##### 



ELEVEN-YEAR FINANCIAL SUMMARY
 For the years ended January 31Dollars in thousands except per-share data
    
    2008
    
    2007
    
    2006OPERATIONS FOR THE YEARNet salesOngoing operations
    
    $
    233,957
    
    
    $
    217,529
    
    
    $
    204,528Sold businesses(a)
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    233,957
    
    
    
    217,529
    
    
    
    204,528Gross profit
    
    
    59,148
    
    
    
    54,882
    
    
    
    53,231Operating incomeOngoing operations
    
    
    41,145
    
    
    
    38,302
    
    
    
    37,284Sold businesses(a)
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    41,145
    
    
    
    38,302
    
    
    
    37,284Income before income taxes
    
    
    42,224
    
    
    
    38,835
    
    
    
    37,494Net income
    
    $
    27,802
    
    
    $
    25,441
    
    
    $
    24,262Net income as % of sales
    
    
    11.9
    %
    
    
    11.7
    %
    
    
    11.9
    %Net income as % of beginning equity
    
    
    28.3
    %
    
    
    30.1
    %
    
    
    36.7
    %Cash dividends
    
    $
    7,966
    
    
    $
    6,507
    
    
    $
    5,056FINANCIAL POSITIONCurrent assets
    
    $
    100,869
    
    
    $
    73,219
    
    
    $
    71,345Current liabilities
    
    
    22,108
    
    
    
    16,464
    
    
    
    20,050Working capital
    
    $
    78,761
    
    
    $
    56,755
    
    
    $
    51,295Current ratio
    
    
    4.56
    
    
    
    4.45
    
    
    
    3.56Property, plant and equipment
    
    $
    35,743
    
    
    $
    36,264
    
    
    $
    25,602Total assets
    
    
    147,861
    
    
    
    119,764
    
    
    
    106,157Long-term debt, less current portion
    
    
    
    
    
    
    
    
    
    
    9Shareholders equity
    
    $
    118,275
    
    
    $
    98,268
    
    
    $
    84,389Long-term debt / total capitalization
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.0
    %Inventory turnover (CGS / year-end inventory)
    
    
    4.8
    
    
    
    5.8
    
    
    
    5.4CASH FLOWS PROVIDED BY (USED IN)Operating activities
    
    $
    27,151
    
    
    $
    26,313
    
    
    $
    21,189Investing activities
    
    
    (4,433
    )
    
    
    (18,664
    )
    
    
    (11,435
    )Financing activities
    
    
    (8,270
    )
    
    
    (10,277
    )
    
    
    (6,946
    )Increase (decrease) in cash and cash equivalents
    
    
    14,489
    
    
    
    (2,626
    )
    
    
    2,790COMMON STOCK DATANet income per share  basic
    
    $
    1.54
    
    
    $
    1.41
    
    
    $
    1.34Net income per share  diluted
    
    
    1.53
    
    
    
    1.39
    
    
    
    1.32Cash dividends per share
    
    
    0.44
    
    
    
    0.36
    
    
    
    0.28Book value per share
    
    
    6.52
    
    
    
    5.45
    
    
    
    4.67Stock price range during yearHigh
    
    $
    45.85
    
    
    $
    42.70
    
    
    $
    33.15Low
    
    
    26.20
    
    
    
    25.46
    
    
    
    16.54Close
    
    $
    30.02
    
    
    $
    28.43
    
    
    $
    31.60Shares and stock units outstanding, year end (in thousands)
    
    
    18,130
    
    
    
    18,044
    
    
    
    18,072Number of shareholders, year end
    
    
    8,700
    
    
    
    8,992
    
    
    
    9,263OTHER DATAPrice / earnings ratio
    
    
    19.6
    
    
    
    20.5
    
    
    
    23.9Average number of employees
    
    
    930
    
    
    
    884
    
    
    
    845Sales per employee
    
    $
    252
    
    
    $
    246
    
    
    $
    242Backlog
    
    $
    66,628
    
    
    $
    44,237
    
    
    $
    43,619
 
 All per-share, shares outstanding and market price data reflect the October 2004 two-for-one
stock split, the January 2003 two-for-one stock split and the July 2001 three-for-two stock
split. All other figures are as reported.Price / earnings ratio is determined as closing stock price divided by net income per share 
diluted.Book value per share is computed by dividing total shareholders equity by the number of common
shares and stock units outstanding.(a)
    
    In fiscal 2003, 2001, and 2000, the company sold its Beta Raven Industrial Controls, Plastic
Tank, and Glasstite businesses, respectively.




---



##### 



2005
    
    2004
    
    2003
    
    2002
    
    2001
    
    2000
    
    1999
    
    1998$168,086
    
    $
    142,727
    
    
    $
    119,589
    
    
    $
    112,018
    
    
    $
    113,360
    
    
    $
    107,862
    
    
    $
    108,408
    
    
    $
    104,489
    
    
    
    
    
    
    1,314
    
    
    
    6,497
    
    
    
    19,498
    
    
    
    42,523
    
    
    
    46,798
    
    
    
    47,679168,086
    
    
    142,727
    
    
    
    120,903
    
    
    
    118,515
    
    
    
    132,858
    
    
    
    150,385
    
    
    
    155,206
    
    
    
    152,16843,200
    
    
    33,759
    
    
    
    27,515
    
    
    
    23,851
    
    
    
    21,123
    
    
    
    24,217
    
    
    
    24,441
    
    
    
    24,92927,862
    
    
    21,981
    
    
    
    16,861
    
    
    
    13,788
    
    
    7,417
    (c)
    
    
    7,971
    
    
    
    8,220
    
    
    
    9,555
    
    
    (355
    )
    
    
    204
    
    
    
    (613
    )
    
    3,331
    (d)
    
    2,606
    (e)
    
    
    1,453
    
    
    
    1,00727,862
    
    
    21,626
    
    
    
    17,065
    
    
    
    13,175
    
    
    
    10,748
    
    
    
    10,577
    
    
    
    9,673
    
    
    
    10,56227,955
    
    
    21,716
    
    
    
    17,254
    
    
    
    13,565
    
    
    
    10,924
    
    
    
    10,503
    
    
    
    9,649
    
    
    12,540
    (f)$  17,891
    
    $
    13,836
    
    
    $
    11,185
    
    
    $
    8,847
    
    
    $
    6,411

    (c)(d)
        $
    6,762
    (e)
    
    $
    6,182
    
    
    $
    8,06210.6%
    
    
    9.7
    %
    
    
    9.3
    %
    
    
    7.5
    %
    
    
    4.8
    %
    
    
    4.5
    %
    
    
    4.0
    %
    
    
    5.3
    %26.9%
    
    
    23.8
    %
    
    
    21.5
    %
    
    
    18.4
    %
    
    
    11.8
    %
    
    
    10.9
    %
    
    
    10.0
    %
    
    
    14.2
    %$ 15,298(b)
    
    $
    3,075
    
    
    $
    2,563
    
    
    $
    2,371
    
    
    $
    2,399
    
    
    $
    2,895
    
    
    $
    2,944
    
    
    $
    2,709$ 61,592
    
    $
    55,710
    
    
    $
    49,351
    
    
    $
    45,308
    
    
    $
    51,817
    
    
    $
    55,371
    
    
    $
    60,279
    
    
    $
    57,28520,950
    
    
    11,895
    
    
    
    13,167
    
    
    
    13,810
    
    
    
    13,935
    
    
    
    14,702
    
    
    
    15,128
    
    
    
    17,816$  40,642
    
    $
    43,815
    
    
    $
    36,184
    
    
    $
    31,498
    
    
    $
    37,882
    
    
    $
    40,669
    
    
    $
    45,151
    
    
    $
    39,4692.94
    
    
    4.68
    
    
    
    3.75
    
    
    
    3.28
    
    
    
    3.72
    
    
    
    3.77
    
    
    
    3.98
    
    
    
    3.22$  19,964
    
    $
    15,950
    
    
    $
    16,455
    
    
    $
    14,059
    
    
    $
    11,647
    
    
    $
    15,068
    
    
    $
    19,563
    
    
    $
    19,81788,509
    
    
    79,508
    
    
    
    72,816
    
    
    
    67,836
    
    
    
    65,656
    
    
    
    74,047
    
    
    
    83,657
    
    
    
    82,066
    
    
    57
    
    
    
    151
    
    
    
    280
    
    
    
    2,013
    
    
    
    3,024
    
    
    
    4,572
    
    
    
    1,128$  66,082
    
    $
    66,471
    
    
    $
    58,236
    
    
    $
    52,032
    
    
    $
    47,989
    
    
    $
    54,519
    
    
    $
    62,293
    
    
    $
    61,5630.0%
    
    
    0.1
    %
    
    
    0.3
    %
    
    
    0.5
    %
    
    
    4.0
    %
    
    
    5.3
    %
    
    
    6.8
    %
    
    
    1.8
    %5.4
    
    
    6.5
    
    
    
    4.4
    
    
    
    5.0
    
    
    
    5.9
    
    
    
    5.2
    
    
    
    4.9
    
    
    
    4.8$  18,871
    
    $
    19,732
    
    
    $
    12,735
    
    
    $
    18,496
    
    
    $
    9,441
    
    
    $
    10,375
    
    
    $
    8,326
    
    
    $
    9,274(7,631)
    
    
    (4,352
    )
    
    
    (9,166
    )
    
    
    (13,152
    )
    
    
    9,752
    
    
    
    6,323
    
    
    
    (3,127
    )
    
    
    (4,979
    )(19,063)
    
    
    (6,155
    )
    
    
    (5,830
    )
    
    
    (8,539
    )
    
    
    (14,227
    )
    
    
    (16,326
    )
    
    
    (2,714
    )
    
    
    (4,884
    )(7,823)
    
    
    9,225
    
    
    
    (2,261
    )
    
    
    (3,195
    )
    
    
    4,966
    
    
    
    372
    
    
    
    2,485
    
    
    
    (589
    )$     0. 99
    
    $
    0.77
    
    
    $
    0.61
    
    
    $
    0.48
    
    
    $
    0.31
    
    
    $
    0.26
    
    
    $
    0.22
    
    
    $
    0.280.97
    
    
    0.75
    
    
    
    0.60
    
    
    
    0.47
    
    
    
    0.31
    
    
    
    0.26
    
    
    
    0.22
    
    
    
    0.280.85(b)
    
    
    0.17
    
    
    
    0.14
    
    
    
    0.13
    
    
    
    0.12
    
    
    
    0.11
    
    
    
    0.10
    
    
    
    0.093.67
    
    
    3.68
    
    
    
    3.21
    
    
    
    2.82
    
    
    
    2.53
    
    
    
    2.32
    
    
    
    2.21
    
    
    
    2.13$   26.94
    
    $
    15.23
    
    
    $
    9.20
    
    
    $
    5.88
    
    
    $
    3.48
    
    
    $
    3.04
    
    
    $
    3.79
    
    
    $
    4.2913.08
    
    
    7.56
    
    
    
    4.38
    
    
    
    3.02
    
    
    
    1.88
    
    
    
    2.25
    
    
    
    2.54
    
    
    
    3.27$   18.38
    
    $
    14.11
    
    
    $
    7.91
    
    
    $
    5.64
    
    
    $
    3.04
    
    
    $
    2.40
    
    
    $
    2.67
    
    
    $
    3.7717,999
    
    
    18,041
    
    
    
    18,133
    
    
    
    18,424
    
    
    
    18,956
    
    
    
    23,496
    
    
    
    28,164
    
    
    
    28,9446,269
    
    
    3,560
    
    
    
    2,781
    
    
    
    2,387
    
    
    
    2,460
    
    
    
    2,749
    
    
    
    3,014
    
    
    
    3,22118.9
    
    
    18.8
    
    
    
    13.2
    
    
    
    12.1
    
    
    
    9.8
    
    
    
    9.2
    
    
    
    12.4
    
    
    
    13.7835
    
    
    787
    
    
    
    784
    
    
    
    858
    
    
    
    1,082
    
    
    
    1,369
    
    
    
    1,507
    
    
    
    1,573$     201
    
    $
    181
    
    
    $
    154
    
    
    $
    138
    
    
    $
    123
    
    
    $
    110
    
    
    $
    103
    
    
    $
    97$43,646
    
    $
    47,120
    
    
    $
    42,826
    
    
    $
    33,834
    
    
    $
    38,239
    
    
    $
    44,935
    
    
    $
    47,431
    
    
    $
    47,154
 
 (b)
    
    Includes a special dividend of $.625 per share that was paid in fiscal 2005.(c)
    
    Includes $2.6 million of business repositioning charges, net of gains on plant sales, primarily
in Electronic Systems and Aerostar.(d)
    
    Includes the $3.1 million pretax gain ($1.4 million net of tax) on the sale of the companys
Plastic Tank Division.(e)
    
    Includes the $1.2 million pretax gain ($764,000 net of tax) on the sale of assets of the
companys Glasstite subsidiary.(f)
    
    Includes the $1.8 million pretax gain ($1.2 million net of tax) on the sale of an investment in
an affiliate.




---



##### 



BUSINESS SEGMENTS
 For the years ended January 31Dollars in thousands
    
    2008
    
    2007
    
    2006
    
    2005
    
    2004
    
    2003ENGINEERED FILMS DIVISIONSales
    
    $
    84,783
    
    
    $
    91,082
    
    
    $
    82,794
    
    
    $
    58,657
    
    
    $
    42,636
    
    
    $
    35,096Operating income
    
    
    17,655
    
    
    
    23,440
    
    
    
    19,907
    
    
    
    15,739
    
    
    
    10,563
    
    
    
    10,030Assets
    
    
    43,688
    
    
    
    41,988
    
    
    
    33,512
    
    
    
    25,181
    
    
    
    15,941
    
    
    
    17,244Capital expenditures
    
    
    4,012
    
    
    
    13,266
    
    
    
    7,359
    
    
    
    3,960
    
    
    
    712
    
    
    
    4,080Depreciation & amortization
    
    
    4,046
    
    
    
    2,887
    
    
    
    2,436
    
    
    
    1,403
    
    
    
    1,611
    
    
    
    1,475FLOW CONTROLS DIVISIONSales
    
    $
    64,291
    
    
    $
    45,515
    
    
    $
    47,506
    
    
    $
    40,726
    
    
    $
    35,059
    
    
    $
    28,496Operating income
    
    
    19,102
    
    
    
    10,111
    
    
    
    13,586
    
    
    
    10,516
    (b)
    
    
    8,254
    
    
    
    6,897Assets
    
    
    36,922
    
    
    
    27,629
    
    
    
    30,047
    
    
    
    23,701
    
    
    
    19,304
    
    
    
    21,483Capital expenditures
    
    
    1,008
    
    
    
    577
    
    
    
    938
    
    
    
    1,372
    
    
    
    341
    
    
    
    729Depreciation & amortization
    
    
    1,125
    
    
    
    1,142
    
    
    
    1,085
    
    
    
    876
    
    
    
    1,004
    
    
    
    948ELECTRONIC SYSTEMS DIVISIONSales
    
    $
    67,609
    
    
    $
    66,278
    
    
    $
    56,219
    
    
    $
    47,049
    
    
    $
    44,307
    
    
    $
    38,589Operating income
    
    
    10,349
    
    
    
    10,850
    
    
    
    8,916
    
    
    
    4,492
    
    
    
    5,797
    
    
    
    4,022Assets
    
    
    25,865
    
    
    
    25,175
    
    
    
    20,191
    
    
    
    17,382
    
    
    
    14,975
    
    
    
    14,528Capital expenditures
    
    
    1,077
    
    
    
    1,357
    
    
    
    1,612
    
    
    
    1,201
    
    
    
    841
    
    
    
    395Depreciation & amortization
    
    
    1,237
    
    
    
    1,086
    
    
    
    871
    
    
    
    880
    
    
    
    850
    
    
    
    978AEROSTARSales
    
    $
    17,274
    
    
    $
    14,654
    
    
    $
    18,009
    
    
    $
    21,654
    
    
    $
    20,725
    
    
    $
    17,408Operating income
    
    
    1,506
    
    
    
    707
    
    
    
    2,133
    
    
    
    3,609
    
    
    
    3,092
    (c)
    
    
    1,012Assets
    
    
    9,857
    
    
    
    8,161
    
    
    
    6,837
    
    
    
    7,492
    
    
    
    7,756
    
    
    
    7,032Capital expenditures
    
    
    156
    
    
    
    812
    
    
    
    179
    
    
    
    542
    
    
    
    1,130
    
    
    
    570Depreciation & amortization
    
    
    499
    
    
    
    375
    
    
    
    359
    
    
    
    389
    
    
    
    436
    
    
    
    374REPORTABLE SEGMENTS TOTALSales
    
    $
    233,957
    
    
    $
    217,529
    
    
    $
    204,528
    
    
    $
    168,086
    
    
    $
    142,727
    
    
    $
    119,589Operating income
    
    
    48,612
    
    
    
    45,108
    
    
    
    44,542
    
    
    
    34,356
    (b)
    
    
    27,706
    (c)
    
    
    21,961Assets
    
    
    116,332
    
    
    
    102,953
    
    
    
    90,587
    
    
    
    73,756
    
    
    
    57,976
    
    
    
    60,287Capital expenditures
    
    
    6,253
    
    
    
    16,012
    
    
    
    10,088
    
    
    
    7,075
    
    
    
    3,024
    
    
    
    5,774Depreciation & amortization
    
    
    6,907
    
    
    
    5,490
    
    
    
    4,751
    
    
    
    3,548
    
    
    
    3,901
    
    
    
    3,775CORPORATE & OTHER(a)Sales from sold business
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    1,314Operating income (loss) from sold business
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (355
    )
    
    
    204Operating (loss) from administrative expenses
    
    
    (7,467
    )
    
    
    (6,806
    )
    
    
    (7,258
    )
    
    
    (6,494
    )
    
    
    (5,725
    )
    
    
    (5,100
    )Assets
    
    
    31,529
    
    
    
    16,811
    
    
    
    15,570
    
    
    
    14,753
    
    
    
    21,532
    
    
    
    12,529Capital expenditures
    
    
    382
    
    
    
    510
    
    
    
    270
    
    
    
    466
    
    
    
    306
    
    
    
    259Depreciation & amortization
    
    
    437
    
    
    
    395
    
    
    
    400
    
    
    
    293
    
    
    
    244
    
    
    
    191TOTAL COMPANYSales
    
    $
    233,957
    
    
    $
    217,529
    
    
    $
    204,528
    
    
    $
    168,086
    
    
    $
    142,727
    
    
    $
    120,903Operating income
    
    
    41,145
    
    
    
    38,302
    
    
    
    37,284
    
    
    
    27,862
    (b)
    
    
    21,626
    (c)
    
    
    17,065Assets
    
    
    147,861
    
    
    
    119,764
    
    
    
    106,157
    
    
    
    88,509
    
    
    
    79,508
    
    
    
    72,816Capital expenditures
    
    
    6,635
    
    
    
    16,522
    
    
    
    10,358
    
    
    
    7,541
    
    
    
    3,330
    
    
    
    6,033Depreciation & amortization
    
    
    7,344
    
    
    
    5,885
    
    
    
    5,151
    
    
    
    3,841
    
    
    
    4,145
    
    
    
    3,966
 
 (a)
    
    Operating income from sold businesses includes administrative expenses directly attributable to
the sold businesses. Assets are principally cash, investments, deferred taxes and notes receivable.(b)
    
    Includes a $1.3 million pretax writeoff of assets related to the Fluent Systems product line.(c)
    
    Includes $182,000 of pretax gain on plant sale.




---



##### 



FINANCIAL REVIEW AND ANALYSIS
 Comparative Results of Operations
 For
the years ended January 312008
    
    2007
    
    2006%
    
    %
    
    
    
    
    
    %
    
    %
    
    
    
    
    
    %
    
    %Dollars in thousands, except per-share data
    
    
    
    
    
    sales
    
    change
    
    
    
    
    
    sales
    
    change
    
    
    
    
    
    sales
    
    changeNet sales
    
    $
    233,957
    
    
    
    
    
    
    
    + 7.6
    
    
    $
    217,529
    
    
    
    
    
    
    
    +6.4
    
    
    $
    204,528
    
    
    
    
    
    
    
    +21.7Gross profit
    
    
    59,148
    
    
    
    25.3
    
    
    
    + 7.8
    
    
    
    54,882
    
    
    
    25.2
    
    
    
    +3.1
    
    
    
    53,231
    
    
    
    26.0
    
    
    
    +23.2Operating expenses
    
    
    18,003
    
    
    
    7.7
    
    
    
    + 8.6
    
    
    
    16,580
    
    
    
    7.6
    
    
    
    +4.5
    
    
    
    15,947
    
    
    
    7.8
    
    
    
    +12.9Operating income
    
    
    41,145
    
    
    
    17.6
    
    
    
    + 7.4
    
    
    
    38,302
    
    
    
    17.6
    
    
    
    +2.7
    
    
    
    37,284
    
    
    
    18.2
    
    
    
    +33.8Income before income taxes
    
    
    42,224
    
    
    
    18.0
    
    
    
    + 8.7
    
    
    
    38,835
    
    
    
    17.9
    
    
    
    +3.6
    
    
    
    37,494
    
    
    
    18.3
    
    
    
    +34.1Income taxes
    
    
    14,422
    
    
    
    6.2
    
    
    
    + 7.7
    
    
    
    13,394
    
    
    
    6.2
    
    
    
    +1.2
    
    
    
    13,232
    
    
    
    6.5
    
    
    
    +31.5Net income
    
    $
    27,802
    
    
    
    11.9
    
    
    
    + 9.3
    
    
    $
    25,441
    
    
    
    11.7
    
    
    
    +4.9
    
    
    $
    24,262
    
    
    
    11.9
    
    
    
    +35.6Net income per share  diluted
    
    $
    1.53
    
    
    
    
    
    
    
    +10.1
    
    
    $
    1.39
    
    
    
    
    
    
    
    +5.3
    
    
    $
    1.32
    
    
    
    
    
    
    
    +36.1Effective income tax rate
    
    
    34.2
    %
    
    
    
    
    
    
    0.9
    
    
    
    34.5
    %
    
    
    
    
    
    
    2.3
    
    
    
    35.3
    %
    
    
    
    
    
    
    1.9
 Executive Summary
     Fiscal 2008 versus Fiscal 2007




---



##### 



FINANCIAL REVIEW AND ANALYSIS
 Fiscal 2007 versus Fiscal 2006
   Prospects
  Performance Measures
  2008
    
    2007
    
    2006
    
    2005
    
    2004
    
    2003Net income as % ofNet sales
    
    
    11.9
    %
    
    
    11.7
    %
    
    
    11.9
    %
    
    
    10.6
    %
    
    
    9.7
    %
    
    
    9.3
    %Average assets
    
    
    20.8
    %
    
    
    22.5
    %
    
    
    24.9
    %
    
    
    21.3
    %
    
    
    18.2
    %
    
    
    15.9
    %Beginning equity
    
    
    28.3
    %
    
    
    30.1
    %
    
    
    36.7
    %
    
    
    26.9
    %
    
    
    23.8
    %
    
    
    21.5
    %




---



##### 



Segment Analysis
 Net Sales and Operating Income by Segment
 2008
    
    
    2007
    
    
    2006%
    
    
    
    
    
    
    %
    
    
    
    
    
    
    %Dollars in thousands
    
    amount
    
    
    change
    
    
    amount
    
    
    change
    
    
    amount
    
    
    changeNet SalesEngineered Films
    
    $
    84,783
    
    
    
    6.9
    
    
    $
    91,082
    
    
    
    +10.0
    
    
    $
    82,794
    
    
    
    +41.1Flow Controls
    
    
    64,291
    
    
    
    +41.3
    
    
    
    45,515
    
    
    
    4.2
    
    
    
    47,506
    
    
    
    +16.6Electronic Systems
    
    
    67,609
    
    
    
    +  2.0
    
    
    
    66,278
    
    
    
    +17.9
    
    
    
    56,219
    
    
    
    +19.5Aerostar
    
    
    17,274
    
    
    
    +17.9
    
    
    
    14,654
    
    
    
    18.6
    
    
    
    18,009
    
    
    
    16.8Total
    
    $
    233,957
    
    
    
    + 7.6
    
    
    $
    217,529
    
    
    
    + 6.4
    
    
    $
    204,528
    
    
    
    +21.7
 2008
    
    
    2007
    
    
    2006%
    
    
    
    
    
    
    %
    
    
    
    
    
    
    %amount
    
    

sales
    
    
    amount
    
    

sales
    
    
    amount
    
    

salesOperating IncomeEngineered Films
    
    $
    17,655
    
    
    
    20.8
    
    
    $
    23,440
    
    
    
    25.7
    
    
    $
    19,907
    
    
    
    24.0Flow Controls
    
    
    19,102
    
    
    
    29.7
    
    
    
    10,111
    
    
    
    22.2
    
    
    
    13,586
    
    
    
    28.6Electronic Systems
    
    
    10,349
    
    
    
    15.3
    
    
    
    10,850
    
    
    
    16.4
    
    
    
    8,916
    
    
    
    15.9Aerostar
    
    
    1,506
    
    
    
    8.7
    
    
    
    707
    
    
    
    4.8
    
    
    
    2,133
    
    
    
    11.8Corporate expenses
    
    
    (7,467
    )
    
    
    
    
    
    
    (6,806
    )
    
    
    
    
    
    
    (7,258
    )Total
    
    $
    41,145
    
    
    
    17.6
    
    
    $
    38,302
    
    
    
    17.6
    
    
    $
    37,284
    
    
    
    18.2
 Engineered Films
  
 Engineered Films  Comparative Results of Operations
 2008
    

    2007
    

    2006%
    
    %
    
    
    
    
    
    %
    
    %
    
    
    
    
    
    %
    
    %Dollars in thousands
    
    
    
    
    

sales
    
    change
    
    
    
    
    

sales
    
    change
    
    
    
    
    

sales
    
    changeNet sales
    
    $
    84,783
    
    
    
    
    
    
    
    6.9
    
    
    $
    91,082
    
    
    
    
    
    
    
    +10.0
    
    
    $
    82,794
    
    
    
    
    
    
    
    +41.1Gross profit
    
    
    21,040
    
    
    
    24.8
    
    
    
    21.5
    
    
    
    26,803
    
    
    
    29.4
    
    
    
    +17.5
    
    
    
    22,818
    
    
    
    27.6
    
    
    
    +24.1Selling expenses
    
    
    3,385
    
    
    
    4.0
    
    
    
    + 0.7
    
    
    
    3,363
    
    
    
    3.7
    
    
    
    +15.5
    
    
    
    2,911
    
    
    
    3.5
    
    
    
    +  9.7Operating income
    
    
    17,655
    
    
    
    20.8
    
    
    
    24.7
    
    
    
    23,440
    
    
    
    25.7
    
    
    
    +17.7
    
    
    
    19,907
    
    
    
    24.0
    
    
    
    +26.5
 Fiscal 2008 versus Fiscal 2007




---



##### 



FINANCIAL REVIEW AND ANALYSIS
 Fiscal 2007 versus Fiscal 2006
   Prospects
  Flow Controls
  
 Flow Controls  Comparative Results of Operations
 2008
    
    2007
    
    2006%
    
    %
    
    
    
    
    
    %
    
    %
    
    
    
    
    
    %
    
    %Dollars in thousands
    
    
    
    
    
    sales
    
    change
    
    
    
    
    
    sales
    
    change
    
    
    
    
    
    sales
    
    changeNet sales
    
    $
    64,291
    
    
    
    
    
    
    
    +41.3
    
    
    $
    45,515
    
    
    
    
    
    
    
     4.2
    
    
    $
    47,506
    
    
    
    
    
    
    
    +16.6Gross profit
    
    
    24,397
    
    
    
    37.9
    
    
    
    +67.1
    
    
    
    14,599
    
    
    
    32.1
    
    
    
     16.9
    
    
    
    17,571
    
    
    
    37.0
    
    
    
    +17.7Selling expenses
    
    
    5,295
    
    
    
    8.2
    
    
    
    +18.0
    
    
    
    4,488
    
    
    
    9.9
    
    
    
    +12.6
    
    
    
    3,985
    
    
    
    8.4
    
    
    
    +27.3Operating income
    
    
    19,102
    
    
    
    29.7
    
    
    
    +88.9
    
    
    
    10,111
    
    
    
    22.2
    
    
    
     25.6
    
    
    
    13,586
    
    
    
    28.6
    
    
    
    +15.2
 Fiscal 2008 versus Fiscal 2007




---



##### 



Fiscal 2007 versus Fiscal 2006
   Prospects
  Electronic Systems
  
 Electronic Systems  Comparative Results of Operations
 2008
    

    2007
    
    2006%
    
    %
    
    
    
    
    
    %
    
    %
    
    
    
    
    
    %
    
    %Dollars in thousands
    
    
    
    
    
    sales
    
    change
    
    
    
    
    
    sales
    
    change
    
    
    
    
    
    sales
    
    changeNet sales
    
    $
    67,609
    
    
    
    
    
    
    
    + 2.0
    
    
    $
    66,278
    
    
    
    
    
    
    
    +17.9
    
    
    $
    56,219
    
    
    
    
    
    
    
    +19.5Gross profit
    
    
    11,502
    
    
    
    17.0
    
    
    
    3.8
    
    
    
    11,951
    
    
    
    18.0
    
    
    
    +21.9
    
    
    
    9,801
    
    
    
    17.4
    
    
    
    +84.4Selling expenses
    
    
    1,153
    
    
    
    1.7
    
    
    
    + 4.7
    
    
    
    1,101
    
    
    
    1.7
    
    
    
    +24.4
    
    
    
    885
    
    
    
    1.6
    
    
    
    +  7.5Operating income
    
    
    10,349
    
    
    
    15.3
    
    
    
    4.6
    
    
    
    10,850
    
    
    
    16.4
    
    
    
    +21.7
    
    
    
    8,916
    
    
    
    15.9
    
    
    
    +98.5
 Fiscal 2008 versus Fiscal 2007
   Fiscal 2007 versus Fiscal 2006




---



##### 



FINANCIAL REVIEW AND ANALYSIS
 Prospects
  Aerostar
  Aerostar  Comparative Results of Operations
 2008
    
    2007
    
    2006%
    
    %
    
    
    
    
    
    %
    
    %
    
    
    
    
    
    %
    
    %Dollars in thousands
    
    
    
    
    
    sales
    
    change
    
    
    
    
    
    sales
    
    change
    
    
    
    
    
    sales
    
    changeNet sales
    
    $
    17,274
    
    
    
    
    
    
    
    + 17.9
    
    
    $
    14,654
    
    
    
    
    
    
    
    -18.6
    
    
    $
    18,009
    
    
    
    
    
    
    
    -16.8Gross profit
    
    
    2,209
    
    
    
    12.8
    
    
    
    + 44.5
    
    
    
    1,529
    
    
    
    10.4
    
    
    
    -49.7
    
    
    
    3,041
    
    
    
    16.9
    
    
    
    -33.4Selling expenses
    
    
    703
    
    
    
    4.1
    
    
    
    - 14.5
    
    
    
    822
    
    
    
    5.6
    
    
    
    - 9.5
    
    
    
    908
    
    
    
    5.0
    
    
    
    - 4.9Operating income
    
    
    1,506
    
    
    
    8.7
    
    
    
    +113.0
    
    
    
    707
    
    
    
    4.8
    
    
    
    -66.9
    
    
    
    2,133
    
    
    
    11.8
    
    
    
    -40.9
 Fiscal 2008 versus Fiscal 2007
   Fiscal 2007 versus Fiscal 2006
   Prospects




---



##### 



Expenses, Income Taxes and Other
   Liquidity and Capital Resources
  
 Dollars in thousands
    
    2008
    
    2007
    
    2006Operating activities
    
    $
    27,151
    
    
    $
    26,313
    
    
    $
    21,189Investing activities
    
    
    (4,433
    )
    
    
    (18,664
    )
    
    
    (11,435
    )Financing activities
    
    
    (8,270
    )
    
    
    (10,277
    )
    
    
    (6,946
    )
 Operating Activities and Cash Position




---



##### 



FINANCIAL REVIEW AND ANALYSIS
 Investing Activities
  Financing Activities
  Off-balance Sheet Arrangements and Contractual Obligations
  
 MoreLess than
    
    1-3
    
    3-5
    
    thanDollars in thousands
    
    Total
    
    1 year
    
    years
    
    years
    
    5 yearsContractual Obligations:Line of credit(a)
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Operating leases
    
    
    427
    
    
    
    173
    
    
    
    254
    
    
    
    
    
    
    
    Postretirement benefit obligation
    
    
    5,447
    
    
    
    201
    
    
    
    464
    
    
    
    548
    
    
    
    4,234Unconditional purchase obligations
    
    
    38,318
    
    
    
    38,318
    
    
    
    
    
    
    
    
    
    
    
    Uncertain tax positions(b)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    44,192
    
    
    $
    38,692
    
    
    $
    718
    
    
    $
    548
    
    
    $
    4,234
 
 (a)
    
    $8.0 million line bears interest at 5.00% as of January 31, 2008,
and expires July 2008. The line of credit is reduced by outstanding
letters of credit totaling $1.2 million.(b)
    
    The total liability for uncertain tax positions under FIN 48 at
January 31, 2008, was $2.2 million. The company is not able to
reasonably estimate the timing of future payments relating to
non-current tax benefits.




---



##### 



Capital Requirements
  Critical Accounting Policies and New Accounting Standards
 Critical Accounting Policies
  Inventories




---



##### 



FINANCIAL REVIEW AND ANALYSIS
 
 Warranty
  Allowance for Doubtful Accounts
  Revenue Recognition
  Self-insurance Reserves
  Goodwill and Long-lived Assets
  Uncertain Tax Positions




---



##### 



New Accounting Standards
 Fair Value
Measurement.
 The Fair Value Option for Financial Assets and
Financial Liabilities.
 Business Combinations.
 Noncontrolling Interests in Consolidated Financial
Statements.




---



##### 



MONTHLY CLOSING STOCK PRICE AND VOLUME
 
 QUARTERLY INFORMATION (Unaudited)
 Net Income
    
    
    Common Stock
    
    
    CashDollars in thousands
    
    Net
    
    
    Gross
    
    
    Operating
    
    
    Pretax
    
    
    Net
    
    
    Per Share(a)
    
    
    Market Price
    
    
    Dividendsexcept per-share data
    
    Sales
    
    
    Profit
    
    
    Income
    
    
    Income
    
    
    Income
    
    
    Basic
    
    
    Diluted
    
    
    High
    
    
    Low
    
    
    Per ShareFISCAL 2008First Quarter
    
    $
    58,103
    
    
    $
    17,374
    
    
    $
    12,838
    
    
    $
    13,025
    
    
    $
    8,540
    
    
    $
    0.47
    
    
    $
    0.47
    
    
    $
    30.84
    
    
    $
    26.20
    
    
    $
    0.11Second Quarter
    
    
    55,653
    
    
    
    13,407
    
    
    
    8,543
    
    
    
    8,857
    
    
    
    5,843
    
    
    
    0.32
    
    
    
    0.32
    
    
    
    39.36
    
    
    
    28.39
    
    
    
    0.11Third Quarter
    
    
    61,842
    
    
    
    15,299
    
    
    
    10,940
    
    
    
    11,254
    
    
    
    7,398
    
    
    
    0.41
    
    
    
    0.41
    
    
    
    45.85
    
    
    
    33.42
    
    
    
    0.11Fourth Quarter
    
    
    58,359
    
    
    
    13,068
    
    
    
    8,824
    
    
    
    9,088
    
    
    
    6,021
    
    
    
    0.33
    
    
    
    0.33
    
    
    
    42.75
    
    
    
    27.57
    
    
    
    0.11Total Year
    
    $
    233,957
    
    
    $
    59,148
    
    
    $
    41,145
    
    
    $
    42,224
    
    
    $
    27,802
    
    
    $
    1.54
    
    
    $
    1.53
    
    
    $
    45.85
    
    
    $
    26.20
    
    
    $
    0.44FISCAL 2007First Quarter
    
    $
    58,465
    
    
    $
    15,891
    
    
    $
    11,477
    
    
    $
    11,615
    
    
    $
    7,502
    
    
    $
    0.41
    
    
    $
    0.41
    
    
    $
    42.16
    
    
    $
    31.22
    
    
    $
    0.09Second Quarter
    
    
    50,381
    
    
    
    12,183
    
    
    
    7,872
    
    
    
    7,937
    
    
    
    5,127
    
    
    
    0.28
    
    
    
    0.28
    
    
    
    42.70
    
    
    
    25.89
    
    
    
    0.09Third Quarter
    
    
    57,435
    
    
    
    14,480
    
    
    
    10,540
    
    
    
    10,713
    
    
    
    6,968
    
    
    
    0.39
    
    
    
    0.38
    
    
    
    32.64
    
    
    
    25.89
    
    
    
    0.09Fourth Quarter
    
    
    51,248
    
    
    
    12,328
    
    
    
    8,413
    
    
    
    8,570
    
    
    
    5,844
    
    
    
    0.32
    
    
    
    0.32
    
    
    
    35.35
    
    
    
    25.46
    
    
    
    0.09Total Year
    
    $
    217,529
    
    
    $
    54,882
    
    
    $
    38,302
    
    
    $
    38,835
    
    
    $
    25,441
    
    
    $
    1.41
    
    
    $
    1.39
    
    
    $
    42.70
    
    
    $
    25.46
    
    
    $
    0.36FISCAL 2006First Quarter
    
    $
    50,704
    
    
    $
    15,161
    
    
    $
    11,136
    
    
    $
    11,098
    
    
    $
    7,157
    
    
    $
    0.40
    
    
    $
    0.39
    
    
    $
    22.28
    
    
    $
    16.54
    
    
    $
    0.07Second Quarter
    
    
    45,304
    
    
    
    10,882
    
    
    
    7,299
    
    
    
    7,391
    
    
    
    4,774
    
    
    
    0.26
    
    
    
    0.26
    
    
    
    27.78
    
    
    
    18.68
    
    
    
    0.07Third Quarter
    
    
    54,135
    
    
    
    14,213
    
    
    
    10,568
    
    
    
    10,635
    
    
    
    6,869
    
    
    
    0.38
    
    
    
    0.37
    
    
    
    31.99
    
    
    
    21.75
    
    
    
    0.07Fourth Quarter
    
    
    54,385
    
    
    
    12,975
    
    
    
    8,281
    
    
    
    8,370
    
    
    
    5,462
    
    
    
    0.30
    
    
    
    0.30
    
    
    
    33.15
    
    
    
    26.75
    
    
    
    0.07Total Year
    
    $
    204,528
    
    
    $
    53,231
    
    
    $
    37,284
    
    
    $
    37,494
    
    
    $
    24,262
    
    
    $
    1.34
    
    
    $
    1.32
    
    
    $
    33.15
    
    
    $
    16.54
    
    
    $
    0.28
 
 (a)
    
    Net income per share is computed discretely by quarter and may not add to the full year.




---



##### 



MANAGEMENTS REPORT ON INTERNAL CONTROL  OVER FINANCIAL REPORTING
   Internal Control Integrated Framework,
  -s- Ronald M. Moquist
    
    -s- Thomas IacarellaRonald M. Moquist
    
    Thomas IacarellaPresident & Chief Executive Officer
    
    Vice President & Chief Financial Officer




---



##### 



CONSOLIDATED BALANCE SHEETS
 As of January 31Dollars in thousands, except share data
    
    2008
    
    2007
    
    2006ASSETSCurrent assetsCash and cash equivalents
    
    $
    21,272
    
    
    $
    6,783
    
    
    $
    9,409Short-term investments
    
    
    1,500
    
    
    
    4,000
    
    
    
    2,000Accounts receivable, net
    
    
    36,538
    
    
    
    31,336
    
    
    
    29,290Inventories, net
    
    
    36,529
    
    
    
    28,071
    
    
    
    27,819Deferred income taxes
    
    
    2,075
    
    
    
    1,761
    
    
    
    1,746Other current assets
    
    
    2,955
    
    
    
    1,268
    
    
    
    1,081Total current assets
    
    
    100,869
    
    
    
    73,219
    
    
    
    71,345Property, plant and equipment, net
    
    
    35,743
    
    
    
    36,264
    
    
    
    25,602Goodwill
    
    
    6,902
    
    
    
    6,604
    
    
    
    6,401Other assets, net
    
    
    4,347
    
    
    
    3,677
    
    
    
    2,809Total assets
    
    $
    147,861
    
    
    $
    119,764
    
    
    $
    106,157LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilitiesAccounts payable
    
    $
    8,374
    
    
    $
    6,093
    
    
    $
    8,179Accrued liabilities
    
    
    12,804
    
    
    
    9,579
    
    
    
    11,154Customer advances
    
    
    930
    
    
    
    792
    
    
    
    717Total current liabilities
    
    
    22,108
    
    
    
    16,464
    
    
    
    20,050Other liabilities
    
    
    7,478
    
    
    
    5,032
    
    
    
    1,718Commitments and contingenciesShareholders equity
    
    
    118,275
    
    
    
    98,268
    
    
    
    84,389Common shares, par value $1.00 per shareAuthorized  100,000,000Outstanding  2008: 18,120,513; 2007: 18,039,223; 2006: 18,072,369Total liabilities and shareholders equity
    
    $
    147,861
    
    
    $
    119,764
    
    
    $
    106,157
 The accompanying notes are an integral part of the consolidated financial statements.




---



##### 



CONSOLIDATED STATEMENTS OF INCOME
 For the years ended January 31Dollars in thousands, except per-share data
    
    2008
    
    2007
    
    2006Net sales
    
    $
    233,957
    
    
    $
    217,529
    
    
    $
    204,528Cost of goods sold
    
    
    174,809
    
    
    
    162,647
    
    
    
    151,297Gross profit
    
    
    59,148
    
    
    
    54,882
    
    
    
    53,231Selling, general and administrative expenses
    
    
    18,003
    
    
    
    16,580
    
    
    
    15,947Operating income
    
    
    41,145
    
    
    
    38,302
    
    
    
    37,284Interest income and other, net
    
    
    (1,079
    )
    
    
    (533
    )
    
    
    (210
    )Income before income taxes
    
    
    42,224
    
    
    
    38,835
    
    
    
    37,494Income taxes
    
    
    14,422
    
    
    
    13,394
    
    
    
    13,232Net income
    
    $
    27,802
    
    
    $
    25,441
    
    
    $
    24,262Net income per common share: Basic
    
    $
    1.54
    
    
    $
    1.41
    
    
    $
    1.34 Diluted
    
    $
    1.53
    
    
    $
    1.39
    
    
    $
    1.32
 The accompanying notes are an integral part of the consolidated financial statements.




---



##### 



CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY AND COMPREHENSIVE INCOME
 Accumulatedother$1 Par
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    comprehensivecommon
    
    
    Paid-in
    
    
    Treasury stock
    
    
    Retained
    
    
    incomeDollars in thousands, except per-share data
    
    stock
    
    
    capital
    
    
    Shares
    
    
    Cost
    
    
    earnings
    
    
    (loss)
    
    
    TotalBalance January 31, 2005
    
    $
    32,053
    
    
    $
    765
    
    
    
    (14,053,386
    )
    
    $
    (41,700
    )
    
    $
    74,964
    
    
    $
    
    
    
    $
    66,082Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    24,262
    
    
    
    
    
    
    
    24,262Foreign currency translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13
    
    
    
    13Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    24,275Cash dividends ($.28 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,056
    )
    
    
    
    
    
    
    (5,056
    )Purchase of stock
    
    
    
    
    
    
    
    
    
    
    (67,800
    )
    
    
    (1,689
    )
    
    
    
    
    
    
    
    
    
    
    (1,689
    )Stock surrendered upon exercise
of stock options
    
    
    (27
    )
    
    
    (689
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (716
    )Employees stock options exercised
    
    
    168
    
    
    
    410
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    578Share-based compensation
    
    
    
    
    
    
    485
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    485Tax benefit from exercise of
stock options
    
    
    
    
    
    
    430
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    430Balance January 31, 2006
    
    
    32,194
    
    
    
    1,401
    
    
    
    (14,121,186
    )
    
    
    (43,389
    )
    
    
    94,170
    
    
    
    13
    
    
    
    84,389Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25,441
    
    
    
    
    
    
    
    25,441Foreign currency translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (21
    )
    
    
    (21
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25,420Adoption of SFAS No. 158,
net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,885
    )
    
    
    (1,885
    )Dividends ($.36 per share)
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    (6,508
    )
    
    
    
    
    
    
    (6,507
    )Purchase of stock
    
    
    
    
    
    
    
    
    
    
    (146,247
    )
    
    
    (4,201
    )
    
    
    
    
    
    
    
    
    
    
    (4,201
    )Stock surrendered upon exercise
of stock options
    
    
    (28
    )
    
    
    (854
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (882
    )Employees stock options exercised
    
    
    141
    
    
    
    718
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    859Share-based compensation
    
    
    
    
    
    
    605
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    605Tax benefit from exercise of
stock options
    
    
    
    
    
    
    470
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    470Balance January 31, 2007
    
    
    32,307
    
    
    
    2,341
    
    
    
    (14,267,433
    )
    
    
    (47,590
    )
    
    
    113,103
    
    
    
    (1,893
    )
    
    
    98,268Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27,802
    
    
    
    
    
    
    
    27,802Postretirement benefits, net of
$84 income tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    156
    
    
    
    156Foreign currency translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    131
    
    
    
    131Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    28,089Adoption of FIN 48
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (716
    )
    
    
    
    
    
    
    (716
    )Dividends ($.44 per share)
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    (7,970
    )
    
    
    
    
    
    
    (7,966
    )Purchase of stock
    
    
    
    
    
    
    
    
    
    
    (20,150
    )
    
    
    (592
    )
    
    
    
    
    
    
    
    
    
    
    (592
    )Stock surrendered upon exercise
of stock options
    
    
    (47
    )
    
    
    (1,462
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,509
    )Employees stock options exercised
    
    
    148
    
    
    
    1,170
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,318Share-based compensation
    
    
    
    
    
    
    904
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    904Tax benefit from exercise of
stock options
    
    
    
    
    
    
    479
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    479Balance January 31, 2008
    
    $
    32,408
    
    
    $
    3,436
    
    
    
    (14,287,583
    )
    
    $
    (48,182
    )
    
    $
    132,219
    
    
    $
    (1,606
    )
    
    $
    118,275
 The accompanying notes are an integral part of the consolidated financial statements.




---



##### 



CONSOLIDATED STATEMENTS OF CASH FLOWS
 For the years ended January 31Dollars in thousands
    
    2008
    
    2007
    
    2006Cash flows from operating activities:Net income
    
    $
    27,802
    
    
    $
    25,441
    
    
    $
    24,262Adjustments to reconcile net income to net cash provided by
operating activities:Depreciation
    
    
    6,944
    
    
    
    5,445
    
    
    
    4,684Amortization of intangible assets
    
    
    400
    
    
    
    440
    
    
    
    467Provision for losses on accounts receivable, net of recoveries.
    
    
    91
    
    
    
    40
    
    
    
    78Deferred income taxes
    
    
    (779
    )
    
    
    (293
    )
    
    
    (809
    )Share-based compensation expense
    
    
    904
    
    
    
    605
    
    
    
    485Change in operating assets and liabilities, net of effects
from acquisition
and disposition of businesses and assets
    
    
    (8,187
    )
    
    
    (5,380
    )
    
    
    (8,086
    )Other operating activities, net
    
    
    (24
    )
    
    
    15
    
    
    
    108Net cash provided by operating activities
    
    
    27,151
    
    
    
    26,313
    
    
    
    21,189Cash flows from investing activities:Capital expenditures
    
    
    (6,635
    )
    
    
    (16,522
    )
    
    
    (10,358
    )Purchase of short-term investments
    
    
    (3,100
    )
    
    
    (6,000
    )
    
    
    (4,500
    )Sale of short-term investments
    
    
    5,600
    
    
    
    4,000
    
    
    
    5,500Acquisition of business
    
    
    (269
    )
    
    
    (203
    )
    
    
    (2,828
    )Sale of unconsolidated affiliate
    
    
    
    
    
    
    
    
    
    
    650Other investing activities, net
    
    
    (29
    )
    
    
    61
    
    
    
    101Net cash used in investing activities
    
    
    (4,433
    )
    
    
    (18,664
    )
    
    
    (11,435
    )Cash flows from financing activities:Proceeds from borrowing under line of credit
    
    
    
    
    
    
    
    
    
    
    4,500Repayment of borrowing under line of credit
    
    
    
    
    
    
    
    
    
    
    (4,500
    )Dividends paid
    
    
    (7,966
    )
    
    
    (6,507
    )
    
    
    (5,056
    )Purchases of treasury stock
    
    
    (592
    )
    
    
    (4,201
    )
    
    
    (1,689
    )Excess tax benefit on stock option exercises
    
    
    479
    
    
    
    470
    
    
    
    Other financing activities, net
    
    
    (191
    )
    
    
    (39
    )
    
    
    (201
    )Net cash used in financing activities
    
    
    (8,270
    )
    
    
    (10,277
    )
    
    
    (6,946
    )Effect of exchange rate changes on cash
    
    
    41
    
    
    
    2
    
    
    
    (18
    )Net increase (decrease) in cash and cash equivalents
    
    
    14,489
    
    
    
    (2,626
    )
    
    
    2,790Cash and cash equivalents at beginning of year
    
    
    6,783
    
    
    
    9,409
    
    
    
    6,619Cash and cash equivalents at end of year
    
    $
    21,272
    
    
    $
    6,783
    
    
    $
    9,409
 The accompanying notes are an integral part of the consolidated financial statements.




---



##### 



NOTES TO FINANCIAL STATEMENTS
 Note 1. Summary of Significant Accounting Policies
 BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION
  USE OF ESTIMATES
  FOREIGN CURRENCY
  CASH AND CASH EQUIVALENTS
  SHORT-TERM INVESTMENTS
  ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS
  INVENTORY VALUATION
  PROPERTY, PLANT AND EQUIPMENT
  Building and improvements
    
    15 - 39 yearsManufacturing equipment by segmentFlow Controls
    
    3 - 5 yearsEngineered Films
    
    5-12 yearsElectronic Systems
    
    3 - 5 yearsAerostar
    
    3 - 5 yearsFurniture, fixtures, office equipment and other
    
    3 - 7 years
  INTANGIBLE ASSETS
  GOODWILL
  LONG-LIVED ASSETS




---



##### 



INSURANCE OBLIGATIONS
  CONTINGENCIES
  REVENUE RECOGNITION
  WARRANTIES
  RESEARCH AND DEVELOPMENT
  SHARE-BASED COMPENSATION
 Accounting for
Stock-Based Compensation. Share-Based Payment.
 INCOME TAXES
  NEW ACCOUNTING STANDARDS
 Fair Value
Measurement.
 The Fair Value Option for Financial Assets and
Financial Liabilities.
 Business Combinations.




---



##### 



NOTES TO FINANCIAL STATEMENTS
 Noncontrolling Interests in Consolidated
Financial Statements.
 Note 2. Selected Balance Sheet Information
  As of January 31Dollars in thousands
    
    2008
    
    2007
    
    2006Accounts receivable, net:Trade accounts
    
    $
    36,831
    
    
    $
    31,594
    
    
    $
    29,547Allowance for doubtful accounts
    
    
    (293
    )
    
    
    (258
    )
    
    
    (257
    )$
    36,538
    
    
    $
    31,336
    
    
    $
    29,290Inventories, net:Finished goods
    
    $
    4,975
    
    
    $
    3,750
    
    
    $
    3,504In process
    
    
    3,631
    
    
    
    2,612
    
    
    
    3,652Materials
    
    
    27,923
    
    
    
    21,709
    
    
    
    20,663$
    36,529
    
    
    $
    28,071
    
    
    $
    27,819Other current assets:Insurance policy benefit
    
    $
    2,549
    
    
    $
    651
    
    
    $
    747Prepaid expenses and other
    
    
    406
    
    
    
    617
    
    
    
    334$
    2,955
    
    
    $
    1,268
    
    
    $
    1,081Property, plant and equipment, net:Land
    
    $
    1,227
    
    
    $
    1,227
    
    
    $
    1,084Buildings and improvements
    
    
    21,523
    
    
    
    21,494
    
    
    
    16,662Machinery and equipment
    
    
    57,563
    
    
    
    52,552
    
    
    
    43,256Accumulated depreciation
    
    
    (44,570
    )
    
    
    (39,009
    )
    
    
    (35,400
    )$
    35,743
    
    
    $
    36,264
    
    
    $
    25,602Other assets, net:Amortizable assets:Purchased technology
    
    $
    2,300
    
    
    $
    3,380
    
    
    $
    3,380Other intangibles
    
    
    1,172
    
    
    
    1,305
    
    
    
    1,265Accumulated amortization
    
    
    (1,740
    )
    
    
    (2,729
    )
    
    
    (2,300
    )1,732
    
    
    
    1,956
    
    
    
    2,345Deferred income taxes
    
    
    2,540
    
    
    
    1,607
    
    
    
    318Other, net
    
    
    75
    
    
    
    114
    
    
    
    146$
    4,347
    
    
    $
    3,677
    
    
    $
    2,809Accrued liabilities:Salaries and benefits
    
    $
    2,109
    
    
    $
    1,722
    
    
    $
    2,167Vacation
    
    
    2,415
    
    
    
    2,212
    
    
    
    2,119401(k) contributions
    
    
    1,184
    
    
    
    1,109
    
    
    
    1,049Insurance obligations
    
    
    4,010
    
    
    
    1,743
    
    
    
    1,632Income taxes
    
    
    
    
    
    
    265
    
    
    
    808Profit sharing
    
    
    490
    
    
    
    553
    
    
    
    1,168Warranty
    
    
    684
    
    
    
    397
    
    
    
    569Other
    
    
    1,912
    
    
    
    1,578
    
    
    
    1,642$
    12,804
    
    
    $
    9,579
    
    
    $
    11,154Other liabilities:Long-term debt
    
    $
    
    
    
    $
    
    
    
    $
    9Postretirement benefits
    
    
    5,246
    
    
    
    5,032
    
    
    
    1,709Uncertain tax positions
    
    
    2,232
    
    
    
    
    
    
    
    $
    7,478
    
    
    $
    5,032
    
    
    $
    1,718
 Note 3. Supplemental Cash Flow Information
 For the years ended January 31Dollars in thousands
    
    2008
    
    2007
    
    2006Changes in operating assets and
liabilities, net of effects from
acquisition and disposition of
businesses and assets:Accounts receivable
    
    $
    (5,216
    )
    
    $
    (2,097
    )
    
    $
    (3,821
    )Inventories
    
    
    (8,403
    )
    
    
    (262
    )
    
    
    (4,356
    )Prepaid expenses and other assets
    
    
    218
    
    
    
    (284
    )
    
    
    (103
    )Accounts payable
    
    
    2,437
    
    
    
    (1,770
    )
    
    
    (2,688
    )Accrued and other liabilities
    
    
    2,648
    
    
    
    (1,045
    )
    
    
    3,021Customer advances
    
    
    129
    
    
    
    78
    
    
    
    (139
    )$
    (8,187
    )
    
    $
    (5,380
    )
    
    $
    (8,086
    )Cash paid during the year for:Income taxes
    
    $
    14,068
    
    
    $
    13,759
    
    
    $
    12,806
 Note 4. Montgomery Industries Acquisition




---



##### 



Note 5. Goodwill and Other Intangibles
 Goodwill
  Flow
    
    Engineered
    
    ElectronicDollars in thousands
    
    Controls
    
    Films
    
    Systems
    
    Aerostar
    
    TotalBalance at January 31, 2005
    
    $
    4,940
    
    
    $
    96
    
    
    $
    433
    
    
    $
    464
    
    
    $
    5,933Goodwill acquired during
the year
    
    
    285
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    285Acquisition earn-outs
    
    
    183
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    183Balance at January 31, 2006
    
    
    5,408
    
    
    
    96
    
    
    
    433
    
    
    
    464
    
    
    
    6,401Acquisition earn-outs
    
    
    203
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    203Balance at January 31, 2007
    
    
    5,611
    
    
    
    96
    
    
    
    433
    
    
    
    464
    
    
    
    6,604Acquisition earn-outs
    
    
    298
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    298Balance at January 31, 2008
    
    $
    5,909
    
    
    $
    96
    
    
    $
    433
    
    
    $
    464
    
    
    $
    6,902
 Intangible Assets
  Note 6. Employee Retirement Benefits
  Accounting for Postretirement Benefits Other Than
Pensions. Employers Accounting for Defined
Pension and Other Postretirement Plans.
  Impact of SFAS No. 158Dollars in thousands
    
    Before
    
    Adjustment
    
    AfterNon-current deferred tax assets
    
    $
    592
    
    
    $
    1,015
    
    
    $
    1,607Total assets
    
    
    118,749
    
    
    
    1,015
    
    
    
    119,764Other liabilities
    
    
    2,132
    
    
    
    2,900
    
    
    
    5,032Accumulated other comprehensive
income (loss)
    
    
    (8
    )
    
    
    (1,885
    )
    
    
    (1,893
    )Total shareholders equity
    
    
    100,153
    
    
    
    (1,885
    )
    
    
    98,268
  For the years ended January 31Dollars in thousands
    
    2008
    
    
    2007
    
    
    2006Benefit obligation at beginning of year
    
    $
    5,213
    
    
    $
    4,928
    
    
    $
    2,722Service cost
    
    
    90
    
    
    
    84
    
    
    
    80Interest cost
    
    
    307
    
    
    
    278
    
    
    
    259Actuarial (gain) loss
    
    
    (2
    )
    
    
    89
    
    
    
    2,014Total recognized in net and other
comprehensive income
    
    
    395Retiree benefits paid
    
    
    (161
    )
    
    
    (166
    )
    
    
    (147
    )Benefit obligation at end of year
    
    
    5,447
    
    
    
    5,213
    
    
    
    4,928Less: unrecognized actuarial losses
    
    
    
    
    
    
    
    
    
    
    (3,045
    )Ending liability balance
    
    $
    5,447
    
    
    $
    5,213
    
    
    $
    1,883
  For the years ended January 31Dollars in thousands
    
    2008
    
    
    2007
    
    
    2006Beginning liability balance
    
    $
    5,213
    
    
    $
    1,883
    
    
    $
    1,447Employer expense
    
    
    635
    
    
    
    596
    
    
    
    583Other comprehensive income
    
    
    (240
    )
    
    
    
    
    
    
    Total recognized in net and other
comprehensive income
    
    
    395Initial effect of adopting SFAS No. 158
    
    
    
    
    
    
    2,900
    
    
    
    Retiree benefits paid
    
    
    (161
    )
    
    
    (166
    )
    
    
    (147
    )Ending liability balance
    
    
    5,447
    
    
    
    5,213
    
    
    
    1,883Current portion
    
    
    (201
    )
    
    
    (181
    )
    
    
    (174
    )Long-term portion
    
    $
    5,246
    
    
    $
    5,032
    
    
    $
    1,709Assumptions used:Discount rate
    
    
    6.75
    %
    
    
    6.00
    %
    
    
    5.75
    %Wage inflation rate
    
    
    4.00
    %
    
    
    4.00
    %
    
    
    4.00
    %
   Note 7. Warranties
  As of January 31Dollars in thousands
    
    2008
    
    2007
    
    2006Beginning balance
    
    $
    397
    
    
    $
    569
    
    
    $
    452Accrual for warranties
    
    
    1,390
    
    
    
    1,317
    
    
    
    958Settlements made (in cash or in kind)
    
    
    (1,103
    )
    
    
    (1,489
    )
    
    
    (841
    )Ending balance
    
    $
    684
    
    
    $
    397
    
    
    $
    569




---



##### 



NOTES TO FINANCIAL STATEMENTS
 Note 8. Income Taxes
  For the years endedJanuary 31Dollars in thousands
    
    2008
    
    2007
    
    2006Tax at U.S. federal statutory rate
    
    
    35.0
    %
    
    
    35.0
    %
    
    
    35.0
    %State and local income taxes,
net of U.S. federal benefit
    
    
    1.5
    
    
    
    1.1
    
    
    
    1.1Tax benefit on qualified production activities
    
    
    (2.1
    )
    
    
    (1.0
    )
    
    
    (1.0
    )Tax credit for research activities
    
    
    (0.7
    )
    
    
    (0.5
    )
    
    
    (0.1
    )Other, net
    
    
    0.5
    
    
    
    (0.1
    )
    
    
    0.334.2
    %
    
    
    34.5
    %
    
    
    35.3
    %
  For the years ended January 31Dollars in thousands
    
    2008
    
    2007
    
    2006Income taxes:Currently payable
    
    $
    15,201
    
    
    $
    13,687
    
    
    $
    14,041Deferred
    
    
    (779
    )
    
    
    (293
    )
    
    
    (809
    )$
    14,422
    
    
    $
    13,394
    
    
    $
    13,232
 Deferred Tax Assets
  As of January 31Dollars in thousands
    
    2008
    
    2007
    
    2006Current deferred tax assets:Accounts receivable
    
    $
    105
    
    
    $
    91
    
    
    $
    88Inventories
    
    
    215
    
    
    
    212
    
    
    
    220Accrued vacation
    
    
    781
    
    
    
    711
    
    
    
    680Insurance obligations
    
    
    456
    
    
    
    357
    
    
    
    282Other accrued liabilities
    
    
    518
    
    
    
    390
    
    
    
    4762,075
    
    
    
    1,761
    
    
    
    1,746Non-current deferred tax assets (liabilities):Postretirement and other employee benefits
    
    
    1,836
    
    
    
    1,758
    
    
    
    598Depreciation and amortization
    
    
    (478
    )
    
    
    (405
    )
    
    
    (439
    )Net operating loss carryforward(a)
    
    
    123
    
    
    
    82
    
    
    
    Uncertain tax positions
    
    
    741
    
    
    
    
    
    
    
    Other
    
    
    318
    
    
    
    172
    
    
    
    1592,540
    
    
    
    1,607
    
    
    
    318Net deferred tax asset
    
    $
    4,615
    
    
    $
    3,368
    
    
    $
    2,064
 
 (a)
    
    The companys Canadian operation incurred a $317,000 net operating loss that if unused
will begin to expire in 2017. Uncertain Tax Positions
 Accounting for Uncertainty in Income Taxes
 Dollars in thousandsBalance as of February 1, 2007
    
    $
    1,328Increases related to current year tax positions
    
    
    465Balance as of January 31, 2008
    
    $
    1,793
     Note 9. Financing Arrangements




---



##### 



Note 10. Share-based Compensation
  2000 Stock Option and Compensation Plan
   For the years ended January 312008
    
    2007
    
    2006Risk-free interest rate
    
    
    3.07
    %
    
    
    4.45
    %
    
    
    4.36
    %Expected dividend yield
    
    
    1.28
    %
    
    
    1.29
    %
    
    
    0.90
    %Expected volatility factor
    
    
    40.62
    %
    
    
    38.97
    %
    
    
    39.25
    %Expected option term (in years)
    
    
    4.25
    
    
    
    4.25
    
    
    
    4.25Weighted average grant date fair value
    
    $
    11.45
    
    
    $
    9.51
    
    
    $
    10.90
  WeightedaverageWeighted
    
    Aggregate
    
    remainingaverage
    
    intrinsic
    
    contractualNumber
    
    exercise
    
    value
    
    termof options
    
    price
    
    (in 000s)
    
    (years)Outstanding at
beginning of year
    
    
    447,050
    
    
    $
    18.89Granted
    
    
    75,400
    
    
    
    34.50Exercised
    
    
    (147,769
    )
    
    
    8.91Forfeited
    
    
    (1,650
    )
    
    
    26.94Outstanding at
end of year
    
    
    373,031
    
    
    $
    25.96
    
    
    $
    1,926
    
    
    
    2.80Options exercisable
at end of year
    
    
    182,250
    
    
    $
    21.16
    
    
    $
    1,652
    
    
    
    1.78
  Deferred Stock Compensation Plan for Directors
    WeightedNumber
    
    averageof units
    
    priceOutstanding at beginning of year
    
    
    4,828
    
    
    $
    28.43Granted
    
    
    3,846
    
    
    
    36.40Deferred retainers
    
    
    1,099
    
    
    
    36.40Dividends
    
    
    105
    
    
    
    35.79Converted into common shares
    
    
    
    
    
    
    Outstanding at end of year
    
    
    9,878
    
    
    $
    30.02
 Note 11. Net Income Per Share




---



##### 



NOTES TO FINANCIAL STATEMENTS
  For the years ended January 312008
    
    2007
    
    2006Numerator:Net income (in thousands)
    
    $
    27,802
    
    
    $
    25,441
    
    
    $
    24,262Denominator:Weighted average common
shares outstanding
    
    
    18,099,600
    
    
    
    18,082,606
    
    
    
    18,055,439Weighted average stock
units outstanding
    
    
    8,580
    
    
    
    3,602
    
    
    
    Denominator for
basic calculation
    
    
    18,108,180
    
    
    
    18,086,208
    
    
    
    18,055,439Weighted average common
shares outstanding
    
    
    18,099,600
    
    
    
    18,082,606
    
    
    
    18,055,439Weighted average stock
units outstanding
    
    
    8,580
    
    
    
    3,602Dilutive impact of stock options
    
    
    95,883
    
    
    
    186,705
    
    
    
    259,104Denominator for
diluted calculation
    
    
    18,204,063
    
    
    
    18,272,913
    
    
    
    18,314,543Net income per share  basic
    
    $
    1.54
    
    
    $
    1.41
    
    
    $
    1.34Net income per share  diluted
    
    $
    1.53
    
    
    $
    1.39
    
    
    $
    1.32
 Note 12. Business Segments and Major Customer Information
   Disclosures about Segments of an Enterprise and Related Information.
  For the years ended January 31Dollars in thousands
    
    2008
    
    2007
    
    2006ENGINEERED FILMS DIVISIONSales
    
    $
    84,783
    
    
    $
    91,082
    
    
    $
    82,794Operating income
    
    
    17,655
    
    
    
    23,440
    
    
    
    19,907Assets
    
    
    43,688
    
    
    
    41,988
    
    
    
    33,512Capital expenditures
    
    
    4,012
    
    
    
    13,266
    
    
    
    7,359Depreciation & amortization
    
    
    4,046
    
    
    
    2,887
    
    
    
    2,436FLOW CONTROLS DIVISIONSales
    
    $
    64,291
    
    
    $
    45,515
    
    
    $
    47,506Operating income
    
    
    19,102
    
    
    
    10,111
    
    
    
    13,586Assets
    
    
    36,922
    
    
    
    27,629
    
    
    
    30,047Capital expenditures
    
    
    1,008
    
    
    
    577
    
    
    
    938Depreciation & amortization
    
    
    1,125
    
    
    
    1,142
    
    
    
    1,085ELECTRONIC SYSTEMS DIVISIONSales
    
    $
    67,609
    
    
    $
    66,278
    
    
    $
    56,219Operating income
    
    
    10,349
    
    
    
    10,850
    
    
    
    8,916Assets
    
    
    25,865
    
    
    
    25,175
    
    
    
    20,191Capital expenditures
    
    
    1,077
    
    
    
    1,357
    
    
    
    1,612Depreciation & amortization
    
    
    1,237
    
    
    
    1,086
    
    
    
    871AEROSTARSales
    
    $
    17,274
    
    
    $
    14,654
    
    
    $
    18,009Operating income
    
    
    1,506
    
    
    
    707
    
    
    
    2,133Assets
    
    
    9,857
    
    
    
    8,161
    
    
    
    6,837Capital expenditures
    
    
    156
    
    
    
    812
    
    
    
    179Depreciation & amortization
    
    
    499
    
    
    
    375
    
    
    
    359REPORTABLE SEGMENTS TOTALSales
    
    $
    233,957
    
    
    $
    217,529
    
    
    $
    204,528Operating income
    
    
    48,612
    
    
    
    45,108
    
    
    
    44,542Assets
    
    
    116,332
    
    
    
    102,953
    
    
    
    90,587Capital expenditures
    
    
    6,253
    
    
    
    16,012
    
    
    
    10,088Depreciation & amortization
    
    
    6,907
    
    
    
    5,490
    
    
    
    4,751CORPORATE & OTHER(a)Operating (loss) from
administrative expenses
    
    $
    (7,467
    )
    
    $
    (6,806
    )
    
    $
    (7,258
    )Assets
    
    
    31,529
    
    
    
    16,811
    
    
    
    15,570Capital expenditures
    
    
    382
    
    
    
    510
    
    
    
    270Depreciation & amortization
    
    
    437
    
    
    
    395
    
    
    
    400TOTAL COMPANYSales
    
    $
    233,957
    
    
    $
    217,529
    
    
    $
    204,528Operating income
    
    
    41,145
    
    
    
    38,302
    
    
    
    37,284Assets
    
    
    147,861
    
    
    
    119,764
    
    
    
    106,157Capital expenditures
    
    
    6,635
    
    
    
    16,522
    
    
    
    10,358Depreciation & amortization
    
    
    7,344
    
    
    
    5,885
    
    
    
    5,151
 
 (a)
    
    Assets are principally cash, investments, deferred taxes and notes receivable.   For the years ended January 31Dollars in thousands
    
    2008
    
    2007
    
    2006Flow Controls
    
    $
    10,100
    
    
    $
    7,100
    
    
    $
    6,700Engineered Films
    
    
    1,800
    
    
    
    2,000
    
    
    
    1,300Electronic Systems
    
    
    6,900
    
    
    
    8,700
    
    
    
    8,000Aerostar
    
    
    1,300
    
    
    
    900
    
    
    
    800Total foreign sales
    
    $
    20,100
    
    
    $
    18,700
    
    
    $
    16,800
 Note 13. Quarterly Information (Unaudited)




---



##### 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 To the Board of Directors and Shareholders of Raven Industries, Inc.:
 Internal Control Integrated Framework
 Employers Accounting for Defined Benefit Pension and Other Postretirement Plans. Accounting for Uncertainty in Income Taxes.




---



##### 



INVESTOR INFORMATION
 Annual Meeting
 
 Dividend Reinvestment Plan
  Dividend Policy
  Raven Web Site
  Stock Quotations
  Independent Registered Public Accounting Firm
 
 Stock Transfer Agent & Registrar
 
 Form 10-K
  Affirmative Action Plan
  Direct inquires to:
 
 
 Delivering Long-term Shareholder Value
 If an investor purchased $100 of
Raven stock on January 31, 2003,
held it for the next five years
and reinvested the dividends,
its value would have increased
to $419.77. This was a
significant premium over the
same investment in the S&P 1500
Industrial Index, which would
have been worth $227.10, or in
the Russell 2000 Index, which
would have grown to $203.82.
 FORWARD-LOOKING STATEMENTS