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Results of Operations
Key Performance Indicators* (in millions):
NET SALES
SEGMENTS:
The Technology Products net sales decrease is attributable to weakness in North American consumer web, television and retail store sales which
were only partially offset by our European business to business sales growth. We have made a number of investments in the European market to
better capitalize on the opportunities we see in those existing markets and we have built out our European team to support anticipated
growth. On a constant currency basis, sales declined 4.6% or $155.2 million.
The Industrial Products net sales increase in 2012 is attributable to increased product offerings on the Company’s websites, including the
recently opened Canadian website, and the addition of business to business sales personnel to strengthen our sales teams.
Table of Contents
Years Ended December 31,
2012
2011
%
Change
2011
2010
%
Change
Net sales by segment:
Technology Products
$
3,137.6
$
3,357.4
(6.5
)%
$
3,357.4
$
3,336.9
0.6
%
Industrial Products
401.9
319.9
25.6
%
319.9
250.0
28.0
%
Corporate and other
5.1
3.3
54.5
%
3.3
2.2
50.0
%
Consolidated net sales
$
3,544.6
$
3,680.6
(3.7
)%
$
3,680.6
$
3,589.1
2.5
%
Net sales by channel:
Business to business
$
2,085.8
$
1,984.4
5.1
%
$
1,984.4
$
1,769.7
12.1
%
Consumer
1,458.8
1,696.2
(14.0
)%
1,696.2
1,819.4
(6.8
)%
Consolidated net sales
$
3,544.6
$
3,680.6
(3.7
)%
$
3,680.6
3,589.1
2.5
%
Consolidated gross margin
13.8
%
14.4
%
(0.6
)%
14.4
%
13.6
%
0.8
%
Consolidated SG&A costs**
$
528.0
$
449.7
17.4
%
$
449.7
$
420.7
6.9
%
Consolidated SG&A costs** as % of
sales
14.9
%
12.2
%
2.7
%
12.2
%
11.7
%
0.5
%
Operating income (loss) from
continuing operations by segment:**
Technology Products
$
(47.2
)
$
68.0
(169.4
)%
$
68.0
$
65.0
4.6
%
Industrial Products
29.9
35.1
(14.8
)%
35.1
24.1
45.6
%
Corporate and other
(22.6
)
(22.3
)
(1.3
)%
(22.3
)
(20.3
)
(9.9
)%
Consolidated operating income (loss)
$
(39.9
)
$
80.8
(149.4
)%
$
80.8
$
68.8
17.4
%
Operating margin from continuing
operations by segment
:**
Technology Products
(1.5
)%
2.0
%
(3.5
)%
2.0
%
1.9
%
0.1
%
Industrial Products
7.4
%
11.0
%
(3.6
)%
11.0
%
9.6
%
1.4
%
Consolidated operating margin from
continuing operations
(1.1
)
2.2
%
(3.3
)%
2.2
%
1.9
%
0.3
%
Effective income tax rate
80.8
%
30.9
%
49.9
%
30.9
%
35.6
%
(4.7
)%
Net income (loss) from continuing
operations
$
(8.0
)
$
54.6
(114.7
)%
$
54.6
$
42.6
28.2
%
Net margin from continuing operations
(0.2
)%
1.5
%
(1.7
)%
1.5
%
1.2
%
0.3
%
*
excludes discontinued operations
**
includes special charges (gains), net (See Note 7 of Notes to Consolidated Financial Statements).
24