Harris Teeter 2007 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2007 Harris Teeter 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 72

  • 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

3
the domestic and international order backlog was filled within five weeks of the fiscal 2007 year end. As of
September 30, 2007, A&E had approximately 7,300 domestic and 7,300 international active customer accounts.
In fiscal 2007, no single customer accounted for more than 4% of A&E’s total net sales, and the ten largest
customers accounted for approximately 15% of A&E’s total net sales.
A&E purchases cotton from farmers and domestic cotton merchants. There is presently a sufficient supply
of cotton worldwide and in the domestic market. Synthetic fibers are bought from the principal American
synthetic fiber producers for domestic operations and from the principal Asian and American synthetic fiber
producers for operations in China. There is currently an adequate supply of synthetic fiber for A&E’s global
operations.
A&E has two patents issued. There are no material licenses, franchises or concessions held by A&E.
Research and development expenditures were $487,000, $445,000, and $438,000 in fiscal 2007, 2006 and 2005,
respectively, none of which were sponsored by customers. Two full-time employees are currently engaged in
this activity.
The industrial sewing thread industry is highly competitive. A&E is one of the world’s largest manufacturers
of industrial sewing threads and also manufactures and distributes consumer sewing thread, embroidery thread
and technical textiles.
A&E competes globally with Coats plc as well as regional producers and merchants in various markets
served by A&E. The key competitive factors are quality, service and price. A&E competes with a number of
large, well-established companies, including Coats plc, in the industrial thread, embroidery thread and technical
textile markets.
A&E and its consolidated subsidiaries employed approximately 3,700 individuals worldwide as of
September 30, 2007. None of the domestic employees and an insignificant number of employees of foreign
operations are represented by a union. A&E considers its employee relations to be good.
Available Information
The Company’s Internet address is www.ruddickcorp.com. The Company makes available, free of charge,
on or through its website, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on
Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, and beneficial ownership reports on Forms 3, 4, and 5 as soon as reasonably practicable
after electronically filing such material with, or furnishing it to, the Securities and Exchange Commission.
Item 1A. Risk Factors
This report contains certain statements that are forward-looking within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results
may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as
“expects,” “anticipates,” “believes,” “estimates” and other similar expressions or future or conditional verbs
such as “will,” “should,” “would” and “could” are intended to identify such forward-looking statements. Readers
of this report should not rely solely on the forward-looking statements and should consider all uncertainties
and risks throughout this report. The statements are representative only as of the date they are made, and we
undertake no obligation to update any forward-looking statement.
All forward-looking statements, by their nature, are subject to risks and uncertainties. Our actual future
results may differ materially from those set forth in our forward-looking statements. We face risks that are
inherent in the businesses and the market places in which Harris Teeter and A&E operate. The following
discussion sets forth certain risks and uncertainties that we believe could cause actual future results to differ
materially from expected results. In addition to the factors discussed below, other factors that might cause our
future financial performance to vary from that described in our forward-looking statements include: (i) changes