FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 27,1998
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 ________1-6905_________________
RUDDICK CORPORATION
(Exact name of registrant as specified in its charter)
NORTH CAROLINA 56-0905940
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
1800 Two First Union Center
Charlotte, North Carolina 28282
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (704) 372-5404
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
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
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Outstanding Shares
Class As of February 4, 1999
-------------- --------------------------
Common Stock 46,647,628 shares
RUDDICK CORPORATION
INDEX
PAGE NO.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED CONDENSED BALANCE SHEETS -
DECEMBER 27, 1998 AND SEPTEMBER 27, 1998 2
CONSOLIDATED CONDENSED STATEMENTS OF
INCOME - THREE MONTHS ENDED
DECEMBER 27, 1998 AND DECEMBER 28, 1997 3
CONSOLIDATED CONDENSED STATEMENTS OF
TOTAL NONOWNER CHANGES IN EQUITY -
THREE MONTHS ENDED DECEMBER 27, 1998
AND DECEMBER 28, 1997 4
CONSOLIDATED CONDENSED STATEMENTS OF
CASH FLOWS - THREE MONTHS ENDED
DECEMBER 27, 1998 AND DECEMBER 28, 1997 5
NOTES TO CONSOLIDATED CONDENSED FINANCIAL
STATEMENTS 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF
OPERATIONS 7-11
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK 11
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 12
SIGNATURES 12
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
RUDDICK CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
December 27, September 27,
ASSETS 1998 1998
------ (Unaudited) (Unaudited)
----------- -------------
CURRENT ASSETS:
Cash and Temporary Cash
Investments $ 26,683 $ 16,668
Accounts Receivable, Net 79,973 76,948
Inventories 229,715 211,404
Other 29,785 27,733
----------- -----------
Total Current Assets 366,156 332,753
PROPERTY, NET 518,652 513,788
INVESTMENTS AND OTHER ASSETS 87,837 85,077
----------- -----------
Total $ 972,645 $ 931,618
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Notes Payable $ 1,759 $ 2,411
Current Portion of
Long-Term Debt 385 571
Accounts Payable 157,161 149,875
Income Taxes Payable 11,394 5,456
Other Accrued Liabilities 63,750 87,107
----------- -----------
Total Current Liabilities 234,449 245,420
LONG-TERM DEBT 233,667 191,360
DEFERRED LIABILITIES 79,601 79,600
MINORITY INTEREST 4,622 4,513
SHAREHOLDERS' EQUITY:
Capital Stock - Common 55,635 54,686
Retained Earnings 367,241 358,328
Cumulative Translation
Adjustments (2,570) (2,289)
----------- -----------
Shareholders' Equity 420,306 410,725
----------- -----------
Total $ 972,645 $ 931,618
=========== ===========
<PAGE>
RUDDICK CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except share and per share data)
THREE MONTHS ENDED
---------------------------
December 27, December 28,
1998 1997
(Unaudited) (Unaudited)
------------ ------------
NET SALES
American & Efird $ 86,147 $ 87,725
Harris Teeter 565,998 529,877
------------ ------------
Total 652,145 617,602
------------ ------------
GROSS PROFIT
American & Efird 25,251 25,611
Harris Teeter 152,960 142,774
------------ ------------
Total 178,211 168,385
------------ ------------
OPERATING PROFIT
American & Efird 11,342 10,621
Harris Teeter 14,438 13,425
------------ ------------
Total 25,780 24,046
------------ ------------
OTHER COSTS AND DEDUCTIONS
Interest expense, net 3,737 4,105
Other expense, net 1,692 1,824
Minority interest 109 150
------------ ------------
Total 5,538 6,079
------------ ------------
Income before income taxes 20,242 17,967
Income taxes 7,601 5,975
------------ ------------
Net income $ 12,641 $ 11,992
============ ============
WEIGHTED AVERAGE NUMBER OF SHARES OF
COMMON STOCK OUTSTANDING:
Basic 46,591,704 46,646,481
Diluted 46,862,258 46,981,727
NET INCOME PER SHARE -
BASIC AND DILUTED $ .27 $ .26
DIVIDENDS DECLARED PER
SHARE - Common $ .08 $ .08
<PAGE>
RUDDICK CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF TOTAL NONOWNER CHANGES IN
EQUITY
(in thousands)
THREE MONTHS ENDED
---------------------------
December 27, December 28,
1998 1997
(Unaudited) (Unaudited)
------------ ------------
Net income $ 12,641 $ 11,992
Other nonowner changes
in equity, net of tax:
Foreign currency
translation adjustment (281) (267)
------------ ------------
Total nonowner changes
in equity $ 12,360 $ 11,725
============ ============
<PAGE>
RUDDICK CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
THREE MONTHS ENDED
---------------------------
December 27, December 28,
1998 1997
------------ ------------
(Unaudited) (Unaudited)
------------ ------------
CASH FLOW FROM
OPERATING ACTIVITIES
Net Income $ 12,641 $ 11,992
Non-Cash Items Included
in Net Income
Depreciation and
Amortization 17,224 15,701
Other, Net (2,535) (983)
Decrease (Increase) in
Current Assets (23,006) (8,204)
Increase (Decrease) in
Current Liabilities (10,786) (32,315)
----------- -----------
NET CASH USED IN OPERATING
ACTIVITIES (6,462) (13,809)
----------- -----------
INVESTING ACTIVITIES
Capital Expenditures (22,324) (34,432)
Cash Proceeds from Sale
of Property 862 35
Company Owned Life
Insurance, Net (3,536) 9,575
Other, Net 1,397 (1,851)
----------- -----------
NET CASH USED IN INVESTING
ACTIVITIES (23,601) (26,673)
----------- -----------
FINANCING ACTIVITIES
Proceeds of Long-Term
Borrowings 42,637 37,800
Payment of Principal on
Long-Term Debt (498) (124)
Dividends (3,728) (3,735)
Other, Net 1,667 762
----------- -----------
NET CASH PROVIDED BY
FINANCING ACTIVITIES 40,078 34,703
----------- -----------
INCREASE (DECREASE) IN
BALANCE SHEET CASH 10,015 (5,779)
BALANCE SHEET CASH AT
BEGINNING OF PERIOD 16,668 17,150
----------- -----------
BALANCE SHEET CASH AT
END OF PERIOD $ 26,683 $ 11,371
=========== ===========
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION
Cash Paid During the
Period for:
Interest $ 3,769 $ 3,902
Income Taxes $ 2,639 $ 3,412
RUDDICK CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
IN THE OPINION OF MANAGEMENT, THE INFORMATION FURNISHED
REFLECTS ALL ADJUSTMENTS (CONSISTING ONLY OF NORMAL
RECURRING ACCRUALS) NECESSARY TO PRESENT FAIRLY THE
RESULTS FOR THE INTERIM PERIODS PRESENTED.
THE COMPANY ADOPTED STATEMENT OF FINANCIAL ACCOUNTING
STANDARDS (SFAS) NO. 130, "REPORTING COMPREHENSIVE
INCOME", EFFECTIVE WITH THE BEGINNING OF ITS FIRST FISCAL
QUARTER OF 1999 AND, ACCORDINGLY, HAS PRESENTED AN
ADDITIONAL BASIC FINANCIAL STATEMENT "CONSOLIDATED
CONDENSED STATEMENTS OF TOTAL NONOWNER CHANGES IN EQUITY"
WHICH REPORTS NET INCOME, AS REPORTED UNDER GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES, ADJUSTED FOR EACH
APPLICABLE COMPONENT OF NONOWNER CHANGES IN SHAREHOLDERS'
EQUITY.
THE COMPANY ADOPTED SFAS NO. 131, "DISCLOSURES ABOUT
SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION",
EFFECTIVE WITH THE BEGINNING OF ITS FIRST FISCAL QUARTER
OF 1999. THIS PRONOUNCEMENT WILL REQUIRE, EFFECTIVE FOR
THE COMPANY'S FISCAL YEAR ENDING OCTOBER 3, 1999, ANNUAL
FINANCIAL STATEMENTS, AND FOR INTERIM AND ANNUAL
REPORTING PERIODS IN FISCAL 2000 AND THEREAFTER, NEW
STANDARDS OF DISCLOSURE FOR INFORMATION ABOUT OPERATING
SEGMENTS OF THE ENTERPRISE AND RELATED DISCLOSURES ABOUT
PRODUCTS AND SERVICES, GEOGRAPHIC AREAS AND MAJOR
CUSTOMERS.
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations
The following table shows net sales, gross profit and
operating profit for each of Ruddick Corporation's operating subsidiaries
for the quarters ended December 27, 1998 and December 28, 1997:
(In Thousands) Quarter Ended
---------------------------------
December 27, December 28,
1998 1997
---------------- --------------
Net Sales
American & Efird $ 86,147 $ 87,725
Harris Teeter 565,998 529,877
--------- -----------
Total $ 652,145 $ 617,602
Gross Profit
American & Efird $ 25,251 $ 25,611
Harris Teeter 152,960 142,774
---------- -----------
Total $ 178,211 $ 168,385
Operating Profit
American & Efird $ 11,342 $ 10,621
Harris Teeter 14,438 13,425
__________ ___________
Total $ 25,780 $ 24,046
Consolidated sales of $652 million in the first quarter of
fiscal 1999 increased 5.6% over the $618 million reported for the comparable
period last year. Total gross profit was up 5.8% from $168 million in
the first quarter of fiscal 1998 to $178 million in fiscal 1999.
Total operating profit of $25.8 million increased 7.2% from $24.0
million last year. Net income of $12.6 million increased 5.4% from the $12.0
million reported in the first fiscal quarter last year, and the quarter's
basic and diluted earnings per share rose from $.26 in fiscal 1998 to
$.27 in fiscal 1999. Due to the higher operating profit for both Harris
Teeter and A&E and a slight reduction in interest expense, Ruddick's
pre-tax earnings rose by 12.7%, from $18.0 million in the fiscal first
quarter of 1998 to $20.2 million in the current quarter. As expected,
however, the Company's income tax rate increased from 33.3% in the prior
year quarter to 37.5% in the current quarter due to the reduction of
favorable tax attributes related to Company owned life insurance,
and thereby diminished the growth in net income.
In the first quarter of fiscal 1999, A&E sales of $86.1
million decreased 1.8% from the $87.7 million reported for the comparable
period last year, due to the elimination of $1.3 million in sales
from the Korean operations that were closed in June 1998 and the
continued softness in demand for thread in U.S. apparel markets
and certain other global markets. The relative softness in U.S.
apparel markets was apparently due, in part, to inventory excesses,
increased apparel imports from Asia, a current trend to
higher-priced designer wear thereby reducing unit sales of
apparel and the continued growth of apparel production outside of the
U.S. Sales in Mexico continued to show strong growth, up 64% over the
prior year quarter, as U.S. apparel manufacturing continued to
shift to Latin America as a result of NAFTA, and sales also increased
in Canada, Europe and Asia, excluding Korea. A&E's gross profit of
$25.3 million in the first quarter of fiscal 1999 declined 1.4%
from $25.6 million in the first quarter last year as gross margin on
sales remained relatively flat. Operating profit of $11.3
million in the first quarter of fiscal 1999 grew by 6.8% from $10.6
million in the comparable period last year. Excluding the $900,000
operating loss recorded in the first quarter of fiscal 1998 from
Korea, A&E's operating profit fell by 1.6% compared to the prior
year quarter. Most of the foreign operations of A&E generated
improvements in operating profitability, although none are
individually material to the Company. A&E's operating profit in
the U.S. market, which displayed a 5% reduction in comparison to the
prior year quarter, reflected the reduction in manufacturing
operating schedules, which decreased overall profitability, due
to the continuation of relatively sluggish demand.
Harris Teeter sales in the first quarter of fiscal 1999 of
$566.0 million increased by 6.8% over the $529.9 million reported
for the comparable period last year. Net sales for stores in
operation during both periods increased by 1.2%. These increases
were achieved despite the intensely competitive supermarket
environment in the company's markets and the lack of inflation in
the grocery sector, both conditions which the company expects to
continue for the foreseeable future. The comparative sales
results are believed to reflect the continued success of the company's
merchandising efforts, including more aggressive promotional,
advertising and customer service activities, and the greater use
of the customer loyalty card, collectively offsetting in part the
adverse effects of competitive store openings. Gross profit of
$153.0 million increased by 7.1% from $142.8 million in the first
fiscal quarter of 1998 and gross margin on sales improved
slightly despite the very competitive pricing environment due to careful
management of the company's promotional strategies. Operating
profit of $14.4 million increased by 7.5% over the $13.4 million
reported for the comparable period last year. Operating margin on sales
increased slightly due to a favorable combination of higher sales
and improved control of store operating expenses. At December 27,
1998, 147 stores were in operation, up from 139 at December 28,
1997. Harris Teeter opened four new stores, including entering
its sixth state with the successful opening of a Jacksonville,
Florida store, and closed one store during the quarter.
Capital Resources and Liquidity
Ruddick Corporation is a holding company which, through its
wholly-owned subsidiaries, American & Efird, Inc. and Harris
Teeter, Inc., is engaged in the primary businesses of industrial sewing
thread manufacturing and distribution, and regional supermarket
operations, respectively. Ruddick has no material independent
operations, nor material assets, other than the investments in
its operating subsidiaries. Ruddick provides a variety of services
to its subsidiaries and is dependent upon income and upstream
dividends from its subsidiaries. There exist no material restrictions on
such dividends, which are determined as a percentage of net income of
each subsidiary.
The Company seeks to limit long-term debt so that it
constitutes no more than 40% of capital employed, which includes
long-term debt, minority interest and shareholders' equity. As
of December 27, 1998, this percentage was 35.5%, as compared to
31.6% at September 27, 1998.
The Company's principal source of liquidity has been
revenues from operations. The Company also has the ability to borrow up
to an aggregate of $100 million under established revolving lines of
credit with three banks. The maximum amount outstanding under
these credit facilities during the quarter ended December 27, 1998 was
$82.8 million, and $75.6 million was outstanding at quarter end
compared to $36.0 million at September 27, 1998. The additional
borrowings under Ruddick's revolving credit facilities were used
primarily for capital expenditures, while balance sheet cash
increased by $10 million temporarily at quarter end as a result
of bank closing schedules associated with the holidays. Borrowings
and repayments under these revolving credit facilities are of the
same nature as short-term credit lines; however, due to the nature and
terms of the agreements allowing up to five years for repayment,
all borrowings under these facilities are classified as long-term
debt.
Working capital of $131.7 million at December 27, 1998
increased $44.4 million from September 27, 1998, primarily the
result of increases in inventories to support increased sales
activity at Harris Teeter, reductions in accrued liabilities and
the temporary increase in cash balances previously noted. The
current ratio was 1.6 at December 27, 1998 and 1.4 at September 27, 1998.
Covenants in certain of the Company's long-term debt
agreements limit the total indebtedness that the Company may incur.
Management believes that the limit on indebtedness does not significantly
restrict the Company's liquidity and that such liquidity is
adequate to meet foreseeable requirements.
In the first three months, capital expenditures totaled
$22.3 million. A&E has spent $4.0 million of the $25 million it might
spend in fiscal year 1999, and Harris Teeter has spent $18.1
million of an anticipated $110 million. These expenditures are for
modernization and expansion. Management expects that internally
generated funds, supplemented by available borrowing capacity,
will be adequate to finance such expenditures.
Other Matters
The Company is in the process of the modification or
conversion of Company computer (IT) systems, as well as non-IT systems which
have embedded technology such as microcontrollers, to provide for
proper functioning beyond calendar year 1999. During the fiscal
year ended September 28, 1997, the Company instituted plans and
initiated its Year 2000 remediation programs by which it would complete
such remediation by the end of April 1999 in the U.S. and June 1999 in
its foreign operations, including final testing in all operations
worldwide by September 1999. Routine periodic reports have
displayed that the project activities are on schedule with the
requirements of the Year 2000 remediation plan. At both Harris
Teeter and A&E, the assessment and technical plan development
phases have been completed and the companies are at various levels of
completion of the remediation implementation and testing phases.
As of December 27, 1998, Harris Teeter remediation was 85% complete
and A&E remediation was 98% complete in the U.S. in their respective
mission-critical, IT and non-IT systems. A&E has foreign
operations which are not material to the Company as a whole; even so, the
programming for just the Latin American IT system model is 100%
complete and all foreign entities are scheduled for completion on
various dates up to June 30, 1999. At both Harris Teeter and
A&E, the integration testing of most U.S. systems is already underway
and compliance testing will proceed on a priority basis for
completion by September 1999. A current assessment of the total amount of
Year 2000 remediation expenditures over the fiscal years 1997 through
completion in 1999 yielded an estimate of $2.9 to $3.1 million.
The combined companies have spent $1.6 million cumulatively for all
periods prior to December 27, 1998, and expect to spend $1.4
million more during the remainder of fiscal year 1999 in order to
complete the Year 2000 remediation and testing. Maintenance and
modification costs will be expensed as incurred, while the costs of new
software will be capitalized and amortized over the software's useful
life. The Company has formal correspondence programs with its major
suppliers and its major thread customers, of which no single
customer exceeds 8% of A&E sales, for inquiry, monitoring and
assessing their Year 2000 remediation plans and efforts. All
costs of their remediation will be borne by the suppliers and
customers. Management expects that the costs of the Company's Year 2000
remediation will have no material impact on its results of
operations, liquidity and capital resources and further, that
resources are available to complete the modification and
conversion as planned. It must be recognized, however, that failure to do
so could have a material adverse effect on the Company's future
results of operations. The Company is currently developing contingency
plans to address the potential worst-case scenarios which could
conceivably evolve in mission-critical systems, presumably as a
result of the lack of readiness of outside parties. This will
include temporary and manual procedures to follow in the event of
a system or subsystem failure. In reference to the supply of goods
and services by vendors, the contingency plans will largely take
into account the vendors' progress to adequately address the Year
2000 issue. The contingency plans are scheduled to be completed
by the end of the second calendar quarter of 1999.
As a result of federal legislation which phased out interest
deductions on certain policy loans and thereby significantly
diminished the favorable tax attributes of Company owned life
insurance ("COLI"), the Company's effective income tax rate, in
comparison to the prior year quarter, has risen to a level
slightly below statutory rates domestically. The Company has recorded
income tax reductions of approximately $25 million cumulatively as the
result of COLI interest deductions from October 1993 through
December 27, 1998. The Internal Revenue Service, on a
comprehensive national level, is evaluating its position regarding the
deductibility of COLI policy loan interest for years prior to
January 1, 1999. The IRS has issued Technical Advice Memoranda
regarding the COLI deductibility to taxpayers unrelated to the
Company. Management understands that the adverse position taken
by the IRS will be subjected to extensive challenges in the courts.
In the event that the IRS prevails, this outcome could result in a
material impact upon the Company's future income taxes and
results of operations.
Regarding Forward-Looking Statements
The foregoing discussion contains some forward-looking
statements about the Company's financial condition and results of
operations, which are subject to certain risks and uncertainties
that could cause actual results to differ materially from those
reflected in the forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which reflect management's judgment only as of the date hereof.
The Company undertakes no obligation to publicly revise these
forward-looking statements to reflect events and circumstances
that arise after the date hereof.
Factors that might cause the Company's actual results to
differ materially from those anticipated in forward-looking statements
include the following:
-generally adverse economic and industry conditions,
including a decline in consumer demand for apparel products or significant
changes in consumer food preferences or eating habits,
-changes in the competitive environment, including increased
competition in the Company's primary geographic markets, the
entry of new competitors and consolidation in the supermarket industry,
-economic or political changes in the countries in which the
Company operates or adverse trade regulations,
-the passage of future tax legislation, or any regulatory
position which prevails, if any, that could have an adverse
impact on the tax benefits of the ESOP dividends and COLI,
-management's ability to accurately predict the adequacy of
the Company's present liquidity to meet future requirements,
-changes in the Company's capital expenditures, new store
openings and store closings, and
-non-availability of resources for the Company, or its
suppliers and customers, to complete their respective Year 2000
compliance effectively.
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
The Company's market risk sensitive instruments do not
subject the Company to material market risk exposures.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS
Exhibit No. Description of Exhibit
11 Statement Re: Computation of Per
Share Earnings
27 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.
RUDDICK CORPORATION
DATE: February 9, 1999 /s/ R. N. Brigden
R. N. BRIGDEN
VICE PRESIDENT - FINANCE
(PRINCIPAL FINANCIAL OFFICER)
EXHIBIT INDEX
Exhibit No.
(per Item 601 Description of Sequential
Of Reg. S-K) Exhibit Page No.
11 Statement Re: Computation of Per Share
Earnings
27 Financial Data Schedule
EXHIBIT 11
RUDDICK CORPORATION
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
THREE MONTHS ENDED
------------------------------
December 27, December 28,
1998 1997
----------- --------------
NET INCOME PER SHARE COMPUTED AS FOLLOWS:
BASIC:
1. Net income available to common
shareholders $12,641,000 $11,992,000
============== ===============
2. Weighted average common
shares outstanding -
Basic $46,591,704 $46,646,481
=============== ===============
3. Basic net income per share
(Item 1 divided by Item 2) $ .27 $ .26
=============== ===============
DILUTED:
1. Net income available to common
shareholders $12,641,000 $11,992,000
================ ===============
2. Weighted average common
shares outstanding -
Basic 46,591,704 46,646,481
3. Weighted potential shares
under stock options computed
for the periods using the
Treasury Stock Method 270,554 335,246
--------------- ---------------
4. Weighted average common
shares outstanding -
Diluted 46,862,258 46,981,727
================ ===============
5. Net Income Per Share (Item
1 divided by Item 4) $.27 $.26
================ ===============
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Financial data schedule for the three months ended
12/27/98
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-27-1998
<PERIOD-END> DEC-27-1998
<CASH> 26,683,000
<SECURITIES> 0
<RECEIVABLES> 82,287,000
<ALLOWANCES> 2,314,000
<INVENTORY> 229,715,000
<CURRENT-ASSETS> 366,156,000
<PP&E> 901,179,000
<DEPRECIATION> 382,527,000
<TOTAL-ASSETS> 927,645,000
<CURRENT-LIABILITIES> 234,449,000
<BONDS> 233,667,000
0
0
<COMMON> 55,635,000
<OTHER-SE> 364,671,000
<TOTAL-LIABILITY-AND-EQUITY> 972,645,000
<SALES> 652,145,000
<TOTAL-REVENUES> 652,145,000
<CGS> 473,934,000
<TOTAL-COSTS> 626,365,000
<OTHER-EXPENSES> 1,801,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,737,000
<INCOME-PRETAX> 20,242,000
<INCOME-TAX> 7,601,000
<INCOME-CONTINUING> 12,641,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 12,641,000
<EPS-PRIMARY> .27
<EPS-DILUTED> .27
</TABLE>
