At a Glance

In 2007, our market leadership continued to generate strong orders that provided very profitable returns in all areas of our business. Additionally, our balanced defense/commercial markets and broad platform exposure provided stability for investors, as well as numerous opportunities for growth. The results we saw in 2007 reinforced our belief that our focus on engineering excellence, performance, and reliability is desirable on any high-performance platform.

Flow Control

Electro-Mechanical Systems

Highly engineered pumps, motors, generators, and power conditioning electronics for the defense, power generation, oil and gas, and general industrial markets.

Valve Systems

High-performance specialized valve solutions and web- enabled software that control the flow of liquids and gases and prevent over-pressurization of vessels, pipelines, and equipment for the defense, power generation, oil and gas, and general industrial markets.

Control Systems

Specialized electronic instrumentation and control equipment, including custom and commercial-off-the- shelf (COTS) electronic circuit boards and systems for the defense and processing markets.

Commercial Power & Services

Design, manufacture, distribution, and qualification of flow control products for nuclear power plants, hydroelectric energy producers and the Department of Energy.

Oil & Gas Systems

Design and manufacture of valves and vessel products for the oil and gas refining market. Primary products include coke deheading systems and fluidic catalytic cracking unit (FCCU) components.

2007 Milestones

• Awarded $293 million nuclear power contract in China
• Achieved organic sales growth of 13%
• Acquisitions of Benshaw, Scientech and Valve Systems & Controls

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Motion Control

Engineered Systems

Actuation components and systems for flight control, weapons handling systems, utility actuation, turret aiming and stabilization; suspension systems for military vehicles and high-speed trains; and shipboard helicopter handling systems.

Embedded Computing

Ruggedized custom and commercial-off-the-shelf (COTS) electronic boards and subsystems for high-density data processing, including radar and graphics, custom software design and hardware manufacturing services for the military aerospace, ground and naval markets.

Integrated Systems

Position, pressure, temperature, smoke and ice detection sensors, solenoids and solenoid valves, air data computers, flight data recorders and joysticks for military and commercial aerospace and industrial markets.

2007 Milestones

• Laser peening awards for aircraft wing shaping and steam turbine blades
• Achieved organic sales growth of 12%
• Opened new facilities in Köping, Sweden and Seville, Spain

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Metal Treatment

Shot Peening

Enhances the durability and reliability of critical metal components such as aircraft landing gear, turbine engine airfoils, automotive suspension and transmission parts, critical fasteners and welded structural supports. In addition, it is also used to shape the aerodynamic curvatures of the wing skins of numerous commercial, military and business aircraft.

Laser Peening

Provides a beneficial layer of compressive stress that is four times deeper than can be achieved by shot peening, extending the service life of high-value critical components, and it is proving to be a complementary service to shot peening.

Specialty Coatings

The application of solid film lubricant and zinc rich coatings for sliding wear, anti-seizing and corrosion resistance in the automotive/transportation, commercial aerospace and defense markets.

Heat Treating

A precision thermal process that subjects metal objects to extreme heat and/or cold temperatures to improve their overall strength, ductility and hardness. Primary markets include automotive/transportation, commercial aerospace, oil and gas, power generation and defense.

2007 Milestones

• Awarded contract to supply actuation systems on 747-8
• Awarded contracts to supply shipboard landing systems for Sikorsky helicopter
• Achieved organic sales growth of 14%
• Acquisition of IMC Magnetics