We were able to improve operationally in spite of difficult conditions. In response to reduced mass spectrometry revenues, and in order to address a long-term trend of product convergence, we implemented a major restructuring to combine our mass spectrometry and HPLC field organizations across the world. This restructuring was substantially completed by the end of 2002 and prepares us to address the technology and product needs of our customers in a unified fashion, as well as increase the overall productivity of our field sales and service organizations.

Our operating focus continued to deliver good financial performance in a difficult climate. In 2002, although sales grew 4%, earnings per share growth, excluding unusual items, was essentially flat. We responded to the lower than expected sales growth with cost reduction actions in 2002; however, the full effect of these expense reductions won’t be realized until 2003. Although earnings per share didn’t grow, free cash flow increased significantly from $146 million in 2001 to $192 million in 2002. Because of our financial strength, the Board of Directors authorized a $200 million stock buyback in the third quarter and, by December 31st, we had acquired approximately $100 million of stock. Depending on business and market conditions, the Board of Directors will periodically reconsider whether additional stock buybacks are appropriate.