Document wgz13pvxDVgkJ8EJMZnzkEN2Q

COMPONENTS VBHlOtB helped us increase market share. And though our poiliully automated transmission. called AuloScIcet. is very young, il's generating .1i, .>1 industry excitement as we go into a limited launch this year. Will the North American t ree Trade Agreement increase demand for henry tracks :' Absolutely, especially in Mexico. As the Me Mean economy continues to expand, and as the country improves its highway system, Mexico will become one of the world's fastest-growing markets lor long-haul trucks, and Eaton will benefit accordingly. What's the oatlaok for Eaton 's Engine ('omponents businesses? Wc'vc seen excellent growth, and we expect it to continue. The strong North American automotive performance has been a big factor. Another factor is the enduring trend ward engines with four valves per cylinder, instead ol two. which means more demand not only for valves but tor hydraulic adjusters CONTROLS Europe. We made five acquisitions in that same period that have repositioned our Commercial & Military Controls business as a leader in aerospace controls. Navy controls, commercial switches and circuit breakers. In our Semiconductor Equipment niche, ion implanters. we are also a world leader and have increased penetration in the important Japanese market. Our substantial position in each of these businesses gives us important competitive advantages. Q. How did the company's automotive controls businesses perforin in 1993? a. In North America, performance was very strong. European automotive markets were down about 15 percent, and we're not looking for any improvement in 1994. We've restructured and significantly reduced employment levels in our German automotive con trols business in the last two years, which positions us to profit handsomely as Europe recovers from the recession. The North American business had solid growth. We re particularly excited about the quickly acceler ating interest in multiplexing, which involves replacing hundreds of wires in automobiles with a single twisted pair. We're a leader in this technology In 199.'. Chrysler awarded . vpi Eaton outkes millions of viscous fan drives vearlv in both Europe and the United Slates. At its factory in Germany. Eaton manufactures both fans andfan drives for passenger car and truck builders. bottom: Eaton makes over 100 million automotive switches a rear, including these for Diamond-Star Motors which will control power feu- T i I