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
AND EXCHANGE ACT OF 1934
For the quarterly period ended July 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 0-16567
Sanderson Farms, Inc.
(Exact name of registrant as specified in its charter)
Mississippi 64-0615843
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
225 North Thirteenth Avenue Laurel, Mississippi 39440
(Address of principal executive offices) (Zip Code)
(601) 649-4030
(Registrant's telephone number, including area code)
Not Applicable
(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 periods that the
registrant was required to file such reports), and (2) has been subject to such
filing requirement for the past 90 days.
Yes X No _____
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes _____ No _____
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Common Stock, $1 Per Share Par Value---14,370,080 shares outstanding as of
July 31, 1998.
<PAGE>
INDEX
SANDERSON FARMS, INC. AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets--July 31, 1998 and
October 31, 1997
Condensed consolidated statements of income (loss)--Three months ended
July 31, 1998 and 1997; Nine months ended July 31, 1998 and 1997
Condensed consolidated statements of cash flows--Nine months ended
July 31, 1998 and 1997
Notes to condensed consolidated financial statements--
July 31, 1998 and 1997
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
PART II OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
SANDERSON FARMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
July 31, October 31,
1998 1997
(Unaudited) (Note)
(In thousands)
<S> <C> <C>
Assets
Current assets
Cash and temporary cash investments $ 1,185 $ 1,531
Accounts receivables, net 28,035 30,934
Inventories - Note 2 43,895 44,210
Refundable income taxes -0- 2,112
Other current assets 6,854 5,535
------- -------
Total current assets 79,969 84,322
Property, plant and equipment 325,301 310,721
Less accumulated depreciation (148,418) (132,533)
------- -------
176,883 178,188
Other assets 1,602 2,383
------- -------
Total assets $258,454 $264,893
======= =======
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and
accrued expenses $ 20,761 $ 15,157
Current maturities of long-
term debt 4,018 3,114
------- -------
Total current liabilities 24,779 18,271
Long-term debt, less current maturities 103,880 118,782
Deferred income taxes 11,069 11,069
Stockholders' equity
Preferred Stock:
Series A Junior Participating
Preferred Stock, $100 par value:
authorized 500,000 shares; none
issued
Par value to be determined by the
Board of Directors: authorized
4,500,000 shares; none issued
Common Stock, $1 par value: authorized
100,000,000 shares; issued and
outstanding shares - 14,370,080
and 14,367,580 at July 31, 1998 and
October 31, 1997, respectively 14,370 14,368
Paid-in capital 11,674 11,447
Retained earnings 92,682 90,956
------- -------
Total stockholders' equity 118,726 116,771
Total liabilities and stockholders' equity $258,454 $264,893
</TABLE>
NOTE: The consolidated balance sheet at October 31, 1997 has been derived from
the audited financial statements at that date but does not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements.
<PAGE>
<TABLE>
<CAPTION>
SANDERSON FARMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(UNAUDITED)
Three Months Ended Nine Months Ended
July 31, July 31,
1998 1997 1998 1997
(In thousands, except shares and per share data)
<S> <C> <C> <C> <C>
Net sales $136,287 $121,895 $378,543 $354,952
Cost and expenses:
Cost of sales 121,269 119,730 352,496 335,486
Selling, general and
administrative 4,338 4,582 14,085 14,839
------- ------- ------- -------
125,607 124,312 366,581 350,325
------- ------- ------- -------
OPERATING INCOME 10,680 (2,417) 11,962 4,627
Other income (expense):
Interest income 53 36 171 121
Interest expense (1,908) (2,018) (5,927) (4,598)
Other (30) 57 (44) 46
------- ------- ------- -------
(1,885) (1,925) (5,800) (4,431)
------- ------- ------- -------
INCOME (LOSS) BEFORE INCOME
TAXES AND EXTRAORDINARY GAIN 8,795 (4,342) 6,162 196
Income tax expense (benefit) 3,255 (1,637) 2,280 74
------- ------- ------- -------
INCOME (LOSS)BEFORE
EXTRAORDINARY GAIN 5,540 (2,705) 3,882 122
Extraordinary gain from fire (net
of income taxes of $406,000) -0- 676 -0- 676
------- ------- ------- -------
NET INCOME (LOSS) $ 5,540 $ (2,029) $ 3,882 $ 798
======= ======= ======= =======
Earnings (loss) per share:
Basic earnings (loss) per share
before extraordinary gain $ .39 $ (.19) $ .27 $ .01
Basic earnings per share from
extraordinary gain .00 .05 .00 .05
------- ------- ------- -------
Basic earnings (loss)
per share $ .39 $ (.14) $ .27 $ .06
======= ======= ======= =======
Diluted earnings (loss)
per share $ .38 $ (.14) $ .27 $ .06
======= ======= ======= =======
Dividends per share $ .05 $ .05 $ .15 $ .15
======= ======= ======= =======
Basic weighted average
shares outstanding 14,370,080 14,366,580 14,368,608 14,364,657
========== ========== ========== ==========
Diluted weighted average
shares outstanding 14,443,359 14,366,580 14,419,403 14,464,150
========== ========== ========== ==========
See notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SANDERSON FARMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
July 31,
1998 1997
(In thousands)
<S> <C> <C>
Operating activities
Net income $ 3,882 $ 798
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization 17,292 15,672
Change in assets and liabilities:
(Increase) decrease in accounts receivable 2,899 (3,631)
(Increase) decrease in inventories 315 (5,405)
Decrease in refundable income taxes 2,112 -0-
Increase in other assets (1,041) (2,695)
Increase in accounts payable
and accrued expenses 5,604 3,015
------- -------
Total adjustments 27,181 6,956
------- -------
Net cash provided by
operating activities 31,063 7,754
Investing activities
Net proceeds from sales of property
and equipment 189 6
Capital expenditures (15,673) (38,102)
------- -------
Net cash used in investing activities (15,484) (38,096)
Financing activities
Principal payments on long-term debt (2,998) (2,934)
Net change in borrowings under revolving
line of credit (11,000) 26,000
Long-term borrowings 0 4,945
Principal payments received on note
receivable-E.S.O.P. 202 125
Net proceeds from issuance of common stock 27 39
Dividends paid (2,156) (2,155)
------- -------
Net cash provided by (used in)
financing activities (15,925) 26,020
------- -------
Net decrease in cash and temporary
cash investments (346) (4,322)
Cash and temporary cash investments
at beginning of period 1,531 4,879
------- -------
Cash and temporary cash investments
at end of period $ 1,185 $ 557
======= =======
See notes to condensed consolidated financial statements.
</TABLE>
SANDERSON FARMS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
July 31, 1998
NOTE 1 -- BASIS OF PRESENTATION
NOTE 2--INVENTORIES
Inventories consisted of the following:
<TABLE>
<CAPTION>
JULY 31, October 31,
1998 1997
(In thousands)
<S> <C> <C>
Live poultry-broilers and breeders $26,691 $24,980
Feed, eggs and other 6,814 5,790
Processed poultry 4,101 5,238
Processed food 3,012 5,234
Packaging materials 3,277 2,968
------- -------
$43,895 $44,210
======= =======
</TABLE>
NOTE 3--INCOME TAXES
Deferred income taxes relate principally to cash basis temporary differences and
depreciation expense which are accounted for differently for financial and
income tax purposes. Effective November 1, 1988, the Company changed from the
cash to the accrual basis of accounting for its farming subsidiary. The Taxpayer
Relief Act of 1997 (the "Act") provides that the taxes on the cash basis
temporary differences as of that date are payable over the next 20 years or in
the first fiscal year in which the Company fails to qualify as a "Family Farming
Corporation" provided there are no changes in ownership control. Management does
not anticipate the payment of such taxes related to these cash basis temporary
differences during fiscal 1998.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
General
The following Discussion and Analysis should be read in conjunction with
Management's Discussion and Analysis of Financial Condition and Results of
Operations included in Item 7 of the Company's Annual Report on Form 10-K for
its fiscal year ended October 31, 1997.
This Quarterly Report, and other periodic reports filed by the Company under the
Securities and Exchange Act of 1934, and other written and oral statements made
by it or on its behalf, may include forward-looking statements, which are based
on a number of assumptions about future events and are subject to various risks,
uncertainties and other factors that may cause actual results to differ
materially from the views, beliefs and estimates expressed in such statements.
These risks, uncertainties and other factors include, but are not limited to the
following:
(1) Changes in the market price for the Company's finished products and feed
grains, both of which may fluctuate substantially and exhibit cyclical
characteristics typically associated with commodity markets.
(2) Changes in economic and business conditions, monetary and fiscal policies or
the amount of growth, stagnation or recession in the global or U.S. economies,
either of which may affect the demand for the Company's finished products, the
value of inventories, the collectability of accounts receivable or the financial
integrity of customers.
(3) Changes in laws, regulations, and other activities in government agencies
and similar organizations applicable to the Company and the poultry industry.
(4) Various inventory risks due to changes in market conditions.
(5) Changes in and effects of competition, which is significant in all markets
in which the Company competes, with regional and national firms, some of which
have greater financial and marketing resources than the Company.
(6) Changes in accounting policies and practices adopted voluntarily by the
Company or required to be adopted by generally accepted accounting principles.
Readers are cautioned not to place undue reliance on forward-looking statements
made by or on behalf of Sanderson Farms. Each such statement speaks only as of
the day it was made. The Company undertakes no obligation to update or to revise
any forward-looking statements. The factors described above can not be
controlled by the Company. When used in this Quarterly Report, the words
"believes," "estimates," "plans," "expects," "should," "outlook," and
"anticipates" and similar expressions as they relate to the Company or its
management are intended to identify forward-looking statements.
The Company's poultry operations are integrated through its control of all
functions relative to the production of its chicken products, including hatching
egg production, hatching, feed manufacturing, raising chickens to marketable age
("grow out"), processing, and marketing. Consistent with the poultry industry,
the Company's profitability is substantially impacted by the market prices for
its finished products and feed grains, both of which may fluctuate substantially
and exhibit cyclical characteristics typically associated with commodity
markets. Other costs, excluding feed grains, related to the profitability of the
Company's poultry operations, including hatching egg production, hatching,
growing, and processing cost, are responsive to efficient cost containment
programs and management practices.
<PAGE>
The Company believes that value-added products are subject to less price
volatility and generate higher, more consistent profit margins than whole
chickens ice packed and shipped in bulk form. To reduce its exposure to market
cyclicality that has historically characterized commodity chicken market prices,
the Company has increasingly concentrated on the production and marketing of
value-added product lines with emphasis on product quality, customer service and
brand recognition. Nevertheless, market prices continue to have a significant
influence on prices of the Company's chicken products. The Company adds value to
its poultry products by performing one or more processing steps beyond the stage
where the whole chicken is first saleable as a finished product, such as
cutting, deep chilling, packaging and labeling the product. The Company believes
that one of its major strengths is its ability to change its product mix to meet
customer demands.
The Company's processed and prepared foods product line includes over 200
institutional and consumer packaged food items that it sells nationally and
regionally, primarily to distributors, food service establishments and
retailers. A majority of the prepared food items are made to the specifications
of food service users.
RESULTS OF OPERATIONS
For the three months ended July 31, 1998, net sales increased $14.4 million or
11.8% as compared to the three months ended July 31, 1997. Net sales of poultry
products during the same period increased $10.0 million or approximately 9.9%,
while net sales of food products increased $4.4 million or 21.3%. This increase
in net sales is a result of an increase of approximately 8.8% of pounds of
product sold and an increase in the average sale price of 2.8% during the
three-month period ended July 31, 1998. Pounds of poultry products produced and
sold during the three-month period increased approximately 8.3% as a result of
the Company's new poultry complex in Brazos and Robertson counties, Texas and an
increase in the average sale price of poultry products of approximately 1.5% as
compared to the same period in fiscal 1997. A simple average of the Georgia dock
price for the third quarter ended July 31, 1998, as compared to the same period
in fiscal 1997 increased 1.7%. The Company's sales of prepared foods increased
as a result of increased sales of cooked products offset by a decrease in the
pounds of corn dogs produced and sold and an increase of approximately 5.1% in
the average sale prices of food products during the three months ended July 31,
1998 as compared to the same period in 1997.
For the nine months ended July 31, 1998, net sales increased approximately $23.6
million or approximately 6.6% as compared to the nine months ended July 31,
1997. This increase in net sales for the nine-month period was a result of an
increase in the pounds of product sold of approximately 9.0% which was partially
offset by a decrease the average sale price of 2.1% as compared to the same
period in fiscal 1997. Pounds of poultry product produced and sold increased
8.7% while pounds of food products sold increased approximately 13.0% for the
nine months ended July 31, 1998 as compared to the nine months ended July 31,
1997. The increase in pounds of poultry products sold is a result of the
additional pounds produced and sold at the Company's Texas poultry complex which
began operation during the first quarter of 1997 and reached full first shift
capacity during the fourth quarter of fiscal 1997. The increase in prepared food
products sold during the nine-month period is a result of a change in mix of
prepared foods sold when compared to the same period in 1997. A simple average
of the Georgia dock price for the nine months ended July 31, 1998 as compared to
the same period in fiscal 1997 reflects a decrease of approximately 6.8%.
During the third quarter ended July 31, 1998, cost of sales increased $1.5
million or 1.3% as compared to the third quarter ended July 31, 1997. Cost of
sales of poultry products decreased approximately $3.3 million or 3.3% as a
results of lower feed cost and increased pounds produced. A simple average of
the corn and soy meal cash market prices for the three months ended July 31,
1998, reflected decreases of 9.6% and 38.7%, respectively when compared to the
same period in fiscal 1997. An increase in the cost of sales of prepared food
products of $4.8 million or 25.6% was a result of increased pounds of food
products produced and a change in product mix.
Cost of sales for the nine months ended July 31, 1998 as compared to the nine
months ended July 31, 1998, increased $16.9 million or 5.1%. Cost of sales of
poultry products increased modestly by $1.2 million or .4% while cost of sales
of food products increased approximately $15.8 million or 31.3% for the period.
The increased cost of sales of poultry products for the nine-month period ended
July 31, 1998 as compared to the nine-month period ended July 31, 1997, resulted
from increased pounds produced and sold, which increase was partially offset by
a decrease in the average cost of feed grains. A simple average of the market
price for corn and soy meal reflected a decrease of approximately 7.0% and
29.5%,respectively, during the nine-month period in fiscal 1998 as compared to
the same nine-month period in fiscal 1997. The increase in cost of sales of
prepared food products is a result of an increase in the sales of cooked chicken
products.
Selling, general and administrative expenses for the three months and the nine
months ended July 31, 1998 decreased $.2 and $.8 million as compared to the same
periods for fiscal 1997. These decreases are attributable to higher selling,
general and administrative cost associated with the start-up of the Texas
complex during fiscal 1997.
In the third quarter of fiscal 1998, as compared to the third quarter of fiscal
1997, the Company's operating income increased approximately $13.1 million. This
improvement is a result of increases in the average sale price for poultry
products and lower average cost of feed grains. For the nine months ended July
31, 1998 as compared to the some period in 1997, operating income increased $7.4
million. This increase is a result of increased pounds of products sold and
lower average cost of feed grains, which were partially offset by a decrease in
the average price of poultry products.
Interest expense during the three months ended July 31, 1998 as compared to the
three months ended July 31, 1997, reflects a decrease of $.1 million. For the
nine months ended July 31, 1998 as compared to the nine months ended July 31,
1997, interest expense increased $1.3 million. This increase is a result of
higher outstanding debt incurred with the construction and start-up of the Texas
Complex and the affect of $.6 million of interest cost which was capitalized
during the first nine months of fiscal 1997. As in the third quarter of fiscal
1998, the Company anticipates that interest expense will be lower for the fourth
quarter of fiscal 1998 as compared to the same period during fiscal 1997.
The Company's effective tax rate for the first nine months of fiscal 1998 and
fiscal 1997 was approximately 37.0% and 37.7%, respectively.
Liquidity and Capital Resources
The Company's working capital on July 31, 1998 was 55.2 million and its current
ratio was 3.2 to 1 as compared to working capital of $66.1 million and a current
ration of 4.6 to 1 on October 31, 1997. During the first nine months of fiscal
1998 the Company expended approximately $15.7 million on planned capital
projects, which represents a significant reduction from the $38.1 million
expended in fiscal 1997. This reduction is due primarily to the completion of
construction on the Texas complex during fiscal 1997. The Company anticipates
that capital expenditures for fiscal 1998 will remain below the fiscal 1997
levels.
<PAGE>
The capital budget for fiscal 1998 has been increased to $23.3 from $12.0
million as of November 1, 1997. Included in the capital budget for fiscal 1998
are the anticipated cost of adding a second shift to the Texas complex,
approximately $1.9 million relating to fiscal 1997 items that were completed or
started and other items that include cost of renovations, changes and additions
to existing processing facilities to allow better product flows and product mix
for more product flexibility.
The Company believes that anticipated capital expenditures for fiscal 1998 will
be funded from working capital and by cash flows from operations; however, if
needed the Company has $49.0 million available under its revolving credit
agreement as of July 31, 1998. As of July 31, 1998, the Company increased its
revolving credit facility by $5.0 million to $130.0 million and extended the
revolving credit maturity date by one year.
Impact of Year 2000 Issue
The Company is continuing to assess the impact of the Year 2000 issue on its
computer systems and believes that certain software currently in use will have
to be modified or replaced. The Company estimates the cost of modifications to
existing software and conversions to new software to be approximately $.5
million and will be substantially completed by January 31, 1999. With the
modifications to existing software and conversions to new software, the Year
2000 issue will not pose significant operational problems for the Company's
computer systems. However, if such modifications and conversions are not made,
or are not completed timely, the year 2000 issue could have a material impact on
the operations of the Company.
The Company's suppliers, vendors and equipment manufacturers, have indicated
that they continue to assess the impact of the year 2000 issue on their
operations. At this time, the Company believes that it's suppliers, vendors and
equipment manufacturers will be year 2000 compatible. However, in the event of
an unforeseen problem, the Company is studying contingence plans that may
include higher levels of inventories of supplies and raw materials.
The costs of the projects and the date on which the Company believes it will
complete the Year 2000 modifications are based on management's best estimates,
which were derived utilizing numerous assumptions of future events, including
the continued availability of certain resources and other factors. However,
there can be no guarantee that these estimates will be achieved and actual
results could differ materially from those anticipated. Specific factors that
might cause such material differences include, but are not limited to, the
availability and cost of personnel trained in this area, the ability to locate
and correct all relevant computer codes, and similar uncertainties.
This Quarterly Report does not address the Year 2000 issues that are raised in
the Security and Exchange Commission's Release No. 34-40277, which are not
required until the Company files its Annual Report on Form 10-K for the fiscal
year ending October 31, 1998.
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibits are filed with this report
Exhibit 15a Independent Accountants' Review Report
Exhibit 15b Accountants' Letter re: Unaudited Financial
Information
(b) The Company did not file any reports on Form 8-K during the three
months ended July 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.
_____ SANDERSON FARMS, INC. _______
(Registrant)
Date: August 20, 1998 By: /s/D. Michael Cockrell
D. Michael Cockrell
Treasurer and Chief
Financial Officer
Date: August 20, 1998 By: /s/James a. Grimes
James A. Grimes
Secretary and Principal
Accounting Officer
<PAGE>
EXHIBIT 15a
INDEPENDENT AUDITORS' REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION
Shareholders and
Board of Directors
Sanderson Farms, Inc.
We have reviewed the accompanying condensed consolidated balance sheet of
Sanderson Farms, Inc. and subsidiaries as of July 31, 1998, and the related
condensed consolidated statements of income (loss) for the three-month and
nine-month periods ended July 31, 1998 and 1997, and the condensed consolidated
statements of cash flows for the nine-month periods ended July 31, 1998 and
1997. These financial statements are the responsibility of the Company's
management.
We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data, and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit in
accordance with generally accepted auditing standards, which will be performed
for the full year with the objective of expressing an opinion regarding the
financial statements taken as a whole. Accordingly, we do not express such an
opinion.
Based on our reviews, we are not aware of any material modifications that should
be made to the accompanying condensed consolidated financial statements referred
to above for them to be in conformity with generally accepted accounting
principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of Sanderson Farms, Inc. and
subsidiaries as of October 31, 1997, and the related consolidated statements of
income, stockholders' equity and cash flows for the year then ended (not
presented herein) and in our report dated December 12, 1997, we expressed an
unqualified opinion on those consolidated financial statements. In our opinion,
the information set forth in the accompanying condensed consolidated balance
sheet as of October 31, 1997, is fairly stated, in all material respects, in
relation to the consolidated balance sheet from which it has been derived.
/s/Ernst & Young LLP
Jackson, Mississippi
August 18, 1998
<PAGE>
EXHIBIT 15b
Shareholders and Board of Directors
Sanderson Farms, Inc.
We are aware of the incorporation by reference in Post-Effective Amendment No.
1 to the Registration Statement (Form S-8-No. 33-67474) of Sanderson Farms, Inc.
for the registration of 750,000 shares of its common stock of our report dated
August 18, 1998 relating to the unaudited condensed consolidated interim
financial statements of Sanderson Farms, Inc. that are included in its Form 10-Q
for the quarter ended July 31, 1998.
/s/Ernst & Young LLP
Jackson, Mississippi
August 18, 1998
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> JUL-31-1998
<CASH> 1185
<SECURITIES> 0
<RECEIVABLES> 28390
<ALLOWANCES> 355
<INVENTORY> 43895
<CURRENT-ASSETS> 79969
<PP&E> 325301
<DEPRECIATION> 148418
<TOTAL-ASSETS> 258454
<CURRENT-LIABILITIES> 24779
<BONDS> 103880
0
0
<COMMON> 14370
<OTHER-SE> 104356
<TOTAL-LIABILITY-AND-EQUITY> 258454
<SALES> 378543
<TOTAL-REVENUES> 378543
<CGS> 352496
<TOTAL-COSTS> 352496
<OTHER-EXPENSES> 13958
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5927
<INCOME-PRETAX> 6162
<INCOME-TAX> 2280
<INCOME-CONTINUING> 3882
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3882
<EPS-PRIMARY> .27
<EPS-DILUTED> .27
</TABLE>
