##### 



UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


WASHINGTON, D.C. 20549


FORM 10-K


ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES


EXCHANGE ACT OF 1934


For the fiscal year ended December 31, 2005







GARDNER DENVER, INC.


(Exact name of registrant as specified in its charter)


|                                                                               |  |                                                   
|------------------------------------------------------------------------------ |  | --------------------------------------------------
|Delaware(State or other jurisdiction of
    incorporation or organization)     |  | 76-0419383(I.R.S. Employer
    Identification No.)
|                                                                              
|1800 Gardner Expressway
    Quincy, IL(Address of principal executive offices) |  | 62305(Zip Code)                                   

(217) 222-5400




|                                                                                                    |  |                                                                                                  |  | 
|--------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------ |  | 
|Title of each classCommon Stock of $0.01 par value per share
    Rights to Purchase Preferred Stock |  | Name of each exchange on
    which registeredNew York Stock Exchange
    New York Stock Exchange |  | 

None


[X]


[X]


[X]


S-K 10-K 10-K. [X]


12b-2




|                                |                           |                              
|------------------------------- | ------------------------- | -----------------------------
|Large accelerated filer     [X] | Accelerated filer     [ ] | Non-accelerated filer     [ ]

12b-2 [X]






Documents Incorporated by Reference









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##### 



Table of Contents


|                                                                                     |  |                                                                                                                      |    |      |    | 
|------------------------------------------------------------------------------------ |  | -------------------------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|                                                                                     |  |                                                                                                                      |    | Page
|PART I                                                                               |  |                                                                                                                      |    |     
|Item 1.                                                                              |  | Business                                                                                                             |    |      | 2  | 
|Item 1A.                                                                             |  | Risk Factors                                                                                                         |    |      | 11 | 
|Item 1B.                                                                             |  | Unresolved Staff Comments                                                                                            |    |      | 16 | 
|Item 2.                                                                              |  | Properties                                                                                                           |    |      | 16 | 
|Item 3.                                                                              |  | Legal Proceedings                                                                                                    |    |      | 16 | 
|Item 4.                                                                              |  | Submission of Matters to a Vote of Security
    Holders                                                              |    |      | 16 | 
|PART II                                                                              |  |                                                                                                                      |    |     
|Item 5.                                                                              |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |    |      | 16 | 
|Item 6.                                                                              |  | Selected Financial Data                                                                                              |    |      | 17 | 
|Item 7.                                                                              |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |    |      | 17 | 
|Item 7A.                                                                             |  | Quantitative and Qualitative Disclosures
    about Market Risk                                                       |    |      | 31 | 
|Item 8.                                                                              |  | Financial Statements and Supplementary
    Data                                                                      |    |      | 32 | 
|Item 9.                                                                              |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                             |    |      | 70 | 
|Item 9A.                                                                             |  | Controls and Procedures                                                                                              |    |      | 70 | 
|Item 9B.                                                                             |  | Other Information                                                                                                    |    |      | 71 | 
|PART III                                                                             |  |                                                                                                                      |    |     
|Item 10.                                                                             |  | Directors and Executive Officers of the
    Registrant                                                               |    |      | 71 | 
|Item 11.                                                                             |  | Executive Compensation                                                                                               |    |      | 73 | 
|Item 12.                                                                             |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                   |    |      | 73 | 
|Item 13.                                                                             |  | Certain Relationships and Related
    Transactions                                                                   |    |      | 73 | 
|Item 14.                                                                             |  | Principal Accounting Fees and Services                                                                               |    |      | 73 | 
|PART IV                                                                              |  |                                                                                                                      |    |     
|Item 15.                                                                             |  | Exhibits and Financial Statement
    Schedules                                                                       |    |      | 73 | 
|SIGNATURES                                                                           |  |                                                                                                                      | 76 |     
|INDEX TO EXHIBITS                                                                    |  |                                                                                                                      | 77 |     
|EX-12 (Computation of Ratios of Earnings to
    Fixed Charges)                       |  |                                                                                                                      | 80 |     
|EX-21 (Subsidiaries of the Registrant)                                               |  |                                                                                                                      | 81 |     
|EX-23 (Consent)                                                                      |  |                                                                                                                      | 83 |     
|EX-24 (Power of Attorney)                                                            |  |                                                                                                                      | 84 |     
|EX-31 (Certifications Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002) |  |                                                                                                                      | 85 |     
|EX-32 (Certifications Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002) |  |                                                                                                                      | 87 |     





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PART I





ITEM 1. BUSINESS


Service marks, trademarks and/or tradenames and related
designs or logotypes owned by Gardner Denver, Inc. or its
subsidiaries are shown in italics.




non-U.S.


Executive Overview


Significant accomplishments in 2005






|  |                                                                                                                                                            
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | Grew revenues 64% as a result of acquisitions, improved demand
    for fluid transfer products and compressor and vacuum products
    and price increases. 
| 
| | Improved net income 80% as a result of revenue growth,
    acquisitions and cost containment.                                                              
| 
| | Completed the acquisitions of Thomas and Bottarini SpA
    (Bottarini) and the related financing transactions.                                           
| 
| | Initiated key integration activities to reduce the operating
    costs of Thomas and continued the integration of nash_elmo
    Holdings LLC (Nash Elmo).
| 
| | Generated $115 million in net cash provided by operating
    activities in 2005, compared to $76 million in 2004.                                          
| 
| | Improved return on equity to 13% for the twelve months ending
    December 31, 2005 from 11% for the twelve months ending
    December 31, 2004.           
| 
| | Completed the repatriation of $44 million of net cash from
    the Companys international subsidiaries.                                                   

Challenges


Non-U.S.


2



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|  |                                                                                                                                                                                                                                                                                                                                                                             
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The ability to effectively integrate acquisitions and realize
    anticipated cost savings, synergies and revenue enhancements
    without incurring significant unexpected cash integration costs
    to achieve such benefits.                                                                                                                                            
| 
| | Exposure to economic downturns and market cycles, in particular
    the level of oil and natural gas prices and oil and gas drilling
    and production, which affect demand for the Companys
    petroleum products, and industrial production and manufacturing
    capacity utilization rates, which affect demand for the
    Companys compressor and vacuum products.
| 
| | Risks of large or rapid increases in raw material costs or
    substantial decreases in their availability, and the
    Companys dependence on particular suppliers, particularly
    iron casting and other metal suppliers.                                                                                                                                              
| 
| | Risks associated with robust competition in the Companys
    markets, particularly the pricing of the Companys products.                                                                                                                                                                                                                                                  
| 
| | The Companys ability to continue to identify and complete
    other strategic acquisitions and effectively integrate such
    acquisitions to achieve desired financial benefits.                                                                                                                                                                                          

History


OPI Sutorbilt DuroFlow ®










3



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Gardner Denver






Gardner Denver












4



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Markets and Products




Compressor and Vacuum Products Segment




5



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Gardner Denver, Champion,
Commandair, Thomas Belliss & Morcom Gardner Denver, Electra-Screw, Electra-Saver, Enduro,
RotorChamp, Twistair, Tamrotor Tempest


0-28 Sutorbilt, DuroFlow,
CycloBlower, Drum, Wittig TurboTron. Gardner Denver, Lamson Hoffman Elmo Technology, Rietschle Thomas Rietschle. Gardner
Denver, Rietschle, Drum Wittig. Gardner Denver, Invincible, Rietschle Thomas,
Rietschle Cat Vac Nash Elmo Technology






6



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Welch Oberdorfer




Fluid Transfer Products Segment




Gardner Denver OPI Gardner Denver Gardner Denver


Partek, Liqua-Blaster American Water Blaster


Emco Wheaton Perolo




Customers and Customer Service




7



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Competition








8



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Research and Development










Manufacturing


work-in




Raw Materials




9



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Backlog


10-K.


Patents, Trademarks and Other Intellectual Property




Gardner Denver Aeon, Belliss &
Morcom, Bottarini, Champion, CycloBlower, Drum, DuroFlow, Elmo
Technology, Emco Wheaton, Hoffman, Lamson, Legend, Nash,
Oberdorfer, OPI, Rietschle, Rietschle Thomas, Sutorbilt,
Tamrotor, Thomas, Webster, Welch Wittig. ® Gardner
Denver ®




Employees




Environmental Matters




10



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on-site




Available Information


www.gardnerdenver.com. 10-K; 10-Q; 8-K; 10-K.





ITEM 1A. RISK FACTORS


The Company may not be able to effectively integrate acquired
businesses and fully realize the related anticipated cost
savings, synergies, or revenue enhancements.






11



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|  |                                                                                                                                                                                                                                                                              
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | the Companys ability to effectively eliminate redundant
    administrative overhead and rationalize manufacturing capacity
    is difficult to predict. Accordingly, the actual amount and
    timing of the resulting cost savings are inherently difficult to
    predict.
| 
| | the Company may incur significant cash integration costs in
    achieving cost savings, and any cost savings or other synergies
    from acquisitions may be offset by such integration costs.                                                                               
| 
| | the cost savings and other synergies realized from acquisitions
    may be offset by increases in other expenses, by operating
    losses, or by problems unrelated to any specific acquisition.                                                                             

The Company has exposure to economic downturns and operates
in cyclical markets.






Large or rapid increases in the costs of raw materials or
substantial decreases in their availability and the
Companys dependence on particular suppliers of raw
materials could materially and adversely affect the
Companys operating results.




The Company faces robust competition in the markets it
serves, which could materially and adversely affect its
operating results.




12



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Economic, political and other risks associated with
international sales and operations could adversely affect the
Companys business.


Non-U.S.




|  |                                                                                                                                                             
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| | nationalization of private enterprises;                                                                                                                     
| 
| | political or economic instability in certain countries;                                                                                                     
| 
| | differences in foreign laws, including increased difficulties in
    protecting intellectual property and uncertainty in enforcement
    of contract rights;
| 
| | changes in the legal and regulatory policies of foreign
    jurisdictions;                                                                                  
| 
| | credit risks;                                                                                                                                               
| 
| | currency fluctuations;                                                                                                                                      
| 
| | exchange controls;                                                                                                                                          
| 
| | changes in tariff restrictions;                                                                                                                             
| 
| | royalty and tax increases;                                                                                                                                  
| 
| | export and import restrictions and restrictive regulations of
    foreign governments;                                                                      
| 
| | potential problems obtaining supply of raw materials;                                                                                                       
| 
| | shipping products during times of crisis or war; and                                                                                                        
| 
| | other factors inherent in foreign operations.                                                                                                               

The Companys substantial indebtedness could adversely
affect its financial health.






|  |                                                                                                                                                                                                                                                                                                             
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | the Company may have limited ability to borrow additional
    amounts for working capital, capital expenditures, acquisitions,
    debt service requirements, execution of its growth strategy, or
    other purposes;                                                                                      
| 
| | a substantial portion of the Companys cash flow may be
    used to pay principal and interest on its debt, which will
    reduce the funds available for working capital, capital
    expenditures, acquisitions and other purposes;                                                                       
| 
| | the Company may be more vulnerable to adverse changes in general
    economic, industry and competitive conditions;                                                                                                                                                                                         
| 
| | the various covenants contained in the Companys senior
    credit agreement, the indenture governing the senior
    subordinated notes, and the documents governing its other
    existing indebtedness may place it at a relative competitive
    disadvantage as compared to some of its competitors; and
| 
| | borrowings under the senior credit agreement bear interest at
    floating rates, which could result in higher interest expense in
    the event of an increase in interest rates.                                                                                                                          



13



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The Company is a defendant in certain asbestos and silicosis
personal injury lawsuits, which could adversely affect its
financial condition.






The nature of the Companys products creates the
possibility of significant product liability and warranty
claims, which could harm its business.




Environmental compliance costs and liabilities could
adversely affect the Companys financial condition.








14



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clean-up


The Companys success depends on its executive officers
and other key personnel.




The Companys business could suffer if it experiences
employee work stoppages or other labor difficulties.




The Company may not be able to continue to make the
acquisitions necessary for it to realize its growth strategy.




Third parties may infringe upon the Companys
intellectual property and the Company may expend significant
resources enforcing its rights or suffer competitive injury.




15



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The Companys pension and other postretirement benefit
obligations and expense (or income) are dependent upon
assumptions used in calculating such amounts and actual results
of investment activity.




A significant portion of the Companys assets consists
of goodwill and other intangible assets, the value of which may
be reduced if the Company determines that those assets are
impaired.







ITEM 1B. UNRESOLVED STAFF COMMENTS







ITEM 2. PROPERTIES







ITEM 3. LEGAL PROCEEDINGS


10-K.





ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS







PART II





ITEM 5. MARKET FOR REGISTRANTS COMMON EQUITY,
RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
SECURITIES




16



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|                                   |  |               |       |  |                |                  |                     |                 |                   |                        |                     |  |  |  |         | 
|---------------------------------- |  | ------------- | ----- |  | -------------- | ---------------- | ------------------- | --------------- | ----------------- | ---------------------- | ------------------- |  |  |  | ------- | 
|                                   |  |               |       |  |                | Total Number of  |                     |                 |                  
|                                   |  |               |       |  |                | Shares Purchased |                     |                 | Maximum Number of |                       
|                                   |  | Total Number  |       |  |                |                  | As Part of Publicly |                 |                   | Shares That May Yet Be |                    
|                                   |  | of Shares     |       |  | Average Price  |                  |                     | Announced Plans |                   |                        | Purchased Under the | 
|Period                             |  | Purchased (1) |       |  | Paid per Share |                  |                     | or Programs     |                   |                        | Plans or Programs   | 
|                                   | 
|October 1, 2005-October 31, 2005   |  |               |      |  |                |                  | n/a                 |                 |                   |                        |                    |  |  |  | 418,558 | 
|November 1, 2005-November 30, 2005 |  |               |      |  |                |                  | n/a                 |                 |                   |                        |                    |  |  |  | 418,558 | 
|December 1, 2005-December 31, 2005 |  |               | 1,250 |  |                | $                | 49.71               |                 |                   |                        | 1,000               |  |  |  | 417,558 | 
|                                  
|Total                              |  |               | 1,250 |  |                | $                | 49.71               |                 |                   |                        | 1,000               |  |  |  | 417,558 | 
|                                  



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes shares exchanged or surrendered in connection with the
    exercise of options under Gardner Denvers stock options
    plans.                                                                                                                                                                                                                                                                                                                                                        
|(2) | In October 1998, Gardner Denvers Board of Directors
    authorized the repurchase of up to 1,600,000 shares of the
    Companys common stock to be used for general corporate
    purposes and the repurchase of up to 400,000 shares of the
    Companys Common Stock under a Stock Repurchase Program for
    Gardner Denvers executive officers. Both authorizations
    remain in effect until all the authorized shares are repurchased
    unless modified by the Board of Directors.




ITEM 6. SELECTED FINANCIAL DATA


|                                                |  |          |           |  |          |  |           |      |  |  |          |  |  |          |         |  |  |  |         | 
|----------------------------------------------- |  | -------- | --------- |  | -------- |  | --------- | ---- |  |  | -------- |  |  | -------- | ------- |  |  |  | ------- | 
|Years Ended December 31                         |  |          |           |  |          |  |           |      |  | 
|(Dollars in thousands except per share amounts) |  |          |           |  |          |  |           |      | 
|                                                |  | 2005 (1) |           |  | 2004 (2) |  |           | 2003 |  |  | 2002 (3) |  |  | 2001 (4) |        
|                                                | 
|Revenues                                        |  | $        | 1,214,552 |  |          |  | 739,539   |      |  |  | 439,530  |  |  |          | 418,158 |  |  |  | 419,770 | 
|Net income                                      |  |          | 66,951    |  |          |  | 37,123    |      |  |  | 20,643   |  |  |          | 19,602  |  |  |  | 22,024  | 
|Basic earnings per share                        |  |          | 2.80      |  |          |  | 1.96      |      |  |  | 1.29     |  |  |          | 1.24    |  |  |  | 1.42    | 
|Diluted earnings per share                      |  |          | 2.74      |  |          |  | 1.92      |      |  |  | 1.27     |  |  |          | 1.22    |  |  |  | 1.40    | 
|Long-term debt (excluding current maturities)   |  |          | 542,641   |  |          |  | 280,256   |      |  |  | 165,756  |  |  |          | 112,663 |  |  |  | 160,230 | 
|Total assets                                    |  | $        | 1,715,060 |  |          |  | 1,028,609 |      |  |  | 589,733  |  |  |          | 478,730 |  |  |  | 488,688 | 
|                                               



|    |                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The Company acquired the outstanding shares of Bottarini S.p.A.
    and Thomas during June 2005 and July 2005, respectively.                                                 
|(2) | The Company acquired the outstanding shares of Syltone, plc and
    nash_elmo Holdings LLC during January 2004 and September 2004,
    respectively.                         
|(3) | As a result of adopting SFAS No. 142 Goodwill
    and Other Intangible Assets,periodic amortization
    ceased effective January 1, 2002.                                  
|(4) | During September 2001, the Company acquired certain assets and
    stock of Hoffman Air and Filtration Systems and the Hamworthy,
    Belliss and Morcom compressor business.




ITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Non-GAAP Financial Measures






17



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Managements Discussion and Analysis




Overview and Description of Business














18



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|                           |                                     |      |       |      |      |  |       |      |   |  |       |      |  
|-------------------------- | ----------------------------------- | ---- | ----- | ---- | ---- |  | ----- | ---- | - |  | ----- | ---- | -
|                           |                                     | 2005 |       |      | 2004 |  |       | 2003 |  
|                           |                                    
|Revenues                   |                                     |      | 100.0 | %    |      |  | 100.0 |      |   |  | 100.0 |     
|Costs and expenses:        |                                     |      |       |      |      |  |       |      |   |  |       |     
|                           | Cost of sales                       |      |       | 67.0 |      |  |       | 67.4 |   |  |       | 70.0 |  
|                           | Depreciation and amortization       |      |       | 3.1  |      |  |       | 2.9  |   |  |       | 3.3  |  
|                           | Selling and administrative expenses |      |       | 20.0 |      |  |       | 21.3 |   |  |       | 19.4 |  
|                           | Interest expense                    |      |       | 2.5  |      |  |       | 1.4  |   |  |       | 1.1  |  
|                           | Other income, net                   |      |       | (0.5 | )    |  |       | (0.1 | ) |  |       | (0.7 | )
|                          
|Total costs and expenses   |                                     |      | 92.1  |      |      |  | 92.9  |      |   |  | 93.1  |     
|                          
|Income before income taxes |                                     |      | 7.9   |      |      |  | 7.1   |      |   |  | 6.9   |     
|Provision for income taxes |                                     |      | 2.4   |      |      |  | 2.1   |      |   |  | 2.2   |     
|                          
|Net income                 |                                     |      | 5.5   | %    |      |  | 5.0   |      |   |  | 4.7   |     
|                          

19



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Recent Developments


TODO-MATIC Emco Wheaton


Proposal II - Amendment of the Companys
Certificate of Incorporation to Increase the Authorized Common
Stock


YEAR ENDED DECEMBER 31, 2005, COMPARED WITH YEAR ENDED
DECEMBER 31, 2004


Revenues








Costs and Expenses




20



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step-up














non-U.S. non-U.S.


21



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##### 





YEAR ENDED DECEMBER 31, 2004, COMPARED WITH YEAR ENDED
DECEMBER 31, 2003


Revenues








Costs and Expenses








22



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non-U.S. non-U.S.




23



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Outlook








Liquidity and Capital Resources


Operating Working Capital




Cash Flows




24



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Capital Expenditures and Commitments






Liquidity










25



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Contractual Obligations and Commitments




|                             |  |       |         |                        |  |             |         |             |  |         |         |  |  |   |         |  |  |   |         | 
|---------------------------- |  | ----- | ------- | ---------------------- |  | ----------- | ------- | ----------- |  | ------- | ------- |  |  | - | ------- |  |  | - | ------- | 
|                             |  |       |         | Payments Due by Period
|                             |  |       |         |                       
|(Dollars in thousand)        |  |       |         | Less than              |  |             |         | More than  
|Contractual Cash Obligations |  | Total |         | 1 year                 |  | 1 - 3 years |         | 3 - 5 years |  | 5 years
|                            
|Debt                         |  | $     | 561,869 |                        |  | $           | 25,834  |             |  | $       | 86,304  |  |  | $ | 310,443 |  |  | $ | 139,288 | 
|Capital leases               |  |       | 6,853   |                        |  |             | 247     |             |  |         | 498     |  |  |   | 467     |  |  |   | 5,641   | 
|Operating leases             |  |       | 53,000  |                        |  |             | 13,677  |             |  |         | 17,565  |  |  |   | 9,072   |  |  |   | 12,686  | 
|Purchase obligations         |  |       | 171,648 |                        |  |             | 169,191 |             |  |         | 1,797   |  |  |   | 448     |  |  |   | 212     | 
|                            
|Total                        |  | $     | 793,370 |                        |  | $           | 208,949 |             |  | $       | 106,164 |  |  | $ | 320,430 |  |  | $ | 157,827 | 
|                            

26



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Contingencies












27



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##### 





Changes in Accounting Principles and Effects of New
Accounting Pronouncements


Inventory
Costs - an amendment to ARB No. 43,
Chapter 4.


Share-Based Payment Accounting for Stock-Based
Compensation. Accounting for Stock Issued to
Employees, Statement of Cash Flows.








28



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Accounting Changes and Error Corrections,


Critical Accounting Policies




Inventories


first-in, last-in,


Goodwill and Other Intangibles




Pension and Other Postretirement Benefits




29



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##### 







Income Taxes




Contingencies




Cautionary Statements Regarding Forward-Looking Statements


10-K,


30



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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK




non-U.S.




31



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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY
DATA


Report on Managements Assessment of Internal Control
Over Financial Reporting


13a-15(f).


Internal Control
Integrated Framework Internal
Control Integrated Framework,






Report of Independent Registered Public Accounting Firm










32



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Internal Control Integrated
Framework








Report of Independent Registered Public Accounting Firm






Internal Control Integrated Framework






33



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Internal Control Integrated Framework Internal Control Integrated Framework












34



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Consolidated Statements of Operations


GARDNER DENVER, INC.


Years ended December 31


(Dollars in thousands except per share amounts)


|                           |                                     |      |           |         |   |      |         |         |   |  |         |         |  
|-------------------------- | ----------------------------------- | ---- | --------- | ------- | - | ---- | ------- | ------- | - |  | ------- | ------- | -
|                           |                                     | 2005 |           | 2004    |   | 2003
|                          
|Revenues                   |                                     | $    | 1,214,552 |         |   |      | 739,539 |         |   |  | 439,530 |        
|Costs and expenses:        |                                     |      |           |         |   |      |         |         |   |  |         |        
|                           | Cost of sales                       |      |           | 813,227 |   |      |         | 498,435 |   |  |         | 307,753 |  
|                           | Depreciation and amortization       |      |           | 38,322  |   |      |         | 21,901  |   |  |         | 14,566  |  
|                           | Selling and administrative expenses |      |           | 242,368 |   |      |         | 157,453 |   |  |         | 85,326  |  
|                           | Interest expense                    |      |           | 30,433  |   |      |         | 10,102  |   |  |         | 4,748   |  
|                           | Other income, net                   |      |           | (5,442  | ) |      |         | (638    | ) |  |         | (3,221  | )
|                          
|Total costs and expenses   |                                     |      | 1,118,908 |         |   |      | 687,253 |         |   |  | 409,172 |        
|                          
|Income before income taxes |                                     |      | 95,644    |         |   |      | 52,286  |         |   |  | 30,358  |        
|Provision for income taxes |                                     |      | 28,693    |         |   |      | 15,163  |         |   |  | 9,715   |        
|                          
|Net income                 |                                     | $    | 66,951    |         |   |      | 37,123  |         |   |  | 20,643  |        
|                          
|Basic earnings per share   |                                     | $    | 2.80      |         |   |      | 1.96    |         |   |  | 1.29    |        
|                          
|Diluted earnings per share |                                     | $    | 2.74      |         |   |      | 1.92    |         |   |  | 1.27    |        
|                          

The accompanying notes are an integral part of these
statements.





35



---



##### 



Consolidated Balance Sheets


GARDNER DENVER, INC.


December 31


(Dollars in thousands except per share amounts)


|                                            |                                                                                                                                                  |                                            |         |         |           |  |         |         |           | 
|------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------ | ------- | ------- | --------- |  | ------- | ------- | --------- | 
|                                            |                                                                                                                                                  | 2005                                       |         | 2004   
|                                           
|Assets                                     
|Current assets:                             |                                                                                                                                                  |                                            |         |         |           |  |         |        
|                                            | Cash and equivalents                                                                                                                             |                                            | $       | 110,906 |           |  |         | 64,601  |          
|                                            | Accounts receivable, net                                                                                                                         |                                            |         | 229,467 |           |  |         | 163,927 |          
|                                            | Inventories, net                                                                                                                                 |                                            |         | 207,326 |           |  |         | 138,386 |          
|                                            | Deferred income taxes                                                                                                                            |                                            |         | 25,754  |           |  |         | 9,465   |          
|                                            | Other current assets                                                                                                                             |                                            |         | 12,814  |           |  |         | 9,143   |          
|                                           
|                                            |                                                                                                                                                  | Total current assets                       |         |         | 586,267   |  |         |         | 385,522   | 
|                                           
|Property, plant and equipment, net          |                                                                                                                                                  |                                            | 282,591 |         |           |  | 148,819 |        
|Goodwill                                    |                                                                                                                                                  |                                            | 620,244 |         |           |  | 374,159 |        
|Other intangibles, net                      |                                                                                                                                                  |                                            | 203,516 |         |           |  | 110,173 |        
|Other assets                                |                                                                                                                                                  |                                            | 22,442  |         |           |  | 9,936   |        
|                                           
|                                            |                                                                                                                                                  | Total assets                               |         | $       | 1,715,060 |  |         |         | 1,028,609 | 
|                                           
|                                           
|Liabilities and Stockholders Equity       
|Current liabilities:                        |                                                                                                                                                  |                                            |         |         |           |  |         |        
|                                            | Short-term borrowings and current maturities of long-term debt                                                                                   |                                            | $       | 26,081  |           |  |         | 32,949  |          
|                                            | Accounts payable and accrued liabilities                                                                                                         |                                            |         | 287,763 |           |  |         | 206,069 |          
|                                           
|                                            |                                                                                                                                                  | Total current liabilities                  |         |         | 313,844   |  |         |         | 239,018   | 
|                                           
|Long-term debt, less current maturities     |                                                                                                                                                  |                                            | 542,641 |         |           |  | 280,256 |        
|Postretirement benefits other than pensions |                                                                                                                                                  |                                            | 31,387  |         |           |  | 30,503  |        
|Deferred income taxes                       |                                                                                                                                                  |                                            | 86,171  |         |           |  | 21,324  |        
|Other liabilities                           |                                                                                                                                                  |                                            | 82,728  |         |           |  | 52,032  |        
|                                           
|                                            |                                                                                                                                                  | Total liabilities                          |         | $       | 1,056,771 |  |         |         | 623,133   | 
|                                           
|Stockholders equity:                       |                                                                                                                                                  |                                            |         |         |           |  |         |        
|                                            | Common stock, $0.01 par value; 50,000,000 shares
    authorized; 25,999,352 and 19,947,570 shares outstanding in
    2005 and 2004, respectively |                                            |         | 278     |           |  |         | 217     |          
|                                            | Capital in excess of par value                                                                                                                   |                                            |         | 472,825 |           |  |         | 262,091 |          
|                                            | Retained earnings                                                                                                                                |                                            |         | 206,381 |           |  |         | 139,430 |          
|                                            | Accumulated other comprehensive income                                                                                                           |                                            |         | 8,124   |           |  |         | 30,185  |          
|                                            | Treasury stock at cost, 1,809,026 and 1,739,661 shares in
    2005 and 2004, respectively                                                        |                                            |         | (29,319 | )         |  |         | (26,447 | )        
|                                           
|                                            |                                                                                                                                                  | Total stockholders equity                 |         |         | 658,289   |  |         |         | 405,476   | 
|                                           
|                                            |                                                                                                                                                  | Total liabilities and stockholders equity |         | $       | 1,715,060 |  |         |         | 1,028,609 | 
|                                           

The accompanying notes are an integral part of these
statements.





36



---



##### 



Consolidated Statements of Stockholders Equity


GARDNER DENVER, INC.


Years ended December 31


(Dollars in thousands)


|                                                              |  |        |     |            |  |          |         |          |  |               |         |               |  |               |         |  |  |  |         |   |  |  |         |   |  |  |         |  
|------------------------------------------------------------- |  | ------ | --- | ---------- |  | -------- | ------- | -------- |  | ------------- | ------- | ------------- |  | ------------- | ------- |  |  |  | ------- | - |  |  | ------- | - |  |  | ------- | -
|                                                              |  |        |     |            |  |          |         |          |  | Accumulated   |         |               |  |              
|                                                              |  |        |     | Capital in |  |          |         |          |  | Other         |         | Total         |  |              
|                                                              |  | Common |     | Excess of  |  | Treasury |         | Retained |  | Comprehensive |         | Stockholders |  | Comprehensive
|                                                              |  | Stock  |     | Par Value  |  | Stock    |         | Earnings |  | Income (Loss) |         | Equity        |  | Income       
|                                                             
|Balance January 1, 2003                                       |  | $      | 177 |            |  |          | 171,047 |          |  |               | (25,819 | )             |  |               | 81,664  |  |  |  | (4,146  | ) |  |  | 222,923 |   |  |  |         |  
|                                                              |  |        |     |            |  |         
|Stock issued for benefit plans and options                    |  |        | 1   |            |  |          | 3,427   |          |  |               |         |               |  |               |         |  |  |  |         |   |  |  | 3,428   |   |  |  |         |  
|Treasury stock                                                |  |        |     |            |  |          |         |          |  |               | (128    | )             |  |               |         |  |  |  |         |   |  |  | (128    | ) |  |  |         |  
|Net income                                                    |  |        |     |            |  |          |         |          |  |               |         |               |  |               | 20,643  |  |  |  |         |   |  |  | 20,643  |   |  |  | 20,643  |  
|Foreign currency translation adjustments                      |  |        |     |            |  |          |         |          |  |               |         |               |  |               |         |  |  |  | 15,734  |   |  |  | 15,734  |   |  |  | 15,734  |  
|Minimum pension liability adjustments, net of tax of $(1,678) |  |        |     |            |  |          |         |          |  |               |         |               |  |               |         |  |  |  | 3,305   |   |  |  | 3,305   |   |  |  | 3,305   |  
|                                                              |  |        |     |            |  |          |         |          |  |               |         |               |  |               |         |  |  |  |         |   |  |  |         |   |  |  |         |  
|                                                              |  |        |     |            |  |          |         |          |  |               |         |               |  |               |         |  |  |  |         |   |  |  |         |   |  |  | 39,682  |  
|                                                              |  |        |     |            |  |         
|Balance December 31, 2003                                     |  | $      | 178 |            |  |          | 174,474 |          |  |               | (25,947 | )             |  |               | 102,307 |  |  |  | 14,893  |   |  |  | 265,905 |   |  |  |         |  
|                                                              |  |        |     |            |  |         
|Stock offering                                                |  |        | 35  |            |  |          | 79,522  |          |  |               |         |               |  |               |         |  |  |  |         |   |  |  | 79,557  |   |  |  |         |  
|Stock issued for benefit plans and options                    |  |        | 4   |            |  |          | 8,095   |          |  |               |         |               |  |               |         |  |  |  |         |   |  |  | 8,099   |   |  |  |         |  
|Treasury stock                                                |  |        |     |            |  |          |         |          |  |               | (500    | )             |  |               |         |  |  |  |         |   |  |  | (500    | ) |  |  |         |  
|Net income                                                    |  |        |     |            |  |          |         |          |  |               |         |               |  |               | 37,123  |  |  |  |         |   |  |  | 37,123  |   |  |  | 37,123  |  
|Foreign currency translation adjustments                      |  |        |     |            |  |          |         |          |  |               |         |               |  |               |         |  |  |  | 15,712  |   |  |  | 15,712  |   |  |  | 15,712  |  
|Minimum pension liability adjustments, net of tax of $140     |  |        |     |            |  |          |         |          |  |               |         |               |  |               |         |  |  |  | (420    | ) |  |  | (420    | ) |  |  | (420    | )
|                                                              |  |        |     |            |  |          |         |          |  |               |         |               |  |               |         |  |  |  |         |   |  |  |         |   |  |  |         |  
|                                                              |  |        |     |            |  |          |         |          |  |               |         |               |  |               |         |  |  |  |         |   |  |  |         |   |  |  | 52,415  |  
|                                                              |  |        |     |            |  |         
|Balance December 31, 2004                                     |  | $      | 217 |            |  |          | 262,091 |          |  |               | (26,447 | )             |  |               | 139,430 |  |  |  | 30,185  |   |  |  | 405,476 |   |  |  |         |  
|                                                              |  |        |     |            |  |         
|Stock offering                                                |  |        | 57  |            |  |          | 199,171 |          |  |               |         |               |  |               |         |  |  |  |         |   |  |  | 199,228 |   |  |  |         |  
|Stock issued for benefit plans and options                    |  |        | 4   |            |  |          | 11,563  |          |  |               |         |               |  |               |         |  |  |  |         |   |  |  | 11,567  |   |  |  |         |  
|Treasury stock                                                |  |        |     |            |  |          |         |          |  |               | (2,872  | )             |  |               |         |  |  |  |         |   |  |  | (2,872  | ) |  |  |         |  
|Net income                                                    |  |        |     |            |  |          |         |          |  |               |         |               |  |               | 66,951  |  |  |  |         |   |  |  | 66,951  |   |  |  | 66,951  |  
|Foreign currency translation adjustments                      |  |        |     |            |  |          |         |          |  |               |         |               |  |               |         |  |  |  | (18,008 | ) |  |  | (18,008 | ) |  |  | (18,008 | )
|Minimum pension liability adjustments, net of tax of $2,452   |  |        |     |            |  |          |         |          |  |               |         |               |  |               |         |  |  |  | (4,053  | ) |  |  | (4,053  | ) |  |  | (4,053  | )
|                                                              |  |        |     |            |  |          |         |          |  |               |         |               |  |               |         |  |  |  |         |   |  |  |         |   |  |  |         |  
|                                                              |  |        |     |            |  |          |         |          |  |               |         |               |  |               |         |  |  |  |         |   |  |  |         |   |  |  | 44,890  |  
|                                                              |  |        |     |            |  |         
|Balance December 31, 2005                                     |  | $      | 278 |            |  |          | 472,825 |          |  |               | (29,319 | )             |  |               | 206,381 |  |  |  | 8,124   |   |  |  | 658,289 |   |  |  |         |  
|                                                              |  |        |     |            |  |         

The accompanying notes are an integral part of these
statements.





37



---



##### 



Consolidated Statements of Cash Flows


GARDNER DENVER, INC.


Years ended December 31


(Dollars in thousands)


|                                                        |                                                                                       |                                                   |                                          |                                           |        |        |          |          |        |        |          |         |        |        |         |  
|------------------------------------------------------- | ------------------------------------------------------------------------------------- | ------------------------------------------------- | ---------------------------------------- | ----------------------------------------- | ------ | ------ | -------- | -------- | ------ | ------ | -------- | ------- | ------ | ------ | ------- | -
|                                                        |                                                                                       | 2005                                              |                                          | 2004                                      |        | 2003  
|                                                       
|Cash flows from operating activities:                   |                                                                                       |                                                   |                                          |                                           |        |        |          |          |        |        |          |        
|                                                        | Net income                                                                            |                                                   | $                                        | 66,951                                    |        |        |          | 37,123   |        |        |          | 20,643  |       
|                                                        | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                   |                                          |                                           |        |        |          |          |        |        |          |         |       
|                                                        |                                                                                       | Depreciation and amortization                     |                                          |                                           | 38,322 |        |          |          | 21,901 |        |          |         | 14,566 |       
|                                                        |                                                                                       | Unrealized foreign currency transaction gain, net |                                          |                                           | (98    | )      |          |          | (980   | )      |          |         | (3,212 | )     
|                                                        |                                                                                       | Net gain on asset dispositions                    |                                          |                                           | (699   | )      |          |          | (40    | )      |          |         | (370   | )     
|                                                        |                                                                                       | LIFO liquidation income                           |                                          |                                           |       |        |          |          | (132   | )      |          |         | (367   | )     
|                                                        |                                                                                       | Stock issued for employee benefit plans           |                                          |                                           | 3,305  |        |          |          | 3,239  |        |          |         | 2,434  |       
|                                                        |                                                                                       | Deferred income taxes                             |                                          |                                           | 1,996  |        |          |          | 537    |        |          |         | 5,724  |       
|                                                        |                                                                                       | Foreign currency hedging transactions             |                                          |                                           | 1,491  |        |          |          | (1,258 | )      |          |         |       |       
|                                                        |                                                                                       | Changes in assets and liabilities:                |                                          |                                           |        |        |          |          |        |        |          |         |        |       
|                                                        |                                                                                       |                                                   | Receivables                              |                                           |        | (8,624 | )        |          |        | (6,011 | )        |         |        | (3,568 | )      
|                                                        |                                                                                       |                                                   | Inventories                              |                                           |        | 378    |          |          |        | (1,745 | )        |         |        | 7,270  |        
|                                                        |                                                                                       |                                                   | Accounts payable and accrued liabilities |                                           |        | 2,275  |          |          |        | 20,526 |          |         |        | 4,095  |        
|                                                        |                                                                                       |                                                   | Other assets and liabilities, net        |                                           |        | 9,778  |          |          |        | 2,334  |          |         |        | (932   | )      
|                                                       
|                                                        |                                                                                       |                                                   |                                          | Net cash provided by operating activities |        |        | 115,075  |          |        |        | 75,494   |         |        |        | 46,283  |  
|                                                       
|Cash flows from investing activities:                   |                                                                                       |                                                   |                                          |                                           |        |        |          |          |        |        |          |        
|                                                        | Net cash paid in business combinations                                                |                                                   |                                          | (481,917                                  | )      |        |          | (295,313 | )      |        |          | (2,402  | )     
|                                                        | Capital expenditures                                                                  |                                                   |                                          | (35,518                                   | )      |        |          | (19,550  | )      |        |          | (11,950 | )     
|                                                        | Disposals of property, plant and equipment                                            |                                                   |                                          | 3,749                                     |        |        |          | 557      |        |        |          | 1,959   |       
|                                                        | Other                                                                                 |                                                   |                                          | (2,225                                    | )      |        |          |         |        |        |          | (516    | )     
|                                                       
|                                                        |                                                                                       |                                                   |                                          | Net cash used in investing activities     |        |        | (515,911 | )        |        |        | (314,306 | )       |        |        | (12,909 | )
|                                                       
|Cash flows from financing activities:                   |                                                                                       |                                                   |                                          |                                           |        |        |          |          |        |        |          |        
|                                                        | Principal payments on short-term borrowings                                           |                                                   |                                          | (26,620                                   | )      |        |          | (3,648   | )      |        |          |        |       
|                                                        | Proceeds from short-term borrowings                                                   |                                                   |                                          | 18,354                                    |        |        |          | 327      |        |        |          |        |       
|                                                        | Principal payments on long-term debt                                                  |                                                   |                                          | (659,635                                  | )      |        |          | (274,470 | )      |        |          | (59,532 | )     
|                                                        | Proceeds from long-term debt                                                          |                                                   |                                          | 922,439                                   |        |        |          | 362,533  |        |        |          | 122,000 |       
|                                                        | Proceeds from issuance of common stock                                                |                                                   |                                          | 199,228                                   |        |        |          | 79,557   |        |        |          |        |       
|                                                        | Proceeds from stock options                                                           |                                                   |                                          | 6,006                                     |        |        |          | 4,860    |        |        |          | 993     |       
|                                                        | Purchase of treasury stock                                                            |                                                   |                                          | (2,872                                    | )      |        |          | (500     | )      |        |          | (128    | )     
|                                                        | Debt issuance costs                                                                   |                                                   |                                          | (8,186                                    | )      |        |          | (1,847   | )      |        |          | (302    | )     
|                                                       
|                                                        |                                                                                       |                                                   |                                          | Net cash provided by financing activities |        |        | 448,714  |          |        |        | 166,812  |         |        |        | 63,031  |  
|                                                       
|Effect of exchange rate changes on cash and equivalents |                                                                                       |                                                   | (1,573                                   | )                                         |        |        | 3,798    |          |        |        | 10,731   |        
|                                                       
|Increase (decrease) in cash and equivalents             |                                                                                       |                                                   | 46,305                                   |                                           |        |        | (68,202  | )        |        |        | 107,136  |        
|Cash and equivalents, beginning of year                 |                                                                                       |                                                   | 64,601                                   |                                           |        |        | 132,803  |          |        |        | 25,667   |        
|                                                       
|Cash and equivalents, end of year                       |                                                                                       | $                                                 | 110,906                                  |                                           |        |        | 64,601   |          |        |        | 132,803  |        
|                                                       

The accompanying notes are an integral part of these
statements.





38



---



##### 





Notes to Consolidated Financial Statements


GARDNER DENVER, INC.


(Dollars in thousands except per share amounts or amounts
described in millions)





Note 1: Summary of Significant Accounting
Policies


Basis of Presentation




Principles of Consolidation




Use of Estimates




Foreign Currency Translation




Revenue Recognition




Cash Equivalents




Accounts Receivable






39



---



##### 





Inventories


first-in, last-in,


Property, Plant and Equipment




Goodwill and Other Intangibles






Impairment of Long-Lived Assets and Long-Lived Assets to be
Disposed




Product Warranty




Pension and Other Postretirement Benefits




40



---



##### 





Income Taxes




Research and Development




Financial Instruments


non-U.S.


Stock-Based Compensation


Accounting for Stock-Based
Compensation, Accounting for Stock Issued to
Employees, ,
Accounting for Stock-Based Compensation Transition and
Disclosure, an Amendment to SFAS No. 123,


41



---



##### 





|                                                                                                                         |  |      |        |   |      |  |        |      |  |  |        |  
|------------------------------------------------------------------------------------------------------------------------ |  | ---- | ------ | - | ---- |  | ------ | ---- |  |  | ------ | -
|                                                                                                                         |  | 2005 |        |   | 2004 |  |        | 2003 | 
|                                                                                                                         | 
|Net income, as reported                                                                                                  |  | $    | 66,951 |   |      |  | 37,123 |      |  |  | 20,643 |  
|Less: Total stock-based employee compensation expense determined
    under fair value method, net of related tax effects |  |      | (2,074 | ) |      |  | (1,359 | )    |  |  | (1,252 | )
|                                                                                                                        
|Pro forma net income                                                                                                     |  | $    | 64,877 |   |      |  | 35,764 |      |  |  | 19,391 |  
|                                                                                                                        
|Earnings per share:                                                                                                      |  |      |        |   |      |  |        |      |  |  |        |  
|Basic earnings per share, as reported                                                                                    |  | $    | 2.80   |   |      |  | 1.96   |      |  |  | 1.29   |  
|Basic earnings per share, pro forma                                                                                      |  | $    | 2.71   |   |      |  | 1.89   |      |  |  | 1.21   |  
|Diluted earnings per share, as reported                                                                                  |  | $    | 2.74   |   |      |  | 1.92   |      |  |  | 1.27   |  
|Diluted earnings per share, pro forma                                                                                    |  | $    | 2.65   |   |      |  | 1.85   |      |  |  | 1.19   |  
|                                                                                                                        





|                                |                          |                     |       |     |      |   |      |      |   |   |      |     |  
|------------------------------- | ------------------------ | ------------------- | ----- | --- | ---- | - | ---- | ---- | - | - | ---- | --- | -
|                                |                          | For the Years Ended |      
|                                |                          | December 31,       
|                                |                          |                     |      
|                                |                          | 2005                |       |     | 2004 |   |      | 2003 |  
|                                |                         
|Assumptions:                    |                          |                     |       |     |      |   |      |      |   |   |      |    
|                                | Risk-free interest rate  |                     |       | 3.9 | %    |   |      | 3.1  | % |   |      | 2.4 | %
|                                | Dividend yield           |                     |       |    |      |   |      |     |   |   |      |    |  
|                                | Volatility factor        |                     |       | 33  |      |   |      | 34   |   |   |      | 35  |  
|                                | Expected life (in years) |                     |       | 4.4 |      |   |      | 4.5  |   |   |      | 3.8 |  
|                               
|Fair value of options per share |                          | $                   | 13.29 |     |      | $ | 9.45 |      |   | $ | 5.77 |    
|                               

Comprehensive Income




Changes in Accounting Principles and Effects of New
Accounting Pronouncements


, Inventory
Costs - an amendment to ARB No. 43,
Chapter 4.


42



---



##### 



Share-Based Payment Accounting for Stock-Based
Compensation. Accounting for Stock Issued to
Employees, Statement of Cash Flows.








Accounting Changes and Error Corrections,


43



---



##### 



Note 2: Business Combinations


Acquisition of Thomas Industries Inc.






Thomas Industries Inc.


Assets Acquired and Liabilities Assumed


July 1, 2005


(Dollars in thousands)


|                               |                          |   |         |         | 
|------------------------------ | ------------------------ | - | ------- | ------- | 
|Cash                           |                          | $ | 265,310 |        
|Accounts receivable, net       |                          |   | 61,255  |        
|Inventories, net               |                          |   | 76,129  |        
|Property, plant and equipment  |                          |   | 125,115 |        
|Other assets                   |                          |   | 16,736  |        
|Identifiable intangible assets |                          |   | 108,000 |        
|Goodwill                       |                          |   | 252,373 |        
|Current liabilities            |                          |   | (88,366 | )      
|Long-term debt                 |                          |   | (7,559  | )      
|Deferred income taxes          |                          |   | (46,178 | )      
|Other long-term liabilities    |                          |   | (21,565 | )      
|                              
|                               | Aggregate purchase price |   | $       | 741,250 | 
|                              



|                               |                                  |   |         |         | 
|------------------------------ | -------------------------------- | - | ------- | ------- | 
|                              
|Amortized intangible assets:   |                                  |   |         |        
|                               | Customer lists and relationships |   | $       | 50,000  | 
|                               | Other                            |   |         | 13,000  | 
|Unamortized intangible assets: |                                  |   |         |        
|                               | Goodwill                         |   |         | 252,373 | 
|                               | Tradenames                       |   |         | 45,000  | 
|                              
|Total intangible assets        |                                  | $ | 360,373 |        
|                              

44



---



##### 







| |                               
| | ------------------------------
| | Other Consummated Acquisitions

 






|                                                  |                                                 |   |        |        |  
|------------------------------------------------- | ----------------------------------------------- | - | ------ | ------ | -
|                                                 
|Total goodwill recorded as of December 31, 2004   |                                                 | $ | 91,648 |       
|                                                 
|Purchase accounting adjustments recorded in 2005: |                                                 |   |        |       
|                                                  | Severance and personnel-related                 |   |        | (2,653 | )
|                                                  | Finalization of preliminary valuation estimates |   |        | (4,736 | )
|                                                  | Income taxes                                    |   |        | 11,620 |  
|                                                  | Other, net(1)                                   |   |        | (2,497 | )
|                                                 
|Total goodwill recorded as of December 31, 2005   |                                                 | $ | 93,382 |       
|                                                 



|    |                                                              
|--- | -------------------------------------------------------------
|(1) | Includes the effect of foreign currency exchange rate changes





45



---



##### 





|                                 |  |           |           |  |      |  |           | 
|-------------------------------- |  | --------- | --------- |  | ---- |  | --------- | 
|                                 |  | Unaudited
|                                 |  |           |          
|                                 |  | 2005      |           |  | 2004 | 
|                                 | 
|Revenues                         |  | $         | 1,435,471 |  |      |  | 1,305,970 | 
|Net income(1)(2)                 |  |           | 72,099    |  |      |  | 136,819   | 
|Diluted earnings per share(1)(2) |  | $         | 2.73      |  |      |  | 5.61      | 
|                                



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Net income and diluted earnings per share for 2004, include a
    one-time gain of $160.4 million, pre-tax, related to
    Thomas sale of its equity interest in the Genlyte Thomas
    Group LLC (GTG) on July 31, 2004. Assuming that
    Thomas had sold its interest in GTG on January 1, 2004, and
    had not generated this one-time gain, and used a portion of the
    net proceeds from the sale to repay all of Thomas existing
    debt, other than capitalized lease obligations, diluted pro
    forma earnings per share for 2004 would have been $1.71.
|   
|(2) | Net income for 2005 and 2004 reflect the negative impact of
    recording $3.9 million and $3.6 million, respectively,
    in inventory pre-tax
    step-up adjustments
    relating to recording the Thomas and Nash Elmo inventories,
    respectively, at fair value.                                                                                                                                                                                                                                                                                                   





| |                            
| | ---------------------------
| | Thomas Merger-related Costs

Recognition of Liabilities in Connection with a
Purchase Business Combination,


|                                 |  |                    |        |             |  |                   |        |   |  |   |       | 
|-------------------------------- |  | ------------------ | ------ | ----------- |  | ----------------- | ------ | - |  | - | ----- | 
|                                 |  | Opening Balance at |        |             |  | Ending Balance at
|                                 |  | July 1, 2005       |        | Amount Paid |  | December 31, 2005
|                                
|Personnel-related cost liability |  | $                  | 17,500 |             |  | $                 | (8,157 | ) |  | $ | 9,343 | 

Note 3: Allowance for Doubtful Accounts




|                             |  |      |        |   |      |   |        |      |  |   |        |  
|---------------------------- |  | ---- | ------ | - | ---- | - | ------ | ---- |  | - | ------ | -
|                             |  | 2005 |        |   | 2004 |   |        | 2003 | 
|                             | 
|Balance at beginning of year |  | $    | 7,543  |   |      | $ | 4,534  |      |  | $ | 5,279  |  
|Provision charged to expense |  |      | 2,489  |   |      |   | 918    |      |  |   | 795    |  
|Charged to other accounts(1) |  |      | 1,751  |   |      |   | 4,007  |      |  |   | 170    |  
|Deductions                   |  |      | (2,178 | ) |      |   | (1,916 | )    |  |   | (1,710 | )
|                            
|Balance at end of year       |  | $    | 9,605  |   |      | $ | 7,543  |      |  | $ | 4,534  |  
|                            



|    |                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes the allowance for doubtful accounts of acquired
    businesses at the dates of acquisition and the effect of foreign
    currency translation adjustments for those companies whose
    functional currency is not the U.S. dollar.

46



---



##### 



Note 4: Inventories


|                                                 |                  |      |         |         |      |  |         |         | 
|------------------------------------------------ | ---------------- | ---- | ------- | ------- | ---- |  | ------- | ------- | 
|                                                 |                  | 2005 |         |         | 2004 | 
|                                                 |                 
|Raw materials, including parts and subassemblies |                  | $    | 95,855  |         |      |  | 62,477  |        
|Work-in-process                                  |                  |      | 37,230  |         |      |  | 23,405  |        
|Finished goods                                   |                  |      | 80,494  |         |      |  | 57,321  |        
|                                                
|                                                 |                  |      | 213,579 |         |      |  | 143,203 |        
|Excess of FIFO costs over LIFO costs             |                  |      | (6,253  | )       |      |  | (4,817  | )      
|                                                
|                                                 | Inventories, net |      | $       | 207,326 |      |  |         | 138,386 | 
|                                                



Note 5: Property, Plant and Equipment


|                               |                                    |      |          |         |      |  |          |         | 
|------------------------------ | ---------------------------------- | ---- | -------- | ------- | ---- |  | -------- | ------- | 
|                               |                                    | 2005 |          |         | 2004 | 
|                               |                                   
|Land and land improvements     |                                    | $    | 20,306   |         |      |  | 15,304   |        
|Buildings                      |                                    |      | 138,081  |         |      |  | 74,936   |        
|Machinery and equipment        |                                    |      | 194,936  |         |      |  | 139,368  |        
|Tooling, dies, patterns, etc.  |                                    |      | 37,824   |         |      |  | 22,982   |        
|Office furniture and equipment |                                    |      | 27,903   |         |      |  | 22,374   |        
|Other                          |                                    |      | 13,073   |         |      |  | 10,242   |        
|Construction in progress       |                                    |      | 10,303   |         |      |  | 4,664    |        
|                              
|                               |                                    |      | 442,426  |         |      |  | 289,870  |        
|Accumulated depreciation       |                                    |      | (159,835 | )       |      |  | (141,051 | )      
|                              
|                               | Property, plant and equipment, net |      | $        | 282,591 |      |  |          | 148,819 | 
|                              

Note 6: Goodwill and Other Intangible Assets




47



---



##### 





|                                |  |                 |         |   |                |  |        |       |  |  |         |  
|------------------------------- |  | --------------- | ------- | - | -------------- |  | ------ | ----- |  |  | ------- | -
|                                |  | Compressor &    |         |   | Fluid Transfer |  |        |      
|                                |  | Vacuum Products |         |   | Products       |  |        | Total | 
|                                | 
|Balance as of January 1, 2004   |  | $               | 179,854 |   |                |  | 25,634 |       |  |  | 205,488 |  
|Acquisitions                    |  |                 | 148,842 |   |                |  | 11,609 |       |  |  | 160,451 |  
|Foreign currency translation    |  |                 | 7,379   |   |                |  | 841    |       |  |  | 8,220   |  
|                               
|Balance as of December 31, 2004 |  |                 | 336,075 |   |                |  | 38,084 |       |  |  | 374,159 |  
|                               
|Acquisitions                    |  |                 | 256,942 |   |                |  |       |       |  |  | 256,942 |  
|Adjustments to goodwill         |  |                 | 4,332   |   |                |  |       |       |  |  | 4,332   |  
|Foreign currency translation    |  |                 | (13,908 | ) |                |  | (1,281 | )     |  |  | (15,189 | )
|                               
|Balance as of December 31, 2005 |  | $               | 583,441 |   |                |  | 36,803 |       |  |  | 620,244 |  
|                               



|                               |                                  |                               |   |                   |              |  |  |                |         |   |              |        |         |  |  |        |         |  
|------------------------------ | -------------------------------- | ----------------------------- | - | ----------------- | ------------ |  |  | -------------- | ------- | - | ------------ | ------ | ------- |  |  | ------ | ------- | -
|                               |                                  | December 31, 2005             |   | December 31, 2004
|                               |                                  |                               |   |                   |              | 
|                               |                                  | Gross Carrying                |   |                   | Accumulated  |  |  | Gross Carrying |         |   | Accumulated  |       
|                               |                                  | Amount                        |   |                   | Amortization |  |  | Amount         |         |   | Amortization |       
|                               |                                 
|Amortized intangible assets:   |                                  |                               |   |                   |              |  |  |                |         |   |              |        |         |  |  |       
|                               | Customer lists and relationships |                               | $ | 105,896           |              |  |  | (7,389         | )       |   |              | 53,855 |         |  |  | (2,153 | )      
|                               | Acquired technology              |                               |   | 30,802            |              |  |  | (13,164        | )       |   |              | 19,218 |         |  |  | (9,732 | )      
|                               | Other                            |                               |   | 13,453            |              |  |  | (3,558         | )       |   |              | 11,352 |         |  |  | (2,508 | )      
|Unamortized intangible assets: |                                  |                               |   |                   |              |  |  |                |         |   |              |        |         |  |  |       
|                               | Trademarks                       |                               |   | 77,476            |              |  |  |               |         |   |              | 40,141 |         |  |  |       |        
|                              
|                               |                                  | Total other intangible assets |   | $                 | 227,627      |  |  |                | (24,111 | ) |              |        | 124,566 |  |  |        | (14,393 | )
|                              



Note 7: Accounts Payable and Accrued Liabilities


|                                                       |                                                |      |         |         |      |  |        |         | 
|------------------------------------------------------ | ---------------------------------------------- | ---- | ------- | ------- | ---- |  | ------ | ------- | 
|                                                       |                                                | 2005 |         |         | 2004 | 
|                                                       |                                               
|Accounts payable-trade                                 |                                                | $    | 103,028 |         |      |  | 81,977 |        
|Salaries, wages and related fringe benefits            |                                                |      | 41,932  |         |      |  | 39,251 |        
|Taxes                                                  |                                                |      | 42,363  |         |      |  | 12,860 |        
|Advance payments on sales contracts                    |                                                |      | 15,208  |         |      |  | 11,600 |        
|Product warranty                                       |                                                |      | 15,254  |         |      |  | 10,671 |        
|Product liability, workers compensation and insurance |                                                |      | 11,711  |         |      |  | 8,030  |        
|Other                                                  |                                                |      | 58,267  |         |      |  | 41,680 |        
|                                                      
|                                                       | Total accounts payable and accrued liabilities |      | $       | 287,763 |      |  |        | 206,069 | 
|                                                      

48



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##### 





|                                                                |  |      |         |   |      |  |        |      |  |  |        |  
|--------------------------------------------------------------- |  | ---- | ------- | - | ---- |  | ------ | ---- |  |  | ------ | -
|                                                                |  | 2005 |         |   | 2004 |  |        | 2003 | 
|                                                                | 
|Balance as of January 1                                         |  | $    | 10,671  |   |      |  | 6,635  |      |  |  | 7,060  |  
|Product warranty accruals                                       |  |      | 9,575   |   |      |  | 7,476  |      |  |  | 5,420  |  
|Settlements                                                     |  |      | (10,008 | ) |      |  | (7,611 | )    |  |  | (6,171 | )
|Other (primarily acquisitions and foreign currency translation) |  |      | 5,016   |   |      |  | 4,171  |      |  |  | 326    |  
|                                                               
|Balance as of December 31                                       |  | $    | 15,254  |   |      |  | 10,671 |      |  |  | 6,635  |  
|                                                               

Note 8: Debt


|                                                   |                                                     |      |         |         |      |  |         |         | 
|-------------------------------------------------- | --------------------------------------------------- | ---- | ------- | ------- | ---- |  | ------- | ------- | 
|                                                   |                                                     | 2005 |         |         | 2004 | 
|                                                   |                                                    
|Short-term debt:                                   |                                                     |      |         |         |      |  |         |        
|                                                   | Revolving loans(1)                                  |      | $       |        |      |  |         | 10,898  | 
|                                                   | Other short-term debt                               |      |         | 1,860   |      |  |         | 1,729   | 
|                                                  
|Total short-term debt                              |                                                     | $    | 1,860   |         |      |  | 12,627  |        
|                                                  
|                                                  
|Long-term debt:                                    |                                                     |      |         |         |      |  |         |        
|                                                   | Credit Line, due 2009(2)                            |      | $       | 158,900 |      |  |         | 113,635 | 
|                                                   | Term Loan, due 2010(3),(6)                          |      |         | 255,000 |      |  |         | 148,125 | 
|                                                   | Senior Subordinated Notes at 8%, due 2013           |      |         | 125,000 |      |  |         |        | 
|                                                   | Secured Mortgages(4)                                |      |         | 8,892   |      |  |         | 10,362  | 
|                                                   | Unsecured Senior Note at 7.3%, due 2006(1)          |      |         |        |      |  |         | 10,000  | 
|                                                   | Variable Rate Industrial Revenue Bonds, due 2018(5) |      |         | 8,000   |      |  |         | 8,000   | 
|                                                   | Term Loans, due 2007(1)                             |      |         |        |      |  |         | 6,001   | 
|                                                   | Capitalized leases and other long-term debt         |      |         | 11,070  |      |  |         | 4,455   | 
|                                                  
|Total long-term debt, including current maturities |                                                     |      | 566,862 |         |      |  | 300,578 |        
|Current maturities of long-term debt               |                                                     |      | 24,221  |         |      |  | 20,322  |        
|                                                  
|Long-term debt, less current maturities            |                                                     | $    | 542,641 |         |      |  | 280,256 |        
|                                                  



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The outstanding balance was paid during 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|(2) | The loans under this facility may be denominated in
    U.S. dollars or several foreign currencies. At
    December 31, 2005, the outstanding balance consisted of
    U.S. dollar borrowings of $25,000, Euro borrowings of
    90,000, and
    British pound borrowings of £16,000. The interest rates
    under the facility are based on prime, federal funds and/or
    LIBOR for the applicable currency. The weighted-average interest
    rates were 6.1%, 4.0% and 6.3%, as of December 31, 2005 for
    the U.S. dollar, Euro and British pound loans,
    respectively. The interest rates averaged 4.7%, 3.9% and 6.3%,
    for the year ended December 31, 2005 for the
    U.S. dollar, Euro and British pound loans, respectively.
|(3) | The interest rate varies with prime, federal funds, and/or
    LIBOR. At December 31, 2005, this rate was 6.1% and
    averaged 5.3% for the year ended December 31, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(4) | This amount consists of two fixed-rate commercial loans assumed
    in the 2004 acquisition of Nash Elmo with an outstanding balance
    of 7,521 at
    December 31, 2005. The loans are secured by the
    Companys facility in Bad Neustadt, Germany and are net of
    unamortized discount of
    237. At
    December 31, 2005, the weighted-average interest rate of
    these mortgages was 4.6% and the weighted-average maturity was
    14 years.                                                                                                                                                                                                                                                                                   
|   
|(5) | The interest rate varies with market rates for tax-exempt
    industrial revenue bonds. At December 31, 2005, this rate
    was 3.6% and averaged 2.5% for the year ended December 31,
    2005. These industrial revenue bonds are secured by an $8,100
    standby letter of credit. The proceeds from the bonds were used
    to construct the Companys Peachtree City, Georgia facility.                                                                                                                                                                                                                                                                                                                                                     
|(6) | The term loan outstanding at December 31, 2004 was replaced
    with a new term loan on July 1, 2005 under the new 2005
    Credit Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     



49



---



##### 





















50



---



##### 



Note 9: Pension and Other Postretirement
Benefits




Employers Accounting for Pensions, Employers Accounting for
Postretirement Benefits Other Than Pensions


non-U.S.










51



---



##### 





|                                                 |                                             |                  |         |                |      |                         |         |        |   |   |         |         |   |      |         |         |      |   |         |         |   |  |         |         |  
|------------------------------------------------ | ------------------------------------------- | ---------------- | ------- | -------------- | ---- | ----------------------- | ------- | ------ | - | - | ------- | ------- | - | ---- | ------- | ------- | ---- | - | ------- | ------- | - |  | ------- | ------- | -
|                                                 |                                             | Pension Benefits |         |                |      |                        
|                                                 |                                             |                  |         |                |     
|                                                 |                                             |                  |         |                |      | Other                  
|                                                 |                                             | U.S. Plans       |         | Non-U.S. Plans |      | Postretirement Benefits
|                                                 |                                             |                  |         |                |      |                         |         |        |  
|                                                 |                                             | 2005             |         |                | 2004 |                         |         | 2005   |   |   | 2004    |         |   | 2005 |         |         | 2004 |  
|                                                 |                                             |                  |         |                |     
|                                                 |                                             |                  |        
|Reconciliation of benefit obligation             |                                             |                  |         |                |      |                         |         |        |   |   |         |         |   |      |         |         |      |   |         |         |   |  |         |        
|Obligation as of January 1                       |                                             | $                | 60,669  |                |      |                         | 58,531  |        |   | $ | 150,483 |         |   |      | 33,388  |         |      | $ | 25,493  |         |   |  | 27,664  |        
|Service cost                                     |                                             |                  | 2,996   |                |      |                         | 2,119   |        |   |   | 4,298   |         |   |      | 4,187   |         |      |   | 83      |         |   |  | 16      |        
|Interest cost                                    |                                             |                  | 3,731   |                |      |                         | 3,356   |        |   |   | 7,824   |         |   |      | 6,413   |         |      |   | 1,507   |         |   |  | 1,649   |        
|Actuarial loss (gain)                            |                                             |                  | 1,936   |                |      |                         | 1,129   |        |   |   | 26,496  |         |   |      | 1,248   |         |      |   | 4,271   |         |   |  | (1,804  | )      
|Employee contributions                           |                                             |                  |        |                |      |                         |        |        |   |   | 988     |         |   |      | 1,065   |         |      |   |        |         |   |  |        |        
|Plan amendments                                  |                                             |                  | 55      |                |      |                         |        |        |   |   |        |         |   |      |        |         |      |   |        |         |   |  |        |        
|Benefit payments                                 |                                             |                  | (4,867  | )              |      |                         | (4,466  | )      |   |   | (2,719  | )       |   |      | (2,464  | )       |      |   | (2,485  | )       |   |  | (2,617  | )      
|Acquisitions                                     |                                             |                  | 10,389  |                |      |                         |        |        |   |   | 12,536  |         |   |      | 98,652  |         |      |   | 2,157   |         |   |  | 585     |        
|Special termination benefits                     |                                             |                  |        |                |      |                         |        |        |   |   | 291     |         |   |      |        |         |      |   |        |         |   |  |        |        
|Effect of foreign currency exchange rate changes |                                             |                  |        |                |      |                         |        |        |   |   | (17,905 | )       |   |      | 7,994   |         |      |   |        |         |   |  |        |        
|                                                 |                                             |                 
|                                                 | Obligation as of December 31                |                  | $       | 74,909         |      |                         |         | 60,669 |   |   | $       | 182,292 |   |      |         | 150,483 |      |   | $       | 31,026  |   |  |         | 25,493  |  
|                                                 |                                             |                 
|Reconciliation of fair value of plan assets      |                                             |                  |         |                |      |                         |         |        |   |   |         |         |   |      |         |         |      |   |         |         |   |  |         |        
|Fair value of plan assets as of January 1        |                                             | $                | 47,773  |                |      |                         | 44,305  |        |   | $ | 114,394 |         |   |      | 23,059  |         |      |   |         |         |   |  |         |        
|Actual return on plan assets                     |                                             |                  | 2,643   |                |      |                         | 4,733   |        |   |   | 17,760  |         |   |      | 8,270   |         |      |   |         |         |   |  |         |        
|Acquisitions                                     |                                             |                  | 9,003   |                |      |                         |        |        |   |   | 1,207   |         |   |      | 76,015  |         |      |   |         |         |   |  |         |        
|Employer contributions                           |                                             |                  | 2,278   |                |      |                         | 3,201   |        |   |   | 4,213   |         |   |      | 3,394   |         |      |   |         |         |   |  |         |        
|Employee contributions                           |                                             |                  |        |                |      |                         |        |        |   |   | 988     |         |   |      | 1,065   |         |      |   |         |         |   |  |         |        
|Benefit payments                                 |                                             |                  | (4,867  | )              |      |                         | (4,466  | )      |   |   | (3,534  | )       |   |      | (3,403  | )       |      |   |         |         |   |  |         |        
|Effect of foreign currency exchange rate changes |                                             |                  |        |                |      |                         |        |        |   |   | (12,951 | )       |   |      | 5,994   |         |      |   |         |         |   |  |         |        
|                                                 |                                             |                  |         |                |      |                         |         |       
|                                                 | Fair value of plan assets as of December 31 |                  | $       | 56,830         |      |                         |         | 47,773 |   |   | $       | 122,077 |   |      |         | 114,394 |      |   |         |         |   |  |         |         |  
|                                                 |                                             |                  |         |                |      |                         |         |       
|Funded status                                    |                                             |                  |         |                |      |                         |         |        |   |   |         |         |   |      |         |         |      |   |         |         |   |  |         |        
|Funded status as of December 31                  |                                             | $                | (18,079 | )              |      |                         | (12,896 | )      |   | $ | (60,215 | )       |   |      | (36,089 | )       |      | $ | (31,026 | )       |   |  | (25,493 | )      
|Unrecognized transition liability                |                                             |                  |        |                |      |                         | 4       |        |   |   |        |         |   |      |        |         |      |   |        |         |   |  | 742     |        
|Unrecognized prior-service cost                  |                                             |                  | (314    | )              |      |                         | (451    | )      |   |   |        |         |   |      |        |         |      |   | (492    | )       |   |  | (730    | )      
|Unrecognized loss (gain)                         |                                             |                  | 12,470  |                |      |                         | 8,911   |        |   |   | 23,270  |         |   |      | 7,343   |         |      |   | (2,323  | )       |   |  | (7,723  | )      
|                                                 |                                             |                 
|                                                 | Accrued benefit liability                   |                  | $       | (5,923         | )    |                         |         | (4,432 | ) |   | $       | (36,945 | ) |      |         | (28,746 | )    |   | $       | (33,841 | ) |  |         | (33,204 | )
|                                                 |                                             |                 



|                                            |                                                                  |      |         |         |      |  |         |         |  
|------------------------------------------- | ---------------------------------------------------------------- | ---- | ------- | ------- | ---- |  | ------- | ------- | -
|                                            |                                                                  | 2005 |         |         | 2004 | 
|                                            |                                                                 
|Deferred income taxes                       |                                                                  | $    | 5,890   |         |      |  | 3,438   |        
|Accounts payable and accrued liabilities    |                                                                  |      | (2,454  | )       |      |  | (2,966  | )      
|Postretirement benefits other than pensions |                                                                  |      | (31,387 | )       |      |  | (30,503 | )      
|Other liabilities                           |                                                                  |      | (58,139 | )       |      |  | (41,926 | )      
|Accumulated other comprehensive income      |                                                                  |      | 9,628   |         |      |  | 5,575   |        
|                                           
|                                            | Total pension and other postretirement accrued benefit liability |      | $       | (76,462 | )    |  |         | (66,382 | )
|                                           

52



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##### 



Non-U.S.


|                                                                                                                   |  |            |       |                |      |   |     |      |  |   |       |  |  |   |     | 
|------------------------------------------------------------------------------------------------------------------ |  | ---------- | ----- | -------------- | ---- | - | --- | ---- |  | - | ----- |  |  | - | --- | 
|                                                                                                                   |  | U.S. Plans |       | Non-U.S. Plans
|                                                                                                                   |  |            |       |                |      |  
|                                                                                                                   |  | 2005       |       |                | 2004 |   |     | 2005 |  |   | 2004  | 
|                                                                                                                   | 
|Increase (decrease) in additional minimum pension liability
    included in accumulated other comprehensive income |  | $          | 3,892 |                |      | $ | (61 | )    |  | $ | 2,613 |  |  | $ | 623 | 
|                                                                                                                  





|                               |  |              |        |                |      |  |        |      |  |   |         |  |  |  |         | 
|------------------------------ |  | ------------ | ------ | -------------- | ---- |  | ------ | ---- |  | - | ------- |  |  |  | ------- | 
|                               |  | December 31,
|                               |  |              |       
|                               |  | U.S. Plans   |        | Non-U.S. Plans
|                               |  |              |        |                |      | 
|                               |  | 2005         |        |                | 2004 |  |        | 2005 |  |   | 2004    | 
|                               | 
|Projected benefit obligation   |  | $            | 74,909 |                |      |  | 60,669 |      |  | $ | 182,292 |  |  |  | 139,861 | 
|Accumulated benefit obligation |  |              | 74,734 |                |      |  | 60,562 |      |  |   | 155,202 |  |  |  | 119,094 | 
|Fair value of plan assets      |  |              | 56,830 |                |      |  | 47,773 |      |  |   | 122,077 |  |  |  | 104,629 | 
|                              

non-U.S.


53



---



##### 





|                                                                                             |                                 |                  |        |                |      |                         |        |       |  |  |        |       |  |      |        |       |      |  |        |       |  |  |        |       |  |      |       |     |  |  |       |     |  |  |       |     | 
|-------------------------------------------------------------------------------------------- | ------------------------------- | ---------------- | ------ | -------------- | ---- | ----------------------- | ------ | ----- |  |  | ------ | ----- |  | ---- | ------ | ----- | ---- |  | ------ | ----- |  |  | ------ | ----- |  | ---- | ----- | --- |  |  | ----- | --- |  |  | ----- | --- | 
|                                                                                             |                                 | Pension Benefits |        |                |      |                         |        |      
|                                                                                             |                                 |                  |        |                |     
|                                                                                             |                                 |                  |        |                |      | Other                  
|                                                                                             |                                 | U.S. Plans       |        | Non-U.S. Plans |      | Postretirement Benefits
|                                                                                             |                                 |                  |        |                |      |                         |        |       | 
|                                                                                             |                                 | 2005             |        |                | 2004 |                         |        | 2003  |  |  | 2005   |       |  | 2004 |        |       | 2003 |  |        | 2005  |  |  | 2004   |       |  | 2003 |      
|                                                                                             |                                
|Service cost                                                                                 |                                 | $                | 2,996  |                |      |                         | 2,119  |       |  |  | 1,988  |       |  | $    | 4,298  |       |      |  | 4,187  |       |  |  | 1,529  |       |  | $    | 83    |     |  |  | 16    |     |  |  | 12    |    
|Interest cost                                                                                |                                 |                  | 3,731  |                |      |                         | 3,356  |       |  |  | 3,430  |       |  |      | 7,824  |       |      |  | 6,413  |       |  |  | 1,416  |       |  |      | 1,507 |     |  |  | 1,649 |     |  |  | 1,685 |    
|Expected return on plan assets                                                               |                                 |                  | (4,489 | )              |      |                         | (3,701 | )     |  |  | (3,269 | )     |  |      | (8,251 | )     |      |  | (6,853 | )     |  |  | (1,474 | )     |  |      |      |     |  |  |      |     |  |  |      |    
|Amortization of transition liability                                                         |                                 |                  | 4      |                |      |                         | 5      |       |  |  | 5      |       |  |      |       |       |      |  |       |       |  |  |       |       |  |      |      |     |  |  | 25    |     |  |  |      |    
|Amortization of prior-service cost                                                           |                                 |                  | (82    | )              |      |                         | (86    | )     |  |  | (86    | )     |  |      |       |       |      |  |       |       |  |  |       |       |  |      | (106  | )   |  |  | (156  | )   |  |  | (606  | )  
|Amortization of net loss (gain)                                                              |                                 |                  | 223    |                |      |                         | 255    |       |  |  | 439    |       |  |      | 197    |       |      |  | 211    |       |  |  | 211    |       |  |      | (744  | )   |  |  | (559  | )   |  |  | (958  | )  
|                                                                                            
|                                                                                             | Net periodic benefit cost       |                  |        | 2,383          |      |                         |        | 1,948 |  |  |        | 2,507 |  |      |        | 4,068 |      |  |        | 3,958 |  |  |        | 1,682 |  |      | $     | 740 |  |  |       | 975 |  |  |       | 133 | 
|                                                                                            
|SFAS No. 88 (gain)/loss due to settlements or
    curtailments special termination benefits |                                 |                  |       |                |      |                         |       |       |  |  |       |       |  |      | 291    |       |      |  |       |       |  |  |       |       |  |      |       |     |  |  |       |     |  |  |       |    
|                                                                                             |                                 |                  |        |                |      |                         |        |       |  |  |        |      
|                                                                                             | Total periodic cost recognition |                  |        | 2,383          |      |                         |        | 1,948 |  |  |        | 2,507 |  |      |        | 4,359 |      |  |        | 3,958 |  |  |        | 1,682 |  |      |       |     |  |  |       |     |  |  |       |     | 
|                                                                                             |                                 |                  |        |                |      |                         |        |       |  |  |        |      
|Defined contribution plans                                                                   |                                 |                  | 6,686  |                |      |                         | 3,021  |       |  |  | 2,548  |       |  |      | 3,348  |       |      |  | 1,677  |       |  |  | 1,378  |       |  |      |       |     |  |  |       |     |  |  |       |    
|                                                                                             |                                 |                  |        |                |      |                         |        |       |  |  |        |      
|                                                                                             | Total retirement expense        |                  | $      | 9,069          |      |                         |        | 4,969 |  |  |        | 5,055 |  |      | $      | 7,707 |      |  |        | 5,635 |  |  |        | 3,060 |  |      |       |     |  |  |       |     |  |  |       |     | 
|                                                                                             |                                 |                  |        |                |      |                         |        |       |  |  |        |      



|                                                 |  |                  |     |                |      |                         |     |      |  |  |      |   |  |      |     |   |      |  |     |      |  |  |      |   |  |      |     |   |  |  |     |   |  |  |     |  
|------------------------------------------------ |  | ---------------- | --- | -------------- | ---- | ----------------------- | --- | ---- |  |  | ---- | - |  | ---- | --- | - | ---- |  | --- | ---- |  |  | ---- | - |  | ---- | --- | - |  |  | --- | - |  |  | --- | -
|                                                 |  | Pension Benefits |     |                |      |                         |     |     
|                                                 |  |                  |     |                |     
|                                                 |  |                  |     |                |      | Other                  
|                                                 |  | U.S. Plans       |     | Non-U.S. Plans |      | Postretirement Benefits
|                                                 |  |                  |     |                |      |                         |     |      | 
|                                                 |  | 2005             |     |                | 2004 |                         |     | 2003 |  |  | 2005 |   |  | 2004 |     |   | 2003 |  |     | 2005 |  |  | 2004 |   |  | 2003 |    
|                                                 | 
|Discount rate                                    |  |                  | 6.0 | %              |      |                         | 6.3 | %    |  |  | 6.8  | % |  |      | 5.3 | % |      |  | 5.5 | %    |  |  | 5.6  | % |  |      | 6.0 | % |  |  | 6.3 | % |  |  | 6.8 | %
|Expected long-term rate of return on plan assets |  |                  | 8.9 | %              |      |                         | 9.0 | %    |  |  | 9.0  | % |  |      | 7.5 | % |      |  | 7.6 | %    |  |  | 8.3  | % |  |      | N/A |   |  |  | N/A |   |  |  | N/A |  
|Rate of compensation increases                   |  |                  | 5.0 | %              |      |                         | 5.0 | %    |  |  | 5.0  | % |  |      | 3.4 | % |      |  | 3.4 | %    |  |  | 3.3  | % |  |      | N/A |   |  |  | N/A |   |  |  | N/A |  
|                                                



|                               |  |                  |     |                |      |                         |     |      |  |  |      |   |  |      |     |   |      |  |     |      |  |  |      |   |  |      |     |   |  |  |     |   |  |  |     |  
|------------------------------ |  | ---------------- | --- | -------------- | ---- | ----------------------- | --- | ---- |  |  | ---- | - |  | ---- | --- | - | ---- |  | --- | ---- |  |  | ---- | - |  | ---- | --- | - |  |  | --- | - |  |  | --- | -
|                               |  | Pension Benefits |     |                |      |                         |     |     
|                               |  |                  |     |                |     
|                               |  |                  |     |                |      | Other                  
|                               |  | U.S. Plans       |     | Non-U.S. Plans |      | Postretirement Benefits
|                               |  |                  |     |                |      |                         |     |      | 
|                               |  | 2005             |     |                | 2004 |                         |     | 2003 |  |  | 2005 |   |  | 2004 |     |   | 2003 |  |     | 2005 |  |  | 2004 |   |  | 2003 |    
|                               | 
|Discount rate                  |  |                  | 5.6 | %              |      |                         | 6.0 | %    |  |  | 6.3  | % |  |      | 4.6 | % |      |  | 5.4 | %    |  |  | 5.5  | % |  |      | 5.6 | % |  |  | 6.0 | % |  |  | 6.3 | %
|Rate of compensation increases |  |                  | 5.0 | %              |      |                         | 5.0 | %    |  |  | 5.0  | % |  |      | 3.4 | % |      |  | 3.4 | %    |  |  | 3.5  | % |  |      | N/A |   |  |  | N/A |   |  |  | N/A |  
|                              

54



---



##### 





|                                                                                      |  |              |      |   |      |  |      |      |  |  |      |  
|------------------------------------------------------------------------------------- |  | ------------ | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
|                                                                                      |  | December 31,
|                                                                                      |  |              |     
|                                                                                      |  | 2005         |      |   | 2004 |  |      | 2003 | 
|                                                                                      | 
|Healthcare cost trend rate assumed for next year                                      |  |              | 11.8 | % |      |  | 7.9  | %    |  |  | 8.4  | %
|Rate to which the cost trend rate is assumed to decline (the
    ultimate trend rate) |  |              | 5.0  | % |      |  | 5.0  | %    |  |  | 5.0  | %
|Year that the rate reaches the ultimate trend rate                                    |  |              | 2013 |   |      |  | 2010 |      |  |  | 2010 |  
|                                                                                     



|                                                                                                               |  |                   |       |  |             |   |        |  
|-------------------------------------------------------------------------------------------------------------- |  | ----------------- | ----- |  | ----------- | - | ------ | -
|                                                                                                               |  | December 31, 2005
|                                                                                                               |  |                   |      
|                                                                                                               |  | 1% Increase       |       |  | 1% Decrease |  
|                                                                                                               | 
|Effect on total of service and interest cost components of net
    periodic benefit cost - increase (decrease) |  | $                 | 120   |  |             | $ | (106   | )
|Effect on the postretirement benefit obligation - increase
    (decrease)                                      |  |                   | 2,286 |  |             |   | (2,013 | )
|                                                                                                              



non-U.S.


|                    |  |                  |        |  |                |   |        |                         |  |   |        | 
|------------------- |  | ---------------- | ------ |  | -------------- | - | ------ | ----------------------- |  | - | ------ | 
|                    |  | Pension Benefits |        | 
|                    |  |                  |        |  | Other          |  
|                    |  | U.S. Plans       |        |  | Non-U.S. Plans |   |        | Postretirement Benefits | 
|                    | 
|2006                |  | $                | 6,256  |  |                | $ | 3,040  |                         |  | $ | 2,459  | 
|2007                |  |                  | 5,708  |  |                |   | 3,460  |                         |  |   | 2,578  | 
|2008                |  |                  | 5,736  |  |                |   | 3,535  |                         |  |   | 2,670  | 
|2009                |  |                  | 5,623  |  |                |   | 3,976  |                         |  |   | 2,718  | 
|2010                |  |                  | 6,378  |  |                |   | 4,440  |                         |  |   | 2,765  | 
|Aggregate 2011-2015 |  |                  | 30,848 |  |                |   | 28,634 |                         |  |   | 13,359 | 
|                   

non-U.S.


|                  |       |            |    |                |      |  |    |        |         |  |      |     |   |      |    |     |        |  |    |     |   |  |    |     |  
|----------------- | ----- | ---------- | -- | -------------- | ---- |  | -- | ------ | ------- |  | ---- | --- | - | ---- | -- | --- | ------ |  | -- | --- | - |  | -- | --- | -
|                  |       | U.S. Plans |    | Non-U.S. Plans
|                  |       |            |    |                |      | 
|                  |       |            |    | Current        |      |  |    |        | Current | 
|                  |       | 2005       |    |                | 2004 |  |    | Target |         |  | 2005 |     |   | 2004 |    |     | Target | 
|                  |      
|Asset category:   |       |            |    |                |      |  |    |        |         |  |      |     |   |      |    |     |        |  |    |     |   |  |    |    
|Equity securities |       |            | 69 | %              |      |  | 70 | %      |         |  | 69   | %   |   |      | 60 | %   |        |  | 65 | %   |   |  | 59 | %  
|Debt securities   |       |            | 31 | %              |      |  | 28 | %      |         |  | 31   | %   |   |      | 29 | %   |        |  | 26 | %   |   |  | 40 | %  
|Other             |       |            |   |                |      |  | 2  | %      |         |  |     |     |   |      | 11 | %   |        |  | 9  | %   |   |  | 1  | %  
|                 
|                  | Total |            |    | 100            | %    |  |    | 100    | %       |  |      | 100 | % |      |    | 100 | %      |  |    | 100 | % |  |    | 100 | %
|                 



55



---



##### 



Note 10: Stockholders Equity and Earnings Per
Share






|                            |                                         |                                                                 |   |        |           |      |  |            |            |  |        |      |      |           |   |        |        |  |  |            |            |  |           |      |      |       |   |        |        |  |  |            |            |  |   |      |      | 
|--------------------------- | --------------------------------------- | --------------------------------------------------------------- | - | ------ | --------- | ---- |  | ---------- | ---------- |  | ------ | ---- | ---- | --------- | - | ------ | ------ |  |  | ---------- | ---------- |  | --------- | ---- | ---- | ----- | - | ------ | ------ |  |  | ---------- | ---------- |  | - | ---- | ---- | 
|                            |                                         | 2005                                                            |   | 2004   |           | 2003
|                            |                                         |                                                                 |   |        |           |      |  |            |           
|                            |                                         |                                                                 |   | Amt.   |           |      |  |            | Amt.       |  |        |      |      | Amt.      |  
|                            |                                         | Net                                                             |   |        | Wtd. Avg. |      |  | Per        |            |  | Net    |      |      | Wtd. Avg. |   |        | Per    |  |  | Net        |            |  | Wtd. Avg. |      |      | Per   |  
|                            |                                         | Income                                                          |   |        | Shares    |      |  | Share      |            |  | Income |      |      | Shares    |   |        | Share  |  |  | Income     |            |  | Shares    |      |      | Share |  
|                            |                                         |                                                                 |   |        |           |      |  |            |            |  |        |      |      |           |   |        |        |  |  |            |            |  |           |      |      |       |  
|Basic earnings per share:   |                                         |                                                                 |   |        |           |      |  |            |            |  |        |      |      |           |   |        |        |  |  |            |            |  |           |      |      |       |   |        |        |  |  |            |            |  |   |     
|                            | Income available to common stockholders |                                                                 | $ | 66,951 |           |      |  | 23,913,754 |            |  | $      | 2.80 |      |           | $ | 37,123 |        |  |  | 18,954,841 |            |  | $         | 1.96 |      |       | $ | 20,643 |        |  |  | 16,060,979 |            |  | $ | 1.29 |     
|Diluted earnings per share: |                                         |                                                                 |   |        |           |      |  |            |            |  |        |      |      |           |   |        |        |  |  |            |            |  |           |      |      |       |   |        |        |  |  |            |            |  |   |     
|                            | Effect of dilutive securities:          |                                                                 |   |        |           |      |  |            |            |  |        |      |      |           |   |        |        |  |  |            |            |  |           |      |      |       |   |        |        |  |  |            |            |  |   |      |     
|                            |                                         | Stock options granted and outstanding                           |   |        |           |      |  |            | 541,358    |  |        |      |      |           |   |        |        |  |  |            | 422,639    |  |           |      |      |       |   |        |        |  |  |            | 251,189    |  |   |      |      | 
|                           
|                            |                                         | Income available to common stockholders and assumed conversions |   | $      | 66,951    |      |  |            | 24,445,112 |  |        | $    | 2.74 |           |   | $      | 37,123 |  |  |            | 19,377,480 |  |           | $    | 1.92 |       |   | $      | 20,643 |  |  |            | 16,312,168 |  |   | $    | 1.27 | 
|                           



Note 11: Income Taxes




|                           |  |      |        |  |      |  |        |      |  |  |        | 
|-------------------------- |  | ---- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                           |  | 2005 |        |  | 2004 |  |        | 2003 | 
|                           | 
|U. S.                      |  | $    | 30,098 |  |      |  | 26,934 |      |  |  | 23,913 | 
|Non-U.S.                   |  |      | 65,546 |  |      |  | 25,352 |      |  |  | 6,445  | 
|                          
|Income before income taxes |  | $    | 95,644 |  |      |  | 52,286 |      |  |  | 30,358 | 
|                          

56



---



##### 





|                           |                      |      |        |        |      |  |        |       |   |  |       |       | 
|-------------------------- | -------------------- | ---- | ------ | ------ | ---- |  | ------ | ----- | - |  | ----- | ----- | 
|                           |                      | 2005 |        |        | 2004 |  |        | 2003  |  
|                           |                     
|Current:                   |                      |      |        |        |      |  |        |       |   |  |       |      
|                           | U.S. federal         |      | $      | 7,079  |      |  |        | 8,458 |   |  |       | 2,977 | 
|                           | U.S. state and local |      |        | 1,161  |      |  |        | 692   |   |  |       | 340   | 
|                           | Non-U.S.             |      |        | 18,457 |      |  |        | 6,584 |   |  |       | 611   | 
|Deferred:                  |                      |      |        |        |      |  |        |       |   |  |       |      
|                           | U.S. federal         |      |        | 2,503  |      |  |        | (513  | ) |  |       | 4,753 | 
|                           | U.S. state and local |      |        | 215    |      |  |        | (44   | ) |  |       | 543   | 
|                           | Non-U.S.             |      |        | (722   | )    |  |        | (14   | ) |  |       | 491   | 
|                          
|Provision for income taxes |                      | $    | 28,693 |        |      |  | 15,163 |       |   |  | 9,715 |      
|                          



|                                                |  |      |      |   |      |  |      |      |  |  |      |  
|----------------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
|                                                |  | 2005 |      |   | 2004 |  |      | 2003 | 
|                                                | 
|U.S. federal corporate statutory rate           |  |      | 35.0 | % |      |  | 35.0 | %    |  |  | 35.0 | %
|State and local taxes, less federal tax benefit |  |      | 1.4  |   |      |  | 1.2  |      |  |  | 2.6  |  
|Foreign income taxes                            |  |      | (5.4 | ) |      |  | (4.4 | )    |  |  |     |  
|Export benefit                                  |  |      | (1.1 | ) |      |  | (2.5 | )    |  |  | (3.0 | )
|American Jobs Creation Act Dividend             |  |      | 0.9  |   |      |  |     |      |  |  |     |  
|Other, net                                      |  |      | (0.8 | ) |      |  | (0.3 | )    |  |  | (2.6 | )
|                                               
|Effective income tax rate                       |  |      | 30.0 | % |      |  | 29.0 | %    |  |  | 32.0 | %
|                                               



|                                  |                                             |      |          |         |      |  |         |         |  
|--------------------------------- | ------------------------------------------- | ---- | -------- | ------- | ---- |  | ------- | ------- | -
|                                  |                                             | 2005 |          |         | 2004 | 
|                                  |                                            
|Deferred tax assets:              |                                             |      |          |         |      |  |         |        
|                                  | Reserves and accruals                       |      | $        | 34,131  |      |  |         | 31,971  |  
|                                  | Postretirement benefits other than pensions |      |          | 12,239  |      |  |         | 12,491  |  
|                                  | Tax loss carryforwards                      |      |          | 9,702   |      |  |         | 7,123   |  
|                                  | Foreign tax credit carryforwards            |      |          |        |      |  |         | 852     |  
|                                  | Other                                       |      |          | 7,902   |      |  |         | 4,729   |  
|                                 
|Total deferred tax assets         |                                             |      | 63,974   |         |      |  | 57,166  |        
|Valuation allowance               |                                             |      | (5,778   | )       |      |  | (4,705  | )      
|                                 
|Deferred tax liabilities:         |                                             |      |          |         |      |  |         |        
|                                  | LIFO inventory                              |      |          | (5,095  | )    |  |         | (3,766  | )
|                                  | Property, plant and equipment               |      |          | (30,097 | )    |  |         | (10,395 | )
|                                  | Intangibles                                 |      |          | (63,238 | )    |  |         | (42,248 | )
|                                  | Other                                       |      |          | (20,183 | )    |  |         | (7,911  | )
|                                 
|Total deferred tax liabilities    |                                             |      | (118,613 | )       |      |  | (64,320 | )      
|                                 
|Net deferred income tax liability |                                             | $    | (60,417  | )       |      |  | (11,859 | )      
|                                 



57



---



##### 



non-U.S.






Note 12: Stock-Based Compensation Plans












58



---



##### 











|                                       |  |         |       |      |        |      |         |       |  |   |        |         |  |       |       |   |        |   |       |  |  |  |       |  
|-------------------------------------- |  | ------- | ----- | ---- | ------ | ---- | ------- | ----- |  | - | ------ | ------- |  | ----- | ----- | - | ------ | - | ----- |  |  |  | ----- | -
|                                       |  | 2005    |       | 2004 |        | 2003
|                                       |  |         |       |      |        |      |         |       | 
|                                       |  | Average |       |      |        |      | Average |       |  |   |        | Average |  |       |      
|                                       |  | Price   |       |      | Shares |      |         | Price |  |   | Shares |         |  | Price |       |   | Shares |  
|                                       | 
|Options outstanding, beginning of year |  | $       | 19.67 |      |        |      | 1,403   |       |  | $ | 17.54  |         |  |       | 1,367 |   |        | $ | 17.56 |  |  |  | 1,144 |  
|Options granted                        |  |         | 39.95 |      |        |      | 302     |       |  |   | 28.46  |         |  |       | 263   |   |        |   | 17.89 |  |  |  | 264   |  
|Options exercised                      |  |         | 15.16 |      |        |      | (313    | )     |  |   | 16.83  |         |  |       | (217  | ) |        |   | 15.25 |  |  |  | (13   | )
|Options canceled                       |  |         | 32.11 |      |        |      | (59     | )     |  |   | 20.94  |         |  |       | (10   | ) |        |   | 23.20 |  |  |  | (28   | )
|                                      
|Options outstanding, end of year       |  |         | 24.78 |      |        |      | 1,333   |       |  |   | 19.67  |         |  |       | 1,403 |   |        |   | 17.54 |  |  |  | 1,367 |  
|                                      
|Options exercisable, end of year       |  | $       | 19.90 |      |        |      | 863     |       |  | $ | 17.55  |         |  |       | 934   |   |        | $ | 17.07 |  |  |  | 940   |  
|                                      



|                 |  |             |       |             |                  |  |         |       |  |   |        |         |  |       |     |  |  |   |       | 
|---------------- |  | ----------- | ----- | ----------- | ---------------- |  | ------- | ----- |  | - | ------ | ------- |  | ----- | --- |  |  | - | ----- | 
|                 |  | Outstanding |       | Exercisable
|                 |  |             |       |             |                  | 
|                 |  |             |       | Average     |                  |  |         |       | 
|Range of         |  |             |       | Remaining   |                  |  | Average |       |  |   |        | Average | 
|Exercise Prices  |  | Shares      |       |             | Contractual Life |  |         | Price |  |   | Shares |         |  | Price |    
|                 | 
|$5.00 to $10.00  |  |             | 29    |             |                  |  | 0.4     |       |  | $ | 8.71   |         |  |       | 29  |  |  | $ | 8.71  | 
|$10.01 to $15.00 |  |             | 119   |             |                  |  | 3.2     |       |  | $ | 12.66  |         |  |       | 119 |  |  | $ | 12.66 | 
|$15.01 to $20.00 |  |             | 531   |             |                  |  | 5.5     |       |  | $ | 18.57  |         |  |       | 467 |  |  | $ | 18.69 | 
|$20.01 to $30.00 |  |             | 378   |             |                  |  | 3.9     |       |  | $ | 27.54  |         |  |       | 247 |  |  | $ | 26.95 | 
|$30.01 to $40.00 |  |             | 32    |             |                  |  | 4.3     |       |  | $ | 37.99  |         |  |       |    |  |  | $ |      | 
|$40.01 to $50.00 |  |             | 244   |             |                  |  | 6.1     |       |  | $ | 40.18  |         |  |       | 1   |  |  | $ | 40.18 | 
|                
|Total            |  |             | 1,333 |             |                  |  | 4.8     |       |  | $ | 24.78  |         |  |       | 863 |  |  | $ | 19.90 | 
|                

Note 13: Off-Balance Sheet Risk, Concentrations of
Credit Risk and Fair Value of Financial Instruments


Off-Balance Sheet Risk and Concentrations of Credit Risk






59



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##### 





Fair Value of Financial Instruments










|                          |  |          |         |         |         |  |         |      |  |  |       |   |  |          |       |   |         |  |         |      |  |  |       |   |  |  |     |   |  |  |      |  
|------------------------- |  | -------- | ------- | ------- | ------- |  | ------- | ---- |  |  | ----- | - |  | -------- | ----- | - | ------- |  | ------- | ---- |  |  | ----- | - |  |  | --- | - |  |  | ---- | -
|                          |  | 2005     |         | 2004   
|                          |  |          |         |         |         | 
|                          |  |          |         | Average |         |  | Average |      |  |  |       |   |  | Average  |       |   | Average |  |         |     
|                          |  | Notional |         |         | Receive |  |         | Pay  |  |  | Fair  |   |  | Notional |       |   | Receive |  |         | Pay  |  |  | Fair  |  
|                          |  | Amount   |         |         | Rate    |  |         | Rate |  |  | Value |   |  | Amount   |       |   | Rate    |  |         | Rate |  |  | Value |  
|                          | 
|Foreign currency forwards |  | $        | 2,581   |         |         |  | N/A     |      |  |  | N/A   |   |  |          | (252  | ) |         |  | 6,129   |      |  |  | N/A   |   |  |  | N/A |   |  |  | (479 | )
|Interest rate swaps       |  | $        | 165,000 |         |         |  | 4.3     | %    |  |  | 3.8   | % |  |          | 3,376 |   |         |  | 125,317 |      |  |  | 2.2   | % |  |  | 3.4 | % |  |  | 304  |  
|                         

Note 14: Contingencies








60



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##### 









Note 15: Segment Information








61



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##### 











|                                |  |          |           |                    |      |                                 |         |      |  |  |         |  |  |      |         |   |      |  |         |      |  |  |        |   |  |      |           |  |  |  |           |  |  |  |         | 
|------------------------------- |  | -------- | --------- | ------------------ | ---- | ------------------------------- | ------- | ---- |  |  | ------- |  |  | ---- | ------- | - | ---- |  | ------- | ---- |  |  | ------ | - |  | ---- | --------- |  |  |  | --------- |  |  |  | ------- | 
|                                |  | Revenues |           | Operating Earnings |      | Identifiable Assets as of 12/31
|                                |  |          |           |                    |      |                                 |         |      | 
|                                |  | 2005     |           |                    | 2004 |                                 |         | 2003 |  |  | 2005    |  |  | 2004 |         |   | 2003 |  |         | 2005 |  |  | 2004   |   |  | 2003 |          
|                                | 
|Compressor and Vacuum Products  |  | $        | 999,631   |                    |      |                                 | 589,382 |      |  |  | 369,023 |  |  | $    | 86,402  |   |      |  | 46,681  |      |  |  | 27,792 |   |  | $    | 1,442,230 |  |  |  | 827,172   |  |  |  | 375,376 | 
|Fluid Transfer Products         |  |          | 214,921   |                    |      |                                 | 150,157 |      |  |  | 70,507  |  |  |      | 34,233  |   |      |  | 15,069  |      |  |  | 4,093  |   |  |      | 136,170   |  |  |  | 127,371   |  |  |  | 72,528  | 
|                                |  |         
|Total                           |  | $        | 1,214,552 |                    |      |                                 | 739,539 |      |  |  | 439,530 |  |  |      | 120,635 |   |      |  | 61,750  |      |  |  | 31,885 |   |  |      | 1,578,400 |  |  |  | 954,543   |  |  |  | 447,904 | 
|                                |  |          |           |                    |      |                                 |         |      |  |  |         |  |  |      |         |   |      |  |         |      |  |  |        |   |  |     
|Interest expense                |  |          |           |                    |      |                                 |         |      |  |  |         |  |  |      | (30,433 | ) |      |  | (10,102 | )    |  |  | (4,748 | ) |  |      |           |  |  |  |           |  |  |  |         | 
|Other income, net               |  |          |           |                    |      |                                 |         |      |  |  |         |  |  |      | 5,442   |   |      |  | 638     |      |  |  | 3,221  |   |  |      |           |  |  |  |           |  |  |  |         | 
|                               
|Income before income taxes      |  |          |           |                    |      |                                 |         |      |  |  |         |  |  | $    | 95,644  |   |      |  | 52,286  |      |  |  | 30,358 |   |  |      |           |  |  |  |           |  |  |  |         | 
|                                |  |          |           |                    |      |                                 |         |      |  |  |         |  |  |      |         |   |      |  |         |      |  |  |        |   |  |     
|General corporate (unallocated) |  |          |           |                    |      |                                 |         |      |  |  |         |  |  |      |         |   |      |  |         |      |  |  |        |   |  |      | 136,660   |  |  |  | 74,066    |  |  |  | 141,829 | 
|                                |  |          |           |                    |      |                                 |         |      |  |  |         |  |  |      |         |   |      |  |         |      |  |  |        |   |  |     
|Total assets                    |  |          |           |                    |      |                                 |         |      |  |  |         |  |  |      |         |   |      |  |         |      |  |  |        |   |  | $    | 1,715,060 |  |  |  | 1,028,609 |  |  |  | 589,733 | 
|                                |  |          |           |                    |      |                                 |         |      |  |  |         |  |  |      |         |   |      |  |         |      |  |  |        |   |  |     

|                               |  |                  |   |                      |                  |                      |     |      |  |  |      |  |  |      |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        |  |  |  |        | 
|------------------------------ |  | ---------------- | - | -------------------- | ---------------- | -------------------- | --- | ---- |  |  | ---- |  |  | ---- | ------ |  | ---- |  | ------ | ---- |  |  | ------ |  |  | ---- | ------ |  |  |  | ------ |  |  |  | ------ | 
|                               |  | LIFO Liquidation |   |                      | Depreciation and |                      |     |     
|                               |  | Income           |   | Amortization Expense |                  | Capital Expenditures
|                               |  |                  |   |                      |                  |                      |     |      | 
|                               |  | 2005             |   |                      | 2004             |                      |     | 2003 |  |  | 2005 |  |  | 2004 |        |  | 2003 |  |        | 2005 |  |  | 2004   |  |  | 2003 |       
|                               | 
|Compressor and Vacuum Products |  | $                |  |                      |                  |                      | 132 |      |  |  | 316  |  |  | $    | 34,388 |  |      |  | 17,902 |      |  |  | 11,739 |  |  | $    | 30,919 |  |  |  | 16,367 |  |  |  | 8,864  | 
|Fluid Transfer Products        |  |                  |  |                      |                  |                      |    |      |  |  | 50   |  |  |      | 3,934  |  |      |  | 3,999  |      |  |  | 2,827  |  |  |      | 4,599  |  |  |  | 3,183  |  |  |  | 3,086  | 
|                              
|Total                          |  | $                |  |                      |                  |                      | 132 |      |  |  | 366  |  |  | $    | 38,322 |  |      |  | 21,901 |      |  |  | 14,566 |  |  | $    | 35,518 |  |  |  | 19,550 |  |  |  | 11,950 | 
|                              

|              |  |          |           |                               |      |  |         |      |  |  |         |  |  |      |         |  |      |  |         |  |  |  |        | 
|------------- |  | -------- | --------- | ----------------------------- | ---- |  | ------- | ---- |  |  | ------- |  |  | ---- | ------- |  | ---- |  | ------- |  |  |  | ------ | 
|              |  |          |           | Property, Plant and Equipment |     
|              |  | Revenues |           | at December 31,              
|              |  |          |           |                               |      | 
|              |  | 2005     |           |                               | 2004 |  |         | 2003 |  |  | 2005    |  |  | 2004 |         |  | 2003 | 
|              | 
|United States |  | $        | 495,282   |                               |      |  | 327,551 |      |  |  | 253,592 |  |  | $    | 135,929 |  |      |  | 71,026  |  |  |  | 58,581 | 
|Europe        |  |          | 418,165   |                               |      |  | 237,775 |      |  |  | 97,198  |  |  |      | 130,061 |  |      |  | 70,055  |  |  |  | 16,686 | 
|Asia          |  |          | 167,273   |                               |      |  | 93,150  |      |  |  | 39,963  |  |  |      | 10,224  |  |      |  | 5,834   |  |  |  |       | 
|Canada        |  |          | 56,942    |                               |      |  | 37,564  |      |  |  | 26,972  |  |  |      | 141     |  |      |  | 263     |  |  |  | 90     | 
|Latin America |  |          | 43,169    |                               |      |  | 32,227  |      |  |  | 17,401  |  |  |      | 5,650   |  |      |  | 1,532   |  |  |  | 71     | 
|Other         |  |          | 33,721    |                               |      |  | 11,272  |      |  |  | 4,404   |  |  |      | 586     |  |      |  | 109     |  |  |  |       | 
|             
|Total         |  | $        | 1,214,552 |                               |      |  | 739,539 |      |  |  | 439,530 |  |  | $    | 282,591 |  |      |  | 148,819 |  |  |  | 75,428 | 
|             

62



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##### 



Note 16: Guarantor Subsidiaries




Consolidating Statement of Operations


Year Ended December 31, 2005


|                                  |                                     |         |         |              |   |               |         |              |   |              |         |         |  |   |         |         |   |   |           |         |  
|--------------------------------- | ----------------------------------- | ------- | ------- | ------------ | - | ------------- | ------- | ------------ | - | ------------ | ------- | ------- |  | - | ------- | ------- | - | - | --------- | ------- | -
|                                  |                                     | Parent  |         | Guarantor    |   | Non-Guarantor |         |              |   |             
|                                  |                                     | Company |         | Subsidiaries |   | Subsidiaries  |         | Eliminations |   | Consolidated
|                                 
|Revenues                          |                                     | $       | 342,873 |              |   | $             | 264,139 |              |   | $            | 637,692 |         |  | $ | (30,152 | )       |   | $ | 1,214,552 |        
|Costs and expenses:               |                                     |         |         |              |   |               |         |              |   |              |         |         |  |   |         |         |   |   |           |        
|                                  | Cost of sales                       |         |         | 237,376      |   |               |         | 190,570      |   |              |         | 416,867 |  |   |         | (31,586 | ) |   |           | 813,227 |  
|                                  | Depreciation and amortization       |         |         | 9,874        |   |               |         | 7,036        |   |              |         | 21,412  |  |   |         |        |   |   |           | 38,322  |  
|                                  | Selling and administrative expenses |         |         | 70,342       |   |               |         | 42,848       |   |              |         | 129,178 |  |   |         |        |   |   |           | 242,368 |  
|                                  | Interest expense                    |         |         | 29,211       |   |               |         |             |   |              |         | 1,222   |  |   |         |        |   |   |           | 30,433  |  
|                                  | Other expense (income), net         |         |         | (4,605       | ) |               |         | (3,751       | ) |              |         | 2,828   |  |   |         | 86      |   |   |           | (5,442  | )
|                                 
|Total costs and expenses          |                                     |         | 342,198 |              |   |               | 236,703 |              |   |              | 571,507 |         |  |   | (31,500 | )       |   |   | 1,118,908 |        
|                                 
|Income (loss) before income taxes |                                     |         | 675     |              |   |               | 27,436  |              |   |              | 66,185  |         |  |   | 1,348   |         |   |   | 95,644    |        
|Provision for income taxes        |                                     |         | 246     |              |   |               | 10,014  |              |   |              | 18,433  |         |  |   |        |         |   |   | 28,693    |        
|                                 
|Net income                        |                                     | $       | 429     |              |   | $             | 17,422  |              |   | $            | 47,752  |         |  | $ | 1,348   |         |   | $ | 66,951    |        
|                                 

Consolidating Statement of Operations


Year Ended December 31, 2004


|                                  |                                     |         |         |              |   |               |         |              |   |              |         |         |  |   |         |         |   |   |         |         |  
|--------------------------------- | ----------------------------------- | ------- | ------- | ------------ | - | ------------- | ------- | ------------ | - | ------------ | ------- | ------- |  | - | ------- | ------- | - | - | ------- | ------- | -
|                                  |                                     | Parent  |         | Guarantor    |   | Non-Guarantor |         |              |   |             
|                                  |                                     | Company |         | Subsidiaries |   | Subsidiaries  |         | Eliminations |   | Consolidated
|                                 
|Revenues                          |                                     | $       | 297,981 |              |   | $             | 109,596 |              |   | $            | 361,815 |         |  | $ | (29,853 | )       |   | $ | 739,539 |        
|Costs and expenses:               |                                     |         |         |              |   |               |         |              |   |              |         |         |  |   |         |         |   |   |         |        
|                                  | Cost of sales                       |         |         | 205,807      |   |               |         | 80,962       |   |              |         | 243,410 |  |   |         | (31,744 | ) |   |         | 498,435 |  
|                                  | Depreciation and amortization       |         |         | 9,587        |   |               |         | 2,450        |   |              |         | 9,864   |  |   |         |        |   |   |         | 21,901  |  
|                                  | Selling and administrative expenses |         |         | 61,321       |   |               |         | 16,080       |   |              |         | 80,052  |  |   |         |        |   |   |         | 157,453 |  
|                                  | Interest expense                    |         |         | 6,644        |   |               |         |             |   |              |         | 3,458   |  |   |         |        |   |   |         | 10,102  |  
|                                  | Other expense (income), net         |         |         | (2,291       | ) |               |         | (1,208       | ) |              |         | 2,061   |  |   |         | 800     |   |   |         | (638    | )
|                                 
|Total costs and expenses          |                                     |         | 281,068 |              |   |               | 98,284  |              |   |              | 338,845 |         |  |   | (30,944 | )       |   |   | 687,253 |        
|                                 
|Income (loss) before income taxes |                                     |         | 16,913  |              |   |               | 11,312  |              |   |              | 22,970  |         |  |   | 1,091   |         |   |   | 52,286  |        
|Provision for income taxes        |                                     |         | 5,395   |              |   |               | 3,608   |              |   |              | 6,160   |         |  |   |        |         |   |   | 15,163  |        
|                                 
|Net income                        |                                     | $       | 11,518  |              |   | $             | 7,704   |              |   | $            | 16,810  |         |  | $ | 1,091   |         |   | $ | 37,123  |        
|                                 

63



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##### 



Consolidating Statement of Operations


Year Ended December 31, 2003


|                                  |                                     |         |         |              |   |               |        |              |   |              |         |         |  |   |         |         |   |   |         |         |  
|--------------------------------- | ----------------------------------- | ------- | ------- | ------------ | - | ------------- | ------ | ------------ | - | ------------ | ------- | ------- |  | - | ------- | ------- | - | - | ------- | ------- | -
|                                  |                                     | Parent  |         | Guarantor    |   | Non-Guarantor |        |              |   |             
|                                  |                                     | Company |         | Subsidiaries |   | Subsidiaries  |        | Eliminations |   | Consolidated
|                                 
|Revenues                          |                                     | $       | 258,751 |              |   | $             | 58,813 |              |   | $            | 145,104 |         |  | $ | (23,138 | )       |   | $ | 439,530 |        
|Costs and expenses:               |                                     |         |         |              |   |               |        |              |   |              |         |         |  |   |         |         |   |   |         |        
|                                  | Cost of sales                       |         |         | 174,312      |   |               |        | 50,010       |   |              |         | 106,569 |  |   |         | (23,138 | ) |   |         | 307,753 |  
|                                  | Depreciation and amortization       |         |         | 9,709        |   |               |        | 1,884        |   |              |         | 2,973   |  |   |         |        |   |   |         | 14,566  |  
|                                  | Selling and administrative expenses |         |         | 52,227       |   |               |        | 6,885        |   |              |         | 26,214  |  |   |         |        |   |   |         | 85,326  |  
|                                  | Interest expense                    |         |         | 4,703        |   |               |        | 45           |   |              |         |        |  |   |         |        |   |   |         | 4,748   |  
|                                  | Other expense (income), net         |         |         | (5,273       | ) |               |        | (268         | ) |              |         | 2,320   |  |   |         |        |   |   |         | (3,221  | )
|                                 
|Total costs and expenses          |                                     |         | 235,678 |              |   |               | 58,556 |              |   |              | 138,076 |         |  |   | (23,138 | )       |   |   | 409,172 |        
|                                 
|Income (loss) before income taxes |                                     |         | 23,073  |              |   |               | 257    |              |   |              | 7,028   |         |  |   |        |         |   |   | 30,358  |        
|Provision for income taxes        |                                     |         | 8,306   |              |   |               | 93     |              |   |              | 1,316   |         |  |   |        |         |   |   | 9,715   |        
|                                 
|Net income                        |                                     | $       | 14,767  |              |   | $             | 164    |              |   | $            | 5,712   |         |  | $ |        |         |   | $ | 20,643  |        
|                                 

64



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##### 



Consolidating Balance Sheet


December 31, 2005


|                                     |                                                                |                                                |   |              |         |               |   |              |         |              |   |         |           |  |   |          |          |   |   |         |           | 
|------------------------------------ | -------------------------------------------------------------- | ---------------------------------------------- | - | ------------ | ------- | ------------- | - | ------------ | ------- | ------------ | - | ------- | --------- |  | - | -------- | -------- | - | - | ------- | --------- | 
|                                     |                                                                | Parent                                         |   | Guarantor    |         | Non-Guarantor |   |              |         |             
|                                     |                                                                | Company                                        |   | Subsidiaries |         | Subsidiaries  |   | Eliminations |         | Consolidated
|                                    
|Assets                               |                                                                |                                                |   |              |         |               |   |              |         |              |   |         |           |  |   |          |          |   |   |        
|Current assets:                      |                                                                |                                                |   |              |         |               |   |              |         |              |   |         |           |  |   |          |          |   |   |        
|                                     | Cash and equivalents                                           |                                                | $ | 5,557        |         |               | $ | (369         | )       |              | $ | 105,718 |           |  | $ |         |          |   | $ | 110,906 |          
|                                     | Accounts receivable, net                                       |                                                |   | 68,006       |         |               |   | 41,944       |         |              |   | 119,517 |           |  |   |         |          |   |   | 229,467 |          
|                                     | Inventories, net                                               |                                                |   | 35,684       |         |               |   | 54,867       |         |              |   | 114,009 |           |  |   | 2,766    |          |   |   | 207,326 |          
|                                     | Deferred income taxes                                          |                                                |   | 4,377        |         |               |   | 4,308        |         |              |   | 22,987  |           |  |   | (5,918   | )        |   |   | 25,754  |          
|                                     | Other current assets                                           |                                                |   | (716         | )       |               |   | 2,846        |         |              |   | 10,684  |           |  |   |         |          |   |   | 12,814  |          
|                                    
|                                     |                                                                | Total current assets                           |   |              | 112,908 |               |   |              | 103,596 |              |   |         | 372,915   |  |   |          | (3,152   | ) |   |         | 586,267   | 
|                                    
|                                     | Intercompany receivables (payable)                             |                                                |   | (68,284      | )       |               |   | 53,141       |         |              |   | 17,285  |           |  |   | (2,142   | )        |   |   |        |          
|                                     | Investments in affiliates                                      |                                                |   | 671,182      |         |               |   | 40,645       |         |              |   | 32      |           |  |   | (711,791 | )        |   |   | 68      |          
|                                     | Property, plant and equipment, net                             |                                                |   | 57,167       |         |               |   | 49,397       |         |              |   | 176,027 |           |  |   |         |          |   |   | 282,591 |          
|                                     | Goodwill                                                       |                                                |   | 113,441      |         |               |   | 144,864      |         |              |   | 361,939 |           |  |   |         |          |   |   | 620,244 |          
|                                     | Other intangibles, net                                         |                                                |   | 8,635        |         |               |   | 29,531       |         |              |   | 165,350 |           |  |   |         |          |   |   | 203,516 |          
|                                     | Other assets                                                   |                                                |   | 21,287       |         |               |   | (5,973       | )       |              |   | 5,503   |           |  |   | 1,557    |          |   |   | 22,374  |          
|                                    
|                                     |                                                                | Total assets                                   |   | $            | 916,336 |               |   | $            | 415,201 |              |   | $       | 1,099,051 |  |   | $        | (715,528 | ) |   | $       | 1,715,060 | 
|                                    
|                                    
|Liabilities and Stockholders Equity
|                                     | Short-term borrowings and current maturities of long-term debt |                                                | $ | 19,616       |         |               | $ |             |         |              | $ | 6,465   |           |  | $ |         |          |   | $ | 26,081  |          
|                                     | Accounts payable and accrued liabilities                       |                                                |   | 86,776       |         |               |   | 73,930       |         |              |   | 135,382 |           |  |   | (8,325   | )        |   |   | 287,763 |          
|                                    
|                                     |                                                                | Total current liabilities                      |   |              | 106,392 |               |   |              | 73,930  |              |   |         | 141,847   |  |   |          | (8,325   | ) |   |         | 313,844   | 
|                                    
|                                     | Long-term intercompany payable (receivable)                    |                                                |   | (207,110     | )       |               |   | (98,395      | )       |              |   | 319,587 |           |  |   | (14,082  | )        |   |   |        |          
|                                     | Long-term debt, less current maturities                        |                                                |   | 428,854      |         |               |   | 78           |         |              |   | 113,709 |           |  |   |         |          |   |   | 542,641 |          
|                                     | Postretirement benefits other than pensions                    |                                                |   | 28,668       |         |               |   | 2,243        |         |              |   | 476     |           |  |   |         |          |   |   | 31,387  |          
|                                     | Deferred income taxes                                          |                                                |   |             |         |               |   | 4,380        |         |              |   | 85,311  |           |  |   | (3,520   | )        |   |   | 86,171  |          
|                                     | Other liabilities                                              |                                                |   | 13,775       |         |               |   | 7,583        |         |              |   | 45,852  |           |  |   | 15,518   |          |   |   | 82,728  |          
|                                    
|                                     |                                                                | Total liabilities                              |   |              | 370,579 |               |   |              | (10,181 | )            |   |         | 706,782   |  |   |          | (10,409  | ) |   |         | 1,056,771 | 
|                                    
|                                    
|Stockholders equity:                |                                                                |                                                |   |              |         |               |   |              |         |              |   |         |           |  |   |          |          |   |   |        
|                                     | Common stock                                                   |                                                |   | 278          |         |               |   |             |         |              |   |        |           |  |   |         |          |   |   | 278     |          
|                                     | Capital in excess of par value                                 |                                                |   | 472,334      |         |               |   | 396,526      |         |              |   | 315,660 |           |  |   | (711,695 | )        |   |   | 472,825 |          
|                                     | Retained earnings                                              |                                                |   | 89,449       |         |               |   | 33,420       |         |              |   | 78,947  |           |  |   | 4,565    |          |   |   | 206,381 |          
|                                     | Accumulated other comprehensive income (loss)                  |                                                |   | 13,015       |         |               |   | (4,564       | )       |              |   | (2,338  | )         |  |   | 2,011    |          |   |   | 8,124   |          
|                                     | Treasury stock, at cost                                        |                                                |   | (29,319      | )       |               |   |             |         |              |   |        |           |  |   |         |          |   |   | (29,319 | )        
|                                    
|                                     |                                                                | Total stockholders equity                     |   |              | 545,757 |               |   |              | 425,382 |              |   |         | 392,269   |  |   |          | (705,119 | ) |   |         | 658,289   | 
|                                    
|                                     |                                                                | Total liabilities and stockholders
    equity |   | $            | 916,336 |               |   | $            | 415,201 |              |   | $       | 1,099,051 |  |   | $        | (715,528 | ) |   | $       | 1,715,060 | 
|                                    



65



---



##### 



Consolidating Balance Sheet


December 31, 2004


|                                     |                                                                |                                            |   |              |         |               |   |              |         |              |   |         |         |  |   |          |          |   |   |         |           | 
|------------------------------------ | -------------------------------------------------------------- | ------------------------------------------ | - | ------------ | ------- | ------------- | - | ------------ | ------- | ------------ | - | ------- | ------- |  | - | -------- | -------- | - | - | ------- | --------- | 
|                                     |                                                                | Parent                                     |   | Guarantor    |         | Non-Guarantor |   |              |         |             
|                                     |                                                                | Company                                    |   | Subsidiaries |         | Subsidiaries  |   | Eliminations |         | Consolidated
|                                    
|Assets                              
|Current assets:                      |                                                                |                                            |   |              |         |               |   |              |         |              |   |         |         |  |   |          |          |   |   |        
|                                     | Cash and equivalents                                           |                                            | $ | 2,857        |         |               | $ | 2,612        |         |              | $ | 59,132  |         |  | $ |         |          |   | $ | 64,601  |          
|                                     | Accounts receivable, net                                       |                                            |   | 59,038       |         |               |   | 22,007       |         |              |   | 82,882  |         |  |   |         |          |   |   | 163,927 |          
|                                     | Inventories, net                                               |                                            |   | 29,287       |         |               |   | 33,130       |         |              |   | 75,646  |         |  |   | 323      |          |   |   | 138,386 |          
|                                     | Deferred income taxes                                          |                                            |   | 4,674        |         |               |   | 353          |         |              |   | 4,438   |         |  |   |         |          |   |   | 9,465   |          
|                                     | Other current assets                                           |                                            |   | (405         | )       |               |   | 1,788        |         |              |   | 7,760   |         |  |   |         |          |   |   | 9,143   |          
|                                    
|                                     |                                                                | Total current assets                       |   |              | 95,451  |               |   |              | 59,890  |              |   |         | 229,858 |  |   |          | 323      |   |   |         | 385,522   | 
|                                    
|                                     | Intercompany receivables (payable)                             |                                            |   | (2,572       | )       |               |   | 9,944        |         |              |   | (8,934  | )       |  |   | 1,562    |          |   |   |        |          
|                                     | Investments in affiliates                                      |                                            |   | 465,144      |         |               |   | 149,635      |         |              |   | 29      |         |  |   | (614,743 | )        |   |   | 65      |          
|                                     | Property, plant and equipment, net                             |                                            |   | 52,918       |         |               |   | 13,778       |         |              |   | 82,123  |         |  |   |         |          |   |   | 148,819 |          
|                                     | Goodwill                                                       |                                            |   | 113,523      |         |               |   | 68,254       |         |              |   | 192,382 |         |  |   |         |          |   |   | 374,159 |          
|                                     | Other intangibles, net                                         |                                            |   | 8,297        |         |               |   | 2,715        |         |              |   | 99,161  |         |  |   |         |          |   |   | 110,173 |          
|                                     | Other assets                                                   |                                            |   | 8,122        |         |               |   | (117         | )       |              |   | 2,351   |         |  |   | (485     | )        |   |   | 9,871   |          
|                                    
|                                     |                                                                | Total assets                               |   | $            | 740,883 |               |   | $            | 304,099 |              |   | $       | 596,970 |  |   | $        | (613,343 | ) |   | $       | 1,028,609 | 
|                                    
|                                    
|Liabilities and Stockholders Equity
|                                     | Short-term borrowings and current maturities of long-term debt |                                            | $ | 14,595       |         |               | $ |             |         |              | $ | 18,354  |         |  | $ |         |          |   | $ | 32,949  |          
|                                     | Accounts payable and accrued liabilities                       |                                            |   | 73,800       |         |               |   | 23,720       |         |              |   | 108,589 |         |  |   | (40      | )        |   |   | 206,069 |          
|                                    
|                                     |                                                                | Total current liabilities                  |   |              | 88,395  |               |   |              | 23,720  |              |   |         | 126,943 |  |   |          | (40      | ) |   |         | 239,018   | 
|                                    
|                                     | Long-term intercompany payable (receivable)                    |                                            |   | 11,021       |         |               |   | (28,279      | )       |              |   | 37,084  |         |  |   | (19,826  | )        |   |   |        |          
|                                     | Long-term debt, less current maturities                        |                                            |   | 265,165      |         |               |   |             |         |              |   | 15,091  |         |  |   |         |          |   |   | 280,256 |          
|                                     | Postretirement benefits other than pensions                    |                                            |   | 30,259       |         |               |   | 244          |         |              |   |        |         |  |   |         |          |   |   | 30,503  |          
|                                     | Deferred income taxes                                          |                                            |   |             |         |               |   | (10,396      | )       |              |   | 36,033  |         |  |   | (4,313   | )        |   |   | 21,324  |          
|                                     | Other liabilities                                              |                                            |   | 8,964        |         |               |   | 2,218        |         |              |   | 31,837  |         |  |   | 9,013    |          |   |   | 52,032  |          
|                                    
|                                     |                                                                | Total liabilities                          |   |              | 403,804 |               |   |              | (12,493 | )            |   |         | 246,988 |  |   |          | (15,166  | ) |   |         | 623,133   | 
|                                    
|                                    
|Stockholders equity:                |                                                                |                                            |   |              |         |               |   |              |         |              |   |         |         |  |   |          |          |   |   |        
|                                     | Common stock                                                   |                                            |   | 217          |         |               |   |             |         |              |   |        |         |  |   |         |          |   |   | 217     |          
|                                     | Capital in excess of par value                                 |                                            |   | 262,091      |         |               |   | 300,863      |         |              |   | 313,881 |         |  |   | (614,744 | )        |   |   | 262,091 |          
|                                     | Retained earnings                                              |                                            |   | 89,020       |         |               |   | 15,518       |         |              |   | 32,570  |         |  |   | 2,322    |          |   |   | 139,430 |          
|                                     | Accumulated other comprehensive income                         |                                            |   | 12,198       |         |               |   | 211          |         |              |   | 3,531   |         |  |   | 14,245   |          |   |   | 30,185  |          
|                                     | Treasury stock, at cost                                        |                                            |   | (26,447      | )       |               |   |             |         |              |   |        |         |  |   |         |          |   |   | (26,447 | )        
|                                    
|                                     |                                                                | Total stockholders equity                 |   |              | 337,079 |               |   |              | 316,592 |              |   |         | 349,982 |  |   |          | (598,177 | ) |   |         | 405,476   | 
|                                    
|                                     |                                                                | Total liabilities and stockholders equity |   | $            | 740,883 |               |   | $            | 304,099 |              |   | $       | 596,970 |  |   | $        | (613,343 | ) |   | $       | 1,028,609 | 
|                                    

66



---



##### 



Consolidating Condensed Statement of Cash Flows


Year Ended December 31, 2005


|                                                        |                                                           |                                                     |        |              |          |               |         |              |          |              |         |          |         |   |      |     |     |   |         |          |          |  
|------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------- | ------ | ------------ | -------- | ------------- | ------- | ------------ | -------- | ------------ | ------- | -------- | ------- | - | ---- | --- | --- | - | ------- | -------- | -------- | -
|                                                        |                                                           | Parent                                              |        | Guarantor    |          | Non-Guarantor |         |              |          |             
|                                                        |                                                           | Company                                             |        | Subsidiaries |          | Subsidiaries  |         | Eliminations |          | Consolidated
|                                                       
|Cash flows provided by operating activities             |                                                           | $                                                   | 79,754 |              |          | $             | (21,069 | )            |          | $            | 56,603  |          |         | $ | (213 | )   |     | $ | 115,075 |         
|                                                       
|Cash flows from investing activities:                   |                                                           |                                                     |        |              |          |               |         |              |          |              |         |          |         |   |      |     |     |   |         |         
|                                                        | Net cash paid in business combinations                    |                                                     |        | (738,890     | )        |               |         | 222,053      |          |              |         | 34,920   |         |   |      |    |     |   |         | (481,917 | )       
|                                                        | Capital expenditures                                      |                                                     |        | (14,885      | )        |               |         | (4,825       | )        |              |         | (15,808  | )       |   |      |    |     |   |         | (35,518  | )       
|                                                        | Disposals of property, plant and equipment                |                                                     |        | 2,102        |          |               |         | 44           |          |              |         | 1,603    |         |   |      |    |     |   |         | 3,749    |         
|                                                        | Other                                                     |                                                     |        | 6            |          |               |         |             |          |              |         | (2,231   | )       |   |      |    |     |   |         | (2,225   | )       
|                                                       
|                                                        |                                                           | Net cash provided by (used in) investing activities |        |              | (751,667 | )             |         |              | 217,272  |              |         |          | 18,484  |   |      |     |    |   |         |          | (515,911 | )
|                                                       
|Cash flows from financing activities:                   |                                                           |                                                     |        |              |          |               |         |              |          |              |         |          |         |   |      |     |     |   |         |         
|                                                        | Net change in long-term intercompany receivables/payables |                                                     |        | 308,741      |          |               |         | (198,883     | )        |              |         | (110,071 | )       |   |      | 213 |     |   |         |         |         
|                                                        | Principal payments on short-term borrowings               |                                                     |        |             |          |               |         |             |          |              |         | (26,620  | )       |   |      |    |     |   |         | (26,620  | )       
|                                                        | Proceeds from short-term borrowings                       |                                                     |        |             |          |               |         |             |          |              |         | 18,354   |         |   |      |    |     |   |         | 18,354   |         
|                                                        | Principal payments on long-term debt                      |                                                     |        | (641,068     | )        |               |         |             |          |              |         | (18,567  | )       |   |      |    |     |   |         | (659,635 | )       
|                                                        | Proceeds from long-term debt                              |                                                     |        | 813,119      |          |               |         |             |          |              |         | 109,320  |         |   |      |    |     |   |         | 922,439  |         
|                                                        | Proceeds from issuance of common stock                    |                                                     |        | 199,228      |          |               |         |             |          |              |         |         |         |   |      |    |     |   |         | 199,228  |         
|                                                        | Proceeds from stock options                               |                                                     |        | 6,006        |          |               |         |             |          |              |         |         |         |   |      |    |     |   |         | 6,006    |         
|                                                        | Purchase of treasury stock                                |                                                     |        | (2,872       | )        |               |         |             |          |              |         |         |         |   |      |    |     |   |         | (2,872   | )       
|                                                        | Debt issuance costs                                       |                                                     |        | (7,885       | )        |               |         | (301         | )        |              |         |         |         |   |      |    |     |   |         | (8,186   | )       
|                                                       
|                                                        |                                                           | Net cash provided by (used in) financing activities |        |              | 675,269  |               |         |              | (199,184 | )            |         |          | (27,584 | ) |      |     | 213 |   |         |          | 448,714  |  
|                                                       
|Effect of exchange rate changes on cash and equivalents |                                                           |                                                     | (656   | )            |          |               |        |              |          |              | (917    | )        |         |   |     |     |     |   | (1,573  | )       
|                                                       
|Increase (decrease) in cash and equivalents             |                                                           |                                                     | 2,700  |              |          |               | (2,981  | )            |          |              | 46,586  |          |         |   |     |     |     |   | 46,305  |         
|Cash and equivalents, beginning of year                 |                                                           |                                                     | 2,857  |              |          |               | 2,612   |              |          |              | 59,132  |          |         |   |     |     |     |   | 64,601  |         
|                                                       
|Cash and equivalents, end of year                       |                                                           | $                                                   | 5,557  |              |          | $             | (369    | )            |          | $            | 105,718 |          |         | $ |     |     |     | $ | 110,906 |         
|                                                       

67



---



##### 



Consolidating Condensed Statement of Cash Flows


Year Ended December 31, 2004


|                                                        |                                                           |                                                     |        |              |          |               |       |              |        |              |         |         |         |   |       |        |        |   |         |          |          |  
|------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------- | ------ | ------------ | -------- | ------------- | ----- | ------------ | ------ | ------------ | ------- | ------- | ------- | - | ----- | ------ | ------ | - | ------- | -------- | -------- | -
|                                                        |                                                           | Parent                                              |        | Guarantor    |          | Non-Guarantor |       |              |        |             
|                                                        |                                                           | Company                                             |        | Subsidiaries |          | Subsidiaries  |       | Eliminations |        | Consolidated
|                                                       
|Cash flows provided by operating activities             |                                                           | $                                                   | 31,135 |              |          | $             | 9,123 |              |        | $            | 33,525  |         |         | $ | 1,711 |        |        | $ | 75,494  |         
|                                                       
|Cash flows from investing activities:                   |                                                           |                                                     |        |              |          |               |       |              |        |              |         |         |         |   |       |        |        |   |         |         
|                                                        | Net cash paid in business combinations                    |                                                     |        | (219,094     | )        |               |       |             |        |              |         | (76,219 | )       |   |       |       |        |   |         | (295,313 | )       
|                                                        | Capital expenditures                                      |                                                     |        | (10,050      | )        |               |       | (1,043       | )      |              |         | (8,457  | )       |   |       |       |        |   |         | (19,550  | )       
|                                                        | Disposals of property, plant and equipment                |                                                     |        | (46          | )        |               |       | 221          |        |              |         | 382     |         |   |       |       |        |   |         | 557      |         
|                                                       
|                                                        |                                                           | Net cash used in investing activities               |        |              | (229,190 | )             |       |              | (822   | )            |         |         | (84,294 | ) |       |        |       |   |         |          | (314,306 | )
|                                                       
|Cash flows from financing activities:                   |                                                           |                                                     |        |              |          |               |       |              |        |              |         |         |         |   |       |        |        |   |         |         
|                                                        | Net change in long-term intercompany receivables/payables |                                                     |        | 20,236       |          |               |       | (5,683       | )      |              |         | (12,842 | )       |   |       | (1,711 | )      |   |         |         |         
|                                                        | Principal payments on short-term borrowings               |                                                     |        |             |          |               |       |             |        |              |         | (3,648  | )       |   |       |       |        |   |         | (3,648   | )       
|                                                        | Proceeds from short-term borrowings                       |                                                     |        |             |          |               |       |             |        |              |         | 327     |         |   |       |       |        |   |         | 327      |         
|                                                        | Principal payments on long-term debt                      |                                                     |        | (258,500     | )        |               |       | (6           | )      |              |         | (15,964 | )       |   |       |       |        |   |         | (274,470 | )       
|                                                        | Proceeds from long-term debt                              |                                                     |        | 353,202      |          |               |       |             |        |              |         | 9,331   |         |   |       |       |        |   |         | 362,533  |         
|                                                        | Proceeds from issuance of common stock                    |                                                     |        | 79,557       |          |               |       |             |        |              |         |        |         |   |       |       |        |   |         | 79,557   |         
|                                                        | Proceeds from stock options                               |                                                     |        | 4,860        |          |               |       |             |        |              |         |        |         |   |       |       |        |   |         | 4,860    |         
|                                                        | Purchase of treasury stock                                |                                                     |        | (500         | )        |               |       |             |        |              |         |        |         |   |       |       |        |   |         | (500     | )       
|                                                        | Debt issuance costs                                       |                                                     |        | (1,847       | )        |               |       |             |        |              |         |        |         |   |       |       |        |   |         | (1,847   | )       
|                                                       
|                                                        |                                                           | Net cash provided by (used in) financing activities |        |              | 197,008  |               |       |              | (5,689 | )            |         |         | (22,796 | ) |       |        | (1,711 | ) |         |          | 166,812  |  
|                                                       
|Effect of exchange rate changes on cash and equivalents |                                                           |                                                     |       |              |          |               |      |              |        |              | 3,798   |         |         |   |      |        |        |   | 3,798   |         
|Increase (decrease) in cash and equivalents             |                                                           |                                                     | (1,047 | )            |          |               | 2,612 |              |        |              | (69,767 | )       |         |   |      |        |        |   | (68,202 | )       
|Cash and equivalents, beginning of year                 |                                                           |                                                     | 3,904  |              |          |               |      |              |        |              | 128,899 |         |         |   |      |        |        |   | 132,803 |         
|                                                       
|Cash and equivalents, end of year                       |                                                           | $                                                   | 2,857  |              |          | $             | 2,612 |              |        | $            | 59,132  |         |         | $ |      |        |        | $ | 64,601  |         
|                                                       

68



---



##### 



Consolidating Condensed Statement of Cash Flows


Year Ended December 31, 2003


|                                                        |                                                           |                                                     |        |         |              |      |       |              |        |   |              |        |        |              |    |     |     |   |         |         |         |  
|------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------- | ------ | ------- | ------------ | ---- | ----- | ------------ | ------ | - | ------------ | ------ | ------ | ------------ | -- | --- | --- | - | ------- | ------- | ------- | -
|                                                        |                                                           |                                                     |        |         |              | Non- |       |              |        |   |             
|                                                        |                                                           | Parent                                              |        |         | Guarantor    |      |       | Guarantor    |        |   |              |        |       
|                                                        |                                                           | Company                                             |        |         | Subsidiaries |      |       | Subsidiaries |        |   | Eliminations |        |        | Consolidated |   
|                                                        |                                                          
|Cash flows provided by operating activities             |                                                           | $                                                   | 38,918 |         |              | $    | 4,534 |              |        | $ | 2,773        |        |        | $            | 58 |     |     | $ | 46,283  |        
|                                                       
|Cash flows from investing activities:                   |                                                           |                                                     |        |         |              |      |       |              |        |   |              |        |        |              |    |     |     |   |         |        
|                                                        | Net cash paid in business combinations                    |                                                     |        | (213    | )            |      |       | (2,189       | )      |   |              |       |        |              |    |    |     |   |         | (2,402  | )      
|                                                        | Capital expenditures                                      |                                                     |        | (7,603  | )            |      |       | (1,897       | )      |   |              | (2,450 | )      |              |    |    |     |   |         | (11,950 | )      
|                                                        | Disposals of property, plant and equipment                |                                                     |        | 1,821   |              |      |       | 128          |        |   |              | 10     |        |              |    |     |     |   |         | 1,959   |        
|                                                        | Other                                                     |                                                     |        | (516    | )            |      |       |             |        |   |              |       |        |              |    |    |     |   |         | (516    | )      
|                                                       
|                                                        |                                                           | Net cash used in investing activities               |        |         | (6,511       | )    |       |              | (3,958 | ) |              |        | (2,440 | )            |    |     |    |   |         |         | (12,909 | )
|                                                       
|Cash flows from financing activities:                   |                                                           |                                                     |        |         |              |      |       |              |        |   |              |        |        |              |    |     |     |   |         |        
|                                                        | Net change in long-term intercompany receivables/payables |                                                     |        | (94,951 | )            |      |       | (544         | )      |   |              | 95,553 |        |              |    | (58 | )   |   |         |        |        
|                                                        | Principal payments on long-term debt                      |                                                     |        | (59,500 | )            |      |       | (32          | )      |   |              |       |        |              |    |    |     |   |         | (59,532 | )      
|                                                        | Proceeds from long-term debt                              |                                                     |        | 122,000 |              |      |       |             |        |   |              |       |        |              |    |    |     |   |         | 122,000 |        
|                                                        | Proceeds from stock options                               |                                                     |        | 993     |              |      |       |             |        |   |              |       |        |              |    |    |     |   |         | 993     |        
|                                                        | Purchase of treasury stock                                |                                                     |        | (128    | )            |      |       |             |        |   |              |       |        |              |    |    |     |   |         | (128    | )      
|                                                        | Debt issuance costs                                       |                                                     |        | (302    | )            |      |       |             |        |   |              |       |        |              |    |    |     |   |         | (302    | )      
|                                                       
|                                                        |                                                           | Net cash provided by (used in) financing activities |        |         | (31,888      | )    |       |              | (576   | ) |              |        | 95,553 |              |    |     | (58 | ) |         |         | 63,031  |  
|                                                       
|Effect of exchange rate changes on cash and equivalents |                                                           |                                                     |       |         |              |      |      |              |        |   | 10,731       |        |        |              |   |     |     |   | 10,731  |        
|                                                       
|Increase in cash and equivalents                        |                                                           |                                                     | 519    |         |              |      |      |              |        |   | 106,617      |        |        |              |   |     |     |   | 107,136 |        
|Cash and equivalents, beginning of year                 |                                                           |                                                     | 3,385  |         |              |      |      |              |        |   | 22,282       |        |        |              |   |     |     |   | 25,667  |        
|                                                       
|Cash and equivalents, end of year                       |                                                           | $                                                   | 3,904  |         |              | $    |      |              |        | $ | 128,899      |        |        | $            |   |     |     | $ | 132,803 |        
|                                                       

Note 17: Quarterly Financial Information
(Unaudited)


|                           |  |               |         |                |      |               |         |                |  |  |         |  |  |      |         |  |      |  |         |      |  |  |         |  |  |  |         |  |  |  |         | 
|-------------------------- |  | ------------- | ------- | -------------- | ---- | ------------- | ------- | -------------- |  |  | ------- |  |  | ---- | ------- |  | ---- |  | ------- | ---- |  |  | ------- |  |  |  | ------- |  |  |  | ------- | 
|                           |  | First Quarter |         | Second Quarter |      | Third Quarter |         | Fourth Quarter
|                           |  |               |         |                |      |               |         |                |  |  |         | 
|                           |  | 2005          |         |                | 2004 |               |         | 2005           |  |  | 2004    |  |  | 2005 |         |  | 2004 |  |         | 2005 |  |  | 2004    | 
|                           | 
|Revenues                   |  | $             | 238,824 |                |      |               | 154,428 |                |  |  | 250,346 |  |  |      | 161,297 |  |      |  | 356,095 |      |  |  | 182,616 |  |  |  | 369,287 |  |  |  | 241,198 | 
|Gross margin(1)            |  | $             | 77,810  |                |      |               | 49,917  |                |  |  | 82,446  |  |  |      | 52,647  |  |      |  | 115,560 |      |  |  | 59,320  |  |  |  | 125,509 |  |  |  | 79,220  | 
|Net income(2),(3)          |  | $             | 10,292  |                |      |               | 6,557   |                |  |  | 14,663  |  |  |      | 8,276   |  |      |  | 16,661  |      |  |  | 8,654   |  |  |  | 25,335  |  |  |  | 13,636  | 
|Basic earnings per share   |  | $             | 0.51    |                |      |               | 0.40    |                |  |  | 0.62    |  |  |      | 0.42    |  |      |  | 0.64    |      |  |  | 0.44    |  |  |  | 0.98    |  |  |  | 0.69    | 
|Diluted earnings per share |  | $             | 0.50    |                |      |               | 0.39    |                |  |  | 0.61    |  |  |      | 0.41    |  |      |  | 0.63    |      |  |  | 0.43    |  |  |  | 0.96    |  |  |  | 0.67    | 
|Common stock prices:       |  |               |         |                |      |               |         |                |  |  |         |  |  |      |         |  |      |  |         |      |  |  |         |  |  |  |         |  |  |  |         | 
|High                       |  | $             | 43.13   |                |      |               | 30.30   |                |  |  | 41.95   |  |  |      | 28.96   |  |      |  | 45.02   |      |  |  | 28.53   |  |  |  | 52.16   |  |  |  | 37.95   | 
|Low                        |  | $             | 33.97   |                |      |               | 23.75   |                |  |  | 34.82   |  |  |      | 24.55   |  |      |  | 32.82   |      |  |  | 25.36   |  |  |  | 42.54   |  |  |  | 27.15   | 
|                          



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Gross margin equals revenues less cost of sales.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(2) | The quarter ended March 31, 2004 includes $846 from an
    unrealized foreign currency transaction gain.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|(3) | The quarter ended December 31, 2004 includes the favorable
    impact of $939 stemming from an adjustment to depreciation and
    amortization expense due to finalizing the purchase price
    allocation for the Syltone acquisition. In addition, the
    effective income tax rate for the quarter ended
    December 31, 2004 was 18.3% due to net favorable income tax
    reductions that lowered the effective rate for the full year to
    29.0%, compared to 32.0% for the prior year quarter and full
    year. The effective tax rate for each quarter of 2005 was 30%.

69



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##### 





Note 18: Subsequent Events (Unaudited)


TODO-MATIC Emco Wheaton


Proposal II - Amendment of the Companys
Certificate of Incorporation to Increase the Authorized Common
Stock





ITEM 9. CHANGES IN AND DISAGREEMENTS WITH
ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE







ITEM 9A. CONTROLS AND PROCEDURES


Disclosure Controls and Procedures


13a-15(e))


Managements Report on Internal Control over Financial
Reporting




70



---



##### 



Changes in Internal Control over Financial Reporting







ITEM 9B. OTHER INFORMATION







PART III





ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE
REGISTRANT


Proposal I - Election of
Directors, Nominees for Election, Directors Whose Terms of Office Will Continue After the
Meeting, Corporate Governance, Board
of Directors Committees - The Audit and Finance
Committee, Section 16(a) Beneficial
Ownership Reporting Compliance


Executive Officers of the Registrant




|                  |  |                                                               |  |     |    | 
|----------------- |  | ------------------------------------------------------------- |  | --- | -- | 
|Name              |  | Position                                                      |  | Age |   
|                  |  |                                                               |  |     |   
|Ross J. Centanni  |  | Chairman, President and Chief Executive Officer               |  |     | 60 | 
|Michael S. Carney |  | Vice President and General Manager, Blower Division           |  |     | 48 | 
|Helen W. Cornell  |  | Vice President, Finance and Chief Financial Officer           |  |     | 47 | 
|Tracy D. Pagliara |  | Vice President, Administration, General Counsel and Secretary |  |     | 43 | 
|J. Dennis Shull   |  | Vice President and General Manager, Compressor Division       |  |     | 57 | 
|Richard C. Steber |  | Vice President and General Manager, Liquid Ring Pump Division |  |     | 55 | 
|David J. Antoniuk |  | Vice President and Corporate Controller                       |  |     | 48 | 

Ross J. Centanni,


Michael S. Carney,


71



---



##### 





Helen W. Cornell,


Tracy D. Pagliara,


J. Dennis Shull,


Richard C. Steber,


David J. Antoniuk,


www.gardnerdenver.com


72



---



##### 



Compliance Certifications


10-K





ITEM 11. EXECUTIVE COMPENSATION


Compensation of Directors, Executive
Management Compensation Employee and
Executive Benefit Plans





ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS


Security Ownership of
Management and Certain Beneficial Owners





ITEM 13. CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS


Certain Relationships and
Related Transactions





ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES


Accounting Fees





PART IV





ITEM 15. EXHIBITS AND FINANCIAL STATEMENT
SCHEDULES




10-K:


|                                                                                                       |  |          |       | 
|------------------------------------------------------------------------------------------------------ |  | -------- | ----- | 
|                                                                                                       |  | Page No. |      
|                                                                                                       |  |          |      
|Internal Controls - Report of Managements Assessment
    of Internal Control Over Financial Reporting |  |          | 32    | 
|Financial Statements - Report of Independent Registered
    Public Accounting Firm                     |  |          | 32-33 | 
|Internal Controls - Report of Independent Registered Public
    Accounting Firm                        |  |          | 33-34 | 
|Consolidated Statements of Operations - Years Ended
    December 31, 2005, 2004 and 2003               |  |          | 35    | 
|Consolidated Balance Sheets - December 31, 2005 and
    2004                                           |  |          | 36    | 
|Consolidated Statements of Stockholders Equity -
    Years Ended December 31, 2005, 2004 and 2003     |  |          | 37    | 
|Consolidated Statements of Cash Flows - Years Ended
    December 31, 2005, 2004 and 2003               |  |          | 38    | 
|Notes to Consolidated Financial Statements                                                             |  |          | 39-70 | 

73



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##### 







| |                                                                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Schedules listed in Reg. 210.5-04 are omitted because they are
    not applicable, or not required, or because the required
    information is included in the consolidated financial statements
    or notes thereto.



| |       |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ----- |  |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2.1   |  |  | Agreement and Plan of Merger dated March 8, 2005 among
    Gardner Denver, Inc., PT Acquisition Corporation and Thomas
    Industries Inc., filed as Exhibit 2.1 to Gardner Denver,
    Inc.s Current Report on Form 8-K, dated March 9,
    2005, and incorporated herein by reference                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | 3.1   |  |  | Certificate of Incorporation of Gardner Denver, Inc., as amended
    on May 5, 1998, filed as Exhibit 3.1 to Gardner
    Denver, Inc.s Quarterly Report on Form 10-Q, dated
    August 13, 1998 (SEC File No. 001-13215), and
    incorporated herein by reference                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| | 3.2   |  |  | ByLaws of Gardner Denver, Inc., as amended on July 31,
    2001, filed as Exhibit 3.2 to Gardner Denver, Inc.s
    Quarterly Report on Form 10-Q, dated August 13, 2001
    (SEC File No. 001-13215), and incorporated herein by reference                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| | 4.1   |  |  | Amended and Restated Rights Agreement, dated as of
    January 17, 2005, between Gardner Denver, Inc. and National
    City Bank as Rights Agent, filed as Exhibit 4.1 to Gardner
    Denver, Inc.s Current Report on Form 8-K, dated
    January 21, 2005, and incorporated herein by reference                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| | 4.2   |  |  | Form of Indenture by and among Gardner Denver, Inc., the
    Guarantors and The Bank of New York Trust Company, N.A., as
    trustee, filed as Exhibit 4.1 to Gardner Denver,
    Inc.s Current Report on Form 8-K, dated May 4,
    2005, and incorporated herein by reference                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| | 10.0+ |  |  | Third Amended and Restated Credit Agreement dated as of
    May 13, 2005 among Gardner Denver, Inc. (the
    Borrower), the financial institutions from time to
    time party thereto (the Lenders), JPMorgan Chase
    Bank, N.A., successor by merger to Bank One, NA, as a Lender, an
    LC Issuer, the Swing Line Lender and as agent for itself and the
    other Lenders, Wachovia Bank, National Association, as a Lender
    and as Syndication Agent for the Revolving Loan Facility,
    Harris Trust and Savings Bank, National City Bank of the Midwest
    and KeyBank National Association, as Lenders and as
    Co-Documentation Agents for the Revolving Credit Facility, and
    Bear Stearns Corporate Lending Inc., as a Lender and as
    Syndication Agent for the Term Loan Facility, filed as
    Exhibit 10.1 to Gardner Denver, Inc.s Current Report
    on Form 8-K, dated May 16, 2005, and incorporated
    herein by reference
|
| | 10.1  |  |  | Form of Escrow and Security Agreement by and between Gardner
    Denver, Inc. and The Bank of New York Trust Company, N.A., as
    trustee and escrow agent, filed as Exhibit 10.1 to Gardner
    Denver, Inc.s Current Report on Form 8-K, dated
    May 4, 2005, and incorporated herein by reference                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | 10.2  |  |  | Form of Registration Rights Agreement by and among Gardner
    Denver, Inc., the guarantors and the initial purchasers named
    therein, filed as Exhibit 10.2 to Gardner Denver,
    Inc.s Current Report on Form 8-K, dated May 4,
    2005, and incorporated herein by reference                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| | 10.3* |  |  | Gardner Denver, Inc. Long-Term Incentive Plan, as amended
    May 4, 2004 filed as Exhibit 10.1 to Gardner Denver,
    Inc.s Quarterly Report on Form 10-Q dated
    May 10, 2004 and incorporated herein by reference                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| | 10.4* |  |  | Gardner Denver Machinery Inc. Supplemental Excess Defined
    Benefit Plan, effective on March 31, 1994, and incorporated
    herein by reference                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| | 10.5* |  |  | Gardner Denver Machinery Inc. Supplemental Excess Defined
    Contribution Plan, effective on March 31, 1994, and
    incorporated herein by reference                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | 10.6* |  |  | Amended and Restated Form of Indemnification Agreements between
    Gardner Denver, Inc. and its directors, officers or
    representatives, filed as Exhibit 10.4 to Gardner Denver,
    Inc.s Form 10-K, dated March 28, 2002, and
    incorporated herein by reference                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | 10.7* |  |  | Gardner Denver, Inc. Phantom Stock Plan for Outside Directors,
    as amended May 4, 1998, March 7, 2000 and
    November 8, 2005, with an effective date of January 1,
    2006. **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

74



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##### 



| |        |  |  |                                                                                                                                                                                                                                                                        
| | ------ |  |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10.8*  |  |  | Gardner Denver, Inc. Executive Stock Repurchase Program, as
    amended May 6, 2003 filed as Exhibit 10.7 to Gardner
    Denver, Inc.s Quarterly Report on Form 10-K dated
    May 8, 2003 and incorporated herein by reference                                       
|
| | 10.9*  |  |  | Gardner Denver, Inc. Incentive Stock Option Agreement, filed as
    Exhibit 10.8 to Gardner Denver, Inc.s Form 10-K
    dated March 22, 2001, and incorporated herein by reference                                                                                    
|
| | 10.10* |  |  | Gardner Denver, Inc. Nonstatutory Stock Option Agreement, filed
    as Exhibit 10.9 to Gardner Denver, Inc.s
    Form 10-K dated March 22, 2001, and incorporated
    herein by reference                                                                             
|
| | 10.11* |  |  | Form of Gardner Denver, Inc. Nonemployee Director Stock Option
    Agreement, as amended July 29, 2003 filed as
    Exhibit 10.10 to Gardner Denver, Inc.s Quarterly
    Report on Form 10-Q dated November 12, 2003 and
    incorporated herein by reference         
|
| | 10.12* |  |  | Gardner Denver, Inc. Executive Annual Bonus Plan, as amended
    May 3, 2005 and effective January 1, 2006, filed as
    Exhibit 10.4 to Gardner Denver, Inc.s Quarterly
    Report on Form 10-Q, dated August 9, 2005, and
    incorporated herein by reference      
|
| | 10.13* |  |  | Form of Gardner Denver, Inc. Long-Term Cash Bonus Agreement
    between Gardner Denver, Inc. and executive bonus award
    participants, filed as Exhibit 10.12 to Gardner Denver,
    Inc.s Form 10-K, dated March 28, 2002, and
    incorporated herein by reference
|
| | 10.14* |  |  | Form of Change in Control Agreement dated May 2, 2005,
    entered into between Gardner Denver, Inc. and its Chief
    Executive Officer. **                                                                                                                           
|
| | 10.15* |  |  | Form of Change in Control Agreement dated May 2, 2005,
    entered into between Gardner Denver, Inc. and its executive
    officers. **                                                                                                                                
|
| | 10.16* |  |  | Gardner Denver, Inc. Executive Retirement Planning Program
    Services, dated May 5, 2003, filed as Exhibit 10.15 to
    Gardner Denver, Inc.s Quarterly Report on Form 10-Q
    dated August 8, 2003 and incorporated herein by reference                           
|
| | 10.17* |  |  | Summary of Compensation Payable to Nonemployee Directors. **                                                                                                                                                                                                           
|
| | 12     |  |  | Ratio of Earnings to Fixed Charges. **                                                                                                                                                                                                                                 
|
| | 21     |  |  | Subsidiaries of Gardner Denver, Inc. **                                                                                                                                                                                                                                
|
| | 23     |  |  | Consent of Independent Registered Public Accounting Firm. **                                                                                                                                                                                                           
|
| | 24     |  |  | Powers of Attorney. **                                                                                                                                                                                                                                                 
|
| | 31.1   |  |  | Certification of Principal Executive Officer Pursuant to
    Rule 13a-14(a) of the Exchange Act, as Adopted Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002. **                                                                                          
|
| | 31.2   |  |  | Certification of Principal Financial Officer Pursuant to
    Rule 13a-14(a) of the Exchange Act, as Adopted Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002. **                                                                                          
|
| | 32.1   |  |  | Certification of Chief Executive Officer Pursuant to
    18 U.S.C. Section 1350, as Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002. **                                                                                                          
|
| | 32.2   |  |  | Certification of Chief Financial Officer Pursuant to
    18 U.S.C. Section 1350, as Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002. **                                                                                                          



|  |                                                                                                                                      
|- | -------------------------------------------------------------------------------------------------------------------------------------
|+ | The registrant hereby agrees to furnish supplementally a copy of
    any omitted schedules to this agreement to the SEC upon request.
|* | Management contract or compensatory plan.                                                                                            



75



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##### 






SIGNATURES






| |                     
| | --------------------
| | GARDNER DENVER, INC.



| |    |                     
| | -- | --------------------
| | By | /s/ Ross J. Centanni

| |                            
| | ---------------------------
| |                            
| | Ross J. Centanni           
| | Chairman, President and CEO



|                                       |  |                                                                            |  | 
|-------------------------------------- |  | -------------------------------------------------------------------------- |  | 
|Signature                              |  | Title                                                                     
|                                      
|                                      
|/s/ Ross J. CentanniRoss J. Centanni   |  | Chairman, President and CEO (Principal Executive Officer) and
    Director
|                                      
|/s/ Helen W. CornellHelen W. Cornell   |  | Vice President, Finance and CFO (Principal Financial Officer)             
|                                      
|/s/ David J. AntoniukDavid J. Antoniuk |  | Vice President and Corporate Controller (Principal Accounting
    Officer)
|                                      
|*Donald G. Barger, Jr.                 |  | Director                                                                  
|                                      
|*Frank J. Hansen                       |  | Director                                                                  
|                                      
|*Raymond R. Hipp                       |  | Director                                                                  
|                                      
|*Thomas M. McKenna                     |  | Director                                                                  
|                                      
|*David D. Petratis                     |  | Director                                                                  
|                                      
|*Diane K. Schumacher                   |  | Director                                                                  
|                                      
|*Richard L. Thompson                   |  | Director                                                                  



| |                          
| | -------------------------
| | *By /s/ Tracy D. Pagliara
| |                          

| |  |                  
| |  | -----------------
| |  | Tracy D. Pagliara

| |                 
| | ----------------
| | Attorney-in-fact

76



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##### 






GARDNER DENVER, INC.


INDEX TO EXHIBITS


|            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|           
|2.1         |  | Agreement and Plan of Merger dated March 8, 2005 among
    Gardner Denver, Inc., PT Acquisition Corporation and Thomas
    Industries Inc., filed as Exhibit 2.1 to Gardner Denver,
    Inc.s Current Report on Form 8-K, dated March 9,
    2005, and incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|           
|3.1         |  | Certificate of Incorporation of Gardner Denver, Inc., as amended
    on May 5, 1998, filed as Exhibit 3.1 to Gardner
    Denver, Inc.s Quarterly Report on Form 10-Q, dated
    August 13, 1998 (SEC File No. 001-13215), and incorporated
    herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|           
|3.2         |  | ByLaws of Gardner Denver, Inc., as amended on July 31,
    2001, filed as Exhibit 3.2 to Gardner Denver, Inc.s
    Quarterly Report on Form 10-Q, dated August 13, 2001
    (SEC File No. 001-13215), and incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|           
|4.1         |  | Amended and Restated Rights Agreement, dated as of
    January 17, 2005, between Gardner Denver, Inc. and National
    City Bank as Rights Agent, filed as Exhibit 4.1 to Gardner
    Denver, Inc.s Current Report on Form 8-K, dated
    January 21, 2005, and incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|           
|4.2         |  | Form of Indenture by and among Gardner Denver, Inc., the
    Guarantors and The Bank of New York Trust Company, N.A., as
    trustee, filed as Exhibit 4.1 to Gardner Denver,
    Inc.s Current Report on Form 8-K, dated May 4,
    2005, and incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|           
|10.0+       |  | Third Amended and Restated Credit Agreement dated as of
    May 13, 2005 among Gardner Denver, Inc. (the
    Borrower), the financial institutions from time to
    time party thereto (the Lenders), JPMorgan Chase
    Bank, N.A., successor by merger to Bank One, NA, as a Lender, an
    LC Issuer, the Swing Line Lender and as agent for itself and the
    other Lenders, Wachovia Bank, National Association, as a Lender
    and as Syndication Agent for the Revolving Loan Facility,
    Harris Trust and Savings Bank, National City Bank of the Midwest
    and KeyBank National Association, as Lenders and as
    Co-Documentation Agents for the Revolving Credit Facility, and
    Bear Stearns Corporate Lending Inc., as a Lender and as
    Syndication Agent for the Term Loan Facility, filed as
    Exhibit 10.1 to Gardner Denver, Inc.s Current Report
    on Form 8-K, dated May 16, 2005, and incorporated
    herein by reference.
|           
|10.1        |  | Form of Escrow and Security Agreement by and between Gardner
    Denver, Inc. and The Bank of New York Trust Company, N.A., as
    trustee and escrow agent, filed as Exhibit 10.1 to Gardner
    Denver, Inc.s Current Report on Form 8-K, dated
    May 4, 2005, and incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|           
|10.2        |  | Form of Registration Rights Agreement by and among Gardner
    Denver, Inc., the guarantors and the initial purchasers named
    therein, filed as Exhibit 10.2 to Gardner Denver,
    Inc.s Current Report on Form 8-K, dated May 4,
    2005, and incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|           
|10.3*       |  | Gardner Denver, Inc. Long-Term Incentive Plan, as amended
    May 4, 2004 filed as Exhibit 10.1 to Gardner Denver,
    Inc.s Quarterly Report on Form 10-Q dated
    May 10, 2004 and incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|           
|10.4*       |  | Gardner Denver Machinery Inc. Supplemental Excess Defined
    Benefit Plan, effective on March 31, 1994, and incorporated
    herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

77



---



##### 



|       |  |                                                                                                                                                                                                                                                                            
|------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10.5*  |  | Gardner Denver Machinery Inc. Supplemental Excess Defined
    Contribution Plan, effective on March 31, 1994, and
    incorporated herein by reference.                                                                                                                    
|      
|10.6*  |  | Amended and Restated Form of Indemnification Agreements between
    Gardner Denver, Inc. and its directors, officers or
    representatives, filed as Exhibit 10.4 to Gardner Denver,
    Inc.s Form 10-K, dated March 28, 2002, and
    incorporated herein by reference.
|      
|10.7*  |  | Gardner Denver, Inc. Phantom Stock Plan for Outside Directors,
    as amended May 4, 1998, March 7, 2000 and
    November 8, 2005, with an effective date of January 1,
    2006. **                                                                                       
|      
|10.8*  |  | Gardner Denver, Inc. Executive Stock Repurchase Program, as
    amended May 6, 2003 filed as Exhibit 10.7 to Gardner
    Denver, Inc.s Quarterly Report on Form 10-K dated
    May 8, 2003 and incorporated herein by reference.                                          
|      
|10.9*  |  | Gardner Denver, Inc. Incentive Stock Option Agreement, filed as
    Exhibit 10.8 to Gardner Denver, Inc.s Form 10-K
    dated March 22, 2001, and incorporated herein by reference.                                                                                       
|      
|10.10* |  | Gardner Denver, Inc. Nonstatutory Stock Option Agreement, filed
    as Exhibit 10.9 to Gardner Denver, Inc.s
    Form 10-K dated March 22, 2001, and incorporated
    herein by reference.                                                                                
|      
|10.11* |  | Form of Gardner Denver, Inc. Nonemployee Director Stock Option
    Agreement, as amended July 29, 2003 filed as
    Exhibit 10.10 to Gardner Denver, Inc.s Quarterly
    Report on Form 10-Q dated November 12, 2003 and
    incorporated herein by reference.            
|      
|10.12* |  | Gardner Denver, Inc. Executive Annual Bonus Plan, as amended
    May 3, 2005 and effective January 1, 2006, filed as
    Exhibit 10.4 to Gardner Denver, Inc.s Quarterly
    Report on Form 10-Q, dated August 9, 2005, and
    incorporated herein by reference.         
|      
|10.13* |  | Form of Gardner Denver, Inc. Long-Term Cash Bonus Agreement
    between Gardner Denver, Inc. and executive bonus award
    participants, filed as Exhibit 10.12 to Gardner Denver,
    Inc.s Form 10-K, dated March 28, 2002, and
    incorporated herein by reference.   
|      
|10.14* |  | Form of Change in Control Agreement dated May 2, 2005,
    entered into between Gardner Denver, Inc. and its Chief
    Executive Officer. **                                                                                                                               
|      
|10.15* |  | Form of Change in Control Agreement dated May 2, 2005,
    entered into between Gardner Denver, Inc. and its executive
    officers. **                                                                                                                                    
|      
|10.16* |  | Gardner Denver, Inc. Executive Retirement Planning Program
    Services, dated May 5, 2003, filed as Exhibit 10.15 to
    Gardner Denver, Inc.s Quarterly Report on Form 10-Q
    dated August 8, 2003 and incorporated herein by reference.                              
|      
|10.17* |  | Summary of Compensation Payable to Nonemployee Directors. **                                                                                                                                                                                                               
|      
|12     |  | Ratio of Earnings to Fixed Charges. **                                                                                                                                                                                                                                     
|      
|21     |  | Subsidiaries of Gardner Denver, Inc. **                                                                                                                                                                                                                                    
|      
|23     |  | Consent of Independent Registered Public Accounting Firm. **                                                                                                                                                                                                               
|      
|24     |  | Powers of Attorney. **                                                                                                                                                                                                                                                     
|      
|31.1   |  | Certification of Principal Executive Officer Pursuant to
    Rule 13a-14(a) of the Exchange Act, as Adopted Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002. **                                                                                              

78



---



##### 



|     |  |                                                                                                                                                                              
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.2 |  | Certification of Principal Financial Officer Pursuant to
    Rule 13a-14(a) of the Exchange Act, as Adopted Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002. **
|    
|32.1 |  | Certification of Chief Executive Officer Pursuant to
    18 U.S.C. Section 1350, as Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002. **                
|    
|32.2 |  | Certification of Chief Financial Officer Pursuant to
    18 U.S.C. Section 1350, as Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002. **                



|  |                                                                                                                                      
|- | -------------------------------------------------------------------------------------------------------------------------------------
|+ | The registrant hereby agrees to furnish supplementally a copy of
    any omitted schedules to this agreement to the SEC upon request.



|   |                                          
|-- | -----------------------------------------
|*  | Management contract or compensatory plan.
|  
|** | Filed herewith.                          

79