H O N I N D U S T R I E S I n c . a n d S U B S I D I A R I E S C O N S O L I D A T E D S T A T E M E N T S O F I N C O M E (Amounts in thousands, except for per share data) For the Years  2003 2002 2001 Net sales $  1,755,728 $ 1,692,622  $  1,792,438 Cost of products sold  1,116,513 1,092,743  1,181,140 Gross Profit  639,215 599,879  611,298 Selling and administrative expenses  480,744 454,189  464,206 Restructuring related charges  8,510 3,000  24,000 Operating Income  149,961 142,690  123,092 Interest income  3,940 2,578  1,717 Interest expense  2,970 4,714  8,548 Income Before Income Taxes  150,931 140,554  116,261 Income taxes  52,826 49,194  41,854 Net Income  $  98,105 $  91,360  $  74,407 Net Income Per Common Share – Basic $  1.69 $  1.55  $  1.26 Weighted Average Shares Outstanding – Basic  58,178,739  58,789,851   59,087,963 Net Income Per Common Share – Diluted  $  1.68 $  1.55  $  1.26 Weighted Average Shares Outstanding – Diluted  58,545,353  59,021,071   59,210,049 The accompanying notes are an integral part of the consolidated financial statements. 39