Document QXyg7KNnq9dXypwM1N9OXDw57

elOvk Page 21 of 84 Table of Contents Operating Results Electrical Products Tools & Hardware Total Segment Operating Earnings General Corporate Expense Operating Earnings Interest Expense, net Interest Income on Tax Refund Income from Continuing Operations Before Income Taxes Income Tax Expense Income from Continuing Operations Charge Related to Discontinued Operations Net Income Diluted Earnings Per Share Income from Continuing Operations Charge from Discontinued Operations Net Income _______Year Ended December 31, 2004 2003 2002 (in millions, except per share data) $511 2 $4187 $ 376 6 62 7 39 4 14 6 573 9 77 3 458 1 66 1 391 2 36 5 496 6 68 1 -- 392 0 74 1 (28 6) 354 7 74 5 -- 428 5 88 7 346 5 72 2 280 2 66 5 339 8 -- 274 3 126 0 213 7 -- $ 339 8 $ 148 3 $213 7 $ 3 58 -- $ 3 58 $ 2 92 1 34 $ 1 58 $ 2 28 -- $ 2 28 Cooper measures the performance of its businesses exclusive of financing expenses All costs directly attributable to operating businesses are included in segment operating earnings Corporate overhead costs, including costs of traditional headquarters activities, such as treasury, are not allocated to the businesses See Note 15 of the Notes to the Consolidated Financial Statements 2004 vs 2003 Segment Operating Earnings Segment operating earnings were $573 9 million in 2004 compared to $458 1 million in 2003 Electrical Products segment 2004 operating earnings were $5112 million compared to $418 7 million for 2003 Return on revenues was 13 7% in 2004, compared to 12 5% in 2003 Electrical Products segment earnings for 2003 included restructuring charges of $16 4 million Excluding these restructuring charges in 2003, the increase in Electrical Products segment earnings was due primarily to higher revenues and a lower cost structure as a result of restructuring and productivity improvement actions Increases were partially offset by the impact of inflation on materials, energy and components Tools & Hardware segment 2004 operating earnings were $62 7 million compared to $39 4 million for 2003 Return on revenues was 8 5% in 2004 and 5 6% in 2003 The increase primarily reflects benefits of restructuring actions, productivity improvement efforts and the impact of favorable product mix from reduced shipments of lower margin assembly equipment systems, partially offset by higher material costs 2003 vs 2002 Segment Operating Earnings Segment operating earnings were $458 1 million in 2003 compared to $391 2 million in 2002 Electrical Products segment 2003 operating earnings were $418 7 million compared to $376 6 million for 2002 Return on revenues was 12 5% in 2003, compared to 11 3% in 2002 Included in the Electrical Products segment earnings were restructuring charges m 2003 and 2002 totaling $16 4 million and 17 http //www sec gov/Archives/edgar/data/1141982/000095012905001490/h22660el0vk htm 2/6/2006