Operating profit for the fourth quarter was breakeven. This compares to a $200,000 loss in the third quarter and to our forecasted profit for the quarter of $700,000. Our fourth quarter operating profit was affected by the lower-than-forecast administration set sales, moving costs related to the McKinley product line, and a slightly unfavorable product mix. The purchase accounting adjustments in the quarter totaled $1.3 million. For the year, operating profit for Medical Devices was a loss of $200,000 including purchase accounting adjustments of $3.9 million.

What we learned in the fourth quarter doesn't alter our outlook on '07. We expect that the McKinley products will add about $7 million to '07 sales and that in total our new Medical Devices segment will generate sales of about $40 million and operating profit of $8 million or about 20% of sales, after inclusion of continuing purchase accounting adjustments estimated at $3.4 million in '07.

Guidance for '07

Now, let me summarize our guidance for '07. Sales have changed only slightly to include the $7 million of McKinley products. We've moderated margins slightly in the Components Group.

In total, we're forecasting sales at $1.438 billion plus or minus about $10 million. If we achieve the mid-range forecast, it will represent a sales increase of 10%.

We're forecasting operating profit of about $181 million or 12.6% of sales. We're projecting a continuation of high R&D expense in aircraft and an increase in R&D for the Company as a whole. Selling and admin. expense will be up in proportion to sales, and interest will be about the same. We're forecasting net earnings in the range of $94.4 million to $97.7 million. The middle of the range, $96.1 million, will be an 18% increase. Since we sold shares in the early part of '06, our average share count will creep up by 4% and on a per share basis the midpoint of our range, $2.25, will be a 14% increase over the $1.97 we achieved in '06. We expect that this will be our 13th consecutive year of positive growth in earnings per share and, over that period, our compound growth rate has been 18%.

We'll stick with the same quarterly forecast we provided ninety days ago - $.51 in the first quarter, $.55 in the second, and then $.58 and $.61.

I'll now turn you over to Bob Banta.

Cash flow from operations was $47 million in the fourth quarter. That's up substantially from $4 million in Q3. We collected a fair amount of receivables and the $18 million contribution to our U.S. Defined Pension Plan in Q3 got us caught up so that we made none in Q4.

Regarding that pension plan, we ended '06 with plan assets in the U.S. of $310 million versus an accumulated benefit obligation (ABO) of $301 million. That's the first time we've been in a surplus position in many years. We're still estimating making $30 million of contributions in fiscal '07. However, we'll monitor this plan for a possible reduction of this amount depending on where discount rates might be next summer.