Document gDjMDv8Qd8KaeBzb5RemQBzXJ

VEHICLE COMPONENTS your ma/or engine component products toe wires and lifters. Are you expanding beyond these core technologies .' We're really a valve irain systems supplier ami have been since the 1940s. Besides valves and lifters, automakers often call on us to specify other components, such as valve seats, valve guides, rocker amts, springs and retaining devices, all of which are pan of rhe valve train system. We continually seek opportunities to integrate and coordinate these components to supply a reliable and cost-effective system for our customers. Wluit is the next big technological develop ment in the wire train market? The ever-present demands for fuel economy and improved emissions control are leading toward variable valve train actuation and con trol mechanisms, which arc feasible now because of improved electronic technology. The desire to reduce noise, vibration and harshness also drives this technology. Eaton will be a leader in this technology in the next few years as we continue to reduce the si/e and weight of salve train components CONTROLS us the multiplexing contract for the Cherokee. We also penetrated Mitsub with a number of our xu iteh products, cessfully integrated a line of switches from Illinois Tool Works, and opened' new plant to manufacture valves for conditioning systems. Q. Did the appliance business suffer the fate: good in North Ameriea. poor in a. Yes. but the difference was not quite The European appliance markets held better than we anticipated. The drastic in relative currency values early in I demonstrated the necessity of multi sourcing, and we've transferred sig production into Eastern Europe. In Not America, the market for white goods driven by new home construction than to be. In fact, estimates are that up to cent of white goods demand is now consumers replacing old appliances, good for Eaton. Top-end appliances more features and more of the type of cal and electronic controls that l-.aton y. Whnt about commercial and military a. The commercial markets made a very recovery. The market for portable lool switches, lull-si/e power switches and 4 TOP: Eaton s limited-slip and locking differentials offer optimal traction for passenger cars and light trucks under; rotid conditions. second from top: This award-winning Eaton electronic range control, used on GE's "Quit range, assures oven temperature accuracy within plus or minus 10 degrees. third from top: Cutaways components of Eaton s lightweight bucket lifters, which are manufactured in Masso. Italy, for major European automakers. bottom: Ford s "world" car. named the Mondeo in Europe, features Eaton steering column swif