<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, 1998
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, 1998
- -------------------------------------------------------------------------------
Class B Common Stock, $1.00 par value 5,470,146
Class A Common Stock, $1.00 par value 15,841,638
<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,
1998 1997
===============================================================================================================
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 302.7 $ 304.1
Accounts receivable, trade, less allowance for doubtful
accounts of $5.5 million in 1998 and $5.7 million in 1997 309.0 207.7
Inventories 245.0 259.4
Deferred income taxes 37.8 38.2
Other current assets 9.6 8.7
- ---------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 904.1 818.1
PROPERTY, PLANT AND EQUIPMENT, at cost, net of
accumulated depreciation of $489.5 million in 1998
and $469.2 million in 1997 552.7 569.7
EXCESS OF COST OVER ACQUIRED NET ASSETS 54.4 56.7
DEFERRED INCOME TAXES 9.4 10.8
PREPAID PENSION EXPENSE 63.4 58.4
OTHER ASSETS 25.9 23.7
- ---------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 1,609.9 $ 1,537.4
===============================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable, trade $ 151.7 $ 110.6
Income taxes payable 12.4 9.3
Short-term borrowings 6.4 29.0
Accrued liabilities 142.7 114.4
- ---------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 313.2 263.3
LONG-TERM DEBT 17.8 17.5
NON-PENSION POSTRETIREMENT BENEFITS 185.1 182.7
PRODUCT WARRANTY AND SELF-INSURED RISKS 31.7 28.9
ACCRUAL FOR ENVIRONMENTAL MATTERS 36.1 31.6
PENSION LIABILITIES 12.8 13.2
- ---------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 596.7 537.2
- ---------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Class A common stock, $1 par value; authorized 75,000,000
shares; issued and outstanding 15,922,438 shares and
16,370,438 shares, respectively 15.9 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 5.9 28.0
Retained earnings 1,003.9 958.0
Accumulated other comprehensive income:
Foreign currency translation adjustment (18.0) (7.7)
- ---------------------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 1,013.2 1,000.2
- ---------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,609.9 $ 1,537.4
===============================================================================================================
</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 except per share Three Months Ended Six Months Ended
amounts June 30, June 30,
--------------------------- --------------------------
1998 1997 1998 1997
===============================================================================================================
<S> <C> <C> <C> <C>
NET SALES $ 500.4 $ 480.6 $ 960.3 $ 960.2
COSTS AND EXPENSES
Cost of sales and operating expense 423.7 408.1 821.1 815.4
Selling and administrative expense 29.3 25.2 57.5 52.2
- ---------------------------------------------------------------------------------------------------------------
OPERATING INCOME 47.4 47.3 81.7 92.6
OTHER INCOME (EXPENSE)
Interest expense (1.8) (1.5) (4.2) (2.9)
Interest income and other, net 7.2 4.4 14.7 9.3
- ---------------------------------------------------------------------------------------------------------------
INCOME BEFORE TAXES ON INCOME 52.8 50.2 92.2 99.0
Taxes on income 18.9 18.4 33.4 35.7
- ---------------------------------------------------------------------------------------------------------------
NET INCOME $ 33.9 $ 31.8 $ 58.8 $ 63.3
===============================================================================================================
BASIC AND DILUTED EARNINGS PER SHARE $ 1.57 $ 1.45 $ 2.72 $ 2.89
===============================================================================================================
CASH DIVIDENDS DECLARED PER SHARE $ 0.30 $ 0.30 $ 0.60 $ 0.60
===============================================================================================================
</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,
------------------------
1998 1997
============================================================================================
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 58.8 $ 63.3
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 38.7 34.8
Accounts receivable (102.4) (79.0)
Inventories 12.6 5.8
Payables and accrued expenses 74.3 55.6
Other 4.3 3.5
- --------------------------------------------------------------------------------------------
CASH PROVIDED BY OPERATING ACTIVITIES 86.3 84.0
- --------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (28.4) (51.9)
Business acquisitions, net of cash acquired --- (20.4)
- --------------------------------------------------------------------------------------------
CASH USED IN INVESTING ACTIVITIES (28.4) (72.3)
- --------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid (12.9) (13.1)
Decrease in borrowings, net (21.8) (4.2)
Repurchases of common stock (22.6) ---
- --------------------------------------------------------------------------------------------
CASH USED IN FINANCING ACTIVITIES (57.3) (17.3)
- --------------------------------------------------------------------------------------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH (2.0) (6.8)
- --------------------------------------------------------------------------------------------
DECREASE IN CASH AND CASH EQUIVALENTS (1.4) (12.4)
CASH AND CASH EQUIVALENTS:
BEGINNING OF PERIOD 304.1 277.7
- --------------------------------------------------------------------------------------------
END OF PERIOD $ 302.7 $ 265.3
============================================================================================
</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, 1997 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, 1997. 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,
1998 1997
========================================================================
<S> <C> <C>
Raw material and work in process $ 150.4 $ 154.7
Finished goods 77.9 89.1
Supplies 16.7 15.6
------------------------------------------------------------------------
$ 245.0 $ 259.4
========================================================================
</TABLE>
3. Effective January 1, 1998, the Company adopted the Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income," which
establishes standards for reporting and displaying comprehensive income
(expense) and its components. The following table reports comprehensive
income (expense) for the three months ended June 30, 1998 and 1997 and the
six months ended June 30, 1998 and 1997.
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
(Dollars in Millions) June 30, June 30,
-----------------------------------------------------
1998 1997 1998 1997
===========================================================================================
<S> <C> <C> <C> <C>
Net Income $ 33.9 $ 31.8 $ 58.8 $ 63.3
Other comprehensive expense:
Foreign currency
translation adjustments (4.3) (4.3) (10.3) (15.9)
- -------------------------------------------------------------------------------------------
$ 29.6 $ 27.5 $ 48.5 $ 47.4
===========================================================================================
</TABLE>
Page 5
<PAGE> 6
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION - ITEM 1
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS, CONTINUED
4. Basic and diluted earnings per share are equivalent. Earnings per share is
computed based on the weighted average number of common shares outstanding
for the periods reported. The weighted average number of common shares used
in the computations for the three months ended June 30, 1998 and 1997, were
21,517,573 and 21,880,584, respectively. The weighted average number of
common shares used in the computations for the six months ended June 30,
1998 and 1997, were 21,629,197 and 21,880,584, respectively.
5. During the second quarter of 1998, the Company repurchased 230,000 shares
of its Class A common stock at a cost of $11.7 million. For the six months
ended June 30, 1998, the Company has repurchased 448,000 shares at a cost
of $22.6 million.
6. 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, 1998, the Company had an accrual of $34.0 million ($29.0
million at December 31, 1997) 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 increase in the accrual during 1998 reflects updated
cost factors offset by insurance settlements received during the quarter.
The EPA has indicated it expects to issue a record of decision on the
cleanup of the Sheboygan River and Harbor Site in 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.
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
Page 6
<PAGE> 7
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION - ITEM 1
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS, CONTINUED
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.
7. 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 7
<PAGE> 8
August 13, 1998
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, 1998, and the related
consolidated condensed statements of income and cash flows for the three
months and the six months ended June 30, 1998 and 1997. 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, 1997, 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 January
30, 1998, 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, 1997, 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 8
<PAGE> 9
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION -- ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Sales of $500.4 million for the second quarter of 1998 were 4% higher than the
second quarter in 1997. Second quarter consolidated earnings of $33.9 million,
or $1.57 per share, were 7% higher than 1997 second quarter earnings of $31.8
million. The earnings increase was primarily due to increased interest income
earned. For the first six months of 1998 sales were $960.3 million equaling the
sales recorded for the first six months of 1997. Net income for the first six
months of 1998 was $58.8 million, or $2.72 per share, compared to $63.3 million,
or $2.89 per share, for the first six months of 1997.
The following table presents results by business segment:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
(Dollars in millions) June 30, June 30,
---------------------- ----------------------
1998 1997 1998 1997
===============================================================================================
<S> <C> <C> <C> <C>
NET SALES:
Compressor Products $ 310.7 $ 301.7 $ 573.5 $ 580.6
Engine and Power Train Products 153.8 150.0 317.8 319.6
Pump Products 35.9 28.9 69.0 60.0
- -----------------------------------------------------------------------------------------------
TOTAL NET SALES $ 500.4 $ 480.6 $ 960.3 $ 960.2
===============================================================================================
OPERATING INCOME:
Compressor Products $ 32.7 $ 32.4 $ 51.9 $ 59.1
Engine and Power Train Products 13.3 14.0 27.0 31.1
Pump Products 4.2 3.7 8.0 7.6
Corporate Expenses (2.8) (2.8) (5.2) (5.2)
- -----------------------------------------------------------------------------------------------
TOTAL OPERATING INCOME 47.4 47.3 81.7 92.6
Interest expense (1.8) (1.5) (4.2) (2.9)
Interest income and other, net 7.2 4.4 14.7 9.3
- -----------------------------------------------------------------------------------------------
INCOME BEFORE TAXES ON INCOME $ 52.8 $ 50.2 $ 92.2 $ 99.0
===============================================================================================
</TABLE>
Page 9
<PAGE> 10
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION -- ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONTINUED
Compressor Products
Worldwide Compressor Products second quarter sales increased 3% to $310.7
million as compared to $301.7 million in 1997. Second quarter sales generated
by the Company's newly acquired operations in India as well as higher European
sales offset lower sales in Brazil and Asia. Sales for the first half of 1998
amounted to $573.5 million or a decrease of 1.2% from sales of $580.6 during
1997. A decline in exports to Asian customers combined with lower sales of
products into the domestic air conditioning market resulted in lower sales of
product built in North America. In Brazil, a continuing economic slowdown
dampened demand for our Brazilian produced compressors.
Second quarter compressor margins were 10.5% compared to 10.7% in 1997. Year to
date operating margins were 9.0% compared to 10.2% in 1997. Lower margins in
the U.S. resulting from decreased unitary air conditioning sales and continued
price competition from Asian imports were the primary contributors to the
margin decline.
Engine and Power Train Products
Second quarter worldwide Engine and Power Train Products sales increased 3% to
$153.8 million over 1997 sales of $150.0 million due to strong demand for walk
behind rotary lawn mower engines in the U.S. and Europe. Year to date sales of
$317.8 million declined slightly from 1997 sales of $319.6 million. Margins for
the second quarter decreased to 8.6% from 9.3% in 1997. Year to date margins of
8.5% were down from the 9.7% margins earned in 1997. A less favorable product
mix, largely reflecting lower snow thrower engine sales and continued production
inefficiencies at our new engine facility in Georgia, contributed to the lower
margins.
Pump Products
Pump Product sales for the second quarter of 1998 increased 24% to $35.9
million. Sales for the first half of 1998 were $69.0 million representing a 15%
increase over 1997. The sales gains were due primarily to increased market
penetration in water gardening markets. Second quarter margins decreased to
11.7% compared to 12.8% for 1997. Both the second quarter and the year to date
margins were depressed by higher expenses relating to water gardening
promotions.
Outlook
The severely hot weather and market conditions suggest that our U.S. commerical
refrigeration and air conditioning businesses should do well in the second half
of the year. However, the expected impact of a very weak snow thrower season
will likely offset or more than offset these favorable conditions. Most snow
thrower engines are sold in the third and fourth quarters of the year, and it
is anticipated that demand will be down by at least 50% from 1997 levels
because of high inventories resulting from last year's minimal snowfall in key
market areas.
<PAGE> 11
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION -- ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONTINUED
LIQUIDITY, CAPITAL RESOURCES AND RISKS
The Company maintains a strong and liquid financial position. Working capital of
$590.9 million at June 30, 1998 was up from $554.8 million at the end of 1997,
and the ratio of current assets to current liabilities was 2.9 at June 30, 1998
compared to 3.1 at the end of 1997. Capital spending for the first six months of
1998 was $28.4 million. Total capital spending for 1998 should approximate
$80-100 million and will be spent on maintenance at most manufacturing
facilities and capacity expansion in India and Brazil. Working capital
requirements, capital investments and stock repurchase expenditures for 1998 and
early 1999 are expected to be financed primarily through internally available
funds. However, the Company may also utilize long-term financing arrangements in
connection with state investment incentives, and the Company maintains a $100
million revolving credit facility that is available for general corporate
purposes. Further, the Company may, from time to time, utilize short-term
borrowings to hedge foreign currency risk and to finance foreign working capital
requirements.
The Company purchased 230,000 shares of class A common stock during the second
quarter of 1998, as part of the previously announced share repurchase program.
Existing authority covers the purchase of an additional 512,000 shares through
the end of this year.
The Company has reviewed its manufacturing, financial and administrative
information systems and has determined that some of them are not year 2000
compliant. The Company has developed plans for the timely completion of
modifications related to the year 2000. The financial impact of making the
required systems changes is not expected to be material to the Company's
consolidated financial position, results of operations or cash flows. However,
if modifications of the Company's systems, and those of its customers and
suppliers, are not successfully completed on a timely basis, the year 2000 issue
could have a materially adverse impact on the operations of the Company.
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 can be
identified by the use of terms such as "expects", "should", "may", "believes",
"anticipates", "will" and other future tense and forward-looking terminology.
Investors are cautioned that 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 22, 1998. 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 5,010,492 38,646
Todd W. Herrick 5,011,929 37,209
John H. Foss 5,011,526 37,612
Peter M. Banks 5,010,387 38,751
Jon E. Barfield 5,011,829 37,309
J. Russell Fowler 5,010,392 38,746
John W. Gelder 5,011,929 37,209
Stephen L. Hickman 5,011,856 37,282
Ralph W. Babb, Jr. 5,010,487 38,651
</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, 1998.
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 13, 1998 BY: /s/ JOHN H. FOSS
-------------------------- ----------------------
John H. Foss
Vice President, Treasurer and
Chief Financial Officer
Page 12
<PAGE> 13
INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
- ----------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 302,700
<SECURITIES> 0
<RECEIVABLES> 314,800
<ALLOWANCES> 5,800
<INVENTORY> 245,000
<CURRENT-ASSETS> 904,100
<PP&E> 1,029,100
<DEPRECIATION> 476,400
<TOTAL-ASSETS> 1,609,900
<CURRENT-LIABILITIES> 313,200
<BONDS> 0
0
0
<COMMON> 21,400
<OTHER-SE> 991,800
<TOTAL-LIABILITY-AND-EQUITY> 1,609,900
<SALES> 500,400
<TOTAL-REVENUES> 507,600
<CGS> 423,700
<TOTAL-COSTS> 453,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,800
<INCOME-PRETAX> 52,800
<INCOME-TAX> 18,900
<INCOME-CONTINUING> 33,900
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 33,900
<EPS-PRIMARY> 1.57
<EPS-DILUTED> 1.57
</TABLE>
