Energizer 2002 Annual Report Download - page 8

World Markets
North America The major North America region,
including the United States, Canada and Caribbean,
accounts for 59 percent of global sales and 72 percent
of segment profit. Energizer sells nearly one of every
three batteries sold in North America. In fiscal 2002,
sales increased 7 percent mainly as a result of higher
alkaline unit volume, and segment profit climbed 41
percent due to lower product costs, higher sales and
lower overhead and advertising expenses.
In 2002, we protected our market share while improv-
ing profitability by controlling our cost structure and
eliminating costs from our operations. In a marketplace
marked by an intense promotional environment, we will
continue to focus on our cost containment initiatives.
Asia Pacific The key Asia Pacific market, stretching
from Africa and the Middle East to the Far East and
countries of the Pacific Rim, contributes 19 percent of
sales worldwide and 20 percent of segment profit. Last
year, sales declined 1 percent due to currency devalua-
tion and lower volumes from our non-alkaline product
lines, partially offset by improved pricing and higher
alkaline volumes. Segment profit increased 18 percent
as a result of lower product and overhead costs.
After nearly five years of economic turbulence in the
Asia Pacific region, we began to see some meaningful
growth trends in late 2002. In spite of the troublesome
macro-environment, we have been able to protect our
market share in key markets, so that we are poised for
growth as economies rebound.
Europe The region of Europe accounts for 16 percent
of global sales and 5 percent of segment profit. For
2002, sales grew 6 percent due to improved pricing
and product mix and favorable currency translation,
and segment profit rose over 200 percent on higher
sales and lower product costs.
In southern Europe, our trade-up strategy proved
highly successful as we launched Energizer Ultra+
offering consumers improved performance at a
higher price. At mid year, we implemented a
restructuring plan to reorganize certain European
selling affiliates and expect to realize annual cost
savings of up to $2.8 million in the next fiscal year
and $4.5 million thereafter.
South and Central America The region of South
and Central America, including Mexico and the other
countries south of the U.S. border, is the smallest
of the company’s markets and contributed 6 percent
of worldwide sales and 3 percent of segment profit
in 2002. Sales dropped 25 percent due to currency
devaluation and significantly lower volumes, and
segment profit declined 27 percent as lower sales
were partially offset by higher prices and lower
product and overhead costs.
markets & operations
Energizer, one of the world’s largest manufacturers of dry cell batteries
and flashlights, markets and sells its products in more than 150 countries
around the globe. Of the company’s four primary geographic regions, North
America and Asia combine for 78 percent of sales and 92 percent of
segment profit. Our manufacturing plants in the United States, Europe,
Asia and Africa produce some 6 billion battery cells each year or nearly
one for each of the earth’s inhabitants.
ENR 2002 Annual Report Page 6