[KENNAMETAL LOGO] FROM: KENNAMETAL INC.
P.O. Box 231
Latrobe, PA 15650
Investor Relations
724-539-6141
Contact: Beth A. Riley
Media Relations
724-539-4662
Contact: Riz Chand
DATE: April 30, 2003
FOR RELEASE: Immediate
KENNAMETAL REPORTS THIRD QUARTER EARNINGS
Delivers Another Strong Quarter of Cash Generation
LATROBE, Pa., April 30, 2003 - Kennametal Inc. (NYSE: KMT) today reported fiscal
2003 third quarter earnings of $0.27 per diluted share compared with earnings of
$0.42 per diluted share last year. Excluding special items in each period,
diluted earnings per share were $0.38 for the quarter, against last year's
earnings per share of $0.53. In accordance with SEC Regulation G, the attached
financial charts include a reconciliation of all non-GAAP financial measures in
this release to the most directly comparable GAAP measure.
As expected, fiscal 2003 third quarter earnings included $0.08 dilution from the
Widia acquisition, and $0.04 of reduced pension income.
Earnings Per Share Excluding Special Items
Company Guidance (03/27/03) $0.33 to $0.35
Analyst Estimate Range (04/25/03) $0.33 to $0.35
Earnings, Excluding Special Items $0.38
Through the first nine months, diluted earnings per share were $0.65, above last
year's loss per share of $7.23. Excluding special items in each period, diluted
earnings per share were $0.96 against last year's earnings per share of $1.28.
The prior year included a non-cash SFAS 142 impairment charge associated with
the adoption of SFAS No. 142 "Goodwill and Other Intangible Assets".
Kennametal Chairman, President and Chief Executive Officer, Markos I.
Tambakeras, said, "We continued our disciplined management of the business
through a quarter challenged by a faltering global economy. I was particularly
pleased that our relentless focus on working capital management contributed to
another quarter of strong cash flow. Despite significant weakness in our key
North American and European markets in what is historically our strongest
quarter of the year, we again improved our gross margins as the Kennametal Lean
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Enterprise, prior restructurings and ongoing pricing discipline continued to
deliver additional benefits. In addition, I remain very pleased with the rapid
pace and productive execution of the Widia integration. Our strong market
position in all major markets is allowing Kennametal to weather a sustained
period of stagnation in manufacturing. "
- -------------------------------------------------------------------------------
Third Quarter Highlights
- -------------------------------------------------------------------------------
- - Sales of $459.2 million were 17 percent above last year's $393.9 million.
Sales growth was driven by a 12 percent positive benefit from net
acquisitions and divestitures and a 4 percent benefit from foreign currency
exchange.
- - Gross profit margin, excluding special charges in both periods, was 33.1
percent, an increase of 40 basis points compared with the third quarter of
fiscal 2002. Manufacturing efficiencies from the Kennametal Lean Enterprise
and a benefit from foreign currency exchange offset the combination of
lower Widia margins and $0.5 million in decreased pension income. Reported
gross profit margin of 33.0 percent increased 60 basis points versus the
prior year quarter.
- - Operating expense for the quarter increased 26 percent, to $120.8 million,
excluding special charges. Excluding $14.5 million in Widia operating
expense, $7.4 million unfavorable foreign currency exchange and $1.7
million in decreased pension income; operating expense was just 2 percent
above prior year. Reported operating expense of $122.6 million was 28
percent over the prior year.
- - The current quarter included net special charges of $5.2 million, or $0.10
per diluted share, primarily associated with the previously announced Widia
integration efforts. Prior-year results included special charges of $5.2
million, or $0.11 per diluted share, associated with previously announced
restructurings. The charges were divided approximately evenly between the
J&L/FSS business improvement plan and the Metalworking and Electronics
plan.
- - Interest expense of $9.0 million was 21 percent above the same quarter last
year on a higher average debt for the quarter, associated with the Widia
acquisition, and higher average borrowing rates.
- - As expected, the effective tax rate, for the March 2003 quarter was 30.0
percent, compared with prior year of 32.0 percent.
- - Excluding special items, net income was $13.3 million for the quarter; a 20
percent decrease compared to net income of $16.7 million last year
including the impact of Widia dilution and reduced pension income. Reported
net income was $9.7 million against net income of $13.1 million in the same
quarter last year.
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- - Decreased pension income reduced earnings per diluted share by $0.04 for
the quarter versus the prior year. Pretax income for the quarter was
reduced by $2.2 million (non-cash) compared to the same period in fiscal
2002 due to the effect of a decrease in the expected rate of return on
Kennametal's pension fund assets, coupled with lower discount rates
associated with pension and other postretirement benefit liabilities.
- - Free operating cash flow remains strong and on plan at $26.7 million,
versus $33.1 million in the same period last year. Primary working capital
continues to be tightly controlled with its ratio to sales at 27.6 percent,
versus 28.1 percent in the prior year. Primary working capital of $523.9
million was up 23 percent, or $99 million, from the same period last year
entirely due to the impact of the Widia acquisition.
- - Total debt was $580 million, up $169 million from June 2002, due to the
closing of the Widia acquisition.
OUTLOOK
- -------
Global economic conditions remain weak at the beginning of the June quarter, and
visibility continues to be very poor. Economic indicators in North America are
mixed, with growth in durable goods orders overshadowed by weak March reports on
industrial production, capacity utilization and the Institute of Supply
Management (ISM - formally NAPM) index. The outlook in Europe is even more
uncertain, with Germany in particular at risk for further declines based on the
most recent macroeconomic indicators.
Tambakeras said, "While weak markets are expected to constrain our top-line in
the June quarter, we continue to execute on key initiatives positioning the
company to leverage earnings growth when the global economies recover. As the
new head of metalworking, Carlos Cardoso will advance programs to further
differentiate the solutions that we provide our customers. The Widia integration
will continue to enhance the breadth of our product offerings and our global
reach, particularly into growing Asian markets. These will be supported by
ongoing product innovation, efficiencies from the Kennametal Lean Enterprise,
and sustained cash flow generation."
Based on assumptions that the second quarter of calendar 2003 will be similar to
the just completed March quarter, sales for the fourth quarter of fiscal 2003
are expected to grow 15 to 18 percent year-over-year. Reported diluted earnings
per share are expected to be $0.17 to $0.37 per share. This includes an estimate
for special charges associated with the Widia integration and restructuring
programs of approximately $0.06 to $0.21 per share. Excluding these charges,
diluted earnings per share are forecasted to range from $0.38 to $0.43 per
share. The earnings forecast also includes $0.02 of dilution from Widia.
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Kennametal anticipates net cash flow provided by operating activities of
approximately $150 to $155 million for the year. Purchases of property, plant
and equipment and proceeds from disposals of property, plant and equipment are
expected to be approximately $50 to $55 million, net. Adjusting net cash flow
provided by operating activities for the above items, Kennametal expects to
generate at least $100 million of free operating cash flow for the year, per
earlier guidance.
As previously announced, a reduction in pension income is lowering diluted EPS
for the fiscal year by $0.17 per share, or approximately $0.04 per share per
quarter.
Kennametal advises shareholders to note monthly order trends, for which the
company makes a disclosure ten business days after the conclusion of each month.
This information is available on the Investor Relations section of Kennametal's
corporate web site at www.kennametal.com.
DIVIDEND DECLARED
- ------------------
Kennametal also announced its Board of Directors declared a quarterly cash
dividend of $0.17 cents per share, payable May 23, 2003, to shareowners of
record as of the close of business May 9, 2003.
Third quarter results will be discussed in a live Internet broadcast at 10:00
a.m. today. Access the live or archived conference by visiting the Investor
Relations section of Kennametal's corporate web site at www.kennametal.com.
This release contains "forward-looking" statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. You can identify these forward-looking statements by the fact they use
words such as "should," "anticipate," "estimate," "approximate," "expect,"
"may," "will," "project," "intend," "plan," "believe," and others words of
similar meaning and expression in connection with any discussion of future
operating or financial performance. One can also identify forward-looking
statements by the fact that they do not relate strictly to historical or current
facts. These statements are likely to relate to, among other things, our goals,
plans and projections regarding our financial position, results of operations,
market position and product development, which are based on current expectations
that involve inherent risks and uncertainties, including factors that could
delay, divert or change any of them in the next several years. Although it is
not possible to predict or identify all factors, they may include the following:
global economic conditions; future terrorist attacks; epidemics; risks
associated with integrating and divesting businesses and achieving the expected
savings and synergies; demands on management resources; risks associated with
international markets such as currency exchange rates, and social and political
environments; competition; labor relations; commodity prices; demand for and
market acceptance of new and existing products; and risks associated with the
implementation of restructuring plans and environmental remediation matters. We
can give no assurance that any goal or plan set forth in forward-looking
statements can be achieved and readers are cautioned not to place undue reliance
on such statements, which speak only as of
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the date made. We undertake no obligation to release publicly any revisions to
forward-looking statements as a result of future events or developments.
Kennametal Inc. aspires to be the premier tooling solutions supplier in the
world with operational excellence throughout the value chain and best-in-class
manufacturing and technology. Kennametal strives to deliver superior shareowner
value through top-tier financial performance. The company provides customers a
broad range of technologically advanced tools, tooling systems and engineering
services aimed at improving customers' manufacturing competitiveness. With about
14,500 employees worldwide, the company's annual sales approximate $1.8 billion,
with nearly half coming from sales outside the United States. Kennametal is a
five-time winner of the GM "Supplier of the Year" award and is represented in
more than 60 countries. Kennametal operations in Europe are headquartered in
Furth, Germany. Kennametal Asia Pacific operations are headquartered in
Singapore. For more information, visit the company's web site at
www.kennametal.com.
# # # # #
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FINANCIAL HIGHLIGHTS
Consolidated financial highlights for Kennametal Inc. (NYSE: KMT) for the
quarters and nine-month periods ended March 31, 2003 and 2002 are shown in the
following tables (in thousands, except per share amounts).
CONSOLIDATED STATEMENTS OF INCOME
Quarter Ended Nine Months Ended
March 31, March 31,
-------------------------- ---------------------------
2003 2002 2003 2002
---------- ----------- ----------- -----------
Net sales $ 459,243 $ 393,852 $ 1,295,192 $ 1,180,844
Cost of goods sold 307,582 266,205 875,079 806,893
----------- ----------- ----------- -----------
Gross profit 151,661 127,647 420,113 373,951
Operating expense(1) 122,592 95,695 343,104 288,711
Restructuring and asset impairment charges 3,269 3,944 11,649 22,650
Amortization of intangibles 1,196 728 3,310 2,107
----------- ----------- ----------- -----------
Operating income 24,604 27,280 62,050 60,483
Interest expense 8,979 7,421 27,058 25,076
Other expense (income), net(2) 713 (14) (414) (179)
----------- ----------- ----------- -----------
Income before provision for income taxes and minority interest 14,912 19,873 35,406 35,586
Provision for income taxes 4,474 6,359 10,622 11,387
Minority interest 739 370 1,786 1,071
----------- ----------- ----------- -----------
Income before cumulative effect of change in accting. principle 9,699 13,144 22,998 23,128
Cumulative effect of change in accounting principle, net of tax(3) -- -- -- (250,406)
----------- ----------- ----------- -----------
Net income (loss) $ 9,699 $ 13,144 $ 22,998 $ (227,278)
=========== =========== =========== ===========
Diluted earnings (loss) per share $ 0.27 $ 0.42 $ 0.65 $ (7.23)
=========== =========== =========== ===========
Dividends per share $ 0.17 $ 0.17 $ 0.51 $ 0.51
=========== =========== =========== ===========
Diluted weighted average shares outstanding 35,480 31,553 35,412 31,454
=========== =========== =========== ===========
(1) For the quarter and nine months ended March 31, 2003, these amounts include
charges of $1.8 million and $3.8 million, respectively, for integration
activities related to the Widia acquisition.
(2) For the quarters ended March 31, 2003 and 2002, these amounts include
charges of $0.4 million and $0.5 million, respectively, for fees incurred
in connection with the company's accounts receivable securitization
program. For the nine months ended March 31, 2003 and 2002, these amounts
include similar charges of $1.5 million and $2.0 million, respectively.
(3) For the nine months ended March 31, 2002, this amount represents a non-cash
charge for the adoption of Statement of Financial Accounting Standards No.
142, "Goodwill and Other Intangible Assets."
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FINANCIAL HIGHLIGHTS (CONTINUED)
In addition to reported results under U.S. GAAP for the fiscal periods, the
following financial highlight tables also include, where appropriate, a
reconciliation of results excluding special items, free operating cash flow and
primary working capital (which are non-GAAP measures), to the most directly
comparable GAAP measures.
RECONCILIATION TO GAAP - QUARTER ENDED MARCH 31,
Diluted
Operating Operating Earnings Per
Gross Profit Expense Income Net Income Share
------------ --------- --------- ---------- ------------
2003 Reported Results $ 151,661 $ 122,592 $ 24,604 $ 9,699 $ 0.27
MSSG Restructuring -- -- 1,077 754 0.02
AMSG Restructuring -- -- 1,104 773 0.02
Corporate Restructuring -- -- 278 195 0.01
Widia Integration Costs - MSSG 144 (1,767) 1,911 1,337 0.04
Widia Integration Costs - AMSG -- (18) 18 13 --
--------- --------- --------- --------- --------
Total Core Business 144 (1,785) 4,388 3,072 0.09
--------- --------- --------- --------- --------
J&L Restructuring -- -- 801 561 0.02
FSS Restructuring -- -- 9 6 --
--------- --------- --------- --------- --------
Total Non-Core Business -- -- 810 567 0.02
--------- --------- --------- --------- --------
2003 Results Excluding Special Items $ 151,805 $ 120,807 $ 29,802 $ 13,338 $ 0.38
========= ========= ========= ========= ========
2002 Reported Results $ 127,647 $ 95,695 $ 27,280 $ 13,144 $ 0.42
MSSG Restructuring 160 -- 1,904 1,295 0.04
AMSG Restructuring 554 -- 619 421 0.01
Corporate Restructuring -- -- 3 2 --
--------- --------- --------- --------- --------
Total Core Business 714 -- 2,526 1,718 0.05
--------- --------- --------- --------- --------
J&L Restructuring 507 -- 2,375 1,616 0.05
FSS Restructuring -- -- 264 179 0.01
--------- --------- --------- --------- --------
Total Non-Core Business 507 -- 2,639 1,795 0.06
--------- --------- --------- --------- --------
2002 Results Excluding Special Items $ 128,868 $ 95,695 $ 32,445 $ 16,657 $ 0.53
========= ========= ========= ========= ========
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FINANCIAL HIGHLIGHTS (CONTINUED)
RECONCILIATION TO GAAP - NINE MONTHS ENDED MARCH 31,
Diluted
Operating Operating Net Income Earn./(Loss)
Gross Profit Expense Income /(Loss) Per Share
------------ --------- --------- ---------- ------------
2003 Reported Results $ 420,113 $ 343,104 $ 62,050 $ 22,998 $ 0.65
MSSG Restructuring -- -- 5,926 4,148 0.12
AMSG Restructuring -- -- 3,182 2,227 0.06
Corporate Restructuring -- -- 1,236 865 0.02
Widia Integration Costs - MSSG 198 (3,784) 3,982 2,787 0.08
Widia Integration Costs - AMSG -- (22) 22 16 --
--------- --------- --------- --------- --------
Total Core Business 198 (3,806) 14,348 10,043 0.28
--------- --------- --------- --------- --------
J&L Restructuring -- -- 1,267 888 0.03
FSS Restructuring -- -- 38 26 --
--------- --------- --------- --------- --------
Total Non-Core Business -- -- 1,305 914 0.03
--------- --------- --------- --------- --------
2003 Results Excluding Special Items $ 420,311 $ 339,298 $ 77,703 $ 33,955 $ 0.96
========= ========= ========= ========= ========
2002 Reported Results $ 373,951 $ 288,711 $ 60,483 $(227,278) $ (7.23)
MSSG Restructuring 160 -- 8,141 5,536 0.18
AMSG Restructuring 1,304 -- 6,573 4,470 0.14
Corporate Restructuring -- -- 160 109 --
MSSG ( Adoption of SFAS 142) -- -- -- 168,314 5.36
AMSG ( Adoption of SFAS 142) -- -- -- 82,092 2.61
--------- --------- --------- --------- --------
Total Core Business 1,464 -- 14,874 260,521 8.29
--------- --------- --------- --------- --------
J&L Restructuring 906 -- 9,846 6,694 0.21
FSS Restructuring -- -- 300 204 0.01
--------- --------- --------- --------- --------
Total Non-Core Business 906 -- 10,146 6,898 0.22
--------- --------- --------- --------- --------
2002 Results Excluding Special Items $ 376,321 $ 288,711 $ 85,503 $ 40,141 $ 1.28
========= ========= ========= ========= ========
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FINANCIAL HIGHLIGHTS (CONTINUED)
SEGMENT DATA:
Quarter Ended Nine Months Ended
March 31, March 31,
-------------------------- --------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Sales:
Metalworking Solutions and Services Group $ 297,995 $ 224,971 $ 824,143 $ 666,006
Advanced Materials Solutions Group 79,039 72,879 231,038 227,498
J&L Industrial Supply 51,729 58,873 148,012 173,997
Full Service Supply 30,480 37,129 91,999 113,343
----------- ----------- ----------- -----------
Total Sales $ 459,243 $ 393,852 $ 1,295,192 $ 1,180,844
=========== =========== =========== ===========
Sales By Geographic Region:
Within the United States $ 239,565 $ 253,905 $ 708,195 $ 762,140
International 219,678 139,947 586,997 418,704
----------- ----------- ----------- -----------
Total Sales $ 459,243 $ 393,852 $ 1,295,192 $ 1,180,844
=========== =========== =========== ===========
Operating Income (Loss), as reported:
Metalworking Solutions and Services Group $ 24,156 $ 25,999 $ 66,488 $ 68,080
Advanced Materials Solutions Group 8,757 6,988 25,153 16,699
J&L Industrial Supply 1,323 1,208 5,209 (1,725)
Full Service Supply 31 380 (320) 1,799
Corporate and Eliminations (9,663) (7,295) (34,480) (24,370)
----------- ----------- ----------- -----------
Total Operating Income $ 24,604 $ 27,280 $ 62,050 $ 60,483
=========== =========== =========== ===========
Operating Income (Loss), excluding special charges:
Metalworking Solutions and Services Group $ 27,144 $ 27,903 $ 76,396 $ 76,221
Advanced Materials Solutions Group 9,879 7,607 28,357 23,272
J&L Industrial Supply 2,124 3,584 6,476 8,122
Full Service Supply 40 644 (282) 2,099
Corporate and Eliminations (9,385) (7,293) (33,244) (24,211)
----------- ----------- ----------- -----------
Total Operating Income $ 29,802 $ 32,445 $ 77,703 $ 85,503
=========== =========== =========== ===========
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OPERATING INCOME RECONCILIATION:
QUARTER ENDED MARCH 31,
CORPORATE &
MSSG AMSG J&L FSS ELIMINATIONS
-------- -------- -------- -------- ------------
2003 Reported Operating Income $ 24,156 $ 8,757 $ 1,323 $ 31 $ (9,663)
Restructuring 1,077 1,104 801 9 278
Widia Integration Costs 1,911 18 -- -- --
-------- -------- -------- -------- --------
2003 Operating Income Excluding Special Charges $ 27,144 $ 9,879 $ 2,124 $ 40 $ (9,385)
======== ======== ======== ======== ========
2002 Reported Operating Income $ 25,999 $ 6,988 $ 1,208 $ 380 $ (7,295)
Restructuring 1,904 619 2,376 264 2
Widia Integration Costs -- -- -- -- --
-------- -------- -------- -------- --------
2002 Operating Income Excluding Special Charges $ 27,903 $ 7,607 $ 3,584 $ 644 $ (7,293)
======== ======== ======== ======== ========
NINE MONTHS ENDED MARCH 31,
CORPORATE &
MSSG AMSG J&L FSS ELIMINATIONS
-------- -------- -------- -------- ------------
2003 Reported Operating Income $ 66,488 $ 25,153 $ 5,209 $ (320) $(34,480)
Restructuring 5,926 3,182 1,267 38 1,236
Widia Integration Costs 3,982 22 -- -- --
-------- -------- -------- -------- --------
2003 Operating Income Excluding Special Charges $ 76,396 $ 28,357 $ 6,476 $ (282) $(33,244)
======== ======== ======== ======== ========
2002 Reported Operating Income $ 68,080 $ 16,699 $ (1,725) $ 1,799 $(24,370)
Restructuring 8,141 6,573 9,847 300 159
Widia Integration Costs -- -- -- -- --
-------- -------- -------- -------- --------
2002 Operating Income Excluding Special Charges $ 76,221 $ 23,272 $ 8,122 $ 2,099 $(24,211)
======== ======== ======== ======== ========
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FINANCIAL HIGHLIGHTS (CONTINUED)
RECONCILIATION TO GAAP - CASH FLOW INFORMATION
Quarter Ended Nine Months Ended
March 31, March 31,
---------------------- ----------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Net income $ 9,699 $ 13,144 $ 22,998 $(227,278)
Adoption of SFAS 142 -- -- -- 250,406
Other non-cash items 2,994 (545) 9,330 17,676
Depreciation and amortization 21,839 17,935 61,819 55,237
Change in primary working capital (747) 5,780 17,928 43,996
Change in other assets and liabilities 6,238 4,729 3,359 (28,013)
--------- --------- --------- ---------
Net cash flow provided by operating activities 40,023 41,043 115,434 112,024
Purchases of property, plant and equipment (13,955) (10,235) (35,966) (30,349)
Proceeds from disposals of property, plant and equipment 661 2,274 1,504 5,799
--------- --------- --------- ---------
Free operating cash flow $ 26,729 $ 33,082 $ 80,972 $ 87,474
========= ========= ========= =========
CONDENSED BALANCE SHEETS
Quarter Ended
--------------------------------------------------------------
3/31/03 12/31/02 9/30/02 6/30/02 3/31/02
---------- ---------- ---------- ---------- ----------
ASSETS
Cash and equivalents $ 17,250 $ 18,155 $ 14,300 $ 10,385 $ 10,705
Accounts receivable, net of allowance 235,908 199,261 221,313 179,101 168,094
Inventories 408,996 403,530 403,590 345,076 351,129
Deferred income taxes 81,651 80,204 71,084 71,375 82,949
Other current assets 44,286 53,868 40,110 31,447 28,064
---------- ---------- ---------- ---------- ----------
TOTAL CURRENT ASSETS 788,091 755,018 750,397 637,384 640,941
---------- ---------- ---------- ---------- ----------
Property, plant and equipment, net 476,208 480,066 480,696 435,116 438,505
Goodwill and Intangible assets, net 491,987 478,060 467,140 367,992 370,324
Other assets 107,159 104,937 109,225 83,119 60,458
---------- ---------- ---------- ---------- ----------
TOTAL $1,863,445 $1,818,081 $1,807,458 $1,523,611 $1,510,228
========== ========== ========== ========== ==========
LIABILITIES
Short-term debt $ 15,068 $ 17,591 $ 16,992 $ 23,480 $ 383,639
Accounts payable 120,981 92,114 101,823 101,586 93,810
Accrued liabilities 208,816 171,726 171,045 137,034 152,867
---------- ---------- ---------- ---------- ----------
TOTAL CURRENT LIABILITIES 344,865 281,431 289,860 262,100 630,316
Long-term debt 565,067 599,425 599,615 387,887 164,257
Deferred income taxes 38,382 46,801 53,475 52,570 52,564
Other liabilities 140,550 135,101 125,816 96,421 88,720
---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES 1,088,864 1,062,758 1,068,766 798,978 935,857
---------- ---------- ---------- ---------- ----------
MINORITY INTEREST 18,070 17,594 17,685 10,671 8,907
---------- ---------- ---------- ---------- ----------
SHAREOWNERS' EQUITY 756,511 737,729 721,007 713,962 565,464
---------- ---------- ---------- ---------- ----------
TOTAL $1,863,445 $1,818,081 $1,807,458 $1,523,611 $1,510,228
========== ========== ========== ========== ==========
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SUPPLEMENTAL INFORMATION AND RECONCILIATIONS
RECONCILIATION TO GAAP - PRIMARY WORKING CAPITAL
Quarter Ended March 31,
-----------------------
2003 2002
-------- --------
Current assets 788,091 640,941
Current liabilities 344,865 630,316
-------- --------
Working capital in accordance with GAAP 443,226 10,625
Excluded items:
Cash and cash equivalents (17,250) (10,705)
Deferred income taxes (81,651) (82,949)
other current assets (44,286) (28,064)
-------- --------
(143,187) (121,718)
Adjusted current assets 644,904 519,223
Short-term debt (15,068) (383,639)
Accrued liabilities (208,816) (152,867)
-------- --------
(223,884) (536,506)
Adjusted current liabilities 120,981 93,810
Primary working capital 523,923 425,413
Primary working capital is defined as accounts receivable, net of allowance for
doubtful accounts, plus inventories minus accounts payable.
* * - end - * *