Document qk4bQZ6w5Nwz4mpkxz6mrZNVK

c Shipments of hydraulic products Hydraulic in 1965 amounted to $53,600,000, Pmilirpto a five per cent gain over 1964rniUllbla Sales of industrial hydraulic equipment Increased 10 per cent while those for aerospace appli cations declined slightly. The United States aerospace business showed sizeable gains in shipments, while Canadian and European shipments were down due to a time lag between the phasing out of older aircraft and the start of high volume production of new planes. The major markets for industrial hydraulic equipment include earthmoving and construc tion equipment, mining machinery, metalwork ing and other industrial equipment. Denison Division in the United States made sales gains in all of its major markets. Denison plants located in four European countries also increased sales in each location. The advantages of hydraulic power are receiv ing more recognition from design engineers and it is bejng employed in new kinds of machines each year. Examples include fully-hydraulic backhoes, hydraulically powered concrete mixers and railway track maintenance machinery that utilizes hydraulic instead of mechanical power for the working tools. Denison has developed equipment for these applications and succeeded in obtaining a significant share of this new business. The marine market also continues to grow both here and abroad. In the last two years, improved piston and vane pumps with lighter weight and improved dur ability have been developed and introduced to the market. In 1965 continued progress was made in expanding the line of pumps, motors and con trols to include more models and to increase versatility. The effect of this is to open new appli cations for Denison equipment. Denison marketing organizations are being es tablished in several additional countries to extend and intensify sales coverage in areas where the market for industrial hydraulic equipment is developing. A new office building was completed during the year, in Hilden, West Germany, for the ad ministrative, marketing and engineering depart ments of the Denison Division in Europe. Increased needs for both military and com mercial aircraft were reflected in a large volume of orders for our airborne hydraulic equipment. Additional orders were received for equipment on the McDonnell F-4 program, General Dynam ics' F-111 plane, the Lockheed C-141 transport, Boeing-Vertol helicopters and Grumman military aircraft. An important volume of equipment was also shipped for the Titan III, the Saturn Sll and several military missile programs. In the commercial jet field, the Aerospace Di vision had an important amount of orders for Boeing aircraft and a growing business with major domestic and international airlines. This commercial business more than doubled in 1965. Jarry Hydraulics Division in Canada was se lected as one of the suppliers for landing gear on the new Boeing 737, the first specification of landing gear for a United States commercial jet plane from a Canadian source. Aerohydraul Division in West Germany has obtained orders for delivery in 1966 of hydraulic pumps on several new aircraft programs in Euro pean countries, including Sweden, West Ger many and Italy. With a large order backlog, the work force at all aerospace hydraulic plants will be increased in 1966 and both shipments and earnings should :( i page nineteen SCI 01658