Exhibit 8 (2)

EXHIBIT 8
EASTBORO MACHINE TOOLS CORPORATION
Projected Sources and Uses Statement ( in million dollars)

Assumptions: 2001 2002

1. Sales Growth Rate: 15% 15%

2. Net Income as % of Sales 2.1% 4.0%
3. Dividend Payout Ratio 50.0% 50.0%

Projections
2000 2001 2002

Sales $ 870 $ 1,001

Sources:
Net income 18 40
Depreciation 23 26
41 66
Uses:
Capital expend. 44 50
Change in Working capital 20 22
63 73

Excess cash/(Borrowing needs) (23) (7)

Dividend 9 20

After dividend
Excess cash/(Borrowing needs) (32) (27)

Retianed Earnings 9 20
Debt 80 112 139
Equity 283 292 312
D/E ratio 38.42% 44.70%

Page 1
 Exhibit 8 (2)

2003 2004 2005 2006 2007

15% 15% 15% 15% 15%

5.0% 5.5% 6.0% 5.6% 8.0%
50.0% 50.0% 50.0% 50.0% 50.0%

Total
2003 2004 2005 2006 2007 2001-07

$ 1,151 $ 1,323 $ 1,522 $ 1,750 $ 2,013 9,630

58 73 91 98 160 538
30 35 41 47 53 252
88 107 132 145 213 790

58 66 68 79 91 456
26 30 34 39 44 214
83 96 102 117 135 670

4 12 29 27 78 120
29 36 46 49 80 269

(25) (25) (16) (22) (2) (149)

29 36 46 49 80 269
164 189 205 227 229 378
340 377 422 471 551 820
48.14% 50.09% 48.53% 48.10% 41.55% 46.08%

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 Exhibit 1

EXHIBIT 1
EASTBORO MACHINE TOOLS CORPORATION
Consolidated Income Statements ( in thousand dollars, except per share data)

For the Years Ended December 31,

1998 1999 2000

Net sales $ 858,263 $ 815,979 $ 756,638

Cost of sales 540,747 501,458 498,879
Gross profit 317,516 314,522 257,759

Research & development 77,678 70,545 75,417

Selling, general, & administrative 229,971 223,634 231,008
Restructuring costs 65,448 0 89,411
Operating profit (loss) (55,581) 20,343 (138,077)

Other income (expense) (4,500) 1,065 (3,458)

Income (loss) before taxes (60,081) 21,408 (141,534)
Income taxes (benefit) 1,241 8,415 (750)

Net income (loss) ($61,322) $12,993 ($140,784)

Earnings (loss) per share ($3.25) $0.69 ($7.57)

Dividends per share $0.77 $0.25 $0.25

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 Exhibit 1

December 31,
Projected
2001

$ 870,000
549,750
320,250

77,250
211,500
0
31,500

(4,200)
27,300
9,282

$18,018

$0.98
$0.39

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 Exhibit 2

EXHIBIT 2
EASTBORO MACHINE TOOLS CORPORATION
Consolidated Balance Sheets ( in thousand dollars)

December 31st
Projected
1999 2000 2001

Cash & equivalents $ 13,917 $ 22,230 $ 25,665

Accounts receivable 208,541 187,235 217,510
Inventories 230,342 203,888 217,221
Prepaid expenses 14,259 13,016 15,011
Other 22,184 20,714 21,000
Total Current Assets 489,242 447,082 496,407

Property, plant, & equipment 327,603 358,841 410,988

Less depreciation 167,414 183,486 205,530
Net property, plant, & equipment 160,190 175,355 205,458
Intangible assets 9,429 2,099 1,515
Other assets 15,723 17,688 17,969

Total assets $674,583 $642,223 $721,350

Bank loans $ 34,196 71,345 74,981

Accounts payable 36,449 34,239 37,527
Current portion of long-term debt 300 150 1,515
Accruals and other 129,374 161,633 183,014
Total Current Liabilities 200,318 267,367 297,037

Deferred taxes 16,986 13,769 16,526

Long-term debt 9,000 8,775 30,021
Deferred pension costs 44,790 64,329 70,134
Other liabilities 2,318 5,444 7,505
Total Liabilities 273,411 359,683 421,224

Common stock, $1 par value 18,855 18,855 18,835

Capital in excess of par 107,874 107,907 107,889
Cumulative translation adjustment (6,566) 20,208 26,990
Retained earnings 291,498 146,065 156,875
Less treasury stock at cost:

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 Exhibit 2

1986--256,151, 1987--255,506 (10,490) (10,494) (10,464)

Total shareholders' equity 401,172 282,541 300,126

Total Liabilities & Equity $674,583 $642,223 $721,350

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Exhibit 2

Page 7
Exhibit 2

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 Exhibit 5

EXHIBIT 5
EASTBORO MACHINE TOOLS CORPORATION
Per Share Financial & Stock Data*

Sales / -----Stock Price-----

Year Share EPS~ DPS~ CPS~ High Low

1985 $14.52 $ 0.45 $0.18 $0.97 $20.37 $9.69

1986 16.00 0.74 0.22 1.29 21.11 10.18
1987 22.25 0.89 0.27 1.43 21.23 8.20
1988 25.64 1.59 0.31 2.05 18.50 10.18
1989 27.19 2.29 0.40 2.83 22.48 12.17
1990 30.06 2.59 0.57 3.25 23.84 18.01
1991 31.66 2.61 0.72 3.34 26.70 18.25
1992 37.71 2.69 0.81 3.60 29.43 19.50
1993 40.69 2.56 0.86 3.62 39.74 20.12
1994 48.23 3.58 0.92 4.81 40.98 27.32
1995 43.59 2.79 1.03 4.25 38.74 21.36
1996 42.87 0.65 1.03 2.23 47.19 29.55
1997 41.48 0.35 1.03 2.00 40.23 26.82
1998 46.01 (3.29) 0.77 2.86 30.75 22.13
1999 43.88 0.70 0.25 1.99 71.88 50.74
2000 40.68 (7.57) 0.25 -0.97 39.88 18.38

*Adjusted for 3-for-2 stock split in January 1991 and 50 percent stock dividend in June 1993.
~ EPS: Earnings Per Share;CPS: Cash earnings per Share; DPS: Dividend per Share

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 Exhibit 5

Shares
Stock Price----- Avg. Payout Avg. Outstanding
Avg. P/E Ratio Yield (Millions)

$14.48 32.4 40% 1.2% 15.49

14.85 20.2 30% 1.5 15.58
13.50 15.1 30% 2.0 16.04
13.35 8.4 19% 2.3 17.87
18.36 8.0 17% 2.2 18.08
21.00 8.1 22% 2.7 18.39
22.73 8.7 27% 3.1 18.76
24.23 9.0 30% 3.4 18.76
29.48 11.5 34% 2.9 18.78
33.98 9.5 26% 2.7 18.88
31.82 11.4 37% 3.2 18.66
36.81 57.0 160% 2.8 18.66
31.26 89.9 297% 3.3 18.66
26.45 NMF NMF 2.9 18.85
61.33 88.2 35% 0.4 18.85
29.15 NMF NMF 0.9 18.60

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 Exhibit 8

EXHIBIT 8
EASTBORO MACHINE TOOLS CORPORATION
Projected Sources and Uses Statement ( in million dollars)

Assumptions: 2001 2002

1. Sales Growth Rate: 15% 15%

2. Net Income as % of Sales 2.1% 4.0%
3. Dividend Payout Ratio 40.0% 40.0%

Projections
2000 2001 2002

Sales $ 870 $ 1,001

Sources:
Net income 18 40
Depreciation 23 26
41 66
Uses:
Capital expend. 44 50
Change in Working capital 20 22
63 73

Excess cash/(Borrowing needs) (23) (7)

Dividend 7 16

After dividend
Excess cash/(Borrowing needs) (30) (23)

Retianed Earnings 11 24
Debt 80 110 133
Equity 283 293 317
D/E ratio 37.56% 42.05%

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 Exhibit 8

2003 2004 2005 2006 2007

15% 15% 15% 15% 15%

5.0% 5.5% 6.0% 5.6% 8.0%
40.0% 40.0% 40.0% 40.0% 40.0%

2003 2004 2005 2006 2007

$ 1,151 $ 1,323 $ 1,522 $ 1,750 $ 2,013

58 73 91 98 160
30 35 41 47 53
88 107 132 145 213

58 66 68 79 91
26 30 34 39 44
83 96 102 117 135

4 12 29 27 78
23 29 37 39 64

(19) (18) (7) (12) 14

35 44 55 59 96
152 170 177 189 175
352 396 450 509 605
43.27% 42.94% 39.30% 37.12% 28.97%

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