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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
Commission file number 1-9164
PHOSPHATE RESOURCE PARTNERS LIMITED PARTNERSHIP
(Exact name of Registrant as specified in its charter)
Delaware 72-1067072
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2100 Sanders Road
Northbrook, Illinois 60062
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (847) 272-
9200
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 .
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<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
The accompanying interim condensed financial statements of
Phosphate Resource Partners Limited Partnership (PLP) do not
include all disclosures normally provided in annual financial
statements. These financial statements, which should be read in
conjunction with the financial statements contained in PLP's Annual
Report on Form 10-K for the year ended December 31, 1997, are
unaudited but include all adjustments which PLP's management
considers necessary for a fair presentation. These adjustments
consist of normal recurring accruals. Certain 19967 amounts have
been reclassified to conform to the 19987 presentation. Interim
results are not necessarily indicative of the results expected for
the full year.
<TABLE>
CONDENSED STATEMENT OF EARNINGS
(In millions except per unit amounts)
<CAPTION>
Three months ended Six months ended Nine Months Ended
June 30, June 30, March 31,
19987 19967 1997 1996
1998 1997
- -------------------------------------------------------------------
- -------
<S> <C> <C> <C> <C>
Net sales $196.0 $228.8 $354.8 $440.6 $
716.9 $1,933.8 $2,0
Cost of goods sold 142.6 176.4 266.0 331.4
531.4 1,422.3 1,488.0
------ ------ ------ ------
Gross margins 53.4 52.4 88.8 109.2
185.5 511.5 537.9
Selling, general and
administrative expenses 7.7 12.8 15.9 25.3
61.9 177.8 166.1
Exploration expense 9.4 - 18.9 6.2
------ ------ ------ ------
Operating earnings 36.3 39.6 54.0 77.7
80.3 333.7 328.5
Interest expense 10.0 8.5 19.6 17.0
2.8 (7.0) (7.6)
Other (income) expense, net (0.6) 0.5 (1.3) 0.9
------ ------ ------ ------
Earnings $ 26.9 $ 30.6 $ 35.7 $ 59.8
61.5 302.1 286.1
====== ====== ====== ======
Earnings per unit $ 0.26 $ 0.30 $ 0.35 $ $
1.13 $ .84 0.58
====== ====== ====== ======
Average units outstanding 103.5 103.5 103.5 103.5
95.1 92.7
====== ====== ====== ======
Distributions paid per publicly
held unit $ - $ 0.31 $ - $ 0.91
====== ====== ====== ======
(See Notes to Condensed Financial Statements on Page 4)
</TABLE>
<PAGE>
<TABLE>
CONDENSED BALANCE SHEET
(In millions)
<CAPTION>
June 30, December
31,
Assets 1998 1997
- -------------------------------------------------------------------
- -----------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 17.3 $ 17.4
Receivables, net 47.5 47.3
Inventories 117.7 126.0
Other current assets 0.9 2.4
------ ------
Total current assets 183.4 193.1
Property, plant and equipment, net 476.1 432.5
Other assets 40.2 39.9
------ ------
Total assets $699.7 $665.5
====== ======
Liabilities and Partners' Deficit
- -------------------------------------------------------------------
- -----------
Current liabilities:
Accounts payable and accrued liabilities $ 70.7 $ 94.7
Short-term debt and current maturities
of long-term debt 17.9 14.3
------ ------
Total current liabilities 88.6 109.0
Long-term debt, less current maturities 525.1 505.5
Other noncurrent liabilities 218.7 219.4
Partners' deficit (132.7) (168.4)
------ ------
Total liabilities and partners' deficit $699.7 $665.5
====== ======
(See Notes to Condensed Financial Statements on Page 4)
</TABLE>
<PAGE>
<TABLE>
CONDENSED STATEMENT OF CASH FLOWS
(In millions)
<CAPTION>
Six months ended
June 30,
1998 1997
- -------------------------------------------------------------------
- ----------
Cash Flows from Operating Activities
- ------------------------------------
<S> <C> <C>
Earnings $ 35.7 $ 59.8
Adjustments to reconcile earnings to net cash
provided by operating activities:
Oil and gas exploration expenses 14.3 6.2
Depreciation, depletion and amortization 12.5 24.1
Cash distributions from IMC-Agrico in excess
of interest in capital - 22.8
Reclamation and mine shutdown expenditures 0.3 (11.7)
Other charges and credits, net (2.0) 2.3
Changes in:
Receivables (0.2) 4.2
Inventories 8.3 (18.5)
Other current assets 1.5 0.2
Accounts payable and accrued liabilities (22.7) 0.6
------ ------
Net cash provided by operating activities 47.7 90.0
------ ------
Cash Flows from Investing Activities
- ------------------------------------
Capital expenditures (48.9) (23.1)
Proceeds from sales of property, plant
and equipment 1.6 -
------ ------
Net cash used in investing activities (47.3) (23.1)
------ ------
Net cash provided before financing activities 0.4 66.9
------ ------
Cash Flows from Financing Activities
- ------------------------------------
Cash distributions to partners - (75.1)
Payments of long-term debt (11.1) (86.1)
Proceeds from long-term debt 10.5 80.1
Change in short-term debt, net 0.1 -
------ ------
Net cash used in financing activities (0.5) (81.1)
------ ------
Net change in cash and cash equivalents (0.1) (14.2)
Cash and cash equivalents - beginning of period 17.4 19.4
------ ------
Cash and cash equivalents - end of period $ 17.3 $ 5.2
====== ======
(See Notes to Condensed Financial Statements on Page 4)
</TABLE>
<PAGE>
NOTES TO CONDENSED FINANCIAL STATEMENTS
1. Oil and Gas Exploration Charges
------------------------------
As part of the exploration program with McMoRan Oil & Gas
Company (MOXY), PLP incurred $9.4 million and $18.9 million of
exploration expenses for the three and six months ended June 30,
1998, respectively. These expenses were primarily related to the
following: (i) dry hole costs which largely resulted from
unsuccessful drilling at West Cameron 157, Atchafalaya Bay and
Grand Isle 54; and (ii) geological and geophysical expenses.
In 1997, PLP participated in a joint venture with Phillips
Petroleum Company and MOXY in a North Bay Junop prospect (North Bay
Junop Joint Venture). In April 1997, the North Bay Junop Joint
Venture completed drilling of the second of two high-risk,
high-potential prospects which have been drilled within the North
Bay Junop Joint Venture's project area in south Louisiana. The
well reached total depth but did not encounter commercial
hydrocarbons in the primary objective zones, but was completed in a
shallower zone, resulting in a $6.2 million charge to exploration
expense for the six months ended June 30, 1997.
Item 2.Management's Discussion and Analysis of Financial Condition
and Results of Operations. (1)
Results of Operations
- ---------------------
Three months ended June 30, 1998 vs. three months ended June 30,
1997
- -------------------------------------------------------------------
- --
Overview
Phosphate Resource Partners Limited Partnership, formerly
Freeport-McMoRan Resource Partners, Limited Partnership (PLP), is a
joint venture partner in IMC-Agrico Company (IMC-Agrico).
IMC-Agrico's business includes the mining and sale of phosphate
rock and the producing, marketing and distributing of phosphate
crop nutrients and animal feed ingredients. IMC-Agrico was formed
as a joint venture partnership in July 1993 when PLP and IMC Global
Inc. (IMC) contributed their respective phosphate crop nutrients
businesses to IMC-Agrico. PLP's business operations now consist
of: (i) its joint venture interest in IMC-Agrico; (ii) its
interest in the oil and gas exploration program with McMoRan Oil &
Gas Company ( MOXY); and (iii) certain other oil and gas
operations.
PLP's second quarter net sales of $196.0 million decreased
approximately 14 percent from $228.8 million in the year-earlier
period principally due to the absence in this year's results of
PLP's sulphur business and its 58.3 percent interest in Main Pass
Block 299 sulphur and oil property (Main Pass), both of which were
transferred to Freeport-McMoRan Sulphur Inc. (FSC) as a result of
Freeport-McMoRan Inc.'s (FTX) merger with IMC (FTX Merger) in
December 1997.
PLP's gross margins of $53.4 million in the second quarter
represented a two percent increase from gross margins of $52.4
million in the second quarter of 1997. The increase of 27 percent
in IMC-Agrico's gross margins, partially offset by the absence of
the sulphur and Main Pass operations discussed above were the
primary reasons for this increase.
IMC-Agrico Company
IMC-Agrico's operations consist of its phosphate crop nutrients
business (Crop Nutrients) and its animal feed ingredients business
(Feed Ingredients).
The amounts included in the following Crop Nutrients and Feed
Ingredients discussions are shown in total for IMC-Agrico, unless
otherwise indicated.
Crop Nutrients
Crop Nutrients' net sales for the second quarter improved 13
percent to $456.6 million compared to $404.3 million for the same
period last year largely due to increased sales volumes and higher
average sales realizations. Shipments of concentrated phosphates,
primarily diammonium phosphate (DAP) and granular monoammonium
phosphate (GMAP), increased by $37.9 million from the same quarter
in the prior year . The higher volumes resulted from an early
start to the spring planting season, an increase in the number of
supply contracts over the comparable period in the prior year and
favorable logistic conditions related to product movement. Higher
average prices of concentrated phosphates, driven by increased
international DAP realizations as well as an increase in the
transfer price of phosphoric acid sold to Feed Ingredients,
positively impacted net sales by $8.8 million. See Feed
Ingredients discussion below.
Gross margins increased 37 percent to $116.0 million for the
quarter compared to $84.7 million last year, mainly due to lower
production costs and the higher volumes and prices discussed above.
Production costs decreased compared to the prior year's second
quarter primarily due to lower raw material prices for purchased
ammonia and sulphur.
The following table summarizes Crop Nutrients' sales of products
and average selling price for the three months ended June 30:
1998 1997
------ ------
Sales volumes (in thousands of short tons) (a):2,161 1,958
Average DAP price per ton (b): $178 $176
(a)Sales volumes include tons sold captively and represent dry
product tons, primarily DAP.
(b)Average prices represent sales made FOB mine/plant.
Feed Ingredients
Feed Ingredients' net sales decreased two percent to $38.0
million in the current quarter from $38.6 million in the prior year
quarter, mainly due to a decrease of one percent in sales volumes,
which unfavorably impacted net sales by $0.4 million. This was
primarily the result of decreased sales to the Asian market as a
result of local economic conditions, partially offset by an
increase in sales to Latin America.
Gross margins decreased 47 percent to $6.2 million for the
second quarter from $11.7 million in the same quarter one year ago.
This was mainly due to the lower volumes discussed above coupled
with higher production costs, which primarily resulted from a
change in the transfer price of phosphoric acid from Crop Nutrients
to Feed Ingredients.
Oil and Gas Operations
PLP participates in a multi-year, aggregate $210.0 million
McMoRan Oil & Gas Exploration Program (MOXY Exploration Program).
The exploration expenses of $9.4 million for the three months ended
June 30, 1998 related primarily to the MOXY Exploration Program and
were largely comprised of the following: (i) dry hole costs which
largely resulted from unsuccessful drilling at West Cameron 157,
Atchafalaya Bay and Grand Isle 54; and (ii) geological and
geophysical expenses.
Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased $5.1
million, or 40 percent, to $7.7 million for the second quarter as
compared to $12.8 million in the second quarter one year ago. The
decrease was primarily due to the absence of certain general and
administrative expenses as a result of the FTX Merger. These
eliminated expenses included the following: (i) $2.3 million of
general and administrative expenses resulting from sulphur
operations which were transferred to FSC; and (ii) $2.9 million of
expenses previously allocated by FTX to PLP, which were eliminated
as a result of the FTX Merger.
Interest Expense
Interest expense totaled $10.0 million for the second quarter,
an increase of $1.5 million or 18 percent from the same period last
year when interest expense totaled $8.5 million. The increase in
interest expense was due to higher average borrowings for the
second quarter in 1998 as compared to the same period of the prior
year primarily as a result of additional borrowings used to fund
oil and gas expenditures related to the MOXY Exploration Program.
Six months ended June 30, 1998 vs. Six months ended June 30, 1997
- -----------------------------------------------------------------
Overview
Net sales for the six months ended June 30, 1998 of $354.8
million decreased 19 percent from $440.6 million in the same period
one year ago primarily as a result of the absence in this year's
results of PLP's sulphur business and its interest in Main Pass,
both of which were transferred to FSC as a result of the FTX
Merger.
PLP's gross margins of $88.8 million for the first six months of
1998 represented a 19 percent decrease versus $109.2 million in the
first six months of 1997. The absence of the sulphur and Main Pass
operations discussed above, partially offset by an increase of five
percent in IMC-Agrico's gross margins, contributed to the decrease.
Crop Nutrients
Crop Nutrients' net sales for the first six months of 1998
improved eight percent to $821.1 million compared to $760.0 million
for the same period last year primarily due to increased
concentrate sales volumes and higher average sales realizations,
which were partially offset by lower urea sales. Sales volumes of
concentrated phosphates, primarily domestic shipments of DAP and
domestic and international shipments of GMAP, increased by $65.9
million from the same prior year period. These favorable volume
variances reflected the following factors: (i) an earlier start to
the spring planting season; (ii) an increase in the number of
supply contracts over the prior period; (iii) favorable logistic
conditions related to product movement; and (iv) low inventory
levels throughout the distribution system. Average sales
realizations for the first six months of 1998 increased slightly as
compared to the prior year period primarily as a result of an
increase in the transfer price of phosphoric acid sold to Feed
Ingredients. See Feed Ingredients discussion below. In contrast,
urea sales for the current six month period decreased $12.0 million
from the prior year period. This was mainly due to a decrease in
volumes sold to a large customer as well as unfavorable pricing
conditions primarily resulting from China's exit from the market in
mid-1997.
Gross margins increased 14 percent to $187.3 million for the
first six months of 1998 compared to $164.6 million for the first
six months of last year, mainly due to lower production costs and
the higher volumes and prices discussed above. Production costs
decreased compared to the prior year's first six months primarily
as a result of lower raw material costs for purchased ammonia and
sulphur.
The following table summarizes Crop Nutrients' sales of products
and average selling price for the six months ended June 30:
1998 1997
------ ------
Sales volumes (in thousands of short tons) (a):3,919 3,568
Average DAP price per ton (b): $175 $177
(a) Sales volumes include tons sold captively and represent dry
product tons, primarily DAP.
(b)Average prices represent sales made FOB mine/plant.
Feed Ingredients
Net sales decreased seven percent to $78.2 million for the first
six months of 1998 from $84.0 million in the first six months of
the prior year, mainly due to a decrease of three percent in sales
volumes, which unfavorably impacted net sales by $5.1 million.
This was primarily the result of decreased sales to the Asian
market as a result of local economic conditions, partially offset
by an increase in sales to Latin America. Slightly lower sales
realizations also had a negative impact of $0.7 on sales.
Gross margins decreased 47 percent to $13.7 million for the
first six months of 1998 from $25.8 million for the first six
months one year ago. This was mainly due to the lower volumes and
prices discussed above coupled with higher production costs, which
primarily resulted from a change in the transfer price of
phosphoric acid from Crop Nutrients to Feed Ingredients.
Oil and Gas Operations
PLP participates in a multi-year, aggregate $210.0 million MOXY
Exploration Program. Exploration expenses were $18.9 million for
the six months ended June 30, 1998 as compared to $6.2 million for
the six months ended June 30, 1997. Current year exploration
expenses were primarily the result of the MOXY Exploration Program
and were largely comprised of the following: (i) dry hole costs
which largely resulted from unsuccessful drilling at West Cameron
157, Atchafalaya Bay and Grand Isle 54; and (ii) geological and
geophysical expenses.
Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased $9.4
million, or 37 percent, to $15.9 million for the first six months
of 1998 as compared to $25.3 million in the same period one year
ago. The decrease was primarily due to the absence of certain
general and administrative expenses as a result of the FTX Merger.
These eliminated expenses included the following: (i) $4.4 million
of general and administrative expenses resulting from sulphur
operations which were transferred to FSC; and (ii) $5.2 million of
expenses previously allocated by FTX, which were eliminated as a
result of the FTX Merger.
Interest Expense
Interest expense totaled $19.6 million for the first six months
of 1998, up $2.6 million or 15 percent from the same period last
year when interest expense totaled $17.0 million. The increase in
interest expense was due to higher average borrowings for the first
six months in 1998 as compared to the same period of the prior year
primarily as a result of additional borrowings used to fund oil and
gas expenditures related to the MOXY Exploration Program.
Capital Resources and Liquidity
- -------------------------------
Liquidity and Operating Cash Flow
Cash and cash equivalents as of June 30, 1998 were $17.3 million
as compared to $17.4 million at December 31, 1997. PLP generates
cash through its joint venture operations in IMC-Agrico and has
borrowing capacity to meet its operating and discretionary spending
requirements. Net cash provided by operating activities totaled
$47.7 million for the six months ended June 30, 1998 versus $90.0
million for the same period one year ago. The decrease in net cash
provided by operating activities of $42.3 million was due to a
reduction in earnings of $24.1 million and a decrease in the cash
distributions from IMC-Agrico in excess of interest in capital of
$22.8 million primarily as a result of PLP's capital and cash
ownership interests in IMC-Agrico becoming equal on July 1, 1997,
partially offset by other net cash increases of $4.6 million.
Net cash used in investing activities for the first six months
of 1998, consisting primarily of capital expenditures, increased to
$47.3 million from $23.1 million in the same period one year ago.
See "Capital Expenditures," below for further detail.
Net cash used in financing activities for the six month period
was $0.5 million for the current year compared to $81.1 million for
the same period in the prior year. The decrease in cash used in
financing activities of $80.6 million was primarily due to the
absence of distributions to partners of $75.1 million during the
first six months of the current year as well as a decrease in net
debt payments of $5.5 million. The absence of distributions to
partners was primarily the result of increased MOXY Exploration
Program funding requirements.
Capital Expenditures
Capital expenditures increased $25.8 million from the prior year
primarily due to an increase in oil and gas expenditures of $25.5
million related to the MOXY Exploration Program which was entered
into by PLP and MOXY in March 1997 and subsequently modified in
December 1997. Capital expenditures related to the MOXY
Exploration Program totaled $33.6 million for the first six months
of 1998 and primarily included: (a) $27.0 million of exploration
costs which were capitalized and will remain so until a
determination of the viability of each well is made; and (b) well
development costs of $6.4 million.
Distributions
In July 1998, PLP declared a distribution of $0.13 per unit
payable on August 14, 1998 to unitholders of record as of August 7,
1998. PLP's distributable cash is shared ratably by PLP's public
unitholders and its administrative managing general partner, IMC,
except that IMC will be entitled to receive payment for cash
distributions not paid in prior quarters ($431.3 million unpaid at
June 30, 1998) from one-half of the quarterly distributable cash
after the payment of $0.60 per unit to all PLP unitholders.
PLP's future distributions will primarily depend on the
following factors: (i) distributions received from IMC-Agrico; (ii)
the cash requirements of its oil and gas exploration activities,
net of any cash flows from production or sale of discovered
reserves; (iii) the level and methods of financing its capital
expenditure needs; and (iv) costs related to reclamation and growth
projects. PLP's share of IMC-Agrico cash distributions totaled
$69.1 million for the first six months of 1998 which reflected the
reduction in PLP's share of cash distributions from IMC-Agrico
effective July 1, 1997 and, thereafter, from 54.4 percent to 41.5
percent. Future distributions from IMC-Agrico will depend
primarily on concentrated phosphate market conditions.
Item 3. Market Risk.
PLP is exposed to the impact of interest rate changes and the
impact of fluctuations in the purchase price of natural gas
consumed in operations, as well as changes in the fair value of its
financial instruments. PLP periodically enters into derivatives in
order to minimize these risks, but not for trading purposes. At
June 30, 1998, PLP's exposure to these market risk factors was not
significant and had not materially changed from December 31, 1997.
Part II. OTHER INFORMATION
Item 1. Legal Proceedings.
Merger Litigation
- -----------------
In August 1997, five identical class action lawsuits were filed
in Chancery Court in Delaware by unitholders of PLP. Each case
named the same defendants and broadly alleged that FTX and FMRP
Inc. (FMRP) had breached fiduciary duties owed to the public
unitholders of PLP. IMC was alleged to have aided and abetted
these breaches of fiduciary duty.
In November 1997, an amended class action complaint was filed
with respect to all cases. The amended complaint named the same
defendants and raised the same broad allegations of breaches of
fiduciary duty against FTX and FMRP for allegedly favoring the
interests of FTX and FTX's common stockholders in connection with
the FTX Merger. The plaintiffs claimed specifically that, by
virtue of the FTX Merger, the public unitholders' interests in
PLP's ownership of IMC-Agrico would become even more subject to the
dominant interest of IMC. The amended complaint seeks
certification as a class action and an injunction against the
proposed FTX Merger or, in the alternative, rescissionary damages.
The defendants' time to answer or otherwise plead to the amended
complaint has been extended.
In May 1998, IMC and PLP (collectively, Plaintiffs) filed a
lawsuit (IMC Action) in Delaware Chancery Court against certain
former directors of FTX (the Director Defendants) and MOXY. IMC
alleges that the Director Defendants, as the directors of PLP's
administrative managing general partner, FTX, owed duties of
loyalty to PLP and its limited partnership unitholders. IMC
further alleges that the Director Defendants breached their duties
by causing PLP to enter into a series of interrelated
non-arm's-length transactions with MOXY, an affiliate of FTX. IMC
also alleges that MOXY knowingly aided and abetted and conspired
with the Director Defendants to breach their fiduciary duties. On
behalf of the PLP public unitholders, IMC seeks to reform or
rescind the contracts that PLP entered into with MOXY and to recoup
the monies lost via PLP's participation in those agreements. The
Director Defendants and MOXY have filed motions to dismiss
Plaintiffs' claims. IMC intends to prosecute this action
vigorously.
Subsequently, in May 1998, Jacob Gottlieb filed an action
(Gottlieb Action) on behalf of himself and all other PLP
unitholders against the Director Defendants, MOXY, and IMC
asserting the same claims that IMC asserts in the IMC Action.
Because IMC and PLP had already asserted these claims, IMC has
filed a motion to dismiss the Gottlieb Action. The court has not
set a briefing schedule for IMC's motion to dismiss. IMC intends
to defend this action vigorously.
Other
- -----
PLP is involved from time to time in various legal proceedings
of a character normally incident to its businesses. PLP believes
that its potential liability in any such pending or threatened
proceedings will not have a material adverse effect on the
financial condition or results of operations of PLP. PLP, through
IMC and IMC-Agrico, maintains liability insurance to cover some,
but not all, potential liabilities normally incident to the
ordinary course of its businesses with such coverage limits as
management deems prudent.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
Exhibit
No. Description
-----------------------------------------------------------
- -----
27 Financial Data Schedule
(b) Reports on Form 8-K.
Up to the date of this report, no reports on Form 8-K were
filed.
* * * * * * * * * * * * * * * *
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.
PHOSPHATE RESOURCE PARTNERS
LIMITED PARTNERSHIP
By: IMC GLOBAL INC.,
Its Administrative Managing
General Partner
By: /s/ Anne M. Scavone
-----------------------
Anne M. Scavone
Vice President and Controller
(on behalf of the Registrant and
as
Chief Accounting Officer)
Date: August 14, 1998
<TABLE> <S> <C>
<PAGE>
<S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 2,200
<SECURITIES> 15,100
<RECEIVABLES> 48,800
<ALLOWANCES> 1,300
<INVENTORY> 117,700
<CURRENT-ASSETS> 183,400
<PP&E> 1,084,200
<DEPRECIATION> 608,100
<TOTAL-ASSETS> 699,700
<CURRENT-LIABILITIES> 88,600
<BONDS> 525,100
<COMMON> 0
0
0
<OTHER-SE> (132,700)
<TOTAL-LIABILITY-AND-EQUITY> 699,700
<SALES> 354,800
<TOTAL-REVENUES> 354,800
<CGS> 266,000
<TOTAL-COSTS> 300,800
<OTHER-EXPENSES> (1,300)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 19,600
<INCOME-PRETAX> 35,700
<INCOME-TAX> 0
<INCOME-CONTINUING> 35,700
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 35,700
<EPS-PRIMARY> .35
<EPS-DILUTED> .35
</TABLE>
