Summary Operating and Financial Data

December 31 (thousands, except per share)	2004	2003	2002	2001	2000	1999	1998	1997	1996	1995	1994
Operations   Net sales      United States	$ 2,135,660	$ 2,014,767	$ 1,923,500	$ 1,821,902	$ 1,746,698	$ 1,605,385	$ 1,429,711	$ 1,251,517	$1,127,281	$1,008,910	$   923,667
International (at average rates          of currency exchange during the year)	2,049,273	1,747,052	1,480,085	498,808	483,963	444,413	431,366	364,524	341,231	310,755	265,544
Total	4,184,933	3,761,819	3,403,585	2,320,710	2,230,661	2,049,798	1,861,077	1,616,041	1,468,512	1,319,665	1,189,211
Cost of sales (including special charges      (income) of $(106) in 2004, $(76) in 2003      and $8,977 in 2002, $(566) in 2001       and $1,948 in 2000)	2,031,280	1,845,202	1,687,597	1,120,254	1,056,263	963,476	874,793	745,256	694,791	622,342	550,308
Selling, general and administrative expenses	1,615,064	1,433,551	1,283,091	881,453	851,995	796,371	724,304	652,281	588,404	534,637	493,939
Special charges, sale of business and merger      expenses	4,467	408	37,031	824	(20,736)						8,000
Operating income	534,122	482,658	395,866	318,179	343,139	289,951	261,980	218,504	185,317	162,686	136,964
Gain on sale of equity investment		11,105
Interest expense, net	45,344	45,345	43,895	28,434	24,605	22,713	21,742	12,637	14,372	11,505	12,909
Income from continuing operations      before income taxes, equity earnings      and changes in accounting principle	488,778	448,418	351,971	289,745	318,534	267,238	240,238	205,867	170,945	151,181	124,055
Provision for income taxes	178,290	171,070	140,081	117,408	129,495	109,769	101,782	85,345	70,771	59,694	50,444
Equity in earnings of Henkel-Ecolab				15,833	19,516	18,317	16,050	13,433	13,011	7,702	10,951
Income from continuing operations	310,488	277,348	211,890	188,170	208,555	175,786	154,506	133,955	113,185	99,189	84,562
Gain from discontinued operations			1,882				38,000
Changes in accounting principle			(4,002)		(2,428)
Net income, as reported	310,488	277,348	209,770	188,170	206,127	175,786	192,506	133,955	113,185	99,189	84,562
Adjustments				18,471	17,762	16,631	14,934	11,195	10,683	8,096	12,757
Adjusted net income	$    310,488	$    277,348	$    209,770	$    206,641	$    223,889	$    192,417	$    207,440	$    145,150	$   123,868	$   107,285	$     97,319
Income per common share, as reported      Basic - continuing operations	$          1.21	$          1.07	$          0.82	$          0.74	$          0.82	$          0.68	$          0.60	$          0.52	$         0.44	$         0.38	$         0.31
Basic - net income	1.21	1.07	0.81	0.74	0.81	0.68	0.75	0.52	0.44	0.38	0.31
Diluted - continuing operations	1.19	1.06	0.81	0.72	0.79	0.65	0.58	0.50	0.43	0.37	0.31
Diluted - net income	1.19	1.06	0.80	0.72	0.78	0.65	0.72	0.50	0.43	0.37	0.31
Adjusted income per common share      Basic - continuing operations	1.21	1.07	0.82	0.81	0.89	0.74	0.66	0.56	0.48	0.41	0.36
Basic - net income	1.21	1.07	0.81	0.81	0.88	0.74	0.80	0.56	0.48	0.41	0.36
Diluted - continuing operations	1.19	1.06	0.81	0.80	0.86	0.72	0.63	0.54	0.47	0.40	0.35
Diluted - net income	$          1.19	$          1.06	$          0.80	$          0.80	$          0.85	$          0.72	$          0.77	$          0.54	$         0.47	$         0.40	$         0.35
Weighted-average common shares          outstanding – basic	257,575	259,454	258,147	254,832	255,505	259,099	258,314	258,891	257,983	264,387	270,200
Weighted-average common shares          outstanding – diluted	261,776	262,737	261,574	259,855	263,892	268,837	268,095	267,643	265,634	269,912	274,612
Selected Income Statement Ratios   Gross profit	51.5%	50.9%	50.4%	51.7%	52.6%	53.0%	53.0%	53.9%	52.7%	52.8%	53.7%
Selling, general and administrative expenses	38.6	38.1	37.7	38.0	38.2	38.9	38.9	40.4	40.1	40.5	41.5
Operating income	12.8	12.8	11.6	13.7	15.4	14.1	14.1	13.5	12.6	12.3	11.5
Income from continuing operations before      income taxes	11.7	11.9	10.3	12.5	14.3	13.0	12.9	12.7	11.6	11.5	10.4
Income from continuing operations	7.4	7.4	6.2	8.1	9.3	8.6	8.3	8.3	7.7	7.5	7.1
Effective income tax rate	36.5%	38.1%	39.8%	40.5%	40.7%	41.1%	42.4%	41.5%	41.4%	39.5%	40.7%
Financial Position   Current assets	$ 1,279,066	$ 1,150,340	$ 1,015,937	$    929,583	$    600,568	$    577,321	$    503,514	$    509,501	$   435,507	$   358,072	$   401,179
Property, plant and equipment, net	834,730	736,797	680,265	644,323	501,640	448,116	420,205	395,562	332,314	292,937	246,191
Investment in Henkel-Ecolab					199,642	219,003	253,646	239,879	285,237	302,298	284,570
Goodwill, intangible and other assets	1,602,378	1,341,781	1,169,705	951,094	412,161	341,506	293,630	271,357	155,351	107,573	88,416
Total assets	$ 3,716,174	$ 3,228,918	$ 2,865,907	$ 2,525,000	$ 1,714,011	$ 1,585,946	$ 1,470,995	$ 1,416,299	$1,208,409	$1,060,880	$1,020,356
Current liabilities	$    939,547	$    851,942	$    853,828	$    827,952	$    532,034	$    470,674	$    399,791	$    404,464	$   327,771	$   310,538	$   253,665
Long-term debt	645,445	604,441	539,743	512,280	234,377	169,014	227,041	259,384	148,683	89,402	105,393
Postretirement health care and pension      benefits	270,930	249,906	207,596	183,281	117,790	97,527	85,793	76,109	73,577	70,666	70,882
Other liabilities	297,733	227,203	164,989	121,135	72,803	86,715	67,829	124,641	138,415	133,616	128,608
Shareholders' equity	1,562,519	1,295,426	1,099,751	880,352	757,007	762,016	690,541	551,701	519,963	456,658	461,808
Total liabilities and shareholders' equity	$ 3,716,174	$ 3,228,918	$ 2,865,907	$ 2,525,000	$ 1,714,011	$ 1,585,946	$ 1,470,995	$ 1,416,299	$1,208,409	$1,060,880	$1,020,356
Selected Cash Flow Information   Cash provided by operating activities	$    582,464	$    529,199	$    423,326	$    364,481	$    315,486	$    293,494	$    235,642	$    235,098	$   254,269	$   166,463	$   169,346
Depreciation and amortization	247,382	229,656	223,428	162,990	148,436	134,530	121,971	100,879	89,523	76,279	66,869
Capital expenditures	275,871	212,035	212,757	157,937	150,009	145,622	147,631	121,667	111,518	109,894	88,457
Cash dividends declared per common share	$      0.3275	$      0.2975	$      0.2750	$      0.2625	$      0.2450	$      0.2175	$      0.1950	$      0.1675	$     0.1450	$     0.1288	$     0.1138
Selected Financial Measures/Other   Total debt	$    701,577	$    674,644	$    699,842	$    745,673	$    370,969	$    281,074	$    295,032	$    308,268	$   176,292	$   161,049	$   147,213
Total debt to capitalization	31.0%	34.2%	38.9%	45.9%	32.9%	26.9%	29.9%	35.8%	25.3%	26.1%	24.2%
Book value per common share	$          6.07	$          5.03	$          4.23	$          3.44	$          2.98	$          2.94	$          2.67	$          2.14	$         2.01	$         1.76	$         1.71
Return on beginning equity	24.0%	25.2%	23.8%	24.9%	27.1%	25.5%	34.9%	25.8%	24.8%	21.5%	21.6%
Dividends per share/diluted net income      per common share	27.5%	28.1%	34.4%	36.2%	31.4%	33.2%	27.1%	33.5%	34.1%	35.3%	36.7%
Annual common stock price range	$35.59-26.12	$27.92-23.08	$25.20-18.27	$22.10-14.25	$22.85-14.00	$22.22-15.85	$19.00-13.07	$ 14.00-9.07	$9.88-7.28	$7.94-5.00	$5.88-4.82
Number of employees	21,338	20,826	20,417	19,326	14,250	12,870	12,007	10,210	9,573	9,026	8,206

The former Henkel-Ecolab joint venture is included as a consolidated subsidiary effective November 30, 2001. Adjusted results for 1994 through 2001 reflect the effect of retroactive application of the discontinuance of the amortization of goodwill as if SFAS No. 142 had been in effect since January 1, 1994. For 1994 the adjustments also reflect adjustments to eliminate unusual items associated with Ecolab's acquisition of Kay Chemical Company in December 1994. All per share, shares outstanding and market price data reflect the two-for-one stock splits declared in 2003 and 1997. Return on beginning equity is net income divided by beginning shareholders' equity.