Controls, and Nacelles Supplier of  the Year Award. Because we provide them with the cost-effective quality products they need, delivered on time, our customers increasingly turn to Woodward as a single source for energy control solutions. the newer aircraft that remain flying even with decreased commercial activity. On the military side, we have been included on both the F135 and F136 engines for the Joint Strike Fighter program, and military repair, overhaul, and spare parts sales have been strong this year. Phil Turner, a key player on my management team with more than four decades of service, will help integrate Aircraft Engine Systems into the global business structure and plans to retire as the process nears completion. I would like to thank Phil for his countless contributions, including his effective management of the aircraft engine business in the months following September 11, 2001.  Ron Fulkrod, a vice president who served in many valuable roles since 1961, will retire at the end of calendar 2002. I want to thank him for his tireless efforts and sincere commitment to the company. Woodward pursues excellence in its evolving board and management teams. Three new members have joined the board in 2002 to build the skills and strength required in today’s business environment. John Cohn, Mary Petrovich, and James Rulseh have outstanding experience in industrial manufacturing and exemplify the qualities of integrity and commitment we seek in our board members.  Board and Senior Management Strategic wins M arket conditions will remain challenging  through 2003. We are confident in our ability to face those challenges head-on and succeed.  STRATEGIC • GROWTH Vern Cassens and Tom Heenan retired from the Board of Directors on September 30, 2002, and we appreciate their many years of diligent service. 3 All public companies were challenged to demonstrate their standards of corporate governance in the wake  of malfeasance by a few high-profile companies. The Sarbanes-Oxley Act of 2002 imposed a number of regulations designed to protect shareholders through improved governance, accountability, and disclosure.  In September, Tom Gendron, who has served 12 years with Woodward in both Industrial Controls and Aircraft Engine Systems, was promoted to president and chief operating officer. This change was part of our shift to integrate all our technologies across the organization to ensure a more  global approach to the range  of markets we serve.  While the sales volume in our industrial markets declined in 2002, Woodward gained share in a number of areas.  Content we provide on large industrial gas turbines has increased over the past few years from nothing to an array of fuel nozzles, valves, and actuators that are placed on almost every new turbine developed, from the 5 megawatt GE-5 to the 150 megawatt GE Frame 9. The value of our products on these large turbines today ranges from $500,000 to over $1 million.  On smaller gas engines for power generation, we now provide the throttle body bypass and waste gate valves (including actuators), gas-metering valves, and ignition systems. In our aircraft engine markets, we executed multi-year extensions on contracts with most of our key original equipment manufacturer customers, including GE Aircraft Engines, and in several instances, expanded the  content we provide on each engine  with manifolds and actuators. These agreements enable Woodward to team with our customers at the planning  stage of new engines and proactively offer customized solutions for fuel- efficient, cost-effective, and reliable engine systems.  The aftermarket, repair and overhaul portion of our aircraft engine business has been stronger than anticipated, as Woodward has more engine content on