Invacare 2006 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2006 Invacare 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 104

  • 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
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

clinical recliners for dialysis and oncology clinics and certain other home medical equipment and accessory
products.
Asia/Pacific
The company’s Asia/Pacific operations consist of Invacare Australia, which imports and distributes the
Invacare range of products and manufactures and distributes the Rollerchair range of custom power wheelchairs and
Pro Med lifts, DecPac ramps and Australian Healthcare Equipment beds, furniture and pressure care products;
Dynamic Controls, a New Zealand manufacturer of electronic operating components used in power wheelchairs and
scooters; Invacare New Zealand, a distributor of a wide range of home medical equipment; and Invacare Asia,
which imports and distributes home medical equipment to the Asian markets.
Europe
The company’s European operations operate as a “common market” company with sales throughout Europe.
The European operations currently sell a line of products providing room for growth as Invacare continues to
broaden its product line offerings to more closely resemble those of its North American operations.
Most wheelchair products sold in Europe are designed locally to meet specific market requirements. The
company manufactures and/or assembles both manual and power wheelchair products at the following European
facilities: Invacare UK Ltd. in the United Kingdom, Invacare Poirier S.A.S. in France, Invacare (Deutschland)
GmbH in Germany, and Ulrich Alber Gmbh in Germany. Manual wheelchair products are also manufactured and/or
assembled at Invacare Portugal, Invacare AG in Switzerland (the Kuschall Range), and Invacare Rea AB in Sweden,
beds and patient lifts at EC-Hong A/S in Denmark and personal care products at Aquatec GmbH in Germany and
Dolomite AB in Sweden. A range of patient lifts is also assembled at Invacare UK Ltd. in the United Kingdom while
oxygen products are imported from Invacare U.S. operations.
For information relating to net sales by product group, see Business Segments in the Notes to the Consolidated
Financial Statements included in this report.
WARRANTY
Generally, the company’s products are covered from the date of sale to the customer by warranties against
defects in material and workmanship for various periods depending on the product. Certain components carry a
lifetime warranty.
COMPETITION
North America and Asia/Pacific
The home medical equipment market is highly competitive and Invacare products face significant competition
from other well-established manufacturers. The company believes that its success in increasing market share is
dependent on providing value to the customer based on the quality, performance and price of the company products,
the range of products offered, the technical expertise of the sales force, the effectiveness of the company distribution
system, the strength of the dealer and distributor network and the availability of prompt and reliable service for its
products. Various manufacturers, from time to time, have instituted price-cutting programs in an effort to gain
market share and may do so again in the future.
Europe
As a result of the differences encountered in the European marketplace, competition generally varies from one
country to another. The company typically encounters one or two strong competitors in each country, some of them
becoming regional leaders in specific product lines.
I-7