Sunbeam 2007 Annual Report Download - page 4

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In this Annual Report we briefly touch on the goals of each of our business segments and
their fit within our overall strategy and operating philosophy. Through the hard work and
dedication of our 25,000 employees, we intend to continue to produce exceptional financial
results as a result of our focus on improving our operations, driving organic growth, and
investing in new product innovations and our brands.
Jarden’s 2007 revenue of $4.7 billion, an increase of 21% over 2006, was fueled by two signifi-
cant strategic acquisitions that propelled Jarden Outdoor Solutions into becoming our largest
operating segment. On an annualized basis, this segment has revenue of approximately $2.5
billion, out of the company’s total annualized revenue of approximately $5.5 billion.
Furthermore, 2007 segment earnings of $566 million, a 28% increase over 2006, underscored
our success at the operating level. With over $300 million of cash flow from operations, we
continued to demonstrate the strong cash generative power of our diverse brand portfolio. I am
especially proud of these results as we spent more on marketing and new product research and
development than at any previous time in the company’s history.
Jarden has always focused on markets in which our brands hold leadership positions, with many
of the categories we serve being relatively small niche markets. The acquisitions of Pure Fishing
and K2 into Jarden Outdoor Solutions created what we believe is the largest sporting goods
equipment company in the world. We now have established leadership positions not only in
camping equipment but in recreational fishing, baseball, skiing, snowboarding and many other
outdoor activities.
While our integration work at Jarden Outdoor Solutions is just beginning, the success of our
integration work at Jarden Consumer Solutions over the last three years provides a clear
illustration of what can be achieved. Since 2004 JCS has grown its segment earnings by a
compound annual growth rate of 44%, while taking segment earnings from 9.3% of revenue
to an impressive 14.5% of revenue. Credit for this success should go to the management team
at JCS, many of whom have worked together for over 10 years, as well as their disciplined and
focused approach to driving margin expansion through new product development and brand
support. While this is a common theme across all Jarden’s businesses, the execution of this
strategy at JCS has been exceptional.
We believe in setting specific medium-term goals, rather than being fixated on short-term ups
and downs. I stated at the beginning of 2005 that within three to five years we would double
our continuing earnings per share. In 2004 we produced $1.49 of EPS on a revenue base of $839
million. In 2007 we were close to achieving this goal in only our third year on a revenue base of
$4.7 billion. We expect to exceed the goal of $3.00 continuing EPS in 2008 and have
“With over $300 million of cash flow from operations,
we continued to demonstrate the strong cash generative
power of our diverse brand portfolio.”