Graco 2010 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2010 Graco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

Newell Rubbermaid Inc. 2010 Annual Report
20 NEWELL RUBBERMAID 2010 Annual Report
>
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis provides information which management believes is relevant to an assessment and
understanding of the Company’s consolidated results of operations and financial condition. The discussion should be read in
conjunction with the accompanying Consolidated Financial Statements and Notes thereto.
BUSINESS OVERVIEW
Newell Rubbermaid is a global marketer of consumer and commercial products that touch the lives of people where they work,
live and play. The Company’s products are marketed under a strong portfolio of brands, including Rubbermaid®, Graco®, Aprica®,
Levolor®, Calphalon®, Goody®, Sharpie®, Paper Mate®, Dymo®, Parker®, Waterman®, Irwin®, Lenox® and Technical Concepts™.
The Company’s multi-product offering consists of well-known name-brand consumer and commercial products in three business
segments: Home & Family; Office Products; and Tools, Hardware & Commercial Products.
Business Strategy
Newell Rubbermaid’s vision is to become a global company of Brands That Matter™ and great people, known for best-in-class results.
The Company is committed to building consumer-meaningful brands through understanding the needs of consumers and using
those insights to create innovative, highly differentiated product solutions that offer performance and value. The Company’s
strategy is to leverage the portfolio for faster growth, build Brands That Matter™ to drive demand, and fuel growth through
margin expansion and scale synergies.
• Leveraging the portfolio includes accelerating global expansion, targeting investment in higher growth businesses and
categories, and acquiring businesses that facilitate geographic and category expansion, thus enhancing the potential for
growth and improved profitability.
• Building Brands That Matter™ to drive demand involves continued focus on consumer-driven innovation, developing best-
in-class marketing and branding capabilities across the organization, and investing in strategic brand-building activities,
including investments in research and development to better understand target consumers and their needs.
• Fueling growth through margin expansion and scale synergies entails continued focus on achieving best cost and
improving productivity through the adoption of best-in-class practices, including leveraging scale, optimizing the supply
chain to improve capacity utilization and to deliver productivity savings, reducing costs in nonmarket-facing activities,
designing products to optimize input costs and utilizing strategic sourcing partners when it is cost effective. Achieving
best cost allows the Company to improve its competitive position, generate funds for increased investment in strategic
brand-building initiatives and preserve cash and liquidity.
The Company’s core organizing concept is the global business unit (“GBU”). The Company is organized into 13 GBUs, and each
GBU supports one or more of the Company’s key brands worldwide, with a focus on developing and marketing differentiated
products designed to meet consumers’ needs. The GBU structure positions the business units to leverage research and development,
branding, marketing and innovation on a global basis and facilitates the Company’s objective of optimizing working capital and
shared resources. The Company’s 13 GBUs are aggregated into three operating segments, which are as follows:
Segment GBU Key Brands Description of Primary Products
Home & Family Rubbermaid Consumer Rubbermaid® Indoor/outdoor organization, food storage, and home storage products
Baby & Parenting Graco®, Aprica® Infant and juvenile products such as car seats, strollers, highchairs,
and playards
Décor Levolor®, Kirsch®, Drapery hardware, window treatments and cabinet hardware
Amerock®
Culinary Lifestyle Calphalon® Gourmet cookware, bakeware, cutlery and small kitchen electrics
Beauty & Style Goody® Hair care accessories
Office Products Markers, Highlighters, Sharpie®, Expo® Writing instruments, including markers and highlighters,
Art & Office Organization and art products
Organization
Technology Dymo®, Mimio® Office technology solutions such as label makers and printers,
interactive teaching solutions and on-line postage
Everyday Writing Paper Mate® Writing instruments, including pens and pencils
Fine Writing & Parker®, Fine writing instruments and leather goods
Luxury Accessories Waterman®
Tools, Hardware Industrial Products Lenox® Industrial bandsaw blades, power tool accessories and cutting tools
& Commercial & Services for pipes and HVAC systems
Products Rubbermaid Rubbermaid® Cleaning and refuse products, hygiene systems, material handling
Commercial Products Commercial Products, solutions and medical and computer carts and wall mounted work stations
Technical Concepts™
Construction Tools Irwin® Hand tools and power tool accessories
& Accessories
Hardware Shur-line®, Bulldog®, Manual paint applicators, window hardware, convenience hardware
BernzOmatic® and propane torches