14
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended December 31, 1997
Commission File No. 1-4582
RALSTON PURINA COMPANY
----------------------
-----------------------------------------------------------
(Exact name of registrant as specified in its charter)
MISSOURI 43-0470580
------------------------------------------------------------
(State of Incorporation) (I.R.S. Employer Identification No.)
CHECKERBOARD SQUARE, ST. LOUIS MISSOURI 63164
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(314) 982-1000
------------------------------------------------------------
(Registrant's telephone number, including area code)
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, and (2) has been subject to such filing requirements for the
past 90 days.
YES: X NO: _____
-----
Number of shares of Ralston Purina common stock, $.10 par value, outstanding
as of the close of business on February 6, 1998: 107,154,946.
--------------------
<PAGE>
PART I - FINANCIAL INFORMATION
RALSTON PURINA COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL INFORMATION
(in millions except per share data)
----------------------------------------------------------------
OPERATING RESULTS
Net earnings for the three months ended December 31, 1997 were $857.8, or
$8.35 and $7.80 per share on a basic and diluted basis, respectively.
Included in net earnings for the current quarter is an after-tax gain on the
sale of Soy Protein Products of $705.1 (pre-tax gain of $1.1 billion) and
income from discontinued operations of $15.7. The Soy Protein Products
business was sold to E.I. Du Pont de Nemours and Company (DuPont) on December
3, 1997. Discontinued operations consist of Soy Protein Products through the
sale date and Agricultural Products, which will be spun off during 1998. The
fiscal 1997 first quarter net earnings of $137.4, or $1.32 and $1.23 per share
on a basic and diluted basis, respectively, include earnings from discontinued
operations of $23.1.
Earnings from continuing operations increased $22.7 in the quarter to $137.0
compared to $114.3 for the same period in the prior year. Earnings increased
primarily on higher operating earnings in both the Pet Products and Battery
Products segments. Earnings per share from continuing operations for the
quarter ended December 31, 1997 were $1.31 and $1.24 on a basic and diluted
basis, respectively, compared to $1.09 and $1.02 a year ago.
RESULTS OF CONTINUING OPERATIONS
Net sales increased 4.5% in the quarter ended December 31, 1997 on increased
Pet Products sales. See the following section for comments on sales changes
by Business Segment.
Gross profit as a percentage of sales was 50.8% in the current quarter
compared to 48.8% in the prior year first quarter. The increased percentage
in the current quarter reflects increases in both the Pet Products and Battery
Products segments and increased sales in the higher margin Pet Products
segment. Pet Products' margins were unfavorably impacted in the prior year
quarter by higher grain prices as price increases were insufficient to
maintain historical margin levels.
Selling, general and administrative expenses increased 3.2% in the current
quarter due to increases in Pet Products. Selling, general and
administrative expenses were 17.7% and 17.9% of sales in the current and prior
year first quarters, respectively.
Advertising and promotion expense increased 6.6% in the current quarter due to
higher advertising expenditures and promotion support in Pet Products. As a
percentage of sales, advertising and promotion expense was 14.5% in the
current quarter and 14.2% a year ago. Other income/expense, net, was
unfavorable by $3.3 for the quarter primarily due to higher translation and
exchange losses in the Asia Pacific and South and Central American regions in
the current quarter.
Income taxes, which include federal, state and foreign taxes, were 36.2% of
pre-tax earnings before equity earnings for the current quarter compared to
37.2% in the prior year.
BUSINESS SEGMENTS
Sales for the Pet Products segment increased 9.5% in the quarter on higher
volumes and pricing. Operating profit increased significantly in the quarter
on higher pet food volume and lower ingredient costs. This increase was
partially offset by higher advertising expenditures and promotion support.
Sales for the Battery Products segment were flat in the quarter over the same
period in the prior year. Increased volumes and improved product mix in the
United States and higher volumes in the rechargeable business and in South and
Central America resulted in sales increases. However, sales declined in Asia
Pacific due to Asian currency devaluations, despite significantly higher
volumes and pricing adjustments in the region. In addition, unfavorable
pricing and product mix in Europe resulted in sales declines.
Battery Products' operating profit increased in the quarter on strong
performance in North America and improved results in the rechargeable
business. The rechargeable business results reflect cost reductions in
addition to higher volumes. Asia Pacific results were off slightly in the
quarter as significantly higher volumes, pricing adjustments and cost
reductions were offset by the effects of various Asian currency devaluations.
Results from discontinued operations decreased in the quarter due to lower
earnings for Agricultural Products and Soy Protein Products, which was sold on
December 3, 1997. Agricultural Products earnings decreased due to lower
earnings in Europe and exchange losses from the effects of various currency
devaluations in Asia and Latin America.
MARKET RISKS
The recent economic crises in the Asia Pacific region, accompanied by various
currency devaluations, represent a material change in the market risks faced
by the Company in this region. The Company's Asia Pacific operations consist
primarily of the Battery Products segment. The Company has manufacturing
facilities in this region whose products are both sold locally and exported
outside the region. In addition, the Company sources its raw materials from
within and outside the region. Market risks include the risk of loss of value
in the Company's net investment in the Asia Pacific region as well as lower
dollar profits for the operations in that region and increased foreign
exchange losses.
The depth and duration of the crises in the Asia Pacific region and its
economic effects on the Company are still uncertain. Management will continue
to pursue appropriate actions, as market conditions allow, to mitigate the
impact of the various Asian currency devaluations throughout fiscal 1998.
However, the Company expects the impact on its future earnings to be more
significant as certain Asian currencies have continued to devalue since the
end of the first quarter.
RESTRUCTURING ACTIVITIES
During the quarter ended December 31, 1997, approximately 60 employees were
terminated and cash exit costs of $5.2 were incurred in connection with
restructuring accruals established by the Company in fiscal year 1997.
These provisions were primarily related to the continued rationalization of
Battery Products' production capacity and business structure. At December 31,
1997, the restructuring reserve balance was $61.1.
FINANCIAL CONDITION
The Company's primary source of liquidity is cash flow generated from
operations. For the quarter ended December 31, 1997, cash flow from
continuing operations was $132.7 compared to $153.4 in the prior year quarter.
The decrease in cash flow in the current quarter results from increased cash
earnings, more than offset by changes in working capital items, primarily
increased accounts receivable.
Working capital was $318.3 at December 31, 1997 and $289.7 at September 30,
1997. The increase in working capital is due to increased accounts
receivable, largely offset by increases in notes payable, accounts payable,
and other current liabilities.
Cash used by investing activities increased from $54.8 in the quarter ended
December 31, 1996 to $293.2 in the current quarter. The primary reason for
this increase was the December 1997 acquisition of Edward Baker Petfoods for
$182.5.
<PAGE>
During the current quarter, the Company used the proceeds from the issuance of
short-term debt primarily for the acquisition of Edward Baker Petfoods.
In December 1997, the Company sold its Soy Protein Products operations to
DuPont for $1,554.2, comprised of 22.5 million shares of DuPont common stock
(which stock was valued at $1,399.2 at purchase date) and the assumption of
certain liabilities. This non-cash transaction resulted in an after-tax gain
of $705.1.
As of January 30, 1998, approximately 1,130,400 shares remained under the
Board of Directors' authorization for the purchase of up to 3 million shares
of RAL Stock.
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF EARNINGS
(DOLLARS IN MILLIONS EXCEPT PER SHARE DATA)
QUARTER ENDED DECEMBER 31,
--------------------------
1997 1996
<S> <C> <C>
Net Sales $1,317.1 $1,260.5
--------- ---------
Costs and Expenses
Cost of products sold 648.2 645.4
Selling, general and administrative 233.3 226.1
Advertising and promotion 190.4 178.6
Interest expense 46.3 44.2
Other (income)/expense, net (0.2) (3.5)
-------- ---------
1,118.0 1,090.8
--------- ---------
Earnings from Continuing Operations before
Income Taxes and Equity Earnings 199.1 169.7
Income Taxes (72.1) (63.2)
Equity Earnings, Net of Taxes 10.0 7.8
--------- ---------
Earnings from Continuing Operations 137.0 114.3
Net Earnings from Discontinued Operations 15.7 23.1
Gain on Sale of Discontinued Operations 705.1 -
--------- ---------
Net Earnings 857.8 137.4
Preferred Stock Dividend, Net of Taxes (3.1) (3.4)
--------- ---------
Earnings Available to Common Shareholders $ 854.7 $ 134.0
========= =========
Earnings Per Share
Basic
Earnings from continuing operations $ 1.31 $ 1.09
Net earnings from discontinued operations 0.15 0.23
<PAGE>
Gain on sale of discontinued operations 6.89 -
--------- ---------
Net Earnings $ 8.35 $ 1.32
========= =========
Diluted
Earnings from continuing operations $ 1.24 $ 1.02
Net earnings from discontinued operations 0.14 0.21
Gain on sale of discontinued operations 6.42 -
--------- ---------
Net Earnings $ 7.80 $ 1.23
========= =========
</TABLE>
See Accompanying Notes to Condensed Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEET
(CONDENSED)
(DOLLARS IN MILLIONS)
DECEMBER 31, SEPTEMBER 30,
------------ -------------
1997 1997
------------ -------------
ASSETS
<S> <C> <C>
Current Assets
Cash and cash equivalents $ 113.7 $ 109.1
Receivables, less allowance for doubtful accounts
of $25.0 and $24.8, respectively 897.7 675.2
Inventories
Raw materials and supplies 120.1 119.7
Work in process 93.6 115.8
Finished products 344.8 369.3
Other current assets 120.9 116.4
--------- ---------
Total Current Assets 1,690.8 1,505.5
Investments and Other Assets 2,976.9 1,530.3
Investment in Discontinued Operations 242.9 592.3
Property at Cost 2,224.8 2,160.6
Accumulated depreciation 1,064.1 1,046.9
--------- ---------
1,160.7 1,113.7
Total $6,071.3 $4,741.8
========= =========
LIABILITIES AND SHAREHOLDERS EQUITY
Current Liabilities
Current maturities of long-term debt $ 109.3 $ 106.2
Notes payable 389.4 340.3
Accounts payable 300.7 264.0
Other current liabilities 573.1 505.3
--------- ---------
Total Current Liabilities 1,372.5 1,215.8
Long-Term Debt 1,825.7 1,860.4
Deferred Income Taxes 361.8 -
Other Liabilities 531.1 507.4
Redeemable Preferred Stock 277.2 304.9
Unearned ESOP Compensation (51.7) (63.8)
Shareholders Equity
Preferred stock - -
Common stock 11.5 11.5
Capital in excess of par value 341.7 320.0
Retained earnings 2,413.7 1,566.7
Cumulative translation adjustment (142.5) (129.8)
Common stock in treasury, at cost (434.5) (466.7)
Unearned portion of restricted stock (3.0) (3.4)
Value of common stock held in Grantor Trust (401.6) (381.2)
Unrealized holding loss on available-for-sale securities (30.6) -
--------- ---------
Total Shareholders Equity 1,754.7 917.1
Total $6,071.3 $4,741.8
========= =========
</TABLE>
See Accompanying Notes to Condensed Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF CASH FLOWS
(CONDENSED)
(DOLLARS IN MILLIONS)
QUARTER ENDED DECEMBER 31,
--------------------------
1997 1996
<S> <C> <C>
Cash Flow from Operations
Net earnings $ 857.8 $137.4
Gain on sale of discontinued operations (705.1) -
Net earnings from discontinued operations (15.7) (23.1)
Non-cash items included in income 62.7 50.9
Changes in assets and liabilities used in operations (60.3) (3.2)
Other, net (6.7) (8.6)
-------- -------
Cash flow from continuing operations 132.7 153.4
Cash flow from discontinued operations 11.2 54.8
-------- -------
Net cash flow from operations 143.9 208.2
-------- -------
Cash Flow from Investing Activities
Acquisition of businesses (182.5) -
Property additions, net (55.0) (59.7)
Other, net (55.7) 4.9
-------- -------
Cash used by investing activities - continuing operations (293.2) (54.8)
Cash used by investing activities - discontinued operations (38.4) (17.7)
-------- -------
Net cash used by investing activities (331.6) (72.5)
-------- -------
Cash Flow from Financing Activities
Net cash proceeds from (payment of) debt 235.9 (51.5)
Dividends paid (40.9) (41.5)
Other, net (2.9) (0.4)
-------- -------
Net cash provided (used) by financing activities 192.1 (93.4)
-------- -------
Effect of Exchange Rate Changes on Cash 0.2 1.4
-------- -------
Net Increase in Cash and Cash Equivalents 4.6 43.7
Cash and Cash Equivalents, Beginning of Period 109.1 62.3
-------- -------
Cash and Cash Equivalents, End of Period $ 113.7 $106.0
======== =======
</TABLE>
See Accompanying Notes to Condensed Financial Statements.
<PAGE>
RALSTON PURINA COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED FINANCIAL STATEMENTS
DECEMBER 31, 1997
(DOLLARS IN MILLIONS)
<PAGE>
Note 1 - The accompanying unaudited financial statements have been prepared in
accordance with the instructions for Form 10-Q and do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments considered necessary for a fair presentation have been included.
Operating results for any quarter are not necessarily indicative of the
results for any other quarter or for the full year. These statements should
be read in conjunction with the financial statements and notes thereto
included in the Ralston Purina Company (the Company) Annual Report to
Shareholders for the year ended September 30, 1997.
Note 2 - On December 3, 1997, the Company completed the sale of the Soy
Protein Products business to E.I. Du Pont de Nemours and Company (DuPont) for
$1,554.2, comprised of 22.5 million shares of DuPont common stock (which stock
was valued at $1,399.2 at the date of purchase) and the assumption of certain
liabilities. The Company recorded a pre-tax gain on the sale of the Soy
Protein Products business of $1.1 billion and an after-tax gain of $705.1, or
$6.89 and $6.42 per basic and diluted share, respectively.
Note 3 - Discontinued operations consist of the Company's Soy Protein Products
business through the sale date (See Note 2), and the Company's Agricultural
Products business, which will be spun off during 1998. Amounts in the
financial statements and notes for all periods shown have been restated to
reflect discontinued operations accounting.
Note 4 - In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, Earnings per Share.
Statement 128 replaces the previously reported primary and fully diluted
earnings per share with basic and diluted earnings per share. Basic earnings
per share is based on the average number of shares outstanding during the
period. This calculation is the same as the primary earnings per share
calculation previously reported by the Company.
Diluted earnings per share is very similar to the previously reported fully
diluted earnings per share, and is based on the average number of shares used
for the basic earnings per share calculation, adjusted for the dilutive effect
of convertible preferred stock, stock options, convertible debentures and
compensation awards.
The following table sets forth the computation of basic and diluted earnings
per share in accordance with the provisions of Statement 128. Previously
reported diluted earnings per share amounts have been restated, as necessary,
to conform to Statement 128 requirements.
<PAGE>
<TABLE>
<CAPTION>
Quarter Ended December 31,
1997 1996
<S> <C> <C>
Numerator:
Net earnings from continuing operations $137.0 $114.3
Preferred stock dividends (3.1) (3.4)
------- -------
Numerator for basic earnings per share -
Earnings from continuing operations
available to common shareholders $133.9 $110.9
Effect of dilutive securities:
ESOP stock 2.8 2.6
Numerator for diluted earnings per share -
Earnings from continuing operations
available to common shareholders $136.7 $113.5
------- -------
Net earnings from discontinued operations $ 15.7 $ 23.1
------- -------
Gain on sale of discontinued
operations $705.1 $ -
------- -------
Denominator:
Denominator for basic earnings per share -
weighted-average shares * 102.4 101.9
Effect of dilutive securities:
ESOP stock 6.2 6.6
Stock options ** 1.3 1.8
Deferred Compensation - 0.4
------- -------
Dilutive potential common shares 7.5 8.8
Denominator for diluted earnings per
share - adjusted weighted-average
shares and assumed conversions 109.9 110.7
======= =======
Basic earnings per share:
Earnings from continuing operations $ 1.31 $ 1.09
Net earnings from discontinued operations 0.15 0.23
Gain on sale of discontinued operations 6.89 -
------- -------
Net earnings $ 8.35 $ 1.32
======= =======
Diluted earnings per share:
Earnings from continuing operations $ 1.24 $ 1.02
Net earnings from discontinued operations 0.14 0.21
Gain on sale of discontinued operations 6.42 -
------- -------
Net earnings $ 7.80 $ 1.23
======= =======
</TABLE>
* Weighted average shares used for the computation of basic earnings per
share excludes 4,321,000 and 4,245,000 shares of common stock held by the
Company's Grantor Trust at December 31, 1997 and 1996, respectively.
** Options to purchase 99,887 shares of common stock at prices ranging from
$98.76 to $132.63 per share, and 116,019 shares of common stock at prices
ranging from $76.13 to $132.63 per share outstanding during the quarters ended
December 31, 1997 and 1996, respectively, were not included in weighted
average shares used for the computation of diluted earnings per share because
the options' exercise prices were greater than the market prices of the common
shares.
<PAGE>
Note 5 - At December 31, 1997, there were 102,865,000 shares of common stock
outstanding, exclusive of 7,508,000 shares held in treasury and 4,321,000
Grantor Trust shares. At September 30, 1997, there were 102,271,000 shares
of common stock outstanding, exclusive of 8,116,000 shares held in treasury
and 4,307,000 Grantor Trust shares.
Note 6 - Other (income)/expense, net, for the quarter consists of the
following:
<TABLE>
<CAPTION>
December 31,
1997 1996
---------------
<S> <C> <C>
Net translation and exchange loss $ 3.8 $ 1.9
Investment income (1.2) (0.8)
Return on other investments (2.9) (2.8)
Miscellaneous (income)/expense 0.1 (1.8)
------- -----
$ ( 0.2) $(3.5)
======= ======
</TABLE>
Note 7 - Investments and Other Assets consist of the following:
<TABLE>
<CAPTION>
Dec. 31, Sept. 30,
1997 1997
------------------
<S> <C> <C>
Goodwill $ 575.9 $ 446.5
Other intangible assets 241.5 236.4
Investments in affiliated companies 313.4 299.9
Available-for-sale securities 1,351.4 -
Deferred charges and other assets 494.7 547.5
$ 2,976.9 $1,530.3
======= ========
</TABLE>
Note 8 - Available-for-sale securities consist of shares of DuPont common
stock obtained in connection with the sale of the Company's Soy Protein
Products business (See Note 2). These securities are carried at fair value,
based on quoted market prices. The cost basis of these securities is $1,399.2,
and fair value and gross unrealized holding losses as of December 31, 1997 are
$1,351.4 and $47.8, respectively. The difference between the cost and fair
value of these securities, net of tax of $17.2, is shown as a separate
component of shareholders equity.
Note 9 - In December 1997, the Company acquired Edward Baker Petfoods, a
United Kingdom manufacturer of extruded complete pet foods and a supplier of
branded and private label products to the European market, for $182.5. The
acquisition has been accounted for using the purchase method of accounting.
The acquisition of Edward Baker is not expected to have a significant effect
on the net sales, net earnings or earnings per share of the Company for the
year ended September 30, 1998.
<PAGE>
Note 10 - During the current quarter, the Company adopted SOP 96-1,
Environmental Remediation Liabilities, which was issued in October 1996 and
provides guidance for the accrual of environmental remediation costs. The
adoption of SOP 96-1 did not have a material effect on the financial
statements of the Company. As a matter of policy, costs of future
expenditures for environmental remediation obligations are not discounted to
their present value.
PART II - OTHER INFORMATION
------------------
There is no information required to be reported under any items except those
indicated below.
Item 4. Submission of Matter to a Vote of Security Holders
----------------------------------------------------------
The Company held its Annual Meeting of Shareholders on January 29, 1998, for
the purpose of electing one director to serve a two-year term ending in
January 2000, and four directors to serve three-year terms ending in January
2001, and to ratify the Board of Directors' appointment of Price Waterhouse as
independent accountants for the Company for the fiscal year ending September
30, 1998.
The number of votes cast, and the number of shares voting for or against each
candidate and the number of votes cast for the ratification, as well as the
number of abstentions with respect thereto, is as follows:
<TABLE>
<CAPTION>
VOTES VOTES
FOR WITHHELD
<S> <C> <C>
David R. Banks 94,168,380 1,497,496
M. Darrell Ingram 94,327,872 1,313,004
John F. McDonnell 94,544,549 1,096,327
W. Patrick McGinnis 94,731,160 908,528
J. Patrick Mulcahy 94,746,289 895,236
</TABLE>
<TABLE>
<CAPTION>
VOTES VOTES VOTES
FOR AGAINST ABSTAINED
<S> <C> <C> <C>
Ratification 95,104,504 263,630 298,290
of Price
Waterhouse
</TABLE>
Item 6. Exhibits and Reports on Form 8-K
-------------------------------------
(a) Exhibits filed with this Report:
(27) Financial Data Schedule
(b) Reports on Form 8-K
A Current Report on Form 8-K dated December 3, 1997 was filed to disclose the
sale of the Company's Soy Protein Products business to E.I. Du Pont de Nemours
and Company, and to provide Pro Forma Consolidated Financial Information for
the Company at, and for the year ended, September 30, 1997.
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.
RALSTON PURINA COMPANY
----------------------
Registrant
By:____________________________
James R. Elsesser
Vice President and Chief
Financial Officer
Date: February 13, 1998
<PAGE>
EXHIBIT INDEX
- -------------
Exhibits
- --------
EX-27 Financial data schedule for 1st Quarter 1998
EX-27 Restated Financial Data Schedule for 1997
Annual Period
(provided electronically)
Exhibit 27
(Document prepared on Edgar)
i:\sec\10q\1qtr-98.doc
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 9/30/97
RALSTON PURINA CO. BALANCE SHEET AND STATEMENT OF EARNINGS AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> SEP-30-1997
<CASH> 109,100
<SECURITIES> 0
<RECEIVABLES> 700,000
<ALLOWANCES> 24,800
<INVENTORY> 604,800
<CURRENT-ASSETS> 1,505,500
<PP&E> 2,160,600
<DEPRECIATION> 1,046,900
<TOTAL-ASSETS> 4,741,800
<CURRENT-LIABILITIES> 1,215,800
<BONDS> 1,860,400
304,900
0
<COMMON> 11,500
<OTHER-SE> 905,600
<TOTAL-LIABILITY-AND-EQUITY> 4,741,800
<SALES> 4,486,800
<TOTAL-REVENUES> 4,486,800
<CGS> 2,281,900
<TOTAL-COSTS> 2,281,900
<OTHER-EXPENSES> 1,642,600
<LOSS-PROVISION> 3,100
<INTEREST-EXPENSE> 174,300
<INCOME-PRETAX> 384,900
<INCOME-TAX> 70,000
<INCOME-CONTINUING> 348,900
<DISCONTINUED> 74,800
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 423,700
<EPS-PRIMARY> 4.02
<EPS-DILUTED> 3.82<F1>
<FN>
<F1>EPS-DILUTED HAS BEEN RESTATED DUE TO SFAS 128 IMPLEMENTATION.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 12/31/97
RALSTON PURINA COMPANY BALANCE SHEET AND STATEMENT OF EARNINGS AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> DEC-31-1997
<CASH> 113,700
<SECURITIES> 0
<RECEIVABLES> 922,700
<ALLOWANCES> 25,000
<INVENTORY> 558,500
<CURRENT-ASSETS> 1,690,800
<PP&E> 2,224,800
<DEPRECIATION> 1,064,100
<TOTAL-ASSETS> 6,071,300
<CURRENT-LIABILITIES> 1,372,500
<BONDS> 1,825,700
277,200
0
<COMMON> 11,500
<OTHER-SE> 1,743,200
<TOTAL-LIABILITY-AND-EQUITY> 6,071,300
<SALES> 1,317,100
<TOTAL-REVENUES> 1,317,100
<CGS> 648,200
<TOTAL-COSTS> 648,200
<OTHER-EXPENSES> 423,500
<LOSS-PROVISION> 0<F1>
<INTEREST-EXPENSE> 46,300
<INCOME-PRETAX> 199,100
<INCOME-TAX> 72,100
<INCOME-CONTINUING> 137,000
<DISCONTINUED> 15,700
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 857,800
<EPS-PRIMARY> 8.35
<EPS-DILUTED> 7.80
<FN>
<F1>LOSS-PROVISION INCLUDED IN OTHER-EXPENSE ABOVE.
</FN>
</TABLE>
