<PAGE> 1
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 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: 0-452
TECUMSEH PRODUCTS COMPANY
(Exact name of registrant as specified in its charter)
MICHIGAN 38-1093240
(State of Incorporation) (IRS Employer Identification Number)
100 EAST PATTERSON STREET
TECUMSEH, MICHIGAN 49286
(Address of Principal Executive Offices)
Telephone Number: (517) 423-8411
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 [ ]
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class of Stock Outstanding at July 31, 1997
- -------------------------------------------------------------------------------
Class B Common Stock, $1.00 par value 5,470,146
Class A Common Stock, $1.00 par value 16,410,438
<PAGE> 2
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION - ITEM 1
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited and subject to year end adjustments)
<TABLE>
<CAPTION>
(Dollars in millions) JUNE 30, December 31,
1997 1996
=================================================================================================================
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 265.3 $ 277.7
Accounts receivable, trade, less allowance for doubtful
accounts of $6.7 million in 1997 and 1996 277.6 204.5
Inventories 264.4 275.2
Deferred income taxes 36.0 36.6
Other current assets 7.5 10.4
- -------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 850.8 804.4
PROPERTY, PLANT AND EQUIPMENT, at cost, net of
accumulated depreciation of $454.0 million in 1997
and $448.3 million in 1996 542.7 529.1
EXCESS OF COST OVER ACQUIRED NET ASSETS 49.0 56.0
DEFERRED INCOME TAXES 12.0 13.6
PREPAID PENSION EXPENSE 52.6 46.7
OTHER ASSETS 43.5 22.8
- -------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 1,550.6 $ 1,472.6
=============================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable, trade $ 137.9 $ 114.3
Income taxes payable 8.1 0.1
Short-term borrowings 4.8 19.8
Accrued liabilities 135.6 120.5
- -------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 286.4 254.7
LONG-TERM DEBT 23.4 14.4
NON-PENSION POSTRETIREMENT BENEFITS 181.0 178.4
PRODUCT WARRANTY AND SELF-INSURED RISKS 32.0 30.2
ACCRUAL FOR ENVIRONMENTAL MATTERS 32.4 33.0
PENSION LIABILITIES 13.5 14.4
- -------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 568.7 525.1
- -------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Class A common stock, $1 par value; authorized 75,000,000
shares; issued and outstanding 16,410,438 shares 16.4 16.4
Class B common stock, $1 par value; authorized 25,000,000
shares; issued and outstanding 5,470,146 shares 5.5 5.5
Capital in excess of par value 29.9 29.9
Retained earnings 934.1 883.8
Foreign currency translation adjustment (4.0) 11.9
- -------------------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 981.9 947.5
- -------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,550.6 $ 1,472.6
=============================================================================================================
</TABLE>
The accompanying notes are an integral part of these statements.
Page 2
<PAGE> 3
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION - ITEM 1
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited and subject to year end adjustments)
<TABLE>
<CAPTION>
(Dollars in millions Three Months Ended Six Months Ended
except per share amounts) June 30, June 30,
------------------- ------------------
1997 1996 1997 1996
===============================================================================
<S> <C> <C> <C> <C>
NET SALES $480.6 $490.9 $960.2 $987.1
COSTS AND EXPENSES
Cost of sales and operating expense 408.1 414.6 815.4 840.9
Selling and administrative expense 25.2 25.4 52.2 50.3
- ------------------------------------------------------------------------------
OPERATING INCOME 47.3 50.9 92.6 95.9
OTHER INCOME (EXPENSE)
Interest expense (1.5) (1.7) (2.9) (3.6)
Interest income and other, net 4.4 4.6 9.3 9.7
- ------------------------------------------------------------------------------
INCOME BEFORE TAXES ON INCOME 50.2 53.8 99.0 102.0
- ------------------------------------------------------------------------------
Taxes on income 18.4 19.9 35.7 37.1
- ------------------------------------------------------------------------------
NET INCOME $ 31.8 $ 33.9 $ 63.3 $ 64.9
==============================================================================
NET INCOME PER SHARE $ 1.45 $ 1.55 $ 2.89 $ 2.97
==============================================================================
CASH DIVIDENDS DECLARED
PER SHARE $ 0.30 $ 0.26 $ 0.60 $ 0.52
==============================================================================
</TABLE>
The accompanying notes are an integral part of these statements.
Page 3
<PAGE> 4
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION - ITEM 1
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited and subject to year end adjustments)
<TABLE>
<CAPTION>
Six Months Ended
(Dollars in millions) June 30,
------------------
1997 1996
==============================================================================
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 63.3 $ 64.9
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 34.8 31.8
Accounts receivable (79.0) (77.4)
Inventories 5.8 9.6
Payables and accrued expenses 55.6 36.4
Other 3.5 (2.4)
- -----------------------------------------------------------------------------
CASH PROVIDED BY OPERATIONS 84.0 62.9
- -----------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (51.9) (59.8)
Business acquisition, net of cash acquired (20.4) --
- -----------------------------------------------------------------------------
CASH USED IN INVESTING ACTIVITIES (72.3) (59.8)
- -----------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid (13.1) (11.4)
Decrease in borrowings, net (4.2) (5.6)
- -----------------------------------------------------------------------------
CASH USED IN FINANCING ACTIVITIES (17.3) (17.0)
- -----------------------------------------------------------------------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH (6.8) (2.8)
- -----------------------------------------------------------------------------
DECREASE IN CASH AND CASH EQUIVALENTS (12.4) (16.7)
CASH AND CASH EQUIVALENTS:
BEGINNING OF PERIOD 277.7 261.6
- -----------------------------------------------------------------------------
END OF PERIOD $265.3 $244.9
=============================================================================
</TABLE>
The accompanying notes are an integral part of these statements.
Page 4
<PAGE> 5
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION - ITEM 1
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. The condensed consolidated financial statements are unaudited and reflect
all adjustments (consisting only of normal recurring adjustments) which
are, in the opinion of management, necessary for a fair presentation of
the financial position and operating results for the interim periods. The
December 31, 1996 condensed balance sheet data was derived from audited
financial statements, but does not include all disclosures required by
generally accepted accounting principles. The condensed consolidated
financial statements should be read in conjunction with the consolidated
financial statements and notes thereto contained in the Company's Annual
Report for the fiscal year ended December 31, 1996. Due to the seasonal
nature of the Company's business, the results of operations for the
interim period are not necessarily indicative of the results for the
entire fiscal year.
The financial data required in this Form 10-Q by Rule 10.01 of Regulation
S-X have been reviewed by Ciulla, Smith & Dale, LLP, the Company's
independent certified public accountants, as described in their report
contained elsewhere herein.
2. Inventories consisted of:
<TABLE>
<CAPTION>
(Dollars in Millions) JUNE 30, December 31,
1997 1996
==============================================================
<S> <C> <C>
Raw material and work in process $ 154.6 $ 155.1
Finished goods 89.8 101.4
Supplies 20.0 18.7
--------------------------------------------------------------
$ 264.4 $ 275.2
==============================================================
</TABLE>
3. The Company has been named by the EPA as a potentially responsible party
in connection with the Sheboygan River and Harbor Superfund Site in
Wisconsin. At June 30, 1997, the Company had an accrual of $29.8 million
($30.1 million at December 31, 1996) for estimated costs associated with
the cleanup of certain polychlorinated biphenyl (PCB) contamination at
this Superfund Site. The Company has based the estimated cost of cleanup
on ongoing engineering studies, including samples taken in the Sheboygan
River, and on assumptions as to the nature, extent and areas that will
have to be remediated. Significant assumptions underlying the estimated
costs are that remediation will involve innovative technologies, including
(but not limited to) bioremediation near the Company's plant site and
along the upper river, and only natural armoring and bioremediation in the
lower river and harbor. The EPA has indicated it expects to issue a
record of decision on the cleanup of the Sheboygan River and Harbor Site
by mid 1998, but the ultimate resolution of the matter may take much
longer. The ultimate costs to the Company will be dependent upon factors
beyond its control. These factors include the scope and methodology of
the remedial action requirements to be established by the EPA (in
consultation with the Wisconsin Department of Natural
Resources (WDNR)), rapidly changing technology, and the outcome of any
related litigation.
Page 5
<PAGE> 6
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION - ITEM 1
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS, CONTINUED
The Company, in cooperation with the WDNR, is conducting an investigation
of soil and groundwater contamination at the Company's Grafton, Wisconsin
plant. Certain test procedures are underway to assess the extent of
contamination and to develop remedial options for the site. While the
Company has provided for estimated investigation and on-site remediation
costs, the extent and timing of future off-site remediation requirements,
if any, are not presently determinable.
The WDNR has requested that the Company and other interested parties join
it in a cooperative effort to clean up PCB contamination in the watershed
of the south branch of the Manitowoc River, downstream of the Company's
New Holstein, Wisconsin facility. The Company has cooperated to date with
the WDNR in investigating the scope and range of the contamination. The
WDNR has not identified the parties it believes are responsible for such
contamination. The Company has provided for preliminary investigation
expenses. Although participation in a cooperative remediation effort is
under consideration, it is not possible at this time to reasonably
estimate the cost of any such participation.
In addition to the above mentioned sites, the Company is also currently
participating with the EPA and various state agencies at certain other
sites to determine the nature and extent of any remedial action which may
be necessary with regard to such other sites. Based on limited
preliminary data and other information currently available, the Company
has no reason to believe that the level of expenditures for potential
remedial action necessary at these other sites will have a material effect
on its financial position.
4. Various lawsuits and claims, including those involving ordinary routine
litigation incidental to its business, to which the Company is a party,
are pending, or have been asserted, against the Company. Although the
outcome of these matters cannot be predicted with certainty, and some may
be disposed of unfavorably to the Company, management has no reason to
believe that their disposition will have a materially adverse effect on
the consolidated financial position of the Company.
Page 6
<PAGE> 7
August 11, 1997
INDEPENDENT ACCOUNTANTS' REPORT
Tecumseh Products Company
Tecumseh, Michigan
We have reviewed the consolidated condensed balance sheet of Tecumseh
Products Company and Subsidiaries as of June 30, 1997, and the related
consolidated condensed statements of income and cash flows for the three months
and six months ended June 30, 1997 and 1996. These financial statements are
the responsibility of the Company's management.
We have conducted our review in accordance with standards established by
the American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted
in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the consolidated condensed financial statements referred to
above for them to be in conformity with generally accepted accounting
principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of December 31, 1996, and the
related consolidated statements of income, stockholders' equity, and cash flows
for the year then ended (not presented herein); and in our report dated
February 18, 1997, we expressed an unqualified opinion on those consolidated
financial statements. In our opinion, the information set forth in the
accompanying consolidated condensed balance sheet as of December 31, 1996, is
fairly stated in all material respects in relation to the consolidated balance
sheet from which it has been derived.
CIULLA, SMITH & DALE, LLP
Certified Public Accountants
Southfield, Michigan
Page 7
<PAGE> 8
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION -- ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
Sales of $480.6 million for the second quarter of 1997 were 2% lower than the
same period in 1996. Second quarter consolidated earnings of $31.8 million, or
$1.45 per share, were 6% lower than 1996 second quarter earnings of $33.9
million. The earnings decrease was primarily due to lower profitability in the
Company's Brazilian compressor operations and start-up costs at the new engine
production facility in Georgia. First half sales of $960.2 million and net
income of $63.3 million, or $2.89 per share, each decreased 3% as compared to
the first half results of 1996. Decreased demand for room air conditioning in
the U.S. and lagging sales in European markets were the major contributors to
the first half sales decline.
The following table presents results by business segments:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
(Dollars in millions) June 30, June 30,
-------------------- -----------------
1997 1996 1997 1996
==========================================================================
<S> <C> <C> <C> <C>
NET SALES:
Compressor Products $ 301.7 $ 318.9 $ 580.6 $ 631.6
Engine and Power Train Products 150.0 146.3 319.6 300.6
Pump Products 28.9 25.7 60.0 54.9
- ---------------------------------------------------------------------------
TOTAL NET SALES $ 480.6 $490.9 $ 960.2 $987.1
===========================================================================
OPERATING INCOME:
Compressor Products $ 32.4 $ 33.4 $ 59.1 $ 59.4
Engine and Power Train Products 14.0 16.2 31.1 33.4
Pump Products 3.7 3.7 7.6 8.0
Corporate Expenses (2.8) (2.4) (5.2) (4.9)
- ---------------------------------------------------------------------------
TOTAL OPERATING INCOME 47.3 50.9 92.6 95.9
Interest expense (1.5) (1.7) (2.9) (3.6)
Interest income and other, net 4.4 4.6 9.3 9.7
- ---------------------------------------------------------------------------
INCOME BEFORE TAXES ON INCOME $ 50.2 $ 53.8 $ 99.0 $102.0
===========================================================================
</TABLE>
NOTE: Certain amounts previously reported have been reclassified to conform
with the current presentation.
Page 8
<PAGE> 9
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION -- ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION, CONTINUED
Compressor Products
Worldwide Compressor Products sales for the second quarter decreased 5% to
$301.7 million as compared to $318.9 million in 1996. First half sales of
$580.6 million decreased 8% as compared to the first half of 1996. The
primary contributor to both the second quarter and first half sales decline was
continued weak demand in the U.S. room air conditioning market after last
summer's unseasonably cool weather.
Second quarter Compressor Products operating margins improved to 10.7% in 1997
versus 10.5% in 1996. Year-to-date operating margins were 10.2% versus 9.4%.
Margin improvements from cost cutting measures in North American and European
operations were offset by lower Brazilian profitability resulting from weak
local demand for refrigerators.
Engine and Power Train Products
Worldwide Engine and Power Train Products sales for the second quarter
increased 3% to $150.0 million, as compared to $146.3 million in 1996. Sales
gains in the North American lawn and garden market were partially offset by
comparatively lower snow engine sales following exceptionally strong sales in
1996. Sales for the first half of 1997 were $319.6 million, a 6% increase over
the first half of 1996 as a result of stronger sales in the North American lawn
and garden market.
Operating margins for the second quarter of 1997 decreased to 9.3% as compared
to 11.1% during the same period in 1996 due to volume reductions of higher
margin snow product coupled with start-up costs at the new engine production
facility in Georgia. These same factors contributed to decreased first half
margins of 9.7% as compared to 11.1% for the first half of 1996.
Pump Products
Pump Products sales for the second quarter of 1997 increased 12% to $28.9
million. First half sales of $60.0 million increased 9% over the prior year
period. Sales gains were due primarily to strong demand for water-gardening
products.
Second quarter operating margins decreased to 12.8% as compared to 14.4%, while
first half margins decreased to 12.7% as compared to 14.6% in 1996. The reduced
margins were due to sales mix, primarily higher volumes of lower margin sales
to the retail mass merchants.
Page 9
<PAGE> 10
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION -- ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION, CONTINUED
Outlook
Despite recent warm weather that has helped to reduce bloated air conditioning
inventories, it seems likely that demand for air conditioning compressors will
remain soft at least until late in the year. Furthermore, the Brazilian white
goods industry is expected to operate at very low levels at least through the
third quarter. Because of these factors, as well as continued start-up
inefficiencies at the Douglas, Georgia engine facility and lower snow thrower
engine volume, earnings for the last half of the year are expected to fall
short of earnings reported for the last half of 1996.
LIQUIDITY AND CAPITAL RESOURCES
In mid-July, Tecumseh finalized the acquisition of refrigeration compressor
manufacturing facilities from Whirlpool of India, Ltd. and concurrently
acquired 100% of Siel Compressors Ltd. (Siel). In April of this year, the
Company had initially acquired 50% of Siel.
The newly acquired Whirlpool facilities in the state of Haryana, India will be
devoted to the manufacture of refrigeration compressors. Tecumseh expects to
expand the capacity over the next several years to include its high efficiency
CFC-free TP compressor. Siel Compressors Ltd. (which is located in Hyderabad,
Andhra Pradesh, India and is a former licensee of Tecumseh) will continue to
manufacture air conditioning compressors. Once expanded and fully equipped,
the combined operations will have sufficient capacity to produce 2 to 3 million
compressors annually.
The purchase price of both operations, including the previous 50% acquisition
of Siel, is approximately $45 million. As of June 30, 1997, $20 million has
been remitted in partial payment, with the remainder to occur in the third
quarter of 1997. The acquisitions will be accounted for using the purchase
accounting method and are expected to be financed through internally available
funds.
The Company continued to maintain a strong and liquid financial position.
Working capital of $564.4 million at June 30, 1997 was up from $549.7 million
at December 31, 1996, and the ratio of current assets to current liabilities
approximated 3.0. First half capital spending of $51.9 million (excluding the
Indian acquisition, as discussed above) included expenditures for a new
electric motor manufacturing facility in Mississippi and additional equipment
for a new engine manufacturing facility in Georgia. Total capital spending for
1997 should approximate $120-130 million. Working capital requirements and
planned capital expenditures for the remainder of 1997 and 1998 are expected to
be financed through internally available funds, although the Company may
utilize long-term financing arrangements in connection with various state
investment incentives.
Page 10
<PAGE> 11
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION -- ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION, CONTINUED
UNCERTAINTIES RELATING TO FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of the
securities laws. In addition, forward-looking statements may be made orally in
the future by or on behalf of the Company.
Forward-looking statements involve risks and uncertainties, including, but not
limited to, changes in business conditions and the economy in general in both
foreign and domestic markets; weather conditions affecting demand for air
conditioners, lawn and garden products and snow throwers; financial market
changes, including interest rates and foreign exchange rates; economic trend
factors such as housing starts; governmental regulations; availability of
materials; actions of competitors; and the Company's ability to profitably
develop, manufacture and sell both new and existing products.
Page 11
<PAGE> 12
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
The Annual Meeting of Shareholders of Tecumseh Products Company was held on
April 23, 1997. Proxies for the meeting were solicited pursuant to Section
14(a) of the Securities Exchange Act of 1934 and there was no solicitation in
opposition to management's solicitation.
All of the management's nominees for directors as listed in the proxy statement
were elected with the following votes.
<TABLE>
<CAPTION>
VOTES
DIRECTOR VOTES FOR WITHHELD
------------------ --------- --------
<S> <C> <C>
Kenneth G. Herrick 5,061,366 23,935
Todd W. Herrick 5,063,015 22,286
John H. Foss 5,062,819 22,482
Peter M. Banks 5,061,782 23,519
Jon E. Barfield 5,062,784 22,517
J. Russell Fowler 5,061,992 23,309
John W. Gelder 5,062,219 23,082
Stephen L. Hickman 5,062,719 22,582
Dean E. Richardson 5,061,919 23,382
</TABLE>
Item 6. Exhibits and Reports on Form 8-K
(a) None.
(b) The Company did not file any reports on Form 8-K during the three months
ended June 30, 1997.
SIGNATURE
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:
TECUMSEH PRODUCTS COMPANY
-------------------------
(Registrant)
Dated: August 14, 1997 By: /s/ JOHN H. FOSS
--------------- ------------------------
John H. Foss
Vice President, Treasurer and
Chief Financial Officer
Page 12
<PAGE> 13
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
- ----------- -----------
<S> <C>
27 FINANCIAL DATA SCHEDULE
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 265,300
<SECURITIES> 0
<RECEIVABLES> 284,300
<ALLOWANCES> 6,700
<INVENTORY> 264,400
<CURRENT-ASSETS> 850,800
<PP&E> 996,700
<DEPRECIATION> 454,000
<TOTAL-ASSETS> 1,550,600
<CURRENT-LIABILITIES> 286,400
<BONDS> 0
0
0
<COMMON> 21,900
<OTHER-SE> 960,000
<TOTAL-LIABILITY-AND-EQUITY> 1,550,600
<SALES> 960,200
<TOTAL-REVENUES> 969,500
<CGS> 815,400
<TOTAL-COSTS> 867,600
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,900
<INCOME-PRETAX> 99,000
<INCOME-TAX> 35,700
<INCOME-CONTINUING> 63,300
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 63,300
<EPS-PRIMARY> 2.89
<EPS-DILUTED> 2.89
</TABLE>
