(E to Outperform Focus on: railroads. andproductivity decrease costs for New Engineered New Engineered systems that increase 2 O) train control VOLUME 23 ISSUE FOURTH QUARTER 2015 COMPANY NEWSLETTER NEW YORK AIR 2 BRAKING NEWS NEW YORK Highlights E2O Innovation Every display in NYAB’s booth showcased our corporate value of Technological Excellence through

innovative products Engineered to Outperform (E2O) what they were designed to replace.

New York Air Brake continues to focus on creating more economic NYAB’s DB-60 II™ control valve with Brake Cylinder Maintaining™ value for our railroad customers as a means to increase the growth (BCM), while Canadian Pacific’s Sr. Mechanical Engineer Abe and economic value of our company. We identify customer needs Aronian discussed the effects BCM has on cold wheel cars and the for enhanced productivity and engineer innovative, leading results that CP obtained during BCM field trials earlier this year. edge and competitive train control systems to meet those needs. On a lighter note – Jason Connell, New York Air Brake’s Senior Vice Railway Interchange 2015, the largest combined railway suppliers President of Sales / Marketing and Service, joined the Railway trade show in North America, offered us a prominent venue to Supply Institute’s Board at the RSI Annual Meeting on Sunday demonstrate the benefits of our newest product technologies on – shortly before winning a free 10 x 10’ exhibit space at next October 4–7 at the Minneapolis Convention Center as well as at October’s RSI / CMA 2016 event in Omaha! the outdoor track exhibit at BNSF’s Northtown Rail Yard.

Preliminary estimates of more than 9,500 participants have exceeded expectations and surpassed the attendance of 7,800 at the 2013 show in Indianapolis by far, indicating that the event is growing in importance among the railroad industry.

Serving and Railcar Markets NYAB acknowledged this importance with a large, eye-catching exhibit adjacent to the high traffic food court that emphasized NYAB innovations serve both locomotive and railcar applications. Separate locomotive and railcar component displays enabled our EP-60 experts to clearly demonstrate the workings of an electro-pneumatic brake system.

Each NYAB product displayed incorporated new E2O innovations to help keep trains safely in service, to boost productivity and to benefit our railroad customers’ bottom line.

Cars Run Longer with Brake Cylinder Maintaining™ Larry Vaughn, Sr. Systems Engineer at NYAB, delivered an Air Brake Association Technical Conference presentation about mitigating the effects of brake cylinder leakage on operational safety using

NEW YORK AIR BRAKE on track V o l u m e 2 3 / 2015 Employees and special guests gather for a group anniversary photo in the new NYAB Values Park. 3

NYAB Celebrates BRAKING NEWS

Special guests from Knorr-Bremse Mr. Heinz Hermann Thiele, Mrs. Julia Thiele-Schuerhoff and Mr. Klaus Deller joined New York Air Brake leadership and employees, as well as elected area officials and community supporters on July 21st to honor and celebrate NYAB’s 125-year history of serving the freight railroad industry, contributing significantly to our community and adding to the success of the Knorr-Bremse Group worldwide. Memorable events included – a VIP Anniversary Reception, a Celebration Luncheon, the Dedication of the new NYAB Values Park, an Employee Recognition Event, Presentation of Local Care Awards in recognition of Knorr-Bremse’s Global Care 10th Anniversary (see page 6) – highlighted by Mr. Thiele’s inspirational speech on Leadership to employees.

Rocky Maxson, Mike Hawthorne and Heinz Hermann Thiele unveil the values dedication circle, which Mr. Thiele read aloud, at NYAB Values Park.

Mr. Thiele, Mrs. Thiele-Schuerhoff and Mr. Deller (at right) enjoy President and CEO Hawthorne’s presentation of the 125-year commemorative coin.

Recipients of 40-years of service to NYAB awards

Mr. Hawthorne and Mr. Thiele review an original oil painting Mr. Thiele enjoyed answering questions from employees following his depicting the history of NYAB. inspirational remarks as well as touring the plant to view improvements and learn about innovative new technology like the CCB III prototype.

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BRAKING NEWS OIL-FREE COMPRESSOR V-SPEED SETS A NEW STANDARD The Oil-Free Compressor (OFC) team has successfully launched a new version of the VV1000-T compressor.

On January 23rd of this year, GE informed us that they wanted to change the motor on the VV1000-T from the 2-speed motor we have been delivering, to a new inverter-driven variable speed motor, the “V-Speed.”

The challenging part of the request was that we deliver the “rabbit” unit by week 16 and series production by week 22! The rabbit unit is General Electric’s term for the first production unit, delivered early so GE can prove out the installation on the locomotive. EP RETROFIT TEAM DELIVERS We had 12 weeks to design and validate the new assembly, source and qualify Earlier this year, our BHP Retrofit team successfully completed a large, complex project the new parts and suppliers, update and prove assembly instructions and test for Broken Hill Proprietary, better known as BHP Billiton, the world’s largest mining codes and rework the compressor test cell for the new configuration. company headquartered in Melbourne, Australia. Thanks to fantastic cross-functional team work and dedication – mission Production and project team members, including third shift employees in the second accomplished, photo above. The rabbit VV1000-T with V-speed shipped the week photo from top, pose with the final production unit in the photos above. of April 27 and the first two series production units shipped the week of May 11 – both on time. Our team delivered more than 6,400 EP systems to BHP along with large numbers of NYAB Production Quality Earns Highest Marks related retrofit components, including – GE completed their PPAP (quality approval process) and approved the VV1000-T 4600+ overlay kits including EP-60, junction boxes, intercar-connectors and hoses with the V-speed motor in May, indicating their complete satisfaction with the quality of our production processes. 1400+ retrofit components including EL-60, reservoirs and hoses More than 2300 Premtec hose assemblies The V-speed allows the GE compressor controls to regulate the compressor speed proportional to air demand. Combined with the energy advantages of We overcame many challenges to meet unprecedented EP-60 production levels – the VV1000-T and the very low carbon footprint of our oil-free compressor, the notably supplier issues, warehouse congestion and shipping logistics to meet weekly V-speed version of the VV1000-T is the perfect complement to the new Tier shipments – achieving 95% on-time delivery since project shipments began last year. IV locomotive. The V-speed also eliminates the complicated and reliability- Our efforts created long-term production benefits as well – identifying a new EP-60 challenged GE 2-speed motor control contactors, which will further improve the casting supplier resulted in improved quality and cost. already very good reliability of the VV1000-T.

From this point forward, the V-speed configuration will be the standard for Members of the BHP Retrofit project and production teams celebrated with an on-site GE OE production and all Tier IV will have compressors with the luncheon when we completed production and shipment to Australia in April. V-speed motor. —Eric Wright —Pat Purtell

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GROWING WITH VALUES NYAB INNOVATORS EARN PATENTS BRAKING NEWS BRAKING NEWS PRODUCES POSITIVE RESULTS The U.S. Patent and Trademark Office, a federal agency that NYAB Vice President of Engineering Bill Kleftis, at left in photo above, supports technological achievement by protecting new ideas welcomed more than 200 local junior high and high school students and investments in innovation, most recently awarded six interested in science, technology, engineering and math (STEM) patents to teams of 16 New York Air Brake engineers. to the Engineers Week Open House activities by defining what an engineer is and does. “Innovation and technology form the USPTO protections help keep our national economy strong by cornerstone of our success, in keeping with our corporate values of safeguarding the ability of companies like NYAB to invest in Reliability, Technological Excellence, Entrepreneurship, Passion and technological advances that allow industry to flourish as well as Responsibility,” said Bill. “Inspiring young engineers-to-be is critical create employment opportunities for millions of Americans. to unlocking their creative problem solving abilities at an early age.” These six new patents represent the following technological Teams of NYAB employees also celebrated innovations and the NYAB inventors who developed them – our corporate value of Entrepreneurship with an “E-Spirit Challenge” competition designed END OF TRAIN DEVICE FOR ECP TRAINS – Kevin Root, Dale Stevens, to demonstrate innovation, ingenuity Anthony Lumbis and Alexander Perry and teamwork that produced workable outcomes. On NYAB’s Day of “E” June10, DISTRIBUTED TRAIN INTELLIGENCE SYSTEM AND METHOD – emcee Eric Wright announced, photo at left, that NYAB President and CEO Mike Hawthorne, fifth from left in photo, and employees had voted the robotic inspection Marshall Beck concept developed by Beth Maguire’s E-Spirit ON-BOARD BRAKE SYSTEM DIAGNOSTIC AND REPORTING SYSTEM – Team, one of seven NYAB employee teams Marshall Beck and Bryan McLaughlin competing, as the Most Innovative in the corporate value Entrepreneurship Challenge. AUTOMATIC RELEASE HAND BRAKE CONTROL SYSTEM – Derick Call, Steve Newton, third from left in photo, Larry Vaughn, fourth from left, Our new, safer DB-60 II™ control valve with Jeff Sauter, second from left, and Howie Huber BCM™ (Brake Cylinder Maintaining™), is the only control valve that resupplies air pressure UNITIZED BRAKE ASSEMBLY – Eric Wright and Dan Rowland to leaky brake cylinders on freight railcars. BCM restores up to 85% of the braking force BRAKE PIPE VENT VALVE FOR LOCOMOTIVE BRAKE SYSTEM – and helps cars stay safely in service longer. John Reynolds, at left in photo, Scott Margeson, at right above, Knorr-Bremse acknowledged our new product Derick Call, Howie Huber and Steve Newton innovation with an award for Technological Excellence, photo at right, presented to President Every new NYAB patent helps to make our country, our company and CEO Mike Hawthorne and SVP Sales / and our workforce stronger – a positive outcome for all of us. Marketing and Service Jason Connell earlier —Bill Kleftis this year in Munich.

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Introducing...

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BRAKING NEWS K-B GLOBAL CARE Jeff Cecil Darren Skiles

CELEBRATES LOCALLY Jeff Cecil accepted his present position as New York Air Darren Skiles joined New York Air Brake Brake Director of Human Resources in June of this year as the new Operations Manager for our As part of the Employee Recognition after working in Operations at the Watertown plant Premtec facility earlier this year. He Event on July 21, Julia Thiele-Schuerhoff since 2014. In his new role, Jeff is responsible for all comes to Premtec with more than 25 announced community organization Human Resources programs across the company. years of manufacturing experience. recipients of 10th anniversary funding from Knorr-Bremse Global Care / Local Care based on recommendations from NYAB Maybe because he became accustomed to many Darren is a Purdue University graduate with employees, who Mrs. Thiele-Shuerhoff international visitors staying with his family in Ohio as a a Bachelor of Science in Organizational thanked individually, photo above, with result of his father’s work with Rotary youth exchanges, Leadership and Supervision. President Mike Hawthorne. Jeff’s own extensive worldwide travels began by becoming an exchange student in Brazil and backpacking extensively He started as a supervisor out of college After Knorr-Bremse Global Care announced around South America after graduating high school. and worked his way up through the in April that additional funding would Jeld-Wen Corporation as a Production be available for local programs, NYAB’s Jeff developed his credentials with process improvement Manager and then a General Manager. Charitable Initiatives Committee (CIC) as a SAP senior consultant at Ernst & Young. He helped members reviewed applications implement HR best practices for clients in North Darren currently resides in Lexington, from employees requesting funds for America and Europe. North Carolina which is about 25 minutes organizations that they personally north of China Grove. supported. See page 8 for a list of the In September of 2005, he joined the Knorr-Bremse community programs selected to receive Truck Division at Bendix in Ohio, implementing systems When he accepted the position at Premtec, Local Care funding. for both the Truck and Rail divisions across North and Darren particularly looked forward to South America on behalf of the Knorr-Bremse Group. working with the committed and skilled NYAB Charitable Initiatives Committee NYAB leadership and the dedicated NYAB President and CEO Mike Hawthorne While at Bendix, Jeff earned an MBA in Human Premtec employees to build on the solid established the CIC during this 125-year Resources Management from Baldwin Wallace foundation that he was pleased to see anniversary year to engage employee University and subsequently taught graduate level already existed. involvement in local non-profit programs students there for two years in a course he designed. as well as to reflect the philanthropic spirit He also further developed his process improvement “My role and responsibilities as Operations of Heinz Hermann Thiele. skills by earning a Six Sigma Green Belt. Manager is the growth and success of Premtec,” he says. CIC members, appointed by Mr. Hawthorne In 2012, Jeff moved his wife and two boys to Munich, to serve for one year, have reviewed more to implement best practices developed in the Under Darren’s supervision, Premtec is than 80 funding requests this year, and Americas worldwide for Knorr-Bremse. His interest continuing to improve the high quality most requests have received monetary in railroad manufacturing workforce relationships and delivery standards that NYAB support. NYAB employees seeking funding and negotiations eventually led to his return to the customers are accustomed to with steady for community programs should contact a US and to NYAB, where Jeff looks forward to making and measureable results. member of the CIC. a difference in his new HR role.

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TASK FORCE PRIORITIZES INPUT TRANSFORMATIONAL GROWTH BRAKING NEWS OF GLOBAL EMPLOYEE SURVEY THROUGH MENTORING AT NYAB

Last fall, New York Air Brake employees participated in Knorr-Bremse’s Global “For 125 years New York Air Brake has provided superior products to our customers, Employee Survey with the highest overall participation rate among all Knorr-Bremse with a focus on quality, innovation and safety. We recognize this accomplishment was Group divisions. As part of the process, each NYAB department discussed results of achieved only through the efforts and ability of our workforce. Our mentoring program the survey in greater depth through focus groups, which led to the organization of a reflects our guiding principles, our commitment to our customers and employees and our Global Employee Survey (GES) Task Force, consisting of five teams, each led by a coach, strategic objectives requiring transformational change within the company. We see it as to focus on specific areas that had been identified by the survey, as listed below – an investment into our most valuable resource, our employees.” —Mike Hawthorne, President and CEO Team 1: “I feel so overwhelmed.” – Rich Matusiak, Coach Team 2: Level of collaboration between departments – Keith Perry, Coach NYAB launched its new mentoring program in the spring of 2015 by pairing seasoned Team 3: Level of know-how transfer – Chuck Coyle, Coach company mentors with mentees who sought to – “...gain new skills, knowledge Team 4: Lack of agreements being adhered to – Jeff Gibson, Coach and insight... to learn to be more effective, to be better at relationship building, to Team 5: Roles and responsibilities – Ed Whelan, Coach communicate, build trust with other departments, build a rapport.”

Each team accepted the responsibility to identify a measurable goal in their focus area A formal, structured mentoring program pairs individuals for 15 months, learning with specific steps outlined for achieving that goal. Based on input from individual about themselves, each other, the company, and how NYAB is impacted by events employees to senior leaders, the teams developed “tests of change” in their focus in our local community as well as around the world. Monthly forum session topics areas that have provided insights into the cultural issues at NYAB. These insights include business acumen, creativity, emotional intelligence, ethics, decision making, will support team recommendations to be presented to strategic leadership and leadership, motivating others and risk taking, as well as a special segment entitled managers in December, as potential ways to lead to higher employee satisfaction and “Dialogue with the President” when Mike Hawthorne presents his perspective and strengthened overall performance for NYAB’s future. invites participants to share their views with him. In addition to the monthly meetings, mentoring pairs meet once a week for a minimum of one hour to discuss suggested or Thank You! their own selected topics. The members of the GES Task Force would like to thank all NYAB Congratulations to the NYAB mentees / mentors participating in this initial program – employees for participating in our surveys, focus groups, interviews Matt Aubertine / Jeff Aiken and tests of change. As a result of your input, we have gained a better understanding of the changes you believe will build a positive future for Stan Bach / Bob Lees NYAB and its employees. We invite you to share your opinions one last Bryan Mehaffy / John Reynolds time during the post-GES Task Force Survey in November. Marc Robbins / Gerald Hettick David Diana / Bill Kleftis Ashley, Subu, Jacob, Rich, Brendan, Shashank, Chuck, Jeff, Greg, Beth, Dave, Hugo Montes / Eric Wright Jacob, Ed, Jessica and Keith – Co-Leaders and Coaches of the GES Task Force Teams Daphne Root / John Chatterton Tim Sheridan / Jason Connell Shawn West / Craig LaVere Ryan Santamour / Karen Hongo Brendan Smith/ John Laduc

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New Employees Promotions

ABS hires through October 31, 2015 ABS promotions through October 31, 2015 Michael Moriarity – Applications Engineer Juan Hernandez – Laboratory Technician 2 Blake Warner – Process Engineer Ken Latham – Laboratory Technician 2

KCSC hires through October 31, 2015 NYAB promotions through October 31, 2015 Matthew Aubertine – Quality Manager Abbey Denk – Customer Service Representative Stanley Bach – Project Manager Rick Peck – Production Supervisor James Baldwin – Test Technician Phillip Thatcher – Quality Manager Kevin Border – Test Technician Leah Burford – Buyer NYAB hires through October 31, 2015 Tim Carr – Regional Sales Manager, Senior CO-OPS VOLUNTEER Jordana Beum – Systems Engineer Tammy Clark – Accounts Payable Lead Arifin Budihardjo – PLM Air Supply Greg Dana – Team Lead Complaint Management Fifteen of the NYAB Co-Ops took the opportunity to Gregory Dalpe – Director of Operations Beth DeForest – Systems Test Engineer 2 demonstrate one of our corporate values, Responsibility, Scott Dickerson – Test Engineer Warren Fargo – Field Service Specialist, Senior by volunteering for a community service project at Kala Evans – Customer Service Representative Julie Flynn – Material Requirements Planner, Senior the Jefferson County SPCA in Watertown on July 28. 8 Michael Gaston – Regional Sales Manager Charles Fratangelo – Regional Sales Manager, Senior The Co-Ops completed a multitude of tasks including Abigal German – Customer Service Representative Evan Hall – Electrical Engineer 2 exterior painting, grounds maintenance, walking dogs, Ben Harvey – Test Engineer 3 BRAKING NEWS Wesley German – Warehouse Shipping Coordinator socializing with cats, organizing donated supplies and Andrew Gotham – Software Engineer Daniel James – Software Engineer 4 cleaning kennels. The Director of the SPCA was thrilled Piyusha Hiray – Systems Test Engineer Matthew Jones – Shipping Supervisor Karl Kissman – Tools and Process Manager with the work that was done and the entire staff was Anjum Jabeen – Electrical Engineer Brett LaGrow – Supervisor grateful for the dedication to the local community that Alexander Jordan – Systems Engineer Meghan LaGrow – Credit and Collections Lead Krishna Karkarla – Supplier Quality Engineer this volunteer effort demonstrated. Austin Lattrell – CAD Drafter 2 Kari Mayzel – HSE Specialist —Debbie Berge Beth Maguire – Vice President of Finance and Christopher McCann – Mechanical Engineer Controlling Courtney McIntosh – Accounting Clerk Thomas Mangnall – Field Service Specialist, Senior William McIntyre – Electrical Engineer Michael Mealus – Mechanical Engineer 3 COMMUNITY RECIPIENTS OF Eugene Michali – Supply Chain Manager Renato Montandon – Systems Engineer 4 KB GLOBAL & LOCAL CARE FUNDING Sara Mills – Commodity Manager Jason Nicol – Marketing Analyst, Senior (continued from page 6) Mike Moran – HR Manager Melissa Nicol – Buyer Robert Napoletano – Supplier Quality Engineer Amanda Oldaker – Warehouse Supervisor Adams Center Fire Department Amanda Oldaker – Shipping Coordinator Gary Rogers Jr. – Field Services and Sales Specialist Adams Center Sportsman’s Club Jerome O’Rourke – Mechanical Engineer Peter Rogers – Test Technician Brownville Food Pantry Brenda Parent – Customer Service Representative Subu Saiganesh – Quality Engineer 4 4H Camp Wabasso Thomas Petersen – Systems Engineer Justin Tremblay – Commodity Manager Carthage Girls Lacrosse Konstantinos Vilaetis – Systems Engineer 3 Sarvesh Satam – Mechanical Engineer Carthage Little League Terry Ware – Systems Engineer 3 Andrew Shank – Commodity Manager Carthage Turkey Bowl David Warner – Field Service Specialist, Senior Itzamara Soules – Supplier Quality Engineer Ed Whelan – Director of Quality Dexter Library Robert Spicer – Systems Engineer Leah Whitt – Offshift Warehouse Shipping Gouveneur Breast Cancer Fund Kyleigh Stocking – Project Administrator Coordinator Gouveneur Fire Department Travis TenEyck – Mechanical Engineer John Witt – Electrical Engineer 4 Jeff County Radio Amateur Club Philip Tifone – Electrical Engineer Sascha Lutz Zimmerman – Purchasing Manager Jefferson Jaguars Ryan Triesel – Test Engineer Lewis County Humane Society Tiffany Vinette – Test Engineer TDS promotions through October 31, 2015 Lorraine Fire Department Diana Webb – Accounting Clerk Ben Burns – Software Engineer 4 New Day Children’s Center David Winner – Reliability Engineer (RAMS) Elizabeth Case – Systems Engineer 3 Northern Regional Center for Joshua Woodruff – Mechanical Engineer Ronald Chombo – Systems Engineer 4 Independent Living Saurav Zirath – Supplier Quality Engineer Rob Farish – PLM Train Dynamic Systems Wounded Warrior Outdoor Adventure Run Joe Gebhard – Software Engineer 3 Oxbow Fire Department TDS hires through October 31, 2015 Bobby Havicon – Systems Engineer 4 Pamelia Fire Department Miles Doberevsky – Engineer and Yan Liao – Systems Engineer 3 Railway Historical Society of NNY Configuration Specialist Thomas Powelson – Systems Engineer 3 Relay for Life Devon Hall – Systems Engineer Scott Powers – Software Engineer 5 Robbie Horton Memorial Sarah Kozal – GIS Analyst So. Jeff Backpack Program Ed Mendez – IT Development Operations Spay Neuter Now Team Leader ABS = Anchor Brake Shoe, LLC Star Lake Food Pantry Richard Sloane– Global Client Services, IT Analyst KCSC = Kansas City Service Center Toys for Tots Keith Wait – Systems Engineer NYAB = New York Air Brake LLC TDS = Train Dynamic Systems Town of Watertown Ambulance Watertown Red and Black

NEW YORK AIR BRAKE on track V o l u m e 2 3 / 2015