ADT 2008 Annual Report Download - page 110

Services and Products
Electrical and Metal Products designs and manufactures galvanized steel tubing and pipe products
that include electrical conduit, fire sprinkler pipe, light gauge steel tube, fence pipe and automotive
tubular components. These steel tube and pipe products are sold under the brand names Allied Tube &
Conduit, Century Tube and Tectron Tube. In addition, we manufacture various electrical support system
products including strut channel, metal framing, cable tray systems and associated fittings, sold under
brand names Unistrut, PowerStrut, TJ Cope and Acroba.
We also design and manufacture pre-wired armored and metal-clad electrical cable, flexible and
non-metallic conduit, PVC and HDPE cable protection products, as well as other fire stop products.
These offerings are sold under the brand names AFC Cable Systems, Eastern Wire and Conduit, and
Kaf-Tech.
Customers
The majority of the products manufactured by Electrical and Metal Products are used by trade
contractors in the construction and modernization of non-residential structures such as commercial
office buildings, institutional facilities, manufacturing plants and warehouses, shopping centers and
multi-family dwellings. Nearly 90% of these products are sold through wholesale distribution to trade
contractors; the remaining 10% of sales are sold to smaller contractors and homeowners through
big-box home improvement retailers. Distribution-based sales account for 75% of the total revenue for
Electrical and Metal Products segment.
The other major customer segment, representing approximately 25% of revenue, is the OEM
market. The steel tubes supplied by Electrical and Metal Products are ultimately used as a component
for OEM products in automotive, commercial or industrial end markets. Steel tubular products are sold
direct to OEMs or, in the case of automotive components, to suppliers.
Competition
The market for electrical conduit and wiring and supports, fire protection and security products
and steel tubing includes a broad range of competitors. Our principal competitors range from national
manufacturers to smaller regional players. Our customers purchase from us because of the product
availability, breadth of product line and the premium quality of products.
Foreign suppliers, especially those in China, Turkey and India, also aggressively pursue the
sprinkler pipe and fence pipe market through their standard pipe offerings.
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 fire suppression, electronic
security and life safety products. With 2008 net revenue of $1.9 billion, our Safety Products segment
comprises 9% of our consolidated net revenue. In 2007 and 2006, net revenue totaled $1.7 billion and
$1.6 billion, respectively, which represents 9% and 10% of our consolidated net revenue, respectively.
2008 Financials 7