A Sustainable Growth Strategy

Our strategy is simple — to improve margins, invest in our business and increase sales and profits. During the past five years this strategy has led to average annual sales growth of 7%.

   Gross profit margin has risen from 38.0% in 2001 to 41.0% in 2006 with cost-savings programs, acquisitions of high-margin brands and the introduction of higher-margin, more value-added products.

   This margin improvement is the "fuel' behind our growth. We have funded a 60% increase in research and development expense during the past five years and a doubling of advertising since 2001. Our margin increase and our investments are driving sales and profit growth and are evidence that our strategy is working.