The automotive supplier industry provides systems, modules and components to original equipment manufacturers, or OEMs, for the manufacture of new vehicles. Modules are groups of component parts arranged in close physical proximity to each other within a vehicle that are often assembled by the supplier and shipped to the OEM for installation in a vehicle as a unit. Systems are groups of component parts located throughout the vehicle that operate together to provide a specific vehicle function.

Historically, OEMs operated internal divisions to provide a wide range of component parts for their vehicles. In recent years, OEMs expanded their requirements for technologically advanced products and/or lower priced components and consequently have increased purchases from independent suppliers.

Tier 1 suppliers sell their products principally to OEMs directly, and often offer a broad range of capabilities, including design, engineering and manufacturing. Tier 1 suppliers provide systems, modules and components and are increasingly influencing the vehicle assembly process, including the sourcing of Tier 2 components. Tier 2 suppliers sell their products principally to Tier 1 suppliers, who then integrate these components into their own product offerings. Suppliers generally compete for new OEM business at the beginning of the development of new vehicle models and upon the redesign of existing vehicle models. OEM arrangements with suppliers of automotive parts typically relate to the entire life of the vehicle model.

The Company’s Front and Rear End Modules segment focuses on the design, engineering and manufacture of front and rear end modules and bumper systems. The Company is one of the largest manufacturers of front and rear end modules and bumper systems in North America. The Company designs, engineers and manufactures chrome plated and painted stamped steel bumpers, steel rollform beams, energy absorbing foam and plastic fascias, all of which it integrates in the front and rear end modules and bumper systems that it produces. Key vehicle platforms include the Ford F-Series trucks, Expedition, Ranger, Taurus, Focus, Mercury Sable and Lincoln Navigator. The Company has historically targeted stamped steel bumper products for the light truck and SUV segments of the automotive market. This market is attractive for several reasons, including the recent growth of this market relative to cars; vehicles in this market require a high degree of value-added content and other services, including chrome plating and body color painting; the importance of bumper design and engineering to the overall look and performance of these vehicles; and the continuing prevalence of stamped steel bumpers on light trucks.

The Company’s Exterior Composites segment focuses on the design, engineering and manufacture of a wide variety of exterior and structural plastic composite components for light trucks, SUVs, passenger cars and heavy trucks. These components, which usually consist of a composite material that blends glass or other fibers and plastic resins, are used in such applications as body panels, fenders, tailgates, midgates, step assists, tonneau covers, hood assemblies, grille opening reinforcements, pickup truck boxes, valve covers and structural reinforcements. Composite materials not only offer significant weight savings to OEMs but also offer a high degree of design flexibility with low initial investment and tooling costs compared to other materials. The Company’s composite materials capability has resulted in its significant participation on niche vehicles such as the Chevrolet Corvette, Dodge Viper, GM H2 Hummer, Cadillac XLR, Ford Thunderbird and Lincoln Aviator.

The Company’s Interiors and Exterior Lighting segment focuses on the design, engineering and manufacture of interior components and modules and exterior lighting components. The Company designs, engineers and manufactures interior trim components and modules for the automotive industry, which are predominately manufactured through plastic injection molding. The Company’s products include floor consoles, instrument panels, door panels, cupholders, glove boxes, ash trays and decorative trim panels. In addition, the Company designs, engineers and manufactures exterior lighting components for the automotive industry. The Company’s products include tail lamps, park and turn lights, license lamps, signal lamps, fog lamps and center high mount stop lamps. The Company has also historically manufactured a small number of composite products for companies outside the automotive industry. Key vehicle platforms include GM's luxury SUVs and DaimlerChrysler minivans.

Cost of sales during the six months ended June 30, 2002 was $491.6 million, a 2.8% increase over the $478.2 million cost of sales during the six months ended June 30, 2001.

Selling, general and administrative expenses increased to $21.7 million, or 4.0% of net sales, for the six months ended June 30, 2002, compared to $20.7 million, or 4.1% of net sales, for the six months ended June 30, 2001.

Amortization expense for the six months ended June 30, 2002 was $0.8 million, or 0.1% of net sales, compared to $8.8 million, or 1.7% of net sales, for the six months ended June 30, 2001.

Interest expense for the six months ended June 30, 2002 was $33.0 million, or 6.1% of net sales, compared to $33.8 million, or 6.7% of net sales, for the six months ended June 30, 2001.