<PAGE> 1
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 31, 1996
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 0-4776
STURM, RUGER & COMPANY, INC.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 06-0633559
- ------------------------------- ------------------
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
Lacey Place, Southport, Connecticut 06490
- ----------------------------------------- -------------
(Address of principal executive offices) (Zip code)
(203) 259-7843
--------------
(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. Yes X No
--- ---
The number of shares outstanding of the issuer's common stock as of
April 30, 1996: Common Stock, $1 par value - 13,455,400.
Page 1 of 14
<PAGE> 2
INDEX
STURM, RUGER & COMPANY, INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION PAGE NO.
<S> <C>
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets--March 31, 1996 and
December 31, 1995 3
Condensed consolidated statements of income--Three months
ended March 31, 1996 and 1995 4
Condensed consolidated statements of cash flows--Three months
ended March 31, 1996 and 1995 5
Notes to condensed consolidated financial statements--March
31, 1996 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 6. Exhibit and Reports on Form 8-K 13
SIGNATURES 14
</TABLE>
- 2 -
<PAGE> 3
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
STURM, RUGER & COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per-share data)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
----------- ------------
(unaudited) (Note)
ASSETS
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 4,846 $ 3,633
Short-term investments 49,030 43,477
Trade receivables, less allowances
for doubtful accounts ($981) and
discounts ($590 and $871) 25,150 19,864
Inventories:
Finished products 6,815 6,039
Materials and products in process 35,252 36,253
-------- --------
42,067 42,292
Deferred income taxes 7,737 7,231
Prepaid expenses and other assets 843 1,044
-------- --------
TOTAL CURRENT ASSETS 129,673 117,541
PROPERTY, PLANT AND EQUIPMENT 112,742 110,872
Less allowances for depreciation 68,700 66,742
-------- --------
44,042 44,130
DEFERRED INCOME TAXES 4,530 4,338
INVESTMENT IN JOINT VENTURE 3,506 1,645
OTHER ASSETS 10,879 10,898
-------- --------
$192,630 $178,552
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable and accrued expenses $ 5,072 $ 3,993
Product safety modifications 1,397 1,439
Product liability 3,000 3,000
Employee compensation 8,745 7,888
Workers' compensation 6,665 6,262
Income taxes 8,585 3,017
-------- --------
TOTAL CURRENT LIABILITIES 33,464 25,599
PRODUCT LIABILITY ACCRUAL 19,699 19,218
CONTINGENT LIABILITIES--Note 6 -- --
STOCKHOLDERS' EQUITY
Common Stock, non-voting, par value $1:
Authorized shares 50,000; none issued
Common Stock, par value $1: Authorized shares -
20,000,000; issued and outstanding 13,455,400 13,455 13,455
Additional paid-in capital 2,380 2,380
Retained earnings 123,632 117,900
-------- --------
139,467 133,735
-------- --------
$192,630 $178,552
======== ========
</TABLE>
Note: The balance sheet at December 31, 1995 has been derived from the
audited financial statements at that date 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.
- 3 -
<PAGE> 4
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per-share data)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1996 1995
-----------------------
<S> <C> <C>
Firearms Sales $47,560 $43,505
Castings Sales 17,997 6,798
------- -------
Net sales 65,557 50,303
Cost of products sold 43,089 32,676
------- -------
22,468 17,627
Expenses:
Selling 3,166 3,009
General and administrative 1,554 1,089
------- -------
4,720 4,098
------- -------
17,748 13,529
Other income-net, principally interest 775 808
------- -------
INCOME BEFORE INCOME TAXES 18,523 14,337
Income taxes 7,409 5,778
------- -------
NET INCOME $11,114 $ 8,559
======= =======
Net income per share $ 0.83 $ 0.64
======= =======
Cash dividends per share $ 0.40 $ 0.35
======= =======
</TABLE>
See notes to condensed consolidated financial statements.
- 4 -
<PAGE> 5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1996 1995
----------------------------
<S> <C> <C>
CASH PROVIDED BY OPERATING ACTIVITIES $ 15,879 $ 9,738
INVESTING ACTIVITIES
Property, plant and equipment additions (1,870) (4,905)
Purchases of short-term investments (41,372) (44,281)
Proceeds from sales or maturities of
short-term investments 35,819 41,124
Investment in joint venture (1,861) --
-------- --------
Cash used by investing activities (9,284) (8,062)
-------- --------
FINANCING ACTIVITIES
Dividends paid (5,382) (4,709)
-------- --------
Cash used by financing activities (5,382) (4,709)
-------- --------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,213 (3,033)
Cash and cash equivalents at beginning of period 3,633 7,719
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 4,846 $ 4,686
======== ========
</TABLE>
See notes to condensed consolidated financial statements.
- 5 -
<PAGE> 6
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
March 31, 1996
NOTE 1--BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information and the instructions to Form 10-Q and Article
10 of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
In the opinion of management, the accompanying unaudited condensed
consolidated financial statements include all adjustments, consisting of normal
recurring accruals, considered necessary for a fair presentation of the results
of the interim periods. Operating results for the three months ended March 31,
1996 are not necessarily indicative of the results to be expected for the full
year ending December 31, 1996. For further information refer to the consolidated
financial statements and footnotes thereto included in the Sturm, Ruger &
Company, Inc. Annual Report on Form 10-K for the year ended December 31, 1995.
NOTE 2--SIGNIFICANT ACCOUNTING POLICIES
Organization: Sturm, Ruger & Company, Inc. ("Company") is principally
engaged in the design, manufacture, and sale of firearms and investment
castings. The Company's design and manufacturing operations are located in the
United States. Substantially all sales are domestic. The Company's firearms are
sold through a select number of distributors to the sporting and law enforcement
markets. Investment castings are sold either directly to or through manufacturer
representatives to companies in a wide variety of industries.
Use of Estimates: The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
Principles of Consolidation: The consolidated financial statements
include the accounts of the Company and its wholly owned subsidiaries. A joint
venture, Antelope Hills, LLC, of which the Company owns 50%, is accounted for
using the equity method. All significant intercompany accounts and transactions
have been eliminated.
NOTE 3--INVENTORIES
An actual valuation of inventory under the LIFO method can be made only
at the end of each year based on the inventory levels and costs at that time.
Accordingly, interim LIFO calculations must necessarily be based on management's
estimates of expected year-end inventory levels and costs. Because these are
subject to many forces beyond management's control, interim results are subject
to the final year-end LIFO inventory valuation. At March 31, 1996, inventory
quantities used in the LIFO calculation approximated quantities on hand at the
end of 1995.
- 6 -
<PAGE> 7
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)--CONTINUED
NOTE 4--INCOME TAXES
The Company's effective tax rate differs from the statutory tax rate
principally as a result of state income taxes. Total income tax payments during
the three months ended March 31, 1996 and 1995 were $2.5 million and $.2
million, respectively.
NOTE 5--NET INCOME PER COMMON SHARE
Net income per common share is based upon the weighted average number
of common shares outstanding during the period.
NOTE 6--CONTINGENT LIABILITIES
The Company is a defendant in approximately 21 lawsuits involving
product liability claims and is aware of other product liability claims which
allege defective product design. These lawsuits and claims are based principally
on the theory of "strict liability" but also may be based on negligence, breach
of warranty and other legal theories. In many of the lawsuits, punitive damages,
as well as compensatory damages, are demanded. Aggregate claimed amounts
presently exceed product liability accruals and, if applicable, insurance
coverage. Management believes that, in every case, the allegations of defective
product design are unfounded, and that the accident and any results therefrom
were due to negligence or misuse of the firearm by the claimant or a third party
and that there should be no recovery against the Company.
The Company's management monitors the status of known claims and the
product liability accrual, which includes amounts for asserted and unasserted
claims. While it is difficult to forecast the outcome of these claims, in the
opinion of management, after consultation with special and corporate counsel,
the outcome of these claims will not have a material adverse effect on the
results of operations or financial condition of the Company.
The Company has reported all lawsuits instituted against it through
December 31, 1995 and the results of those lawsuits, where terminated, to the
S.E.C. on its Form 10-K and Form 10-Q reports, to which reference is hereby
made.
- 7 -
<PAGE> 8
ITEM 2. MANAGEMENTS'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations
Record consolidated net sales of $65.6 million were achieved by the
Company in the first quarter of 1996. This represents an increase of $15.3
million or 30.3% from the first quarter of 1995 consolidated net sales of $50.3
million.
Firearms segment net sales increased by 9.3% to $47.6 million in the
first quarter of 1996 compared to $43.5 million in the corresponding 1995
period. An increase of firearm unit shipments of 12.5% was primarily attributed
to strong sales of most firearm models in the industry product categories of
rifles, revolvers, and shotguns, which are manufactured in the Company's
Newport, New Hampshire facility, offsetting decreased sales of pistols
manufactured in the Company's Prescott, Arizona facility. Significant increases
in production were achieved in the first quarter of 1996 by the Newport Firearm
facility due to the completed expansion of this facility in the latter part of
1995, which allowed the Company to better match production with consumer demand.
Shipments also began in limited quantities of certain new firearm models,
including the Model 96 lever action rifle, 10/22 T target rifle, and P-95 pistol
in the first quarter of 1996. Weak consumer demand for pistols continued in the
first quarter of 1996, and the Company anticipates demand to remain at this
level at least through the middle of 1996. In an effort to stimulate sales of
pistols, the Company commenced a sales promotion program in February 1996 that
provides discounts of up to 10% on certain pistol models based on customer's
purchases. The Company believes that the impact of this program on sales has
been favorable in the first quarter and will continue to be so throughout 1996.
Castings segment net sales increased by 164.7% to $18.0 million in the
first quarter of 1996 from $6.8 million in the comparable 1995 period. This
increase was primarily achieved by Ruger Investment Casting producing and
shipping significantly higher quantities of Great Big Bertha titanium golf club
heads to Callaway Golf Company, Inc. ("Callaway Golf"). The Company anticipates
further production and sales increases of golf club heads throughout 1996 from
continuing resource investment and process improvements.
Consolidated cost of products sold for the first quarter of 1996 was
$43.1 million compared to $32.7 million for the first quarter of 1995, an
increase of $10.4 million or 31.9%. This was primarily attributable to increases
in sales activities by both the firearms and investment casting segments.
Gross profit as a percentage of net sales decreased slightly to 34.3%
in the first quarter of 1996 from 35.0% in the comparable 1995 period. An
unfavorable firearm product sales mix, inefficiencies from decreased firearm
unit production at the Company's Prescott, Arizona facility, and the increase in
casting segment sales, which have a lower gross profit margin than firearm
sales, more than offset the incremental benefit in gross profit margin that the
Company usually realizes with increased sales.
Selling, general & administrative expenses increased by 15.2% to $4.7
million in the first quarter of 1996 from $4.1 million in the first quarter of
1995. This increase is from costs associated with the addition of executive
management to the Company in the latter part of 1995 and the first quarter of
1996 and higher professional service fees.
- 8 -
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS--CONTINUED
Other income-net decreased in the first quarter of 1996 compared to the
corresponding 1995 period from decreased earnings on Treasury bill investments
resulting from lower interest rates and lower average funds available for
investment.
The effective income tax rate decreased to 40.0% in the first quarter
of 1996 from 40.3% in the comparable 1995 quarter due to state income taxes.
As a result of the foregoing factors, consolidated net income for the
first quarter of 1996 increased to $11.1 million from $8.6 million for the first
quarter of 1995 or by $2.6 million and 29.9%.
Financial Condition
At March 31, 1996, the Company had cash, cash equivalents and
short-term investments of $53.9 million, working capital of $96.2 million and a
current ratio of 3.9 to 1.
Cash provided by operating activities was $15.9 million and $9.7
million for the three months ended March 31, 1996 and 1995, respectively. This
change in cash flows is principally a result of an increase in net income and
timing of replenishment of inventory quantities, receipt of accounts receivable
balances, and payment of accounts payable balances.
The Company follows an industry-wide practice of offering a "dating
plan" to its customers on selected products, which allows the purchasing
distributor to buy the products commencing in December, the start of the
Company's dating plan year, and pay for them on extended terms. Discounts are
offered for early payment. The dating plan provides a revolving payment plan
under which payments for all shipments made during the period December through
March have to be made by April 30. Shipments made in subsequent months have to
be paid for within 90 days. Dating plan receivable balances were $7.4 million at
March 31, 1996 as compared to $5.7 million at March 31, 1995. The Company has
reserved the right to discontinue the dating plan at any time and has been able
to finance this dating plan from internally generated funds provided by
operating activities.
The Company's production of "Great Big Bertha" titanium golf club heads
for Callaway Golf requires a certain titanium metal alloy. Presently the Company
buys all of its titanium metal alloys under a short-term (approximately one
year) purchasing arrangement from one supplier. Although there are a limited
number of companies that produce titanium metal alloys, management believes that
other suppliers could provide the Company with the required titanium metal
alloys. However, the purchase price of the metals to the Company may be
significantly higher which could have a negative financial impact on the
Company's operations. The Company believes that it has adequate quantities of
titanium metal alloys in inventory to provide enough time to locate another
supplier without interruption of manufacturing operations.
- 9 -
<PAGE> 10
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS--CONTINUED
Capital expenditures during the three months ended March 31, 1996
totaled $1.9 million and for the past two years averaged approximately $3.8
million per quarter. For 1996, the Company has budgeted to spend approximately
$10 million on capital expenditures to upgrade and modernize the Newport Firearm
and Uni-Cast divisions, increase the capacity of Ruger Investment Casting and
for normal Company-wide improvements to increase efficiencies. The Company
finances, and intends to continue to finance, all of these activities with funds
provided by operations.
Additional expenditures of $1.9 million were made by the Company in the
first quarter of 1996 and have totaled $3.5 million to date, toward the
construction and outfitting of the Antelope Hills, LLC foundry. Antelope Hills,
LLC is a joint venture between Callaway Golf and the Company to collaborate in
the construction and operation of an investment casting foundry to produce
titanium golf club heads. As part of the joint venture agreement, Callaway Golf
has committed to purchase a quantity of titanium golf club heads with sales
prices totaling a minimum of approximately $150 million in the years 1996
through 1998. Financing of the approximately $14 million investment in the joint
venture will be made 50% by the Company using funds provided by operations and
50% from Callaway Golf. Antelope Hills foundry is expected to be operational and
commence production in the third quarter of 1996.
The adoption of Financial Accounting Standards No. 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of"
in the first quarter of 1996 did not have a material affect on the results of
operations or financial position of the Company.
For the three months ended March 31, 1996, dividends paid totaled $5.4
million. This amount reflects the regular quarterly dividend of $.40 per share
paid on March 15, 1996. On April 25, 1996 the Company declared a regular
quarterly dividend of $.40 per share payable on June 15, 1996. Future dividends
depend on many factors, including internal estimates of future performance and
the Company's need for funds.
Historically, the Company has not required external financing. Based on
its cash flow and unencumbered assets, the Company believes it has the ability
to raise substantial amounts of short-term or long-term debt. The Company does
not anticipate any need for external financing through 1996.
The purchase of firearms is subject to federal, state and local
governmental regulations. The basic federal laws are the National Firearms Act
and the Federal Firearms Act. These laws generally prohibit the private
ownership of fully automatic weapons and place certain restrictions on the
interstate sale of firearms unless certain licenses are obtained. The Company
does not manufacture fully automatic weapons, other than for the law enforcement
market, and holds all necessary licenses under these federal laws. From time to
time, congressional committees review proposed bills relating to the regulation
of firearms. These proposed bills generally seek either to restrict or ban the
sale and, in some cases, the ownership of various types of firearms, or to
impose a mandatory waiting period prior to their purchase. Several states
currently have laws in effect similar to the aforementioned legislation.
- 10 -
<PAGE> 11
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS--CONTINUED
The "Brady Law", mandates a nationwide 5-day waiting period prior to
the purchase of a handgun. The Company believes that, because its customers are
sportsmen, hunters, gun collectors and law enforcement agencies and since 26
states had previously enacted some form of a waiting period prior to purchase,
the "Brady Law" has not had a significant effect on the Company's sales of
firearms. The Crime Bill took effect on September 13, 1994, but none of the
Company's products were banned as so-called "assault weapons." To the contrary,
all the Company's currently-manufactured long guns have been exempted by name as
"legitimate sporting firearms." A separate provision of the Crime Bill
prohibited production or sale of detachable magazines of over 10-round capacity
manufactured after September 13, 1994, other than to law enforcement. Only two
such magazines (9mm and .40 caliber) were commercially sold by the Company, and
production of substitute 10-round magazines in these calibers (approved by the
BATF) began immediately. The Company remains strongly opposed to laws which
would unduly restrict the rights of law-abiding citizens to acquire firearms for
legitimate purposes. The Company believes that the private ownership of firearms
is guaranteed by the Second Amendment to the United States Constitution and that
the widespread private ownership of firearms in the United States will continue.
However, there can be no assurance that the regulation of firearms will not
become more restrictive in the future and that any such restriction would not
have a material adverse effect on the business of the Company.
The Company has expended significant amounts of financial resources and
management time in connection with product liability litigation. While it is
difficult to forecast the outcome of litigation or the timing of costs,
management believes, after consultation with counsel, that this litigation will
not have a material adverse effect on the financial condition of the Company.
The Company is not aware of any adverse trends in its litigation as a whole.
In the normal course of its manufacturing operations, the Company is
subject to occasional governmental proceedings and orders pertaining to waste
disposal, air emissions and water discharges into the environment. The Company
believes that it is generally in compliance with applicable environmental
regulations and the outcome of such proceedings and orders will not have a
material adverse effect on its business.
The Company expects to realize its deferred tax assets through tax
deductions against future taxable income or carry-back against taxes previously
paid.
Inflation's effect on the Company's operations is most immediately felt
in cost of products sold because the Company values inventory on the LIFO basis.
Generally under this method, the cost of products sold reported in the financial
statements approximates current costs, and thus, reduces distortion in reported
income which would result from the slower recognition of increased costs when
other methods are used. The use of historical cost depreciation has a beneficial
effect on cost of products sold. The Company has been affected by inflation in
line with the general economy. Thus far in 1996, the rate of inflationary cost
was comparable with the same 1995 period.
- 11 -
<PAGE> 12
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS--CONTINUED
Forward-Looking Statements and Projections
The Company may from time to time make forward-looking statements and
projections concerning future expectations. Such statements are based on current
expectations and are subject to certain qualifying risks, and uncertainties such
as failure of a continuation of the increased sales rates of firearms and Great
Big Bertha golf club heads as experienced in the first quarter of 1996, expected
productivity improvements, and new products being produced and accepted by
consumers as anticipated, and adverse legislation or litigation results, which
could cause actual results to differ materially from those projected. Readers
are cautioned not to place undue reliance on these forward looking statements
which speak only as of the date made and the Company undertakes no obligation to
republish revised forward looking statements to reflect events or circumstances
after the date such forward-looking statements are made or to reflect the
occurrence of unanticipated events.
- 12 -
<PAGE> 13
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
"Note 6--Contingent Liabilities" presented in Part I is incorporated herein by
reference.
There were two cases instituted against the Company during the three
months ended March 31, 1996, which involved significant demands for compensatory
and/or punitive damages:
Eugene Allen vs. Sturm, Ruger & Company, Inc. and Chester's Guns &
Ammo, in the Supreme Court of the State of New York, County of Suffolk. The
complaint, dated January 19, 1996, alleges that on or about May 7, 1995, the
plaintiff suffered injuries while using his 9mm pistol. General and punitive
damages in the amount of $15,000,000 are demanded.
Lonnie F. LeBlanc vs. Sturm, Ruger & Company, Inc. et. al., in 136th
Judicial District Court of Jefferson County, Texas. The complaint, dated March
15, 1996, alleges that on or about October 1, 1993, the plaintiff suffered
injuries when his .44 caliber revolver discharged when it was allegedly dropped.
Damages within the jurisdictional limits of the Court are demanded.
During the three months ending March 31, 1996, the following previously
reported cases were settled:
Name Jurisdiction
---- ------------
Hillard California
Haws Oklahoma
Shaw Wisconsin
These cases were settled for amounts within the insurance limits and/or
self-insured retention of the Company.
PART II. OTHER INFORMATION--CONTINUED
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - None.
(b) The Company did not file any reports on Form 8-K during the three
months ended March 31, 1996.
- 13 -
<PAGE> 14
STURM, RUGER & COMPANY, INC.
FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31, 1996
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.
STURM, RUGER & COMPANY, INC.
Date: May 13, 1996 /s/ JOHN M. KINGSLEY, JR.
---------------------------
John M. Kingsley, Jr.
Principal Financial and
Accounting Officer,
Executive Vice President
- 14 -
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 4,846
<SECURITIES> 49,030
<RECEIVABLES> 26,721
<ALLOWANCES> 1,571
<INVENTORY> 42,067
<CURRENT-ASSETS> 129,673
<PP&E> 112,742
<DEPRECIATION> 68,700
<TOTAL-ASSETS> 192,630
<CURRENT-LIABILITIES> 33,464
<BONDS> 0
0
0
<COMMON> 13,455
<OTHER-SE> 126,012
<TOTAL-LIABILITY-AND-EQUITY> 192,630
<SALES> 65,557
<TOTAL-REVENUES> 65,557
<CGS> 43,089
<TOTAL-COSTS> 43,089
<OTHER-EXPENSES> 4,720
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 18,523
<INCOME-TAX> 7,409
<INCOME-CONTINUING> 11,114
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11,114
<EPS-PRIMARY> 0.83
<EPS-DILUTED> 0.83
</TABLE>
