ADT 2003 Annual Report Download - page 21

Created as a new business segment in 2003, Tyco Plastics and
Adhesives aligns our existing plastic film, pressure sensitive
adhesives, coated products, garment hangers, and catering-
ware businesses into one cohesive operating segment.
Our focus is to build on our diverse product platforms through
customer-focused innovations. We will spend many hours in
the coming year listening to our customers to better understand
their needs. We will also continue to work cooperatively with
them as partners in creating new products and applications to
help them achieve their goals. This renewed commitment to
our customers is a cornerstone of our organic growth platform.
AMONG OUR 2003 HIGHLIGHTS
•• Increased sales volume for plastic sheeting and duct tape
products, driven in part by heightened security awareness.
•• Focused efforts on reducing inventories and receivables
resulted in a significant improvement in working capital.
•• Achieved great strides to take cost out of the segment, pri-
marily by reducing selling and administrative expenses and
minimizing direct manufacturing costs.
•• Built a strong new leadership team at both the staff and busi-
ness unit levels by recruiting top talent in every function.
OPERATIONAL EXCELLENCE
Six Sigma and global sourcing were among the first initiatives
launched in 2003. The business is using Six Sigma to drive pro-
ductivity in manufacturing and supply chain operations — not
only reducing costs and improving margins, but also helping to
serve customers better.
Looking Ahead
With approximately 20% of Tyco Plastics and Adhesives rev-
enues coming from outside the U.S., the expansion of sales and
marketing efforts internationally will allow the business to
expand globally and grow with its existing customer base — and
capture new customers in underserved markets. New product
development should add exciting organic growth opportunities
and strengthen Tyco Plastics and Adhesives position in every
segment. The business will focus on new sales-generating
merchandising programs across all retail product offerings. The
Ludlow Coated Products business will apply some of its unique
technology to the rapidly growing medical packaging market.
And Adhesives, the number-one producer of duct tape globally,
will bring industry-leading corrosion protection technology to
the world’s vast water, natural gas and oil pipeline infrastructure.
With our growing focus on operational intensity and organic
growth initiatives, we believe that 2004 will be a milestone year
in the evolution of Tyco Plastics and Adhesives.
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Tyco Plastics was awarded a 2003 VENDOR OF THE
YEAR award from Do-It-Best Corp., an industry
cooperative representing more than 4,000 inde-
pendent hardware stores worldwide, for outstanding
sales growth, communications, product quality and
customer service.
A&E Products recently launched PARTYPAL,the
first single-use, plastic plate with a convenient
beverage holder that secures a cup, glass or other
beverage vessel — to prevent spills during parties
and receptions.
Innovating to Meet
Ever-Changing Customer Needs
In 2003, Tyco Plastics introduced RUFFIES ON THE GO
trash bags, a new one-gallon package that is com-
pact enough for diaper bags, automobile glove
compartments — and even backpacks and purses—
to make cleanup on the go more convenient than ever.
SEGMENT HIGHLIGHTS
Tyco produces a variety of DUCT TAPE products that have
a broad range of uses, at home and on the job. In one
recent example, Tyco Adhesives received a letter from a
member of the U.S. armed forces whose unit was able to
complete an important mission by using Tyco duct tape
to temporarily fix a broken radiator hose on a Humvee.