Rayovac 2009 Annual Report Download - page 50

Table of Contents
Index to Financial Statements
Consolidated net sales by product line for Fiscal 2009 and 2008 are as follows (in millions):
Fiscal Year
2009 2008
Product line net sales
Consumer batteries $ 819 $ 916
Pet supplies 574 599
Home and garden control products 322 334
Electric shaving and grooming products 225 247
Electric personal care products 211 231
Portable lighting products 80 100
Total net sales to external customers $2,231 $2,427
Global consumer battery sales during Fiscal 2009 decreased $97 million, or 11%, compared to Fiscal 2008, primarily driven by unfavorable foreign
exchange impacts of $70 million coupled with decreased consumer battery sales of $50 million and $15 million in Latin America and Europe, respectively.
These declines were partially offset by increased consumer battery sales, mainly alkaline batteries, in North America of $38 million. The alkaline battery
sales increase in North America is mainly due to higher volume at a major customer coupled with new distribution. The decreased consumer battery sales in
Latin America continues to be a result of a slowdown in economic conditions in all countries and inventory de−stocking at retailers mainly in Brazil. Zinc
carbon batteries decreased $35 million while alkaline battery sales are down $15 million in Latin America. The decreased consumer battery sales within
Europe are primarily attributable to the decline in alkaline battery sales due to a slowdown in economic conditions and our continued efforts to exit
unprofitable or marginally profitable private label battery sales.
Pet product sales during Fiscal 2009 decreased $25 million, or 4%, compared to Fiscal 2008. The decrease of $25 million is primarily attributable to
decreased aquatics sales of $27 million coupled with unfavorable foreign exchange impacts of $11 million. These decreases were partially offset by
increases of $13 million within specialty pet products. The decrease in aquatics sales of $27 million during Fiscal 2009 was attributable to declines in the
U.S., Europe and Pacific Rim of $14 million, $10 million and $3 million, respectively. The declines in the U.S. were a result of decreased sales of large
equipment, such as aquariums, driven by softness in this product category due to the macroeconomic slowdown as we maintained our market share in the
category. The declines in Europe were due to inventory de−stocking at retailers and weak filtration product sales, both a result of the slowdown in economic
conditions. The declines the Pacific Rim were also a result of the slowdown in economic conditions. The increase of $13 million in specialty pet products is
a result of increased sales of our Dingo brand dog treats coupled with price increases on select products, primarily in the U.S.
Sales of home and garden control products during Fiscal 2009 versus Fiscal 2008 decreased $12 million, or 4%, primarily due to our retail customers
managing their inventory levels to unprecedented low levels, combined with such retailers ending their outdoor lawn and garden control season six weeks
early as compared to prior year seasons and our decision to exit certain unprofitable or marginally profitable products. This decrease in sales within lawn
and garden control products was partially offset by increased sales of household insect control products.
Electric shaving and grooming product sales during Fiscal 2009 decreased $22 million, or 9%, compared to Fiscal 2008 primarily due to unfavorable
foreign exchange translation of $19 million. The decline of $3 million, excluding unfavorable foreign exchange, was due to a $7 million decrease of sales
within North America, which was partially offset by slight increases within Europe and Latin America of $3 million and $1 million, respectively. The
decreased sales of electric shaving and grooming products within North America were a result of delayed inventory stocking at certain of our major
customers for the 2009 holiday season which in turn has resulted in a delay of our product shipments that historically would have been recorded during the
fourth quarter
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