Financial overview

(in millions dollars)	FY2007	FY2006	Rate of change (%)	Factors
Sales	2,511.2	2,164.3	16.0	See factor (1)
Operating profit	(29.7)	64.3	-	See factor (2)

Factor
(1)
-Net sales increased from $2,164.3 million in 2006 to $2,511.2 million in 2007, an increase of $346.9 million, or 16.0%. The increase resulted primarily from the acquisition of MAPS and El Jarudo, favorable foreign exchange rates ($86.9 million) and higher unit sales volume partially offset by customer price concessions.
In North America, the sales increased by $67.0 million primarily due to the acquisition of El Jarudo and $20.2 million of favorable foreign currency translation, partially offset by lower unit sales volumes and customer price concessions.
In the international operations, a sales increase of $279.9 million was attributable to a combination of factors including the acquisition of MAPS, $66.7 million favorable impact of foreign currency translation and higher unit sales volumes partially offset by customer price concessions.
(2)
-Operating loss in 2007 was $29.6 million compared to an operating profit reported in 2006, of $64.3 million. This decrease is primarily due to the impairment charges of $146.4 million and an increase in selling, administration and engineering expenses primarily due to the acquisitions of MAPS and El Jarudo, partially offset by gross profit increase of $64.9 million.


Contracts
Its products are found on the following platforms
-Body & Chassis Products: Ford F-Series, GM GMX 211 (Impala), GMT900 (Silverado/Tahoe/Yukon) and Ford B Car (Fiesta/Fusion)

-Fluid Handling Products: Ford F-Series, GM GMT800/900 (includes Yukon, Tahoe, Sierra, and Silverado), Dodge Ram, and Ford B Car (Fiesta/Fusion)

-The Company's three plastic assemblies are found in several new Nissan vehicles, with the use of DuPont(TM) Zytel(R) HTN PPA. The first assembly is an electric water valve assembly for the Nissan Titan, Armada and Quest, with a new, integrated design that reduces four component parts into one assembly for significant cost savings and a 40 % weight savings. The second assembly is an electric brushless pump for rear HVAC systems on the Nissan Quest. It incorporates 11 discrete components into one integrated assembly, cuts weight by one-third, streamlines packaging significantly, increases the motor's life expectancy by 500 percent and greatly enhances vehicle cabin comfort. The third assembly is a transmission thermal valve assembly for the Nissan Sentra that takes half the weight out of a heavy, multi-piece metal component, integrates multiple functions and eliminated costly fittings.


Acquisition
-In March 2007, the Company completed the acquisition of the fuel rail manufacturing business from Automotive Components Holdings, LLC. The business is located in El Jarudo, Mexico and is a producer of automotive fuel rails.

-In August 2007, the Company acquired the MAPS business, including nine sealing systems operations in Germany, Italy, Poland, Belarus, and Belgium, and a joint venture interest in China.

-In December 2007, the Company completed the acquisition of a 74% joint venture interest in MAP India.

R&D Expenditures

(in millions dollars)	FY2007	FY2006	FY2005
Total	77.2	74.8	65.6

R&D Structure
-The Company operates 9 design, engineering, and administration facilities throughout the world and employ 665 research and development personnel, some of whom reside at customers' facilities. The Company utilizes Design for Six Sigma and other methodologies that emphasize manufacturability and quality, and is expanding the capabilities with new systems for Computer Aided Design, Computer Aided Engineering, vehicle testing, and rapid prototyping.


Product Developments
-Body Sealing Products : To further its capabilities, the Company exchange plastics technology with Nishikawa Rubber Company, one of its joint venture partners, and are currently cooperating on the development of a protected "Blown sponge plastic" process as well as other plastic applications with its customers.
The Company is also currently collaborating on several customer-funded, advanced engineering projects with Ford and GM.

-NVH Control Products: The Company recently developed ENVIsys, an advanced electronic system for the active control of noise and vibration for commercial applications. ENVIsys products have a wide variety of potential applications, including aircraft, rail, heavy truck, automotive, and mining equipment.