Our industrial grating business, IKG Industries, saw its 2002 market conditions continue to suffer from the ongoing U.S. manufacturing and non-residential construction downturn. Significant steps continue to be taken to further pare operating costs in alignment with the current volumes. Patterson-Kelley achieved a record year in its hot water boiler line. Performance was led by the all-new Modu- Fire® boiler, a compact copper coil design that provides heating and hot water to schools, nursing homes, and other institutions. First year sales greatly exceeded projections. Patterson-Kelley's industry-first Modu-Fire ® boilers exceeded initial sales targets and helped PK's heat transfer division post a record year. Rail grinding is regarded  as one of the most effective maintenance practices for extending rail life and reducing the potential for rail failures. Harsco Track Technologies rail grinders are setting new standards for efficiency and performance. Individually-controlled grinding stones precisely reprofile rail surfaces to maintain the correct wheel-to-rail contact interface and remove surface defects such as corrugation. HARSCO CORPORATION 2002 ANNUAL REPORT 11