Document v6mBYbVevq6rdExrbX9mYjQ6E

elOvk Page 20 of 84 Table of Contents See the geographic information included m Note 15 of the Notes to the Consolidated Financial Statements for a summary of revenues by country 2004 vi 2003 Revenues Revenues for 2004 increased 10% compared to 2003 The impact of foreign currency translation increased revenues approximately 2% Electrical Products segment revenues for 2004, which represented 83% of total revenues, increased 11% compared to the prior year Foreign currency translation increased Electrical Products revenue by approximately 2% Growth resulted from strong demand from utility, industrial and commercial customers as well as new product introductions and strategic market penetration programs Realization of price increases aimed to offset higher material costs also contributed to growth Growth was strongest in the power transmission and distribution, lighting and circuit protection businesses, but was present in each of the business units Tools & Hardware segment revenues, which contributed 17% to total 2004 revenues, increased 5% from 2003 Foreign currency translation increased Tools & Hardware revenues by approximately 3% Increased hand tools and power tools sales were partially offset by declines in shipments of large assembly equipment systems Demand for hand tools and power tools was largely driven by new product demand to the retail and industrial distribution markets and strong demand from industrial and retail customers Lower assembly equipment systems revenues resulted from decreased automotive market demand for assembly line equipment systems following a strong shipment year m 2003 2003 vi 2002 Revenues Revenues increased 3% in 2003 compared to 2002 Foreign currency translation increased total 2003 revenues by approximately 2% Electrical Products revenues for 2003, which represented 83% of total revenues, increased 1% over 2002 Foreign currency translation increased Electrical Products revenues by approximately 2% Modest sequential improvement in industrial and electronic markets, plus the benefits of Cooper's new product development and market penetration programs resulted m revenue gams in the hazardous duty, circuit protection and wiring devices businesses Cooper's lighting fixtures business was up slightly, as an improvement in commercial and industrial markets was offset by the impact of inventory management initiatives within the retail channel Cooper's support systems business continued to be pressured by weak nonresidential and telecommunications markets Controls over discretionary spending by utilities negatively impacted the power transmission and distribution equipment market Cooper's European lighting and security business, absent favorable currency translation, experienced slightly reduced sales compared to the prior year Tools & Hardware segment revenues, which contributed 17% to total 2003 revenues, were 11% higher than 2002 Power tools experienced growth in European-based industrial power tools and assembly equipment markets Hand tools sales improved over the prior year primarily as a result of increased demand from the retail channel, driven by new product offerings A weak U S Dollar increased total Tools & Hardware revenues during 2003 by approximately 5% 16 http //www sec gov/Archives/edgar/data/1141982/000095012905001490/h22660el0vk htm 2/6/2006