Graco 2006 Annual Report Download - page 8

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and transportation optimization
efforts. Project Acceleration will
result in $50 million in annualized
savings starting in 2007, rising to
$150 million annually at the
conclusion of the program in 2009.
As I mentioned earlier, operating as one company
is a focus of the new Newell Rubbermaid. Wherever
it makes sense, we will be leveraging scale and
collaboration across business units to improve
efficiency, reduce costs and create synergies. For
example, we implemented a shared services center
in Europe to handle common financial, human
resources and customer business transactions, and
we are expanding the scope of our existing shared
services center in North America. Later this year we
will implement the first stage of our multi-year rollout
of SAP®
. This enterprise resource platform will enable
standard business processes and create cost savings
across the company.
Finally, we are transforming our culture to one
that is consumer-centric and brand-focused, where
collaboration, teamwork and diversity are core
values, and we judge our success against the standard
of best-in-class. I know culture change is neither
quick nor easy. It requires consistent and persistent
actions over a long period of time.
It won’t change because we want it
to change. It will be part and parcel
of our business model transformation.
I am encouraged by the results of a
recent employee survey which shows
our people are engaged and supportive. Looking
forward, I am confident the growth trend we started
in 2006 can and will continue into 2007 and beyond.
We have a strong stable of brands operating in
markets that are fragmented. Consumption is
expandable, not limited by population growth or the
economy, and our brands are readily extendable to
near neighbor categories. Investment in innovation
and marketing, fueled by continued gross margin
expansion, will allow us to capture the benefits
of these favorable dynamics. We know that Newell
Rubbermaid has what it takes to become best-in-class,
and we will continue to invest in its long-term success.
Thank you for your continued support.
Sincerely,
Mark D. Ketchum
President & Chief Executive Officer
March 28, 2007
I am confident the growth
trend we started in 2006
can and will continue into
2007 and beyond.
06
We are transforming our culture to one that is consumer-
centric and brand-focused, where collaboration, teamwork
and diversity are core values.