Document 0LakvExnaw7B1EdaQrJkyM96O

tors are pointing toward an upswing and a higher rate of economic growth for 1968. Research and Development Expenditures for research and development w'ere the highest ever in 1967, amounting to $5,440,000, an increase of 29% over 1966. The major portion of these funds was spent on design and product development which is necessary to keep our products in step with advancing technology and to adapt them to the swiftly changing needs of our customers. In the area of wear control, we are con stantly searching for new alloys with improved performance characteristics to lengthen ser vice life and reduce costs. Currently, the metallurgical laboratory is exploring a unique and patented method of impregnating cast metals with other substances to produce properties not now available in any other cast material. Such a material could be used in several areas of our present product lines and in other fields of interest where we are not currently active. Research in the friction control field is de- veloping new materials to meet the increas ingly severe requirements for braking and power transmission which are necessary in larger aircraft, more powerful mobile equip ment and by changing designs and higher speeds in the automotive and railroad in dustries. In the field of fluid power controls, we are developing capabilities for more sophisticated hydraulic hardware and sub-systems as well as advancing our knowledge of electronic controls which become a part of packaged systems. The competition between several compa nies, including Abex, to develop an automatic identification system for railway freight cars closed when the Association of American Railroads designated a competitor's system as standard for all United States railroads. Employee Relations Employees at year-end numbered 14,325 world-wide, of which about 9,400 were in the United States. During the year, the company negotiated Distribution of the Income Dollar 1963 39.2 1964 36 a 1963 36.7C 1966 36.44 1967 37 9* 30.0 311 30.8 29J 29.4 17.7 18.0 :b.5 19.2 18.6 4.5 4.3 4.0 4.0 4.1 1.1 1.1 1.1 .9 1.0 .6 .6 .6 .6 .7 3.4 41 4.0 4.8 4.3 2.1 1.9 2.0 2.1 2.1 1 4 2.1 2.3 | 2.5 1.9 100.0* 10C.0t 100.0 100.0* 100.ce "1-110 20< 30e 40< 50S ----------------- -'i ................. . 1967 :n thousands Wages, Salaries, an 1 Other Benefits S104.920 Production Matt rials ------------------- 1 ! upplies and Expenses 81,227 51,434 Depreci. lion and Amortization of Intangibles ; 11,233 Property, Excise, and Miscellan*sous Taxes 1 Interest on Borrowed Money 2,717 1.820 Taxes on Income Cash Dividends t 1 Reinvested In the Business ____________1______________ 11.800 5.909 5,361 Total $276,421