Sunbeam 2014 Annual Report Download - page 23

Download and view the complete annual report

Please find page 23 of the 2014 Sunbeam annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

Jarden Corporation Annual Report 2014 21
Results of Operations — Comparing 2013 to 2012
Net Sales
Operating Earnings
(Loss)
YearsEndedDecember31,
(In millions) 2013 2012 2013 2012
Branded Consumables $ 2,266.6$1,753.1$253.5$209.0
Consumer Solutions 2,040.0 1,940.9 270.0 232.3
Outdoor Solutions 2,724.4 2,692.9 196.1 250.7
Process Solutions 403.6 377.1 40.4 33.6
Corporate —   — (187.1)(148.8)
Intercompany eliminations (78.7)(67.9)—   —
$7,355.9$6,696.1$572.9$576.8
Note: Changes in net sales on a currency-neutral basis that are presented hereafter are provided to enhance visibility of the underlying
operations by excluding the impact of foreign currency translation on period-over-period changes.
Net Sales
Net sales for 2013 increased $660 million, or 9.9%, to $7.4 billion versus the prior year. Excluding the impact of acquisitions
(approximately 7%), net sales on a currency-neutral basis increased approximately 4%, primarily due to increased sell-through in certain
product categories, expanded product offerings and increased demand internationally, primarily in Asia and Latin America, in certain
product categories, partially offset by weakness in certain product categories. Unfavorable foreign currency translation accounted for a
decrease in net sales of approximately 2%.
Net sales in the Branded Consumables segment increased $514 million, or 29.3%. Excluding the impact of acquisitions (approximately
25%), net sales on a currency-neutral basis increased approximately 4%, primarily due to increased sales in the baby care, home
care and leisure and entertainment businesses, largely related to increased sales in certain product categories, including the food
preservation category, primarily due to favorable weather conditions and increased point of sale; certain products in the safety and
security category in part due to increased demand at certain mass market retailers; and the relog category, primarily due to more
favorable weather conditions in 2013 versus the prior year.
Net sales in the Consumer Solutions segment increased $99.1 million, or 5.1%. Excluding the impact of acquisitions (approximately 2%),
net sales on a currency-neutral basis increased approximately 6%. The increase is primarily due to increased demand internationally,
primarily in Latin America, which contributed to an increase in net sales of approximately 6%, primarily due to increased point of sale,
improved product distribution and successful pricing strategies. Net sales domestically increased slightly on a year-over-year basis,
as an increase in sales in certain home environment categories was partially offset by a decline in sales in certain small appliance
categories. Unfavorable foreign currency translation accounted for a decrease of approximately 3% in net sales.
Net sales in the Outdoor Solutions segment increased $31.5 million, or 1.2%. Net sales on a currency-neutral basis increased
approximately 3%, primarily due to increased sales in the camping and outdoor, shing, technical apparel and winter sports businesses,
which provided an increase in net sales of approximately 3%, largely related to new and expanded product offerings, increased point
of sale and distribution for certain products and increase sales in certain international markets, primarily in Asia. Unfavorable foreign
currency translation accounted for a decrease in net sales of approximately 2%.
Net sales in the Process Solutions segment increased 7.0% on a period-over-period basis, primarily due to increased sales within each
of its business units.
Cost of Sales
Cost of sales for 2013 increased $470 million, or 9.8%, to $5.2 billion versus the prior year. The increase was primarily due to the impact
of acquisitions ($240 million), increased sales (approximately $210 million) and the inclusion of a $89.8 million charge recorded in
2013, related to a purchase accounting adjustment, primarily due to the YCC Acquisition, for the elimination of manufacturer’s prot
in inventory, partially offset by foreign currency translation (approximately $80 million). Cost of sales as a percentage of net sales for
2013 and 2012 was 71.3% (70.0% for 2013 excluding the charge for the elimination of manufacturer’s prot in inventory).
Management’s Discussion and Analysis
Jarden Corporation Annual Report 2014