Rayovac 2006 Annual Report Download - page 7

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Today, Spectrum Brand’s business is a complex one with many moving parts.
Nevertheless, our objectives for fi scal year 2007 are very clear. Our top prior-
ity is an asset divestiture and corresponding improvement in the balance sheet.
Beyond that, we are focused on:
• Stabilizing and renewing growth in our European battery business, capital-
izing on the recent progress in our North American battery business, and
maintaining the marketing momentum in our shaving and grooming, per-
sonal care and pet supply businesses. We are committed to increased levels
of investment in marketing and new product development during 2007 in
order to grow market share and strengthen our brands.
• Managing the cost side of our business, where we anticipate price increases in
many raw materials, including zinc, copper and nickel – all critical components
in the manufacture of batteries. Selective price increases, entering into hedging
contracts for certain key commodities, and an ongoing commitment to aggres-
sive cost-saving initiatives will help to offset anticipated cost headwinds.
• Continuing to align our cost structure with our product portfolio. A major
divestiture presents the opportunity to look for ways to restructure over-
head costs in line with our new revenue base. Our objective, as always,
will be to minimize expenses without compromising product quality or
customer service.
We worked hard in 2006, although the short-term results have been less than
satisfactory. We will work even harder in 2007 and are optimistic that we will
be able to show demonstrative improvement because – as the facts remind us
– we have much working in our favor. The opportunities that have driven our
growth and diversifi cation over the past several years remain promising. The
brands and products in our portfolio remain strong and well positioned. The
global resources that we bring to the marketplace remain formidable competi-
tive advantages. Spectrum Brands can, and will, do better.
We are committed to increased levels of
investment in marketing and new product
development during 2007 in order to grow
market share and strengthen our brands.
The opportunities that have driven our
growth and diversifi cation over the past
several years remain promising. The
brands and products in our portfolio
remain strong and well positioned.
The global resources that we bring to
the marketplace remain formidable
competitive advantages.
David A. Jones
Chairman and Chief Executive Offi cer
Kent J. Hussey
Vice Chairman
SPECTRUM BRANDS | 2006 ANNUAL REPORT 5