Rayovac 2010 Annual Report Download - page 72

Highlights of consolidated operating results
During Fiscal 2009 and Fiscal 2008, we have presented the growing products portion of the Home and
Garden Business as discontinued operations. During Fiscal 2008 we have presented the Canadian division of the
Home and Garden Business as discontinued operations. Our board of directors of Old Spectrum committed to the
shutdown of the growing products portion of the Home and Garden Business in November 2008 and the
shutdown was completed during the second quarter of our Fiscal 2009. The Canadian division of the Home and
Garden Business was sold on November 1, 2007. See Note 9, Discontinued Operations of Notes to Consolidated
Financial Statements, included in this Annual Report on Form 10-K for additional information regarding the
shutdown of the growing products portion of the Home and Garden Business and the sale of the Canadian
division of the Home and Garden Business. As a result, and unless specifically stated, all discussions regarding
Fiscal 2009 and Fiscal 2008 only reflect results from our continuing operations.
Net Sales. Net sales for Fiscal 2009 decreased to $2,231 million from $2,427 million in Fiscal 2008, an
8.1% decrease. The following table details the principal components of the change in net sales from Fiscal 2008
to Fiscal 2009 (in millions):
Net Sales
Fiscal 2008 Net Sales ................................................ $2,427
Increase in electric personal care product sales ........................ 4
Decrease in consumer battery sales ................................. (27)
Decrease in pet supplies sales ...................................... (14)
Decrease in lighting product sales .................................. (14)
Decrease in home and garden product sales ........................... (13)
Decrease in electric shaving and grooming product sales ................ (3)
Foreign currency impact, net ...................................... (129)
Fiscal 2009 Net Sales ................................................ $2,231
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.
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