FINANCIAL HIGHLIGHTS Dollars in thousands, except per shar e amounts 2003 2002 2001 (1) Oper ating Information To t a l r e v e n u e s f r o m c o n t i n u i n g o p e r a t i o n s $ 2,118,516 $ 1,976,732 $ 2,025,163 Operating income fr om continuing operations 173,892 175,971 167,736 Net income 92,217 90,106 71,725 Ef fective income tax rate 31.0% 31.0% 32.5% Ratios (2) Curr ent ratio 1.5:1 1.5:1 1.5:1 Retur n on average capital 8.5% 8.3% 7.4% Retur n on average equity 12.2% 12.6% 11.1% Retur n on average assets 8.5% 8.7% 8.1% Debt to total capitalization 44.1% 49.8% 52.6% Per Shar e Diluted ear nings $ 2.25 $ 2.21 $ 1.79 Book value 19.01 15.90 17.16 Cash dividends declar ed 1.0625 1.0125 .97 Other Information Diluted average shar es outstanding (in thousands) 40,973 40,680 40,066 Number of employees 17,500 17,500 18,700 (1) In or der to comply with the Financial Accounting Standar ds Boar d (F ASB) Statement No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," 2001 information has been r eclassified for comparative purposes. (2) Ratios ar e based on continuing operations. H ARSCO C ORPORA TION 2003 A NNU AL R EPORT 1 Cash Dividends D e c l a r e d P e r S h a r e (In dollars) Y ear-end Market P r i c e o f S t o c k (In dollars) Diluted Earnings P e r S h a r e (In dollars) To t a l R e v e n u e s (Dollars in millions) O p e r a t i n g I n c o m e (Dollars in millions) 01 02 03 Inter national U.S. 2,025 1,977 2,119 01 02 03 Inter national U.S. 167.7 176.0 173.9 01 02 03 1.79 2.21 2.25 01 02 03 34.30 31.89 43.82 01 02 03 .97 1.01 1.06