Graco 2007 Annual Report Download - page 31

Newell Rubbermaid Inc. 2007 Annual Report
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2006 vs. 2005 Business Segment Operating Results
Net sales by segment were as follows for the year ended December 31, (in millions, except percentages):
2006 2005 % Change
Cleaning, Organization & Décor $1,995.7 $1,921.0 3.9%
Office Products 2,031.6 1,713.3 18.6
Tools & Hardware 1,262.2 1,260.3 0.2
Home & Family 911.5 822.6 10.8
Total Net Sales $6,201.0 $5,717.2 8.5%
Operating income by segment was as follows for the year ended December 31, (in millions, except percentages):
2006 2005 % Change
Cleaning, Organization & Décor $209.1 $145.8 43.4%
Office Products 287.0 266.0 7.9
Tools & Hardware 185.0 171.1 8.1
Home & Family 117.9 103.5 13.9
Corporate (76.0) (46.0) (65.2)
Impairment charge
— (0.4)
Restructuring costs (66.4) (72.6)
Total Operating Income $656.6 $567.4 15.7%
Cleaning, Organization & Décor
Net sales for 2006 were $1,995.7 million, an increase of $74.7 million, or 3.9%, from $1,921.0 million in 2005, driven by mid single-digit growth in
Rubbermaid Commercial Products and Rubbermaid Home Products. New product innovation, a strong back to campus season, a successful year in
insulated products and strong sales in the size in store and custom blind products drove the sales improvement over 2005. Partially offsetting this increase
were low margin product line exits, specifically related to basic drapery hardware.
Operating income for 2006 was $209.1 million, an increase of $63.3 million, or 43.4%, from $145.8 million in 2005. The increase in operating income
was driven by the sales volume increases described above coupled with productivity initiatives and pricing actions put in place to offset raw material inflation.
Office Products
Net sales for 2006 were $2,031.6 million, an increase of $318.3 million, or 18.6% from $1,713.3 million in 2005. Excluding sales related to the Dymo
acquisition, sales increased approximately 6%, led by strong performance in the Everyday Writing and Marker businesses.
Operating income for 2006 was $287.0 million, an increase of $21.0 million, or 7.9%, from $266.0 million in 2005. Additional income from the Dymo
acquisition and the sales volume increase described above were partially offset by strategic brand building spending, restructuring related inefficiencies
and acquisition related start-up costs.
Tools & Hardware
Net sales for 2006 were $1,262.2 million, an increase of $1.9 million, or 0.2%, from $1,260.3 million in 2005, as mid single-digit growth in the Irwin and
Lenox branded tools businesses was offset by the decline in the consumer electronic tools business. Sales of other product lines increased approximately
3% in the segment, despite the challenging housing and retail environment.
Operating income for 2006 was $185.0 million, an increase of $13.9 million, or 8.1%, from $171.1 million in 2005. Productivity initiatives were
partially offset by strategic brand building investment and raw material inflation, particularly in aluminum, zinc and brass.
Home & Family
Net sales for 2006 were $911.5 million, an increase of $88.9 million, or 10.8%, from $822.6 million in 2005. Broad based success in all three business
units was fueled by sales of new products and consumer demand driven by targeted strategic SG&A investment.
Operating income for 2006 was $117.9 million, an increase of $14.4 million, or 13.9%, from $103.5 million in 2005, driven by an increase in sales
and productivity, partially offset by increased SG&A investment.