Today, our products are sold to the world’s largest and most sophisticated retailers, meaning speed and order accuracy have never been more critical. Our commitment to customer service and supply chain excellence is manifested in our investment in state-of-the-art systems and processes, which have made us one of the world’s best suppliers of seasonal products.

In 2006, our order fill rate improved to a record 99.2 percent. This critical metric has been rising even as we drive costs out of our supply chain and improve inventory turns. In fact, our inventory turns of finished goods last year were 60 percent better than in 2001. We expect even better performance in 2007.

Once products are in the store, our industry-leading sales force takes over. By building effective merchandising displays and working directly with consumers, this team is also responsible for helping to drive sales through the cash register.

But getting products on and off the retail shelf is just part of where we excel. We also have a long history as the industry leader in manufacturing.

ScottsMiracle-Gro became the first manufacturer of controlled-release fertilizer for consumer use in 1956. We introduced major improvements in the decades that followed until our industry-leading introduction of new patented technology in 1992 that transformed our manufacturing efforts while improving product performance and reducing manufacturing costs.

Today, ScottsMiracle-Gro believes it is the lowest cost producer of lawn fertilizer in the marketplace. That fact, coupled with our commitment to improving our customer service at all levels, provides us with a competitive advantage that will remain critical to our ongoing success.