Financial Highlights
for the year ended November 30 (millions except per share data)
| 2006 | 2005 | % change | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Net sales | $ | 2,716.4 | $ | 2,592.0 | 4.8 | % | |||
| Gross profit | 1,114.6 | 1,036.6 | 7.5 | % | |||||
| Gross profit margin | 41.0 | % | 40.0 | % | |||||
| Operating income | 269.6 | 343.5 | (21.5 | %) | |||||
| Operating income margin | 9.9 | % | 13.3 | % | |||||
| Net income | 202.2 | 214.9 | (5.9 | %) | |||||
| Earnings per share - diluted | 1.50 | 1.56 | (3.8 | %) | |||||
| Average shares outstanding - diluted | 135.0 | 138.1 | (2.2 | %) | |||||
| Dividends paid | $ | 95.0 | $ | 86.2 | 10.2 | % | |||
| Dividends paid per share | .72 | .64 | 12.5 | % | |||||
In 2006, charges related to our restructuring plan reduced operating income by $84.1 million, net income by $30.3 million and diluted earnings per share by $0.22. Stock-based compensation, which we began to record in 2006, reduced operating income by $22.0 million, net income by $15.1 million and diluted earnings per share by $0.11.
In 2005, charges related to restructuring reduced operating income by $11.2 million, net income by $7.5 million and diluted earnings per share by $0.05.
On a comparable basis, excluding the impact of restructuring charges and stock-based compensation expense, diluted earnings per share rose 14% in 2006.
