Graco 2006 Annual Report Download - page 5

highlights While the collective sales growth in these businesses was modest in 2006,
our established positions in the commercial and retail markets, backed by investments in job
site demonstrations, NASCAR®events and other face-to-face initiatives, drove strong growth in
our Irwin and Lenox branded product lines. We focused on end user conversion to our products
by showing them firsthand how our Lenox®Diamond saw blades cut cast iron smoother and faster;
how the IRWIN®Speedbor®MaxTM bits make drilling larger holes through any surface a snap;
and how Quick-Grip®clamping solutions deliver a powerful hold with the easy pull of a trigger.
We also made great strides in collaboration and sharing of expertise among our tools business
through a common physical location and emphasis on sharing best practices. Our focus on
product innovation, coupled with targeted marketing and the right organizational structure
will drive greater profitability in years to come.
highlights These businesses collectively drove 4 percent sales growth in 2006, led by particularly
strong growth in Rubbermaid Commercial and Rubbermaid Home. We focused our efforts and
investments on gaining a deep understanding of what the consumer wants and delivering products
that work. We were recognized frequently during the year for our work. A broad survey of facilities
managers gave top honors to Rubbermaid Commercial, and a leading consumer products review
publication ranked Rubbermaid Home’s Configurations®closet system #1. We know these accolades
are possible only when we’ve first delivered successful innovation to the consumer. Our window
fashions business regenerated top line growth by leveraging its strong brand recognition and market
presence with its fashion forward window covering designs and drapery hardware offering.
highlights 2006 was an important year for Office Products – we grew internal sales almost
6 percent after three consecutive years of no growth. Our investments in new products paid off
handsomely with several successful launches, including the Paper Mate®Profile®pen, which offers
the smooth writing experience of a gel pen without the smearing, and the exceptionally comfortable
Paper Mate® Pro-FitTM pen. These and other products and brands received an infusion of strategic
investment in 2006, including highly creative print and television advertising on a global basis,
as well as continued support of the Sharpie®500 and Sharpie®MINI 300 NASCAR®races. In addition,
we expanded our product offering into labeling with the integration of the DYMO acquisition. We
welcomed the DYMO team into the Newell Rubbermaid family and delivered better than forecasted
results through a shared commitment to collaboration and by leveraging our complementary
managerial, marketing and operating capabilities. We continue to be excited about the future for
DYMO and the ability to expand our leadership position into additional near-neighbor categories.
highlights These businesses generated almost 11 percent sales growth through a strong product
lineup backed by a significant increase in advertising and promotion support. Calphalon continued
to drive its established position in the bridal registry market, as well as reach out to consumers
through targeted television advertising on The Food Network®and on such programs as the Top Chef
competition on the Bravo Network.
TM Graco continues to serve as a leader in infant safety, and
introduced unique products such as the SafeSeatTM and TurboBooster®car seat and travel systems.
Goody expanded their Colour CollectionTM and Goody StayPutTM elastic hair bands, while also launching
a salon-quality line under the i mTM brand. Goody’s continued sponsorship of numerous girls’ and
women’s athletic events, extensive product sampling and sharp eye for the latest fashion trends
supported its strong sales growth.