Total pages included - 14
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended July 5, 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 1-4347
ROGERS CORPORATION
(Exact name of Registrant as specified in its charter)
Massachusetts 06-0513860
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P.O. Box 188, One Technology Drive, Rogers, Connecticut 06263-0188
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (860) 774-9605
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
The number of shares outstanding of the Registrant's classes of common
stock as of August 2, 1998:
Capital Stock, $1 Par Value-7,614,545 shares
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<PAGE>
ROGERS CORPORATION AND SUBSIDIARIES
FORM 10-Q
July 5, 1998
INDEX
Page No.
PART I--FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited):
Consolidated Statements of Income--
Three Months and Six Months Ended
July 5, 1998 and June 29, 1997 3
Consolidated Balance Sheets--
July 5, 1998 and December 28, 1997 4-5
Consolidated Statements of Cash Flows--
Six Months Ended July 5, 1998 and
June 29, 1997 6
Supplementary Notes 7-8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9-13
PART II--OTHER INFORMATION
Item 6. Reports on Form 8-K 14
SIGNATURES 14
-2-
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
ROGERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except for Per Share Amounts)
Three Months Ended: Six Months Ended:
-----------------------------------------------
July 5, June 29, July 5, June 29,
1998 1997 1998 1997
-----------------------------------------------
Net Sales $ 53,389 $ 45,788 $ 111,702 $ 90,128
Cost of Sales 40,242 32,183 82,475 63,449
Selling and Administrative
Expenses 7,534 6,179 14,806 11,789
Research and Development
Expenses 2,521 2,516 5,132 4,967
-----------------------------------------------
Total Costs and Expenses 50,297 40,878 102,413 80,205
-----------------------------------------------
Operating Income 3,092 4,910 9,289 9,923
Other Income less Other
Charges 468 520 320 934
Interest Income, Net 131 194 362 301
-----------------------------------------------
Income Before Income Taxes 3,691 5,624 9,971 11,158
Income Taxes:
Federal and Foreign 950 1,394 2,651 2,763
State 120 125 240 250
-----------------------------------------------
Net Income $ 2,621 $ 4,105 $ 7,080 $ 8,145
===============================================
Net Income Per Share
(Note G):
Basic $ 0.35 $ 0.55 $ 0.93 $ 1.09
===============================================
Diluted $ 0.33 $ 0.53 $ 0.89 $ 1.05
===============================================
Shares Used in Computing
(Note G):
Basic 7,595,000 7,462,000 7,591,000 7,441,794
===============================================
Diluted 7,947,000 7,801,000 7,953,000 7,770,490
===============================================
The accompanying notes are an integral part of the consolidated financial
statements.
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<PAGE>
ROGERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
(Dollars in Thousands)
July 5, 1998 December 28, 1997
------------ -----------------
Current Assets:
Cash and Cash Equivalents $ 10,081 $ 18,791
Marketable Securities 3,015 2,764
Accounts Receivable, Net 31,323 28,658
Inventories:
Raw Materials 11,633 10,262
In-Process and Finished 10,629 11,323
---------- ---------
Total Inventories 22,262 21,585
Current Deferred Income Taxes 1,936 1,936
Assets Held for Sale, Net of Valuation
Reserves of $492 in each period
(Note B) 5,158 5,158
Other Current Assets 508 591
---------- ---------
Total Current Assets 74,283 79,483
---------- ---------
Property, Plant and Equipment, Net of
Accumulated Depreciation of
$67,979 and $63,856 64,659 52,201
Investment in Unconsolidated Joint
Venture 5,253 5,373
Pension Asset 4,731 4,731
Goodwill and Other Intangibles, Net 14,316 14,500
Other Assets 2,093 2,152
---------- ---------
Total Assets $ 165,335 $ 158,440
========== =========
The accompanying notes are an integral part of the consolidated financial
statements.
-4-
<PAGE>
ROGERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
LIABILITIES AND SHAREHOLDERS' EQUITY
(Dollars in Thousands)
July 5, 1998 December 28, 1997
------------ -----------------
Current Liabilities:
Accounts Payable $ 15,902 $ 16,771
Current Maturities of Long-Term Debt 600 600
Accrued Employee Benefits and
Compensation 7,418 8,098
Accrued Income Taxes Payable 3,865 3,628
Taxes, Other than Federal and Foreign
Income 1,006 839
Other Accrued Liabilities 5,424 4,047
--------- ----------
Total Current Liabilities 34,215 33,983
--------- ----------
Long-Term Debt, less Current Maturities 13,660 13,660
Noncurrent Deferred Income Taxes 2,283 2,311
Noncurrent Pension Liability 3,901 3,900
Noncurrent Retiree Health Care and Life
Insurance Benefits 6,277 6,277
Other Long-Term Liabilities 4,303 3,931
Shareholders' Equity:
Capital Stock, $1 Par Value:
Authorized Shares 50,000,000; Issued
and Outstanding Shares 7,613,735
and 7,543,699 7,613 7,544
Additional Paid-In Capital 31,516 31,097
Less Treasury Stock (12,800 shares) (423) 0
Unrealized Loss on Marketable
Securities (12) (4)
Currency Translation Adjustment 342 1,160
Retained Earnings 61,660 54,581
--------- ----------
Total Shareholders' Equity 100,696 94,378
--------- ----------
Total Liabilities and
Shareholders' Equity $ 165,335 $ 158,440
========= ==========
The accompanying notes are an integral part of the consolidated financial
statements.
-5-
<PAGE>
ROGERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Six Months Ended:
--------------------------
July 5, June 29,
1998 1997
CASH FLOWS PROVIDED BY (USED IN) OPERATING --------------------------
ACTIVITIES:
Net Income $ 7,079 $ 8,145
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Depreciation and Amortization 4,536 4,187
Equity in Undistributed (Income) Loss of
Unconsolidated Joint Ventures, Net 62 (473)
Loss on Disposition of Assets 51 50
Noncurrent Pension and Postretirement
Benefits 1,034 585
Other, Net 391 124
Changes in Operating Assets and Liabilities
Excluding Effects of Disposition of
Assets:
Accounts Receivable (3,070) (3,797)
Inventories (759) (2,602)
Prepaid Expenses 79 (29)
Accounts Payable and Accrued Expenses (1,048) 3,525
--------------------------
Net Cash Provided by Operating
Activities 8,355 9,715
CASH FLOWS PROVIDED BY (USED IN) INVESTING
ACTIVITIES:
Capital Expenditures (16,907) (5,958)
Proceeds from Sales of Business -- --
Acquisition of Business -- (1,294)
Proceeds from Sale of Property, Plant &
Equipment (96) 53
Proceeds from Sale of Marketable Securities (252) 22
Purchase of Marketable Securities -- --
Investment in Unconsolidated Joint Ventures
and Affiliates 333 386
--------------------------
Net Cash Provided by (Used in)
Investing Activities (16,922) (6,791)
CASH FLOWS PROVIDED BY (USED IN) FINANCING
ACTIVITIES:
Proceeds from Short and Long-Term Borrowings 286 1,500
Repayments of Debt Principal (269) (1,500)
Acquisition of Treasury Stock (423) --
Proceeds from Sale of Capital Stock 489 589
--------------------------
Net Cash Provided by Financing
Activities 83 589
Effect of Exchange Rate Changes on Cash (226) (109)
--------------------------
Net Increase in Cash and Cash Equivalents (8,710) 3,404
Cash and Cash Equivalents at Beginning of Year 18,791 18,675
--------------------------
Cash and Cash Equivalents at End of Quarter $ 10,081 $ 22,079
==========================
The accompanying notes are an integral part of the consolidated financial
statements.
-6-
<PAGE>
ROGERS CORPORATION AND SUBSIDIARIES
SUPPLEMENTARY NOTES
A. The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions
to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they 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 (consisting of normal
recurring accruals) considered necessary for a fair presentation have
been included. For further information, refer to the audited consolidated
financial statements and footnotes thereto included in the Company's
annual report on Form 10-K for the fiscal year ended December 28, 1997.
B. Net Assets Held for Sale consist of land and a building in
Chandler, Arizona, currently being leased to the purchaser of the
Company's flexible interconnection business in 1993.
C. In September 1997 the Company cancelled its $5.0 million unsecured
revolving credit agreement with Fleet National Bank and replaced it with
an unsecured multi-currency revolving credit agreement, also with Fleet.
Under the new arrangement, the Company can borrow up to $15.0 million,
or the equivalent in Belgian Francs and/or Japanese Yen. Amounts
borrowed under this agreement are to be paid in full by September 19,
2002. The Company borrowed 390,207,039 Belgian Francs under the new
arrangement to facilitate the Rogers Induflex acquisition in Belgium in
September 1997.
D. Interest paid during the first six months of 1998 and 1997 was $593,000
and $403,000, respectively.
E. Income taxes paid were $2,170,000 and $1,792,000 in the first six months
of 1998 and 1997, respectively.
F. As of the beginning of 1998, the Company adopted Financial Accounting
Standard Board Statement No. 130 (FAS No. 130), "Reporting Comprehensive
Income". FAS No. 130 establishes new rules for the reporting and
display of comprehensive income and its components; however, the
adoption of this Statement had no impact on the Company's net income or
shareholders' equity. FAS No. 130 requires unrealized gains or losses
on the Company's available-for-sale securities and foreign currency
translation adjustments, which prior to adoption were reported
separately in shareholders' equity, to be included in other
comprehensive income. Prior year financial statements have been
reclassified to conform to the requirements of Statement 130.
During the second quarters of 1998 and 1997, total comprehensive income
amounted to $2.7 million and $3.9 million, respectively. For the first
six months of 1998 and 1997, total comprehensive income amounted to $6.3
million and $7.2 million, respectively.
-7-
<PAGE>
SUPPLEMENTARY NOTES, CONTINUED
G. In 1997, the Financial Accounting Standards Board issued Statement No.
128 (FAS No. 128), "Earnings per Share." FAS No. 128 replaced the
calculation of primary and fully diluted earnings per share with basic
and diluted earnings per share. Unlike primary earnings per share,
basic earnings per share excludes any dilutive effects of options,
warrants and convertible securities. Diluted earnings per share is very
similar to the previously reported fully diluted earnings per share.
All earnings per share amounts for all periods presented have been
restated to conform to the FAS No. 128 requirements.
The following table sets forth the computation of basic and diluted
earnings per share:
Three Months Ended: Six Months Ended:
--------------------------------------
(In Thousands, Except Per Share July 5, June 29, July 5, June 29,
Amounts) 1998 1997 1998 1997
--------------------------------------
Numerator:
Net income $ 2,621 $ 4,105 $ 7,079 $ 8,145
Denominator:
Denominator for basic
earnings per share -
weighted-average shares 7,595 7,462 7,591 7,442
Effect of stock options 352 339 362 328
---------------------------------------
Denominator for diluted
earnings per share -
adjusted weighted-average
shares and assumed
conversions 7,947 7,801 7,953 7,770
=======================================
Basic earnings per share $ 0.35 $ 0.55 $ 0.93 $ 1.09
=======================================
Diluted earnings per share $ 0.33 $ 0.53 $ 0.89 $ 1.05
=======================================
H. The Company's fiscal year begins on the Monday nearest January 1 and
ends on the Sunday nearest December 31. The fiscal year ending
January 3, 1999 is a 53 week year and the additional week is included
in the first quarter of 1998.
-8-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Net sales were $53.4 million in the second quarter and $111.7 million for
the first six months of 1998, up 17% and 24%, respectively, over the
comparable periods in 1997. Combined Sales, which include one-half of the
sales from Rogers two 50% owned joint ventures, were $61.1 million for the
quarter and $126.9 million for the half, up 13% and 20%, respectively, over
the same periods in 1997. However, second quarter 1998 sales were 7% below
the sales levels in the first quarter.
Sales of Polymer Materials in the second quarter and first half of 1998
were 4% and 10%, respectively, above the levels in the same periods of
1997. During the first half a new application for Nitrophyl floats for
fuel level sensing in propane tanks contributed to substantial sales growth
at the Elastomer Components Unit. Also sales of R/bak plate backing and
mounting products were significantly higher than the first half of 1997
reflecting strong growth in South America and Europe.
The moldable phenolic composites business had strong growth in Europe and
record sales in the first half of 1998. Last year a major capital
investment was made to expand capacity for this business.
Sales of Electronic Materials for the second quarter and first six months
increased 32% and 41%, respectively, from the comparable 1997 periods. A
majority of the second quarter and first half year-to-year volume increase
came from sales of Induflex, the European flexible laminates business
Rogers acquired at the end of September 1997, and sales of a customized
FLEX-I-MID material to Hutchinson Technology Incorporated. In addition,
the Microwave Materials Division continued to grow in sales for commercial
high frequency applications in wireless communications with both second
quarter and first half 1998 sales significantly exceeding those in the
comparable 1997 periods.
Europe remains a bright spot for sales growth with sales for the second
quarter and first six months of 1998 growing 14% and 25%, respectively over
the same periods in 1997 even when sales from the recently acquired
Induflex business are not included. Furthermore, the strength of the U.S.
Dollar dampened reported European sales. Stated in local currency, Rogers
European sales growth, excluding Induflex sales, was actually 35% for the
first six months of 1998. All of Rogers core products are now stocked in
Europe, and Rogers is adding a microwave materials production facility and
expanding its power distribution bus bar production capability in Belgium.
Profits before tax of $3.7 million for the second quarter and $10.0 million
for the first half of 1998 were down 34% and 11%, respectively, from the
same periods in 1997. Net income of $2.6 million for the second quarter
and $7.1 million for the second half were down 36% and 13%, respectively.
-9-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS, CONTINUED
Earnings per share (diluted) for the second quarter this year were $0.33,
down from $0.53 in the same period last year. For the first half of 1998,
earnings per share (diluted) were $0.89 compared to $1.05 in the initial
six-month period a year ago.
This disappointing performance in the second quarter was due to a number of
factors including softness in the domestic computer market as well as
conditions in Southeast Asia where customers are being adversely impacted,
particularly in the wireless communications and computer markets. These
conditions have contributed to somewhat slower growth in sales to the
wireless communications market and significantly lower sales of the
flexible circuit materials manufactured at the Circuit Materials Division
which are primarily used in computer hard disk drives. Sales of the
customized material to Hutchinson Technology Incorporated continue to grow,
but Rogers does not manufacture this material, and, therefore, it carries a
lower margin. The costs of transitioning to new manufacturing processes
and equipment in the two Arizona divisions further reduced profitability
for the quarter. In addition, only relatively modest profits were earned
by the two operations that were acquired last year, the Bisco silicone foam
business and the Induflex unit in Europe. Both acquisitions have excellent
future prospects, but they are still in the early stages of integration
into the Company.
Manufacturing profit as a percentage of sales in the first six months of
1998 and 1997 was 26% and 30%, respectively. The decrease from 1997 to
1998 was primarily attributable to several factors at the Circuit Materials
Division. The growing sales of customized materials to Hutchinson
Technology Incorporated are produced for Rogers by Mitsui Chemical
Incorporated in Japan and carry a lower margin than material that Rogers
manufactures. Margins on the lower sales of flexible circuit materials
manufactured at the Circuit Materials Division for use in computer hard
disk drives declined due to lower prices and inventory write-offs.
Selling and administrative expense for the first six months of 1998
increased in total dollars, but as a percentage of sales were approximately
the same as the comparable period in the previous year. The increase in
dollars reflects steps taken to develop the internal organization and new
information systems.
Research and Development expense in the first six months of 1998 increased
3% over the comparable 1997 period. Major development activities in
Electronic Materials included process and product improvements to the
RO3000 and RO4000 high frequency circuit laminate materials, which are
designed for use in high volume, low cost commercial wireless communication
applications. In flexible circuit materials, development efforts focused
on improved adhesives and improved processing in the Company's plant and at
customers' facilities. Polymer Materials activity continue to include the
commercialization of a slow rebound PORON urethane material for the foot
comfort market, as well as improvements to a variety of other PORON
materials for industrial and printing applications. New ENDUR component
formulations are being developed to provide improved friction properties
and
-10-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS, CONTINUED
longevity in document handling applications. Finally, higher strength
phenolic composites continue to receive technical support as does improved
cure monitoring of phenolic compounds which should lead to improved
processing by customers.
The Company's core technical capabilities in polymers and fillers were
applied to immediate as well as longer term development tasks.
Net interest income for 1998 increased from 1997 due mainly to a tax
interest refund received from the Internal Revenue Service.
As of September 1997, the Company may borrow up to $15.0 million, or the
equivalent in Belgian Francs and/or Japanese Yen, under an unsecured multi-
currency revolving credit agreement with Fleet National Bank. Amounts
borrowed under this agreement are to be repaid in full by September 19,
2002. The Company has borrowed 390 million Belgian Francs under this
agreement as of July 5, 1998.
Other income less other charges was $0.3 million for the first six months
of 1998 compared with $0.9 million for the same period in 1997. This
change is attributable to lower gains on sale of assets and to a decline in
joint venture and royalty income.
Durel Corporation, the joint venture with 3M, which manufactures
electroluminescent lamps, is making slower progress than anticipated in
shifting its sales and manufacturing toward the high volume, low price
demands of the wireless communications market. A new judge has been
appointed for the patent infringement lawsuit brought by Durel to protect
its proprietary technology, and Rogers is hopeful that a trial will take
place before year-end. Rogers INOAC Corporation (RIC), the joint venture
with INOAC Corporation, continues to deal with changes in the disk drive
industry and is being hurt by economic conditions in Japan and Southeast
Asia.
Net cash provided by operating activities in the first six months of 1998
totaled $8.4 million compared with $9.7 million in the comparable 1997
period. This difference was caused by a mix of factors, the largest of
which was a change in the level of Accounts Payable.
Capital expenditures totaled $16.9 million and $6.0 million for the first
six months of 1998 and 1997, respectively. More than half of 1998 spending
is related to expansion projects in the Microwave Materials Division and
the Poron Materials Unit. Management expects that spending for 1998,
primarily for capacity expansions, new process equipment, and new
information systems capability will total over $30 million, about double
the amount spent in 1997. It is anticipated that this spending will be
financed primarily with internal funds.
Management believes that in the near term internally generated funds and
its credit facility with Fleet National Bank will be sufficient to meet the
needs of the business. The Company continually reviews and assesses its
lending relationships.
-11-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS, CONTINUED
The Company has completed an assessment and has modified or replaced
portions of its internally developed software so that its computer systems
will function properly with respect to dates in the year 2000 and
thereafter. The Company also uses software purchased from vendors. Each
such vendor was contacted and all software packages are year 2000
compliant. The only costs that will be incurred in the future will be for
rigorous testing of the software and these costs are not expected to be
significant. The Company is currently in the initial stages of analyzing
third party compliance and its effect on operations.
The Company is subject to federal, state, and local laws and regulations
concerning the environment and is currently engaged in proceedings
involving a number of sites under these laws, as a participant in a group
of potentially responsible parties (PRPs). The Company is currently
involved as a PRP in four cases involving waste disposal sites, all of
which are Superfund sites. Several of these proceedings are at a
preliminary stage and it is impossible to estimate the cost of remediation,
the timing and extent of remedial action which may be required by
governmental authorities, and the amount of liability, if any, of the
Company alone or in relation to that of any other PRPs. The Company also
has been seeking to identify insurance coverage with respect to these
matters. Where it has been possible to make a reasonable estimate of the
Company's liability, a provision has been established. Insurance proceeds
have only been taken into account when they have been confirmed by or
received from the insurance company. Actual costs to be incurred in future
periods may vary from these estimates. Based on facts presently known to
it, the Company does not believe that the outcome of these proceedings will
have a material adverse effect on its financial position.
In addition to the above proceedings, the Company has been actively working
with the Connecticut Department of Environmental Protection (CT DEP)
related to certain polychlorinated biphenyl (PCB) contamination in the soil
beneath a section of cement flooring at its Woodstock, Connecticut
facility. The Company is developing a remediation plan with the CT DEP. On
the basis of estimates prepared by environmental engineers and consultants,
the Company recorded a provision of approximately $900,000 in 1994 and
based on updated estimates provided an additional $700,000 in 1997 for
costs related to this matter. During 1995, $300,000 was charged against
this provision and $200,000 was charged in both 1996 and 1997. Management
believes, based on facts currently available, that the implementation of
the aforementioned remediation will not have a material additional adverse
impact on earnings.
In this same matter, the United States Environmental Protection Agency (the
"EPA") originally sought an administrative penalty of $227,000, which was
later changed to $300,000. The EPA has alleged that the Company improperly
disposed of PCBs. An administrative law judge found the Company liable for
this alleged disposal and assessed a penalty of $281,000. The Company
disputes the allegations and intends to contest the assessment of any
penalty.
The Company has not had any material recurring costs and capital
expenditures relating to environmental matters, except as specifically
described in the preceding statements.
-12-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS, CONTINUED
Statements in this report that are not strictly historical may be deemed
to be "forward-looking" statements which should be considered as subject to
the many uncertainties that exist in the Company's operations and
environment. These uncertainties, which include economic conditions, market
demand and pricing, competitive and cost factors, and the like, are
incorporated by reference in the Rogers Corporation 1997 Form 10-K filed with
the Securities and Exchange Commission. Such factors could cause actual
results to differ materially from those in the forward-looking statements.
-13-
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) List of Exhibits:
(27) Financial Data Schedule
(b)There were no reports on Form 8-K filed for the three months
ended July 5, 1998.
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.
ROGERS CORPORATION
(Registrant)
__________________________________
By s/DONALD F. O'LEARY
Donald F. O'Leary
Authorized Officer
Corporate Controller
Dated: August 18, 1998
-14-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-03-1999
<PERIOD-END> JUL-05-1999
<CASH> 10081
<SECURITIES> 3015
<RECEIVABLES> 31471
<ALLOWANCES> 148
<INVENTORY> 22262
<CURRENT-ASSETS> 74283
<PP&E> 132638
<DEPRECIATION> 67979
<TOTAL-ASSETS> 165335
<CURRENT-LIABILITIES> 34215
<BONDS> 0
0
0
<COMMON> 7613
<OTHER-SE> 93083
<TOTAL-LIABILITY-AND-EQUITY> 165335
<SALES> 111702
<TOTAL-REVENUES> 111702
<CGS> 82475
<TOTAL-COSTS> 102413
<OTHER-EXPENSES> 320
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (362)
<INCOME-PRETAX> 9971
<INCOME-TAX> 2891
<INCOME-CONTINUING> 7080
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7080
<EPS-PRIMARY> .93<F1>
<EPS-DILUTED> .89
<FN>
<F1>This is basic earnings per share.
</FN>
</TABLE>
