Document KRJ5RJXRawej5NM6yym6DqZE2

flistrlDution ol me Income Dollar 19EQ .561 1362 1965 *96-1 ICt 2Dc 30f 40< 50' 35 3c 364c 37 4c . 3= 2c 36 8c 324 31.7 30 7 30.0 3U WaE6S* -alafes< ard 0ther Benefits Pforuclioo Mater ats 13.6 18.5 17.8 17.7 16.0 Sipp| ci and E`Pense* 46 4.6 4.5 4.5 4.3 jjjpjpH Depieciation and flmcrtizst on of Intangibles ni 1.4 1 4 1.1 ! 11 | Property, Excise, and Miscellaneous Texes 4 5 .6 6 6 | Interest on Borrowed Money 3.8 2.4 l.l 100.01 3.6 2.4 9 100.0c 4.3 34 20 2.1 1.6 1.4 i 1000c i:ooc 41 Taxes on Income 1.9 ^ Cast Dividends 2.1 H Seinvestea in The Business ICO Of 1964 irincuuro* 5 88,968 75224 43,549 '.0.423 2.656 1,459 3,900 4,642 ' 5,120 ; 5241,941 substantially higher speeds, pressures and tem peratures than existing pumps. Different mate rials in combination with design innovations make this, in effect, the first of a new genera tion of pumps, and its initial use is on the F-lll aircraft. A new se rvovalve. designed and placed in pilot production last year, has excellent potential for both aerospace and industrial application. A considerable number of components and systems were also successfully developed for specific aircraft or missiles. EMPLOYEE RELATIONS The number of employees increased to approx imately 13.500 from 12,900 in the preceding year. Employees in the United States totaled 9.900. in Canada 1.800 and our international operations employed 1.800 people in Europe and Mexico. The average annual compensation per employee was the highest in the history of the company. A major work stoppage, which lasted twentyeight weeks, occurred at the tire mold plant in Athens, Ohio, and involved approximately 300 hourly employees. The principal areas of dis agreement involved the company's right to arrange production schedules and work assignmen ts--in short, the right to manage the plant efficiently. A settlement reached in October retained these management rights for the company. This was a costly strike for the employees, the community and the company. The employees lost more than six months' wages and the com munity lost the input of the plant payroll to its economy. The company lost six months' production and sales plus the time and effort required to return the plant to its former level of production. Despite the cost, it was vital for us to retain essential management rights while maintaining otir policy of fair treatment to em ployees and bargaining in good faith. With the exception of the Athens plant strike, there were no work stoppages of lengthy dura tion and relations with employees and unions remained satisfactory. In April, Mr. Dunn, chairman, met with Presi dent Lyndon B, Johnson and a group of other industry leaders in Washington to pledge the company's support for the President's "Plan for Progress", which is a program designed to stimulate voluntary action to create in, the na- SCI 01928