Graco 2007 Annual Report Download - page 30

Newell Rubbermaid Inc. 2007 Annual Report
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BUSINESS SEGMENT OPERATING RESULTS
2007 vs. 2006 Business Segment Operating Results
Net sales by segment were as follows for the year ended December 31, (in millions, except percentages):
2007 2006 % Change
Cleaning, Organization & Décor $2,096.4 $1,995.7 5.0%
Office Products 2,042.3 2,031.6 0.5
Tools & Hardware 1,288.7 1,262.2 2.1
Home & Family 979.9 911.5 7.5
Total Net Sales $6,407.3 $6,201.0 3.3%
Operating income by segment was as follows for the year ended December 31, (in millions, except percentages):
2007 2006 % Change
Cleaning, Organization & Décor $273.3 $209.1 30.7%
Office Products 317.9 287.0 10.8
Tools & Hardware 181.5 185.0 (1.9)
Home & Family 135.6 117.9 15.0
Corporate (82.0) (76.0) (7.9)
Restructuring costs (86.0) (66.4)
Total Operating Income $740.3 $656.6 12.7%
Cleaning, Organization & Décor
Net sales for 2007 were $2,096.4 million, an increase of $100.7 million, or 5.0%, from $1,995.7 million in 2006, driven by double digit sales growth in
Rubbermaid Commercial Products, resulting from new product launches during the year, mid single digit growth in Rubbermaid Home Products due to
growth in sales of home organization and insulated products, and low single digit growth in the Rubbermaid Food and Levolor branded businesses.
Operating income for 2007 was $273.3 million, or 13.0% of sales, an increase of $64.2 million, or 30.7%, from $209.1 million in 2006. The
improvement in operating income was the result of sales growth driven by strategic SG&A investments and gross margin expansion, resulting from
productivity gains and favorable mix.
Office Products
Net sales for 2007 were $2,042.3 million, an increase of $10.7 million, or 0.5% from $2,031.6 million in 2006. Growth in the Office Technology business,
driven by increased sales in the Dymo business and the acquisition of Endicia, along with favorable foreign currency, was offset by overall softness in the
U.S. resulting from weaker foot traffic in the North American office retailers and inventory corrections taken within that same channel.
Operating income for 2007 was $317.9 million, or 15.6% of sales, an increase of $30.9 million, or 10.8%, from $287.0 million in 2006. This increase
primarily resulted from gross margin expansion, resulting from favorable mix and pricing initiatives, partially offset by increased investment in brand
building activities.
Tools & Hardware
Net sales for 2007 were $1,288.7 million, an increase of $26.5 million, or 2.1%, from $1,262.2 million in 2006. The successful commercialization of
certain products, particularly bandsaws, and favorable foreign currency drove sales growth in Europe and Latin America, which more than offset continued
softness in the domestic tool and hardware businesses affected primarily by the U.S. residential construction market. The Company continues to experience
solid growth in the Irwin and Lenox branded products which combined yielded mid single digit growth for the year.
Operating income for 2007 was $181.5 million, or 14.1% of sales, a decrease of $3.5 million, or 1.9%, from $185.0 million in 2006. Top line growth
and productivity initiatives were more than offset by investments in strategic brand building.
Home & Family
Net sales for 2007 were $979.9 million, an increase of $68.4 million, or 7.5%, from $911.5 million in 2006. Broad based success in all three business units
was fueled by new product launches and better sell-through resulting from demand creation activities.
Operating income for 2007 was $135.6 million, or 13.8% of sales, an increase of $17.7 million, or 15.0%, from $117.9 million in 2006. The increase
was primarily driven by top line sales growth supported by increased SG&A investments.