National Waterworks, Inc., which purchased U.S. Filter Distribution Group in November 2002, reported a 10.9% increase in sales for 2003 to $1.28 billion, with net income for the year of $33.6 million, compared with a net loss of $418.7 million the prior year, due mainly to a change in accounting practice. Under old accounting rules, 2002 net income would have been $40.3 million.