Incorporating in Bermuda in May of this year saved Cooper Industries Ltd. $0.07 per share according to the company's third quarter results released yesterday.

The company reported third-quarter net income of $63.2 million, or $.68 per share (diluted), compared with net income of $74.3 million, or $.78 per share, for the third quarter of 2001.

Revenues for the quarter were $1.0 billion, compared with $1.05 billion for the same period last year. Operating earnings for the third quarter 2002 were $102.5 million, compared with $130.7 million for the third quarter 2001.

"Cooper's third-quarter results were consistent with our expectations and reflect our continuing efforts to leverage our strong commercial position in a very difficult economic environment," said H. John Riley, Jr., chairman, president and chief executive officer.

"The broad-based economic recovery all of industrial America keeps hoping for has yet to materialise. As a result, we have not seen any meaningful upturn in our served markets. Appropriately, we are continuing to conservatively manage our businesses to reduce debt and further lower our cost base. Our efforts to maximise free cash flow and otherwise enhance the long-range competitive position of all of our businesses are working." said Mr. Riley.

He also said the company's free cash flow for the third quarter was a very strong $104 million, bringing year-to-date free cash flow to $269 million, compared to $189 million for the same period last year. The company's debt-to-total capitalisation ratio net of cash on September 30, 2002, was 37.3 percent, down from 37.9 percent at the end of the second quarter and 40.9 percent at the 2001 third-quarter end.

Mr. Riley said: "Despite the persistently sluggish and volatile economy, we are continuing to aggressively invest in important sales and marketing and new-product development initiatives to stimulate growth and increase market share. Additionally, low-cost manufacturing initiatives are allowing us to further streamline the company's production footprint. We plan to take a fourth-quarter pretax charge of approximately $30 million to close ten manufacturing facilities. We expect that this action will result in cumulative net savings of over $35 million by 2004.

Mr. Riley concluded: "We are confident that our strategic business investments and our vigorous restructuring efforts are positioning the company for enhanced profitability and market leadership when the economy recovers."

Cooper Industries, Ltd., with 2001 revenues of $4.2 billion, is a global manufacturer of electrical products and tools and hardware. Incorporated in Bermuda, with administrative headquarters in Houston, Texas, Cooper has nearly 30,000 employees serving more than 100 locations around the world, and sells products to customers in more than 50 countries.