UNAUDITED CROMPTON & KNOWLES CORPORATION AND SUBSIDIARIES Consolidated Statements of Earnings Quarters and six months ended June 25, 1994 and June 26, 1993 (In thousands, except per share data) Quarters ended Six months ended June 25, June 26, June 25, June 26, 1994 1993 1994 1993 Net sales $ 154,452 $ 147,677 $ 288,046 $ 281,420 Cost of products sold 103,500 98,824 194,410 189,886 Selling, general and administra 22,362 20,932 42,166 41,093 Depreciation and amortization 3,173 3,171 6,399 6,321 Interest 202 303 384 711 Other income (91) (322) (635) (876) Total costs and expenses 129,146 122,908 242,724 237,135 Earnings before income taxes 25,306 24,769 45,322 44,285 Income taxes 9,199 9,116 16,457 16,337 Net earnings $ 16,107 $ 15,653 $ 28,865 $ 27,948 Net earnings per common share $ .31 $ .30 $ .56 $ .54 Dividends per common share $ .12 $ .10 $ .22 $ .18 Average shares outstanding 51,791 52,176 51,935 52,155 See accompanying notes to the consolidated financial statements. - 2 -