Del Monte Foods Company Reports Fiscal 2006 Fourth Quarter and Full Year Results; Delivers Strong F06 Financial Performance; Announces Transformation Plan and Increases Long-Term Growth Rate Targets

Del Monte Foods Company (NYSE: DLM):
Announcement Highlights

-- Delivered strong full-year financial results

-- Reported EPS of $0.83 and net sales growth of 3.4%.

-- As-adjusted EPS of $0.77 (excludes $0.05 gain from sale of
divested private label soup and infant feeding businesses
and $0.01 of other discontinued operations) within
guidance range despite challenging cost environment. Net
sales growth and cash flow exceeded guidance.

-- Top-line driven primarily by successful pricing actions
and new product introductions.

-- Strategically positioned the Company for future growth

-- Took major steps to realign portfolio with agreements to
acquire Meow Mix and Milk-Bone and with divestiture of
soup and infant feeding businesses.

-- Successfully executed against each initiative outlined in
strategic operating plan, Project Brand.

-- Transformation plan announced today is expected to further
improve overall competitiveness, enhance performance and
continue to move the Company toward the goal of creating a
superior branded food company, focused on:

-- Streamlining the organization;

-- Strengthening systems and processes; and

-- Delivering scale efficiencies from the pet acquisitions.

-- Reflecting the above progress, the Company today is increasing
its long-term growth rate targets (excluding transformation
and integration expenses):

-- Net sales: 3%-5%

-- EPS: 7%-9%

Del Monte Foods Fourth Quarter Results

Del Monte Foods today reported net income for the fourth quarterof fiscal 2006 of $57.9 million, or $0.29 earnings per diluted share("EPS"), compared to net income last year of $19.3 million, or $0.09EPS. Results for fourth quarter fiscal 2006 included a $0.05 gain onthe sale of the Company's private label soup, infant feeding and foodservice soup businesses and $0.01 of earnings from other discontinuedoperations relating to a pet business sold in prior periods. Resultsfor fourth quarter fiscal 2005 included $0.14 of refinancing,integration and Kal-Kan litigation-related expenses. Also included inthe reported fourth quarter results for the fiscal 2006 and 2005periods are earnings associated with the divested soup and infantfeeding businesses of $0.02 and $0.01, respectively.

"Our fiscal year and fourth quarter 2006 results reflect positivebusiness performance as well as the achievement of significantstrategic accomplishments," said Richard G. Wolford, Chairman and CEOof Del Monte Foods. "Our business performance delivered strong top andbottom line results. Pricing actions and new product introductions,both enabled by our strong brands, drove solid top-line growth. Inaddition, pricing and cost reduction actions fully coveredinflationary and other operational costs in both the fourth quarterand the full year. These actions enabled the Company to meetbottom-line targets despite continued and significant inflationarycost pressures throughout the year."

Mr. Wolford continued, "This financial performance was a directresult of the successful implementation of initiatives outlined in ourstrategic operating plan, Project Brand. These included execution ofon-trend innovation, achievement of the $50 million cost reductionprogram, execution of a share buyback program and initiation of aquarterly dividend. Importantly however, we also accomplished a majorstrategic objective with our portfolio realignment. The announcedacquisitions of Meow Mix and Milk-Bone and the sale of our soup andinfant feeding businesses represent major steps in Del Monte'sstrategic commitment to expand its portfolio of higher marginbusinesses in fast growing categories and create a more value-added,branded consumer packaged food company."

Fourth Quarter Results - Continuing Operations

Net sales of $799.2 million compared to $774.4 million last year,an increase of 3.2%. Income from continuing operations, which excludesthe soup and infant feeding businesses(1), was $41.7 million, or $0.21EPS, compared to $17.6 million, or $0.08 EPS in the previous year.Results for fourth quarter fiscal 2005 included $0.14 of refinancing,integration and Kal-Kan litigation-related expenses. The Company isreporting the soup and infant feeding businesses as discontinuedoperations due to its sale of the businesses in April 2006.

The increase in net sales was driven primarily by increased netpricing and growth from new and existing products. These gains werepartially offset by volume loss associated with price increases("elasticity") which was within the range anticipated by the Company.The increase in EPS from continuing operations was driven primarily bythe absence of prior year expenses, specifically refinancing,integration and Kal-Kan litigation-related expenses. In the fourthquarter, pricing, cost reduction actions and a change in estimaterelated to transportation-related costs, fully offset higher steel andother packaging, energy, logistics and other transportation-relatedcosts. However, the Company also experienced higher marketing andoverhead expenses.
Impact of Identified Items on Diluted Earnings Per Share

Fourth Quarter
----------------
2006
----------------

======================================================================
Diluted earnings per share, as reported (GAAP) $ 0.29
======================================================================
Including:
Gain on the sale of the soup and infant feeding
businesses $ 0.05
Other discontinued operations relating to a pet
business sold in prior periods $ 0.01
----------------
Total impact of identified items - income/(expense) $ 0.06

Diluted earnings per share, as-adjusted(2) $ 0.23

Earnings associated with the soup and infant feeding
businesses $ 0.02

======================================================================
Diluted earnings per share - continuing operations,
as reported (GAAP) $ 0.21
======================================================================

Reportable Segments - Fourth Quarter Results

Consumer Products

For the fourth quarter, Consumer Products net sales were $573.4million, an increase of 3.5% over net sales of $554.0 million in theprior year period. The increase was driven primarily by higher netpricing, as well as growth from new products, including Del MonteFruit Naturals (three new flavors) and StarKist Tuna Fillets.

Consumer Products operating income increased 12.6% from $52.5million in fourth quarter fiscal 2005 to $59.1 million in fourthquarter fiscal 2006. The increase reflected positive toplineperformance combined with cost reduction actions, offset in part byhigher costs, including bonus accrual expenses and other G&A, steeland other packaging, energy, logistics and othertransportation-related costs as well as fish costs. The quarter alsobenefited from the absence of prior year integration expense.

Pet Products

For the fourth quarter, Pet Products net sales were $225.8million, an increase of 2.5% over net sales of $220.4 million in theprior year period. The increase was driven primarily by increasedsales from new products in the dry dog and pet snacks categories.

Pet Products operating income decreased 4.2% from $42.9 million infourth quarter fiscal 2005 to $41.1 million in fourth quarter fiscal2006. Positive volume/mix from the topline combined with costreduction actions were offset by increased inflationary and otheroperational cost increases, driven primarily by higher customerdelivery costs. Operating income was further reduced by netunfavorable year-over-year comparison factors. Bonus accrual expensesand a timing shift in trade spending, combined with higher other G&Aexpenses in fiscal 2006, more than offset the positive impact of theabsence of fiscal 2005 integration and Kal-Kan litigation-relatedexpenses.

Del Monte Foods Fiscal 2006 Results

For fiscal 2006, the Company reported net income of $169.9million, or $0.83 EPS compared to net income last year of $117.9million, or $0.56 EPS. Results for fiscal 2006 included a $0.05 gainon the sale of the soup and infant feeding businesses and $0.01 ofother discontinued operations. Results for fiscal 2005 included $0.19of refinancing, integration and Kal-Kan litigation-related expenses.Also included in the reported results for fiscal 2006 and 2005 areearnings associated with the divested soup and infant feedingbusinesses of $0.10 and $0.08, respectively.

Full-Year Results - Continuing Operations

Net sales of $2,998.6 million compared to $2,899.3 million lastyear, an increase of 3.4%. Income from continuing operations, whichexcludes the soup and infant feeding businesses, was $137.0 million,or $0.67 EPS, compared to $100.6 million or $0.48 EPS in the previousyear. Results for fiscal 2005 included $0.19 of refinancing,integration and Kal-Kan litigation-related expenses.

The increase in net sales was driven primarily by increased netpricing and growth from new products, partially offset by elasticity.The increase in EPS from continuing operations was driven primarily bysolid top-line performance, the absence of certain prior yearexpenses, specifically refinancing, integration and Kal-Kanlitigation-related expenses, the benefits of the share repurchaseprogram and lower interest expense, partially offset by higher costs,including steel and other packaging, energy, logistics and othertransportation-related costs and SG&A.
Impact of Identified Items on Diluted Earnings Per Share

Full Year
----------------
2006
----------------

======================================================================
Diluted earnings per share, as reported (GAAP) $ 0.83
======================================================================
Including:
Gain on the sale of the soup and infant feeding
businesses $ 0.05
Other discontinued operations relating to a pet
business sold in prior periods $ 0.01
----------------
Total impact of identified items - income/(expense) $ 0.06

Diluted earnings per share, as-adjusted(3) $ 0.77

Earnings associated with the soup and infant feeding
businesses $ 0.10

======================================================================
Diluted earnings per share - continuing operations,
as reported (GAAP) $ 0.67
======================================================================

Project Brand Update

One year ago, Del Monte announced Project Brand, its strategicplan to enhance shareholder value by increasing the branded focus ofits product portfolio and accelerating innovation-driven growth inhigher margin categories. In fiscal 2006, the Company executed againsteach of the five key tenets of Project Brand, including:

-- M&A: In fiscal 2006, Del Monte made significant progress realigning its portfolio, and announced agreements to acquire Meow Mix and Milk-Bone and divested its off-strategy, lower margin soup and infant feeding businesses.

-- Portfolio Optimization: In addition to the acquisitions and divestiture, the Company improved its overall portfolio mix by expanding sales of its targeted higher margin, higher growth businesses by more than 10%. Including the divestiture, it also reduced SKUs by 39%, exceeding the Company's Project Brand goal of 20% SKU reduction by fiscal 2008.

-- Innovation: Del Monte's new product introductions were aligned with key consumer and pet trends in fiscal 2006. In Consumer Products, this included higher margin Del Monte Fruit Naturals and StarKist Tuna Fillets. In Pet Products, new product introductions included Kibbles 'n Bits Homestyle Beef and Meaty Bone Denta-Delicious.

-- Cost Management: Del Monte delivered the $50 million in cost savings targeted for fiscal 2006 and remains on track to deliver $100 million total cost savings by the end of fiscal 2008.

-- Financial Flexibility: The Company executed a $125 million share repurchase and initiated its first dividend payout since the Company went public in 1999. Del Monte generated full year fiscal 2006 cash flow(4) of $444 million, which includes $222 million of net proceeds related to the sale of the soup and infant feeding businesses (representing net proceeds of $265.7 million less $43.3 million of restricted cash related to mandatory debt repayments). The Company's ongoing debt management strategy resulted in fiscal 2006 financial flexibility that enabled the acquisitions.

Transformation Plan

In addition, Del Monte today announced a transformation plan tofurther the Company's progress against its strategic goal of becominga more value-added, consumer packaged food company. The plan'sinitiatives, which are focused on strengthening systems and processes,streamlining the organization and leveraging the scale efficienciesexpected from the pet acquisitions, are anticipated to improve thecompetitiveness of the Company and enhance its overall performance.

As part of its plan, Del Monte will be focusing on the followinginitiatives:

-- Implementing supply chain efficiencies to improve order management, supply chain planning, execution and inventory reduction capabilities.

-- Optimizing the Company's dry pet manufacturing matrix to fully leverage its larger, post-acquisition scale to significantly lower delivered costs.

-- Streamlining the organization by eliminating management layers in order to shorten lines of communication and accelerate decision-making, as well as to broaden responsibilities and expand opportunities so the Company can retain and attract top talent. Del Monte plans to reduce its SG&A headcount by more than 7%, with reductions in both Pittsburgh and San Francisco.

-- Implementing enhanced trade fund management capabilities by increasing and upgrading systems and processes used to fund and track promotions.

-- Enhancing systems and processes in the areas of marketing planning and budgeting, new product launch and consumer knowledge capture, thus improving the quality and speed-to-market of our marketing and new product innovation.

"This program continues our progress and strategic commitmenttowards the goal of transforming Del Monte into a superior U.S. retailbranded food company," said Mr. Wolford. "Streamlining our businessand improving our systems and processes will make us more nimble,giving us the flexibility and speed we need to meet the needs of ourcustomers and consumers. We also expect to significantly improve ourdry pet manufacturing and distribution infrastructures, improving ourmargins. By continuing to improve our competitive capabilities throughimproved organizational effectiveness and speed of decision-making, aswell as a reduction in operating costs, this transformation plan willsignificantly enhance our growth potential."

Del Monte expects to incur costs associated with these initiativesover the next two years of approximately $110 million in pre-taxcosts, including $60 million in anticipated capital expenditures and$10 million of non-cash expenses.

In fiscal 2007, Del Monte is expected to incurtransformation-related costs of $75 to $85 million in pre-tax costs,including $40 to $45 million in capital expenditures and $8 million ofnon-cash expenses. The plan is expected to result in pre-taxtransformation-related expenses of $35 to $45 million (including thenon-cash expenses mentioned above), or approximately $0.11 to $0.14cents per share in fiscal 2007. These initiatives are expected toresult in approximately $40 million in working capital improvements infiscal 2007.

The Company expects to achieve a two year payback on itsinvestment with an estimated after-tax rate-of-return of over 50%. TheCompany expects to start generating savings in fiscal 2007, andcapture approximately $40 million of pre-tax savings in fiscal 2008and approximately $50 million in fiscal 2009. Savings are incorporatedin the fiscal 2007 guidance and long-term outlook, as outlined below.

Outlook

Long-Term Outlook (beyond fiscal 2007)

Based on the Company's portfolio realignment, the strategicprogress on its base business and the transformation plan announcedtoday, Del Monte increased its long-term net sales growth rate targetto 3% to 5% and its long-term EPS growth rate target to 7% to 9%(excluding transformation and integration expenses).

Mr. Wolford concluded, "The progress we achieved in fiscal 2006,including the announcements of Meow Mix and Milk-Bone, combined withour transformation program, are improving the overall financial andstrategic outlook for Del Monte. Today, our leading brands are wellpositioned to capitalize on the primary consumer and pet trendsdriving the food industry. We are anticipating increased top andbottom-line momentum as a result. In fiscal 2008, the first year werealize the full impact of the acquisitions and the related synergies,we expect to be at the high-end of this increased range."

Fiscal 2007

For fiscal 2007, the Company expects sales growth of 14% to 16%over fiscal 2006 net sales of $2,998.6 million. Net sales growth isexpected to be driven primarily by the acquisitions of Meow Mix andMilk-Bone as well as from growth of the Company's existing businessesconsistent with prior years. During the fourth quarter, the Companyannounced additional pricing actions effective May 1, 2006 in bothConsumer Products and Pet Products to combat the effect of continuedhigher inflationary costs.

Diluted EPS from continuing operations is expected to be $0.53 to$0.58 in fiscal 2007, including approximately $0.06 of integrationexpense and approximately $0.11 to $0.14 of transformation-relatedexpenses. The Company reported $0.67 diluted EPS from continuingoperations in fiscal 2006.

The Company expects cash provided by operating activities, lesscash used in investing activities, to be approximately $150 to $170million. This compares to $444 million in fiscal 2006, which included$222 million of net proceeds related to the sale of the soup andinfant feeding businesses.

First Quarter Fiscal 2007

For the fiscal 2007 first quarter, the Company expects to deliversales growth of approximately 2% to 4% over net sales of $617 millionin the first quarter of fiscal 2006. Diluted EPS from continuingoperations is expected to be approximately $(0.04) to $0.00, including$0.04 to $0.06 of transformation-related expenses, as compared to$0.06 in the first quarter of fiscal 2006. Guidance for the firstquarter fiscal 2007 financial results includes approximately twomonths of earnings related to the acquisition of Meow Mix, whichclosed on May 19, 2006.
Factors Impacting Guidance

Fiscal 2007
-----------------------------------
Full Year First Quarter
-----------------------------------
F07 diluted EPS Guidance $0.53 - $0.58 $(0.04) - $0.00
Includes:
F07 Integration expense ($0.06) -
F07 Transformation-related
expenses ($0.11) - ($0.14) ($0.04) - ($0.06)
Does not include:
F07 Purchase accounting impact To be provided on To be provided on
Q1 F07 call Q1 F07 call

Guidance does not reflect the impact from purchase accountingrelated to the announced acquisitions.

Webcast Information

Del Monte Foods will host a live audio webcast, accompanied by aslide presentation, to discuss its fiscal 2006 fourth quarter and yearat 8:00 a.m. PT (11:00 a.m. ET) today. The webcast slide presentationand historical, quarterly and full year results as well asreconciliations of non-GAAP financial measures can be accessed atwww.delmonte.com/Company/investors. The audio portion of the webcastmay also be accessed during the call (listen-only mode) as follows: 1-888-730-9136 (1-773-681-5870 outside the U.S. and Canada), verbalcode: Del Monte Foods. The webcast and slide presentation will beavailable online following the presentation.

Del Monte Foods

Del Monte Foods is one of the country's largest and most wellknown producers, distributors and marketers of premium quality,branded food and pet products for the U.S. retail market, generatingapproximately $3 billion in net sales in fiscal 2006. With a powerfulportfolio of brands including Del Monte(R), Contadina(R), StarKist(R),S&W(R), College Inn(R), 9Lives(R), Kibbles 'n Bits(R), Meow Mix(R),Pup-Peroni(R), Snausages(R), Pounce(R) and Meaty Bone(R), Del Monteproducts are found in nine out of ten American households. The Companyalso produces, distributes and markets private label food and petproducts. For more information on Del Monte Foods Company (NYSE:DLM),visit the Company's website at www.delmonte.com.

Non-GAAP Financial Measures

Del Monte Foods Company reports its financial results inaccordance with generally accepted accounting principles in the UnitedStates (GAAP). In this press release and the accompanying webcast, DelMonte is also providing certain non-GAAP financial measures. Thenon-GAAP EPS measures that the Company is using to compare fiscal 2006results to its fiscal 2006 guidance (Q4 and full year) includeearnings from the divested soup and infant feeding businesses, butexclude the gain recognized in connection with the sale of suchbusinesses and the impact of other discontinued operations relating toa pet business sold in prior periods. Del Monte uses these presentednon-GAAP financial measures internally to benchmark its performanceagainst the guidance it provided for fiscal 2006, which had notassumed the disposition of the soup and infant feeding businesses, andbelieves this information is also helpful to investors. The Companycautions investors that the non-GAAP financial measures presented areintended to supplement the Company's GAAP results and are not asubstitute for such results. Additionally, the non-GAAP financialmeasures used by Del Monte may differ from non-GAAP measures used byother companies.

(1) Reported diluted earnings per share includes both continuingoperations and discontinued operations. In connection with the April24, 2006 divestiture of the soup and infant feeding businesses, theoperating results and the assets and liabilities related to suchbusinesses have been classified as discontinued operations.Accordingly, income from continuing operations for all periodspresented does not include the operating results of the divested soupand infant feeding businesses. The Company's guidance for the quarterand the year had not assumed the divestiture of the soup and infantfeeding businesses.

(2) Company EPS guidance for Q4 F06 was $0.18-$0.23.

(3) Company EPS guidance for F06 was $0.75-$0.80.

(4) Cash provided by operating activities, plus cash provided byinvesting activities. Company cash flow guidance for fiscal 2006 was$190 to $200 million, and did not assume proceeds from the sale of thesoup and infant feeding businesses.

Forward-Looking Statements

This press release contains forward-looking statements conveyingmanagement's expectations as to the future based on plans, estimatesand projections at the time the Company makes the statements.Forward-looking statements involve inherent risks and uncertaintiesand the Company cautions you that a number of important factors couldcause actual results to differ materially from those contained in anysuch forward-looking statement. The forward-looking statementscontained in this press release include statements related to futurefinancial operating results, the expected benefits and costs of thetransformation plan, and future business plans, as well as theexpected completion of the Milk-Bone acquisition.

Factors that could cause actual results to differ materially fromthose described in this press release include, among others: generaleconomic and business conditions; failure to complete the Milk-Boneacquisition by the expected date, if at all; integration of the MeowMix and Milk-Bone businesses; cost and availability of inputs,commodities, ingredients and other raw materials, including withoutlimitation, energy, fuel, packaging, grains, meat by-products andtuna; logistics and other transportation-related costs; our debtlevels and ability to service and reduce our debt; efforts and abilityto increase prices and reduce costs; costs and results of efforts toimprove the performance and market share of our businesses; reducedsales, disruptions, costs or other charges to earnings that may begenerated by our strategic plan and transformation plan efforts;effectiveness of marketing, pricing and trade promotion programs;changing consumer and pet preferences; timely launch and marketacceptance of new products; competition, including pricing andpromotional spending levels by competitors; acquisitions, if any,including identification of appropriate targets and successfulintegration of any acquired business; product liability claims;weather conditions; crop yields; changes in U.S., foreign or local taxlaws and effective rates; interest rate fluctuations; the loss ofsignificant customers or a substantial reduction in orders from thesecustomers or the bankruptcy of any such customer; changes in businessstrategy or development plans; availability, terms and deployment ofcapital; dependence on co-packers, some of whom may be competitors orsole-source suppliers; changes in, or the failure or inability tocomply with, U.S., foreign and local governmental regulations;litigation; industry trends, including changes in buying, inventoryand other business practices by customers; public safety and healthissues; and other factors.

These factors and other risks and uncertainties are described inmore detail, from time to time, in the Company's filings with theSecurities and Exchange Commission, including its annual report onForm 10-K. Investors are cautioned not to place undue reliance onthese forward-looking statements, which speak only as of the datehereof. The Company does not undertake to update any of thesestatements in light of new information or future events.

Our declaration of future dividends, if any, is subject to finaldetermination of our Board of Directors each quarter after its reviewof our then-current strategy, applicable debt covenants, and financialperformance and position.
Del Monte Foods Company - Selected Financial Information

Net Sales by Segment
(In millions)

Three Months Ended Fiscal Year Ended
-------------------- -------------------
April 30, May 1, April 30, May 1,
Net Sales: 2006 2005 2006 2005
---------- --------- --------- ---------
Consumer Products $ 573.4 $ 554.0 $2,142.3 $2,059.4
Pet Products 225.8 220.4 856.3 839.9
---------- --------- --------- ---------
Total company $ 799.2 $ 774.4 $2,998.6 $2,899.3
========== ========= ========= =========


Operating Income by Segment
(In millions)

Three Months Ended Fiscal Year Ended
-------------------- -------------------
April 30, May 1, April 30, May 1,
Operating Income: 2006 2005 2006 2005
---------- --------- --------- ---------
Consumer Products $ 59.1 $ 52.5 $ 212.4 $ 212.1
Pet Products 41.1 42.9 141.8 126.4
Corporate (a) (13.3) (13.4) (49.4) (44.2)
---------- --------- --------- ---------
Total company $ 86.9 $ 82.0 $ 304.8 $ 294.3
========== ========= ========= =========


----------
(a) Corporate represents expenses not directly attributable to
reportable segments.


Selected Balance Sheet Data
(In millions) As of
----------------------
April 30, May 1,
2006 2005
--------- ---------

Cash and cash equivalents $ 459.9 $ 145.9
Restricted cash 43.3 -
Trade accounts receivable, net of allowance 237.8 212.6
Inventories 764.2 760.0
Assets of discontinued operations - 254.7
Total assets 3,622.9 3,530.6
Accounts payable and accrued expenses 450.9 384.5
Liabilities of discontinued operations - 39.2
Short-term borrowings 1.7 1.0
Long-term debt, including current portion 1,301.1 1,302.7
Stockholders' equity 1,314.0 1,260.6


Selected Cash Flow Data
(In millions) Fiscal Year Ended
----------------------
April 30, May 1,
2006 2005
--------- ---------

Net cash provided by operating activities $ 261.2 $ 273.3

Net cash provided by (used in) investing
activities 182.4 (1) (71.8)
--------- ---------

Total 443.6 201.5

Net cash used in financing activities (129.0) (92.6)

Depreciation and amortization (2) 92.0 91.0

(1) Includes cash flows from the sale of the soup and infant feeding
businesses representing net proceeds of $265.7 million less $43.3
million related to mandatory debt prepayments.

(2) Includes approximately $10 million and $12 million of depreciation
expense related to the soup and infant feeding businesses for
fiscal 2006 and fiscal 2005, respectively.

Other Financial Data
(In millions, except per share data) As of
----------------------
April 30, May 1,
2006 2005
--------- ---------

Short-term borrowings $ 1.7 $ 1.0
Current portion of long-term debt 58.6 1.7
Long-term debt (excluding current portion) 1,242.5 1,301.0
--------- ---------

Total Debt 1,302.8 1,303.7
--------- ---------

Cash, cash equivalents and restricted cash 503.2 145.9
--------- ---------
Total Debt Net of Cash and Restricted Cash $ 799.6 $1,157.8
========= =========


DEL MONTE FOODS COMPANY
Consolidated Statements of Income
(In millions, except share and per share data)


Three Months Ended Fiscal Year Ended
--------------------------- ---------------------------
April 30, May 1, April 30, May 1,
2006 2005 2006 2005
------------- ------------- ------------- -------------

Net sales $ 799.2 $ 774.4 $ 2,998.6 $ 2,899.3
Cost of
products sold 595.3 583.1 2,213.9 2,155.5
------------- ------------- ------------- -------------
Gross profit 203.9 191.3 784.7 743.8
Selling,
general and
administrative
expense 117.0 109.3 479.9 449.5
------------- ------------- ------------- -------------
Operating
income 86.9 82.0 304.8 294.3
Interest
expense 21.4 54.4 88.2 130.8
Other expense 0.1 0.2 1.1 2.8
------------- ------------- ------------- -------------
Income from
continuing
operations
before
income taxes 65.4 27.4 215.5 160.7
Provision for
income taxes 23.7 9.8 78.5 60.1
------------- ------------- ------------- -------------
Income from
continuing
operations 41.7 17.6 137.0 100.6

Income from
discontinued
operations
before
income taxes 23.9 2.8 51.0 28.4
Provision
for
income
taxes 7.7 1.1 18.1 11.1
------------- ------------- ------------- -------------
Income from
discontinued
operations 16.2 1.7 32.9 17.3

------------- ------------- ------------- -------------
Net income $ 57.9 $ 19.3 $ 169.9 $ 117.9
============= ============= ============= =============

Earnings per
common share
(EPS)
Basic:
Basic Average
Shares 199,953,333 211,231,379 201,747,249 210,554,838
EPS -
Continuing
Operations $ 0.21 $ 0.08 $ 0.68 $ 0.48
EPS -
Discontinued
Operations 0.08 0.01 0.16 0.08
------------- ------------- ------------- -------------
EPS - Total $ 0.29 $ 0.09 $ 0.84 $ 0.56
============= ============= ============= =============

Diluted:
Diluted
Average
Shares 202,901,190 212,948,929 204,192,309 212,355,623
EPS -
Continuing
Operations $ 0.21 $ 0.08 $ 0.67 $ 0.48
EPS -
Discontinued
Operations 0.08 0.01 0.16 0.08
------------- ------------- ------------- -------------
EPS - Total $ 0.29 $ 0.09 $ 0.83 $ 0.56
============= ============= ============= =============