Graco 2006 Annual Report Download - page 7

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and sustainable excellence. For the first time in four
years we achieved what I refer to as “ the growth
trifecta” – simultaneous top line, gross margin and
bottom line progress. Sales rose 8.5 percent, almost
5 percent of which was organic; gross margin expanded
260 basis points and operating income increased
17 percent over the prior year. This strong performance
was broad-based, with all our segments posting both
top and bottom line growth.
During the year we also improved our portfolio, divesting
several non-strategic businesses, integrating the DYMO
acquisition and significantly increasing the profitability
of the Levolor/Kirsch and Rubbermaid Home Products
businesses, which were previously classified as “ Fix.”
We now have a platform of core businesses and brands
that can deliver sustainable growth.
We continue to transform our manufacturing and
sourcing footprint. Our goal is to achieve best total
delivered cost through increased capacity utilization,
more production located in low-cost countries and
strategic use of third party sourcing. Earlier this year,
we expanded the scope of our restructuring initiative,
Project Acceleration, to include our distribution
Thanks to the resiliency and
hard work of the men and
women of Newell Rubbermaid,
2006 was a watershed year.
Mark D. Ketchum
President & Chief Executive Officer
05