63 KENNAMETAL INC.  / AR 2002 1999 1998 1997 1996 1995 1994 1993 1992 $1,914,961 $1,687,516 $1,160,452 $1,079,963 $ 983,873 $ 802,513 $ 598,496 $ 594,533 1,272,090 1,057,089 713,182 625,473 560,867 472,533 352,773 362,967 455,903 419,182 317,315 328,377 293,868 263,300 200,912 196,992 68,594 59,536 10,393 11,296 12,793 13,811 9,549 10,083 24,617 4,595 – 2,666 – 24,749 (1,738) – 32,900 53,900 44,900 43,900 45,000 15,500 14,000 8,100 – – – – – 15,003 – – 39,116 71,197 72,032 69,732 68,294 (4,088) 20,094 12,872 $ 373,582 $ 447,992 $ 175,877 $ 217,651 $ 184,072 $ 130,777 $ 120,877 $ 108,104 434,462 436,472 210,111 204,934 200,680 158,179 115,230 118,248 539,800 525,927 300,386 267,107 260,342 243,098 192,305 200,502 2,000,480 2,091,520 851,243 799,491 781,609 697,532 448,263 472,167 717,852 840,932 40,445 56,059 78,700 90,178 87,891 95,271 861,291 967,667 174,464 131,151 149,730 147,295 110,628 127,954 745,131 735,460 459,608 438,949 391,885 322,836 255,141 251,511 $ 1.31 $ 2.61 $ 2.71 $ 2.62 $ 2.58 $ (0.17) $ 0.93 $ 0.60 1.31 2.58 2.69 2.60 2.56 (0.17) 0.92 0.60 0.68 0.68 0.66 0.60 0.60 0.58 0.58 0.58 24.78 24.66 17.61 16.44 14.75 12.25 11.64 11.64 31.00 41.75 43.00 34.00 34.50 24.63 16.75 17.13 $ 94,993 $ 104,774 $ 73,779 $ 57,556 $ 43,371 $ 27,313 $ 23,099 $ 36,555 13,640 14,380 7,550 7,260 7,030 6,600 4,850 4,980 $ 137 $ 153 $ 159 $ 152 $ 146 $ 125 $ 122 $ 116 29,917 27,263 26,575 26,635 26,486 24,304 21,712 21,452 29,960 27,567 26,786 26,825 26,640 24,449 21,753 21,551 13.5% 45.4% 7.5% 9.8% 22.6% 34.1% 0.7% (3.8)% 33.6 37.4 38.5 42.1 43.0 41.1 41.1 38.9 7.7 11.6 10.9 11.3 12.9 4.7 7.2 5.2 2.0 4.2 6.2 6.5 6.9 n.m. 3.4 2.2 5.3 12.2 15.8 17.0 19.3 n.m. 8.1 5.2 51.9 55.4 27.1 22.5 27.0 30.6 30.2 33.7 2.8x 3.2x 3.4x 3.0x 3.1x 3.1x 3.1x 3.0x 4 Excluding unusual or nonrecurring items in 2002 and the charge for the SFAS No. 142 accounting principle change of $250.4 million, net of tax, net income was $61.6 million; diluted earnings per share were $1.95; return on sales was 3.9 percent; and return on average shareowners’ equity was 11.1 percent. All periods prior to 2002 include goodwill amortization. Excluding unusual or nonrecurring items in 2001 and the charge for the accounting principle change of $0.6 million, net of tax, net income was $66.6 million; diluted earnings per share were $2.17; return on sales was 3.7 percent; and return on average shareowners’ equity was 8.4 percent. Excluding unusual or nonrecurring items in 2000 and an extraordinary loss of $0.3 million, net of tax, net income was $64.7 million; diluted earnings per share were $2.13; return on sales was 3.5 percent; and return on average shareowners’ equity was 8.6 percent. Excluding unusual or nonrecurring items in 1999, net income was $54.3 million; diluted earnings per share were $1.82; return on sales was 2.8 percent; and return on average shareowners’ equity was 7.3 percent. Excluding unusual or nonrecurring items in 1998 and the effects of the Greenfield acquisition, net income was $88.7 million; diluted earnings per share were $3.23; return on sales was 5.3 percent; and return on average shareowners’ equity was 15.2 percent. Excluding unusual or nonrecurring items in 1996, net income was $71.4 million; diluted earnings per share were $2.66; return on sales was 6.6 percent; and return on average shareowners’ equity was 17.4 percent. 5 During 2002 and 1998, we issued 3.5 million and 3.45 million shares of capital stock for net proceeds of $120.6 million and $171.4 million, respectively.