ADT 2007 Annual Report Download - page 100

demand for parts and after-market services in our recurring revenue business. We intend to leverage
the breadth of our product portfolio and our geographic capabilities to enhance our ability to meet
customer requirements for global projects. We intend to capitalize on growth opportunities in key
emerging markets by accelerating our investment in sales and marketing. We also intend to focus on
improving profitability through the optimization of our manufacturing footprint and product offerings.
Services and Products
Flow Control designs and manufactures a wide variety of valves, actuators, controls, pipes, fittings
and heat tracing products. Valve products include a broad range of industrial valves, including on-off
valves, safety relief valves and other specialty valves. Actuation products include pneumatic, hydraulic
and electric actuators. Control products include limit switches, solenoid valves, valve positioners,
network systems and accessories. For the water market, Flow Control offers a wide variety of pipes,
valves, hydrants, house connections and fittings for water transmission and distribution applications.
Flow Control is also a global provider of heat tracing services and products. In addition to these core
products, Flow Control makes a variety of specialty products for environmental (emissions monitoring,
water flow and quality monitoring, dust filter cleaning systems), instrumentation (manifolds, enclosures,
isolation valves) and other applications. We manufacture these products in facilities located throughout
the world.
Flow Control products are used in many applications including power generation, chemical,
petrochemical, oil and gas, water distribution, wastewater, pulp and paper, commercial irrigation,
mining, food and beverage, plumbing and HVAC. Flow Control also provides engineering, design,
inspection, maintenance and repair services for its valves and related products.
Flow Control products are sold under many trade names, including Anderson Greenwood, Biffi,
Crosby, Keystone, KTM, Raychem, Sempell, Tracer and Vanessa. Flow Control sells its services and
products in most geographic regions directly through its internal sales force and in some cases through
a network of independent distributors and manufacturers’ representatives.
Customers
Flow Control’s customers include businesses engaged in a wide range of industries, including
power generation, oil production and refining, chemical and petrochemical, pharmaceutical, food and
beverage, gas, water, marine and shipbuilding and related process industries. Customers include end
users as well as engineering, procurement and construction companies, contractors, OEMs and
distributors. Flow Control operates an extensive network of sales, service and distribution centers to
serve our wide range of global customers. Flow Control is a global company with 40% of sales in
Europe and the Middle East, 25% from the Americas, 22% from the Pacific region and 13% from
Asia.
Competition
The flow control industry is highly fragmented. We compete against a number of international,
national and local manufacturers of industrial valves as well as against specialized manufacturers on the
basis of product capability, product quality, breadth of product line, delivery and price. Our major
competitors vary by region.
Safety Products
Safety Products designs, manufactures and sells fire protection, security and life safety products,
including fire suppression products, breathing apparatus, intrusion security, access control and video
management systems. In addition, Safety Products manufactures products installed and serviced by
ADT Worldwide and Fire Protection Services. We are a major provider of safety products, including
8 2007 Financials