Sunbeam 2009 Annual Report Download - page 4

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Dear Fellow Shareholders:
In 2009, Jarden faced the most dramatic macroeconomic downturn in the world economy since I
assumed the Chairman and CEO roles in 2001. We were early in recognizing the challenges ahead
and we were proactive in making some very tough choices based on the best long-term interests of
both shareholders and employees.
It has long been our belief that market leadership in niche markets, supported by strong brand
equity and a focus on operational excellence, is the best model for protecting against downside
risk, while maximizing upside potential in the consumer products space. Jarden’s exceptional
performance in 2009 proved that our diversifi ed business model is extremely resilient and that we
perform like a consumer staples company when times are tough.
Our early, decisive actions were designed to achieve a number of goals beyond controlling
overhead costs in a period of uncertainty. First, we wished to minimize workforce reductions and
retain our employee talent base, while providing job security. We introduced a hiring freeze as early
as June 2008, reduced 401(k) contributions, eliminated salary increases and reduced salaries for
senior managers across the Company. For a company that is dedicated to the belief that our best
assets go home every night, these initiatives were painful but necessary. Second, we prioritized
the continued funding of investments in new product development and marketing during a period
in which our competitors were retreating. Despite economic uncertainty, we actually increased
our investment spending as a percentage of SG&A from 23 percent in 2008 to 25 percent in 2009.
These investments aided our third objective, which was to increase shelf space at key retailers or,
in other words, to grow market share in a down market.
What were the results of these actions taken proactively for 2009? Despite double-digit revenue
declines in many of our core markets, excluding foreign exchange fl uctuations, sales in our three
primary business segments declined only one percent for the year, and actually grew organically
in the fourth quarter.
Message to Our Shareholders
“Jarden’s exceptional performance in 2009 proved
that our diversifi ed business model is extremely
resilient and that we perform like a consumer staples
company when times are tough.”
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