Document nkv12oNgGr1BrXG5gdzQdBvbw

steel production, were off slightly from 1966. These shipments were affected by the slug gishness which occurred in most of these industries during the second half of the year and also by unusually large customer inven tories. In addition, the copper strike elimi nated shipments to that industry in the latter part of the year. Sales of car wheels and trackwork declined from the previous year, since railroads oper ated at a lower level in 1967. Carloadings and revenue ton-miles declined for the first time in five years. This affected sales of our prod ucts, since about 85% of our railroad ship ments are for replacement parts. Also, the railroads were inclined to defer equipment purchases because of appreciably lower earn ings and lack of the 7% tax credit, which was rescinded in 1966, but was not reinstated in sufficient time to favorably affect 1967 spend ing programs. Through its continued program of special ization and careful product selection, the wear control group has shown good per formance and opened up many areas for growth.