In summary, the fourth quarter of fiscal 2001 was a very satisfactory quarter. Sales were up, earnings were up, and cash flow is strong. This quarter contributed to the completion of a really excellent year in which sales of $704 million were up 9.4% from the year previous with earnings of $27.9 million, which on a per-share basis, yielded $2.11 per share, up 11% from the year previous. All this was achieved in the midst of economic conditions that I would not call the best of times.


In spite of the undeniable impact that recent events have had on the commercial airplane business, we’ve begun fiscal 2002 anticipating another very good year with a continuation of solid revenue growth, and another 10% increase in earnings per share. During ’02, we’ll adjust to the new lower level of activity in the commercial airplane business, but we’ll see the beginning of more robust activity on the military side with the start of the Joint Strike Fighter, and a much stronger aftermarket component. We believe that this trend will continue in the years beyond ’02. We’ve projected modest growth in our industrial business for ’02 but, eventually, we’ll see an improvement in the general economic conditions that affect our industrial business and, as a result, we are very optimistic about our long-term prospects.

Before we entertain your questions, Bob will provide an update on our balance sheet and cash flow… Bob…

Good morning. At the end of September 2001, our total debt (net of cash) came down by $14M to $359M compared with $373 at the end of June 2001, slightly better than our forecast. The strong quarter is helped by the fact that our semi-annual bond interest payments occur in our first and third fiscal quarters. For the year, our total debt (net of cash) actually increased by $7M. This is the result of spending about $31M for acquisitions during the year. So our net debt reduction, excluding the impact of the acquisitions, was about $24M, in line with our estimates. For FY02, we are again forecasting our Net debt, excluding acquisitions, to be paid down by $20M to $25M.

Capital Expenditures were $7.6M in the quarter and $27M for the year, relative to our depreciation and amortization of $8.2M and $32M, respectively. For FY02, we are planning our CapEx to approximate $25M.

Bob, I think we’re ready for any questions...