UNAUDITED CROMPTON & KNOWLES CORPORATION AND SUBSIDIARIES Consolidated Statements of Earnings Quarters and six months ended July 1, 1995 and June 25, 1994 (In thousands, except per share data) Quarters ended Six months ended July 1, June 25, July 1, June 25, 1995 1994 1995 1994 Net sales $ 175,617 $ 154,452 $ 343,810 $ 288,046 Cost of products sold 123,799 103,500 240,358 194,410 Selling, general and administrative 26,736 22,362 52,158 42,166 Depreciation and amortization 3,769 3,173 7,494 6,399 Interest 2,034 202 3,602 384 Other income (13) (91) (241) (635) Total costs and expenses 156,325 129,146 303,371 242,724 Earnings before income taxes 19,292 25,306 40,439 45,322 Income taxes 7,234 9,199 15,185 16,457 Net earnings $ 12,058 $ 16,107 $ 25,254 $ 28,865 Net earnings per common share $ .25 $ .31 $ .52 $ .56 Dividends per common share $ .135 $ .12 $ .255 $ .22 Average shares outstanding 48,577 51,791 48,569 51,935 See accompanying notes to the consolidated financial statements. - 2 -