Document 0MbK6drp9Q0m03a2R2gOQ6ZM

of the characteristics of our current production formulae. Certain funda mentals of this problem have been assigned to our Mahwah Laboratory and we hope that during 1949 we will be able to achieve the improvements. Our position is improving in the heavy-duty truck and bus field, wherein thick blocks are used as a friction material. Such accounts as General Motors Truck & Coach, Mack Manufacturing, Timken-Detroit Axle, Eaton Manufacturing, Clark Equipment and Shuler Axle are progressively giving us a bigger percentage of their business. We had hoped during the year to substitute a cheaper dry-mix formula for the wet-mix formula in all thick block production. However, we found this formula not heat resistant enough when introduced to the field and we had to backtrack on this plan. Currently, both formulae are in production because some cus tomers prefer the dry-mix formula. It might be noted that our position in the aircraft industry is improving. Our materials are used as original equipment on the Bendix disc-type brake, manufactured by the Bendix Aviation Corporation. The Bendix aircraft brakes are used on B-36 bombers and Constellation type airliners, as well as other types of commercial aircraft. In this con nection, the engineering department of Bendix has requested an improvement in the heat resistance of our material. During the year we raised prices to original equipment manufacturers 13.5%, We experienced considerable resistance from our customers in raising these prices. REPLACEMENT SALES Sales to K.A.P.A. 1948 1947 Increase Per or Decrease cent Brake Lining Purchased Clutch Facings $2,576,662 38,995 $1,728,074 / $846,588 80,027 - 41,032 / 49% - 51% Purchased Woven Lining 63,268 69,522 - 6,254 - 9% Purchased Belts & Hose 796,217 826,752 - 30,535 - 4% Misc. (Bolts, Rivets, etc.) 57.814 Total $3,532,956 J 39.389 / 18.425 $2,743 , 764 $789,192 / 47% / 29% Sales of brake lining of our manufacture to K.A.P.A. in 1948 quite closely paralleled the demand for our products placed upon them by the jobber and the dealer. To a slight degree in the early part of 1948, we still labored under some of the same conditions which prevailed in 1947, wherein excess and out-of-balance inventories prevailed on certain items and with certain customers. It is felt that this situation completely corrected itself during 1948. The large new-car production in 1948 af fected the replacement sales demand to a certain extent as new cars made available to the driving public did not need relining during the year. 5. SPNY 003769