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 June 30, 1997
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 1-3390
Seaboard Corporation
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 04-2260388
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
9000 W. 67th Street, Shawnee Mission, Kansas 66202
- -------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) (913) 676-8800
Not Applicable
- -------------------------------------------------------------------------
(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 . No ___.
There were 1,487,520 shares of common stock, $.01 par value per share,
outstanding on July 18, 1997.
Total pages in filing - 14 pages
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
SEABOARD CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
June 30, 1997 and December 31, 1996
(Thousands of Dollars)
<CAPTION>
June 30, December 31,
1997 1996
------------ ------------
Assets
------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 5,615 $ 11,467
Short-term investments 102,568 90,373
Receivables, net 159,089 184,284
Inventories 214,032 185,701
Deferred income taxes 8,178 7,224
Prepaid expenses and deposits 24,924 14,330
------------ ------------
Total current assets 514,406 493,379
Investments in and advances to foreign
subsidiaries not consolidated 77,986 32,212
Net property, plant and equipment 472,297 466,161
Other assets 14,206 12,933
------------ ------------
Total assets $1,078,895 $1,004,685
============ ============
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
Notes payable $ 160,400 $ 150,157
Current maturities of long-term debt 6,725 6,900
Accounts payable 57,729 72,398
Other current liabilities 106,573 59,687
------------ ------------
Total current liabilities 331,427 289,142
------------ ------------
Long-term debt, less current maturities 307,444 297,719
Deferred income taxes 27,680 22,721
Other liabilities 27,327 25,169
------------ ------------
Total non-current and deferred
liabilities 362,451 345,609
------------ ------------
Stockholders' equity:
Common stock of $1 par value,
Authorized 4,000,000 shares;
issued 1,789,599 shares 1,790 1,790
Less 302,079 shares held in
treasury, at par value (302) (302)
------------ ------------
1,488 1,488
Additional capital 13,214 13,214
Unrealized gain on available-for-sale
securities, (net of deferred income
tax expense of $1 and $8 at June 30,
1997 and December 31, 1996,
respectively) 2 16
Retained earnings 370,313 355,216
------------ ------------
Total stockholders' equity 385,017 369,934
------------ ------------
Total liabilities and stockholders'
equity $1,078,895 $1,004,685
============ ============
<FN>
See notes to condensed consolidated financial statements.
</TABLE>
Page 2
<TABLE>
SEABOARD CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
Three months ended June 30, 1997 and twelve weeks ended June 15, 1996
(Thousands of dollars except per share amounts)
<CAPTION>
June 30, June 15,
1997 1996
------------ ------------
<S> <C> <C>
Net sales $ 449,366 $ 330,503
Cost of sales and operating expenses 392,286 302,291
------------ ------------
Gross income 57,080 28,212
Selling, general and administrative
expenses 32,871 31,880
------------ ------------
Operating income (loss) 24,209 (3,668)
------------ ------------
Other income(expense):
Interest income 1,483 1,856
Interest expense (7,141) (5,872)
Loss from foreign subsidiaries
not consolidated (3,069) (499)
Miscellaneous 219 (37)
------------ ------------
Total other income (expense), net (8,508) (4,552)
------------ ------------
Earnings (loss) before income taxes
and cumulative effect of a change in
accounting principle 15,701 (8,220)
Income tax expense (benefit) 5,196 (4,071)
------------ ------------
Earnings (loss) before cumulative effect
of a change in accounting principle 10,505 (4,149)
Cumulative effect of changing the
accounting for inventories -- --
------------ ------------
Net earnings (loss) $ 10,505 $ (4,149)
============ ============
Earnings (loss) per common share before
cumulative effect of a change in
accounting principle $ 7.06 $ (2.79)
Cumulative effect of changing the
accounting for inventories -- --
------------ ------------
Earnings (loss) per common share $ 7.06 $ (2.79)
============ ============
Dividends declared per common share $ .25 $ .25
============ ============
Average number of shares outstanding 1,487,520 1,487,520
<FN>
See notes to condensed consolidated financial statements.
</TABLE>
Page 3
<TABLE>
SEABOARD CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
Six months ended June 30, 1997 and twenty-four weeks ended June 15, 1996
(Thousands of dollars except per share amounts)
<CAPTION>
June 30, June 15,
1997 1996
------------ ------------
<S> <C> <C>
Net sales $ 849,546 $ 628,134
Cost of sales and operating expenses 740,497 579,057
------------ ------------
Gross income 109,049 49,077
Selling, general and administrative
expenses 68,720 64,915
------------ ------------
Operating income (loss) 40,329 (15,838)
------------ ------------
Other income(expense):
Interest income 2,694 3,600
Interest expense (14,901) (11,555)
Loss from foreign subsidiaries not
consolidated (4,718) (431)
Miscellaneous 522 60
------------ ------------
Total other income (expense), net (16,403) (8,326)
------------ ------------
Earnings (loss) before income taxes
and cumulative effect of a change in
accounting principle 23,926 (24,164)
Income tax expense (benefit) 8,085 (9,303)
------------ ------------
Earnings (loss) before cumulative effect
of a change in accounting principle 15,841 (14,861)
Cumulative effect of changing the
accounting for inventories, net of
income tax expense of $1,922 -- 3,006
------------ ------------
Net earnings (loss) $ 15,841 $ (11,855)
============ ============
Earnings (loss) per common share before
cumulative effect of a change in
accounting principle $ 10.65 $ (9.99)
Cumulative effect of changing the
accounting for inventories -- 2.02
------------ ------------
Earnings (loss) per common share $ 10.65 $ (7.97)
============ ============
Dividends declared per common share $ .25 $ .25
============ ============
Average number of shares outstanding 1,487,520 1,487,520
============ ============
<FN>
See notes to condensed consolidated financial statements.
</TABLE>
Page 4
<TABLE>
SEABOARD CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
Six months ended June 30, 1997 and twenty-four weeks ended June 15, 1996
(Thousands of Dollars)
<CAPTION>
June 30, June 15,
1997 1996
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) $ 15,841 $ (11,855)
Adjustments to reconcile net earnings
to cash from operating activities:
Depreciation and amortization 28,236 24,403
Equity in losses of non-consolidated
subsidiaries 4,718 431
Deferred income taxes 4,005 2,394
Changes in current assets and
liabilities:
Receivables, net of allowance (3,160) (26,278)
Inventories (28,331) (27,166)
Prepaid expenses and deposits (10,594) (2,030)
Current liabilities exclusive of debt 32,217 (4,117)
Other, net 1,779 259
------------ ------------
Net cash from operating activities 44,711 (43,959)
------------ ------------
Cash flows from investing activities:
Purchase of investments (117,590) (154,022)
Proceeds from the sale or maturity
of investments 105,374 189,022
Capital expenditures, net (34,372) (62,005)
Investments and advances to foreign
subsidiaries not consolidated (22,137) 1,855
Notes receivable, net 160 (243)
------------ ------------
Net cash from investing activities (68,565) (25,393)
------------ ------------
Cash flows from financing activities:
Notes payable to bank, net 10,243 65,816
Proceeds from long-term debt 10,032 10,349
Principal payments of long-term debt (482) (10,502)
Bond construction fund (1,047) 3,357
Dividends paid (744) (744)
------------ ------------
Net cash from financing activities 18,002 68,276
------------ ------------
Net decrease in cash and cash equivalents (5,852) (1,076)
Cash and cash equivalents at beginning
of year 11,467 5,529
------------ ------------
Cash and cash equivalents at end of
quarter $ 5,615 $ 4,453
============ ============
<FN>
See notes to condensed consolidated financial statements.
</TABLE>
Page 5
SEABOARD CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
Note 1 - Accounting Policies and Basis of Presentation
The consolidated financial statements include the accounts of Seaboard
Corporation and its wholly owned domestic and foreign subsidiaries (the
"Company"). All significant intercompany balances and transactions have
been eliminated in consolidation. The Company's investments in non-controlled
foreign subsidiaries are accounted for by the equity method. The unaudited
consolidated financial statements should be read in conjunction with the
consolidated financial statements of the Company for the year ended December
31, 1996 as filed in its Annual Report on Form 10-K.
The accompanying unaudited consolidated financial statements include all
adjustments (consisting only of normal recurring accruals) which, in the
opinion of management, are necessary for a fair presentation of financial
position, results of operations and cash flows. Results of operations for
interim periods are not necessarily indicative of results to be expected for
a full year.
In 1997, the Company changed its quarters to four three-month quarters from
three twelve-week periods and one sixteen-week period. Accordingly, the
three and six months ended June 30, 1997, reflect approximately thirteen and
twenty-six weeks of operations, respectively, compared to twelve and
twenty-four weeks, respectively, for 1996.
Effective for the Company's fiscal year ending December 31, 1997, Statement
of Financial Accounting Standards No. 128,"Earnings Per Share", revises the
calculation and presentation provisions of Accounting Principles Board
Opinion 15 and related interpretations. Retroactive application is required.
The Company believes the adoption of this Statement will not have a
significant effect on its reported earnings per share.
Note 2 - Inventories
<TABLE>
During 1996, the Company changed its method of accounting for spare parts and
supplies used in its poultry and pork processing operations. The following
is a summary of inventories at June 30, 1997 and December 31, 1996 (in
thousands):
<CAPTION>
June 30, December 31,
1997 1996
------------ ------------
<S> <C> <C>
At lower of last-in, first-out (LIFO)
cost or market:
Live poultry $ 27,416 $ 27,610
Dressed poultry 43,638 29,295
Feed and baking ingredients,
packaging supplies and other 8,191 7,353
------------ ------------
79,245 64,258
LIFO allowance (5,488) (6,000)
------------ ------------
Total inventories at lower of LIFO
cost or market 73,757 58,258
------------ ------------
At lower of first-in, first-out (FIFO)
cost or market:
Live hogs 76,351 68,409
Grain, flour and feed 30,980 30,461
Crops in production, fertilizers
and pesticides 8,740 10,097
Dressed pork 10,408 4,709
Other 13,796 13,767
------------ ------------
Total inventories at lower of
FIFO cost or market 140,275 127,443
------------ ------------
Total inventories $ 214,032 $ 185,701
============ ============
</TABLE>
Page 6
Note 3 - Contingencies
The Company is a defendant in a pending arbitration proceeding and related
litigation in Puerto Rico brought by the owner of a chartered barge and tug
which were damaged by fire after delivery of the cargo. Damages of $47.6
million are alleged. The Company is vigorously defending the action and
believes that it has no responsibility for the loss. The Company also
believes that it would have a claim for indemnity if it were held liable for
any loss.
The Company is subject to various other legal proceedings related to the
normal conduct of its business. In the opinion of management, none of these
actions is expected to result in a judgment having a materially adverse effect
on the consolidated financial statements of the Company.
Page 7
Item 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations
LIQUIDITY AND CAPITAL RESOURCES
- -----------------------------------------------------------------------------
June 30, December 31,
1997 1996
- -----------------------------------------------------------------------------
Current ratio 1.55:1 1.71:1
Working capital $ 183.0 $ 204.2
- -----------------------------------------------------------------------------
Cash from operating activities for the six months ended June 30, 1997, was
$44.7 million, compared to $(44.0) million for the twenty-four weeks ended
June 15, 1996. The increase in cash from operating activities
was primarily related to the increase in net earnings of $27.7 million, a
smaller increase in accounts receivable and an increase in current
liabilities for the six months of 1997 compared to the first twenty-four
weeks of 1996. The smaller increase in receivables during 1997 was primarily
the result of increased sales of wheat to affiliated, non-consolidated
foreign flour mills during 1996 and improved collections in
the transportation and power divisions during 1997. The increase in current
liabilities consists primarily of accrued voyage expenses.
The Company invested $32.5 million in property, plant and equipment in the
food production and processing segment for the six months ended June 30, 1997.
Capital expenditures in the pork division of $15.3 million were primarily
for the completion of hog farrowing and finishing facilities. Management
expects additional expenditures in 1997 of approximately $24.5 million for
completion of existing production facilities and improvements to the pork
processing plant to be financed through internally generated cash. The
Company is in the final planning stages for an expansion of its hog production
capacity by 0.5 million hogs per year to a total of 2.5 million hogs per year.
Management anticipates that this expansion will be completed over the next
twelve to eighteen months at an estimated cost of approximately $82 million.
Management is currently evaluating alternative methods of implementing this
expansion, including construction of additional facilities by the Company,
engaging contract growers or additional operating leased facilities.
Facilities completed by the Company will be financed with internally
generated cash.
Capital expenditures of $15.3 million for the six months ended June 30, 1997,
were made in the poultry division. The Company anticipates spending a total
of $37 million in 1997 to expand and convert the Athens, Georgia facility
from retail tray-pack production to foodservice production and to add an
additional cooking line at the Elberton, Georgia facility. Management
anticipates these expenditures will be financed by internally generated cash.
Other capital expenditures in the food production and processing segment for
the six months ended June 30, 1997, included $1.9 million in general
modernization and efficiency upgrades of plant and equipment.
Page 8
Capital expenditures in the transportation segment through June 30, 1997,
totaled $3.8 million for general replacement and upgrades of property and
equipment.
During the six months ended June 30, 1997, the Company made advances of $22.4
million to Ingenio y Refineria San Martin del Tabacal S.A. (Tabacal) in which
the Company owns a non-controlling interest. As of June 30, 1997, advances
totaled $50.0 million for improvements of existing operations, expanding
sugarcane and citrus fields and working capital. During the second quarter
of 1997, it was determined that these advances to Tabacal would not be repaid
on a short-term basis and accordingly such advances are recorded as long-term
advances as of June 30, 1997. For the remainder of 1997, the Company
anticipates making additional advances to Tabacal in an amount which is not
presently expected to exceed $10 million.
In the first quarter of 1997, the Company's one-year revolving credit
facilities were increased to $160 million as a result of the extension and
increase of an existing facility and the establishment of a new facility. As
of June 30, 1997, the Company had $141.6 million outstanding under the one-year
revolving credit facilities and $18.8 million outstanding under short-term
uncommitted credit lines totaling $119.5 million. At December 31, 1996, the
Company had $150.2 million outstanding under the Company's one-year
revolving credit facilities totaling $90 million and short-term uncommitted
credit lines from banks totaling $115 million.
During the first quarter of 1997, the Company borrowed the proceeds of $10
million of Adjustable Rate, Seven-Day Demand Exempt Facility Revenue Bonds
issued by the Oklahoma Development Finance Authority. These funds were used
to finance certain costs associated with hog production facilities. In
addition, the existing five-year revolving credit facility was extended and
reduced from $50 million to $25 million.
Management intends to continue seeking opportunities for expansion in the
industries in which it operates and believes that the Company's liquidity,
capital resources and borrowing capabilities are adequate for its current
and intended operations.
RESULTS OF OPERATIONS
Net sales for the three and six months ended June 30, 1997, increased by $118.9
and $221.4 million, respectively, compared to the twelve and twenty-four weeks
ended June 15, 1996. Operating income increased by $27.9 and $56.2 million,
respectively, compared to the periods one year ago. In 1997, the Company
changed its quarters to four three-month quarters from three twelve-week
periods and one sixteen-week period. Accordingly, the three and six months
ended June 30, 1997, reflect approximately thirteen and twenty-six weeks of
operations, respectively, compared to twelve and twenty-four weeks,
respectively, for 1996.
Page 9
The segment distribution of the increase (decrease) in net sales and operating
income compared to the prior year are as follows (in millions):
Net Sales Operating Income
---------------------- ----------------------
Quarter Year-to-Date Quarter Year-to-Date
-------- ------------ -------- ------------
Food Production and
Processing Segment $ 102.6 $ 196.7 $ 20.5 $ 40.5
Commodity Trading and
Milling Segment 2.1 (1.0) (0.1) (1.4)
Transportation Segment 14.0 25.6 7.2 16.8
Other 0.2 0.1 0.3 0.3
------- ----------- -------- ------------
$ 118.9 $ 221.4 $ 27.9 $ 56.2
======= =========== ======== ============
Food Production and Processing Segment
Net sales for the food production and processing segment increased $102.6
and $196.7 million for the three and six months ended June 30,1997,
respectively, compared to the twelve and twenty-four weeks ended June 15,
1996. The increases are primarily a result of the pork processing plant
operating at full single-shift capacity for the 1997 period in addition to
commencing double-shift operations during the second quarter of 1997.
Operating income increased $20.5 and $40.5 million for the three and six
month periods of 1997 compared to similar periods of 1996 primarily as a result
of lower grain prices and the efficiencies reached by increased production at
the pork processing plant and hog production facilities. Management cannot
predict grain prices for the remainder of 1997.
Net sales of poultry products totaled $114.7 and $231.3 million for the three
and six months ended June 30, 1997, an increase of $2.6 and $8.9 million
compared to the twelve and twenty-four weeks ended June 30,1996, primarily
as the result of a longer accounting period. Lower finished feed costs,
primarily corn, and a reduction in packaging costs, primarily as a result of
product mix, are the primary reasons gross income from poultry sales increased
to $4.1 and $10.4 million for the three and six month periods of 1997,
respectively, from $3.1 and $4.0 million for the similar periods of 1996.
These increases were partially offset by downtime experienced during the
second quarter of 1997 as a result of converting the Company's largest
processing plant, located in Athens, Georgia from retail tray-pack to
foodservice production. This conversion, coupled with the future addition
of a cooking line at the Elberton, Georgia location will increase the further
processing capacity of the Company. Management expects to experience
additional costs of conversion during the third quarter of 1997 and complete
the expansion of its further processing capacity by the end of 1997 or early
in 1998.
Page 10
Net sales within the pork operations increased by $98.0 and $181.2 million
to $137.5 and $242.4 million, respectively, for the three and six months ended
June 30, 1997, compared to the twelve and twenty-four weeks ended June 15,
1996. The increase is primarily the result of increased sales of pork at
the hog processing plant, which reached full single-shift capacity during the
second half of 1996 and commenced double-shift operations during the second
quarter of 1997, along with higher pork prices. Management expects continued
increases in sales during the last half of 1997 as the hog processing plant
continues to increase its double-shift operations. The Company anticipates
that it will achieve full double-shift capacity in late 1997 or early 1998.
Increased utilization of the pork processing plant along with increased
production at the hog production facilities are the primary reasons gross
income increased $17.9 million and $32.7 million to $17.4 and $27.9 million,
respectively, for the three and six month periods of 1997, when compared to
similar periods of 1996.
Commodity Trading and Milling Segment
Net sales from commodity trading and milling activity increased by $2.1 and
decreased $1.0 million to $82.8 and $153.5 million, respectively, for the
three and six months ended June 30, 1997, compared to the twelve and
twenty-four weeks ended June 15, 1996. The increase is primarily a result of
higher wheat sales to foreign markets for the quarter while such sales were
lower for the six months. Operating income for the three and six month
periods of 1997 decreased $0.1 and $1.4 million to $2.8 and $5.6 million,
respectively, when compared to similar periods of 1996 primarily as a result
of lower millfeed prices in foreign markets.
Transportation Segment
Net sales from containerized cargo operations increased by $14.0 and $25.6
million to $76.8 and $145.4 million, respectively, for the three and six
months ended June 30, 1997, compared to the twelve and twenty-four weeks
ended June 15, 1996. This increase is primarily a result of increased cargo
volumes and overall higher container rates in certain markets that the
Company serves combined with the longer accounting period. Operating income
from containerized cargo operations increased by $7.2 and $16.8 million
to $7.1 and $13.7 million, respectively, for the three and six month periods
of 1997 compared to similar periods in 1996. The increase in operating income
was primarily related to increased cargo volumes, higher container rates and
lower operating expenses. A year ago, container rates were under significant
competitive pressure but stabilized and began to improve in the fourth
quarter of fiscal 1996. Management cannot predict whether rates will
continue to improve during 1997.
Page 11
Selling, General and Administrative Expenses
Selling, general and administrative (SG&A) expenses increased $1.0 and $3.8
million to $32.9 and $68.7 million for the three and six months ended June 30,
1997, compared to the twelve and twenty-four weeks ended June 15, 1996,
primarily as a result of a longer accounting period. As a percentage of
revenues, SG&A decreased to 7.3% and 8.1% for the three and six month periods
of 1997, respectively, compared to 9.6% and 10.3% for similar periods of 1996
as a result of increased pork production and lower expenses in the
transportation segment.
Other Income and Expense
Interest income declined during the three and six months ended June 30, 1997,
compared to the similar periods one year earlier resulting primarily from a
decrease in average invested funds. Interest expense increased during the
three and six month periods of 1997 compared to similar periods one year
earlier primarily as a result of increased short-term borrowings.
Loss from foreign subsidiaries not consolidated for the three and six
months ended June 30, 1997, is primarily attributable to the upgrading and
expansion of operations of Tabacal. The Company anticipates incurring
additional losses during 1997 and the first half of 1998 as Tabacal continues
its upgrading and expansion activities.
Page 12
SEABOARD CORPORATION AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K. Seaboard Corporation has not filed any
reports on Form 8-K during the quarter ended June 30, 1997.
This Form 10-Q contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, which include statements
concerning projection of revenues, income or loss, capital expenditures,
capital structure or other financial items, statements regarding the plans
and objectives of management for future operations, statements of future
economic performance, statements of the assumptions underlying or relating to
any of the foregoing statements and other statements which are other than
statements of historical fact. These statements appear in a number of places
in this Form 10-Q and include statements regarding the intent, belief or
current expectations of the Company and its management with respect to (i)
the cost and timing of the completion of new or expanded facilities, (ii) the
Company's financing plans, (iii) the price of feed stocks and other materials
used by the Company, (iv) the price for the Company's products and services,
or (v) other trends affecting the Company's financial condition or results of
operations. Readers are cautioned that any such forward-looking statements
are not guarantees of future performance and involve risks and uncertainties,
and that actual results may differ materially as a result of various factors.
The accompanying information contained in this Form 10-Q under the heading
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" identifies important factors which could cause such differences.
Page 13
PART II - OTHER INFORMATION
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: August 14, 1997
Seaboard Corporation
by: /s/ Robert L. Steer
----------------------------------
Robert L. Steer, Vice President-
Finance (Authorized officer and
principal financial and accounting
officer)
Page 14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE SECOND
QUARTER 10-Q FILING AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 5615
<SECURITIES> 102568
<RECEIVABLES> 159089
<ALLOWANCES> 19258
<INVENTORY> 214032
<CURRENT-ASSETS> 514406
<PP&E> 746052
<DEPRECIATION> 273755
<TOTAL-ASSETS> 1078895
<CURRENT-LIABILITIES> 331427
<BONDS> 0
0
0
<COMMON> 1488
<OTHER-SE> 383529
<TOTAL-LIABILITY-AND-EQUITY> 1078895
<SALES> 849546
<TOTAL-REVENUES> 849546
<CGS> 740497
<TOTAL-COSTS> 740497
<OTHER-EXPENSES> 68720
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 14901
<INCOME-PRETAX> 23926
<INCOME-TAX> 8085
<INCOME-CONTINUING> 15841
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15841
<EPS-PRIMARY> 10.65
<EPS-DILUTED> 10.65
</TABLE>
