UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 1995
or
[ ] Transition Report Pursuant to Section 13 of 15(d) of
the Securities Exchange Act of 1934
For the transition period from
[ ] to [ ]
Commission file number 1-5224
I.R.S. Employer Identification Number 06-0548860
THE STANLEY WORKS
(a Connecticut Corporation)
1000 Stanley Drive
New Britain, Connecticut 06053
Telephone: (860) 225-5111
Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months, and (2) has been subject to such
filing requirements for the past 90 days. Yes [ X ] No [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date: shares of the
company's Common Stock ($2.50 par value) were outstanding 44,332,011
as of November 4, 1995.
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
THE STANLEY WORKS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Millions of Dollars)
THIRD QUARTER NINE MONTHS
1995 1994 1995 1994
Net Sales $ 655.7 $ 632.6 $ 1,954.5 $ 1,847.1
Costs and Expenses
Cost of sales 448.0 425.7 1,329.2 1,238.7
Selling, general and
administrative 148.0 139.5 443.9 412.7
Interest - net 7.6 6.9 23.2 22.1
Other - net 3.7 9.1 12.7 26.9
Restructuring 41.5 - 41.5 -
------- ------- -------- --------
648.8 581.2 1,850.5 1,700.4
------- ------- -------- --------
Earnings Before Income Taxes 6.9 51.4 104.0 146.7
Income Taxes 8.6 19.2 45.5 55.2
------- ------- -------- --------
Net Earnings (Loss) $ (1.7)$ 32.2 $ 58.5 $ 91.5
======= ======= ======== ========
Net Earnings (Loss) Per Share
of Common Stock $ (0.04)$ 0.72 $ 1.32 $ 2.04
======= ======= ======== ========
Dividends per share $ 0.36 $ 0.35 $ 1.06 $ 1.03
Average shares outstanding 44,290 44,838 44,359 44,810
(in thousands)
See notes to consolidated financial statements.
-1-
THE STANLEY WORKS AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Millions of Dollars)
September 30 December 31
1995 1994
ASSETS
Current Assets
Cash and cash equivalents $ 48.5 $ 69.3
Accounts and notes receivable 453.4 410.3
Inventories 391.1 369.2
Other current assets 35.6 39.7
------ ------
Total Current Assets 928.6 888.5
Property, Plant and Equipment 1,157.7 1,128.6
Less: accumulated depreciation (614.7) (568.8)
------- -------
543.0 559.8
Goodwill and Other Intangibles 145.8 164.6
Other Assets 83.8 88.2
------- -------
$ 1,701.2 $ 1,701.1
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term borrowings $ 101.1 $ 82.8
Current maturities of long-term debt 11.5 10.9
Accounts payable 98.9 125.3
Accrued expenses 202.9 202.5
------- -------
Total Current Liabilities 414.4 421.5
Long-Term Debt 396.3 387.1
Deferred Income Taxes 4.7 14.4
Other Liabilities 136.1 133.9
Shareholders' Equity
Common Stock 115.4 115.4
Capital in excess of par value 69.2 70.1
Retained earnings 952.2 937.8
Foreign currency translation adjustment (65.7) (56.3)
ESOP Debt (246.7) (253.7)
------- -------
824.4 813.3
Less: cost of Common Stock in treasury 74.7 69.1
------- -------
Total Shareholders' Equity 749.7 744.2
------- -------
$ 1,701.2 $ 1,701.1
======= =======
See notes to consolidated financial statements.
-2-
THE STANLEY WORKS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of Dollars)
THIRD QUARTER NINE MONTHS
1995 1994 1995 1994
Operating Activities
Net Earnings (Loss) $ (1.7)$ 32.2 $ 58.5 $ 91.5
Depreciation and amortization 21.0 19.7 63.7 62.5
Restructuring charges 41.5 - 41.5 -
Other non-cash items 0.5 7.0 13.6 23.5
Changes in operating assets
and liabilities (10.8) (39.1) (101.5) (124.1)
------ ------ ------ ------
Net cash provided by
operating activities 50.5 19.8 75.8 53.4
Investing Activities
Capital expenditures (17.5) (17.5) (44.7) (48.6)
Proceeds from sales of assets .3 1.0 .6 7.4
Business acquisitions (2.3) - (3.3) (5.1)
Other (3.3) (1.9) (12.8) (4.9)
------ ------ ------ ------
Net cash used by
investing activities (22.8) (18.4) (60.2) (51.2)
Financing Activities
Payments on long-term debt (81.9) (1.2) (83.5) (1.9)
Proceeds from long-term borrowings 84.2 - 84.2 -
Net short-term financing (24.2) 17.1 18.3 51.6
Proceeds from issuance of common stock 1.8 2.9 2.7 3.5
Purchase of common stock for treasury (2.3) (1.2) (12.5) (2.0)
Cash dividends on common stock (0.7) (15.7) (46.3) (60.8)
------ ------ ------ ------
Net cash provided (used) by
financing activities (23.1) 1.9 (37.1) (9.6)
Effect of Exchange Rate Changes on Cash (0.9) 1.7 0.7 2.5
------ ------ ------ ------
Increase (decrease) in Cash and
Cash Equivalents 3.7 5.0 (20.8) (4.9)
Cash and Cash Equivalents,
Beginning of Period 44.8 33.8 69.3 43.7
------ ------ ------ ------
Cash and Cash Equivalents,
End of Third Quarter $ 48.5 $ 38.8 $ 48.5 $ 38.8
====== ====== ====== ======
See notes to consolidated financial statements.
-3-
THE STANLEY WORKS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES
IN SHAREHOLDERS' EQUITY
(Millions of Dollars)
NINE MONTHS
1995 1994
Balance at beginning of year $ 744.2 $ 680.9
Net earnings 58.5 91.5
Currency translation adjustment (9.4) 6.1
Cash dividends declared (46.6) (46.2)
Net common stock activity (4.0) 3.7
ESOP debt 7.0 6.3
-------- -------
Balance at end of third quarter $ 749.7 $ 742.3
======== =======
See notes to consolidated financial statements.
-4-
THE STANLEY WORKS AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1995
NOTE A - Basis of Presentation
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with the instructions to Form 10-Q and
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the
opinion of management, all adjustments (consisting of both normal
recurring items and restructuring charges as referenced in Note E)
considered necessary for a fair presentation of the results of operations
for the interim periods have been included. 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 December 31,
1994.
NOTE B - Computation of Earnings Per Share
Earnings per share are based upon the weighted average number of common
shares outstanding. The exercise of outstanding stock options would not
result in a material dilution of earnings per share. (See Exhibit 11)
NOTE C - Inventories
The classification of inventories at the end of the third quarter of 1995
and at year-end 1994, in millions of dollars, is as follows:
September 30 December 31
1995 1994
------ ------
Finished products $ 253.4 $ 238.6
Work in process 73.4 68.4
Raw materials 60.9 59.4
Supplies 3.4 2.8
------ ------
$ 391.1 $ 369.2
====== ======
-5-
NOTE D - Cash Flow Information
Interest paid during the third quarter of 1995 and 1994 amounted to $10.8
million and $10.6 million, respectively. Interest paid for the nine
months of 1995 and 1994 amounted to $24.7 million and $25.2 million,
respectively.
Income taxes paid during the third quarter of 1995 and 1994 were $20.0
million and $29.0 million, respectively. Income taxes paid for the nine
months of 1995 and 1994 were $62.1 million and $71.2 million,
respectively.
NOTE E - Restructuring and Other Charges
The company has announced strategic initiatives designed to improve long-
term growth and profitability and to reach targeted sales of $4.0 billion
by 1999. In order to fuel this growth, management intends to remove $150
million from the company's cost structure by the end of 1997,
approximately half of which is intended to improve bottom line
profitability. In addition, the company plans to improve working capital
productivity and to eliminate individual products or groups of products
that are a drain on performance in order to achieve a $250 million
reduction in assets by 1997. The overall restructuring program
encompasses numerous specific initiatives for each business unit in
various stages of planning.
During the third quarter 1995 restructuring charges and other related
costs totaling $44.1 million were incurred in connection with the initial
phase of the program. These charges reflected the decision to exit
several small underperforming businesses, such as shoe repair and generic
fasteners; to close manufacturing operations related to other non-
performing product lines; and to close three distribution centers as part
of a plan to consolidate order and distribution management and facilities
for North American consumer products. Of the total restructuring charge
of $41.5 million, $27.4 million related to the write-down of facilities
and equipment, inventories and other assets and $3.0 million related to
severance and other termination benefits for 450 employees. In addition,
a strategic reassessment of the businesses affected by the initial phase
of the program resulted in an $11.1 million goodwill write-off as the
projected undiscounted cash flows were not sufficient to recover the
carrying value of the recorded goodwill. Also included in operating
expenses for the third quarter were $2.6 million of charges for
consulting work for planning and implementation of restructuring
activities. Restructuring related charges of $31.5 million, $6.1
million, and $.9 million were included in the Tools, Hardware, and
Specialty Hardware segments, respectively.
Future restructuring charges will result as the various initiatives
currently under consideration are developed and specific operating plans
are designed, approved, and implemented. Charges which can be classified
as exit or restructuring costs will be taken as specific estimates are
reliably determined and as management commits to a specific plan of
action. Other costs related to the restructuring activities will be
recognized when incurred.
-6-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations
Third quarter operating profits together with charges related to the
initial phase of recently announced restructuring plans resulted in a
net loss for the quarter. These actions are expected to establish a more
cost-effective base upon which to grow future sales and profits.
Management believes that the company's ability to return superior value
over the long run is dependent on taking these aggressive actions.
The abrupt downturn in the U.S. consumer and construction markets
experienced in the second quarter continued to dampen sales growth and
profitability in the third quarter. Net sales of $656 million were 4%
higher than the prior year's quarter. Volume growth contributed 2% as a
result of strength in the European markets and the engineered tool
category in the U.S., both of which offset the lackluster sales activity
in U.S. consumer markets. Price increases added 2% to sales.
Gross margins were 31.7% compared with 32.7% reported in the third
quarter last year. Margins continued to be affected by costs associated
with the closure and integration of manufacturing facilities at the
company's Mechanics Tools division. In addition, efforts to control
inventories resulted in the underabsorption of factory overheads. To a
lesser extent, margins were also affected by the competitive pricing
environment in U.S. markets.
Operating expenses were 22.6% up from 22.1% last year. Approximately
$2.6 million of charges for strategic consulting work related to the
company's planning and implementation of restructuring activities were
included in third quarter operating expenses.
Other-net was $3.7 million compared with $9.1 million last year. The
prior year included charges associated with divestiture activity in the
quarter as well as higher foreign currency transaction losses and
environmental expenses.
Restructuring charges of $41.5 million, or $.71 per share, were also
reported as part of third quarter operating results. Included in these
charges were $30.4 million for the closure of four manufacturing plants
and three distribution operations which will ultimately result in a
workforce reduction of about 450 people. Approximately $11.1 million in
charges to reduce the book value of assets associated with underperforming
businesses were also included in the restructuring charge.
The plant closings reflect the company's decision to exit small,
underperforming businesses such as shoe repair equipment and a line of
generic fastening products. The company is also closing a plant
connected with its Home Decor division in France and one associated with
its Hand Tools division in the U.S. These operations have contributed
approximately $30 million in sales on an annual basis.
The establishment in 1994 of the Stanley Customer Support Division to
develop stronger and more efficient relationships with the company's
North American consumer products customers has resulted in the planned
consolidation of order and distribution management and facilities for the
company's consumer businesses. The charges identified above reflect the
-7-
closing of three distribution centers in order to consolidate into a new
and more efficient distribution center that will handle the shipment of
Stanley consumer products. Customer service and credit and collection
activity related to the consumer businesses are also being consolidated
and are included in the charge.
Not included in the third quarter charges are costs associated with a
recently announced reduction of approximately 350 employees in the
salaried workforce. A charge for the related severance will be included
in the fourth quarter.
The restructuring activities announced to date are expected to contribute
a $20 million cost reduction in 1996, and a $35 million reduction in the
company's asset base. Future restructuring charges will result as the
various initiatives currently under consideration are further developed
and approved and the estimated impact can be reliably determined. These
restructuring charges are not quantifiable at this time; however, they
are likely to be material to the company's results of operations.
Management expects restructuring charges to continue at least into 1996.
As the company progresses with its plans, the focus will move toward
growth and expansion, rather than realignment and restructuring.
In addition to restructuring charges the company will also experience
transition costs in 1996 related to the implementation of the initiatives
announced in the third quarter. These costs are not estimated to be
material.
Tax expense of $8.6 million reflected the non-deductibility of costs
included in the restructuring charge. Excluding these items, the
effective tax rate was approximately 38% compared with 37.5% in the prior
year.
As a result of the restructuring charges, a net loss for the quarter of
$1.7 million, or $.04 per share, was reported compared with net earnings
of $32.2 million, or $.72 per share, in the third quarter 1994. Net
sales for the first nine months of 1995 were $2.0 billion, up 6% over
prior year sales of $1.8 billion. Net earnings for the nine month
period, including restructuring charges, were $58.5 million, or $1.32 per
share, compared with $91.5 million, or $2.04 per share, in the prior year
period.
Net sales for the Tools segment in the third quarter were up 4% over the
prior year. Volume and price contributed equally to the increase.
Operating margins, excluding charges related to restructuring, were 10.8%
in the current quarter, compared with margins of 11.5% reported in the
prior year. For the nine months, net sales increased by 6% and operating
margins, excluding restructuring charges, were 11.1%, compared with 11.7%
in the prior year. Operating margins would have been similar to last
year without the effects of Mechanics Tools manufacturing integration
costs.
Net sales in the Hardware segment increased by 2%, almost entirely the
result of price increases. Operating margins declined from 9.7% to 6.4%,
excluding the effects of restructuring, and reflected weakness in the
Canadian and European home decor markets as well as continued weakness in
the U.S. hardware market. Additionally, unrecovered cost increases
experienced in certain raw materials, especially corrugated packaging,
depressed margins. For the nine months, net sales increased by 5% and
operating margins, excluding restructuring charges, were 8.6%, compared
-8-
with 11.6% in the prior year.
Net sales in the Specialty Hardware segment increased 2%, with price and
volume each adding 1%. Operating margins were 9.5%, without
restructuring related charges, comparable to 9.2% reported in the prior
year. For the nine months, net sales increased by 5% and operating
margins, excluding restructuring charges, were 6.1%, compared with 6.7%
in the prior year.
Within the company's geographic regions, net sales in the U.S. increased
by 4%. Volume contributed 3% and price added 1%. Excluding
restructuring charges, operating margins declined to 10.7% from 11.9% in
the prior year. European markets continued to be strong with net sales
increasing 15%, with 7% from volume growth. Price increases added 2% to
sales, currency added 5% and the net effect of recent acquisitions added
1%. European operating margins, excluding restructuring charges, were
10.1%, improved from prior year margins of 8.7%. Net sales in Other
Areas declined 10%, entirely from volume, due to weakness in Canadian,
Mexican and Australian markets. Operating margins, as a result,
decreased to 6.2% from 8.6%.
While the company would like to be encouraged by the recent rebound in
U.S. housing starts and sales of existing homes, consumer activity at
retail remains weak compared with last year. The company continues to
see internal growth from its European businesses coupled with positive
translation from stronger European currencies. However, significant
weakness remains in its Canadian, Mexican and Australian markets with no
appreciable improvement in sight. These trends may continue for the next
three to six months. The company recognized these developments in the
second quarter and has been taking the actions necessary to reduce costs
and control inventories.
Liquidity and Sources of Capital
Cash flow from operations was $75.8 million for the first nine months, up
from $53.4 million for the prior year. Prior year cash flows reflects
the increased working capital levels necessary in the prior year to fund
internal sales growth.
In the third quarter 1995, the company borrowed $39.5 million under an
agreement that bears interest at a variable rate (5.9% as of September
30, 1995) and has a final maturity of 2005. The company also issued
$44.7 million of commercial paper classified as non-current. The
proceeds from these borrowings were used to pay $81.3 million of Dutch
guilder denominated debt due in 1996.
Cash outlays of approximately $7.0 million associated with the company's
third quarter restructuring activities are expected to be substantially
complete by 1997 and funded with operating cash flows. The company
anticipates that its operating cash flow and borrowing capacity will
enable it to fund its growth and restructuring initiatives, capital
expenditures, and dividends. As a result, the restructuring activities
announced this quarter and expected to be announced in the future will
not have a material affect on liquidity.
Capital expenditures for the year are forecast at approximately $70
million.
-9-
THE STANLEY WORKS AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Millions of Dollars)
THIRD QUARTER NINE MONTHS
1995 1994 1995 1994
INDUSTRY SEGMENTS
Net Sales
Tools
Consumer $ 181.9 $ 177.5 $ 538.7 $ 519.3
Industrial 131.4 129.4 415.5 389.4
Engineered 170.9 158.2 510.3 472.7
-------- -------- -------- --------
Total Tools 484.2 465.1 1,464.5 1,381.4
Hardware 81.1 79.3 247.5 235.6
Specialty Hardware 90.4 88.2 242.5 230.1
-------- -------- -------- --------
Consolidated $ 655.7 $ 632.6 $ 1,954.5 $ 1,847.1
======== ======== ======== ========
Operating Profit
Tools $ 20.7 $ 53.6 $ 131.6 $ 161.3
Hardware (0.9) 7.7 15.3 27.4
Specialty Hardware 7.7 8.1 13.8 15.4
-------- -------- -------- --------
Total 27.5 69.4 160.7 204.1
Net corporate expenses (11.8) (10.6) (29.7) (32.3)
Interest expense (8.8) (7.4) (27.0) (25.1)
-------- -------- -------- --------
Earnings before
income taxes $ 6.9 $ 51.4 $ 104.0 $ 146.7
======== ======== ======== ========
GEOGRAPHIC AREAS
Net Sales
United States $ 472.6 $ 452.9 $ 1,393.2 $ 1,330.4
Europe 100.3 87.4 312.6 261.8
Other Areas 82.8 92.3 248.7 254.9
-------- -------- -------- --------
Consolidated $ 655.7 $ 632.6 $ 1,954.5 $ 1,847.1
======== ======== ======== ========
Operating Profit
United States $ 19.1 $ 53.9 $ 116.3 $ 156.1
Europe 3.3 7.6 27.4 25.3
Other Areas 5.1 7.9 17.0 22.7
-------- -------- -------- --------
Total $ 27.5 $ 69.4 $ 160.7 $ 204.1
======== ======== ======== ========
See notes to consolidated financial statements.
-10-
PART II - OTHER INFORMATION
Item 6. - Exhibits and Reports on Form 8-K
(a) Exhibits
(1) See Exhibit Index on page 12
(b) Reports on Form 8-K.
(1) Registrant filed a Current Report on Form 8-K, dated July
19, 1995, in respect of the Registrant's press releases reporting on the
following:
(i) Second quarter sales and earnings
(ii) Initiatives for profitable growth
(2) Registrant filed a Current Report on Form 8-K, dated
September 18, 1995, in respect of the Registrant's press release
announcing the election of Paul W. Russo as Vice President Strategy and
Development.
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.
THE STANLEY WORKS
Date: November 14, 1995 By: Richard Huck
Richard Huck
Vice President, Finance
and Chief Financial Officer
Date: November 14, 1995 By: Theresa F. Yerkes
Theresa F. Yerkes
Vice President and
Controller (Chief Accounting
Officer)
-11-
EXHIBIT INDEX
(11) Statement re computation of earnings per share
(12) Statement re computation of ratio of earnings to fixed charges
(27) Financial Data Schedule
-12-
Exhibit 11
THE STANLEY WORKS AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In thousands, except per share amounts)
THIRD QUARTER ENDED NINE MONTHS ENDED
SEPT 30 OCT 1 SEPT 30 OCT 1
1995 1994 1995 1994
Earnings (Loss) per common share:
Weighted average shares outstanding 44,290 44,838 44,359 44,810
====== ====== ====== ======
Net earnings (loss) ($1,713) $32,153 $58,473 $91,483
======= ======= ======= =======
Per share amounts ($0.04) $0.72 $1.32 $2.04
====== ===== ===== =====
PRIMARY:
Weighted average shares outstanding 44,290 44,838 44,359 44,810
Dilutive common stock equivalents -
based on the treasury stock method
using average market price 526 557 494 580
------ ------ ------ ------
44,816 45,395 44,853 45,390
====== ====== ====== ======
Per share amounts ($0.04) $0.71 $1.30 $2.02
====== ====== ====== ======
FULLY DILUTED:
Weighted average shares outstanding 44,290 44,838 44,359 44,810
Dilutive common stock equivalents -
based on the treasury stock method
using the quarter end market price
if higher than average market price 588 557 515 585
------ ------ ------ ------
44,878 45,395 44,874 45,395
====== ====== ====== ======
Per share amounts ($0.04) $0.71 $1.30 $2.02
====== ====== ====== ======
Note: This calculation is submitted in accordance with Regulation S-K
item 601(b)(11) although not required by footnote 2 to paragraph 14
of APB Opinion No. 15 because it results in dilution of less than 3%.
Exhibit 12
THE STANLEY WORKS AND SUBSIDIARIES
COMPUTATION OF EARNINGS TO FIXED CHARGES
(in Millions of Dollars)
THIRD QUARTER NINE MONTHS
1995 1994 1995 1994
Earnings before income taxes $6.9 $51.4 $104.0 $146.7
Add:
Portion of rents representative of
interest factor 3.2 2.9 9.8 8.7
Interest expense 8.5 7.3 26.5 24.7
Amortization of expense on
long-term debt 0.1 0.2 0.1
Amortization of capitalized interest 0.2 0.2
----- ----- ----- -----
Income as adjusted $18.7 $61.6 $140.7 $180.4
===== ===== ===== =====
Fixed charges:
Interest expense $8.5 $7.3 $26.5 $24.7
Amortization of expense on
long-term debt 0.1 0.2 0.1
Portion of rents representative of
interest factor 3.2 2.9 9.8 8.7
----- ----- ----- -----
Fixed charges $11.8 $10.2 $36.5 $33.5
===== ===== ===== =====
Ratio of earnings to fixed charges 1.58 6.04 3.85 5.39
===== ===== ===== =====
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from The
Stanley Works and Subsidiaries Consolidated Balance Sheets and Statements
of Earnings and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-30-1995
<PERIOD-END> SEP-30-1995
<CASH> 48,500
<SECURITIES> 0
<RECEIVABLES> 453,400
<ALLOWANCES> 0
<INVENTORY> 391,100
<CURRENT-ASSETS> 928,600
<PP&E> 1,157,700
<DEPRECIATION> 614,700
<TOTAL-ASSETS> 1,701,200
<CURRENT-LIABILITIES> 414,400
<BONDS> 396,300
<COMMON> 115,400
0
0
<OTHER-SE> 634,300
<TOTAL-LIABILITY-AND-EQUITY> 1,701,200
<SALES> 1,954,500
<TOTAL-REVENUES> 1,954,500
<CGS> 1,329,200
<TOTAL-COSTS> 1,329,200
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 23,200
<INCOME-PRETAX> 104,000
<INCOME-TAX> 45,500
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 58,500
<EPS-PRIMARY> 1.32
<EPS-DILUTED> 0
</TABLE>
