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 December 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 0-14061
STEEL TECHNOLOGIES INC.
-----------------------
(Exact name of registrant as specified in its charter)
Kentucky 61-0712014
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
15415 Shelbyville Road, Louisville, KY 40245
(Address of principal executive offices) (Zip Code)
(502) 245-2110
(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 Sections 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
There were 11,277,256 shares outstanding of the Registrant's common stock as of
January 29, 1999.
<PAGE>
STEEL TECHNOLOGIES INC.
INDEX
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements ..................................... 6-7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ...................... 8-12
Item 3. Quantitative and Qualitative Disclosures About Market
Risk ..................................................... 12
PART II OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders ...... 13
Item 6. Exhibits and Reports on Form 8-K ......................... 14
<PAGE>
Part I. - FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
STEEL TECHNOLOGIES INC.
Condensed Consolidated Balance Sheets
(Amounts in thousands) December 31 September 30
- --------------------------------------------------------------------------------
1998 1998
(Unaudited) Audited)
------------------------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents ..................... $ 11,794 $ 4,778
Trade accounts receivable, net ................ 53,531 47,907
Inventories ................................... 79,570 76,523
Deferred income taxes ......................... 1,641 1,621
Prepaid expenses and other assets ............. 852 748
-------- --------
Total current assets ....................... 147,388 131,577
======== ========
Property, plant and equipment, net ............... 105,987 106,631
Investments in corporate joint ventures .......... 18,879 18,163
Goodwill, net of amortization .................... 8,901 9,060
Other assets ..................................... 2,167 1,050
-------- --------
$283,322 $266,481
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable .............................. $ 43,168 $ 35,925
Accrued liabilities ........................... 7,164 6,231
Long-term debt due within one year ............ 9,103 9,102
-------- --------
Total current liabilities .................. 59,435 51,258
Long-term debt ................................... 95,132 88,300
Other liabilities ................................ 937 --
Deferred income taxes ............................ 13,673 13,247
-------- --------
Total liabilities ........................... 169,177 152,805
Commitments and contingencies .................... -- --
Shareholders' equity:
Preferred stock ............................... -- --
Common stock .................................. 17,003 16,928
Treasury stock ................................ (5,816) (3,792)
Additional paid-in capital .................... 4,909 4,909
Retained earnings ............................. 99,489 97,071
Foreign currency translation adjustment ....... (1,440) (1,440)
-------- --------
114,145 113,676
-------- --------
$283,322 $266,481
======== ========
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
<PAGE>
<TABLE>
<CAPTION>
STEEL TECHNOLOGIES INC.
Condensed Consolidated Statements of Income
Three Months Ended
(Amounts in thousands, except per share data, unaudited) December 31
- --------------------------------------------------------------------------------
1998 1997
---------------------
<S> <C> <C>
Sales ..................................................... $98,203 $96,449
Cost of goods sold ........................................ 85,249 86,051
------- -------
Gross profit ........................................... 12,954 10,398
Selling, general and administrative expenses .............. 6,359 5,350
Equity in net income of unconsolidated
corporate joint venture ................................ 116 502
------- -------
Operating income ....................................... 6,711 5,550
Interest expense .......................................... 1,705 1,562
------- -------
Income before income taxes ............................. 5,006 3,988
Provision for income taxes ................................ 2,015 1,497
------- -------
Net income ............................................. $ 2,991 $ 2,491
======= =======
Diluted weighted average number of common
shares outstanding ..................................... 11,439 12,045
======= =======
Diluted earnings per common share ......................... $ 0.26 $ 0.21
======= =======
Basic weighted average number of common
shares outstanding ..................................... 11,427 11,998
======= =======
Basic earnings per common share ........................... $ 0.26 $ 0.21
======= =======
Cash dividends per common share ........................... $ 0.05 $ 0.05
======= =======
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
<PAGE>
<TABLE>
<CAPTION>
STEEL TECHNOLOGIES INC.
Condensed Consolidated Statements of Cash Flows
Three Months Ended
(Amounts in thousands, unaudited) December 31
- --------------------------------------------------------------------------------
1998 1997
---------------------
<S> <C> <C>
Net Income ............................................. $ 2,991 $ 2,491
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation ....................................... 3,056 2,748
Amortization ....................................... 94 56
Deferred income taxes .............................. 406 480
Equity in net income of unconsolidated corpo
joint venture ...................................... (116) (501)
Loss on sale of assets ............................. (14) --
Increase (decrease) in cash resulting from
changes in:
Trade accounts receivable .................... (5,584) (6,325)
Inventories .................................. (3,046) 7,705
Prepaids expenses and other assets ........... (1,324) 239
Accounts payable ............................. 7,221 5,561
Accrued liabilities and income taxes ......... 2,132 1,424
------- -------
Net cash provided by operating activities ................. 5,816 13,878
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment ............. (3,707) (3,198)
Proceeds for sale of property, plant and equipme ....... 1,304 --
Investment in unconsolidated joint venture ............. (600) --
------- -------
Net cash used in investing activities ..................... (3,003) (3,198)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt ........................... 7,000 --
Principal payments on long-term debt ................... (167) (5,167)
Cash dividends on common stock ......................... (573) (600)
Repurchase of common stock ............................. (2,024) --
Net issuance of common stock under incentive
stock option plans ................................... 75 3
------- -------
Net cash provided by (used in) financing activities ....... 4,311 (5,764)
------- -------
Effect of exchange rate changes on cash ................... (108) (73)
------- -------
Net increase in cash and cash equivalents ................. 7,016 4,843
Cash and cash equivalents, beginning of year .............. 4,778 3,467
------- -------
Cash and cash equivalents, end of period .................. $11,794 $ 8,310
======= =======
Supplemental Cash Flow Disclosures:
Cash payment for interest ................................. $ 1,759 $ 1,962
======= =======
Cash payment for income taxes ............................. $ -- $ 17
======= =======
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
<PAGE>
STEEL TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:
The condensed consolidated balance sheet as of December 31, 1998 and the
condensed consolidated statements of income and cash flows for the three months
periods ended December 31, 1998 and 1997 have been prepared by the Company
without audit. In the opinion of management, all adjustments (which include only
normal recurring adjustments) necessary to present fairly the financial
position, results of operations and cash flows at December 31, 1998 and for all
periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that these condensed financial
statements be read in conjunction with the financial statements and notes
thereto included in the Company's annual report to shareholders for the year
ended September 30, 1998. The results of operations for the three months ended
December 31, 1998 are not necessarily indicative of the operating results for
the full year.
2. INVENTORIES:
<TABLE>
<CAPTION>
Inventory consists of:
(Amounts in thousands) December 31 September 30
- --------------------------------------------------------------------------------
1998 1998
Unaudited Audited
------------------------------
<S> <C> <C>
Inventories consists of:
Raw materials ................................. $ 62,488 $ 66,033
Finished goods and work in process ............ 17,082 10,490
-------- --------
$ 79,570 $ 76,523
======== ========
</TABLE>
3. FOREIGN CURRENCY TRANSLATION:
Prior to January 1, 1997, the monetary assets and liabilities of the Mexican
subsidiary were translated into U.S. dollars at the year-end rate of exchange
and revenues and expenses were translated at average rates of exchange in effect
during the period. Resulting translation adjustments were accumulated in a
separate component of shareholders' equity. Foreign currency transaction gains
and losses were included in net income when incurred. Effective January 1, 1997,
the Company changed to the monetary/non-monetary method of accounting for
foreign currency translation as the Mexican economy was considered
hyper-inflationary for financial reporting. This method required non-monetary
assets and liabilities to be translated at historical rates of exchange and the
functional currency to be U.S. dollars. Mexico ceased to be a highly
inflationary economy effective for quarters beginning after December 31, 1998.
The Mexican subsidiary is expected to use the peso as the functional currency.
The Company will then use the current rate method of translation and will report
translation adjustments as it did prior to January 1, 1997.
4. NET INCOME PER SHARE COMPUTATIONS:
The following is a reconciliation of the numerator of the basic and diluted per
share computations:
<TABLE>
<CAPTION>
Three Months Ended
(Amounts in thousands, except per share data) December 31
- --------------------------------------------------------------------------------
1998 1997
---------------------
<S> <C> <C>
Net income ................................................ $ 2,991 $ 2,491
------- -------
Shares (denominator) used for diluted per share computations:
Weighted average shares of common stock outstanding .... 11,427 11,998
Plus: dilutive effect of stock options ................. 12 47
------- -------
Adjusted weighted average shares ................ 11,439 12,045
------- -------
Shares (denominator) used for basic per share computations:
Weighted average shares of common stock outstanding .... 11,427 11,998
------- -------
Net income per share data:
Diluted ................................................ $ 0.26 $ 0.21
======= =======
Basic .................................................. $ 0.26 $ 0.21
======= =======
</TABLE>
Options to purchase 566,000 and 131,000 shares for the three months ended
December 31, 1998, and 1997, respectively were excluded from the calculation
above because the exercise prices on the options were greater than the average
market price of the Company's stock for the periods.
5. COMPREHENSIVE INCOME:
Effective October 1, 1998, the Company adopted Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income" issued by the Financial
Accounting Standards Board in June 1997. Comprehensive income is defined as all
changes in equity during the period except those resulting from shareholder
equity contributions and distributions. Comprehensive income comprises of net
income and unrealized gains and losses on foreign currency translations.
Comprehensive income for the three-month periods ended December 31, 1998 and
1997 were the same as net income presented in the accompanying statements of
income.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
When used in the following discussion, the word "expects" and other similar
expressions are intended to identify forward-looking statements, which are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are subject to certain risks
and uncertainties that could cause actual results to differ materially from
those projected. Specific risks and uncertainties include, but are not limited
to, general business and economic conditions; cyclicality of demand in the steel
industry, specifically in the automotive market; work stoppages, risks of year
2000 noncompliance or other business interruptions affecting automotive
manufacturers; competitive factors such as pricing and availability of steel;
reliance on key customers; and potential equipment malfunctions. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company undertakes no obligation to
republish revised forward-looking statements to reflect the occurrence of
unanticipated events or circumstances after the date hereof.
Results of Operations
Steel Technologies posted record first quarter sales of $98,203,000 for the
fiscal quarter ended December 31, 1998, an increase of 2% from sales of
$96,449,000 for the first fiscal quarter ended December 31, 1997. The Roberts
Steel Company (now a wholly owned subsidiary of Steel Technologies Ohio)
acquired on July 1, 1998 added $4,600,000 of revenues for the first quarter of
fiscal 1999. Sales of existing Steel Technologies steel processing operations
decreased by approximately $2,847,000 or 3% from a year ago. The Company
continues to focus significant resources on the automotive industry and to
generate a major portion of business from selling manufacturing component parts
to the automotive industry.
Tons shipped in the first quarter of fiscal 1999 increased approximately 8%
while the average selling prices of steel for the first quarter of fiscal 1999
decreased approximately 6% from the previous year. The sales outlook is good
based on order activity and backlog.
The gross profit margin increased to 13.2% in the first quarter of fiscal 1999
compared to 10.8% in the first quarter of fiscal 1998. The improvements are
primarily a result of customer and product mix improvements, productivity
increases, a slight reduction in raw materials prices and other operating cost
reductions. The Company expects stable and, in some cases, weakening in pricing
of raw materials, especially in hot rolled steel, as new steelmaking capacity
enters the market. However, should raw material prices increase, margins would
be negatively impacted in the event that corresponding sales price increases are
not passed on to customers. The production cost efficiencies associated with
anticipated higher sales volumes is expected to positively impact gross margin.
Additionally, pickling facility and blanking lines are expected to increase the
amount of higher margin toll processing revenue. Toll processing, primarily of
customer-owned steel, generates higher gross margin percentages than the
traditional processing of Company-owned steel.
Steel Technologies continues to actively manage the level at which selling,
general and administrative costs are added to its cost structure. Selling,
general and administrative costs increased approximately 19% from the comparable
1998 period. Selling, general and administrative expenses as a percentage of
sales increased to 6.5% for the first quarter of fiscal 1999 from 5.5% for the
first quarter of fiscal 1998. The increase was primarily attributable to the
additional expenses from Steel Technologies Ohio, and additional marketing
expenses to support sales growth of Steel Technologies Carolinas and Mexico
The Company's share of the income of Mi-Tech Steel, Inc., (Mi-Tech) an
unconsolidated corporate joint venture, was $116,000 and $502,000 for the first
quarter of fiscal 1999 and 1998, respectively. The slower than expected start up
of the Decatur, Alabama operation impacted Mi-Tech's profitability as compared
to the first quarter of fiscal 1998. The Company expects similar income
contributions from Mi-Tech for the balance of the current fiscal year.
Interest expense was $1,705,000 for the first quarter of fiscal 1999 compared to
$1,562,000 for the first quarter of fiscal 1998. The increase is the result of
higher average borrowings used to finance the acquisition of Roberts Steel
Company. The Company's effective income tax rate was approximately 40.2% and
37.5% for the first fiscal quarters of 1999 and 1998, respectively. The increase
is attributable to a lower percentage of overall earnings from the Mi-Tech joint
venture, which are not fully taxable to the Company.
Liquidity and Capital Resources
At December 31, 1998, Steel Technologies had $87,953,000 of working capital,
maintained a current ratio of 2.5:1and had total debt at 48% of total
capitalization. The Company continues to manage the levels of accounts
receivable, inventories and other working capital items in relation to the
trends in sales and the overall market. For the first quarter of fiscal 1999,
increased profit levels contributed to the generation of $5,816,000 of cash
flows from operations. Cash flows from operations and available borrowing
capabilities are expected to meet the needs of the Company throughout the
balance of fiscal 1999.
Capital expenditures for the first quarter of fiscal 1999 totaled $3,707,000.
The majority of the expenditures were for the construction of the new Berkley,
South Carolina plant, which is expected to be completed by the middle of March
1999. Steel Technologies continues to expand production capacity and processing
facilities to serve the growing needs of customers. The capital additions for
all facilities are expected to approximate $12,000,000 for fiscal 1999.
Steel Technologies maintains an equity investment of approximately $8,739,000 in
its 90% owned Mexican subsidiary. The Mexican economy is considered
hyper-inflationary for financial reporting. Accordingly, the Company uses the
monetary/non-monetary method of accounting. The impact on the Company's
profitability is limited to the effect of currency fluctuations related to net
monetary assets, which were approximately $3,694,000, and $1,600,000 at December
31, 1998 and 1997 respectively. Due to the costs of hedging currency risks, the
Company has not entered into any hedging arrangements. Mexico ceased to be a
highly inflationary economy effective for quarters beginning after December 31,
1998. The Mexican subsidiary is expected to use the peso as the functional
currency. The Company will then use the current rate method of translation and
will report translation adjustments as it did prior to January 1, 1997.
Steel Technologies maintains an equity investment, principally in the preferred
stock of Processing Technology, Inc., a corporate joint venture. The Company
periodically evaluates the possible conversion of the preferred stock investment
into common stock of Processing Technology, Inc. The decision to convert the
investment to common stock will be based upon the joint venture attaining
certain financial criteria established by Steel Technologies. Upon conversion,
the Company would be obligated to guarantee a proportionate share, currently
approximating $8,700,000 of the joint venture's loan and lease commitments. The
conversion is not expected to occur in the near term.
In December 1998, the Company increased the limit on the unsecured bank line of
credit from $80,000,000 to $100,000,000. As of December 31, 1998, there was
$56,000,000 outstanding on the credit facility. The availability of $44,000,000
from the line of credit and funds generated from operations are expected to be
sufficient to finance capital expenditure plans as well as the working capital
needs for fiscal 1999. At this time the Company has no known material
obligations, commitments or demands which must be met beyond the next twelve
months other than the ten-year private placement notes and the unsecured bank
line of credit. The ten-year notes require principal payments beginning on March
1, 1999. Any additional funds will be used for growth, including strategic
acquisitions, investment in joint venture, construction of new plant capacity,
and investment in production and processing capabilities. The form of such
financing may vary depending upon the prevailing market and related conditions,
and may include short or long-term borrowings or the issuance of debt or equity
securities.
At December 31, 1998, Steel Technologies had $95,132,000 of long-term debt
outstanding. Under various debt agreements, the Company agrees to maintain
specified levels of working capital and net worth, maintain certain ratios and
limit the addition of substantial debt. The Company is in compliance with all
loan covenants, and none of these covenants would restrict the completion of
currently planned capital expenditures.
During 1998, Steel Technologies entered into a long-term interest rate swap
agreement to reduce the risk of interest rate variability. Under the contract,
the Company agrees with another party to exchange quarterly the difference
between variable-rate and fixed-rate amounts calculated on a notional principal
amount of $30,000,000.
Pursuant to a joint venture agreement, Steel Technologies has guaranteed
$8,250,000 of the bank financing required for the working capital purposes of
Mi-Tech. In October 1998, Steel Technologies contributed $600,000 in equity to
Mi-Tech for the start-up of a steel processing facility in San Diego,
California. Additional equity contributions to the joint venture are not
expected for the foreseeable future, but if required would be financed with
available funds from the Company's bank line of credit.
During 1998, the Board of Directors approved a plan under which Steel
Technologies may repurchase up to 1,500,000 shares of its common stock. Shares
may be purchased from time to time at prevailing prices in open market
transactions, subject to market conditions, share price and other
considerations. During the first quarter of fiscal 1999, the Company repurchased
293,000 shares of its common stock at prevailing market prices. As of December
31, 1998, the Company had repurchased a total of approximately 714,000 shares of
common stock at prevailing market prices.
Steel Technologies believes all manufacturing facilities are in compliance with
applicable federal and state environmental regulations. The Company is not
presently aware of any fact or circumstance, which would require the expenditure
of material amounts for environmental compliance.
Year 2000 Compliance
Steel Technologies' Year 2000 project (Project) addresses the issue of using two
digits, rather than four, to define the century. Any programs with a time
sensitive software may recognize a date using "00" as the year 1900 rather than
the year 2000, which could result in miscalculations or systems failures.
The Project focuses primarily in the following areas: infrastructure,
applications, manufacturing, third-party suppliers and customers. Steel
Technologies has contracted Electronic Data Systems (EDS) to manage the Project
and make the necessary remediations.
The Project addresses six phases: inventorying of Year 2000 compliance items;
assessing priorities to identified items; determining the materiality of the
Year 2000 compliance items; repairing or replacing material items not Year 2000
compliant; testing material items; and implementing contingency and business
continuation plans for each Company location.
The infrastructure section consists of hardware and systems software other than
application software. The Company completed all of the testing, remediating,
upgrading or replacing of hardware and systems software as of December 31, 1998.
The application software section includes both the conversion of application
software that is not Year 2000 compliant and, where applicable, the replacement
of software. As of December 31, 1998, all of the application software was tested
and remedied.
The manufacturing section of the Project relates to the hardware, software and
associated embedded computer chips that are used in the operation of all
facilities. The Company estimates that 10 percent of the manufacturing equipment
is dependent on date sensitive software and that 80 percent of the manufacturing
equipment will be Year 2000 compliant by September 30, 1999.
The third party suppliers and customers section includes the process of
identifying and prioritizing critical suppliers and customers and communicating
with them about their plans and progress in addressing the Year 2000 problem.
Detailed evaluations of the most critical third parties have been completed as
of December 31, 1998.
Contingency planning for all areas was started in January 1999 and is expected
to be completed by March 1999.
The total cost related to becoming Year 2000 compliant is not expected to be
material to the Company's financial position. The acquisition of a mid-range
computer in 1995 minimized the exposure to Year 2000 problems. The estimated
cost of the Year 2000 Project is approximately $250,000 of which approximately
$50,000 was expensed in the first quarter of fiscal 1999 and $50,000 was
expensed as of the end of the Company's fiscal year ended September 30, 1998.
The failure to correct a material Year 2000 problem could result in an
interruption in, or failure of, certain normal business activities or
operations. Such failures could materially and adversely affect the Company's
results of operations, liquidity and financial condition. Due to the general
uncertainty inherent in the Year 2000 problem, resulting mostly from the
uncertainty of the Year 2000 readiness of third-party suppliers and customers,
the Company is unable to determine at this time whether the consequences of Year
2000 failures will have a material impact on the Company's results of
operations, liquidity or financial condition. The Year 2000 Project is expected
to significantly reduce the Company's level of uncertainty about the Year 2000
problem and, in particular, about the Year 2000 compliance and readiness of its
material external agents. The Company believes that, with the completion of the
Project as scheduled, the possibility of significant interruptions of normal
operations should be reduced.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Not applicable.
<PAGE>
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
The annual meeting of shareholders was held on January 28, 1999. The matters
voted upon at the meeting were the election of three directors for three-year
terms and the ratification of independent auditors for the current fiscal year.
The number of votes cast for, against or withheld with respect to each nominee
for director elected at the meeting were as follows:
Nominee Votes For Votes Against Votes Withheld
Merwin J. Ray 10,990,337 0 75,631
Bradford T. Ray 10,990,627 0 75,341
Doug A. Bawel 10,986,213 0 79,755
The number of votes cast for, against or abstained with respect to the selection
of PricewaterhouseCoopers LLP as the Company's independent accountants were as
follows:
Votes For Votes Against Votes Withheld
11,016,377 27,051 22,540
Item 6. Exhibit and Reports on Form 8-K
(a) The following exhibit is filed as a part of this report:
Exhibit 27--Financial Data Schedule - December 31, 1998.
(b) No report on from 8-K was filed during the quarter ended December 31, 1998
<PAGE>
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.
STEEL TECHNOLOGIES INC.
(Registrant)
By __________________________________
Joseph P. Bellino
Chief Financial Officer
(Principal Financial and
Chief Accounting Officer)
Dated February 13, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
condenced consolidated balance sheet at December 31, 1998 and condenced
consolidated statement of income for the three months ended December 31, 1998
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000771790
<NAME> 6eo$uzzv
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> DEC-31-1998
<CASH> 11,794
<SECURITIES> 0
<RECEIVABLES> 54,525
<ALLOWANCES> (994)
<INVENTORY> 79,570
<CURRENT-ASSETS> 147,388
<PP&E> 169,820
<DEPRECIATION> (63,833)
<TOTAL-ASSETS> 283,322
<CURRENT-LIABILITIES> 59,435
<BONDS> 95,132
0
0
<COMMON> 17,003
<OTHER-SE> 131,148
<TOTAL-LIABILITY-AND-EQUITY> 283,322
<SALES> 98,203
<TOTAL-REVENUES> 98,203
<CGS> 85,249
<TOTAL-COSTS> 85,249
<OTHER-EXPENSES> 6,243
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,705
<INCOME-PRETAX> 5,006
<INCOME-TAX> 2,015
<INCOME-CONTINUING> 2,991
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,991
<EPS-PRIMARY> .26
<EPS-DILUTED> .26
</TABLE>
