Financial Highlights

For the year ended August 31 2007 2006 % Change

(in millions of dollars, except earnings per share)
Operations:
Net sales $ 2,530.7 $ 2,393.1 6 %
     Gross profit % 42.3 % 40.5 %
Operating profit $ 256.9 $ 197.3 30 %
     Operating profit % 10.2 % 8.2 %
Net Income $ 148.1 $ 106.6 39 %
Diluted earnings per share $ 3.37 $ 2.34 44 %
Diluted weighted average number of shares outstanding (in millions) 43.9 45.6
Return on average shareholders’ equity 24.4 % 19.7 %
Net cash provided by operating activities $ 241.2 $ 155.9 55 %
Depreciation and amortization $ 38.4 $ 39.0 (2) %
Capital expenditures $ 36.9 $ 28.6 29 %
Employees 10,000 10,600 (7) %
Financial Position:
Total assets $ 1,613 $ 1,444 12 %
Total debt, net of cash $ 149 $ 283 (47) %
Total stockholders' equity $ 672 $ 542 24 %
Total net debt to capitalization (1) 18.1 % 34.3 %
Operating working capital as a percentage of net sales (2) 13.2 % 14.4 %


(1) Total net debt to capitalization is calculated by dividing total debt, net of cash, by the sum of total debt, net of cash, and total stockholders’ equity.
(2) Operating working capital is defined as net receivables plus inventories minus accounts payable.