Consolidated Statement of Cash Flows

  Year Ended December 31
  2003 2002 2001
(Thousands of dollars)

CASH PROVIDED (USED)
Operating Activities

   
Net income (loss) $ 36,481 $ 38,749 $ (41,666)
Adjustments to reconcile net income (loss) to net cash
  provided by operating activities:
     
    Cumulative effect of change in accounting principle - 12,702 -
    Depreciation and amortization 208,851 146,535 152,467
    Loss (gain) on disposals of property, plant and equipment 4,944 5,904 (2,233)
    Deferred income tax provision 4,406 17,250 23,013
    Common stock issued in lieu of cash 2,744 5,217 1,441
    Impairment and restructuring charges 55,967 (13,564) 41,832
    Changes in operating assets and liabilities:      
        Accounts receivable (27,543) (43,679) 44,803
        Inventories 33,229 (50,611) 51,247
        Other assets (30,229) (3,198) (16,897)
        Accounts payable and accrued expenses (83,982) 80,761 (72,483)
        Foreign currency translation (gain) loss (2,234) 10,037 (3,886)
        Net Cash Provided by Operating Activities 202,634 206,103 177,638

Investing Activities
   
Purchases of property, plant and equipment–net (116,276) (85,277) (90,501)
Proceeds from disposals of property, plant and equipment 32,321 12,616 6,357
Proceeds from disposals of equity investments 146,335 - -
Acquisitions (725,120) (6,751) (12,957)
        Net Cash Used by Investing Activities (662,740) (79,412) (97,101)

Financing Activities
   
Cash dividends paid to shareholders (42,078) (31,713) (40,166)
Purchases of treasury shares - - (2,931)
Accounts receivable securitization financing borrowings 127,000 - -
Accounts receivable securitization financing payments (127,000) - -
Proceeds from issuance of common stock 54,985 - -
Common stock issued to finance acquisition 180,010(1) - -
Proceeds from issuance of long-term debt 629,800 - 80,766
Payments on long-term debt (379,790) (37,296) (2,176)
Short-term debt activity–net (41,082) (11,498) (90,980)
        Net Cash Provided (Used) by Financing Activities 401,845 (80,507) (55,487)
Effect of exchange rate changes on cash 4,837 2,474 (2,585)
        (Decrease) Increase In Cash and Cash Equivalents (53,424) 48,658 22,465
Cash and cash equivalents at beginning of year 82,050 33,392 10,927
        Cash and Cash Equivalents at End of Year $ 28,626 $ 82,050 $ 33,392

See accompanying Notes to Consolidated Financial Statements on pages 38 through 57.
(1) Excluding $140 million of common stock (9,395,973 shares) issued to Ingersoll-Rand Company, in conjunction with the acquisition.



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