32 Hormel Foods Corporation See notes to consolidated financial statements. Fiscal Year Ended (In Thousands, Except Per Share Amounts) October 30, 2004  October 25, 2003 October 26, 2002 Net sales $4,779,875 $4,200,328 $3,910,314 Cost of products sold 3,658,870 3,187,175 2,947,461 Gross Profit 1,121,005 1,013,153 962,853 Expenses: Selling and delivery 621,694 583,964 558,354 Administrative and general 146,488 124,665 93,990 Gain on sale of business (18,063) 0 0 Total Expenses and Gain on Sale of Business 750,119 708,629 652,344 Equity in earnings of affiliates 6,458 5,886 7,741 Operating Income 377,344 310,410 318,250 Other income and expense: Interest and investment income 14,363 10,785 7,145 Interest expense (27,142) (31,864) (31,425) Earnings Before Income Taxes 364,565 289,331 293,970 Provision for income taxes 132,902 103,552 104,648 Net Earnings $ 231,663  $ 185,779  $ 189,322 Net Earnings Per Share: Basic $ 1.67  $ 1.34  $ 1.36  Diluted $ 1.65  $ 1.33  $ 1.35 Weighted-Average Shares Outstanding: Basic 138,596 138,440 138,706 Diluted 140,179 139,710 140,292 consolidated statements of operations