UNITED STATES
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 March 26, 2000
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 0-2251
SCI SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Delaware 63-0583436
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
SCI Systems, Inc.
2101 West Clinton Avenue
Huntsville, Alabama 35805
(Address of principal executive offices) (Zip Code)
----------------------------------------------
(256) 882-4800
(Registrant's telephone number, including area code)
----------------------------------------------
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.
[X] Yes [ ] No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $.10 par value - 144,832,542
Outstanding at April 25, 2000
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
SCI Systems, Inc.
Condensed Consolidated Balance Sheets
<TABLE>
<S> <C> <C>
March 26, June 30,
2000 1999
(In thousands of dollars) (Unaudited) (*)
- --------------------------------------------------------------------------------
Assets
Current Assets
Cash and cash equivalents $ 158,905 $ 216,085
Accounts receivable 845,566 821,925
Inventories 1,242,376 719,008
Refundable and deferred federal and
foreign income taxes 14,639 12,522
Other current assets 79,990 62,159
----------------------------------
Total Current Assets 2,341,476 1,831,699
Property, Plant, and Equipment
(Less accumulated depreciation and
amortization of $567,047 at
March 26, 2000, and $492,098
at June 30, 1999) 575,569 447,985
Goodwill
(Less accumulated amortization of
$19,392 at March 26, 2000, and
$5,444 at June 30, 1999) 311,299 21,033
Other Noncurrent Assets 55,942 21,943
----------------------------------
Total Assets $3,284,286 $2,322,660
==================================
</TABLE>
* Derived from audited financial statements, but does not include all the
information and footnotes required by generally accepted accounting principles
for complete financial statements.
See notes to condensed consolidated financial statements.
<PAGE>
SCI Systems, Inc.
Condensed Consolidated Balance Sheets
<TABLE>
<S> <C> <C>
March 26, June 30,
2000 1999
(In thousands of dollars except share data) (Unaudited) (*)
- --------------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable and accrued expenses $1,104,000 $874,709
Accrued payroll and related expenses 54,378 44,142
Federal, foreign and state income taxes 30,965 36,117
Current maturities of long-term debt 1,599 341
----------------------------------
Total Current Liabilities 1,190,942 955,309
Other Non Current Liabilities 82,073 61,681
Long-term Debt - Note E
Industrial revenue bonds 19,762 21,119
Long-term notes 119,443 119,734
Convertible notes 562,390 -0-
----------------------------------
Total Long-term Debt 701,595 140,853
Shareholders' Equity
Preferred stock, 500,000 shares authorized
but unissued -0- -0-
Common stock, $.10 par value: authorized
200,000,000; issued 144,855,874 shares
at March 26, 2000, and 144,276,474
shares at June 30, 1999 14,486 14,428
Capital in excess of par value 473,493 462,179
Retained earnings 843,521 703,796
Currency translation adjustment (15,906) (11,288)
Shares held in Rabbi trusts, at cost,
259,404 shares at March 26, 2000,
and 272,592 at June 30, 1999 (5,577) (3,957)
Treasury stock of 118,732 shares, at cost (341) (341)
----------------------------------
Total Shareholders' Equity 1,309,676 1,164,817
----------------------------------
Total Liabilities and Shareholders' Equity $3,284,286 $2,322,660
==================================
</TABLE>
* Derived from audited financial statements, but does not include all the
information and footnotes required by generally accepted accounting principles
for complete financial statements.
See notes to condensed consolidated financial statements.
<PAGE>
SCI Systems, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
<TABLE>
<S> <C> <C>
Quarter Ended:
March 26, March 28,
(In thousands of dollars except share data) 2000 1999
- --------------------------------------------------------------------------------
Net sales $2,216,718 $1,603,024
Costs and expenses 2,122,512 1,546,466
Goodwill and contract intangibles
amortization expense 7,657 917
----------------------------------
Operating Income 86,549 55,641
Other income (expense):
Interest expense (net of interest
income of $1,524 in fiscal year 2000
and $1,451 fiscal year 1999) (12,360) (5,220)
Other, net 18 (199)
----------------------------------
Income Before Income Taxes 74,207 50,222
Income taxes - Note C 24,488 17,834
----------------------------------
Net Income $ 49,719 $ 32,388
==================================
Earnings per share - Note F:
Basic $.34 $.27
Diluted $.34 $.24
Weighted average number of shares used in computation:
Basic 144,144,255 120,344,484
Diluted 148,366,428 145,539,060
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
SCI Systems, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
<TABLE>
<S> <C> <C>
Nine Months Ended:
March 26, March 28,
(In thousands of dollars except share data) 2000 1999
- --------------------------------------------------------------------------------
Net sales $6,036,091 $4,908,531
Costs and expenses 5,790,669 4,741,418
Goodwill and contract intangibles
amortization expense 16,443 1,832
----------------------------------
Operating Income 228,979 165,281
Other income (expense):
Interest expense (net of interest
income of $4,714 in fiscal year 2000
and $4,993 in fiscal year 1999) (20,691) (15,247)
Other, net 257 (405)
----------------------------------
Income Before Income Taxes 208,545 149,629
Income taxes - Note C 68,820 54,615
----------------------------------
Net Income $ 139,725 $ 95,014
==================================
Earnings per share - Note F:
Basic $.97 $.79
Diluted $.95 $.70
Weighted average number of shares used in computation:
Basic 144,053,906 120,078,648
Diluted 146,879,801 145,236,656
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
SCI Systems, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<S> <C> <C>
Nine Months Ended:
March 26, March 28,
(In thousands of dollars) 2000 1999
- ------------------------------------------------------------------------------------------
Operating Activities
Net income $ 139,725 $ 95,014
Adjustments to reconcile net income to net cash
(used for) provided by operations:
Depreciation and amortization 107,208 83,922
Changes in current assets and liabilities:
Accounts receivable (26,044) (76,292)
Inventories (527,950) (65,220)
Other current assets (20,563) (25,986)
Accounts payable and accrued expenses 242,596 87,688
Income taxes 1,319 12,283
Other non cash items - net 4,992 (1,095)
----------------------------------
Net Cash (Used for) Provided by Operating Activities (78,717) 110,314
----------------------------------
Investing Activities
Purchase of property, plant, and equipment (229,898) (81,778)
Acquisition costs in excess of underlying
asset values (304,214) -0-
Other (13,602) (3,298)
----------------------------------
Net Cash Used for Investing Activities (547,714) (85,076)
----------------------------------
Financing Activities
Payments on long-term debt (823,331) (20,704)
Proceeds from long-term debt 1,386,228 457
Issuance of common stock 5,103 4,112
----------------------------------
Net Cash Provided by (Used for) Financing Activities 568,000 (16,135)
----------------------------------
Effect of exchange rate changes on cash 1,251 (318)
----------------------------------
Net (decrease) increase in cash and cash equivalents (57,180) 8,785
Cash and cash equivalents at beginning of period 216,085 184,346
----------------------------------
Cash and Cash Equivalents at End of Period $ 158,905 $ 193,131
==================================
</TABLE>
Cash equivalents consist of short-term deposits and liquid marketable securities
which are stated at cost that approximates market value.
See notes to condensed consolidated financial statements.
<PAGE>
Notes to Condensed Consolidated Financial Statements
March 26, 2000
(Unaudited)
Note A - Basis of Presentation
The accompanying unaudited condensed consolidated financial statements include
the accounts of the Company and its majority-owned subsidiaries after
elimination of significant intercompany accounts and transactions. The financial
statements have been prepared in accordance with instructions to Form 10-Q and
do not include all the information and footnotes required by generally accepted
accounting principles for complete financial statements. Independent auditors
have not examined the statements (and all other information in this report), but
in the opinion of the Company all adjustments, which consist of normal recurring
accruals necessary for a fair presentation of the results for the period, have
been made. The results of operations for the period ended March 26, 2000, are
not necessarily indicative of the results of operations for the year ending June
30, 2000. For further information, refer to the consolidated financial
statements and footnotes included in the Company's Annual Report on Form 10-K
for the year ended June 30, 1999.
Note B - Stock Split in the Form of a Stock Dividend
The Company paid a two-for-one stock split in the form of a stock dividend on
February 18, 2000, to shareholders of record as of February 4, 2000. All number
of shares and earnings per share amounts presented in the accompanying financial
statements reflect this stock split.
Note C - Income Taxes
U.S. income taxes in excess of estimated foreign income tax credits have not
been provided on certain undistributed earnings of foreign subsidiaries
aggregating $109 million at March 26, 2000, which are considered to be
permanently invested. Otherwise, approximately $24 million of cumulative
deferred income taxes (net of related estimated foreign income tax credits)
would have been provided. The estimated income tax provision for fiscal 2000
differs from the U.S. statutory income tax rate due to state income taxes offset
by lower taxed foreign earnings considered permanently invested.
Note D - Acquisitions
In August 1999, the Company acquired Nortel Network's Brockville, Ontario,
Canada, plant and certain other manufacturing assets, and entered into a
multiyear manufacturing agreement. This Plant supplies optical, data and network
subassemblies to Nortel. In December 1999, the Company purchased the
manufacturing assets of TAG Manufacturing, Inc. of San Jose, California. TAG
makes fabricated sheet metal products and assemblies (which are generally
referred to as enclosures) for Original Equipment Manufacturers (OEMs) and
Electronic Manufacturing Services (EMS) providers supporting the computing,
networking, communications and medical electronic equipment industries. These
acquisitions are accounted for under the purchase method of accounting and their
current and past operations are not considered significant to the Company's
operations; accordingly, no pro forma information is presented. The excess of
the purchase price over the acquired underlying tangible assets for these two
acquisitions is being amortized primarily over 15 years, since they represent
substantial market and product expansions. Considerable future growth is
expected from these two acquisitions. The Company intends to expand TAG's
enclosure operation into other geographic areas.
In January 2000, the Company purchased ECI Telecom's Shemer Manufacturing Plant
located in Petah Tikva, Israel, and entered into a multiyear supply agreement.
This plant provides printed circuit board assemblies to ECI for use in their
telecommunications products.
<PAGE>
Note E - Changes in Amount Outstanding of Securities or Indebtedness
Total unused credit facilities available to the Company at March 26, 2000,
approximated $563 million. At March 26, 2000, the Company had sold $142 million
of accounts receivable under its asset securitization agreement. Additionally,
no amounts were outstanding under the Company's commercial paper and bank credit
lines.
In March 2000, the Company issued $575 million of 3% Convertible Subordinated
Notes due March 15, 2007. Interest is payable semiannually in March and
September. Such notes are convertible into the Company's common shares at $56.23
per share. The Company may redeem the Notes on or after March 20, 2003.
Note F - Earnings per Share
Basic earnings per share are computed by dividing reported net income for the
period by the weighted average number of shares of common stock outstanding
during the period. A reconciliation of the net income and weighted average
number of shares used for the diluted earnings per share computations, after
adjustment for the announced stock split, follows:
<TABLE>
<S> <C> <C> <C> <C>
Quarter Ended: Nine Months Ended:
----------------------------- ----------------------------
(In thousands of dollars, March 26, March 28, March 26, March 28,
except share data ) 2000 1999 2000 1999
---------- --------- --------- ---------
Net income $49,719 $32,388 $139,725 $95,014
Add back after-tax interest expense for
convertible subordinated notes 426 2,427 426 7,169
------- ------- -------- -------
Adjusted net income $50,145 $34,815 $140,151 $102,183
======= ======= ======== ========
Weighted average number of shares
outstanding during period 144,144,255 120,344,484 144,053,906 120,078,648
Applicable number of shares for
stock options outstanding for period 2,694,456 1,604,832 2,371,402 1,568,264
Number of shares if outstanding convertible
subordinated notes were converted 1,527,717 23,589,744 454,493 23,589,744
----------- ----------- ----------- -----------
Weighted average number of shares 148,366,428 145,539,060 146,879,801 145,236,656
=========== =========== =========== ===========
Diluted earnings per share $.34 $.24 $.95 $.70
==== ==== ==== ====
</TABLE>
Note G - Comprehensive Income Comprehensive income consists of the following:
<TABLE>
<S> <C> <C> <C> <C>
Quarter Ended: Nine Months Ended:
----------------------------- -----------------------------
March 26, March 28, March 26, March 28,
(In thousands of dollars) 2000 1999 2000 1999
- -------------------------------------------------------------------------------------------------------------
Net income $49,719 $32,388 $139,725 $95,014
Net currency translation adjustment loss (2,556) (3,864) (4,618) (4,371)
-----------------------------------------------------------------
Comprehensive income $47,163 $28,524 $135,107 $90,643
=================================================================
</TABLE>
These currency translation losses are the net result of translations of the
Swedish subsidiary's non-U.S. functional currency financial statements to U.S.
dollars and of non-U.S. dollar long-term intercompany advances.
<PAGE>
Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition
From time to time the Company may publish or express forward-looking statements,
including those herein, relating to such matters as anticipated financial
performance, business prospects and outlook, plant expansions, foreign sales and
currency risks, technological developments, price competition, operating
margins, liquidity, and similar matters. Such statements generally contain the
words "may," "believes," "anticipates," "estimates," "expects," and words of
similar import. The Private Securities Litigation Reform Act of 1995 provides a
safe harbor for forward-looking statements. In compliance with such safe harbor
terms, the Company notes that a variety of factors could cause the Company's
actual results and experience to differ materially from past performance or from
anticipated results or other expectations expressed in the Company's
forward-looking statements. The risks and uncertainties that may cause actual
results to differ materially include component availability and pricing,
management of growth, customer concentration, customer order flow, competition,
technological change, trends in selling prices for the Company's customers'
products, foreign currency fluctuations, projected capital expenditures,
qualitative market risk disclosures, and other similar statements and risks
described in the Company's Annual Report on Form 10-K for the fiscal year ended
June 30, 1999.
Results of Operations
Sales for the third quarter were $2.217 billion, 38% higher than the $1.603
billion in the same period a year earlier. Net income was $49.7 million in the
quarter, a 54% increase over the $32.4 million in the same quarter of fiscal
1999. Basic and diluted earnings per share for the quarter were $.34 each,
compared with $.27 and $.24 per share a year earlier, respectively, an increase
of 42% on diluted earnings per share. Diluted earnings per share excluding the
after-tax effect of goodwill amortization, referred to as "Cash EPS," were $.37
per share compared with $.24 a year earlier.
Sales for the first nine months were $6.036 billion compared with $4.909 billion
in last fiscal year's first nine months. Net income was $139.7 million for this
period compared with $95.0 million in the fiscal 1999's first nine months, a 47%
increase. Basic and diluted earnings per share for the first nine months were
$.97 and $.95 per share, respectively, compared with $.79 and $.70 per share a
year earlier, an increase of 36% on diluted earnings per share. Diluted earnings
per share excluding the after-tax effect of goodwill amortization were $1.03 per
share compared with $.71 a year earlier.
Diversification of products together with growth in telecommunication products
stimulated the revenue and operating margin growth in what has been a
historically down sequential quarter for SCI. Additionally, SCI's product
diversification strategy is not only providing growth, but is also abating some
of the seasonal trends the Company has seen in past years, particularly in the
Personal Computer business.
Substantial growth is occurring in the Company's foreign operations which now
represent approximately 50% of total sales for the first nine months of fiscal
2000 compared to approximately 42% for all of fiscal 1999. Foreign operation
sales are expected to continue to grow faster than domestic sales, especially in
Mexico, Canada and Central Europe. Lower average selling prices were offset by a
substantial volume increase and sales generated by the Company's recent
acquisitions. Finished product sales continue to approximate 50% of the Company
sales. During the third quarter, over half of finished products sales were other
than Personal Computers. Non-PC final assembly sales normally have a higher
operating margin than Personal Computer finished unit assembly sales.
Operating margins (net of goodwill amortization expense) improved to 3.90% in
fiscal 2000's third quarter from 3.47% for the same period a year earlier. For
the first nine months, such operating margins increased to 3.79% from 3.37% in
fiscal 1999's first nine months. These increases resulted largely from increased
sales volumes, especially in operations that were in a startup phase in fiscal
1999, which improved factory cost absorption. Additionally, the growth in
telecommunications products and non-PC finished unit assembly sales have led to
higher operating margins. Reduced losses at the Company's Brazilian plant also
contributed to the improved operating margin for the first nine months.
Operating margins before goodwill amortization increased to 4.25% in fiscal
2000's third quarter from 3.53% in last fiscal year's third quarter. For the
first nine months, such operating margins were 4.07% in fiscal 2000 and 3.40% in
fiscal 1999.
Goodwill and contract intangible amortization increased to $7.7 million in the
third quarter, compared to $.9 million in fiscal 1999's third quarter. For
fiscal 2000's first nine months, such costs amounted to $16.4 million compared
with $1.8 million for the first nine months last fiscal year. These increases
resulted from additional goodwill in fiscal 2000 associated with recent
acquisitions. Depreciation and amortization expense amounted to $41 million
(1.8% of sales) in the third quarter compared with $36 million (1.7% of sales)
in the second quarter. Fiscal 1999's third quarter depreciation and amortization
expense was $28 million (1.7% of sales). For the first nine months, depreciation
and amortization expense was $107 million in fiscal 2000 (1.8% of sales), and
$84 million in fiscal 1999 (1.7% of sales).
Planned fiscal 2000 production capacity expansions should not adversely impact
operating margins as much as startup operations did in fiscal 1999. Fiscal 2000
planned expansions represent capacity increases to existing facilities that are
currently at or near full production levels.
Operations that were in a startup phase in fiscal 1999 are quickly coming up to
existing full production capacity. Capacity is appropriately being increased at
several locations coming out of their startup phase, especially those in Mexico.
Two of the four Mexican plants will enter a third expansion phase shortly just
as they complete their second expansion phase. Mexico represents the fastest
growing geographic area for the Company. Its low production costs and geographic
proximity to U.S. markets makes it extremely attractive to the Company's
customers. Several major programs previously executed at the Company's domestic
facilities have been transferred to the Mexican plants.
Shortages and extended purchase lead times are currently being experienced on
certain components. While the Company believes sufficient component purchase
contracts exist to enable it to substantially meet its planned sales for the
next several quarters, any potential upswing could be impacted by these
component market conditions.
Net interest expense increased to .56% of sales in fiscal 2000's third quarter
from .33% in fiscal 1999's third quarter. This increase principally resulted
from increased debt and receivables sold under the asset securitization
agreement required to fund recent acquisitions, sales growth and greater days of
quarterly sales in inventory resulting from certain components' expanded
purchase lead times. Net interest expense for the first nine months of fiscal
2000 remained fairly consistent with last fiscal year (.34% of sales in fiscal
2000 compared with .31% in fiscal 1999). Interest expense is expected to decline
in coming quarters as a result of the issuance of $575 million of 3% Convertible
Subordinated Notes near the end of the third quarter. Proceeds from this debt
issuance were used to pay down higher variable interest rate debt.
The estimated effective income tax rate differs from the U.S. statutory rate
primarily due to the effects of state income taxes, offset by lower taxes on
foreign earnings considered permanently invested. Increased lower taxed foreign
earnings account for the reduced estimated effective income tax rate in fiscal
2000.
Third quarter net income increased to 2.2% of sales in fiscal 2000 compared with
2.0% in fiscal 1999, and to 2.3% of sales for the first nine months of fiscal
2000 compared with 1.9% in fiscal 1999, as a result of the aforementioned items.
Capital Resources and Liquidity
Working capital increased to $1,151 million at March 26, 2000, from $876 million
at June 30, 1999, primarily due to a higher inventory level. March 26, 2000's
current ratio remained fairly consistent with June 30, 1999's, 2.0 and 1.9,
respectively. Inventories and property, plant, and equipment balances increased
at March 26, 2000, from June 30, 1999, in support of greater sales volume.
Quarterly days of sales in inventory were 51 days at March 26, 2000, compared to
47.6 days at December 26, 1999. March 26, 2000's quarterly days of sales in
property, plant, and equipment remained fairly consistent with June 30, 1999's
(22.0 days at March 26, 2000, compared with 23.4 days at June 30, 1999). The
increase in goodwill relates to the acquisition of Nortel Networks' Brockville,
Ontario, Canada, plant and certain other manufacturing assets in August 1999,
and the acquisition of the manufacturing operations of TAG Manufacturing in
December 1999.
Available liquidity at March 26, 2000, was $722 million, which consisted of $563
million in unused credit facilities and $159 million in cash and cash
equivalents. The Company believes it can adequately fund its expected growth in
the intermediate term.
Capital expenditures (including acquisition intangibles) could exceed $600
million in fiscal 2000 under existing plans. Changes in market conditions and
acquisition opportunities can impact actual capital expenditures substantially.
The current acquisitions have been funded using existing liquidity. The Company
has an ongoing program of actively investigating business opportunities
generated by other companies' divestitures.
Year 2000 Readiness
To date, no computer systems or manufacturing equipment have experienced
material difficulties from the transition to Year 2000.
Item 3. Quantitative and Qualitative Disclosure about Market Risk.
Short-term interest rate changes can impact the Company's interest expense on
its variable interest rate debt, as well as the discount (reflected as interest
expense) on its accounts receivable sold under an asset securitization
agreement. Outstanding variable interest rate debt and accounts receivable sold
approximated $170 million at March 26, 2000. A one percentage point change in
short-term interest rates would have a current impact of increasing interest
expense by approximately $1.7 million on an annual basis. Interest rates are
expected to increase in the near future. Changing interest rates could have a
larger impact on future earnings if variable interest rate debt is used to
finance acquisitions and growth beyond that currently projected. Presently,
fixed rate debt is largely being used to finance the Company's operations.
The Company predominantly conducts its foreign sales and purchase transactions
in U.S. dollars or under customer contract provisions that protect against most
major currency risks. The largest currency risk at March 26, 2000, was that
associated with the Brazilian operations. Unlike most other foreign operations
of SCI, this plant is directly subjected to the effects of currency devaluation
on certain customers' contracts until forward pricing is adjusted accordingly
(normally monthly). During fiscal 1999, the Brazilian currency experienced
severe devaluations which adversely impacted the fiscal 1999 operating results
in Brazil. At March 26, 2000, the Company had approximately $30 million of net
current assets offset by $24 million in long-term intercompany advances subject
to this currency exposure. Approximately $21 million of inventory is subject to
repricing arrangements for currency fluctuations. The Company considers the
Brazilian economic outlook too uncertain to predict.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(1) Exhibit 27 - Financial Data Schedule for March 26, 2000.
(b) Reports
The Company filed no reports on Form 8-K during the period of December 27,
1999, to March 26, 2000.
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.
SCI Systems, Inc.
-----------------
(Registrant)
SCI SYSTEMS, INC.
Date: May 9, 2000 By: /s/ James E. Moylan, Jr.
------------ ------------------------
James E. Moylan, Jr.
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer)
Date: May 9, 2000 By: /s/ John M. Noll
------------ ----------------
John M. Noll
Assistant Vice President,
Corporate Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MARCH
26, 2000'S BALANCE SHEET AND THE INCOME STATEMENT FOR THE 9 MONTHS THEN ENDED
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> MAR-26-2000
<CASH> 158,905
<SECURITIES> 0
<RECEIVABLES> 852,851
<ALLOWANCES> 7,285
<INVENTORY> 1,242,376
<CURRENT-ASSETS> 2,341,476
<PP&E> 1,142,616
<DEPRECIATION> 567,047
<TOTAL-ASSETS> 3,284,286
<CURRENT-LIABILITIES> 1,190,942
<BONDS> 701,595
0
0
<COMMON> 14,486
<OTHER-SE> 1,295,190
<TOTAL-LIABILITY-AND-EQUITY> 3,284,286
<SALES> 6,036,091
<TOTAL-REVENUES> 6,036,091
<CGS> 5,790,669
<TOTAL-COSTS> 5,807,112
<OTHER-EXPENSES> (4,971)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 25,405
<INCOME-PRETAX> 208,545
<INCOME-TAX> 68,820
<INCOME-CONTINUING> 139,725
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 139,725
<EPS-BASIC> 0.97
<EPS-DILUTED> 0.95
</TABLE>
