<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 March 31, 1999
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.
<TABLE>
<CAPTION>
Class of Stock Outstanding at April 30, 1999
- --------------------------------------------------------------------------------
<S> <C>
Class B Common Stock, $1.00 par value 5,470,146
Class A Common Stock, $1.00 par value 14,925,605
</TABLE>
<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) MARCH 31, December 31,
1999 1998
=================================================================================================================
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 264.4 $ 277.7
Accounts receivable, trade, less allowance for doubtful 327.3 256.7
accounts of $5.9 million in 1999 and $6.1 million in 1998
Inventories 264.1 275.7
Deferred income taxes 41.6 42.2
Other current assets 23.1 25.5
- -----------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 920.5 877.8
PROPERTY, PLANT AND EQUIPMENT, at cost, net of
accumulated depreciation of $525.2 million in 1999 477.8 508.9
and $564.5 million in 1998
EXCESS OF COST OVER ACQUIRED NET ASSETS 52.6 57.0
DEFERRED INCOME TAXES 47.0 24.6
PREPAID PENSION EXPENSE 80.9 76.5
OTHER ASSETS 11.8 11.4
- -----------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $1,590.6 $1,556.2
=================================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable, trade $ 142.5 $ 121.5
Income taxes payable 25.2 9.7
Short-term borrowings 15.1 10.6
Accrued liabilities 141.6 130.1
- -----------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 324.4 271.9
LONG-TERM DEBT 15.9 17.2
NON-PENSION POSTRETIREMENT BENEFITS 188.9 187.6
PRODUCT WARRANTY AND SELF-INSURED RISKS 31.3 32.5
ACCRUAL FOR ENVIRONMENTAL MATTERS 35.9 36.7
PENSION LIABILITIES 13.8 14.6
- -----------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 610.2 560.5
- -----------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Class A common stock, $1 par value; authorized 75,000,000
shares; issued and outstanding 15,070,105 shares in 1999 15.0 15.4
and 15,410,438 shares in 1998
Class B common stock, $1 par value; authorized 25,000,000 shares; issued and
outstanding 5,470,146 shares
5.5 5.5
Retained earnings 1006.8 986.6
Accumulated other comprehensive income:
Foreign currency translation adjustments (46.9) (11.8)
- -----------------------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 980.4 995.7
- -----------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,590.6 $1,556.2
=================================================================================================================
</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 amounts) Three Months Ended
March 31,
--------------------
1999 1998
=================================================================================================================
<S> <C> <C>
NET SALES $489.4 $459.9
COSTS AND EXPENSES
Cost of sales and operating expense 405.9 397.4
Selling and administrative expense 31.6 28.2
------------------------------------------------------------------------------------------------------------
OPERATING INCOME 51.9 34.3
OTHER INCOME (EXPENSE)
Interest expense (3.4) (2.4)
Interest income and other, net 9.8 7.5
Nonrecurring gain on currency hedge 8.6 ---
------------------------------------------------------------------------------------------------------------
INCOME BEFORE TAXES ON INCOME 66.9 39.4
Taxes on income 24.4 14.5
------------------------------------------------------------------------------------------------------------
NET INCOME $ 42.5 $ 24.9
=================================================================================================================
BASIC AND DILUTED EARNINGS PER SHARE $ 2.05 $ 1.15
- -----------------------------------------------------------------------------------------------------------------
CASH DIVIDENDS DECLARED PER SHARE $ 0.30 $ 0.30
- -----------------------------------------------------------------------------------------------------------------
</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>
Three Months Ended
(Dollars in millions) March 31,
---------------------------
1999 1998
===================================================================================================================
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 42.5 $ 24.9
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 17.9 19.1
Accounts receivable (89.6) (102.2)
Inventories 0.5 13.3
Payables and accrued expenses 70.8 53.3
Prepaid pension expense (4.4) (2.5)
Other (7.6) (3.7)
- -------------------------------------------------------------------------------------------------------------------
Cash Provided By Operating Activities 30.1 2.2
- -------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (15.7) (12.7)
- -------------------------------------------------------------------------------------------------------------------
Cash Used in Investing Activities (15.7) (12.7)
- -------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid (6.2) (6.5)
Increase (decrease) in borrowings, net 4.2 (1.9)
Repurchases of common stock (16.5) (10.9)
- -------------------------------------------------------------------------------------------------------------------
Cash Used in Financing Activities (18.5) (19.3)
- -------------------------------------------------------------------------------------------------------------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH (9.2) (2.6)
- -------------------------------------------------------------------------------------------------------------------
DECREASE IN CASH AND CASH EQUIVALENTS (13.3) (32.4)
CASH AND CASH EQUIVALENTS:
Beginning of period 277.7 304.1
- -------------------------------------------------------------------------------------------------------------------
End of period $264.4 $ 271.7
===================================================================================================================
</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 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, 1998 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, 1998. 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) MARCH 31, December 31,
1999 1998
===================================================================================================
<S> <C> <C>
Raw material and work in process $155.1 $176.5
Finished goods 90.0 81.9
Supplies 19.0 17.3
---------------------------------------------------------------------------------------------------
$264.1 $275.7
---------------------------------------------------------------------------------------------------
</TABLE>
3. In anticipation of the devaluation of the Brazilian Real in early 1999,
the Company's Brazilian subsidiary invested in forward exchange contracts
denominated in $25 million U.S. dollars. This hedging activity was settled
in the first quarter of 1999, resulting in the recognition of an $8.6
million nonrecurring gain ($5.6 million or $.27 per share after tax).
Under applicable accounting standards, foreign currency transaction gains
and losses are recorded in net income, and foreign currency translation
gains and losses are reflected in other comprehensive income.
Page 5
<PAGE> 6
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION - ITEM 1
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS, CONTINUED
4. Total comprehensive income for the Company is comprised of net earnings
and net currency translation gains and losses. The following table reports
comprehensive income for the three months ended March 31, 1999 and 1998.
<TABLE>
<CAPTION>
Three Months Ended
(Dollars in Millions) March 31,
----------------------------------
1999 1998
======================================================================================================
<S> <C> <C>
Net income $42.5 $24.9
Other comprehensive income (expense):
Foreign currency translation adjustments (35.1) (6.0)
------------------------------------------------------------------------------------------------------
Total Comprehensive income $ 7.4 $18.9
======================================================================================================
</TABLE>
5. 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 were 20,712,322 at March 31, 1999 and 21,742,062
at March 31, 1998.
6. During the first quarter of 1999, Tecumseh Products Company repurchased
340,000 shares of its Class A common stock at a cost of $16.5 million.
7. 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 March 31, 1999, the Company had an accrual of $33.1 million
($33.8 million at December 31, 1998) 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 the results of the EPA-overseen remediation investigation and
feasibility study and on various assumptions concerning the areas that
will be required to undergo active remediation. Significant assumptions
underlying the estimated costs are that active remediation will be limited
to the upper river near the Company's facility and that only monitored
natural armoring will be required in the middle river and 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 in 1999, 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, the extent of
any natural resource damages, and the outcome of any related litigation.
Page 6
<PAGE> 7
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.
Although results of ongoing feasibility studies are not yet available, the
Company has provided for preliminary investigation expenses. 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.
9. 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.
10. The Company has three reportable segments based on the similarity of
products produced: Compressor Products, Engine & Power Train Products, and
Pump Products. There has been no change since the prior year-end in the
methods used to determine reportable segments or in measuring segment
income. There has been no material change in segment total assets (other
than changes due to normal, cyclical business operations) since December
31, 1998. Revenues and operating income by segment for the periods
indicated are as follows:
Page 7
<PAGE> 8
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION - ITEM 1
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS, CONTINUED
BUSINESS SEGMENT DATA
<TABLE>
<CAPTION>
Three Month Ended
(Dollars in Millions) March 31,
-----------------------
1999 1998
-----------------------
<S> <C> <C>
NET SALES:
Compressor Products $249.5 $262.8
Engine and Power Train Products 209.4 164.0
Pump Products 30.5 33.1
-----------------------
Total Net Sales $489.4 $459.9
=======================
OPERATING INCOME:
Compressor Products $ 24.6 $ 19.2
Engine and Power Train Products 26.7 13.7
Pump Products 3.0 3.8
Corporate and consolidating items (2.4) (2.4)
-----------------------
Total Operating Income 51.9 34.3
Interest expense (3.4) (2.4)
Interest income and other, net 9.8 7.5
Nonrecurring gain 8.6 ---
-----------------------
INCOME BEFORE TAXES ON INCOME $ 66.9 $ 39.4
=======================
</TABLE>
Page 8
<PAGE> 9
INDEPENDENT ACCOUNTANTS' REPORT
May 10, 1999
Tecumseh Products Company
Tecumseh, Michigan
We have reviewed the consolidated condensed balance sheet of Tecumseh
Products Company and Subsidiaries as of March 31, 1999, and the related
consolidated condensed statements of income and cash flows for the three months
ended March 31, 1999 and 1998. 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, 1998, 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 29, 1999, 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, 1998, 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 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
RESULTS OF OPERATIONS
Consolidated sales for the first quarter of $489.4 million increased
6.4% over the 1998 first quarter. Net income for the first quarter of 1999
totaled $42.5 million, or $2.05 per share, including a nonrecurring gain of $8.6
million ($5.6 million or $.27 per share after tax) on currency hedging.
Excluding the nonrecurring gain, 1999 first quarter earnings were $36.9 million
or $1.78 per share as compared with earnings of $24.9 million or $1.15 per share
in the first quarter of 1998. Excellent sales growth was achieved in the Engine
and Power Train business and strong earnings growth was recorded in both the
Compressor and Engine and Power Train businesses.
Compressor Products
Compressor Products sales declined somewhat from 1998 levels
principally because of lower sales to customers in Brazil. In early January the
Brazilian currency, the Real, was sharply devalued on international currency
markets and the government of Brazil raised interest rates. The resultant
economic slowdown within the country has reduced Brazilian domestic demand for
refrigeration and air conditioning products that utilize our components. On the
other hand, the devaluation of the Real has had a beneficial impact on margins
earned on our products exported from Brazil. Largely because of this more
favorable profitability on Brazilian exports, our overall Compressor Products
margins improved to 9.9% in the first quarter of 1999 as compared with margins
of 7.3% in the first quarter of 1998.
Compressor Products sales and earnings for the first quarter of 1999
improved modestly in North America but were down in Europe in comparison with
the 1998 first quarter.
Engine and Power Train Products
Our Engine and Power Train Group set new records with sales of $209.4
million in the first quarter of 1999 for an increase of 28% over the first
quarter of 1998. This increase reflected strong demand across all the Company's
product lines, including lawn and garden applications as well as utility
applications, such as engines for generators. Operating income nearly doubled
from 1998 levels to $26.7 million in the 1999 first quarter. Margins improved
from 8.3% in 1998 to 12.8% in the 1999 first quarter as the result of better
coverage of fixed costs as well as the elimination of start-up losses at the
Company's Douglas, Georgia facility.
Pump Products
Pump Products sales were down approximately 8% from 1998 levels
reflecting carryover inventories of water gardening products at large retailers.
Margins declined somewhat due to the lower sales volume.
Page 10
<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
Outlook
Present business conditions suggest that the fundamentals influencing
the first quarter results likely will continue at least through the second
quarter. We expect strong demand for engine and power train products to continue
to test the extent of our productive capacity during the second quarter. We also
expect second quarter Brazilian export sales to favorably influence compressor
products margins. This should provide the foundation for an excellent 1999.
LIQUIDITY, CAPITAL RESOURCES AND RISKS
The Company continued to maintain a strong and liquid financial
position. Working capital of $596.1 million at March 31, 1999 was down slightly
from $605.9 million at the end of 1998, and the ratio of current assets to
current liabilities was 2.8. First quarter capital spending was $15.7 million.
Total capital spending for 1999 should approximate $70 - 80 million of which
approximately half will be spent on capacity expansion primarily in India and
Brazil. Working capital requirements and planned capital, investment and stock
repurchase expenditures for 1999 and early 2000 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 may from time to time utilize short-term borrowings to hedge
currency risk and to finance foreign working capital requirements. The Company
maintains a $100 million revolving credit facility that is available for general
corporate purposes.
The Company purchased approximately 340,000 shares of Class A common
stock during the first quarter of 1999, as part of the previously announced
share repurchase program. Existing authority covers the purchase of an
additional 660,000 shares through the end of this year.
The Company has reviewed its manufacturing, financial and
administrative information systems and has determined that it needs to modify or
replace several of its software systems that are not Year 2000 compliant. The
Company has developed a plan for the timely completion of modifications related
to the Year 2000. The Company's objective is to have all its critical systems
Year 2000 compliant and to have developed contingency plans by mid 1999. This
objective allows time for further testing and verification of these systems as
necessary and the conversion of less critical systems. The financial impact of
making the required system 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.
Page 11
<PAGE> 12
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION -- ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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.
PART I. FINANCIAL INFORMATION -- ITEM 3
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
No information is presented in response to this item because the
Company has no material market risk relating to derivative financial
instruments, derivative commodity instruments, or other financial instruments.
Page 12
<PAGE> 13
TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
PART II. OTHER INFORMATION
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 March 31, 1999.
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: May 12, 1999 BY: /s/ JOHN H. FOSS
---------------------- --------------------------
John H. Foss
Vice President, Treasurer and
Chief Financial Officer
Page 13
<PAGE> 14
Exhibit Index
-------------
Exhibit No. Description
- ----------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 264,400
<SECURITIES> 0
<RECEIVABLES> 333,200
<ALLOWANCES> 5,900
<INVENTORY> 264,100
<CURRENT-ASSETS> 920,500
<PP&E> 1,003,000
<DEPRECIATION> 525,200
<TOTAL-ASSETS> 1,590,600
<CURRENT-LIABILITIES> 324,400
<BONDS> 0
0
0
<COMMON> 20,500
<OTHER-SE> 959,900
<TOTAL-LIABILITY-AND-EQUITY> 1,590,600
<SALES> 489,400
<TOTAL-REVENUES> 507,800
<CGS> 405,900
<TOTAL-COSTS> 405,900
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,400
<INCOME-PRETAX> 66,900
<INCOME-TAX> 24,400
<INCOME-CONTINUING> 42,500
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 42,500
<EPS-PRIMARY> 2.05
<EPS-DILUTED> 2.05
</TABLE>
