Invacare 2013 Annual Report Download - page 13

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I-7
Europe
The Company’s European operations operate as a “common market” with sales throughout Europe. The European segment
comprised 43.1%, 38.1% and 36.7% of the net sales from continuing operations in 2013, 2012 and 2011, respectively.
Most wheelchair products sold in Europe are designed locally to meet specific market requirements. The Company
manufactures and/or assembles both manual and power wheelchair products at the following European facilities: Invacare UK
Ltd. in the United Kingdom, Invacare Poirier S.A.S. in France, Invacare (Deutschland) GmbH in Germany and Ulrich Alber Gmbh
in Germany. Manual wheelchair products are also manufactured and/or assembled at Invacare Portugal, Kuschall AG in Switzerland
and Invacare Rea AB in Sweden. As part of the manufacturing footprint rationalization strategy that began in 2011, assembly of
beds is now performed in Invacare Rea AB in Sweden. The Company's facility in Portugal continues to assemble beds, mainly
for the Southern European markets and patient lifts for the whole of Europe. Personal care products are manufactured at Aquatec
GmbH in Germany, Invacare REA Sweden manufactures Dolomite products and Invacare UK Ltd. manufactures therapeutic
support surfaces products. Seating and positioning products are manufactured at Invacare UK Ltd. or imported from Invacare’s
Motion Concepts in Canada. Oxygen products, such as concentrators and HomeFill® oxygen systems, are imported from Invacare
U.S. or China operations.
Discontinued Operations
Invacare distributed numerous lines of branded medical supplies including ostomy, incontinence, diabetic, enteral, wound
care and urology products as well as home medical equipment, including lifestyle products through Invacare Supply Group, Inc.
(ISG), which was sold on January 18, 2013. Invacare manufactured and sold medical recliners for dialysis clinics through Champion
Manufacturing, Inc. (Champion), a subsidiary of Invacare that was sold on August 6, 2013, See Item 7. Management's Discussion
and Analysis of Financial Condition and Results of Operations - Discontinued Operations.
For financial information regarding reportable segments, including revenues from external customers, products, segment
profitability, assets and other information by segments, see Business Segments in the Notes to the Consolidated Financial Statements
of this Annual Report on Form 10-K.
WARRANTY
Generally, the Company’s products are covered by warranties against defects in material and workmanship from the date
of sale to the customer for various periods depending on the product. Certain components carry a lifetime warranty.
COMPETITION
North America and Asia/Pacific
The home medical equipment market is highly competitive and Invacare products face significant competition from other
well-established manufacturers and distributors. The Company believes that its success in increasing market share is dependent
on providing value to the customer based on the quality, performance and price of the Company's products, the range of products
offered, the technical expertise of the sales force, the effectiveness of the Company's distribution system, the strength of the dealer
and distributor network and the availability of prompt and reliable service for its products. Various competitors, from time to time,
have instituted price-cutting programs in an effort to gain market share and may do so again in the future.
Europe
As a result of the differences encountered in the European marketplace, competition generally varies from one country to
another. The Company typically encounters one or two strong competitors in each country, some of whom are becoming regional
leaders in specific product lines.
MARKETING AND DISTRIBUTION
North America
In the United States, Invacare products are marketed primarily to home medical equipment (HME) providers or long-term
care providers who in turn sell or rent these products directly to consumers or residents within the non-acute care settings. The
Company also employs a “pull-through” marketing strategy to medical professionals, including physical and occupational
therapists, who refer their patients to HME providers to obtain specific types of home medical equipment.