Financial Highlights $ Millions, except per share amounts 2000 1999 Net sales $6,597 $6,639 Gross profit  1,259 1,418 Selling and administrative expenses 776 781 Research and engineering expenses 244 245 Net (income) expense from joint ventures and alliances (9) 28 Other (income) expense, net (1) 8 Earnings before interest and taxes (EBIT): Before special charges 249 356 As reported 89 296 Net earnings  8 160 Basic earnings per share .20 4.16 Diluted earnings per share .20 4.13 Dividends per share 1.20 1.125 Highlights Power Generation Global supplier of diesel and natural gas-powered generator sets and generator set  components from five kilowatt  to multi-megawatt installations.  North American market leader  in auxiliary generator sets for recreational vehicles (RVs) and recreational marine applications. Power Systems Diesel and natural gas- powered generator  sets — rental and installed;  digital control systems;  paralleling switchgear. Mobile Systems Onan gasoline, liquified propane, and diesel-fueled  auxiliary generator sets  from 3 kW to 12.5 kW and  associated controls. Alternators and Engines Newage synchronous AC  alternators and associated  control systems. Generator  drive engines and digital  control systems. Public- and investor-owned  utilities; telecommunications  providers; self-generating  manufacturers; any business  or public facility with a  need for self-generated or  standby power. RV, specialty vehicle and marine pleasurecraft original equipment manufacturers (OEMs). Alternators and engines for  industrial, marine, commercial,  construction, telecommunica- tions, mining, generator drive  markets and other standby or  continuous power applications. For the second consecutive  year, EBIT increased by almost  100 percent.  Power Rent, offering temporary  rental generator sets, expanded coverage across all of North  America through our distributor  network. Launched www.funroads.com  for our RV customers. Participated in advanced  research on ten kW fuel  cells in conjunction with the  US Department of Energy. Increased penetration into  fast growing Internet and  telecommunications markets  where our digital control  systems and ready standby  power are critical. Business Unit Products Customers & Markets 2000 Highlights