SECURITIES & EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 11-K
(MARK ONE)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from _______________ to _______________
Commission File number 0-8493
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
STEWART & STEVENSON 401(k) SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive offices:
STEWART & STEVENSON SERVICES, INC.
2707 NORTH LOOP WEST
HOUSTON, TEXAS 77008
FINANCIAL STATEMENTS
In accordance with Item 4 of the Required Information for Form 11-K, the
following statements of financial condition for the Stewart & Stevenson 401(k)
Savings Plan have been prepared in accordance with the financial reporting
requirements of the Employee Retirement Income Security Act of 1974, as amended,
and the regulations promulgated thereunder.
INDEX TO THE FINANCIAL STATEMENTS AND SCHEDULE
Report of Independent Public Accountants
Item 1. Statement of Net Assets Available for Benefits as of December 31, 1995
and 1994.
Item 2. Statement of Changes in Net Assets Available for Benefits for the Years
Ended December 31, 1995 and 1994
Notes to Financial Statements
Schedule I - Item 27a - Schedule of Assets Held for Investment Purposes as of
December 31, 1995
Schedule II - Item 27d - Schedule of Reportable Transactions for the Year Ended
December 31, 1995
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Administrative Committee of the
Stewart & Stevenson 401(k) Savings Plan:
We have audited the accompanying statements of net assets available for benefits
of the Stewart & Stevenson 401(k) Savings Plan as of December 31, 1995 and 1994,
and the related statements of changes in net assets available for benefits for
the years then ended. These financial statements and the schedules referred to
below are the responsibility of the Plan's administrator. Our responsibility is
to express an opinion on these financial statements and schedules based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Stewart &
Stevenson 401(k) Savings Plan as of December 31, 1995 and 1994, and the changes
in its net assets available for benefits for the years then ended in conformity
with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes as of December 31, 1995, and reportable transactions for
the year ended December 31, 1995, are presented for purposes of additional
analysis and are not a required part of the basic financial statements but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedules have been subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/ Arthur Anderson, LLP
Houston, Texas
June 21, 1996
STEWART & STEVENSON 401(k) SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1995 AND 1994
<TABLE>
<CAPTION>
<S> <C> <C>
1995 1994
------------- -------
ASSETS:
Investments, at fair value (Schedule I)-
Common stock of Stewart & Stevenson Services, Inc. $ 778,559 $ 326,391
Mutual funds 8,358,175 2,187,852
Money market funds 1,193,546 232,640
Participant loans 286,595 29,048
-------------- ------------
10,616,875 2,775,931
Receivables-
Employer contributions 15,487 10,200
Participant contributions 83,145 56,456
-------------- ------------
98,632 66,656
-------------- ----------
Total assets 10,715,507 2,842,587
LIABILITIES:
Other 145,108 264,914
- -------------- ------------ -------------- ----------
145,108 264,914
-------------- ----------
NET ASSETS AVAILABLE FOR BENEFITS $ 10,570,399 $ 2,577,673
============= ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
STEWART & STEVENSON 401(k) SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994
<TABLE>
<CAPTION>
<S> <C> <C>
1995 1994
----------- --------
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income-
Dividends $ 570,242 $ 50,679
Interest 11,340 22,110
Realized gain on sale of investments, net 67,565 -
Unrealized appreciation in fair value of investments, net 449,926 -
-------------- -------
Total investment income 1,099,073 72,789
Contributions-
Employer 775,269 430,702
Participant 4,022,402 2,335,457
Participant rollovers 2,490,403 160,357
-------------- ------------
Total contributions 7,288,074 2,926,516
-------------- ------------
Total additions 8,387,147 2,999,305
-------------- ------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Distributions to participants 381,017 293,827
Withdrawals 13,404 3,551
Realized loss on sale of investments, net - 4,034
Unrealized depreciation in fair value of investments, net - 120,220
-------------- ------------
Total deductions 394,421 421,632
-------------- ------------
NET INCREASE 7,992,726 2,577,673
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 2,577,673 -
-------------- -----------
End of year $ 10,570,399 $ 2,577,673
============= ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
STEWART & STEVENSON 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF THE PLAN:
General
The Stewart & Stevenson 401(k) Savings Plan (the Plan), adopted effective
January 1, 1994, is a trusted, defined contribution plan established for the
benefit of all eligible employees of Stewart & Stevenson Services, Inc., and its
subsidiaries, C. Jim Stewart & Stevenson, Inc., Stewart & Stevenson Power, Inc.,
Stewart & Stevenson Operations, Inc., Stewart & Stevenson Transportation, Inc.,
Stewart & Stevenson International, Inc., Stewart & Stevenson Technical Services,
Inc., and Pow-R-Quik Limited. These entities are collectively referred to as
"the Company."
Effective September 1, 1994, and November 19, 1994, respectively, the Plan has
been amended to include all eligible employees of Creole International, Inc.,
and Power Application & Mfg. Co.
The following description of the Plan provides a summary of the Plan.
Participants should refer to the Plan document for a more complete description
of the Plan's provisions.
Basis of Accounting
The financial statements of the Plan have been prepared on the accrual basis of
accounting.
Use of Estimates and Assumptions
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Reclassifications
The accompanying financial statements for 1994 contain certain reclassifications
to conform with the presentation used in 1995.
Plan Administration
The Plan is administered by a committee (the Administrative Committee) which is
appointed by the board of directors of Stewart & Stevenson Services, Inc. This
committee is empowered to act on all matters affecting the Plan including, among
other things, interpreting the Plan's provisions, determining the eligibility of
employees to become participants in the Plan, selecting the funds to be made
available in the Plan and determining any person's right to a benefit under the
Plan. The Administrative Committee members do not receive compensation for
services rendered to the Plan.
Custodial safekeeping of Plan assets is performed by Merrill Lynch Trust Company
(the Trustee). Individual participant record keeping is performed under Merrill
Lynch, Pierce, Fenner & Smith Incorporated (the Recordkeeper). Among other
duties, the Trustee is to receive contributions, collect the income from the
Plan's assets and make disbursements from the Plan's assets as directed by the
administrative committee. The Recordkeeper's duties include processing and
maintaining participant data, participant statements, and contributions and
distributions for purposes of record keeping.
Participation
Employee participation in the Plan is voluntary. All employees who are at least
21 years of age are eligible to participate in the Plan after completion of one
year of service during which 1,000 or more hours are worked.
Investments
The following details the investment options available to each Plan participant:
Fund 1 Merrill Lynch Global Allocation Fund, Inc., Class A (ML Global)
Fund 2 Merrill Lynch Corporate Bond Fund, Inc., Intermediate Term,
Class A (ML Corporate)
Fund 3 Merrill Lynch Retirement Preservation Trust (ML Retirement)
Fund 4 AIM Value Fund (AIM)
Fund 5 American Balanced Fund (American)
Fund 6 Stewart & Stevenson Services, Inc., Common Stock (S&S Services)
The Plan's investments are recorded at cost when purchased but are adjusted to
market value based upon published data, by the Trustee, for financial reporting
purposes. The net change in the difference between market value of the
investments on hand at December 31, 1995, and the market value of the
investments on hand as of the beginning of the year, is included as unrealized
appreciation (depreciation) of investments in the statement of changes in net
assets available for benefits. Realized gains or losses on the sale of
investments and withdrawals of investments are based on the value of the assets
as of the beginning of the year or the time of purchase during the year, if
later.
Contributions
Participants may elect to contribute 1 percent to 15 percent of their wages as
reported to the Internal Revenue Service, subject to certain limitations, as
defined, in any or all six funds. Contributions from employees are recorded in
the period in which the Company makes payroll deductions from Plan participants.
The matching employer contribution is 25 percent of the first 6 percent of the
participant's contribution. Matching contributions from the Company are recorded
in the same period as the corresponding employee contributions. Participant and
employer contributions are remitted by the employer to the Trustee every two
weeks and are credited directly to the participants' employee accounts by the
Recordkeeper. Participants may also make rollover contributions to the Plan
representing distributions from other qualified defined benefit or contribution
plans. Participants can change the allocation of their contributions in these
six funds or they can discontinue, increase or decrease their contribution rate
within the 1 percent to 15 percent range as permitted by the Plan. All changes
are performed over an automated benefits system.
Participants' Benefits
Participants are fully vested in their participant contributions, rollovers and
earnings thereon at all times. Participants shall have a 100 percent vested
interest in their employer contributions upon attaining age 65, the normal
retirement age according to the Plan. Those participants who terminate prior to
normal retirement age are entitled to a benefit pursuant to the value of their
vested interests in their accounts as follows:
Vested
Years of Vesting Service Interest
Less than 3 0%
3 20
4 40
5 60
6 80
7 or more 100
Forfeited employer contributions are applied as a reduction of future employer
matching contributions but will be restored to the participants who previously
forfeited the contribution upon reemployment within five years of termination.
The Company anticipates and believes that the Plan will continue without
interruption but reserves the right to terminate the Plan. In the event of
termination, the assets of the Plan, less expenses of liquidation, will be
allocated to the participants in accordance with the terms of the Plan.
Withdrawals and Loans
Participant benefits are payable to participants or to a designated beneficiary
in the event of their retirement, death or termination of employment. In limited
circumstances, account withdrawals may be made for financial hardship in
accordance with the Plan.
Benefit payments to withdrawing employees are made in lump-sum payments. As of
December 31, 1995, the amount payable to persons who have withdrawn from the
Plan was $397,504.
A participant may borrow from his account up to a maximum equal to the lesser of
$50,000 or 50 percent of his vested account balance. Loan transactions are
treated as a transfer to (from) the investment fund from (to) the participant
loan fund. The minimum loan is $1,000 and will bear interest at a rate of prime
plus 1 percent. Outstanding loans currently bear interest rates from 7 percent
to 10 percent. The loans shall not exceed five years, except for loans for the
purpose of acquiring a principal residence. The loans are secured by the balance
in the participant's account. Principal and interest are paid ratably through
monthly payroll deductions.
Recognition of Income and Expenses
Interest income is reported daily on an accrual basis. Plan income or loss is
allocated to the participants daily in the ratio that each participant's account
balance bears to all account balances. Although not required by the Plan, all
administrative expenses relating to the Plan have been paid by the Company.
2. FEDERAL INCOME TAXES:
The Plan obtained its latest determination letter on September 3, 1994, in which
the Internal Revenue Service stated that the Plan, as originally established,
was in compliance with the applicable requirements of the Internal Revenue Code
(the Code). Although the Plan has been amended since receiving the determination
letter, the Administrative Committee believes that the Plan is currently
designed and being operated in compliance with the applicable requirements of
the Code. Therefore, the Administrative Committee believes that the Plan is
qualified and is tax-exempt as of December 31, 1995 and 1994.
3. ALLOCATION TO INVESTMENT PROGRAMS:
The following statements reflect the allocation of net assets available for
benefits and changes in net assets available for benefits to the separate
investment funds as of and for the years ended December 31, 1995 and 1994:
Statement of Net Assets Available for Benefits by Investment Program
December 31, 1995
<TABLE>
<CAPTION>
Part. Undis.
Fund 1 Fund 2 Fund 3 Fund 4 Fund 5 Fund 6 Loan Liab. Total
------ ------- ------- ------ ----- ------ ------- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets-
Investments, at fair value-
Common stock $ - $ - $ - $ - $ - $778,559 $ - - $778,559
Mutual funds 2,536,522 650,802 - 3,692,840 1,478,011 - - - 8,358,175
Money market fund - - 1,193,546 - - - - - 1,193,546
Participant loans - - - - - - 286,595 - 286,595
---------- -------- --------- --------- --------- ------- -------- ------ -----------
2,536,522 650,802 1,193,546 3,692,840 1,478,011 778,559 286,595 - 10,616,875
Receivables-
Employer contributions 3,844 1,212 2,038 5,196 1,925 1,272 - - 15,487
Participant contributions 19,753 5,948 10,191 27,764 9,773 9,716 - - 83,145
---------- -------- -------- -------- -------- ------- ------- ------ -----------
23,597 7,160 12,229 32,960 11,698 10,988 - - 98,632
----------- -------- ---------- --------- ---------- ------- ------- ------- ----------
Total assets 2,560,119 657,962 1,205,775 3,725,800 1,489,709 789,547 286,595 - 10,715,507
Liabilities-
Other - - - - - - - 145,108 145,108
---------- -------- --------- -------- --------- ------ -------- --------- -----------
- - - - - - - 145,108 145,108
---------- -------- --------- -------- --------- ------ -------- ---------- -----------
Net assets available for $2,560,119 $657,962 $1,205,775 $3,725,800 $1,489,709 $789,547 $286,595 $(145,108) $10,570,399
benefits ========== ======== ========== ========== ========== ========= ========= ========= ===========
</TABLE>
Statement of Net Assets Available for Benefits by Investment Program
December 31, 1994
<TABLE>
<CAPTION>
Part.
Fund 1 Fund 2 Fund 3 Fund 4 Fund 5 Fund 6 Loan Total
------- ------ ------ ------ ------ ------ ---- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets-
Investments, at fair value-
Common stock $ - $ - $ - $ - $ - $326,391 $ - $ 326,391
Mutual funds 771,631 180,578 - - - - - 952,209
Money market fund - - 232,640 - - - - 232,640
Other investments - - - 944,940 290,703 - - 1,235,643
Participant loans - - - - - - 29,048 29,048
-------- -------- -------- -------- -------- -------- ------- ----------
771,631 180,578 232,640 944,940 290,703 326,391 29,048 2,775,931
Receivables-
Employer contributions 2,840 650 1,198 3,175 1,170 1,167 - 10,200
Participant contributions 15,819 3,304 6,634 17,837 6,126 6,736 - 56,456
--------- -------- ------- -------- ------- -------- -------- ---------
18,659 3,954 7,832 21,012 7,296 7,903 - 66,656
--------- --------- ------- -------- ------- -------- -------- ---------
Total assets 790,290 184,532 240,472 965,952 297,999 334,294 29,048 2,842,587
Liabilities-
Other 78,192 18,445 11,043 109,859 24,417 22,958 - 264,914
-------- --------- -------- -------- ------- ------- -------- ---------
Net assets available for $712,098 $166,087 $229,429 $856,093 $273,582 $311,336 $29,048 $2,577,673
benefits ======== ======== ======== ======== ======== ======== ======== ==========
</TABLE>
Statement of Changes in Net Assets Available for Benefits by Investment Program
For the Year Ended December 31, 1995
<TABLE>
<CAPTION>
Part. Undis
Fund 1 Fund 2 Fund 3 Fund 4 Fund 5 Fund 6 Loan Liab Total
------ ------ ------ ------ ------ ------- ----- ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to-
Investment income-
Dividends $196,275 $27,395 $45,506 $ 210,246 $ 85,946 $4,874 $ - $ - $570,242
Interest 2,612 746 1,952 3,390 1,676 964 - - 11,340
Realized gain (loss) on
sale of investments 17,606 2,549 - 43,079 13,963 (9,632) - - 67,565
Unrealized appreciation
(depreciation) in fair
value of investments 145,154 31,821 - 359,324 109,289 (195,662) - - 449,926
-------- ------- --------- ------- --------- --------- --------- -------- -----------
Total investment income 361,647 62,511 47,458 616,039 210,874 (199,456) - - 1,099,073
Contributions-
Employer 185,889 58,835 98,835 251,926 93,336 86,448 - - 775,269
Participant 953,197 288,481 493,326 1,344,174 473,326 469,898 - - 4,022,402
Participant rollovers 569,328 130,368 441,991 716,646 576,178 55,892 - - 2,490,403
-------- ------- ---------- --------- --------- -------- --------- -------- -----------
Total contributions 1,708,414 477,684 1,034,152 2,312,746 1,142,840 612,238 - - 7,288,074
--------- ------- ---------- --------- --------- -------- --------- -------- -----------
Total additions 2,070,061 540,195 1,081,610 2,928,785 1,353,714 412,782 - - 8,387,147
--------- ------- ---------- --------- --------- -------- --------- -------- -----------
Deductions from net assets
attributed to-
Distributions to participants 34,358 12,113 38,180 63,013 74,497 25,141 2,011 131,704 381,017
Withdrawals - - - - - - - 13,404 13,404
Loan activity, net 48,082 20,262 55,022 71,413 47,283 17,496 (259,558) - -
Interfund transfers, net 139,600 15,945 12,062 (75,348) 15,807 (108,066) - - -
--------- ------- ---------- ---------- --------- --------- -------- --------- -----------
Total deductions 222,040 48,320 105,264 59,078 137,587 (65,429) (257,547) 145,108 394,421
--------- ------- ---------- ---------- --------- ---------- -------- --------- -----------
Net increase (decrease) 1,848,021 491,875 976,346 2,869,707 1,216,127 478,211 257,547 (145,108) 7,992,726
Net assets available
for benefits-
Beginning of year 712,098 166,087 229,429 856,093 273,582 311,336 29,048 - 2,577,673
--------- ------- ---------- ---------- --------- -------- -------- --------- -----------
End of year $2,560,119 $657,962 $1,205,775 $3,725,800 $1,489,709 $789,547 $286,595 $(145,108) $10,570,399
========== ======== ========== ========== ========= ======== ======== ========== ===========
</TABLE>
Statement of Changes in Net Assets Available for Benefits by Investment Program
For the Year Ended December 31, 1994
<TABLE>
<CAPTION>
Part.
Fund 1 Fund 2 Fund 3 Fund 4 Fund 5 Fund 6 Loan Total
------ ------ ------ ------ ------ ------ ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to-
Investment income-
Dividends $ 37,936 $ 6,846 $ 5,024 $ - $ - $ 873 $ - $ 50,679
Interest 508 11 - 14,487 7,088 16 - 22,110
-------- -------- -------- -------- -------- -------- -------- ----------
Total investment income 38,444 6,857 5,024 14,487 7,088 889 - 72,789
Contributions-
Employer 128,106 32,189 32,923 141,696 44,997 50,791 - 430,702
Participant 688,997 172,214 180,931 769,898 237,244 286,173 - 2,335,457
Participant rollovers 29,833 5,837 24,413 60,174 27,206 12,894 - 160,357
-------- -------- -------- -------- -------- -------- -------- ----------
Total contributions 846,936 210,240 238,267 971,768 309,447 349,858 - 2,926,516
-------- -------- -------- -------- -------- -------- -------- ----------
Total additions 885,380 217,097 243,291 986,255 316,535 350,747 - 2,999,305
-------- -------- -------- -------- --------- -------- -------- ----------
Deductions from net assets
attributed to-
Distributions to participants 85,016 22,867 21,876 113,019 26,026 25,023 - 293,827
Withdrawals - 1,086 101 944 79 1,341 - 3,551
Realized (gain) loss on
sale of investments 1,215 1,167 - (13) 130 1,535 - 4,034
Unrealized depreciation
in fair value of 58,780 6,492 - 8,401 3,536 43,011 - 120,220
investments
Loan activity, net 7,796 1,707 2,415 10,988 3,780 2,362 (29,048) -
Interfund transfers, net 20,475 17,691 (10,530) (3,177) 9,402 (33,861) - -
-------- -------- -------- -------- -------- -------- -------- ----------
Total deductions 173,282 51,010 13,862 130,162 42,953 39,411 (29,048) 421,632
-------- -------- -------- -------- -------- -------- -------- ----------
Net increase (decrease) 712,098 166,087 229,429 856,093 273,582 311,336 29,048 2,577,673
Net assets available for benefits-
Beginning of year - - - - - - - -
-------- -------- -------- -------- -------- -------- -------- ----------
End of year $712,098 $166,087 $229,429 $856,093 $273,582 $311,336 $ 29,048 $2,577,673
======== ======== ======== ======== ======== ======== ======== ==========
</TABLE>
SCHEDULE I
STEWART & STEVENSON 401(k) SAVINGS PLAN
ITEM 27(a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Number of
Shares or
Principal Current
Identity of Issue Description Amount Cost Value
----------------- ----------- --------- ---- -------
<S> <C> <C> <C>
Merrill Lynch Trust Company* Merrill Lynch Global
Allocation Fund, Inc.,
Class A 182,747 $ 2,436,997 $ 2,536,522
Merrill Lynch Trust Company* Merrill Lynch Corporate Bond
Fund, Inc., Intermediate
Term, Class A
55,153 623,888 650,802
Merrill Lynch Trust Company* Merrill Lynch Retirement
Preservation Trust 1,193,546 1,193,546 1,193,546
AIM Family of Funds AIM Value Fund 137,741 3,340,554 3,692,840
American Funds Group American Balanced Fund 104,453 1,369,807 1,478,011
Stewart & Stevenson Services,
Inc.* Common stock 30,834 1,010,228 778,559
Stewart & Stevenson 401(k) Savings Participant loans (interest
Plan* rates ranging from 7% to
10%)* 286,595 286,595 286,595
------------ --------------
Total assets held for investment purposes $10,261,615 $ 10,616,875
=========== =============
</TABLE>
* Identified party in interest.
The foregoing notes to the financial statements are an integral part of this
schedule.
SCHEDULE II
STEWART & STEVENSON 401(k) SAVINGS PLAN
ITEM 27(d) - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
Value of
Number Asset on
Identity of of Purchase Selling Cost of Transaction Gain
Party Involved Description Trans. Price** Price** Asset Date (Loss)
- -------------- ----------- ------ ---------- ------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Merrill Lynch
Trust Company* Merrill Lynch Global
Allocation Fund, Inc., 164 $1,939,699 $ - $1,939,699 $1,939,699 $ -
Merrill Lynch Class A
Trust Company* Merrill Lynch Global
Allocation Fund, Inc., 141 - 337,568 333,113 337,568 4,455
Merrill Lynch Class A
Trust Company* Merrill Lynch Corporate
Bond Fund, Inc., Interm. 146 511,189 - 511,189 511,189 -
Merrill Lynch Term, Class A
Trust Company* Merrill Lynch Corporate
Bond Fund, Inc., Interm. 82 - 75,335 74,371 75,335 964
Term, Class A
Merrill Lynch
Trust Company* Merrill Lynch Retirement
Preservation Trust 233 1,195,936 - 1,195,936 1,195,936 -
Merrill Lynch
Trust Company* Merrill Lynch Retirement
Preservation Trust 105 - 235,030 235,030 235,030 -
AIM Family of Funds AIM Value Fund 226 2,701,169 - 2,701,169 2,701,169 -
AIM Family of Funds AIM Value Fund 124 - 355,672 313,956 355,672 41,716
American Funds Group American Balanced Fund 182 1,271,489 - 1,271,489 1,271,489 -
American Funds Group American Balanced Fund 93 - 207,433 195,921 207,433 11,512
Stewart & Stevenson
Services, Inc.* Common stock 186 793,805 - 793,805 793,805 -
Stewart & Stevenson
Services, Inc.* Common stock 73 - 136,343 152,979 136,343 (16,636)
</TABLE>
* Identified party in interest.
** Amounts are net of purchase/selling expenses.
NOTE: This schedule presents all reportable transactions of the Plan for the
year ended December 31, 1995.
The foregoing notes to the financial statements are an integral part of
this schedule.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Stewart & Stevenson 401(k) Savings Plan Administrative Committee which
administers the Stewart & Stevenson 401(k) Savings Plan has duly caused this
annual report to be signed on its behalf by the undersigned thereunto duly
authorized in the City of Houston and the State of Texas, on the 27th day of
June, 1996.
Stewart & Stevenson 401(k) Savings Plan
Administrative Committee
/s/ Robert L. Hargrave /s/ Jack T. Currie
_________________________ _________________________
Robert L. Hargrave Jack T. Currie
Member Member
/s/ Donald E. Stevenson /s/ David R. Stewart
_________________________ _________________________
Donald E. Stevenson David R. Stewart
Member Member
/s/ J. Carsey Manning
_________________________ ________________________
J. Carsey Manning Bob H. O'Neal
Member Member
EXHIBIT 23.1
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference of our report dated June 21, 1996 on the financial statements and
schedules of Stewart & Stevenson 401(K) Savings Plan as of and for the year
ended December 31, 1995, included in this Form 11-K, into the previously filed
Stewart & Stevenson Services, Inc. Form S-8 Registration Statement file
No. 33-52903.
/s/ Arthur Andersen, LLP
Houston, Texas
June 26, 1996
