Sunbeam 2001 Annual Report Download - page 4

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Since the management changes at your company
in September 2001, we have pushed hard to return
Alltrista to the fundamental tenets that historically
gave it solid and consistent financial performance.
The “DNA” of Alltrista has been to excel as a market
leader in multiple niche markets that are relatively
mature, thereby producing attractive margins and
strong cash flow. By far the largest component
of the continuing company has been Consumer
Products, which manufactures branded consumables
used for food preservation. The fundamental shift in
focus and direction that has taken place in your
company during 2001 is the renewed emphasis on
the consumer products business that has consistently
delivered steady returns for shareholders.
In order to achieve this renewed focus, since
September 2001 the company has executed its stated
objectives to produce a clear platform for growth in
2002. First and foremost, the sale
of the thermoformed plastics
businesses of Triangle, TriEnda and
Synergy World ended a misguided
and very costly diversification from
the core strengths of Alltrista. The
sale, which created a loss of $121.1
million, removed a significant distraction and finan-
cial burden on the company. At the same time, the
sale produced a tax loss carry back in excess of
$100.0 million that has enabled Alltrista to recover
at least a portion of its lost capital through tax
savings and refunds.
Simultaneously with the divestiture, we took steps to
improve the efficiency of our headquarter’s structure,
closing our Indianapolis office and moving these
functions to our Rye, New York and Muncie, Indiana
locations. These actions have netted approximately
$3 million in cost savings.
Dear Fellow Shareholders
Many of you will be familiar with the saying,
“Our future is where our past is”. As a history
buff I believe this old adage is equally applicable
to businesses and their progression.
“During 2001, Alltrista repositioned its
growth strategy to focus on consumer products.
This pyramid depicts the long term consumer
products strategy.”
home
canning
consumer products
branded kitchen
consumables
2
Alltrista
food
preservation