1. AMERICAN CRANE & TRACTOR PARTS INC. October 31, 1999 21YA INTERNET:http://www.actparts.comCOMPETITIVE TYPE:Distributor RebuilderMAJOR PRODUCT CLASSES:Undercarriage Engine GETDrive Train HydraulicsLOCATIONS: Headquarters - Kansas City, KS ---According to http://www.machinerytrader.com/americancrane/index.htm AC&T claims a 70,000 sq. ft. facility with an additional 15 acres of outside storage. (2/97) ---AC&T claims to have a warehouse in St. Louis. (AC&T Brochure received 9/96, effective date unknown) ---Related Concerns: -Tri-State Tank Helm-Paul Development Co. Garsite/TSR Tri-State Refueler Co. TSI Holding Inc.Kansas City, KS Kansas City, KS Kansas City, KS Kansas City, KS Kansas City, KSIntercompany relations for the above are confined to sharing Melvyn Paul as a principal. (2/98 - D&B) EMPLOYMENT:Jul Aug Aug Jun Sep Feb1986 1988 1991 1993 1994 1995 1996 1998= = = = = = = =21 27 40-45 40-45 40-45 40-45 40-45 40-45(6/86-D&B) (3/89-D&B) (8/92-D&B) (11/93-D&B) (12/94-D&B) (1/96-D&B) (2/97-D&B) (2/98-D&B)Employees vary with workload. (2/98 - D&B)

2. ---Chief Executive is Jeffrey A. Weiner (President, Treasurer). Melvyn Paul is Vice President. (2/98 - D&B) ---AC&T reportedly has one PSSR on the road. (5/88 - KC District) AC&T also utilizes telemarketing reps, but field reports on the number is contradictory; 6 (1/88), 4 (5/88), and 10 (3/89). SALES: Fiscal year ends 12/31. 1986 1991 1992 1993 1994 1995 1996= = = = = = =$4,000,000 projected 9,067,961 9,849,965 9,355,291 8,813,092 10,564,163 11,900,178---(6/86 - D&B) (8/92 - D&B) (11/93 - D&B) (1/95 - D&B) (1/96 - D&B) (2/97 - D&B) (2/98 - D&B)WORTH: 1988 1989 1990 1991 1992 1993 1994 1995 1996= = = = = = = = =$ 13,563 512,379 131,345 106,161 597,841 839,286(8/92 - D&B) (8/92 - D&B) (8/92 - D&B) (8/92 - D&B) (11/93 - D&B) (1/95 - D&B) (1/96 - D&B) (2/97 - D&B) (2/98 - D&B)HISTORY: 1982 1985-1987 1994-July, Business started as a used-equipment broker. June, Relocated from 3500 Manchester Trafficway to 4601 Van Brunt Extension--began to more aggressively pursue the will-fit and used-parts businesses. Ownership change, purchased by Jeffrey A. Weiner and Melvyn Paul. June, relocated from 4601 Ban Brunt Extension, Kansas City, MO to 2200 State Line, Kansas City, KS. (1/95 - D&B)PRODUCTS: Specializing in Caterpillar parts and components. Offers new replacement, used and rebuilt parts. AC&T rebuilds most major components. (5/98 - Internet) ---- 3. Invertory value as of December 31, 1996 is $2,403,562. (2/98 D&B) ---Call or fax for instant quotes and same day shipments on new replacement, rebuilt and used Caterpillar and BucyrusErie parts. Hundreds of rebuilt components on the shelf including transmissions, torque convertors, pumps, final drives, differentials, and much more all tested before shipping. (2/97 - Machinery Trader, Internet) ---Wholesales new and used crane and tractor components and parts for general construction equipment (100%). (2/98 D&B) ---AC&T offers new, reconditioned, used, and attachments. Below is an overview of each: New Replacement Parts - AC&T stocks a variety of new parts, including transmission, final drive, and engine components, oil cooler and radiator cores, hard bars, hydraulic cylinder seal kits, trunnion balls and other dozer blade parts, oil pumps, reversible fans, bucket control levers, bearings, and gaskets. AC&T supplies new undercarriage parts for Caterpillar, John Deere, International, Fiatallis, Clark-Michigan, and many other makes. AC&T also supplies new parts, from the turntable down, on a variety of cranes, draglines and shovels for Bucyrus-Erie, Northwest, American, Linkbelt, Manitowoc, and others. In addition to the thousands of new parts AC&T stocks, they will try to locate parts for all other makes and models. (1/89 - AC&T Customer Letter) Reconditioned Replacement Parts - American Crane & Tractor Parts supplies a variety of replacement parts as reconditioned. When used equipment is disassembled, some parts are worn too badly to be sold. If possible, the part is reconditioned. If a customer needs a final drive off a D9 dozer and doesn't have the time or manpower to recondition a good take-off, American Crane will replace all the bearings and seals and put a 90-day warranty on the complete final drive. Most of American Crane's rebuild parts offer the 90-day warranty (from date of installation), but there are exceptions, like crankshafts-- most carry six-month warranties. American Crane requires each core be shipped to them prepaid and assembled regardless of the condition of the core, there are NO CHARGEBACKS! (1/89 - AC&T Customer Letter) Used Replacement Parts - Field mechanics constantly disassemble used equipment and the used parts are thoroughly cleaned prior to inspection for quality. The parts are then graded based on the level of serviceability remaining. For example, a complete front idler is measured and may then be supplied as having 60% wear left. An idler with only 30% wear left may still be available for sale and it is priced accordingly. A final drive may be supplied as a good takeoff in which case it's opened and inspected and AC&T guarantees the major internal components to be serviceable, but do not guarantee bearings and seals. AC&T usually supplies engines as good running take-outs that are tested on a dynometer prior to shipping. AC&T provides a 30-day warranty on dyno'd engines (from date of installation) against major failure. (1/89 - AC&T Customer Letter) Attachments/Options - Availability of attachments, including buckets, rippers, blades, drawbars, winches and fairleads varies and pricing is based primarily on condition. Often in order to supply a good blade, AC&T will reface it with 3/8" T-1 steel. Other parts like hitches or hitch brackets are available as well. AC&T has a variety of OROPS and EROPS and many different types of cabs. AC&T will try to locate what the customer needs if they don't have it. (1/89 - AC&T Customer Letter) ---In reviewing information from P.I.E.R.S. (Port Import Export Reporting Service) there is no evidence to indicate that AC&T is a direct importer from any manufacturers. AC&T is importing components from two end users in the 4. Bahamas, presumably for rebuild and return. (8/92 - P&SM, Mkt. Res.) ---Brands AC&T has reportedly carried and effective date of information: BrandDate (Source*)DescriptionGenuine Caterpillar American Alloy Simmel Berco Intertractor IPD Italtractor Esco Valk Mfg. Co. Ford Steel Co. American Crane Equipment** AE Clevite Ghinassi NAPA SIRT Federal-Mogul "Bulldog" (Heavy Eq. Pts. Co.) NTN-Bower Corp. Vickers Inc. Reco Italia Superior Regal Equipment** Ajax OFM (Mosca) Schwitzer Timken Vickers FP Phillips Gasket1995 (CPRs) 1/88 1/92 (CPRs) 1996 (CPRs) 1/94 (AC&T Video) 1/88 1996 (CPRs) 1994 (CPRs) 1995 (CPRs) 1995 (CPRs) 7/91 (CPRs) 1/94 (AC&T Video) 7/91 (CPRs) 1995 (CPRs) 1/91 (CPRs) 1/87 5/86 10/91 (CPRs) 10/90 (CPRs) 1/92 (CPRs) 1996 (CPRs 1996 (CPRs) 1/94 (AC&T Video) 1/94 (AC&T Video) 1/94 (AC&T Video) 1/94 (AC&T Video) 1/94 (AC&T Video) 1996 (CPRs)DT, HYD U/C U/C U/C U/C Segments -U/C GET GET GET Eng. Eng. Eng., Hyd, DT Eng. DT Bearings Seals & Gaskets A.F. Bearings Hyd. Hyd. Cylinders Hyd. Gen., Hyd., DT, Oth. Hardware Turbos AF Bearings Hyd. Pump/Motor Gaskets*Source is P&MR's Competitive Information Library unless noted. **Not a manufacturer. QUALITY: "Each part we sell is backed by our 100% complete satisfaction guarantee." (5/98 - Internet) Parts Competitive Bulletins (PCBs) and/or Competitive Test Reports (CTRs) are available on some of the brands AC&T carries. (2/97) MARKETING: 5. New Internet online quote & order system 10/31/99 - AC&T recently announced their all-new Internet e-commerce Quote & Order System. They have redesigned their site, making it faster, flexible, more efficient and easy to use. Use requires registration. Site includes real-time pricing and availability. Frequently Asked Questions/Answers information is available at http://www.actparts.com/ACTP.ASP?WCI=GotoFAQ&WCU#Q8A (10/99 - AC&T, http://www.actparts.com/) ---AC&T exhibited at the following trading shows: the Expo Mineria '95 trade show, October 18-21, 1995, in Acapulco, Mexico; MINExpo International '96, September 9-12, 1996, in Las Vegas, Nevada; and CONEXPO-CON/AGG '96, March 20-24, 1996, Las Vegas, Nevada. ---Advertises in Rock and Dirt magazine. (6/94) PRODUCT SUPPORT: Offers Toll Free 800 Number. (1/94-AC&T Video) WARRANTY: Warranties on all new parts meet or exceed OEM warranties; complete warranties on all rebuilt components; used parts include warranties which guarantee complete satisfaction or we pay freight both ways. (2/97 - Machinery Trader, Internet. ---Return freight policy--anything AC&T ships which doesn't meet the condition as represented, can be returned; will pay freight both ways. Additional warranty information is overviewed under the Reconditioned Replacement Parts and Used Replacement Parts subtitles of the PRODUCTS section. (1/89 - AC&T Customer Letter) PRICING: Transaction level price observations are available in the Competitive Parts Reports (CPR) portion of PMIS. (2/97) DISTRIBUTION & GEOGRAPHIC AREAS SERVED: AC&T claims parts and components can be shipped anywhere in the world. (2/97 - Internet) ---The following Caterpillar dealers have submitted Competitive Parts Reports (CPR) during the latest 8 quarters, as of 2/97: NACD - West Texas Eq. - Dean Mchry. - Southworth-Milton - Fabick - Thompson Tractor- Darr Equipment - Altorfer Mchry. COSA - Oasis Trading CACO - Tracmac ---Sells to 25 countries; 10,000 customers. (1/94-AC&T Video) ---Information obtained from P.I.E.R.S. (Port Import Export Reporting Service) indicates AC&T is exporting to the 6. following ports: -Jeddah, Saudi Arabia = 3 shipments (5/20/92, 2/25/92, 10/18/91), 27,755 pounds total cargo weight, assorted spare parts for Caterpillar equipment. Damman, Saudi Arabia = 2 shipments (11/14/91 & 4/18/91) 2,579 pounds crane parts and 10,150 pounds road building machinery parts. Abu Dhabi, Arab Em = 1 shipment (12/12/91) 2,600 pounds of extension cylinders for Grove crane. Cartagena, Colombia = 1 shipment (10/18/91) 1,800 pounds of crane boom Chanaral, Chile = 1 shipment (3/22/91) 582 pounds of mower parts. Freeport, Bahamas = 7 shipments (from 1/9/91 - 3/17/92) 124,940 pounds tractor parts and used tractor parts. (8/92 - P&SM, Mkt. Res.)GENERAL: "D" Competitor (major distributor) for DT Gears, etc. (4/00) ---Added to Caterpillar Export Services (CES) Reseller List on Feb. 21, 1992--Caterpillar dealers should not sell parts to this competitor for export resell. ---Regular member of Independent Distributors Association (IDA). (1995 - Membership Roster) ---Member of Telequip national locating and selling network for construction equipment salvage yards. (6/91 Membership Listing) ---Member of Peed Parts & Machinery Network. (2/97 - Internet Membership Listing) APPARENT MARKETING STRATEGY: Primary focus has been on mines: 637s, D8s, D9s, etc. (3/89 - NACD, Peoria District) ASSESSMENT OF STRENGTHS: Offers new, used, and rebuilt components. Also, AC&T uses locating services to find "even the most difficult to supply parts." (1/89 - AC&T Customer Letter) ASSESSMENT OF WEAKNESSES: Not a direct importer, causing AC&T to pay more for their new parts. (8/92 - P&SM, Mkt. Res.) ---Warranty is perceived as a weak spot. Heard several instances where American Crane did not stand behind their product. (3/89 Dan Frey, Dean Machinery) FUTURE OUTLOOK: Financial condition good. (2/98 - D&B) LAST D&B: February 14, 1998 DUNS (D&B NUMBER): 06-533-8873 SIC CODE/DESCRIPTION: 50 82 Wholesale trade--construction and mining machinery and equipment LAST PROFILE REVIEW/UPDATE: May 7, 1998 (Minor update 10/31/99) 7. APPLIED INDUSTRIAL TECHNOLOGIES INC. (Name changed from Bearings Inc., 1/1/97) June 14, 1995 21GI INTERNET:http://www.appliedindustrial.comCOMPETITIVE TYPE:DistributorMAJOR PRODUCT CLASSES:Engine Drive Train Hydraulics General Usage Not Elsewhere ClassifiedLOCATIONS: Headquarters-Cleveland, OHAt headquarters location 3600 Euclid Ave. and at neighboring 3634, 3940 and 3950 Euclid Ave.; owns four separate two story masonry buildings with about 98,000 sq. ft. of usable floor space. To the rear of the parking area is a small masonry building housing the company's spindle laboratory. (3/93 - D&B) Branches - Dixie Bearings Inc. - Bruening Bearings Inc. - King Bearing Inc. - Mainline (6/95) EMPLOYMENT:Jun Jun Jun Jun1981 1983 1991 1992 1993 1994SALES:-2,800 (220, headquarters) 3,000 (250, headquarters) 4,225 4,050 (275, headquarters) 3,986 4,066(7/81 - D&B) (6/83 - D&B) (1993 Annual Report) (3/93 - D&B) (1993 Annual Report) (1994 Annual Report)Fiscal year ends June 30. YearSales---Net Income (Loss)1984 1985 1986 1987 1988 1989 1990 1991 1992 1993$451,955,000 495,529,000 490,249,000 490,995,000 542,883,000 630,281,000 651,271,000 814,000,000 817,813,000 831,432,000$11,002,000 11,011,000 2,244,000 6,247,000 14,948,000 18,313,000 12,201,000 4,282,000 (1,666,000) 8,927,000Worth ------135,338,000 134,203,000 128,830,000 --(1993 Annual Report) (1993 Annual Report) (1993 Annual Report) (1993 Annual Report) (1993 Annual Report) (1993 Annual Report) (3/93 - D&B) (3/93 - D&B) (3/93 - D&B) (1993 Annual Report) 8. 1994 1995936,254,000 1,030,000,00012,687,000 -(1994 Annual Report) Projected as of May 12, 1995 (5/95 Value Line) ---Sales increased in 1994 pricinpally due to volume increases and the acquisition of Mainline Industrial Distributors, Inc. (1994 Annual Report) ---Sales increased in 1993 primarily due to price increases. (1993 Annual Report) ---Results for fiscal 1992 were affected by the persistent weakness in the industrial economy. Sales increased in 1992 primarily from price increases of approximately 2%. (1993 Annual Report) ---During fiscal year 1992 Bearings recorded a restructuring charge of $7.8 Million for closing four of eleven distribution centers, the consolidation of 16 branches, two rubber product service centers, an international facility, and for the reorganization of the sales regions and administrative functions. (1993 Annual Report) ---Export business was less than 2% of net sales in fiscal 1992. (3/93 - D&B) ---Recently Settled Litigation Won't Hurt Bearings Inc. 8/92 - In June, a California jury made a $32.4 million award against Bearings Inc.'s King Bearing unit. But this suit was ongoing when Bearings acquired King, and the deal ensured at that time that the company wouldn't be liable for any damages resulting from the litigation. (8/14/92 Value Line Report) ---Finishes Fiscal 1992 On A Down Note 8/92 - Fiscal 1992 was one of the worst years for Bearings Inc. in the past two decades. The company continues to suffer from weak economic conditions, which have lowered operating rates at the nation's factories, and have hence reduced demand for the bearings and power transmission products that Bearings Inc. distributes. A high debt load is still a problem. In 1990, the company acquired King Bearing in an effort to expand its geographic base, broaden its product line, and boost volume. Shortly after the purchase, market conditions deteriorated, and the debt taken on to finance the acquisition has put a damper on earnings. Low short-term rates have helped offset the effects of the elevated debt levels, but the company would be at the mercy of the markets if short-term rates started to rise. The company, however, is poised to fare better in fiscal 1993. Bearings incurred a $7.8 million pretax restructuring charge in the June period, reflecting warehouse consolidations and overhead reductions. The savings from this move should provide a nice bottom line boost for 1993. Moreover, if the economy gathers momentum over the next twelve months as expected, Bearings' volume-sensitive earnings will likely grow. And with imports being restricted, the company will likely be able to put through price increases. (8/14/92 - Value Line Report) ---Net Income Falls/Trend Likely to Improve 2/91 - Net income in the first half of fiscal 1991 (year began July 1) plummeted to a fraction of the year earlier level. Much of the shortfall can be attributed to the acquisition of King Bearing on June 29, 1990. This company was barely profitable at the time of its acquisition, so the combination of lower margins, higher interest expenses, and a weakening economy continue to batter the bottom line. Analysts look for the profit trend to improve in coming quarters. Bearings Inc. has now completed the consolidation of 30 redundant branches. The benefits of the elimination of duplicative corporate functions will begin to be felt in the 4th fiscal quarter. Also, Bearings Inc. is reducing inventories now that the company's automatic order entry system is up and running and the supply of bearings is dependable. The U.S. economy is currently in a recession. If this lasts much longer than mid-year, 1991, the anticipated earnings recovery would be postponed. (2/15/91 - Value Line Report) HISTORY: 1923 1927 1937 1947 1952-Bearings Inc. founded as Ohio Ball Bearing Co. First branch opened in Youngstown, Ohio First branch outside Ohio opened in Indianapolis, IN Dixie Bearings started Merged with Pennsylvania Bearings, Indiana Bearings and West Virginia Bearings to become Bearings 9. 1957 1965 1967 1983 1989-1990-1994-Specialists, Inc. Dixie Bearings, Incorporated brought into the Company as a wholly-owned subsidiary. Bruening Bearings started Company's stock appeared on the New York Stock Exchange Acquired three corporations and formed a West Coast Division Several single branch acquisitions in California Opened the Jon R. Cunin Distribution Center in Carlisle, OH. Reportedly Bearings' largest distribution center. June, completes the acquisition of Corona, CA headquartered King Bearing. The purchase of King will improve the company's penetration for far western and southwestern markets, enhancing Bearings' ability to provide fast delivery. King has 94 branches, and estimated annual sales of $200M, increasing Bearings Inc.'s sales by approximately one-third. (5/90 - Value Line Report) March 10, Bearings exchanged 196,000 shares of their common stock for Mainline Industrial Distributors Inc., Appleton, WI. Mailine is a distributor of drive systems, rubber products and bearings. (1994 Annual Report)PRODUCTS: Bearings, Inc. is focused on the distribution of Maintenance Repair Operation (MRO) products and services to the industrial aftermarket in North America. Bearings, Inc. is one of America's largest distributors of replacement bearings, electrical and mechanical drive products, fluid power products, industrial rubber products, general maintenance products and related specialty items. In all, the company carries more than 800,000 line items produced by more than 2,500 manufacturers. (1994 Annual Report) ---Comparing 1993 with 1989, Bearings Inc. has changed its product mix as a percent of total sales. -Bearings decreased approx. 11%. Drive Systems increased approx. 2%. Specialty Maintenance Products increased approx. 1%. Industrial Rubber increased approx. 5%. Fluid Power increased approx. 2 1/2%. (1993 Annual Report) ---A customer requested a quote from Bearings Inc. on 112 part numbers. They were only able to offer 44 of them (39%). The requested parts were the consists of the following five Caterpillar bearing kits - 7X7474 (D8N final drive), 7X2875 (789 trans.), 3E7478 (776B/777B trans.), 7X0784 (980C trans.), 9X6537 (D7H trans.) and 10 individual self-aligning bearings. Bearings Inc. was unable to supply any of the 10 self-aligning bearings. (4/93 GKSpringborn, P&SM) ---Sources in Lexington, KY and Knoxville, TN say that Bearings Inc. does not offer bearing kits for Cat applications. (4/93 - GKSpringborn, P&SM) ---Policy is to buy and distribute American made products whenever it can. (9/91 - The Plain Dealer, Business Newspaper) ---The Bearings Inc. group distributed products for many manufacturers, including the following: -American Roller Bearing Co. BCA CR Services Dayco Products Inc. Fafnir FAG Garlock Bearings Garlock Seals Gates Goodyear-INA INA/Andrews Kaydon National Seals Parker Seal Rexnord SKF SNR Timken Co., The Torrington WeatherheadA complete list by manufacturer or by product is in the Bearings Inc., Catalog M in P&SM's Competitive 10. Information Library. (3/93) ---Looking To Diversify Its Products 10/91 - Bearings Inc., whose maintenance and repair business has been eroded by the recession, hopes to expand into faster-growing product lines, including fluid power--such as hydraulic hoses--and specialty rubber items. Bearings Inc. will stick to its policy of buying and distributing American-made products whenever it can. Reportedly, the market for bearings has been growing at 2% a year, far more slowly than the 8-10% growth rate for some other industrial items. Sales of bearings account for about 55% of the company's total sales, but Bearings Inc.'s acquisition of King Bearing Inc., an industrial distributor base in California has given it a much greater presence in agricultural, food processing and pulp and paper industries. King's product expertise is expected to add to Bearings Inc.'s sales of fluid power parts and specialty rubber products such as conveyor belts. In its overall business, Bearings Inc. has been reducing its number of distribution centers, focusing on fewer but larger, more efficient centers. The company had about 15 centers, but it has closed centers in North Carolina, Massachusetts, and Florida. The goal is to end up with 4-6 centers, serving 341 branches. Bearings Inc. operates in 37 states and has 4,200 employees. Improvements to logistics have permitted next day availability to many customers, while the firm stands by to deliver critically needed parts on a same-day basis. (9/13/91 - The Plain Dealer, Business Newspaper). PRODUCT FEATURES: Regarding how Bearings Inc. adds value to the products it sells - "In order to grow in today's competitive environment, a distributor cannot survive simply by being an 'order-taker'. Today's leading manufacturers want distribution partners who understand the issues associated with maintenance and repair, and apply resources to solving problems - often before they occur. So Bearings Inc.'s future growth depends on going beyond simply selling and delivering industrial products. We also provide maintenance training, inventory management and analysis, technical knowledge and product application skills, purchasing management reports, quality reports and more." (1994 Annual Report) QUALITY: In March 1994, Bearings Inc. launched its quality seminar program for customers, which is designed to share the company's quality expertise on a first-hand basis. More than 50 key customers attended the initial program -"Applying Total Quality Management to Purchasing" -- held in Pittsburgh. As part of Bearings' total quality management philosophy, virtually every branch coast-to-coast underwent stringent quality audits. Of 339 branches, 223 are now rated quality "green" by tough auditors. Quality "green" is the way Bearings recognizes facilities and departments for integrating quality processes in customer satisfaction and cycle-time areas. Bearings Inc. associates received an aggregate of 200,000 hours of additional training. Moreover, more than 1,200 quality improvement teams have been put into place across the company solving problems and addressing issues of importance to customers. To date, 4,900 actionable "idea briefs" were submitted by employee associates, many of which have been implemented. (1994 Annual Report) ---Like all successful quality programs - especially those that provide a competitive differentiation - Bearings begins with the top of the organization and involves all 3,986 associates nationwide. Every associate is a member of at least one quality improvement team. In the Cleveland headquarters alone, Bearings has more than 150 quality improvement teams currently working on best practices so that corporate functions are lean and very cost-effective. In the last year Bearings has generated more than 1,000 ideas from the continuous improvement process. The BI Center for Quality was created to anchor the company's quality efforts and provide a database of information on the success of Total Quality Management (TQM). Toward the goal of 100 percent error-free and on-time, Bearings Inc. currently is about 99 percent on-time and 99.2 percent error-free. Bearings believe world-class is 99.8 percent, and that's where Bearings is headed. (1993 Annual Report) ---The following is a quality statement from Bearings Inc.'s 1991 Catalog M: "We strive to achieve quality levels that meet or exceed customer expectations. It is our firm resolve to sell only the finest quality, factory fresh products, and 11. to perform our role in the distribution of these products with 100 percent error-free, on-time performance. Our commitment to continuous quality improvement never stops, and is documented through a formal quality process - Quality Assured Distribution (QAD). This program begins with our top management and is supported by each employee in our organization. We now have pilot quality programs in place at select groups of distribution centers and branches around the United States. These pilot programs include the creation of Continuous Improvement Teams, thoroughly educated on the quality improvement process, and empowered to work independently to improve quality. We have already achieved significant improvements through this process. Nationally, we track many aspects of our business including fill rates and returns. We even track the performance of our vendors and evaluate their service in supporting us. We have embraced the culture of quality and made it ours...and yours." MARKETING: PRODUCT SUPPORT: Electronic Data Interchange (EDI) between Bearings Inc. branches and customers is being adopted widely to reduce customer purchasing costs, improve accuracy and speed order processing and delivery time. The number of EDI installations with customers grew by 39 percent in fiscal 1993. ---Product specialists are available to branches to help troubleshoot particularly complex customer issues. (1993 Annual Report) WARRANTY: Warranty Policy - products are sold only with such warranties as may be extended by the manufacturer of the product. We make no other warranty and there are no implied warranties of merchantability or fitness. In no event are we responsible for incidental and consequential damages, or for more than the allocable price of the defective product. Buyer is responsible for installation and use in accordance with manufacturer's instructions. Our employees are not authorized to alter this Warranty Policy. All sales are subject to our standard terms and conditions of sale unless other specific terms are expressly agreed upon. Disclaimer: While dimensions in this catalog are as accurately compiled as possible, no responsibility can be assumed for typographical errors. The right is also reserved to change dimensions without notice. (1991 - Bearings Inc., Catalog M) PRICING: Bearings Inc. does not have a hard copy price list. All prices are on-line. (4/93 - GKSpringborn, P&SM, DT) ---10% of balance payable in 15 days, remaining balance 30 days from date of invoice. (3/93 - D&B) DISTRIBUTION & GEOGRAPHIC AREAS SERVED: At year-end 1994 Bearings had 339 branches, seven distribution centers and 20 mechanical, fluid power and industrial rubber service shops in 40 states. Branches are operated under the Bearings Inc., Bruening Bearings, Dixie Bearings, King Bearing and Mainline names. During fiscal 1994, 21 new branches were opened or acquired across the country. Three branches were consolidated and two closed during the year. The Mainline acquisition added nine branches to Bearings' network in Wisconsin, Minneapolis and Chicago. In addition, smaller acquisitions during the year added four branches to supplement King Bearing branches opened in the Greater Chicago market in 1993. (1994 Annual Report) ---Regarding inventory turns, Bearings' goal is to achieve an annual inventory turnover rate of six times by 1998, 12. double the current rate of three times. A series of aggressive actions are in place to stimulate this improvement in asset utilization. They include reducing slow-moving bearing inventory; improving order-to-fulfillment cycle times from manufacturers; increasing coordination and sharing of in-stock items among locations; reducing the number of vendors; reducing the effects of overlapping product lines; and establishing active data interchanges with vendors to facilitate just-in-time shipments. As fiscal 1994 ended, Bearings created a new logistics group to develop and implement strategies for managing inventories, including purchasing, replenishment, traffic and distribution center management. (1994 Annual Report) ---All 44 part numbers quoted by Bearings Inc. listed a 10 day "quoted leadtime." (4/13/93 - GKSpringborn, P&SM) ---Bearings Inc. is America's largest distributor of replacement bearings and power transmission components. (2/93 Value Line) ---Bearings Inc. and its subsidiaries distribute their products in 37 states, per their 1991 catalog. Below is a breakdown by operating unit and state: -Bearings Inc. Connecticut Delaware Idaho Indiana Maine Maryland Massachusetts-Montana New Hampshire New Jersey Ohio Oklahoma Oregon PennsylvaniaRhode Island Texas Vermont Washington West VirginiaLouisiana Mississippi North Carolina South CarolinaTennessee Virginia and also Puerto RicoDixie Bearings Inc. Alabama Arkansas Florida Georgia -Bruening Bearings Inc. Illinois Kentucky-Missouri New YorkKing Bearing Inc. Arizona California (1991 - Bearings Inc., Catalog M)Nevada New Mexico---The job of keeping track of all the Bearings Inc. group inventory is done by their OMNEX 2.0 computer system which puts their entire inventory at the finger tips of their local branches. (1991 - Bearings Inc., Catalog M) GENERAL: Ranked as a 'D' DT (AF Bearing) Competitor. (4/00) ---Publicly held corporation. Stock symbol AIT effective 7/3/2000. ---Outside directors include the president of The Lubrizol Corp., Wickliffe, OH and president/chief operating officer of Eaton Corp., Cleveland, OH. (3/93 - D&B) APPARENT MARKETING STRATEGY: 13. Bearings Inc. is singularly focused on the distribution of Maintenance Repair Operation (MRO) products and services to the industrial aftermarket in North America. Goal is to be the best in distribution. (1993 Annual Report) ---Delivering their best - Bearings Inc. believes that customer satisfaction is the key to growing their business. It can only be achieved through employees dedicated to meeting and exceeding customers' needs and wants. (1991 Bearings Inc., Catalog M) ASSESSMENT OF STRENGTHS: Becoming a "one-stop-shopping" source for Maintenance Repair Operation (MRO) products. (6/95) ---Anti-dumping legislation currently in place makes the threat of foreign competition less than it was in previous recoveries. (11/91 - Value Line) ASSESSMENT OF WEAKNESSES: Narrow-margined business relies heavily on volume for profitability. (2/92 - Value Line) ---Apparently not a single source for all antifriction bearings needs. See 4/93 information in Products section. Also, do not offer bearing kits for Cat applications. (4/93 - GKSpringborn, P&SM) FUTURE OUTLOOK: Regarding Bearings Inc.'s growth strategy - "While we will continue to maintain and develop our current branch network and expertise in core bearing technologies, a greater percentage of our sales in the future will derive from drive products, rubber products, industrial specialties and fluid power products--all of which represent a bigger market and carry higher margins than do bearings. Most of our customers who currently rely on us for their bearing needs have substantially greater requirements for products and services in these other technologies. While the total U.S. market for replacement bearings is about $1.7 billion a year, the marketplace for other technologies we offer is about $18.3 billion annually." Regarding acquisition plans - "Our acquisition growth opportunities are grouped into two areas--to expand into geographic areas of North America where we do not currently have a presence, and to supplement and strengthen our position in specific product lines other than bearings. Regarding plans to grow the fluid power and industrial rubber businesses - "Our strategy includes providing these products and services to our base of customers who currently rely on us for bearings. In addition, we are investing in the training and education of our current branch personnel so they can better offer fluid power and rubber technology and service to customers. In those geographic areas where we do not currently offer the broad range of products and services in all technologies, we would consider acquisitions of smaller distributors where doing so would help to accelerate the integration of these products into our existing customer base." (1994 Annual Report) LAST D&B: March 23, 1993 DUNS (D&B NUMBER): 00-790-0129 SIC (CODES): 5085, 5172, 5169, 7699 LAST PROFILE REVIEW/UPDATE: June 14, 1995 14. BRAKE SUPPLY CO. INC. - NEWS July 15, 2000 31U3NEWS http://www.brake.com INTRODUCES ONLINE EXPRESS CREDIT CARD BUYING OPTION FOR COMMODITY PARTS 7/15/00 In February 1998, Brake Supply (BSC) announced BSC Online, Internet parts ordering for registered customers. Brake Supply has now introduced Online Express for credit card purchases. Express is for the person in a hurry who wants to pay by credit card. Not all products are available via Express. These are BSCs commodity parts. According to BSC, there just isn't a good way to display over 300,000 part numbers in a shopping cart. "If you need OEM parts or want to buy on open account, try the original BSCOnline. If you want to pay by credit card or have not signed up for online access, try Online Express!" (7/10/00 BS Web Site) STEPS, LADDERS & MIRRORS, THE NEWEST ADDITION TO PRODUCT LINE 3/31/00 According to Brake Supplys web site, "Our replacement steps and ladders are a perfect fit for your equipment. No more outrageous dealer prices, and no more wasted time fabricating your own ladders. Now you can economically remedy unsafe equipment conditions using Brake Supply's railings, steps, ladders and mirrors. If you don't see the part you need here, give us a call; we will get it for you!" Product is offered for the following Caterpillar models: 235, 350L, 769C, 769D, 771C, 771D, 773, 773B, 773D, 775B, 777, 777B, 785, 785B, 789, 928F, 950B, 950F, 966D, 980C, 980F, 980G, 988B, 988F, 990, 992C, 992D, 992G, 815, 816, 826, 12G, 12H, 14G, 14H, 16G, 16H, 120, 140, 160, D9N, D10, and D11N. Four replacement mirror part numbers are offered. Specific part numbers and descriptions are listed. (3/20/00 BS Web Site) THE 2% DISCOUNT FOR WEB ORDERS IS BACK! 8/31/99 In July 1998 we reported that Brake Supply was offering a 2% discount on parts orders placed via their internet site prior to August 31. We also reported Brake Supply continued to extend this offer monthly until December 31, 1998. Brake Supply announced on August 17, 1999, that the 2% discount is back. The discount is not applicable to special quotes and certain other negotiated prices. No ending effective date was stated. (8/17/99 BS Web Site) OPENS NEW STORE IN NORTON, VIRGINIA 8/15/99 Brake Supply Co. recently opened a new store at 5445 Kent Junction Rd., in Norton, Virginia. The new store is ideally located to serve mining customers in the southern Appalachians. Norton is about half way between Bristol, VA and Hazard, KY. (8/99 BS Web Site) CONTINUES TO EXTEND 2% INTERNET ORDERING DISCOUNT 11/98 15. In July, we reported Brake Supply was offering a 2% discount on all on-line orders placed before August 31, 1998. Brake Supply has continued to extend this discount monthly. As of December 1, the 2% online discount is good through December 31, 1998. (12/1/98 BS Web Site) ORDER ON-LINE BEFORE AUGUST 31, 1998 AND SAVE 2% 7/98 Any order placed through the Brake Supply web page prior to August 31, 1998 earns a 2% discount. On-line ordering is reportedly even faster and easier with the ability to look up as many as 10 part numbers at one time. Brake Supply also has a "bargain basement." Just click the "Surplus" button on the home page to see what's on the clearance table that week. All but one of the 82 new and remanufactured part numbers on the Surplus list on July 15, 1998 were for Caterpillar applications. (7/15/98 - Brake Supply Web Site) INTERNET PARTS ORDERING FEATURES FOR APPROVED CUSTOMERS 2/98 Brake Supply Co. recently introduced an Internet program called Brake Supply Online. After filling out a credit application on-line, customers will reportedly soon be able to take advantage of the most advanced ordering system in the heavy-duty parts business, one backed by a depth of inventory and application expertise unmatched by anyone else in the industry. Any Brake Supply customer, anywhere in the world, any time of the day or night can: -look at parts availability request a quotation place an order inquire on the status of an order trace a shipment through UPS and other carriers show the status of their account access a complete on-line directory of Brake Supply team members at every locationThe following are some of Brake Supply's key suppliers: -Aeroquip Rockwell Automotive Rexroth Eaton Timken(2/3/98 - BS Web Site)-Baldwin Bendix Wagner Midland CR Industries 16. BRAKE SUPPLY COMPANY INC. May 11, 1998 31U3 (SUBSIDIARY 100% OF GEORGE KOCH SONS INC., EVANSVILLE, IN) INTERNET:http://www.brake.com (5/98)COMPETITIVE TYPE:Manufacturer DistributorNo (Parent is a manufacturer) YesMAJOR PRODUCT CLASSES:Drive Train HydraulicsLOCATIONS:Evansville, IN 1300 W. Lloyd ExpresswayHeadquarters -Owns 135,000 sq. ft. in one story concrete block and aluminum building in good condition, commercial section on well traveled street. Branches - Ivel, KY, Brake Supply (Eastern Kentucky Division), Hwy 23 S - Elko, NV, Brake Supply - Mountain States Inc. (Nevada Division), 2265 Industrial Way - Austin, TX, Brake Supply - Southwest, Inc. 7740 Ed Bluestein Blvd. - Clearwater, FL, Brake Supply - Gulf Coast, 3725 131st Ave N - Casper, WY, Brake Supply - Mountain States, 2000 Oil Dr (3/98 - D&B and Internet) ---Brake Supply also has satellite warehouses in the Chicago, IL (Hammond, IN), and Atlanta, GA, areas. (Issue 4 1995 Rockford Powertrain Inc.'s Power Trends Newsletter) No details, but these two locations are also listed on Brake Supply's Internet site. (5/98) ---Through the common ownership of the parent company this business is related to the following companies: -Gibbs Die Casting Corporation, Henderson, KY; started 1965, manufactures die castings. Statement dated December 31, 1993, showed a net worth of $47,911,696. Uniseal Inc., Evansville, IN, started 1984, manufactures sealants and adhesives. Statement dated December 31, 1993; showed a net worth of $5,306,001. Koch, George Sons International Inc., Evansville, IN, started 1988, active as foreign sales company. Marco Sales Inc., Saint Louis, MO, acquired December 31, 1996, operates as a distributor of heating and airconditioning equipment. (3/98 & 2/97 - D&Bs)EMPLOYMENT: Year 1980Employees 125(12/80-D&B) 17. 1991 1993 1994 1995 1996 1998(179 at headquarters) (2/92-D&B) Jun (182 at headquarters) (2/94-D&B) Jun (182 at headquarters) (1/95-D&B) Oct (182 at headquarters) (1/96-D&B) Feb (182 at headquarters) (2/97-D&B) Mar (155 at headquarters) (3/98-D&B) ---According to Rockford Powertrain Inc.'s Issue 4 1995 Newsletter, Brake Supply has 190 employees. (1/96) SALES:228 228 228 228 228 205Fiscal year ends December 31.Year 1988 1989 1990 1991 1992 1993 1994 1995 1997Sales $23,930,814 24,388,063 24,585,014 22,653,484 23,613,028 30,927,480 36,462,268 39,481,495 42,049,256Net Profit (Loss)Worth$ 612,288 (14,971) 1,261,011 512,790 262,119 60,322 1,610,950 1,762,930 1,570,272$ 6,142,556 6,577,181 8,524,090 9,382,859 10,315,176 10,343,785 11,965,857 13,961,460 14,224,595(2/92-D&B) (2/94-D&B) (2/94-D&B) (2/94-D&B) (2/94-D&B) (1/95-D&B) (1/96-D&B) (2/97-D&B) (3/98-D&B)HISTORY: 1946 - Business started 1979 - Expanded facilities and hydraulic product line (12/80-D&B) 1980 - Started Brake Supply - Mountain States Inc., Casper, WY (100% owned) 1984 - Started Brake Supply - Southwest Inc., Austin, TX (100% owned) 1985 - October, started Brake Supply - Gulf Coast Inc., Clearwater, FL (100% owned) 1993 - May, business moved from Vogel Av. to 1300 W. Lloyd Expressway, Evansville, IN, to consolidate locations. (2/94-D&B) PRODUCTS: Inventory value as of December 31, 1991 was $6,413,994. (2/94-D&B) Inventory value as of December 31, 1992 was $6,392,090. (1/95-D&B) Inventory value as of December 31, 1993 was $8,410,494. (1/95-D&B) Inventory value as of December 31, 1994 was $8,282,083. (1/96-D&B) Inventory value as of December 31, 1998 was $7,970,384. (3/98-D&B) ---Wholesales mining equipment (40%), industrial equipment (40%), marine equipment (10%) and truck parts (10%). (1/95,2/97 & 3/98 D&Bs) ---- 18. Brake Supply offers products from many manufacturers including, but not limited to, the following: - Aeroquip - Denison Hydraulics - Allied Signal, Automotive - Eaton Corp., Hydraulics Div. Aftermarket - Ecco Back-Up Alarms & Strobe Lights - Baldwin Filters - Federal-Mogul Corp. - CR Services - Lovejoy, Inc. - Carlisle Braking Systems - Midland-Grau Heavy Duty Systems - Commercial Intertech Corp. - National Seal Co. - Cooper Industries, Abex - Parker Hannifin Corp. Friction Products Div. o Racor. Div. - Dana Corp. o Seal Group o Drivetrain Service Div. - Quincy Compressor, Div. of Coltec o Fluid Product Sales - Rexroth Corp, Mobile Hyd. Div. o Mobile Fluid Products Div. - Rockford Powertrain, Inc. o Spicer Driveshift Div. - Rockwell Automotive (11/30/96 - Construction Equipment 1997 Buyers Guide) ---Now Stocks Instrumentation for Caterpillar Applications 5/95 - According to their "NEWS Brake, New Product Availability Bulletin", April 10, 1995, Number 12, Brake Supply is now stocking, Pricol brand water, oil, fuel, air temperature and pressure gauges. They are also offering ammeter and hourmeters. A total of 37 part numbers for Caterpillar applications were listed. (4/95 - Brake Supply) ---The following information on specific products offered comes from 1992 and 1994 brochures: BrakesHydraulicsBearings and Seals Drums and Discs Foundation Brake Parts Brake Shoes Brake Hose and Tubing Air and Hydraulic Components Molded and Woven Sheet and Roll Stock Blocks, Facings and Segments Metallic Plates and Facings Shim Stock and Flat SheetsCylinders and Accumulators Pumps and Motors Valves and Oil Coolers Hose and Couplings Reservoirs and Accessories Filters and Strainers Gauges and Quick Couplers Complete Power Units High Pressure Lifting Equipment(Also relines and rebuilds brake shoes, bands, calipers, and wet disc brake assemblies. (2/94-Brochure)Rebuilds pumps, motors, cylinders and valves (2/94-Brochure)PneumaticsClutchesCylinders and Valves Compressors and DryersCover Assemblies and Discs Matched Sets 19. Filters, Regulators & Lubricators Tanks and Gauges Rotating Unions Horns and Back-up Alarms Lubrication Equipment Hose and Couplings Air StartersRelease and Pilot Bearings Industrial Air & Hydraulic ClutchesFlywheels are machined. Clutches are rebuilt and electronically balanced.Also offers rebuilt pneumatic components. (2/94-Brochure) Drivelines Universal Joints CV-Joints PTO Shafts Complete Prop Shaft Assemblies Power-Take-Offs Hanger Bearings Shaft Component Parts (1992 Brochure) (1994 Brochure when noted) ---Over one million part numbers in their OEM Cross Reference Library. (2/94-Brochure) PRODUCT FEATURES: QUALITY: Poor Quality Friction Discs Reported 2/95 - Recent field reports indicate a couple of customers in Wagner's territory have switched from Brake Supply friction discs back to genuine Cat. Reportedly, the material on the Brake Supply disc is uneven, causing accelerated wear. (2/95 - JKGilles, M&DS, DT) ---Competitive Test Reports (CTR) and Parts Competitive Bulletins (PCB) available on Brake Supply products. (2/97) MARKETING: PRODUCT SUPPORT: WARRANTY: "GUARANTEED PLUS" warranty assures 100% satisfaction on any new or rebuilt part. (2/94-Brochure) ---All rebuilt or exchange units are warranted to perform at 100% of new unit specifications and service life. (1992 Brochure) PRICING: Most current price list in Parts Pricing Dept. is effective March 1, 1993. (5/98) 20. DISTRIBUTION & GEOGRAPHIC AREAS SERVED: In addition to satellite warehouses in Chicago, IL (Hammond, IN), and Atlanta, GA, areas, Brake Supply has the following sales representatives: - Brake Supply Company, Brasil R. 24 De Outubro 1219/401 90510-003 Porto Ale gre/RS Brasil - Brake Supply,Chile Punta De Rieles 2007 Villa Huaytiquina Calama -- Chile - Brake Supply UK Company P.O. Box 12 Whaley Bridge High Peak SK23 7BX Cheshire, United Kingdom, covering Europe, the Middle East, and Asia. - Ermelo Brakecore, C.C. 5 Oosthuise Str. 5 Box 1837 Ermelo 2350, Mpumalanga, Republic of South Africa - Peru (5/98 - Internet) ---Ship parts within 4 hours, 24 hours a day, 7 days a week. (2/94 Brochure) ---Territory - U.S. and exports. Exports less than 5%. Sells to industrial, commercial marine, trucking and mining accounts. (2/92,2/97, & 3/98 - D&Bs) ---According to a brochure distributed by Brake Supply at CON/AGG '94, they have export sales to the United Kingdom, Australia, Singapore, Columbia, Chile, Mexico and South Africa. (2/94) GENERAL: Ranked as a 'D' DT (Brake Component) competitor. (5/98) ---Every BSC employee (team member) gets a full reporting of company profits and expenses each month and they all share in a profit-based monthly bonus. The open door policy and constant reminders that success is based on effort lead to a happy crew with low turnover and wages significantly above comparable positions at other local companies. (Issue 4 1995 Rockford Powertrain Inc.'s Power Trends Newsletter) 21. APPARENT MARKETING STRATEGY: BSC President says they run their business by an easily understood five-point "vision". - Focus on the customer - Simplify! - Don't "cost analyze" every transaction - Have fun - Make a profit (Issue 4 1995 - Rockford Powertrain Inc.'s Power Trends Newsletter) ASSESSMENT OF STRENGTHS: Complete Cat cross-reference for friction material, 14-21% off Cat list. Overnight delivery, Guarantee Plus. (11/92 GKSpringborn, P&SM, DT Section) ASSESSMENT OF WEAKNESSES: FUTURE OUTLOOK: Financial condition strong. (2/97 & 3/98 - D&Bs) LAST D&B: March 30, 1998 LAST PROFILE REVIEW/UPDATE: May 11, 1998 DUNS (D&B NUMBER): 01-627-9911 SIC (CODES): 50 82, 50 84, 50 88, 50 13 22. BYG, S.A. August 10, 1995 37ES COMPETITIVE TYPE:Manufacturer DistributorMAJOR PRODUCT CLASSES:Undercarriage Engine Parts GET Drive TrainHydraulics General Usage Not Elsewhere ClassifiedLOCATIONS: Headquarters-BYG, S.A. Calvet, 55-57 Entlo, Barcelona, Spain Rents offices covering 150 sq. meters, central business area on a main road. Subsidiary - BYG Sur, S.A. Barcelona, Spain 100% (Duns: 46-035-7494) Started 1972 (Importer and wholesaler of construction machinery and materials) Affiliates (The following are related through principal(s) and/or financial interest): - Inmobiliaria Can Serra S.A. Barcelona, Spain (Duns: 47-294-6623) (Construction and real estate) - Inmobiliaria Escipion, S.A. Barcelona, Spain (Duns: 46-856-1907) (Construction) - Trasto Centro, S.A. Madrid, Spain Branches/Divisions - Has two, including El Pla, 45, del Plg. Indl El Pla de Molins de Rei (Barcelona) (7/95 - D&B) ---According to a June 30, 1995 BYG Letter, they have offices throughout Spain (Malaga, Tenerife, Madrid, Sevilla, etc.) and have agents worldwide. (6/95) EMPLOYMENT: Approx. 1980 Dec 1991 Dec 1992 Dec 1993 1995 SALES:= = = = =21 30 26 22 60(including 14 salesmen) (7/95 - D&B) (7/95 - D&B) (7/95 - D&B) (6/30/95 - BYG Letter)Fiscal year ends Dec. 31. (7/95 - D&B) ----Sales:Year 1991 1992Pesatas P467,489,000 429,455,000P to D ConversionDollars $4,495,986 4,196,917(7/95 - D&B) (7/95 - D&B)divide by 103.9792 divide by 102.3263 23. 1993430,888,0003,386,153(7/95 - D&B)divide by 127.2500---Net Worth: YearPesatas1991 1992 1993P202,007,000 296,363,000 423,962,000Dollars $1,942,764 2,896,254 3,331,725(7/95 - D&B) (7/95 - D&B) (7/95 - D&B) ----Profit: YearPesatas1991 1992 1993P 12,667,000 94,356,000 127,599,000HISTORY: 1967 -Dollars $ 121,822 922,109 1,002,743(7/95 - D&B) (7/95 - D&B) (7/95 - D&B)Company charteredPRODUCTS: BYG's main exports are cutting edges, manufactured at their Barcelona plant, teeth and other wear parts, nuts and bolts. Cutting edges and tips offered for Caterpillar, Komatsu, Fiat, Case-Poclain, O&K, and Esco replacements. (6/30/95 - BYG Letter) Wholesalers of replacement parts for construction equipment. BYG also claims to be a manufacturer of blades (carbon steel and boron steel) and will produce to customer specifications. BYG may manufacture more, but European parts competitors' brochures typically suggest they are the manufacturer, but most product is usually sourced from others. (11/93 - BYG Brochure/Letter) ---BYG offers: - Bucket tips/adapters, scarifiers and related parts - Ripper shanks/adapters/protectors - Cutting edges, end bits, segments, router bits, wear plates for loaders, dozers, scrapers and graders - Hardware (Grade 8) - U/C idlers, sprockets, grouser bars - Crankshafts (11/93 - BYG Brochure/Letter) ---As of 11/93, BYG offered replacement for four Caterpillar crankshafts (4N7692, 4N7693, 7C4859 and 9N6221) and three for Deere. (11/93 - BYG Letter) ---Based on Competitive Parts Reports (CPR) information, as of 7/95 (most submitted by Spain dealer FSA), BYG offers the following brands of product: -Kolbenschmidt (Engine; liner, piston, piston pin/retainers) Garrett (Engine; turbo/parts) Kolbenschmidt (Hyd., seals) 24. -Berco (U/C) Baldwin (Filters) Fleetguard (Filters) Woodgate (Filters) Wix (Filters) S.A. Metalogenia, Remop (GET) Esco (GET) Canavera & Audi-Roca (GET) ETE (GET)"Unknown" was often submitted as the brand. For more detail on specific parts offered, refer to the CPR portion of PMIS. (7/95) PRODUCT FEATURES: QUALITY: Refer to Parts Competitive Bulletins (PCB) and/or Competitive Test Reports (CTR) for information on brands BYG offers. (7/95) MARKETING: Agrees to change wording on future promotional material: In January 1994, Caterpillar objected to claims made in a promotion piece of BYG replacement parts "matching or exceeding OEM requirements." Our Patent Dept. solicited the help of our Spanish legal counsel. After lengthy delays, in July 1996 we were informed that BYG was agreeable to changing the wording. BYG is to provide a sample of their new catalog as soon as available for Caterpillar's approval. (7/96 - RBRodgers, P&MR). PRODUCT SUPPORT: WARRANTY: "If any of our products breaks during normal operation, we will provide a new replacement free." (6/95, BYG Brochure/Letter) ---PRICING: BYG seems to be a medium threat for cutting edges and end bits mostly. Discounts off Spanish Cat dealer FSA/Cat prices of 20-50%. (7/95 - WBHenrikson, GET Products Gp.) ---No information in Pricing (P&MR) Dept.'s CIS system. (7/95) DISTRIBUTION & GEOGRAPHIC AREAS SERVED: Territory is 100% National. Imports 70% of Purchases. (7/95 - D&B) ---According to a June 30, 1995 BYG letter, they export all over the world. Their strongest market is Asia for the past few years. (6/95) ---Per 12/9/87 D&B, 80% of sales are in Spain. ---Additional information on BYG distributors may be available in the CPR portion of PMIS. As of 7/95, in addition to BYG, the following distributors have been submitted as selling BYG products: DistributorSubmitted BySub 25. CL Boyd Co. Plamondon Blumaq Groinsa Henagui Hermanos Pozo Repuestos Del Noroes Rodajes Malaga Tracto Centro Tractor Bierzo Tractor MurciaDarr Eq. Hewitt Eq. FSA FSA FSA FSA FSA FSA FSA FSA FSANACD NACD COSA COSA COSA COSA COSA COSA COSA COSA COSAGENERAL: Aureo Bartolome Pascual is the sole administrator, owning 63%. (7/95 - D&B) ---Additional information is available in P&MR's Competitive Information Library. (8/95) FUTURE OUTLOOK: Financial condition is fair, trend even. (7/95 - D&B) APPARENT MARKETING STRATEGY: ASSESSMENT OF STRENGTHS: ASSESSMENT OF WEAKNESSES: LAST D&B: July 19, 1995 LAST PROFILE REVIEW/UPDATE: July 20, 1995 (Minor update 8/10/95) DUNS (D&B NUMBER): 46-010-8632 SIC CODES: 5084 Wholesales Industrial Machinery & Equipment 26. CEI (COSTRUIZIONE EMILIANA INGRANAGGI SPA) August 10, 1995 31GN INTERNET: None as of 3/9/2000 COMPETITIVE TYPE: MAJOR PRODUCT CLASSES:Manufacturer Drive TrainLOCATIONS: Headquarters: Address - VIA Del Lavoro 78 Town - 40056 Crespellano (BO) Country Italy Branches (among the important): - Deposito, Crespillano (BO) Italy - Magazzino, Anzola dell' Emilia (BO) Italy Subsidiaries: - Anteo SpA, ownership 97%, Molinella (BO) Italy - PM France Grues Hudrauliques, ownership 62%, Longjiumeau, Francia - Autogru P.M. SpA, Modena (MO) Italy Also affiliated through principals (President & Vice President): - Alfa SpA, Crespellano (BO) Italy - Sicma Srl, Bologna (BO) Italy - S.E.R.M.A. Srl, Modena (MO) Italy (8/95 - D&B) EMPLOYMENT: 1976 - 53 (includes 11 salesmen in Italy/1 foreign salesman) 1989 - 85 (11/91 - D&B) 1991 - 93 (12/92 - D&B) Dec 1993 - 86 (8/95 - D&B) SALES:(Millions): Fiscal year ends December 31. Sales/Profits Lira1987 1988 1989Sales/Profits DollarsL 13,936/295 15,946/325 17,118/318$10.7/.23 12.4/.25 12.5/.23Full Yr. Av. Exchange Rate 1299 1288 1370 27. 1990 16,788/268 14.0/.22 1991 17,351/152 14.1/.12 1992 20,428/34 16.6/.03 1993 23,138/26 14.7/.02 1994 25,000/?? 15.5/?? The above sales information comes from D&B reports.1198 1240 1230 1571 1612HISTORY: -1968 - CEI was established in Italy as a private partnership. CEI reportedly manufactures transmission and final drive parts for Fiat, ESP, Ghinassi, SIRT, and several other Italian replacement parts wholesalers. 1976 - CEI joined the Associated Independent Distributors (AID) organization and sales were expanded to a worldwide level. 1990 - No longer member of Independent Distributors Association (IDA), formerly AID.PRODUCTS: Manufacturer of gears and pinions. PRODUCT FEATURES: QUALITY: CEI product has been tested as part of Caterpillar's Competitive Parts Test Program, but the CRT and PCB are no longer considered current. (8/95) ---Their brochure had some Caterpillar gears on it. Our host Piero Silvagni said they no longer scab our parts and would like to become a licensed aftermarket manufacturer of our parts. (SIRT was immediately behind him and a used construction equipment dealer was reported as owning the lot beside him with all the torn down Caterpillars in it.) I wasn't impressed with anything about this place. On his hob installation he used insert blade hobs on stacked parts. Both reduce quality. The hob had automatic hob change and his magazine had partially used hobs severely burned on 35% of their face. The hob also had automatic fixture change. CEI did inspect a part but the trace was done at 1:1 along the tooth profile. Even at this level the parallel was wavy and showed a lot of variation. Definitely not a quality house! CIMA had potential and has demonstrated a fair amount of sophistication in their software capabilities. To further qualify them, we are going to have them cut some parts for us in early 1988 on a U.S. built machine in Richmond, Virginia. (Dan Thurman - MFG - 11/87) MARKETING: PRODUCT SUPPORT, WARRANTY: PRICING: Pricing (P&MR) Dept. has price list information in the CIS System, the most current being effective Nov. 1, 1990. (8/95) DISTRIBUTION & GEOGRAPHIC AREAS SERVED: 28. CEI sells via agents. (8/95 - D&B) ---Distribution as a percent of Sales: Date National 12/31/89 65% 12/31/91 60% 12/31/93 30%Exports 35% 40% 70%Imports 5% 5% 5%(11/91 - D&B) (12/92 - D&B) (8/95 - D&B)GENERAL: CEI ranked as a 'B' Drive Train (Gear) competitor. (8/95) ---Additional information is available in P&MR's Competitive Information Library. (8/95) APPARENT MARKETING STRATEGY: ASSESSMENT OF STRENGTHS: ASSESSMENT OF WEAKNESSES: FUTURE OUTLOOK: Condition is fair, trend is even. (8/95 - D&B) LAST D&B: August 10, 1995 LAST PROFILE REVIEW/UPDATE: August 10, 1995 DUNS NUMBER: 42-877-7338 SIC CODE/DESCRIPTION: 3568 Power Transmission Equipment Manufacturer 29. EQUIPMENT SPARE PARTS AFRICA (PTY) LTD. July 12, 1996 63HG COMPETITIVE TYPE:DistributorMAJOR PRODUCT CLASSES:Undercarriage Engine GET Drive TrainHydraulics General Usage Not Elsewhere ClassifiedLOCATIONS: -Isando (Johannesburg), Rep. South Africa Pretoria, Rep. South Africa Pinetown, Rep. South Africa Cape Town, Rep. South Africa Bloemfontein, Rep. South AfricaIn addition to the five branches, ESPA has agents in: -Botswana Namibia Zimbabwe Swaziland (Dec. 1995/Jan. 1996 - SA Construction World Magazine)EMPLOYMENT: SALES: HISTORY: 1979 1987 1998 1999-Company's inception Became the sole agent for Berco undercarriage products in South Africa at the end of 1987. September 14, acquired the new replacement parts business of Dozer Parts (Pty) Limited. To purchase G & R Spares CC which operates in the heavy earthmoving equipment parts business predominantly in Kwazulu-Natal and Gauteng. The effective date is set at March 1, 1999. ---Used to be an associated company of the former Equipment Spare Parts Italiana S.p.A. (ESPI), responsible for the direct marketing and distribution of the ESPI manufactured product in South Africa. This affiliation apparently has been dropped, but it is not known when. ESPI has since changed owners/company names twice since then. (12/95) PRODUCTS: ESPA describes themselves as a leading supplier of quality replacement parts for Caterpillar and Komatsu earthmoving equipment, Fort Louisville, International and Mack Trucks, and Cummins, Detroit Diesel, Deutz and John Deere diesel engines. (Dec. 1995/Jan. 1996 - SA Construction World Magazine. ---- 30. ESP Africa parts purchasing sources by product: -Cylinder heads Needle bearings Lip type seals Cylinder seal kits Gasket kits Engine valves Pistons and liners Filters Undercarriage GETGhinassi Torrington CR Services "Bulldog" (Heavy Equipment Parts Co.) Phillips or "Bulldog" (HEPCo.) AE (South Africa) AE (South Africa) Fram, GUD and Luber-finer Berco Apex wear parts (Cat and Bofors type) Esco Italricambi - Injectors KM Products or Cat - Engine bearings Miba or Clevite or Glacier - Electrical gauges KM Products - Starting motors & alternators Delco Remy - Hydraulic cartridge type pumps Vickers - Connecting rods and bolts Genuine Cat - Grader side shafts Genuine Cat (11/95 - MRStevens, COSA & ex-ESP Africa employee) PRODUCT FEATURES: QUALITY: Refer to Competitive Test Report (CTRENG96-3) for information on 3300 series engine valves purchased as part of Caterpillar's Competitive Parts Test Program. A Parts Competitive Bulletin (PCB) is to be released by July 23, 1996. (7/96) ---Refer to Parts Competitive Bulletins (PCB) and/or Competitive Test Reports (CTR) for information on brands distributed by ESP Africa. (12/95) MARKETING: Advertises in South African Construction World Magazine. (6/95) PRODUCT SUPPORT: WARRANTY: PRICING: DISTRIBUTION & GEOGRAPHIC AREAS SERVED: By far the most series aftermarket competitor Caterpillar faces in South Africa. (11/95 - MRStevens, COSA) ---Agents in East London (Peugair), Port Elizabeth (Earthtek), Botswana (Parts Sales). (6/95 - South African Construction World Magazine) See LOCATIONS section for what appears to be more current information. 31. GENERAL: Subsidiary of Delta Electrical Industries Limited. (1999) ---New General Manager is Andrew Grobler, replacing Ron Los who held the position for 16 years. (1/96) ---Regular member of Independent Distributors Association (IDA). (1995 Membership Roster) APPARENT MARKETING STRATEGY: ASSESSMENT OF STRENGTHS: ESPA reportedly offers complete parts and repair service and is able to overhaul most types of crawler undercarriage. (Dec. 1995/Jan. 1996 - SA Construction World Magazine) ASSESSMENT OF WEAKNESSES: FUTURE OUTLOOK: According to ESPA, with the 1/96 change in leadership, sthere will be no immediate or drastic changes in the company. "We will build on our excellent and respected services to our clients. In the immediate future, we will concentrate on expanding the range of truck spare parts. As we have become the leading supplier of replacement spare parts for the earthmoving industry, we are now striving to achieve the same for the trucking industry." (Dec. 1995/Jan. 1996 - SA Construction World Magazine. LAST D&B: None DUNS (D&B NUMBER): SIC (CODES): LAST PROFILE REVIEW/UPDATE:July 12, 1996 (minor update 3/20/00) 32. GHINASSI GROUP April 14, 1999 32AL INTERNET:http://www.ghinassi.comCOMPETITIVE TYPE:Manufacturer DistributorMAJOR PRODUCT CLASSES: Engine PartsDrive TrainHydraulicsGeneral UsageLOCATIONS: CGR-Ghinassi group consists of two main companies, CGR (Cornelio Ghinassi Ricambi S.p.A.) and OMG (Officine Meccaniche Ghinassi S.p.A.) and one foundry. Both CGR (wholesaler/exporter) and OMG (manufacturer) are located in Ravenna, Italy in two plants covering altogether more than 10,000 sq. meters. EMPLOYMENT: 1978 1980 1986 1987 1988 1990 1991 1992 1994 1995 1997-55 55 53 OMG 53 OMG 150 Turbin, Italy foundry - Not sure if actually owned by Ghinassi. 45 OMG (D&B, 4/90) 24 CGR (D&B, 4/90) 45 OMG (D&B, 11/92) 20 CGR (D&B, 12/92) 22 CGR (4/94 - D&B, 12/31/92 CGR Financial Statement) 22 CGR (3/96 - D&B, 12/31/94 CGR Financial Statement) 32 OMG (6/97 - D&B, 12/31/95 OMG Financial Statement) 22 CGR (6/97 - D&B, 12/31/95 CGR Financial Statement) 32 OMG (4/99 - D&B, 12/31/97 OMG Financial Statement) 22 CGR (4/99 - D&B, 12/31/97 CGR Financial Statement)SALES: Fiscal year ends Dec. 31. (4/99) ---Full Year Av. Exchange Rate 33. Lira (millions) Company (source) 1976 1985 1985-Approx. Dollars (millions)--9.000 OMG (D&B, 6/86) 7.976 OMG (D&B, 11/87)$4.0 (estimated) $4.7 $4.2(Lira per U.S. Dollar) -1915 1915The following 1988-1997 information comes from 11/92 through 4/99 D&Bs and is in millions: Net Sales/Profits Lira 1988 - OMG 1988 - CGR 1989 - OMG 1989 - CGR 1990 - OMG 1990 - CGR 1991 - CGR 1992 - CGR 1993 - CGR 1994 - CGR 1995 - OMG - CGR 1996 - OMG - CGR 1997 - OMG - CGRL 9,699/ 23,192/ 10,441/ 29,339/ 10,811/ 26,336/ 25,024/ 22,961/ 31,642/ 38,496/ 7,166/ 44,979/ 8,237/ 49,906/ 10,860/ 54,459/1,306 1,492 1,319 1,176 649 695 685 274 3,866 2,184 427 2,946 352 2,512 1,018 3,934Net Sales/Profits Dollars $ 7.53/ 18.00/ 7.62/ 21.42/ 9.02/ 21.98/ 20.18/ 18.67/ 20.14/ 23.89/ 4.40/ 27.61/ 5.34/ 32.35/ 6.38/ 31.97/1.01 1.16 .96 .86 .54 .58 .55 .22 2.46 1.36 .26 1.81 .23 1.63 .60 2.31Full Year Av. Exchange Rate 1288 1288 1370 1370 1198 1198 1240 1230.08 1570.80 1611.70 1628.93 1628.93 1542.95 1542.95 1703.29 1703.29HISTORY: 1927 1980-CGR first registered in Ravenna, Italy. OMG established. (Continues the CGR activity of manufacturing spare parts. CGR becomes the distribution arm of the CGR-Ghinassi group.)PRODUCTS: The main activity of CGR-Ghinassi is the production of: replacements parts for earthmoving machines (Caterpillar, etc.). Cylinder heads for diesel engines, suitable to several makes of tractors, especially Caterpillar, Fiat, Mercedes Benz and others. Final drive gears and pinions (Caterpillar, Fiat Allis etc.) Miscellaneous spare parts, covering a range of over 15,000 items (Caterpillar, etc.) Engine Parts: cylinder heads, gaskets, crank/camshafts, conn. rods, etc. Transmission Parts: gears, pinions, pumps, bevel groups, carriers, etc. Steering Clutch Parts: drums, discs, flanges, etc. 34. Final Drive Parts: gears, pinions, hubs, shafts, etc. Front Idler and Sprocket Parts: springs, cylinders, guards, hubs, etc. Bucket Parts: pins, bushings, trunnions, cylinders, etc. Pumps: engine, transmission, oil, water, fuel, hydraulic pumps Misc. Parts: brake, electrical parts, radiators, oil coolers, mufflers, turbochargers, etc. (4/99 - ghinassi.com) ---OMG - Machining of diesel engines cast iron cylinder heads for tractors, wheel loaders, trucks and cars. Also, production of final drive gears, pinions, hubs, etc. Sub-Contracts - CGR has created a unique network of sub-contractors who are engaged in the machining of the following parts, under CGR supervision: -engine components (valve guides, valves, precombustion chambers, inserts, piston sleeves, gaskets, radiator cores, etc.) - transmission parts (gears, pinions, shafts, cages, nuts, etc.) - spider and bearings, universal joints - front idler (collars, bearings, coil springs, cylinders, adjust bolts, etc.) - strips and guards, equalizer bars-pads - pins and bushings for the bucket control - oil and fuel transfer pump assy's, water pump assy's, oil coolers - dozer (trunnions, caps, bearing) - seal groups, o-rings, hydraulic cylinder seals, repair kits - gauges, caps, springs, mufflers - steering clutch drum (inner/outer) - holders, cages, flanges, etc. - carriers and differential grps. - bevel pinions/gears (2/88, CGR brochure) ---Ghinassi announced the introduction of pumps of its own manufacture adaptable to Caterpillar oil, water, fuel and hydraulic pumps, in a general letter to their customers dated April 7, 1988. The letter points out the following: -The existing production process has been improved and refined thanks to new sophisticated quality control systems. Every CGR pump is fully interchangeable with the original one. Every pump is tested individually. Every pump is delivered with the standard warranty certificate. Given the large quantities scheduled for production, pricing has also been substantially improved and a special discount will be granted on predetermined purchase quantities.The letter was accompanied by a catalog listing 159 Caterpillar part numbers. The brochure implies that the pumps are manufactured in their plant in Ravenna, Italy. (9/88 - JMEsperet, Rome PSSR) ---Also see PRICING section. PRODUCT FEATURES: QUALITY: 35. Specific information can be obtained from Parts Competitive Bulletins (PCB) and/or Competitive Test Reports (CTR). MARKETING: PRODUCT SUPPORT, WARRANTY: PRICING: Transaction level price observations are available in the Competitive Parts Report (CPR) portion of PMIS. (4/99) ---Pricing (P&MR) Dept. has list price information in their CIS system, the most current being effective 3/1/92. (4/99) ---COSA Parts Price Announcement In The Industry (PPAI) 11/92 - COSA Parts Pricing calculated the following Ghinassi dollar list price increases between September 1990 and July 1991 price levels: Major Class% ChangeUndercarriage Engine GET Drive Train Hydraulic General Use NEC All Parts0.4% 1.2% -1.1% 0.5% -0.9% -0.8% -0.8% 0.3%Above average percentages are weighted by COSA dealers' 1991 orders on Caterpillar. Compared to the previous document, the latest Ghinassi price list contains an additional 470 line items, bringing the total number of priced parts to 12,144. Major additions occurred in Hydraulic, General Usage and NEC parts, i.e.: Product CodeDescriptionItems1 2 3 5Undercarriage Engine GET Drive Train10 38 26 176A 6B 6S 6Pumps, Motors Hydraulic Cylinders Seals Hydraulic12 145 13 1798B 8H 8P 8Sleeve Bearings Hardware Pins General Usage34 14 38 1009M 9Z 9Plates, Brackets Miscellaneous NEC53 38 100TotalAll Parts470 36. (10/26/92 - VAZanzi, COSA, Parts Pricing) ---COSA Parts Price Announcement In The Industry (PPAI) 9/92 - Using COSA dealers 1991 orders on Caterpillar for weighting purposes, COSA Parts Pricing calculated the Ghinassi increased dollar list prices for cylinder heads (Product Code HAA) between February 1991 and March 1992 by an average of 5.6%. Details by part number are as follows: 1N4304 4N6765 4N7000 7N0858 7N1303 7N36305.0% 5.0% 15.9% 5.0% 5.0% 10.3%7N6340 8N1187 8N1188 8N6000 8N6004 8N679610.2% 5.0% 5.1% 5.0% 5.0% 5.0%1P4303 2S9004 5S1884 7S7070 7W000910.3% 10.3% 10.3% 10.2% 5.0%(9/92 - VAZanzi, COSA Parts Pricing) ---COSA Parts Price Announcement In The Industry (PPAI) 7/91 - COSA Parts Pricing calculated the following Ghinassi dollar list price changes from their May 1989 list price levels: Major ClassDec. 1989Undercarriage Engine Parts GET Drive Train Parts Hydraulic Parts General Usage Parts NEC Parts All PartsMar. 1990Sept. 1990Total3.1% 3.3% 7.4% 1.3% 2.4% 2.7% 2.1% 3.6%2.4% 2.7% 4.8% 3.4% 2.2% 2.0% 2.0% 3.1%1.9% 1.1% (0.3%) 1.1% 1.3% 2.1% 1.3% 0.9%7.6% 7.3% 12.2% 5.9% 6.0% 7.0% 5.5% 7.8%Simultaneously, price levels compared to Cat SCL and product coverage based on COSA 1990 demand were determined.Major ClassAverage List Price as a Percentage of Cat June 17, 1991 SCLUndercarriage Engine Parts GET Drive Train Parts Hydraulic Parts General Usage Parts NEC Parts Total Parts86% 93% 150% 76% 68% 73% 61% 93%Product CoverageLine ItemsNew Additions11% 35% 54% 25% 24% 32% 6% 29%757 2,552 704 1,705 2,056 3,663 536 11,97337 107 166 32 74 173 16 605COSA cautions against drawing rash conclusions from the calculated percentages by major class, which tend to distract from extreme situations that do exist on a product code and/or part number level. For more detailed analysis, individual part number price information is available in the competitive information system maintained by Parts Pricing. (6/91 - VAZanzi, COSA, Parts Pricing) ---Price Increases 4/90 - Reportedly due to the devaluation of the U.S. dollar currency against the Italian Lira (almost 37. 10%) Ghinassi has been forced to increase their prices. They also claim increased cost of raw material (forgings and castings) as a factor. Effective February 15, 1990, prices on miscellaneous parts will increase 3% and cylinder heads jump 5%. (2/90 - CofA/CGR, Ghinassi Customer Letter). ---Prices quoted generally bear no relationship to their published prices (GHAppel, COSA Business Economics, 6/87) DISTRIBUTION & GEOGRAPHIC AREAS SERVED: Inventory Levels in Millions: (4/94 through 3/96 - D&Bs) 1990 1991 1992 1993 1994 1995 1996 1997-L9,956 6,092 6,796 9,885 13,041 12,102 14,817 13,288$8.3 4.9 5.5 6.3 8.1 7.4 9.6 7.8---Exports 95% of sales, 5% national. Sells directly and via agents. (4/94 through 4/99 - D&Bs) ---Imports 10% of purchases from Europe and America. (4/99 - D&B) Imports 3% of purchases. (4/94 through 3/96 - D&Bs) ---From January 4, 1994 to February 23, 1995 Ghinassi made eleven known parts shipments into the U.S., nine to Regal Equipment of Knoxville, TN (876,316 pounds total cargo weight), one to Costex of Miami, FL (42,419 pounds) and one to Florin Tractor Parts of Sacramento, CA (42,224 pounds). ---Below is the number of Cat dealers submitting Competitive Parts Reports (CPR) during the latest 8 qtrs. as of 4/99. Additional detail on Cat dealers, distributors, and pricing is available in the CPR portion of PMIS. NACD 1CAPL 3CCL 1COSA - 10GENERAL: Ghinassi is ranked as an 'A' DT (Gear) competitor, an 'A' Engine (Cyl. Head) competitor and a 'B' Hydraulic (Pump, Motor) competitor. (4/99) ---Associate member of Independent Distributors Association (IDA). (1995 Membership Roster) APPARENT MARKETING STRATEGY: To diversify and increase the range of the cylinder heads produced. (2/88, Ghinassi Letter) ASSESSMENT OF STRENGTHS: ASSESSMENT OF WEAKNESSES: FUTURE OUTLOOK: OMG and CGR financial condition good. (4/99 - D&Bs) LAST D&Bs: 38. OMG - April 14, 1999 DUNS 43-376-9353 (OMG Officine Meccaniche Ghinassi SpA) Standard Industrial Code (SIC)/Description: 3523 - Manufacturing, Agricultural Machinery Manufacturers CGR - April 14, 1999 DUNS 43-173-8541 (CGR Cornelio Ghinassi Ricambi SpA) Standard Industrial Code (SIC)/Description: 5013 - Wholesale Trade, Motor Vehicle Part Wholesalers LAST PROFILE REVIEW/UPDATE:April 14, 1999. 39. HALADJIAN GROUP, THE May 20, 1996 33RF INTERNET:http://www.haladjian.fr/COMPETITIVE TYPE:DistributorMAJOR PRODUCT CLASSES:Undercarriage Engine GETDrive Train HydraulicsLOCATIONS: Headquarters -Sorgues, France in the Vaucluse region just north of Avignon and also near Nimes.BranchesParis Toulouse Bordeaux (Autumn 1995 - Esco Ladle)----Haladjian has constituted additional warehouse facilities: the first known as SOCOTRAC, in the Paris district and the second, better known as DREM TP, in the south-west, with warehouses in Bordeaux and Toulouse. (4/96 - Berco News) EMPLOYMENT: 1993 ???? 1995= = =80 85 135(Winter 1993 Esco Ladle) (4/7/94 Dialog, D&B International) at their four locations (Autumn 1995 - Esco Ladle) ---Of the 135 employees, 22 are specialists attending to customer needs in the field. Haladjian reportedly has 5,000 customers. (4/96 - Berco News) SALES:Approx.???? ???? 1994/95= $221,000,000 (Local Currency)(4/7/94 - Dialog, D&B Intrl.) = $ 37,824,300 (U.S. Currency)(4/7/94 - Dialog, D&B Intrl.) = $260M French Franc Annual Sales, approx. $52M. (Autumn 1995 - Esco Ladle)HISTORY: 1962 1982-Founded by Pierre Haladjian, selling spare parts for Caterpillar equipment only. Pierre's son Serge took over the business and began broadening the business by distributing parts for virtually all machine makes: Fiat, Komatsu, Poclain, Liebherr, etc., as well as Caterpillar. They also broadened their product offering. (Autumn 1995 - Esco Ladle) 40. 1989 1993-Haladjian's subsidiary in Paris, Socotrac became an Esco dealer. January 1, the company's main store in Sorgues was appointed the Esco dealer for Southeastern France. (Winter '93 Esco Ladle)PRODUCTS: Haladjian supplies replacement parts for many brands, including Fiat, Komatsu, Liebherr, Caterpillar, and JCB. (4/96 - Berco News) ---Haladjian's parts business (no machine sales) falls into four categories: mechanical parts, wear parts, equipment (such as buckets and couplers), and other products like electronic security systems. They carry about 200 different products, and stock about 100,000 parts at any given time. Brands offered by Haladjian include but are not limited to the following: - Esco (GET) - Bucyrus Blades (GET) - Remop (S.A. Metalogenia) (GET) - Kennametal (Cutter Bits)- Berco (U/C) - Donaldson (Filters) - OTC - Parker (Hydraulic)(Autumn 1995 - Esco Ladle) ---Berco's (undercarriage) connection with Haladjian dates back to the company's founding year, 1962. Haladjian is the exclusive agent for Berco products within the French territory. The 14,000 sq. meter warehouse in Sorgues, France, carries over 100,000 items. (4/96 - Berco News) PRODUCT FEATURES: QUALITY: Refer to Parts Competitive Bulletins (PCB) and/or Competitive Test Reports (CTR) for the brands offered by Haladjian. MARKETING: PRODUCT SUPPORT: In recent years, a massive investment has allowed expansion of the company's software system which can now effectively organize and integrate all departments within the group--not only the warehouse, purchase and sales departments. By systematically recording and analyzing client data concerning the main technical specifications of equipment and their maintenance program, Haladjian has built up a databank of information which, among many benefits, highlights components subject to wear and fatigue. By gaining a better understanding of the expected working life of such items, the company can forecast individual customer service requirements and ensure the necessary spare parts are in stock when needed. (4/96 - Berco News) PRODUCT WARRANTY: 41. PRICING: There has been transaction level price observations available in the Competitive Parts Report (CPR) portion of PMIS but none as of January 1996 (most current eight quarters). DISTRIBUTION & GEOGRAPHIC AREAS SERVED: Of Esco's 11 dealerships in France, three are part of the Haladjian Group. According to Esco, Haladjian is their number one dealer in France. Perhaps no other Esco dealer in the world is as highly computerized as Haladjian. When standard business computer packages were found lacking, Haladjian established its own programming department. They designed programs not only to manage purchasing, inventory and deliveries, but also to analyze the market. A database was created of thousands of customers, their machines, their maintenance schedules, and prospective parts needs. The Haladjian team has become adept at using the computer database to anticipate customers' needs and to fill those needs speedily. Customers appreciate Haladjian's uncanny ability to nearly always have necessary parts on hand. To assure a reliable inventory of parts from North America, Haladjian operates a purchasing office in New York which ships several container loads monthly to France. (Autumn 1995 - Esco Ladle ---Strongly focuses on the French market. Part of a network of dealers representing Esco Europe. (Winter 1993 - Esco Ladle) GENERAL: Haladjian reportedly answers over 1,000 telephone inquiries per day. (4/96 - Berco News) ---Serge Haladjian is president of company. (Autumn 1995 - Esco Ladle) ---Haladjian Freres was added to Caterpillar Export Services (CES) Reseller List May 22, 1995. ---Not a member of Independent Distributors Association (IDA), as of 1995 Membership Roster. APPARENT MARKETING STRATEGY: Reportedly Haladjian's commitment to meeting customers' parts needs without being distracted by equipment sales or repair work has helped them grow. (Autumn 1995 - Esco Ladle) ---"Top quality products backed by outstanding service." (Winter 1993 - Esco Ladle) ASSESSMENT OF STRENGTHS: According to Haladjian "For each product, we represent the best line, we know and respect the customer, we know the parts and we are quick and dependable in our deliveries. We are better than our competitors in three ways: quality, price and service." (Autumn 1995 - Esco Ladle) ASSESSMENT OF WEAKNESSES: 42. No service capability. (1/96) FUTURE OUTLOOK: Over the next two years, they will spend 30 million Francs on capital improvements to buildings -- all to better serve customers. (Autumn 1995 - Esco Ladle) LAST D&B: April 7, 1994 (Dialog, File 518, D&B International) LAST PROFILE REVIEW/UPDATE: May 20, 1996 DUNS (D&B NUMBER): 27-618-0106 SIC (CODES): 50 82 Construction and Mining Machinery 50 85 Industrial Supplies 43. HARDINGS INC. May 2, 1997 31RJ COMPETITIVE TYPE:DistributorMAJOR PRODUCT CLASSES:Undercarriage Engine GETDrive Train HydraulicsLOCATIONS: Headquarters-Lowell, Indiana 109 W. Commercial Ave.26,000 sq. ft. in one-story brick and frame building in good condition. Has a total of four buildings at this location. Central business section on main street. (5/97 - D&B) EMPLOYMENT: Apr Apr Apr1990 1992 1997= = =41 31 31(8/90 - D&B) (includes 3 part-time) (11/92 - D&B) (includes 5 part-time) (5/97 - D&B)SALES: Fiscal year ends 12/31. Year ==== 1993 1994 1995 1996= = = =Sales ===== $6,035,639 6,615,236 6,921,510 6,973,382---Net Profit ========== $1,517,481 1,783,311 1,742,309 --(5/97 - D&B) (5/97 - D&B) (5/97 - D&B) (5/97 - D&B)HISTORY: 1925-Business started by Emil HardingPRODUCTS: Harding's advertisement states they are a full service facility for parts and shop and field service, also sales and rents used construction equipment. Complete undercarriage rebuild center - Track press service 44. - Idler welding - Bottom roller and idler exchange program - Large inventory of new and rebuild undercarriage - Free undercarriage inspections Hydraulic hose building and repair - 2-, 4-, and 6-wire hoses - Crimp-on and press-on capabilities Ground Engaging Tools - Large inventory of teeth and adapters - Cutting edges - Complete bucket and blade repair Turbocharger and fuel injection rebuilding service Complete engine machine shop and component rebuilding Large selection of daily supply items including oils, grease, boots, shovels, o-ring kits Hardings claims to have a huge parts inventory including engine parts, final drive components, loader linkage pins and bearings, filters, steering clutch components, and undercarriage parts for Caterpillar, John Deere, Case, Komatsu, Hitachi, Fiatallis, and most other crawler equipment. (4/14/97 - Construction Digest's Hardhat supplement) ---The following is a list of known suppliers of replacement parts offered by Hardings, extracted from the Construction Equipment Magazine's 1997 Buyers Guide, dated Nov. 30, 1996.-Supplier ======== AE Clevite Huber Reversible Fan Industrial Parts Depot (IPD) Baldwin Filters Bucyrus Blades Hensley Pemberton Inc. Italtractor BLS Enterprises Inc. Parker Hannifin Heavy Equipment Parts Co. Federal-Mogul Corp. S.K. Wellman, Velvetouch Div. Wise, Co., Inc., The Burch Manufacturing Spectra Inc. ACS Industries Inc.Products ======== Engine Parts Engine Fans Probably Engine and/or GET Filters GET GET & Bucket Div. Attachments Undercarriage Track Pads Hose Products Div. "Bulldog" Seals Probably Engine and/or Seals Friction Discs Seats --BucketsPRODUCT FEATURES: QUALITY: Reference Parts Competitive Bulletins (PCB) and/or Competitive Test Reports (CTR) on brands offered by Hardings. 45. (5/97) MARKETING: Advertises in Construction Digest magazine. (5/97) PRODUCT SUPPORT: Hardings offers a nationwide on-line used and surplus parts sourcing service. (4/97 - Construction Digest) WARRANTY: PRICING: No pricing information available in either Pricing & Market Research's Competitive Parts Report (CPR) or CIS systems. (5/97) DISTRIBUTION & GEOGRAPHIC AREAS SERVED: Claims overnight availability on most nonstock items. Also reportedly an emergency parts delivery service is available. (4/97 - Construction Digest) ---Territory is Northern and Central Indiana and Illinois. (4/97 - Construction Digest) GENERAL: Ownership is as follows: 50% of capital stock owned by Clarence B. Harding 25% of capital stock owned by Clarence E. Harding 25% of capital stock owned by Catherine Marshall (5/97 - D&B) ---Hardings is a Regular Member of the Independent Distributors Association (IDA). (1995 Membership Roster) APPARENT MARKETING STRATEGY: ASSESSMENT OF STRENGTHS: Financial condition strong. (5/97 - D&B) ASSESSMENT OF WEAKNESSES: LAST D&B: May 2, 1997 LAST PROFILE REVIEW/UPDATE: May 2, 1997 DUNS (D&B NUMBER): 00-175-4159 SIC (CODES): 5082 Wholesale Trade, Construction & Mining Machinery & Equipment 7699 Business Services, Repair Shops & Related Services, n.e.c. 46. HEAVYQUIP November 11, 1999 31AZ (Heavyquip is a tradestyle for Crawler Parts Inc., which is a subsidiary 100% of Jackson Iron & Metal Co. Inc., Jackson, MS. (11/99 - D&B) INTERNET:http://www.heavyquip.comCOMPETITIVE TYPE:DistributorMAJOR PRODUCT CLASSES: Undercarriage Engine GETDrive Train Hydraulics General UsageLOCATIONS: Headquarters: Pearl, MS, 248 N. Pearson Rd. (Hwy 80 & Pearson) - owns 100,000 sq. ft. in one story steel building, industrial section on well-traveled street. Owns five buildings on premise. (11/99 - D&B) Branch locations per D&B reports, note changes: 3/98 (9/98-D&B), 1/97 (2/97-D&B), and 6/95 (1/96-D&B)6/94 (12/94-D&B)4/93 (6/93-D&B)2/92 (12/92-D&B)Pearl, MS -Norcross, GA Memphis, TN Nashville, TN Knoxville, TN Houston, TX --6 BranchesPearl, MS Acworth, GA Norcross, GA Memphis, TN Nashville, TN Knoxville, TN Houston, TX --7 BranchesPearl, MS Acworth, GA Norcross, GA Memphis, TN Nashville, TN Knoxville, TN Houston, TX --7 BranchesPearl, MS -Norcross, GA -Nashville, TN Knoxville, TN Houston, TX Mobile, AL Jacksonville, FL 7 Branches---4/28/99 Branch Locations (8): Pearl, MS; Norcross, GA; Memphis, TN; Jacksonville, FL; Little Rock, AR (newest location). (11/11/99 - D&B)Nashville, TN; Knoxville, TN; Houston, TX; 47. ---Parent, Jackson Iron & Metal Co., has four other unrelated subsidiaries. (11/99 - D&B) EMPLOYMENT: Aug Oct Nov Jan Feb Jun Jun Jan Mar Apr1985 1986 1988 1991 1992 1993 1994 1995 1997 1998 1999SALES:Feb Apr Jun Jun Aug Mar Apr1984 1986 1988 1989 1992 1993 1994 1995 1996 1997 1998 1999= = = = = = = = = = =150 (30 at headquarters) (6/86 - D&B) 150 (30 at headquarters) (7/87 - D&B) 130 (35 at headquarters) (3/89 - D&B) 130 (35 at headquarters) (11/91 - D&B) 100 (30 at headquarters) (12/92 - D&B) 115 (30 at headquarters) (6/93 - D&B) 104 (30 at headquarters) (12/94 - D&B) 115 (30 at headquarters) (1/96 - D&B) 128 (30 at headquarters) (2/97 - D&B) 130 (36 at headquarters) (9/98 - D&B) 160 (70 at headquarters) (11/99 - D&B)(Millions) = $26.5 = 23.3 = 21.1 = 20.6 = 20.0 projected = 22.0 projected = 22.0 projected = 25.0 projected = 25.0 projected = 29.0 = 32.0 projected = 40.0 projected(11/91 - D&B) (12/92 - D&B) (4/93 - D&B) (6/94 - D&B) (1/96 - D&B) (2/97 - D&B) (9/98 - D&B) (9/98 - D&B) (11/99 - D&B)---Approx. half of Heavyquip's sales are in undercarriage. (9/98 & 11/99 - Heavyquip, Internet) ---Note percent of sales changes over the years. Information from previous D&B reports (no splits provided since 6/95):Tractors & Parts Repair Tractors HISTORY:6/95 50% 50%6/94 70% 30%7/93 70% 30%4/93 85% 15%2/92 85% 15%1/91 85% 15%11/88 85% 15% 48. 1952 1958-1984-1986 1987-1991-Business started Present control succeeded. Heavyquip is a trade name for Crawler Parts Inc., subsidiary of Jackson Iron & Metal Co., Inc. (11/91 - D&B) Name changed from Jackson Tractor Parts Inc. (retail oriented) and Crawler Parts Inc. (wholesale parent company) to HeavyQuip. (3/85 Construction Equipment Magazine) Opened Jacksonville, FL branch, parts and full service track shop. Closed Birmingham, AL branch. Effective June 1, 1987, Heavyquip (Memphis Branch) evolved into Service and Equipment Co. (SECO). The name change is a result of taking on the Dresser line of equipment sales and rentals. Name change was to form a new corporation and take on a partner, significantly increasing the capital in SECO. (8/87 - RDJones, PSR, Minneapolis District) Sold one or both Alabama locations to Tractor & Equipment Co., Birmingham, AL (OED for Komatsu & Dresser). The Birmingham location owned by T&E is now called Tractor Parts & Service. Corbin, KY branch closed in 1987 or before, due to slow business in coal industry and heavy competition from Brandeis. Closed Shreveport, LA outlet after only approximately 6 months. (7/91 - NACD, Houston District)PRODUCTS: Wholesales and retails construction parts and services. (9/98 - D&B) ---Heavyquip claims to be the largest independent retail parts and service company in North America, with full service shops located throughout the Southeastern United States. Offers an assortment of heavy equipment parts for all types of machinery, specializing in: Caterpillar, John Deere, J.I. Case, Dresser, Komatsu, International Harvester and Fiat. Heavyquip claims to have approx. 100,000 different parts in their inventory as of 11/99. This number is updated regularly and posted on their Internet home page. Heavyquip sales are about half in undercarriage and the other half in a variety of parts, including ground engaging tools, engines, transmissions, other power train parts and used equipment. Current suppliers for parts are located in the United States, Italy, Germany, Spain, Austria, Brazil, Australia, Thailand, China, and Argentina. (11/99 - Heavyquip, Internet) ---Heavyquip sells new, used and rebuilt parts for heavy construction equipment. (2/97) ---The following lists the companies Heavyquip represents according to Construction Equipment Magazine's 1999 Buyers Guide, effective 11/30/98: Competitor AE Clevite Engine Parts Anvil Attachments Avon Bearings Corp.Major Class ENG DT 49. Bucyrus Blades Inc. Earnest Machine Products Co. Federal-Mogul Corp. H&L Tooth Co. Heavy Equipment Parts Co. "Bulldog" Henderson Manufacturing Hensley, G.H. Industries Hercules Hydraulics Industrial Parts Depot (IPD) Intertractor America Corp. (I-trac) Italtractor America Inc. (ITM) Kenco Engineering Inc. Miba Frictec GmbH Svendsgaard, Ira, & AssociatesGET HRDW ENG GET ENG, HYD GET HYD Full Line U/C, GET? U/C GET Friction Material---In addition to the above Buyers Guide information, Heavyquip has been known to source from the following companies: Anten MTP Berco Ameri-Forge PyrsaU/C U/C U/C U/C GETNordtrack U/C USCO U/C Sorefa U/C Esco GET and many others GET ---In addition to undercarriage and GET, Heavyquip claims to maintain one of the largest lines of non-undercarriage parts in the United States. This includes parts from other technical parts manufacturers. - Gears - Hydraulic/Internal Oil Pumps - Bearings - Friction Materials - Pins and Bushings - Trunion Balls and Caps - Fuel System Parts - Loader Pin and Bushings - Transmission Parts - Engine Parts - Exhaust Systems (11/99 - Heavyquip, Internet) ---Heavyquip's current suppliers of parts are located in: -United States Spain-Italy Austria-Germany Brazil 50. -Australia Argentina-Thailand-ChinaMost imported parts are brought into Jackson, Mississippi, and then redistributed to branches and wholesale customers, using weekly stock orders. (11/99 - Heavyquip, Internet) -