UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
FORM 10-Q
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
-----------------------------------------------
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 1-9887
------------------
OREGON STEEL MILLS, INC.
(Exact name of registrant as specified in its charter)
Delaware 94-0506370
- ------------------------------------------------------------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1000 Broadway Building, Suite 2200, Portland, Oregon 97205
- ------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(503)223-9228
- ------------------------------------------------------------------------------
(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
----- -----
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, $.01 Par Value 25,693,471
---------------------------- ----------------------------
Class Number of Shares Outstanding
(as of April 30, 1997)
<PAGE>
OREGON STEEL MILLS, INC.
INDEX
Page
----
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets
March 31, 1997 (unaudited)
and December 31, 1996.................................2
Consolidated Statements of Income (unaudited)
Three months ended March 31, 1997
and 1996 .............................................3
Consolidated Statements of Cash Flows (unaudited)
Three months ended March 31, 1997
and 1996 .............................................4
Notes to Consolidated Financial
Statements (unaudited)............................5 - 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations..............7 - 10
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a
Vote of the Security Holders............................11
Item 6. Exhibits and Reports on Form 8-K........................11
SIGNATURES..................................................................11
-1-
<PAGE>
<TABLE>
OREGON STEEL MILLS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
<CAPTION>
March 31,
1997 December 31,
(Unaudited) 1996
----------- ------------
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 7,837 $ 739
Trade accounts receivable, net 92,183 91,480
Inventories 117,718 120,636
Deferred tax asset 17,084 17,084
Other 6,148 5,786
-------- --------
Total current assets 240,970 235,725
-------- --------
Property, plant and equipment:
Land and improvements 29,785 29,577
Buildings 37,603 37,617
Machinery and equipment 430,217 426,912
Construction in progress 274,861 255,558
-------- --------
772,466 749,664
Accumulated depreciation (151,883) (145,096)
-------- --------
620,583 604,568
-------- --------
Excess of cost over net assets acquired, net 37,390 37,398
Other assets 34,207 35,664
-------- --------
$933,150 $913,355
======== ========
LIABILITIES
Current liabilities:
Current portion of long-term debt $ 6,964 $ 6,574
Accounts payable 72,981 75,428
Accrued expenses 40,819 32,727
-------- --------
Total current liabilities 120,764 114,729
Long-term debt 340,649 330,993
Deferred employee benefits 18,694 18,262
Environmental liability 34,801 35,103
Deferred income taxes 25,204 24,365
-------- --------
540,112 523,452
-------- --------
Minority interests 36,855 36,862
-------- --------
Commitments and contingencies (Notes 4 and 5)
STOCKHOLDERS' EQUITY
Common stock 257 257
Additional paid-in capital 226,101 226,085
Retained earnings 133,942 130,417
Cumulative foreign currency translation adjustment (4,117) (3,718)
-------- --------
356,183 353,041
-------- --------
$933,150 $913,355
======== ========
The accompanying notes are an integral part of the consolidated
financial statements.
</TABLE>
-2-
<PAGE>
OREGON STEEL MILLS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except tonnage and per share amounts)
(Unaudited)
Three Months Ended March 31,
----------------------------
1997 1996
---------- ----------
Sales $ 206,664 $ 205,489
Costs and expenses:
Cost of sales 177,192 176,905
Selling, general and
administrative expenses 12,495 11,414
Profit participation 1,208 1,869
--------- ---------
Operating income 15,769 15,301
Other income (expense):
Interest and dividend income 79 111
Interest expense (2,802) (3,872)
Minority interests (1,772) (788)
Other, net 2 (87)
--------- ---------
Income before income taxes 11,276 10,665
Income tax expense (4,154) (4,147)
--------- ---------
Net income $ 7,122 $ 6,518
========= =========
Primary and fully diluted net income
per common and common
equivalent share $ .27 $ .33
Dividends declared per common share $ .14 $ .14
Weighted average common shares
and common share equivalents
outstanding 26,292 20,020
Tonnage sold 399,400 407,900
The accompanying notes are an integral part of
the consolidated financial statements.
-3-
<PAGE>
<TABLE>
OREGON STEEL MILLS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
<CAPTION>
Three Months Ended March 31,
-----------------------------
1997 1996
--------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 7,122 $ 6,518
Adjustments to reconcile net income to net
cash provided (used) by operating activities:
Depreciation and amortization 7,282 7,131
Deferred income tax provision 839 3,818
Minority interests' share of income 1,747 823
Other, net 1,030 170
Changes in current assets and liabilities (1,701) 10,928
--------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES 16,319 29,388
--------- ---------
Cash flows from investing activities:
Additions to property, plant and equipment (14,685) (36,878)
Other, net 892 (831)
--------- ---------
NET CASH USED BY INVESTING ACTIVITIES (13,793) (37,709)
--------- ---------
Cash flows from financing activities:
Net payments under Canadian bank
revolving loan facility (5,156) (3,913)
Proceeds from long-term bank debt 105,077 54,000
Payments on long-term debt (87,077) (36,400)
Other reductions of debt (2,798) (1,281)
Dividends paid (3,597) (2,719)
Minority portion of subsidiary's distribution (1,754) -
Other, net (31) (280)
--------- ---------
NET CASH PROVIDED BY FINANCING ACTIVITIES 4,664 9,407
--------- ---------
Effects of foreign currency exchange rate changes on cash (92) 8
--------- ---------
Net increase in cash and cash equivalents 7,098 1,094
Cash and cash equivalents at beginning of period 739 644
--------- ---------
Cash and cash equivalents at end of period $ 7,837 $ 1,738
========= =========
Supplemental disclosures of cash flow information:
Cash paid (received) for:
Interest $ 3,507 $ 6,889
Income taxes $ 133 $ (8)
NON-CASH OPERATING, INVESTING AND FINANCING ACTIVITIES:
At March 31, 1997 and 1996, the Company had financed property, plant and
equipment with accounts payable of $17.7 million and $24.2 million,
respectively.
The accompanying notes are an integral part of the consolidated
financial statements.
</TABLE>
-4-
<PAGE>
OREGON STEEL MILLS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
---------------------
The consolidated financial statements include the accounts of Oregon Steel
Mills, Inc. and its subsidiaries ("Company"). All significant intercompany
balances and transactions have been eliminated.
The unaudited financial statements include all adjustments (consisting of
normal recurring accruals) which, in the opinion of management, are
necessary for a fair presentation of the interim periods. Results for an
interim period are not necessarily indicative of results for a full year.
Reference should be made to the Company's 1996 Annual Report on Form 10-K
for additional disclosures including a summary of significant accounting
policies.
2. Inventories
-----------
Inventories consist of:
March 31, December 31,
1997 1996
----------- ------------
(In thousands)
Raw materials $ 25,964 $ 24,916
Semifinished product 36,281 45,767
Finished product 27,083 25,046
Stores and operating supplies 28,390 24,907
-------- --------
Total Inventory $117,718 $120,636
======== ========
3. Common Stock
------------
On April 29, 1997, the Board of Directors declared a quarterly cash
dividend of 14 cents per share to be paid May 30, 1997, to stockholders of
record as of May 16, 1997.
4. Contingencies
-------------
ENVIRONMENTAL. The Company's 87 percent owned New CF&I, Inc. subsidiary
owns a 95.2 percent interest in CF&I Steel, L.P. ("CF&I") which owns the
Pueblo, Colorado steel mill. In connection with CF&I's acquisition of
certain assets from CF&I Steel Corporation in 1993, CF&I established a
reserve of $36.7 million for environmental remediation. The Colorado
Department of Public Health and Environment issued a 10-year, post-closure
permit with two ten-year renewals to CF&I which became effective on October
30, 1995. The permit contains a schedule for corrective actions to be
completed which is substantially reflective of a straight-line rate of
expenditure over 30 years. At March 31, 1997, CF&I had a reserve of $35.1
million related to this remediation, of which $32.9 million is classified
as non-current in the consolidated balance sheet.
CONSTRUCTION CLAIMS. There are a number of claims arising out of the
Company's contract with the former prime contractor on the Steckel
combination rolling mill ("Combination Mill") which is being constructed
at the Company's steel mill in Portland, Oregon. The Company's position is
that the prime contractor was failing to perform, so it terminated the
contract and made arrangements with other contractors to complete the
project. The prime contractor filed an arbitration claim against the
Company and the Company has counterclaimed. While it is difficult to
determine at this stage the amount claimed by the prime contractor, the
prime contractor has filed a lien in the approximate amount of $16.5
million against the Company. The prime contractor has claimed certain other
unspecified damages. However, the Company believes that the lien amount
includes amounts that were subsequently paid by the Company to certain
subcontractors and suppliers of the prime contractor in the amount of
approximately $7.7 million. As a result, management believes that the net
amount claimed by the prime contractor in the arbitration would be
approximately $8.8 million plus unspecified damages.
-5-
<PAGE>
The Company has filed a counterclaim against the prime contractor in the
arbitration. The amount of this counterclaim cannot be finalized until the
Combination Mill project is complete. However, it is expected that the
amount of the counterclaim will exceed the amount of the prime contractor's
claim. On the same project, five other liens have been filed by
subcontractors and/or suppliers of the prime contractor. These liens total
approximately $6 million. The Company believes these claims are included in
the amount of the lien filed by the prime contractor.
The Company denies liability on all of the claims of the prime contractor
and its subcontractors and suppliers and, as stated above, believes it is
entitled to recover from the prime contractor all damages incurred. To the
extent that the Company owes any amounts to the prime contractor or any of
its subcontractors or suppliers, the Company may have claims for
reimbursement against certain of its other engineers, vendors or
consultants on the project.
Management believes that the ultimate resolution of these claims will not
have a material effect on the financial position of the Company.
5. Commitments
-----------
At March 31, 1997, the Company had commitments for expenditures of
approximately $32.7 million for completion of the Combination Mill.
6. Proceeds from Insurance Settlement
----------------------------------
Sales for the first quarter of 1997 include approximately $2.5 million of
insurance proceeds as reimbursement of lost profits resulting from lost
production during the third and fourth quarters of 1996 related to the
failure of one of the power transformers servicing CF&I. In total, the
Company received $7 million in insurance proceeds from this claim of which
$4.5 million was recorded in the fourth quarter of 1996.
-6-
<PAGE>
OREGON STEEL MILLS, INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
General
- -------
The following information contains 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 risks and
uncertainties and actual results could differ materially from those projected.
Such risks and uncertainties include, but are not limited to, competitive
products and pricing, as well as fluctuations in demand; potential equipment
malfunction, plant construction and start-up difficulties, repair delays and
general business and economic conditions.
The consolidated financial statements include the accounts of Oregon Steel
Mills, Inc. and its subsidiaries ("Company"), wholly-owned Camrose Pipe
Corporation ("CPC") which owns a 60 percent interest in Camrose Pipe Company
("Camrose"), 87 percent owned New CF&I, Inc. ("New CF&I") which owns a 95.2
percent interest in CF&I Steel, L.P. ("CF&I"), and certain other insignificant
subsidiaries.
The Company is organized into two business units known as the Oregon Steel
Division and the CF&I Steel Division. The Oregon Steel Division is centered on
the Company's steel plate minimill in Portland, Oregon. It includes the
Company's large diameter pipe finishing facility in Napa, California and the
large diameter and electric resistance welded pipe facility in Camrose, Alberta.
The CF&I Steel Division consists of the steelmaking and finishing facilities
located in Pueblo, Colorado, as well as certain related operations.
Results of Operations
- ---------------------
The following table sets forth, by division, tonnage sold, sales and average
selling price per ton:
Three Months Ended March 31,
----------------------------
1997 1996
------- -------
Total tonnage sold:
Oregon Steel Division:
Plate 68,700 81,800
Welded pipe 82,700 70,400
------- -------
Total Oregon Steel Division 151,400 152,200
------- -------
CF&I Steel Division:
Rail 94,800 95,100
Rod/Bar/Wire 112,500 112,800
Seamless Pipe 33,200 40,700
Semifinished 7,500 7,100
------- -------
Total CF&I Steel Division 248,000 255,700
------- -------
Total 399,400 407,900
======= =======
Sales (in thousands):
Oregon Steel Division $ 95,444 $ 92,846
CF&I Steel Division 111,220 (1) 112,643
-------- --------
Total $206,664 $205,489
======== ========
Average selling price per ton:
Oregon Steel Division $630 $610
CF&I Steel Division $438 (2) $441
Average $511 (2) $504
(1) Includes insurance proceeds of approximately $2.5 million as
reimbursement of lost profits resulting from lost production during
the third and fourth quarters of 1996 related to the failure of one
of the power transformers servicing CF&I.
(2) Excludes insurance proceeds referred to in Note (1) above.
-7-
<PAGE>
OREGON STEEL MILLS, INC.
Sales increased 0.6 percent to $206.7 million in the first quarter of 1997
compared to the corresponding 1996 period. Shipments decreased 2.1 percent to
399,400 tons in the first quarter of 1997 compared to the corresponding 1996
period. The decrease in shipments was primarily due to decreased plate product
shipments at the Oregon Steel Division and decreased seamless pipe product
shipments by the CF&I Steel Division, partially offset by increased welded pipe
product shipments at the Oregon Steel Division.
Selling prices increased $7 to $511 per ton for the first quarter of 1997
compared to the corresponding 1996 period. The higher average selling price was
primarily due to increased average prices at the Oregon Steel Division. Of the
$1.2 million sales increase in the first quarter of 1997 compared to 1996, $3.0
million was the result of higher average selling prices and $2.5 million was
from insurance proceeds, offset by $4.3 million resulting from volume decreases.
The Oregon Steel Division shipped 151,400 tons of product at average
selling prices of $630 per ton for the first quarter of 1997 compared to
152,200 tons of product at average selling prices of $610 per ton, during the
corresponding 1996 period. The decline in shipments was due to decreased
shipments of plate products during 1997 resulting from lower production volumes
associated with planned maintenance downtimes. The Oregon Steel Division shipped
68,700 tons of plate products during the first quarter of 1997 compared to
81,800 tons during the corresponding 1996 period. The increase in average
selling price was due to higher average selling prices for plate and welded pipe
products and increased sales of the generally higher priced welded pipe products
in the product mix. During the first quarter of 1997, the division shipped
82,700 tons of welded pipe compared to 70,400 tons in the comparable 1996
quarter. The increased shipments of welded pipe were due to strong demand in
Canada for electric resistance welded pipe produced at the Camrose pipe mill.
The CF&I Steel Division shipped 248,000 tons of product at an average
selling price of $438 per ton during the first quarter of 1997 compared to
255,700 tons of product at an average selling price of $441 per ton during the
corresponding 1996 period. The decline in shipments was primarily due to
decreased shipments of seamless pipe products in the first quarter of 1997
compared to the corresponding 1996 period due to lower production volumes
associated with planned maintenance downtimes in the seamless pipe mill.
Seamless pipe shipments were 33,200 tons during the first quarter of 1997,
compared to 40,700 tons in the corresponding 1996 period. The decrease in
average selling price was due to lower average selling prices for rail, bar and
wire products, partially offset by increased selling prices of seamless pipe
products.
Gross profit percentage for the first quarter of 1997 was 13.1 percent
(excluding insurance proceeds) compared to 13.9 percent for the corresponding
1996 period. The gross profit decline in 1997 compared to 1996 was due to higher
manufacturing costs for plate and welded pipe products at the Oregon Steel
Division, resulting from lower production volumes associated with planned
maintenance downtimes and higher rail and seamless pipe manufacturing costs at
the CF&I Steel Division, primarily due to the fourth quarter 1996 power
transformer outage which increased semifinished inventory costs that flowed
through to cost of sales in the first quarter of 1997 and planned maintenance
downtimes at the seamless pipe mill. These declines in gross profit were
partially offset by increased shipments of welded pipe products at the Oregon
Steel Division on which the Company realized generally higher margins per ton.
Selling, general and administrative ("SG&A") expenses for the first
quarter of 1997 increased $1.1 million from the corresponding 1996 period and
increased as a percentage of sales to 6.0 percent in the first quarter of 1997,
from 5.6 percent for the corresponding 1996 period. The increase is due to
increased legal costs, increased shipping costs at the Oregon Steel Division,
and increases in various other general and administrative expenses in the first
quarter of 1997.
-8-
<PAGE>
OREGON STEEL MILLS, INC.
Profit participation expense was $1.2 million for the first quarter of
1997 compared to $1.9 million in the corresponding 1996 period reflecting the
decreased profitability of the CF&I Steel Division in 1997 versus 1996.
Total interest cost for the first quarter of 1997 was $9.4 million
compared to $7.5 million for the corresponding 1996 period. The higher interest
cost is primarily the result of additional debt incurred to fund the capital
improvement program, combined with increased interest rates. Capitalized
interest for the first quarter of 1997 was $6.6 million compared to $3.6 million
for the corresponding 1996 period.
The Company's effective income tax rates were 37 and 39 percent for
the three month period ended March 31, 1997 and 1996, respectively.
Liquidity and Capital Resources
- -------------------------------
Cash flow from operations for the three months ended March 31, 1997 was
$16.3 million compared to $29.4 million in the corresponding 1996 period. The
major items affecting this $13.1 million decrease were a lower decrease in
inventories ($23.3 million), a larger decrease in accounts payable ($11.2
million), a lower increase in deferred income taxes ($3.0 million), and an
increase in other current assets ($1.6 million). These cash uses were partially
offset by a lower increase in accounts receivable ($16.8 million) and an
increase in accrued expenses ($6.7 million).
Net working capital at March 31, 1997 decreased $790,000 compared to
December 31, 1996 reflecting a $6.0 million increase in current liabilities and
a $5.2 million increase in current assets. The decrease was primarily due to
increased accrued interest expense related to the Company's long-term debt.
The Company has outstanding $235 million principal amount 11% First
Mortgage Notes ("Notes") due 2003. The Notes are guaranteed by New CF&I and CF&I
("Guarantors"). The Notes and the guarantees are secured by a lien on
substantially all the property, plant and equipment and certain other assets of
the Company and the Guarantors. The collateral for the Notes and the guarantees
do not include, among other things, inventory and accounts receivable. The
indenture under which the Notes were issued contains potential restrictions on
new indebtedness and various types of disbursements, including dividends, based
on the Company's net income in relation to its fixed charges, as defined.
The Company maintains a $125 million revolving credit facility ("Amended
Credit Agreement") which expires June 11, 1999, and may be drawn upon based on
the Company's accounts receivable and inventory balances. The Amended Credit
Agreement is collateralized by substantially all of the Company's consolidated
inventory and accounts receivable, except those of Camrose. Amounts outstanding
under the Amended Credit Agreement are guaranteed by the Guarantors. The Amended
Credit Agreement contains various restrictive covenants including a minimum
tangible net worth, minimum interest coverage ratio, and a maximum debt to total
capitalization ratio. As of March 31, 1997, $63.5 million was outstanding under
the Amended Credit Agreement.
Term debt of $67.5 million was incurred by CF&I as part of the purchase
price of the Pueblo steel mill on March 3, 1993. This debt is uncollateralized
and is payable over ten years with interest at 9.5 percent. As of March 31,
1997, the outstanding balance on the debt was $48.5 million, of which $41.5
million was classified as long-term.
The Company has an uncollateralized and uncommitted revolving line of
credit with a bank which may be used to support issuance of letters of credit,
foreign exchange contracts and interest rate hedges. At March 31, 1997, $5.1
million was restricted under outstanding letters of credit.
-9-
<PAGE>
OREGON STEEL MILLS, INC.
Camrose maintains a $15 million (Canadian dollars) revolving credit
facility with a bank, the proceeds of which may be used for working capital and
general corporate purposes. The facility is collateralized by substantially all
of the assets of Camrose and borrowings under this facility are limited to an
amount equal to specified percentages of Camrose's eligible trade accounts
receivable and inventories. The facility expires on December 30, 1999. As of
March 31, 1997, Camrose had $622,000 outstanding under the facility.
The Company expects that anticipated needs for working capital and the
capital expenditure program through 1997 will be met from existing cash
balances, funds generated from operations and available borrowings under its
Amended Credit Facility.
CAPITAL EXPENDITURES. During the first three months of 1997 the Company
expended approximately $2.3 million (exclusive of capitalized interest) on
capital projects at the CF&I Steel Division and $5.8 million (exclusive of
capitalized interest) on the Combination Mill project and recurring upgrade
projects to the present facilities and equipment at the Oregon Steel Division.
-10-
<PAGE>
OREGON STEEL MILLS, INC.
PART II OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
The Annual Meeting of Stockholders of the Company was held on
April 29, 1997.
At the meeting, the following nominees were approved by the
stockholders as Class C directors. The corresponding number of votes
set opposite their respective names were:
Name of Nominee Yes Votes Withheld Authority to Vote
--------------- --------- --------------------------
Thomas B. Boklund 22,338,237 258,004
Richard G. Landis 22,231,590 364,651
James A. Maggetti 22,237,540 358,701
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits
11.0 Statement Regarding Computation of Per Share Earnings
27.0 Financial Data Schedule
(b) Reports on Form 8-K
None
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.
OREGON STEEL MILLS, INC.
Date: May 12, 1997 /s/ Christopher D. Cassard
---------------------------------
Christopher D. Cassard
Corporate Controller
(Principal Accounting Officer)
-11-
OREGON STEEL MILLS, INC.
EXHIBIT 11
STATEMENT REGARDING COMPUTATION
OF PER SHARE EARNINGS
(In thousands, except per share data amounts)
Three Months Ended
March 31,
--------------------
1997 1996
------ ------
Weighted average number of common
shares outstanding 25,694 19,422
Common stock equivalents arising
from 598 shares of stock to be
issued March 2003 598 598
------- --------
26,292 20,020
======= ========
Net income $ 7,122 $ 6,518
======= ========
Net income per common and
common equivalent share $.27 $.33
==== ====
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 7837
<SECURITIES> 0
<RECEIVABLES> 95222
<ALLOWANCES> 3039
<INVENTORY> 117718
<CURRENT-ASSETS> 240970
<PP&E> 772466
<DEPRECIATION> 151883
<TOTAL-ASSETS> 933150
<CURRENT-LIABILITIES> 120764
<BONDS> 235000
0
0
<COMMON> 257
<OTHER-SE> 355926
<TOTAL-LIABILITY-AND-EQUITY> 933150
<SALES> 206664
<TOTAL-REVENUES> 206664
<CGS> 177192
<TOTAL-COSTS> 177192
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2802
<INCOME-PRETAX> 11276
<INCOME-TAX> 4154
<INCOME-CONTINUING> 7122
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7122
<EPS-PRIMARY> .27
<EPS-DILUTED> .27
</TABLE>
