Document 3v1QzB4bXop1ymDonE5eQB1x

I Enlarging the Business in Latin America A wide variety ot AC and DC trigger switches (right) are marketed globally to power tool manufacturers such as Black and Decker, Makita, Milwaukee Electric Tool, Porter Cable Ryobi and S-B Power Tool. Eaton sells ap proximately 20 million power tool switches including the manufacture of automotive controls as well as engine valves and precisionforged gears. Eaton seeks opportunities in India and other annually. Eaton's diverse variety of automotive controls include power lumbar seat switches and door-lock switches (top middle). The headlamp switch (inset) is manufactured for the Ford Contour and Mercury Mystique, and the window Aslan countries to increase market share for hydraulic pro ducts, including motors and steering units. Brazil--a dynamic economy For 40 years, Eaton has been a participant in the Brazilian automo tive industry. During that period, the company has broadened its product lines and markets. Today, Brazil's dynamic economy is important not only as a production source to help satisfy Eaton cus tomers, but also as a market for key components. With a population exceeding 150 million. Brazil's per capita income is roughly 20 percent of that in the U.S. at purchasing power parity. And while Brazilian GDP growth in 1996 is estimated to have been less than 3 percent, growth prospects are outstanding. In 1996 Eaton purchased CAPCO, a manufacturer of light- and medium-duty truck transmissions in Brazil. With the addition of CAPCO, Eaton sales in Brazil now up-down module (above inset) is manufactured for GM. Through the use of an electronic memory, the seat switches (upper left) auto matically bring the driver's seat into one of two positions previously exceed $200 million. entered when drivers depress button "1" or 2." The control module Eaton also manufactures engine valves for a num ber of customers in Brazil, including Ford and Fiat. Other automotive components that Eaton intends to (center left) is for Chrysler's Jeep Grand Cherokee, which has multi plexed components that substantially reduce vehicle wiring. begin manufacturing in Brazil include viscous fan drives and locking differentials. Utilizing technologies from Europe. Eaton is expanding its Brazilian auto motive controls business. A high proportion of the vehicles assembled in Brazil and other emerging markets are models designed in Europe. Since Eaton's automotive controls businesses have strong market positions in Europe, the company is well-positioned to participate in the growth of its European customers in Brazil. Eaton Controles Ltda. in Sao Paulo, which is part of the company's Appliance Controls Operations--World wide, manufactures components such as appliance timers, pressure switches, water valves, and drain and circulation pumps--making Eaton a leading supplier of these components in Latin America. Sales have been growing in this business at more than 15 percent a year. 1J is