UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED MARCH 31, 1996 COMMISSION FILE NUMBER 1-3507
R O H M A N D H A A S C O M P A N Y
------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 23-1028370
- ------------------------------- --------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
100 INDEPENDENCE MALL WEST, PHILADELPHIA, PENNSYLVANIA 19106
- ------------------------------------------------------ ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (215) 592-3000
--------------
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, and (2) has been subject to such
filing requirements for the past 90 days.
Yes __X__ No _____
Common stock outstanding at May 3, 1996: 66,140,499 SHARES
----------------
<PAGE>
ROHM AND HAAS COMPANY AND SUBSIDIARIES
FORM 10-Q
PART I -- FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The following are incorporated herein by reference to pages 6 through 9
of the company's Quarterly Report to Stockholders for the first quarter of
1996, a complete copy of which is attached as Exhibit 20.
1. Statements of Consolidated Earnings
2. Statements of Consolidated Cash Flows
3. Consolidated Balance Sheets
4. Notes to Consolidated Financial Statements
ITEM 2. -- MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The management discussion and analysis is incorporated herein by
reference to pages 2 through 3 of the company's Quarterly Report to
Stockholders for the first quarter of 1996, a complete copy of which is
attached as Exhibit 20.
PART II -- OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
A discussion of legal proceedings is incorporated herein by reference
to page 9 of the company's Quarterly Report to Stockholders for the first
quarter of 1996, a complete copy of which is attached as Exhibit 20.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
Exhibit (12) -- Computation of Ratio of Earnings to Fixed Charges
for the company and subsidiaries.
Exhibit (20) -- Copy of the company's Quarterly Report to Stockholders
for the quarter ended March 31, 1996.
Exhibit (27) -- Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter ended
March 31, 1996.
<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.
DATE: May 10, 1996 ROHM AND HAAS COMPANY
------------ (Registrant)
FRED W. SHAFFER
VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
<PAGE>
EXHIBIT INDEX
(Pursuant to Part 232.102(d) of Regulation S-T)
Exhibit
No. Description
- ------- -----------------------------------------------------------
(12) Computation of Ratio of Earnings to Fixed Charges
(20) Copy of Quarterly Report to Stockholders
(27) Financial Data Schedule
<TABLE>
<CAPTION>
EXHIBIT 12
ROHM AND HAAS COMPANY
AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(millions of dollars)
THREE MONTHS
ENDED YEAR ENDED DECEMBER 31,
MARCH 31, --------------------------------------
1996 1995 1994 1993 1992 1991
------------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Earnings before income
taxes $ 154 $ 441 $ 407 $ 194 $ 261 $ 240
Fixed charges 19 84 82 79 83 79
Capitalized interest
adjustment (2) (5) (2) (7) (3) (6)
Undistributed earnings
adjustment 3 (3) (2) 6 2 (2)
------------ ------ ------ ------ ------ ------
Earnings $ 174 $ 517 $ 485 $ 272 $ 343 $ 311
------------ ------ ------ ------ ------ ------
Ratio of earnings to
fixed charges 9.2 6.2 5.9 3.4 4.1 3.9
------------ ------ ------ ------ ------ ------
</TABLE>
Note: Earnings consist of earnings before income taxes and fixed charges
after eliminating undistributed earnings (losses) of affiliates and
capitalized interest net of amortization of previously capitalized
interest. Fixed charges consist of interest expense, including
capitalized interest, and amortization of debt discount and expense on
all indebtedness, plus one-third of rent expense deemed to represent an
interest factor.
EXHIBIT 20
COPY OF QUARTERLY REPORT TO STOCKHOLDERS
<PAGE>
ROHM AND HAAS COMPANY
FIRST QUARTER 1996
ID: COVER GRAPHIC
<PAGE>
FINANCIAL HIGHLIGHTS
(Millions of dollars, except earnings per share)
- ----------------------------------------------------------
First Quarter
--------------------------
Percent
1996 1995 Change
--------------------------
Net sales $ 994 $ 985 1
Net earnings 100 79 27
Net earnings per common share $1.46 $1.14 28
- ----------------------------------------------------------
SALES BY BUSINESS GROUP
Millions of dollars
- ---------------------------------------------------
Polymers, Resins and Monomers $453
[PIE CHART] Performance Chemicals $224
Plastics $169
Agricultural Chemicals $148
SALES BY CUSTOMER LOCATION
Millions of dollars
- ---------------------------------------------------
North America $516
[PIE CHART] Europe $278
Asia-Pacific $145
Latin America $ 55
<PAGE>
CHAIRMAN'S LETTER
External economies remain slower than we would like, but Rohm and
Haas is not sitting by idly, waiting for the situation to improve.
During the first quarter of 1996, we improved productivity, kept costs
under control and sought new business wherever we could find it.
These efforts, along with the absence of any significant non-operating
charges, enabled us to outperform last year's strong first quarter. In
fact, we posted the first $100 million earnings quarter in our history,
in spite of nearly flat sales and unit volume that was down 3 percent
from the year before.
We are geared up to have a good year in 1996. Some of our confidence
comes from knowing we will deliver even more cost savings as a result of
productivity efforts under way around the world. We also hope to see
improvements in the key automotive and construction markets as the year
progresses. So Rohm and Haas should have a good year -- the extent of the
improvement will depend mainly on the health of world economies.
On May 6th, Rohm and Haas announced it will form a joint venture with
Rohm GmbH for the research, manufacture and sale of petroleum additives.
This 50-50 joint venture, called RohMax, will have combined sales of
$225 million. We hope to have the venture in operation by the end of
the third quarter of this year.
/s/ J. LAWRENCE WILSON
J. Lawrence Wilson
Chairman May 10, 1996
<PAGE>
MANAGEMENT DISCUSSION AND ANALYSIS
FIRST QUARTER 1996 VERSUS
FIRST QUARTER 1995
First quarter 1996 earnings were $100 million, up 27% from last year's
very strong first quarter results of $79 million. Earnings per common
share were $1.46, up 28% from $1.14 in 1995. Earnings per common share
were up 5%, excluding a charge in 1995 of $.25 per common share for
cleanup of a waste site in Myerstown, Pennsylvania. Though volume
declined 3%, sales of $994 million were 1% higher than reported in the
prior-year period due to stronger European currencies and 2% higher
selling prices. Earnings increased as a result of higher selling
prices, 7% lower raw material costs and the absence of significant
non-operating charges. Higher unit manufacturing costs caused by lower
production volumes hurt earnings.
Polymers, Resins and Monomers (PRM) earnings were $49 million, down 4%
compared to the prior year. Sales increased 2% due to higher selling
prices and stronger European currencies. Weakness in certain end-use
markets in North America caused volume to decline 2%; paper, textiles
and adhesives were most negatively impacted. Earnings decreased due to
higher unit manufacturing costs resulting from lower production volumes
and the startup of new facilities, and higher selling, administrative
and research costs.
Performance Chemicals recorded earnings of $28 million, up from last
year's earnings of $20 million. Sales increased 7%, excluding the sale
of a small electronic chemicals subsidiary in 1995, due to 5% higher
volume and a higher-priced product mix. Part of the earnings
improvement is attributable to charges recorded in 1995 related to
previously divested businesses which did not recur in 1996. Most of the
businesses had higher volume, sales and earnings compared to the prior
period, primarily in North America and Europe.
Plastics reported earnings of $14 million, down 26% from the 1995
period. Sales declined 6%, reflecting 10% lower volume and reduced
selling prices, offset by stronger European currencies. Reduced volume
and selling prices caused the decline in earnings. Overcapacity and
slowing markets in Japan, Europe and the United States created
significant pressure on pricing and the decline in volume.
Agricultural Chemicals earnings of $20 million were 9% lower than the
prior-year period. Sales of $148 million were 3% higher than 1995,
though volume was down 2%, reflecting a higher-priced product mix and
stronger currencies in Europe. Volume declined due to lower shipments
of Stam herbicide as a result of reduced rice plantings. A less
profitable product mix in Asia-Pacific and higher selling,
administrative and research costs resulted in lower earnings.
Corporate expenses totaled $11 million in 1996, compared to $33 million
in last year's first quarter. The prior year included a $17 million
charge to cleanup the Whitmoyer waste site in Myerstown, Pennsylvania
and $2 million higher interest expense.
Net sales were $994 million, up 1% from 1995. The first quarter gross
profit margin was 37%, up slightly from the prior period. Seven percent
lower raw material prices, 2% higher selling prices and cost savings in
plant operations offset higher manufacturing variances as a result of
lower production volume.
2
<PAGE>
Selling, administrative and research (SAR) expenses increased 5% due to
stronger European currencies and spending to support business expansion.
Interest expense decreased 22% as a result of lower average debt levels
in the first quarter of 1996. Affiliate losses were $3 million
compared to earnings of $1 million in the first quarter of 1995 due to
losses from the AtoHaas affiliates caused by weak economic conditions in
Europe. Other expense, net, decreased $39 million from 1995. The
prior-year period included charges of $26 million for the cleanup of
the Whitmoyer waste site and $5 million related to previously divested
businesses.
LIQUIDITY, CAPITAL RESOURCES
AND OTHER FINANCIAL DATA
At the end of the quarter, cash and cash equivalents totaled $40
million, down $3 million from the 1995 year-end balance. Receivables
were up $89 million during the first three months of the year due to
higher sales. In early 1996, the company collected $24 million of
insurance recoveries related to environmental remediation cost claims.
The debt-to-equity ratio, calculated without the reduction to
stockholders' equity for the ESOP transaction, was 42% at the end of
March, compared with 36% at year-end 1995. The higher debt-to-equity
ratio resulted from higher debt outstanding at the end of the quarter
and a reduction in equity due to the repurchase of the company's common
stock. During the quarter, the company repurchased 867,000 shares of
its common stock at a cost of $60 million.
Fixed asset additions during the first three months of 1996 totaled $73
million. Spending for the full year is estimated to be in the range of
$375 million, and includes expenditures for new emulsion facilities in
Thailand, Indonesia and Houston, Texas, and capacity expansion for
acrylic acid at Houston, Texas.
On May 6, 1996, the company announced it will form a 50-50 joint venture
with Rohm GmbH of Darmstadt, Germany, for the research, manufacture and
sale of petroleum additives. The combined sales of this venture, called
RohMax, will be approximately $225 million.
On May 6, 1996, the board of directors declared a regular quarterly
dividend of $.41 per common share and $.6875 per preferred share,
payable June 1, 1996, to stockholders of record on May 17, 1996.
3
<PAGE>
<TABLE>
<CAPTION>
ROHM AND HAAS COMPANY AND SUBSIDIARIES
SALES BY BUSINESS GROUP AND CUSTOMER LOCATION (Millions of dollars)
- ------------------------------------------------------------------------------
FIRST QUARTER 1996 AND 1995
- ------------------------------------------------------------------------------
Polymers,
Resins and Performance Agricultural
Monomers Chemicals Plastics Chemicals Total
------------- ------------- ------------- ------------- -------------
1996 1995 1996 1995 1996 1995 1996 1995 1996 1995
- ------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
North
America $294 $295 $ 96 $ 89 $ 88 $100 $ 38 $ 32 $516 $516
- ------- ------------- ------------- ------------- ------------- -------------
Europe 87 79 67 60 64 59 60 59 278 257
- ------- ------------- ------------- ------------- ------------- -------------
Asia-
Pacific 48 46 56 62 11 14 30 35 145 157
- ------- ------------- ------------- ------------- ------------- -------------
Latin
America 24 25 5 6 6 6 20 18 55 55
- ------- ------------- ------------- ------------- ------------- -------------
Total $453 $445 $224 $217 $169 $179 $148 $144 $994 $985
- ------- ------------- ------------- ------------- ------------- -------------
</TABLE>
<TABLE>
<CAPTION>
PHYSICAL VOLUME CHANGE
CURRENT QUARTER RELATIVE TO YEAR-EARLIER QUARTER
- -----------------------------------------------------------------------
Percent CUSTOMER Percent
BUSINESS GROUP Change LOCATION Change
- -----------------------------------------------------------------------
<S> <C> <C> <C>
Polymers, Resins and Monomers (2) North America (4)
Performance Chemicals 2 Europe --
Plastics (10) Asia-Pacific 2
Agricultural Chemicals (2) Latin America (6)
- -----------------------------------------------------------------------
Worldwide (3) Worldwide (3)
- -----------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
NET EARNINGS BY BUSINESS GROUP AND CUSTOMER LOCATION
- -----------------------------------------------------------
Quarter Ended March 31,
---------------------------
1996 1995*
---------------------------
BUSINESS GROUP (Millions of dollars)
---------------------------
<S> <C> <C>
Polymers, Resins and Monomers $ 49 $ 51
Performance Chemicals 28 20
Plastics 14 19
Agricultural Chemicals 20 22
Corporate (11) (33)
- -----------------------------------------------------------
Total $100 $ 79
- -----------------------------------------------------------
CUSTOMER LOCATION
North America $ 53 $ 52
Europe 37 34
Asia-Pacific 15 21
Latin America 6 5
Corporate (11) (33)
- -----------------------------------------------------------
Total $100 $ 79
- -----------------------------------------------------------
</TABLE>
Corporate includes non-operating items such as interest income and
expense, corporate governance costs and the operations of certain
developing businesses.
* Corporate governance costs, previously allocated to the businesses and
regions, are reported in Corporate in 1996. Additionally, the
operations of certain developing businesses, previously reported in
Performance Chemicals and North America, are now reported in Corporate.
Prior periods have been restated to conform with current year presentation.
<TABLE>
<CAPTION>
ANALYSIS OF CHANGE IN PER-SHARE EARNINGS
CURRENT PERIOD RELATIVE TO YEAR-EARLIER PERIOD
- -----------------------------------------------------------
$/Share
GROSS PROFIT (after-tax)
-------------
<S> <C>
Selling prices $ .18
Physical volume and product mix .04
Raw material costs .18
Other manufacturing costs (.38)
Current effect on gross profit .04
- -----------------------------------------------------------
Increase in gross profit .06
- -----------------------------------------------------------
OTHER CAUSES
Selling, administrative and research expenses* (.09)
Interest expense .02
Share of affiliate earnings (losses) (.06)
Certain waste disposal site cleanup costs .25
Other .14
- -----------------------------------------------------------
Increase from other causes .26
- -----------------------------------------------------------
Increase in per-share earnings $ .32
- -----------------------------------------------------------
</TABLE>
*The amount shown is on a U.S. dollar basis and includes the impact of
currency movements as compared to the prior-year period.
5
<PAGE>
<TABLE>
<CAPTION>
Rohm and Haas Company and Subsidiaries
STATEMENTS OF CONSOLIDATED EARNINGS
(Subject to Year-end Audit)
- ---------------------------------------------------------------
Quarter Ended March 31,
-------------------------
1996 1995
-------------------------
CURRENT EARNINGS (Millions of dollars)
-------------------------
<S> <C> <C>
Net sales $ 994 $ 985
Cost of goods sold 631 628
- ---------------------------------------------------------------
Gross profit 363 357
Selling and administrative expense 153 145
Research and development expense 46 45
Interest expense 7 9
Share of affiliate net earnings (losses) (3) 1
Other expense, net -- 39
- ---------------------------------------------------------------
Earnings before income taxes 154 120
Income taxes 54 41
- ---------------------------------------------------------------
NET EARNINGS $ 100 $ 79
Less preferred stock dividends 2 2
- ---------------------------------------------------------------
NET EARNINGS APPLICABLE TO
COMMON SHAREHOLDERS $ 98 $ 77
- ---------------------------------------------------------------
PER COMMON SHARE:
Net earnings $ 1.46 $ 1.14
Dividends $ .41 $ .37
Average number of common shares
outstanding (000's) 67,099 67,675
- ---------------------------------------------------------------
</TABLE>
See notes to consolidated financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
Rohm and Haas Company and Subsidiaries
STATEMENTS OF CONSOLIDATED CASH FLOWS (Subject to Year-end Audit)
- ------------------------------------------------------------------------
Quarter Ended March 31,
---------------------------
1996 1995
---------------------------
CASH FLOWS FROM OPERATING ACTIVITIES (Millions of dollars)
---------------------------
<S> <C> <C>
Net earnings $ 100 $ 79
Adjustments to reconcile net earnings
to cash provided by operating activities:
Depreciation 60 55
Deferred income taxes 3 12
Accounts receivable (89) (163)
Inventories 1 (20)
Accounts payable (51) 29
Income taxes payable 28 8
Other working capital changes, net (32) (29)
Other, net 22 24
- ------------------------------------------------------------------------
Net cash provided (used) by
operating activities 42 (5)
- ------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to land, buildings and equipment (73) (63)
Proceeds from the sale of facilities and
investments -- 20
- ------------------------------------------------------------------------
Net cash used by investing activities (73) (43)
- ------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt 1 8
Purchases of treasury stock (62) (5)
Repayments of long-term debt (7) (77)
Net change in short-term borrowings 128 51
Payment of dividends (29) (26)
Other, net (3) 14
- ------------------------------------------------------------------------
Net cash provided (used) by
financing activities 28 (35)
- ------------------------------------------------------------------------
Effect of exchange rate changes on cash -- (1)
- ------------------------------------------------------------------------
NET DECREASE IN CASH AND CASH EQUIVALENTS $ (3) $ (84)
- ------------------------------------------------------------------------
</TABLE>
See notes to consolidated financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
Rohm and Haas Company and Subsidiaries
CONSOLIDATED BALANCE SHEETS (Subject to Year-end Audit)
- -----------------------------------------------------------------------------
MARCH 31, December 31, March 31,
1996 1995 1995
------------------------------------
ASSETS (Millions of dollars)
------------------------------------
<S> <C> <C> <C>
Current assets:
Cash and cash equivalents $ 40 $ 43 $ 43
Receivables, net 845 756 842
Inventories (note d) 503 504 505
Prepaid expenses and other assets 99 118 140
- -----------------------------------------------------------------------------
Total current assets 1,487 1,421 1,530
- -----------------------------------------------------------------------------
Land, buildings and equipment 4,221 4,158 3,986
Less accumulated depreciation 2,166 2,110 2,025
- -----------------------------------------------------------------------------
Net land, buildings and equipment 2,055 2,048 1,961
- -----------------------------------------------------------------------------
Other assets 446 447 480
- -----------------------------------------------------------------------------
$3,988 $3,916 $3,971
- -----------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 212 $ 90 $ 134
Accounts payable and accrued
liabilities 567 666 693
Accrued income taxes 100 72 83
- -----------------------------------------------------------------------------
Total current liabilities 879 828 910
- -----------------------------------------------------------------------------
Long-term debt 603 606 647
Other liabilities 713 701 729
Stockholders' equity:
$2.75 Cumulative convertible preferred
stock (note e) 133 133 134
Common stock: shares
issued -- 78,652,380 197 197 197
Additional paid-in capital 146 150 151
Retained earnings 1,860 1,789 1,659
- -----------------------------------------------------------------------------
2,336 2,269 2,141
Less: Treasury stock (note f) 397 344 327
Less: ESOP shares 150 151 155
Other equity adjustments 4 7 26
- -----------------------------------------------------------------------------
Total stockholders' equity 1,793 1,781 1,685
- -----------------------------------------------------------------------------
$3,988 $3,916 $3,971
- -----------------------------------------------------------------------------
</TABLE>
See notes to consolidated financial statements.
8
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
- -----------------------------------------------------------------------------
(A) These interim financial statements are unaudited, but, in the
opinion of management, all adjustments, which are of a normal recurring
nature, have been made to present fairly the company's financial
position, results of operations and cash flows. It is suggested that
these financial statements be read in conjunction with the financial
statements, accounting policies and the notes included in the company's
annual report for the year ended December 31, 1995.
(B) The company is a party in various government enforcement and private
actions associated with former waste disposal sites. The company is
also involved in potential corrective actions at some of its
manufacturing facilities. The amounts charged to earnings before tax
for environmental remediation were $6 million and $26 million for the
three months ended March 31, 1996, and 1995, respectively. The charge
in the 1995 period was for additional potential liability related to the
Whitmoyer waste site. At March 31, 1996, the reserves for remediation
were $167 million. Probable insurance recoveries were $48 million, down
$24 million from the December 31, 1995 balance due to collections from
certain carriers.
In addition to accrued environmental liabilities, the company has
reasonably possible loss contingencies relating to environmental matters
of approximately $70 million. The company has also identified other
sites where future environmental remediation expenditures may be
required, but these expenditures are not reasonably estimable at this
time. The company believes that these matters, when ultimately
resolved, which may be over the next decade, will not have a material
adverse effect on the consolidated financial position of the company,
but could have a material adverse effect on consolidated results of
operations in any given year.
(C) The company and its subsidiaries are parties to litigation arising
out of the ordinary conduct of its business. Recognizing the amounts
reserved for such items and the uncertainty of the outcome, it is the
company's opinion that the resolution of all pending lawsuits and claims
will not have a material adverse effect, individually or in the
aggregate, upon the results of operations and the consolidated financial
position of the company.
(D) Inventories consist of:
(Millions of dollars)
<TABLE>
<CAPTION>
MAR. 31, Dec. 31, Mar. 31,
1996 1995 1995
--------- -------- ---------
<S> <C> <C> <C>
Finished products and
work in process $378 $376 $381
Raw materials and
supplies 125 128 124
---- ---- ----
Total inventories $503 $504 $505
---- ---- ----
</TABLE>
(E) The number of preferred shares issued
and outstanding were:
March 31, 1996 2,653,591
December 31, 1995 2,656,153
March 31, 1995 2,671,722
(F) The number of common treasury shares were:
March 31, 1996 12,088,999
December 31, 1995 11,327,357
March 31, 1995 11,020,204
Stam is a trademark of Rohm and Haas Company.
9
<PAGE>
[LOGO]
RESPONSIBLE CARE(R)
A PUBLIC COMMITMENT
[LOGO]
ROHM AND HAAS
<PAGE>
APPENDIX TO EXHIBIT 20
(Pursuant to Part 232.304(a) of Regulation S-T)
Graphic Description/Cross Reference
- ----------- ----------------------------------------------------------
Cover A flask with a globe inside and words "First Quarter 1996"
Pie Charts Description included in introduction to Exhibit 20
(not incorporated by reference)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> ROHM AND HAAS COMPANY AND SUBSIDIARIES
FINANCIAL DATA SCHEDULE (MILLIONS OF DOLLARS)
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM FINANCIAL STATEMENTS AS OF MARCH 31, 1996 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 40
<SECURITIES> 0
<RECEIVABLES> 769
<ALLOWANCES> 12
<INVENTORY> 503
<CURRENT-ASSETS> 1,487
<PP&E> 4,221
<DEPRECIATION> 2,166
<TOTAL-ASSETS> 3,988
<CURRENT-LIABILITIES> 879
<BONDS> 603
0
133
<COMMON> 197
<OTHER-SE> 1,463
<TOTAL-LIABILITY-AND-EQUITY> 3,988
<SALES> 994
<TOTAL-REVENUES> 994
<CGS> 631
<TOTAL-COSTS> 631
<OTHER-EXPENSES> 199
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7
<INCOME-PRETAX> 154
<INCOME-TAX> 54
<INCOME-CONTINUING> 100
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 100
<EPS-PRIMARY> 1.46
<EPS-DILUTED> 1.46
</TABLE>
