(Dollar amounts in millions, except per share data)

Year Ended December 31, 2002 2001 2000




Sales $5,128 $5,158 $5,043
Cost of sales, exclusive of depreciation and amortization 2,950 3,060 3,075
Selling, general and administrative 751 699 683
Depreciation and amortization 483 499 471
Research and development 69 66 65
Other income (expenses) – net 48 (34) (42)




OPERATING PROFIT 923 800 707
Interest expense 206 224 224
 


INCOME BEFORE TAXES 717 576 483
Income taxes 158 135 103
 


INCOME OF CONSOLIDATED ENTITIES 559 441 380
Minority interests (20) (18) (27)
Income from equity investments 9 9 10
 


INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGES 548 432 363
Cumulative effect of accounting changes (139) (2)
 


NET INCOME $  409 $  430 $  363




BASIC EARNINGS PER SHARE:   
Income before cumulative effect of accounting changes $ 3.36 $ 2.68 $ 2.28
Cumulative effect of accounting changes (0.85) (0.01)
Net income $ 2.51 $ 2.67 $ 2.28
DILUTED EARNINGS PER SHARE:   
Income before cumulative effect of accounting changes $ 3.33 $ 2.64 $ 2.25
Cumulative effect of accounting changes (0.85) (0.01)
Net income $ 2.48 $ 2.63 $ 2.25
WEIGHTED AVERAGE SHARES OUTSTANDING (000’s):   
Basic shares outstanding 162,768 161,510 159,123
Diluted shares outstanding    164,745   163,507   161,092

The accompanying Notes are an integral part of these financial statements