62 Eleven-Year Financial Highlights Notes 1 Amounts and percentages for 2000, 1999, 1998 and 1997 were adjusted to reclassify shipping and handling fees  to net sales and shipping and handling costs to cost of goods sold as required by Emerging Issues Task Force 00-10, “Accounting for Shipping and Handling Fees and Costs.” It was not practicable to restate periods prior to 1997. 2 In 2002, unusual or nonrecurring items primarily reflect restructuring charges incurred related to operational improvement programs and a loss on divestiture. Unusual or nonrecurring items reflect costs associated with restructuring and asset impairment charges related to operational improvement programs, a loss on divestiture and costs primarily associated with the JLK tender offer in 2001; costs associated with environmental remediation, strategic alternatives and restructuring and asset impairment charges related to operational improvement programs initiated in 2000; costs associated with the acquisition of shares of Toshiba Tungaloy and restructuring and asset impairment charges related to operational improvement programs initiated in 1999; deferred financing costs related to a postponed public offering intended to have been offered in connection with the acquisition of Greenfield in 1998; restructuring costs for the relocation of the North America Metalworking Headquarters from Raleigh, N.C. to Latrobe, Pa., and to close a manufacturing facility in 1996; restructuring and integration costs associated with the acquisition of Hertel AG in 1994; and settlement and partial reversal of accrued patent litigation costs in 1993. 3 Accounting changes in 2002 reflect the non-cash charge related to goodwill impairment recorded as a result of the adoption of SFAS No. 142. In 2001, this charge reflects the change in the method of accounting for derivative financial instruments (SFAS No. 133) and in 1994, the changes in the methods of accounting for postretirement health care and life insurance benefits (SFAS No. 106) and income taxes (SFAS No. 109) are reflected. (dollars in thousands, except per share data) 2002 2001 2000 Operating Results Net sales (1) $1,583,742 $1,807,896 $1,866,578 Cost of goods sold  (1) 1,072,918 1,192,176 1,228,685 Operating expense  (1) 389,396 425,641 434,136 Interest expense 32,627 50,381 55,079 Restructuring, asset impairment and other special charges (2) 30,189 21,458 22,412 Income taxes 18,900 37,300 43,700 Accounting changes, net of tax  (3) 250,406 599 – Net (loss) income  (4) (211,908) 53,288 51,710 Financial Position Net working capital $ 375,284 $ 386,711 $ 397,403 Inventories 345,076 373,221 410,885 Property, plant and equipment, net 435,116 472,874 498,784 Total assets 1,523,611 1,825,442 1,941,121 Long-term debt, including capital leases 387,887 582,585 637,686 Total debt, including capital leases 411,367 607,115 699,242 Total shareowners’ equity  (5) 713,962 796,769 780,254 Per Share Data Basic (loss) earnings $ (6.80) $ 1.74 $ 1.71 Diluted (loss) earnings  (4) (6.70) 1.73 1.70 Dividends 0.68 0.68 0.68 Book value (at June 30) 20.51 25.84 25.56 Market price (at June 30) 36.60 36.90 21.44 Other Data Capital expenditures $ 44,040 $ 59,929 $ 50,663 Number of employees (at June 30) 11,660 12,570 13,210 Average sales per employee  (1) $ 131 $ 139 $ 140 Basic weighted average shares outstanding (000)  (5) 31,169 30,560 30,263 Diluted weighted average shares outstanding (000)  (5) 31,627 30,749 30,364 Key Ratios Sales growth (1)  (12.4)% (3.1)% (2.5)% Gross profit margin (1)  32.3 34.1 34.2 Operating profit margin (1) 5.8 8.7 8.5 Return on sales (1) (4) (13.4) 2.9 2.8 Return on average shareowners’ equity (4) (38.3) 6.8 6.9 Total debt to total capital  36.2 42.9 45.6 Inventory turnover  (1) 2.9x 3.1x 2.9x n.m. – Not meaningful