,891 $ 74,077 $ 75,364 $ 75,004 $ 75,159 $ 81,966
Interest capitalized 1,340 547 1,484 3,886 6,329 5,348
Interest portion of
rental expense 6,887 10,722 10,480 11,264 11,177 9,183
Fixed Charges $ 49,118 $ 85,346 $ 87,328 $ 90,154 $ 92,665 $ 96,497
Ratio of earnings to fixed
charges 1.65 3.84 2.03 1.05 2.27 2.60
16<PAGE>
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<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 134,671
<SECURITIES> 0
<RECEIVABLES> 524,994
<ALLOWANCES> 22,256
<INVENTORY> 293,332
<CURRENT-ASSETS> 1,004,519
<PP&E> 1,381,039
<DEPRECIATION> 702,192
<TOTAL-ASSETS> 2,185,408
<CURRENT-LIABILITIES> 359,274
<BONDS> 536,759
<COMMON> 146,438
0
0
<OTHER-SE> 548,223
<TOTAL-LIABILITY-AND-EQUITY> 2,185,408
<SALES> 2,349,983
<TOTAL-REVENUES> 2,349,983
<CGS> 1,740,796
<TOTAL-COSTS> 1,740,796
<OTHER-EXPENSES> 157,292
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 40,891
<INCOME-PRETAX> 32,110
<INCOME-TAX> 63,722
<INCOME-CONTINUING> (31,612)
<DISCONTINUED> 0
<EXTRAORDINARY> (5,480)
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<NET-INCOME> (37,092)
<EPS-PRIMARY> (0.350)
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