<PAGE>
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 November 30, 1999 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: 0-7459
-------
A. Schulman, Inc.
- -------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware 34-0514850
- -------------------------------- ---------------------------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
3550 West Market Street, Akron, Ohio 44333
- -------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(330) 666-3751
- -------------------------------------------------------------------------------
(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 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
----- -----
Number of common shares outstanding
as of December 31, 1999 - 30,840,155
- 1 -
<PAGE>
A. SCHULMAN, INC.
STATEMENT OF CONSOLIDATED NET INCOME (Notes 1 and 2)
(In Thousands except per share data)
<TABLE>
<CAPTION>
For the three months ended
November 30,
--------------------------
1999 1998
--------- ---------
Unaudited
---------
<S> <C> <C>
Net sales $ 273,685 $ 258,646
Interest and other income 1,828 651
--------- ---------
275,513 259,297
--------- ---------
Cost and expenses:
Cost of goods sold 226,808 209,196
Selling, general and
administrative expense 27,650 27,025
Interest expense 1,665 830
Foreign currency transaction
losses (gain) (645) 809
Minority interest 545 321
--------- ---------
256,023 238,181
--------- ---------
Income before taxes 19,490 21,116
Provision for income taxes 7,548 8,298
--------- ---------
Net income 11,942 12,818
Less: Preferred stock dividends (13) (13)
--------- ---------
Net income applicable to
common stock $ 11,929 $ 12,805
--------- ---------
--------- ---------
Weighted average number of
shares outstanding (Note 5):
Basic 30,992 32,288
Fully diluted 30,992 32,288
Basic and diluted earnings per
common share (Note 5): $ 0.38 $ 0.40
--------- ---------
--------- ---------
</TABLE>
-2-
<PAGE>
A. SCHULMAN, INC.
CONSOLIDATED BALANCE SHEET (Notes 1 and 2)
(In Thousands except per share data)
<TABLE>
<CAPTION>
November 30, August 31,
1999 1999
------------ ----------
Assets Unaudited
---------
<S> <C> <C>
Current assets:
Cash and cash equivalents (Note 3) $ 51,730 $ 56,836
Accounts receivable, less allowance
for doubtful accounts of $4,265 at
November 30, 1999 and $3,678 at
August 31, 1999 183,177 159,840
Inventories, average cost or market,
whichever is lower 181,935 171,454
Prepaids, including tax effect of
temporary differences 17,978 19,966
--------- ---------
Total current assets 434,820 408,096
Other assets:
Cash surrender value of life insurance 478 484
Deferred charges, etc., including tax effect
of temporary differences 21,979 22,604
--------- ---------
22,457 23,088
Property, plant and equipment, at cost:
Land and improvements 9,783 9,982
Buildings and leasehold improvements 76,551 78,038
Machinery and equipment 227,052 228,803
Furniture and fixtures 23,896 24,162
Construction in progress 10,140 7,838
--------- ---------
347,422 348,823
Accumulated depreciation and investment grants
of $1,019 at November 30, 1999 and
$230 at August 31, 1999 191,391 188,480
--------- ---------
156,031 160,343
--------- ---------
$ 613,308 $ 591,527
--------- ---------
--------- ---------
</TABLE>
-3-
<PAGE>
A. SCHULMAN, INC.
CONSOLIDATED BALANCE SHEET (Notes 1 and 2)
(In Thousands except per share data)
<TABLE>
<CAPTION>
November 30, August 31,
1999 1999
------------ ----------
Liabilities and Stockholders' Equity Unaudited
---------
<S> <C> <C>
Current liabilities:
Notes payable $ 14,187 $ 10,721
Current portion of long-term debt 295 -
Accounts payable 75,796 64,402
U.S. and foreign income taxes payable 7,291 6,721
Accrued payrolls, taxes and related benefits 18,517 19,180
Other accrued liabilities 18,360 16,792
--------- ---------
Total current liabilities 134,446 117,816
Long-term debt 75,011 65,000
Other long-term liabilities 38,123 37,696
Deferred income taxes 10,075 11,375
Minority interest 3,338 3,394
Stockholders' equity (Note 4):
Preferred stock, 5% cumulative, $100
par value, authorized, issued and
outstanding - 10,672 shares at November 30,
1999 and 10,689 shares at August 31, 1999 1,067 1,069
Special stock 1,000,000 shares authorized
none outstanding - -
Common stock, $1 par value
Authorized - 75,000,000 shares
Issued - 38,381,017 shares at November 30,
and August 31, 1999 38,381 38,381
Other capital 46,694 46,694
Accumulated other comprehensive income (25,298) (17,191)
Retained earnings 435,905 427,880
Treasury stock, at cost, 7,502,862 shares at
November 30, 1999 & 7,250,862 shares at
August 31, 1999 (142,301) (138,291)
Unearned stock grant compensation (2,133) (2,296)
--------- ---------
Common stock equity 351,248 355,177
--------- ---------
Total stockholders' equity 352,315 356,246
--------- ---------
$ 613,308 $ 591,527
--------- ---------
--------- ---------
</TABLE>
-4-
<PAGE>
A. SCHULMAN, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (Notes 1 and 2)
(In Thousands)
<TABLE>
<CAPTION>
For the three months ended
November 30,
--------------------------
1999 1998
-------- ---------
Unaudited
---------
<S> <C> <C>
Provided from (used in) operations
Net income $ 11,942 $ 12,818
Items not requiring the current use of cash:
Depreciation 6,049 5,307
Non-current deferred taxes (855) 98
Foreign pension and other deferred compensation 672 720
Postretirement benefit obligation 291 309
Changes in working capital:
Accounts receivable (30,052) (10,752)
Inventories (14,275) (16,741)
Prepaids 1,697 3,137
Accounts payable 15,961 11,067
Income taxes 709 1,549
Accrued payrolls and other accrued liabilities 1,858 3,994
Changes in other assets and other
long-term liabilities 118 (6,016)
-------- --------
Net cash (used in) provided from operating activites (5,885) 5,490
-------- --------
Provided from (used in) investing activites:
Expenditures for property, plant and equipment (4,974) (8,295)
Disposals of property, plant and equipment 507 264
-------- --------
Net cash used in investing activites (4,467) (8,031)
-------- --------
Provided from (used in) financing activities:
Cash dividends paid (3,918) (3,714)
Increase (decrease) of notes payable 3,507 (500)
Increase of long-term debt 10,387 3,000
Decrease in minority interest (55) (1,029)
Purchase of preferred stock (2) -
Purchase of treasury stock (4,010) (16,559)
Foreign investments grants 846 -
-------- --------
Net cash provided from (used in) financing activities 6,755 (18,802)
-------- --------
Effect of exchange rate changes on cash (1,509) 1,416
-------- --------
Net decrease in cash and cash equivalents (5,106) (19,927)
Cash and cash equivalents at beginning of period 56,836 60,766
-------- --------
Cash and cash equivalents at end of period $ 51,730 $ 40,839
-------- --------
-------- --------
</TABLE>
-5-
<PAGE>
A. SCHULMAN, INC.
FOOTNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) The results of operations for the three months ended November 30, 1999
are not necessarily indicative of the results expected for the year ended
August 31, 2000.
(2) The interim financial statements furnished reflect all adjustments, which
are, in the opinion of management, necessary to a fair presentation of
the results of the interim period presented. All such adjustments are of
a normal recurring nature.
(3) All highly liquid investments purchased with a maturity of three months
or less are considered to be cash equivalents. Such investments amounted
to $34,022,000 at November 30, 1999 and $39,705,000 at August 31, 1999.
Investments with maturities between three and twelve months are
considered to be short-term investments.
(4) A summary of the stockholders' equity section for the three months ended
November 30, 1999 and 1998 is as follows:
<TABLE>
<CAPTION>
(In Thousands)
Accumulated Total
Other Unearned Stock Compre-
Common Other Retained Comprehensive Grant hensive
Stock Capital Earnings Income Compensation Income
------- ------- -------- --------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
Balance-September 1, 1999 $38,381 $46,694 $427,880 $(17,191) $(2,296)
Comprehensive income
Net Income 11,942
Foreign currency
translation loss (8,107)
Total Comprehensive
income $3,835
------
------
Dividends paid or accrued:
Preferred (13)
Common, $.125 per share (3,904)
Amortization of
restricted stock 163
------- ------- -------- --------- --------
Balance-November 30, 1999 $38,381 $46,694 $435,905 $(25,298) $(2,133)
------- ------- -------- --------- --------
------- ------- -------- --------- --------
Balance-September 1, 1998 $38,347 $45,778 $395,746 $ (8,917) $(1,994)
Comprehensive income
Net Income 12,818
Foreign currency
translation loss 6,404
Total Comprehensive
income $19,222
-------
-------
Dividends paid or accrued:
Preferred (13)
Common, $.115 per share (3,730)
Amortization of
restricted stock 161
------- ------- -------- -------- --------
Balance-November 30, 1998 $38,347 $45,778 $404,821 $(2,513) $(1,833)
------- ------- -------- -------- --------
------- ------- -------- -------- --------
</TABLE>
(5) During the three months ended November 30, 1999, the Company repurchased
252,000 shares of its common stock for $4,010,000. Subject to market
conditions, the Company intends to continue repurchasing its common stock
in 2000.
- 6 -
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Net sales for the three months ended November 30, 1999 were $273.7
million, an increase of 5.8% over sales of $258.6 million for the comparable
period in 1998. A comparison of net sales by business segment for the three
months ended November 30, 1999 and 1998 is as follows:
<TABLE>
<CAPTION>
(In Thousands)
Three Months Ended November 30
------------------------------
Increase
1999 1998 (Decrease)
---- ---- ----------
<S> <C> <C> <C>
Europe $157,329 $152,683 $4,646
North America 116,356 105,963 10,393
-------- -------- -------
$273,685 $258,646 $15,039
-------- -------- -------
-------- -------- -------
</TABLE>
The translation effects of foreign currencies decreased sales by 6.2%
or $16.0 million in 1999.
Worldwide tonnage was up 8.8% in 1999. Tonnage was up 13.2% in Europe
and 3.1% in North America.
Gross margins on sales were 17.1% in 1999 compared with 19.1% in 1998.
The decreases in margins are primarily due to a significant increase in resin
prices during the last six months. A comparison of gross margin by business
segment for the three months ended November 30, 1999 and 1998 is as follows:
<TABLE>
<CAPTION>
(In Thousands)
Three Months Ended November 30
------------------------------
Increase
1999 1998 (Decrease)
---- ---- ----------
<S> <C> <C> <C>
Europe $30,314 $30,548 $(234)
North America 16,563 18,902 (2,339)
------- ------- --------
$46,877 $49,450 $(2,573)
------- ------- --------
------- ------- --------
</TABLE>
Selling, general and administrative expenses increased $0.6 million in
1999 or 2.3%. The increase is attributable primarily to the Company's North
American segment due to the opening of new color and product development centers
in 1999. These facilities will be used to support future growth.
Interest expense increased $0.8 million in 1999 due to higher levels of
borrowing incurred to support the Company's stock repurchase program.
Foreign currency transaction gains were primarily due to changes in the
value of currencies in major areas where the Company operates. The major portion
of the gain relates to the U.S. dollar and the Euro.
Minority interest represents a 30% equity position of Mitsubishi
Chemical MKV Company in a partnership with the Company and a 35% equity position
of P.T. Prima Polycon in an Indonesian joint venture with the Company.
Net income included a one time net gain of $787,000 or $.02 per share
from the settlement of an insurance claim resulting from equipment problems at
one of our North American manufacturing facilities.
The effective tax rate was 38.7% in 1999 and 39.3% in 1998. The 1999
rate was lower primarily because of a reduction in certain European tax rates.
The translation effect of foreign currencies decreased net income in
1999 by $0.9 million or $.03 per share.
- 7 -
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
Operating income in Europe was up 9.2% in 1999 due to a 13.2% increase
in volume in 1999 and a decline in marketing expenses from 1998. In 1998, the
European operations incurred costs for participation in a major plastics trade
show which is held once every three years. North American operating income was
down 33.0% due to lower profit margins resulting from higher costs of plastic
resins.
<TABLE>
<CAPTION>
(In Thousands)
1999 1998
------------------------------------------------ ------------------------------------------------
Net Net
Operating Interest Pretax Operating Interest Pretax Increase
Income Expense Income Income Expense Income (Decrease)
--------- ------------ ----------- ------------ ------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME
Europe $16,179 78.8% $16,179 $14,814 69.6% $14,814 $1,365
N. America 4,345 21.2% 4,345 6,485 30.4% 6,485 (2,140)
Interest
exp., net ($1,034) ($1,034) ($183) ($183) (851)
------------- --------- ------------ ----------- ------------ --------- ------------- ----------- --------------
$20,524 100.0% ($1,034) $19,490 $21,299 100.0% ($183) $21,116 ($1,626)
------------- --------- ------------ ----------- ------------ --------- ------------- ----------- --------------
------------- --------- ------------ ----------- ------------ --------- ------------- ----------- --------------
</TABLE>
The Company has a good level of orders. In December there was a
reduction in business activity, which is normal for this period. There has been
continuing pressure on margins due to higher resin prices and the difficulty in
obtaining sufficient price increases. The Company expects margin pressures to
continue in the near term, however there have been indications that resin prices
have begun to stabilize.
MATERIAL CHANGES IN FINANCIAL CONDITION
As of November 30, 1999, the current ratio was 3.2:1 and working
capital was $300 million. Accounts receivable increased $23.3 million at
November 30, 1999 from the previous quarter ended August 31, 1999. The increase
is primarily attributable to higher sales and a slight increase in the number of
days sales outstanding due to some lengthening in credit terms.
During the three months ended November 30, 1999, the Company
repurchased 252,000 shares of its common stock for $4.0 million. Approximately
3.4 million shares remain under a 6 million-share authorization approved by the
Board of Directors in August 1998. Subject to market conditions, the Company
intends to continue repurchasing its common stock in 2000.
The ratio of long-term liabilities to capital was 24.3% at November 30,
1999 and 22.4% at August 31, 1999. This ratio is calculated by dividing the sum
of long-term debt and other long-term liabilities by the sum total of total
stockholders' equity, long-term debt and other long-term liabilities. The
primary factors contributing to the increase of this ratio was an additional
$8.0 million borrowing under the revolving credit agreement in the North
American segment and an increase of $2.0 million in long-term borrowings in the
European segment to fund capital investment plans.
The assets and liabilities of the Company's foreign subsidiaries are
translated into U.S. dollars using current exchange rates. Income statement
items are translated at average exchange rates prevailing during the period. The
resulting translation adjustment are recorded in the "accumulated other
comprehensive income" account in stockholders' equity. The strengthening of the
U.S. dollar during the three months ended November 30, 1999 decreased this
account by $8.1 million.
- 8 -
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
YEAR 2000
The Year 2000 issue is the result of computer programs being written
using two digits rather than four to define a specific year. Any computer
program that has date sensitive software may recognize a date using "00" as the
year 1900 rather than the year 2000. This could result in a temporary inability
to process transactions or engage in other business activities.
Prior to January 1, 2000, the Company has been addressing Year 2000
compliance related to the following areas: enterprise-wide information systems;
manufacturing equipment, lab equipment and technical infrastructure related
information systems; remaining information systems and business critical and key
suppliers.
The Company has redesigned its business processes and implemented
enterprise-wide information systems in North America and Europe. Hardware and
software purchased and installed in conjunction with these systems are expected
to provide Year 2000 compliance for business critical commercial applications.
These systems, which are approximately 99% complete, were installed, tested and
operating by November 30, 1999, at those locations which are relying on these
enterprise-wide system implementations to address the Year 2000 issue. The
Company's Year 2000 compliance is approximately 99% complete related to
manufacturing and lab equipment. The Company is also currently addressing the
remaining technical infrastructure areas, which have potential Year 2000 issues,
primarily desktop computers, and miscellaneous non-business-critical desktop
applications. The Year 2000 compliance related to these remaining areas was
approximately 99% complete as of November 30, 1999.
Throughout the year the Company has been communicating with its
business-critical and key suppliers to determine the extent to which the Company
may be vulnerable due to such suppliers' failure to correct their own Year 2000
issues. Currently, approximately 100% of the business-critical and key suppliers
relative to manufacturing facilities and laboratories have confirmed their Year
2000 compliance.
The aggregate anticipated cost paid to third parties and incurred for
implementing the enterprise-wide information systems, and addressing Year 2000
issues in legacy information systems is approximately $16 million, with the
majority of such cost relating to new enterprise-wide information technology
systems and software, underlying system platforms, and personal computer
workstations. The portion of such cost directly attributable to Year 2000
compliance is approximately $6 million. All Year 2000 costs paid to date have
been primarily funded through operations. Information systems maintenance or
modification costs, and costs directly attributable to Year 2000 remediation are
expensed as incurred, while the cost of new software and equipment is
capitalized and amortized over the assets' useful lives.
Although the Company does not anticipate any material adverse effects
related to the Year 2000, the Company's "most reasonably likely worst case
scenario" would be the disruption to some aspects of its operations as a result
of non-compliant systems utilized by unrelated third party entities such as
governments, utility providers, and other businesses which were included in the
review of business critical and key suppliers' Year 2000 readiness. This type of
failure could result in the temporary inability of the Company to manufacture
and distribute certain products. The Company expects that any such failure would
be temporary, due to the Company's ability to purchase materials from various
suppliers and the Company's ability to shift production among various plants.
The impact on the Company's revenues, gross profit and net income due to the
occurrence of the "most reasonably likely worst case scenario" cannot be
estimated.
- 9 -
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
The Company has completed its contingency planning and finalized its
plan in November 1999 related to business-critical systems. However, in
certain cases, especially global infrastructure failures related to
utilities, core transportation systems, etc., there would be no practical
alternative course of action available to the Company other than shifting
production between plants.
As of January 10, 2000, the Company has not experienced any material
disruptions of its internal computer systems or software applications, and
has not experienced any problems with the computer systems or software
applications of its third party vendors and service providers. The Company
will continue to monitor these third party entities to determine the impact,
if any, on the business of the Company and the actions the Company must take,
if any, in the event of non-compliance by any of these third parties. Based
upon the Company's assessment of compliance by third parties, there appears
to be no material business risk posed by any such noncompliance.
CAUTIONARY STATEMENTS
Statements in this report which are not historical facts are
forward looking statements which involve risks and uncertainties and actual
events or results could differ materially from those expressed or implied in
this report. These "forward looking statements" are based on currently
available information. They are also inherently uncertain, and investors must
recognize that events could turn out to be significantly different from what
we had expected. Examples of such uncertainties include, but are not limited
to the following:
- Worldwide and regional economic, business and political
conditions
- Fluctuations in the value of currencies in major areas where
the Company operates, i.e. the U.S. dollar, Euro, U.K. pound
sterling, Canadian dollar, Mexican peso and Indonesian rupiah
- Fluctuations in prices of plastic resins and other raw materials
- Changes in customer demand and requirements
-10-
<PAGE>
PART II - OTHER INFORMATION
Items 1 through 3 and 5 are not applicable or the answer to such
items is negative; therefore, the items have been omitted and no reference is
required in this Report.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
(a) The Company's annual meeting of stockholders was held on December 9,
1999.
(b) The following Directors were elected at such annual meeting, each for
a three-year term expiring in 2002:
Alan L. Ockene
Willard R. Holland
Dr. Peggy Gordon Elliott
Continuing Class II Directors serving until the 2000 annual meeting of
stockholders:
Robert A. Stefanko
Rene C. Rombouts
James S. Marlen
Continuing Class III Directors serving until the 2001 annual meeting of
stockholders:
Terry L. Haines
Dr. Paul Craig Roberts
James A. Karman
(c) The following matters were voted on at the annual meeting of
stockholders:
(1) Election of Class I Directors:
<TABLE>
<CAPTION>
Director Name Votes For Abstentions
-------------------------------------------------------------------------
<S> <C> <C>
Alan L. Ockene 23,326,609 3,050,607
Willard R. Holland 23,706,416 2,670,800
Dr. Peggy Gordon Elliott 23,593,400 2,783,816
</TABLE>
-11-
<PAGE>
(2) Proposal to approve the amendment of the 1991 Stock
Incentive Plan:
<TABLE>
<CAPTION>
Broker
Votes For Votes Against Abstentions Non-Votes
---------- ------------- ----------- ---------
<S> <C> <C> <C>
17,876,715 5,107,744 172,620 3,220,137
</TABLE>
(3) Ratification of the selection of independent
accountants for the fiscal year ending August 31,
2000:
<TABLE>
<CAPTION>
Broker
Votes For Votes Against Abstentions Non-Votes
---------- ------------- ----------- ---------
<S> <C> <C> <C>
26,233,194 115,561 28,461 0
</TABLE>
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
Exhibit
Number Exhibit
------- -------
4.1 Second Amendment to A. Schulman, Inc. 1991
Stock Incentive Plan (incorporated by reference to
Exhibit 4(k) to the Company's Registration Statement
on Form S-8, dated December 20, 1999, Registration
No. 333-93093).
4.2 Third Amendment to A. Schulman, Inc. 1991
Stock Incentive Plan (incorporated by reference to
Exhibit 4(l) to the Company's Registration Statement
on Form S-8, dated December 20, 1999, Registration
No. 333-93093).
4.3 Third Amendment to A. Schulman, Inc. 1992
Non-Employee Directors' Stock Option Plan
(incorporated by reference to Exhibit 4(p) to the
Company's Registration Statement on Form S-8, dated
December 20, 1999, Registration No. 333-93093).
27* Financial Data Schedule.
*Filed only in electronic format pursuant to Item 601(b)(27) of
Regulation S-K.
-12-
<PAGE>
(b) REPORTS ON FORM 8-K.
No Reports on Form 8-K have been filed during the quarter for which
this Report is filed.
-13-
<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 January 13, 2000 A. Schulman, Inc.
- --------------------- ------------------
(Registrant)
/s/ R. A. Stefanko
-----------------------------------
R. A. Stefanko, Executive Vice President-
Finance & Administration (Signing on behalf
of Registrant as a duly authorized officer
of Registrant and signing as the Principal
Financial Officer of Registrant)
-14-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-2000
<PERIOD-START> SEP-01-1999
<PERIOD-END> NOV-30-1999
<CASH> 51,730,000
<SECURITIES> 0
<RECEIVABLES> 183,177,000
<ALLOWANCES> 4,265,000
<INVENTORY> 181,935,000
<CURRENT-ASSETS> 434,820,000
<PP&E> 347,422,000
<DEPRECIATION> 191,391,000
<TOTAL-ASSETS> 613,308,000
<CURRENT-LIABILITIES> 134,446,000
<BONDS> 75,011,000
0
1,067,000
<COMMON> 38,381,000
<OTHER-SE> 312,867,000
<TOTAL-LIABILITY-AND-EQUITY> 613,308,000
<SALES> 273,685,000
<TOTAL-REVENUES> 275,513,000
<CGS> 226,808,000
<TOTAL-COSTS> 256,023,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 618,000
<INTEREST-EXPENSE> 1,665,000
<INCOME-PRETAX> 19,490,000
<INCOME-TAX> 7,548,000
<INCOME-CONTINUING> 11,942,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11,942,000
<EPS-BASIC> .38
<EPS-DILUTED> .38
</TABLE>
