| 4 | Financial Highlights |
| 4 | Letter to Shareholders |
| 4 | Capabilities Overview |
| 4 | Every Step of the Way |
| 4 | Financials |
| 4 | Board of Directors |
| 4 | Leadership |
| 4 | Additional Information |
| 4 | Our Values |
Financial Highlights
In Millions, Except Per-Share Data And Ratios
| 2002 | % change | 2001 | % change | 2000 | |
| CONTINUING OPERATIONS | |||||
| Net Sales | $4,754.9 | (10.3)% | $5,297.8 | (8.1)% | $5,764.3 |
| Value-added revenue | 2,756.4 | (8.1) | 3,000.5 | (9.2) | 3,305.3 |
| Gross profit | 867.5 | (4.7) | 910.5 | (17.1) | 1,098.8 |
| Earnings from operations | 244.9 | 66.3 | 147.3 | (70.6) | 501.0 |
| Net income1 | 142.2 | 468.8 | 25.0 | (90.6) | 266.9 |
| Earnings per diluted share1 | 1.24 | 490.5 | 0.21 | (90.3) | 2.17 |
| OTHER FINANCIAL DATA | |||||
| Net cash flow from operations | $408.9 | (25.4)% | $548.4 | (26.0)% | $740.6 |
| Operating working capital3 | 98.4 | (19.7) | 122.6 | (54.6) | 270.0 |
| Free cash flow4 | 167.3 | (39.2) | 275.1 | (45.4) | 503.5 |
| Return on average invested capital1,5 | 9.4% | 203.2 | 3.1% | (76.3) | 13.1% |
| Return on average invested capital2,5 | 10.4% | 4.0 | 10.0% | (24.2) | 13.2% |
| SHARE INFORMATION | |||||
| Full year average diluted shares | 114.4 | (3.5)% | 118.5 | (3.7)% | 123.1 |
| Diluted shares outstanding at Dec. 31 | 113.6 | (1.4) | 115.2 | (6.1) | 122.7 |
| Annual dividend per common share | $0.98 | 4.3 | $0.94 | 4.4 | $0.90 |
| Notes 1. Includes the following significant items affecting comparability: 2002: restructuring and impairment charges of $89 million ($54 million after-tax, or $0.47 per diluted share), benefit from the reversal of excess COLI tax reserves of $30 million ($30 million after-tax, or $0.26 per diluted share), and gain on sale of businesses and investments of $6 million ($6 million after-tax, or $0.06 per share); 2001: restructuring and impairment charges of $196 million ($137 million after-tax, or $1.15 per diluted share), gain on sale of businesses and investments of $7 million ($7 million after-tax, or $0.05 per diluted share), and loss on investment write-downs of $19 million ($19 million after-tax, or $0.16 per diluted share); 2000: gain on sale of shares received from the demutualization of the company's basic life insurance carrier of $13 million ($8 million after-tax, or $0.06 per diluted share). 2. Ratio excludes items listed in note 1 (above). 3. Operating working capital represents receivables, inventories and prepaid expenses, minus accounts payable, accrued compensation and other accrued liabilities. 4. Free cash flow represents net cash flow from operations minus capital expenditures. 5. Computed on 12-month rolling net income divided by a 13-month average of debt and equity. | |||||
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