Rayovac 2007 Annual Report Download - page 4

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“ Spectrum’s portfolio of brands is better aligned with its customer
base, competing from a stronger position and operating in a
more productive way than at any time in recent history.”
Business Structure
Goals Achieved
As many of you know, Spectrum diversifi ed
signifi cantly in 2005 by acquiring United
Industries and Tetra, which added a pet
supply and a home and garden business
to our portfolio. These acquisitions repre-
sented the achievement of a key strategic
milestone, but one that brought with it a
number of challenges. Since then, a major
goal has been to develop an organizational
structure that capitalizes on the unique
operating attributes of each business in
the most effi cient manner possible. After
some missteps during 2006, this goal was
realized in 2007 with the completion of
a reorganization plan that established
three product-focused, free-standing
business segments: Global Batteries &
Personal Care, Global Pet Supplies and
Home & Garden.
As part of this reorganization, we
undertook a series of initiatives
that streamlined management and
eliminated more than $50 million
in overhead costs. Executive changes
were made, as appropriate, to ensure
that effective leadership was in place in
key positions. Today, with eleven years
of personal perspective from within
the Company, I can assure you that
Spectrum’s portfolio of brands is better
aligned with its customer base, competing
from a stronger position and operating
in a more productive way than at any time
in recent history.
Restructuring Produces
Positive Results
The effectiveness of our initiatives became
truly apparent in the second half of fi scal
2007. After a diffi cult fi rst six months,
our performance trajectory turned positive
mid-year. In the fourth quarter, we
recorded top-line growth in all of our
businesses across all geographies, with the
Kent J. Hussey
Chief Executive Offi cer
2 SPECTRUM BRANDS | 2007 ANNUAL REPORT