Financial Overview

(in million dollars)

	FY2010	FY2009	Rate of change (%)	Factors
Overall
Sales	1,448.2	1,162.6	24.6	-
Operating Income	9.2	(20.2)	-	-
OE- Asia
Sales	63.9	32.2	98.4	-
OE- Europe
Sales	546.7	469.3	16.5	1)
OE- North America
Sales	527.1	412.9	27.7	2)
South America
Sales	158.9	117.6	35.1	3)

Factors
1)
OE- Europe
-Fiscal 2011 sales have increased primarily in the premium automotive and commercial vehicle markets.

2)
OE– North America
-The sales volume recovery in 2011, specifically in the commercial vehicle, agriculture and construction markets, resulted in strong revenue and operational results.

3)
OE- South America
-Net sales improved $41 million in fiscal 2011, as sales volumes recovered from the economic downturn in the Brazilian commercial vehicle and agriculture markets as well as within the Brazilian aftermarket business.

Plant Closure

-The company has completed the closure of its manufacturing facility in Pemberville, Ohio, USA, during the fourth quarter (January - March 2010) of FY2010. The plant produced copper-brass radiators and other vehicle heating and air conditioning components. (From a press release on June 3, 2010)

R&D Expenditure

(in million dollars)

	FY2010	FY2009	FY2008
Overall	67.0	56.9	73.2

R&D Structure

-To achieve efficiencies and lower developmental costs, the Company's research and engineering groups work closely with its customers on special projects and systems designs.

Patents

-It has been granted and/or acquired more 2,000 patents worldwide over its life.

R&D Activities

-Recent R&D projects have included development of waste heat recovery systems for major U.S.-based engine and truck manufacturers in conjunction with the U.S. Department of Energy to help these manufacturers meet ever increasing demands for emissions reduction, while simultaneously improving powertrain efficiency and, thus, fuel economy; next generation aluminum radiators for the commercial vehicle, agricultural and constructions markets; and EGR technology, which enables our customers to efficiently meet tighter regulatory emissions standards.

Capital Expenditure

(in thousand dollars)

	FY2010	FY2009	FY2008
Original Equipment- Asia	10,796	8,036	16,047
Original Equipment- Europe	24,957	36,640	54,485
Original Equipment- North America	11,329	12,919	25,949
South America	4,127	2,532	3,970
Commercial Products	3,857	1,871	2,157
Corporate and administrative	(5)	(1,922)	-
Capital expenditures- continuing operations	55,061	60,076	102,608
Capital expenditures- discontinued operations	-	221	653
Total capital expenditures	55,061	60,297	103,261