Summary                                                                                               $ in millions except per share amounts                                                                                          Thirteen Weeks Ended                    Twenty-six Weeks Ended                                        June 26,     June 27,     %             June 26,     June 27,     %                                   2009         2008         Change        2009         2008         Change                                                                                                          Net Sales                 $  147.7     $  239.2     (38  )%       $  285.6     $  443.4     (36  )%   Net Earnings                 11.6         42.5      (73  )%          14.4         78.0      (82  )%   Diluted Net Earnings                                                                                  per Common Share          $  0.19      $  0.69      (72  )%       $  0.24      $  1.27      (81  )%    -------------------------------------------------------------------------------  

Net earnings of $11.6 million in the second quarter, on sales of $148 million.

Sales and orders decreased in all segments and regions.

Low volume caused decreases in profit margin rates.

Currency translation had an unfavorable effect on sales ($5 million for the quarter and $11 million year-to-date) and net earnings ($2 million for the quarter and $4 million year-to-date).

Cash flow from operations was $69 million, up 26 percent compared to last year.

Management continues to focus on working capital management. Inventories decreased $23 million and receivables decreased $15 million so far this year.

"While weak economic conditions continued to affect our business, profitability improved from the first quarter" said Patrick J. McHale, President and Chief Executive Officer. "We are resolved to continue investing in growth initiatives including product development, international expansion and entering new markets. At the same time, we remain flexible and ready to adapt to the economic environment as appropriate."

Consolidated Results

Sales are down 38 percent for the quarter and 36 percent year-to-date. For the quarter, sales decreased 33 percent in the Americas, 52 percent in Europe (46 percent at consistent translation rates) and 29 percent in Asia Pacific. Year-to-date sales decreased 32 percent in the Americas, 47 percent in Europe (40 percent at consistent translation rates) and 27 percent in Asia Pacific.

Gross profit margin, expressed as a percentage of sales, was 49.4 percent for the quarter and 48.1 percent year-to-date, down from 53.8 percent and 54.3 percent, respectively, for the comparable periods last year. Decreases in both the quarter and year-to-date are due to lower production volumes (approximately 4 percentage points), unfavorable currency translation rates (approximately 1½ percentage points) and increased pension cost (approximately 1 percentage point). Decreases were offset somewhat by favorable material costs (approximately 1 percentage point). Workforce reduction costs in the first quarter affected the year-to-date margin rate by approximately 1 percentage point.

Total operating expenses for the quarter and year-to-date are down 12 percent and 7 percent, respectively. Decreases from translation effects ($2 million for the quarter, $4 million year-to-date), lower incentive and bonus provisions and spending reductions are partially offset by higher product development and pension expenses. Sustained investment in product development reflects the Company's commitment to new and improved products as a key component of its strategy for future growth. Year-to-date operating expenses include approximately $2 million related to workforce reductions made primarily in the first quarter.

  Segment Results Certain measurements of segment operations are summarized below:                                                                                      Thirteen Weeks                                    Twenty-six Weeks                                                                   Industrial      Contractor       Lubrication      Industrial        Contractor        Lubrication                                                                                                                                        Net sales (in millions)          $  73.3         $  60.4          $  14.0          $  148.6          $  107.8          $  29.2       Net sales percentage change                                                                                                          from last year                      (45   )%        (26   )%         (42   )%         (40    )%         (27    )%         (39   )%   Operating earnings as a                                                                                                              percentage of net sales                                                                                                              2009                                18    %         20    %          (12   )%         17     %          12     %          (11   )%   2008                                33    %         25    %          19    %          33     %          23     %          19    %     -------------------------------------------------------------------------------  

All segments experienced double-digit percentage decreases in sales compared to last year for both the quarter and year-to-date. Second quarter operating earnings of all segments reflect the lower cost structure resulting from workforce and other spending reduction actions taken in the first quarter of 2009 and the fourth quarter of 2008. Year-to-date operating earnings of all segments reflect the impacts of low volume, workforce reduction costs and higher product development spending. Contractor operating results are affected by sales, costs and expenses related to the rollout of entry-level paint sprayers to additional paint and home center stores in both 2009 and 2008. Mix of product sold and costs related to discontinued products contributed to lower margin rates in the Lubrication segment.