<PAGE> 1
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 QUARTERLY PERIOD ENDED MARCH 31, 1998
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 0-5610
PAXAR CORPORATION
(Exact name of registrant as specified in its charter)
NEW YORK 13-5670050
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
105 CORPORATE PARK DRIVE, WHITE PLAINS, N.Y. 10604
(Address of principal executive offices)
914 697-6800
(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 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 / /
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuers's classes of
common stock, as of the latest practicable date. (March 31, 1998)
Common Stock, $0.10 par value: 48,505,261 shares
<PAGE> 2
PART I. FINANCIAL INFORMATION
The financial statements included herein have been prepared by Paxar Corporation
(the "Company"), without audit pursuant to the rules and regulations of the
Securities and Exchange Commission. While 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, the Company believes that the
disclosures made herein are adequate to make the information presented not
misleading. It is recommended that these condensed financial statements be read
in conjunction with the financial statements and notes thereto included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1997
In the opinion of the Company, all adjustments, consisting only of normal
recurring accruals and adjustments, necessary to present fairly the financial
information contained herein, have been included.
<PAGE> 3
ITEM 1: FINANCIAL STATEMENTS
PAXAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31
1998 1997
------- -------
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
<S> <C> <C>
Sales $ 149.4 $ 105.9
Costs and expenses:
Cost of products sold 90.3 65.8
Selling, general and administrative expense 40.2 23.1
Research and engineering expense 2.9 2.2
Amortization of intangibles 1.4 0.9
------- -------
Operating income 14.6 13.9
Interest expense, net 3.9 2.0
------- -------
Income before taxes 10.7 11.9
Taxes on income 3.4 3.7
------- -------
Net income $ 7.3 $ 8.2
======= =======
Average common shares outstanding
Basic 48.5 47.6
======= =======
Diluted 49.1 48.6
======= =======
Basic earnings per common share: $ 0.15 $ 0.17
======= =======
Diluted earnings per common share: $ 0.15 $ 0.17
======= =======
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE> 4
PAXAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
MARCH 31, 1998 DEC. 31, 1997
(UNAUDITED)
(IN MILLIONS, EXCEPT SHARE AMOUNTS)
<S> <C> <C>
ASSETS
Current assets:
Cash $ 15.7 $ 13.7
Short-term investments 3.5 2.2
Receivables, less allowance for doubtful accounts of $4.0
in 1998 and $4.4 in 1997 103.9 102.4
Inventories 100.5 97.4
Deferred income taxes 7.0 6.9
Other current assets 12.2 11.6
------ ------
Total current assets 242.8 234.2
Property, plant and equipment, at cost 280.6 273.2
Accumulated depreciation (93.3) (86.1)
------ ------
Net property, plant and equipment 187.3 187.1
Long-term investments 3.0 3.0
Goodwill 164.2 165.4
Other assets 9.3 8.7
------ ------
$606.6 $598.4
====== ======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Due to banks $ 2.1 $ 2.5
Notes payable -- 5.9
Current maturities of long-term debt 21.9 21.7
Accounts payable and accrued liabilities 78.8 82.8
Accrued taxes on income 2.4 --
------ ------
Total current liabilities 105.2 112.9
Long-term debt 219.2 211.4
Deferred income taxes 24.8 24.2
Other liabilities 5.8 6.1
Shareholders' equity:
Preferred Stock, $0.01 par value, 5,000,000 shares
authorized, none issued and outstanding -- --
Common Stock, $0.10 par value, 200,000,000 shares
authorized, 48,505,261 and 48,419,554 shares
issued and outstanding, in 1998 and 1997,
respectively
4.8 4.8
Paid-in capital 110.3 109.3
Retained earnings 141.8 134.5
Foreign currency translation adjustments (5.3) (4.8)
------ ------
Total shareholders' equity 251.6 243.8
------ ------
$606.6 $598.4
====== ======
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE> 5
PAXAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(IN MILLIONS)
(UNAUDITED)
<TABLE>
<CAPTION>
FOREIGN
UNEARNED CURRENCY
COMMON STOCK PAID-IN COMPENS- RETAINED- TRANSLATION
SHARES AMOUNT CAPITAL ATION EARNINGS ADJUSTMENT
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
BALANCE, DECEMBER 31, 1996 41.3 $ 4.1 $ 81.6 ($ 0.4) $121.9 $ 0.6
Net income -- -- -- -- 8.2 --
Shares surrendered (0.1) -- (2.5) -- -- --
Shares issued-various plans 0.1 -- 1.0 -- -- --
Stock issued - acquisitions 0.3 -- 4.7 -- -- --
Warrants and options issued -
acquisitions -- -- 25.7 -- -- --
IIMAK pooling adjustments 0.1 -- 2.5 -- (2.5) --
Translation adjustments -- -- -- -- -- (3.0)
------ ------ ------ ------ ------ ------
BALANCE, MARCH 31, 1997 41.7 $ 4.1 $113.0 ($ 0.4) $127.6 ($ 2.4)
====== ====== ====== ====== ====== ======
BALANCE, DECEMBER 31, 1997 48.4 $ 4.8 $109.3 -- $134.5 ($ 4.8)
Net income -- -- -- -- 7.3 --
Shares issued -various plans 0.1 -- 1.0 -- -- --
Translation adjustments -- -- -- -- -- (0.5)
------ ------ ------ ------ ------ ------
BALANCE, MARCH 31, 1998 48.5 $ 4.8 $110.3 -- $141.8 ($ 5.3)
====== ====== ====== ====== ====== ======
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE> 6
PAXAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
MARCH 31, 1998 MARCH 31, 1997
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 7.3 $ 8.2
------ ------
Adjustments to reconcile net income to net cash
provided by operations:
Depreciation and amortization 7.6 5.6
Deferred income taxes 0.5 0.7
Other -- 0.7
Changes in assets and liabilities, net
of businesses acquired:
Receivables (1.4) (4.2)
Inventories (3.0) (2.8)
Other current assets (0.7) (2.9)
Accounts payable and accrued liabilities (4.0) 4.4
Taxes on income 2.4 1.1
Other (0.3) (1.8)
------ ------
1.1 0.8
------ ------
Net cash provided by operating activities 8.4 9.0
------ ------
INVESTING ACTIVITIES:
(Increase)of short-term investments (1.3) (2.3)
Purchases of property, plant and equipment (6.7) (4.1)
Aquisition net of cash acquired -- (82.6)
Other (0.6) 0.6
------ ------
Net cash used in investing activities (8.6) (88.4)
------ ------
FINANCING ACTIVITIES:
(Decrease) in short-term debt (6.1) (0.6)
Additions to long-term debt 30.6 113.7
Reductions in long-term debt (22.8) (18.0)
Purchase of common stock -- (2.5)
Exercise of stock options/Stock Purchase Plan 1.0 1.0
Notes received for related tax liabilities -- (0.5)
------ ------
Net cash provided by financing activities 2.7 93.1
------ ------
OTHER ACTIVITIES:
Effect of exchange rate changes on cash (0.5) (0.4)
------ ------
Increase in cash 2.0 13.3
Cash, at beginning of year 13.7 5.3
------ ------
Cash, at end of period $ 15.7 $ 18.6
====== ======
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE> 7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN MILLIONS, EXCEPT SHARE AND PER SHARE DATA)
NOTE 1: GENERAL
The accounting policies followed during interim periods are in conformity with
generally accepted accounting principles and are consistent with those applied
for annual periods as described in the Company's Annual Report on Form 10-K for
the year ended December 31, 1997. Other than Balance Sheet amounts as of
December 31, 1996 and 1997, all amounts contained herein are unaudited.
Reclassifications:
Certain reclassifications have been made to prior year amounts to conform to the
current year presentation.
NOTE 2: BUSINESS ACQUISITIONS
Monarch:
On June 29, 1995, the Company acquired a 49% interest in Monarch Marking
Systems, Inc. ("Monarch"), which had been accounted for using the equity method.
On March 3, 1997, the Company acquired the remaining 51% of Monarch for a total
purchase price of $132, comprising of cash, notes, stock, options and warrants.
The acquisition was accounted for as a purchase with assets acquired and
liabilities assumed recorded at their estimated fair values at the date of
acquisition. The excess of the purchase price and transaction costs over the
fair value of net assets acquired was recorded as goodwill. The resulting
goodwill of $148.5 (including $13.5 related to the initial 1995 investment) is
being amortized over 40 years.
The fair value of assets acquired and liabilities assumed is as follows:
<TABLE>
<S> <C>
Current assets $ 96.2
Property, plant and equipment 44.1
Goodwill 148.5
Other assets 11.8
Current liabilities (37.6)
Long-term debt (105.8)
Other (5.1)
------
Net assets 152.1
Initial investment (June 1995) (20.1)
------
$132.0
======
</TABLE>
The purchase price allocation is not complete and adjustments to goodwill may be
necessary, reflecting the outcome of pending litigation with Pitney Bowes, Inc.
(the former owner of Monarch). The litigation relates to a purchase price
adjustment to which the Company believes it is entitled. It is expected that the
matter will be finalized by the end of 1998.
The operating results of Monarch are included in the accompanying consolidated
statements of income beginning March 3, 1997. The following unaudited pro forma
results of operations assume the acquisition occurred as of January 1,1997.
These pro forma results do not purport to be indicative of the results of
operations which may result in the future.
<TABLE>
<CAPTION>
MARCH 31, 1997
<S> <C>
Sales $ 145.6
=======
Net Income $ 6.7
=======
Earnings per common share:
Basic $ 0.14
=======
Diluted $ 0.14
=======
</TABLE>
<PAGE> 8
IIMAK:
On October 28, 1997 the Company completed the acquisition of International
Imaging Materials, Inc. ("IIMAK"), which was accounted for as a pooling of
interests. As such, the financial statements have been restated to include the
results of IIMAK for all periods presented.
Net sales and net income of IIMAK for the three-month period ended March 31,
1997 were $25.4 and $2.5, respectively, with the net income reflected as an
adjustment to retained earnings effective January 1, 1997. No adjustments were
required to conform the accounting policies of the companies.
NOTE 3: INVENTORIES
The components of inventories are set forth below:
<TABLE>
<CAPTION>
MARCH 31, 1998 DECEMBER 31, 1997
-------------- -----------------
<S> <C> <C>
Raw materials $ 57.7 $ 56.3
Work-in-Process 10.7 8.6
Finished goods 32.1 32.5
------ ------
$100.5 $ 97.4
====== ======
</TABLE>
NOTE 4: LONG TERM DEBT
A summary of long-term debt is set forth below:
<TABLE>
<CAPTION>
MARCH 31, 1998 DECEMBER 31, 1997
-------------- -----------------
<S> <C> <C>
Bank credit facility $230.7 $222.2
Economic Development
Revenue Bonds due 2011 8.0 8.0
Secured term loans on certain
plant and equipment 1.1 1.4
Secured and unsecured loans on
foreign property, plant and
machinery 1.1 1.2
Other 0.2 0.3
------ ------
241.1 233.1
Less current maturities 21.9 21.7
------ ------
$219.2 $211.4
====== ======
</TABLE>
NOTE 5: ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
A summary of accounts payable and accrued liabilities is set forth below:
<TABLE>
<CAPTION>
MARCH 31, 1998 DECEMBER 31, 1997
-------------- -----------------
<S> <C> <C>
Accounts payable $32.8 $31.9
Accrued payroll costs 10.9 11.9
Accrued acquisition related costs 2.6 6.2
Other accrued liabilities 32.5 32.8
----- -----
$78.8 $82.8
===== =====
</TABLE>
NOTE 6: SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest and income taxes is set forth below:
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED MARCH 31,
1998 1997
c ---- ----
<S> <C> <C>
Interest $4.3 $0.5
Income Taxes $1.2 $1.6
</TABLE>
<PAGE> 9
NOTE 7: COMPREHENSIVE INCOME
Statement of Financial Accounting Standards No. 130, effective in 1998, requires
the disclosure of comprehensive income to reflect changes in equity that result
from transactions and economic events from nonowner sources. Comprehensive
income for the periods presented below include foreign currency translation
items. There was no tax expense or tax benefit associated with the foreign
currency translation items
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED MARCH 31,
1998 1997
---- ----
<S> <C> <C>
Net income $7.3 $8.2
Foreign currency translation adjustments (0.5) (3.0)
---- ----
Comprehensive income $6.8 $5.2
==== ====
</TABLE>
NOTE 8: EARNINGS PER COMMON SHARE
The reconciliation of basic and diluted per-share computation is as follows:
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED MARCH 31,
1998 1997
---- ----
<S> <C> <C>
Net income $ 7.3 $ 8.2
====== ======
Average common shares (basic) 48.5 47.6
Options and warrants 0.6 1.0
------ ------
Adjusted average common shares (diluted) 49.1 48.6
====== ======
Earnings per common share:
Basic $ 0.15 $ 0.17
====== ======
Diluted $ 0.15 $ 0.17
====== ======
</TABLE>
<PAGE> 10
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
ALL AMOUNTS IN THE FOLLOWING DISCUSSION ARE STATED IN MILLIONS, EXCEPT SHARE AND
PER SHARE DATA.
OPERATING RESULTS
On March 3, 1997, the Company acquired the remaining 51% of Monarch Marking
Systems, Inc. ("Monarch") that it did not previously own. The acquisition has
been accounted for as a purchase, and, accordingly, the results of operations
include the results of Monarch since the date of acquisition, March 3, 1997. On
October 28, 1997, the Company acquired International Imaging Materials, Inc.
("IIMAK"), which has been accounted for as a pooling of interests. As required
with a pooling of interests, historical financial information has been restated
to combine the financial statements of the Company and IIMAK for all periods.
The following table shows each element of the income statement as a percent of
sales for the years indicated:
<TABLE>
<CAPTION>
Three Months Ended
March 31, 1998 March 31, 1997
<S> <C> <C>
Sales 100% 100%
Cost of products sold 60 62
Selling, general and
administrative expense 27 22
Research and engineering
expense 2 2
Amortization of intangibles 1 1
--- ---
Operating income 10 13
Interest expense, net 3 2
--- ---
Income before taxes 7 11
Taxes on income 2 3
--- ---
Net Income 5% 8%
=== ===
</TABLE>
FIRST QUARTER 1998 COMPARED WITH 1997
Sales in the first quarter 1998 increased by 41% over the first quarter 1997
reaching $149.4. Domestic sales increased 34% from $69.3 to $92.6. Foreign-based
and export sales increased from $36.6 to $56.8. In the first quarter 1998, sales
from the Company's Apparel Identification business grew 15%, Printing Solutions
business grew 54% and International business grew 74%. The increase in the
Printing Solutions business and the International business was due principally
to the acquisition of Monarch on March 3, 1997. Had Monarch been consolidated
for the entire first quarter of 1997, the pro forma sales would have been $145.6
(see Note 2 of Notes to the Consolidated Financial Statements).
Cost of products sold for the three months ended March 31, 1998 increased to
$90.3 compared to $65.8 for the three months ended March 31, 1997, due
principally to the acquisition of Monarch. As a percent of sales, such costs
decreased to 60% for March 31, 1998 compared to 62% for March 31,1997.
Selling, general and administrative expense ("SG&A") increased to $40.2 for the
three months ended March 31, 1998, compared to $23.1 for the three months ended
March 31, 1997 period due principally to the acquisition of Monarch. As a
percent of sales, SG&A was 27% for March 31,1998 compared to 22% for March 31,
1997.
Research and engineering expense ("R&E") increased from $2.2 for the three
months ended March 31, 1997 to $2.9 for the three months ended March 31, 1998
due principally to the acquisition of Monarch. As a percent of sales, R&E was 2%
for the March 31, 1998 and March 31, 1997 three-month period.
<PAGE> 11
Amortization of intangibles increased to $1.4 for the three months ended March
31, 1998 compared to $0.9 for the three months ended March 31, 1997 due to the
additional goodwill arising from the acquisition of Monarch.
Operating income increased to $14.6 for the three months ended March 31, 1998
compared to $13.9 for the three months ended March 31, 1997. The operating
margin declined from 13% in the three months ended March 31, 1997 to 10% in the
three months ended March 31, 1998. The decline is attributable to pricing
pressures in the Company's Printing Solutions bar code ribbon business.
Interest expense, net, increased to $3.9 for the three months ended March 31,
1998 from $2.0 in three months ended March 31,1997. The increase was
attributable to the financing costs associated with the acquisition of Monarch.
Income before taxes decreased to $10.7 (7% of sales) for the three months ended
March 31, 1998 as compared with $11.9 (11% of sales) for the three months ended
March 31, 1997.
The effective income tax rate was 32% for the three months ended March 31, 1998
compared to 31% for the three months ended March 31, 1997. The overall effective
tax rate was impacted by many factors including different statutory rates on
foreign income.
Net income for the three months ended March 31, 1998 was $7.3 (5% of sales)
compared to $8.2 (8% of sales) for the three months ended March 31, 1997.
LIQUIDITY AND CAPITAL RESOURCES
The table below presents summary cash flow information for the periods
indicated:
<TABLE>
<CAPTION>
(in millions)
Three Months Ended
March 31, 1998 March 31, 1997
-------------- --------------
<S> <C> <C>
Net cash provided by operating activities $ 8.4 $ 9.0
Net cash used by investing activities (8.6) (88.4)
Net cash provided by (used in) financing activities 2.7 93.1
----- -----
Total change in cash (a) $ 2.5 $13.7
===== =====
</TABLE>
(a) Before exchange rate effects.
OPERATING ACTIVITIES
Cash provided by operating activities continues to be the Company's primary
source of funds to finance operating needs and internal growth opportunities.
The net cash provided by operating activities was $8.4 for the three months
ended March 31, 1998, compared to $9.0 in 1997.
Depreciation and amortization was $7.6 for the three months ended March 31, 1998
compared to $5.6 for the three months ended March 31, 1997. The increase is due
mainly to the acquisition of Monarch, which resulted in increases to
depreciation and goodwill amortization.
INVESTING ACTIVITIES
During the first quarter of 1998 capital expenditures were $6.7 compared to $4.1
in 1997. All new capital projects are carefully analyzed and other than projects
for employee safety and environmental improvement, are required to make a
positive contribution on a net present value basis, generating an advantageous
internal rate of return on invested capital. The Company currently anticipates
capital expenditures of approximately $33.0 for the year ended December 31,
1998.
<PAGE> 12
On March 3, 1997, the Company acquired the remaining 51% of Monarch for a total
purchase price of $132, comprising of cash, notes, stock , options and warrants.
The acquisition was accounted for as a purchase with assets acquired and
liabilities assumed recorded at their estimated fair values at the date of
acquisition.
The Company financed the cash portion of the purchase price with the proceeds of
the term loan under a $280 credit facility with Fleet Bank, N.A. and Wachovia
Bank of Georgia, N.A. as lead lenders.
On October 28, 1997 the Company completed the acquisition of International
Imaging Materials, Inc. ("IIMAK"), which was accounted for as a pooling of
interests. As such, the financial statements have been restated to include the
results of IIMAK for all periods presented.
On February 25, 1998, the Company acquired a 70% interest in the business of
Teslo Tekstil Urunleri Sanayii ve Ticaret A.S., located in Istanbul, Turkey, for
approximately $1.5. The Company has an option to acquire the remaining 30%
interest in Teslo from the minority shareholders.
The Company intends to continue its growth, in part by acquisitions of other
complementary or related businesses, and believes that further acquisitions
would be of important strategic value.
FINANCING ACTIVITIES
The table below shows the components of total capital for the years indicated:
<TABLE>
<CAPTION>
(in millions)
March 31, 1998 December 31, 1997
<S> <C> <C>
Long-term debt $219.2 $211.4
Shareholders' equity 251.6 243.8
------ ------
Total capital $470.8 $455.2
====== ======
Long-term debt as a percent of total capital 47% 46%
</TABLE>
Long-term debt increased to $219.2 at March 31, 1998, from $211.4 at December
31, 1997. The increase is primarily attributable to the note payment to Odyssey
Partners, L.P. on January 2, 1998 in connection with the acquisition of Monarch.
At March 31, 1998, long-term debt as a percent of total capital was 47% compared
to 46% at December 31, 1997.
On March 3, 1997, the Company entered into a six-year, $280 credit facility with
Fleet Bank, N.A. and Wachovia Bank of Georgia, N.A., as lead lenders, consisting
of a $140 term loan facility and a $140 revolving credit facility. Borrowings
under the term loan and revolving credit facilities bear interest at rates
referenced to the London Interbank Offered Rate (with applicable margins varying
in accordance with the Company's attainment of specified financial tests) or the
Prime Rate (as defined), and are guaranteed by the domestic subsidiaries of the
Company. As of March 31, 1998, borrowings under the term loan and revolving
credit facilities were $130.2 and $100.5, respectively, and the amount available
was $39.5.
<PAGE> 13
CAUTIONARY STATEMENT PURSUANT TO "SAFE HARBOR" PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995.
Except for historical information, the Company's reports to the Securities and
Exchange Commission on Form 10K and 10Q and periodic press releases, as well as
other public documents and statements, contain "forward-looking statements"
within the meaning of the federal securities laws. Forward-looking statements
are subject to risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by the statements, including, among
others:
- - Economic and other business conditions that could affect demand for the
Company's products in the United States or international markets.
- - The mix of products sold and the profit margins thereon.
- - Order cancellation or reduced bookings by customers or distributors.
- - Competitive product offerings and pricing actions
- - The availability and pricing of key raw materials.
- - Productivity improvements in manufacturing.
- - Dependence on key members of management.
Readers are cautioned not to place undue reliance on forward-looking statements.
The Company undertakes no obligation to republish revise forward-looking
statements to reflect events or circumstances after the date hereof or to
reflect the occurrences of unanticipated events.
<PAGE> 14
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibit Index
27.1 Financial Data Schedule
b) Reports on Form 8-K
None
<PAGE> 15
PAXAR CORPORATION AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Paxar Corporation
Registrant
------------------------
Signature
Jack R. Plaxe
-------------
Full Name of Signing Officer
Senior Vice President and
Chief Financial Officer
Title of Signing Officer
May 14, 1998
------------
Date
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000075681
<NAME> PAXAR CORPORATION
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 15,700
<SECURITIES> 0
<RECEIVABLES> 103,900
<ALLOWANCES> 0
<INVENTORY> 100,500
<CURRENT-ASSETS> 242,800
<PP&E> 280,600
<DEPRECIATION> 93,300
<TOTAL-ASSETS> 606,600
<CURRENT-LIABILITIES> 105,200
<BONDS> 0
0
0
<COMMON> 4,800
<OTHER-SE> 246,800
<TOTAL-LIABILITY-AND-EQUITY> 606,600
<SALES> 149,400
<TOTAL-REVENUES> 149,400
<CGS> 90,300
<TOTAL-COSTS> 90,300
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,900
<INCOME-PRETAX> 10,700
<INCOME-TAX> 3,400
<INCOME-CONTINUING> 7,300
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,300
<EPS-PRIMARY> 0
<EPS-DILUTED> 0.15
</TABLE>
