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26
Safety and Graphics Business (18.3% of consolidated sales):
2013 2012 2011
Sales (millions)
$
5,657
$
5,471
$
5,458
Sales change analysis:
Organic local currency
4.2
%
2.4
%
5.1
%
Acquisitions
1.3
0.6
3.3
Translation
(2.1)
(2.8)
3.6
Total sales change
3.4
%
0.2
%
12.0
%
Operating income (millions)
$
1,239
$
1,217
$
1,237
Percent change
1.8
%
(1.6)
%
8.7
%
Percent of sales
21.9
%
22.3
%
22.7
%
The Safety and Graphics segment serves a broad range of markets that increase the safety, security and productivity of
people, facilities and systems. Major product offerings include personal protection products; traffic safety and security
products, including border and civil security solutions; commercial graphics sheeting and systems; architectural surface
and lighting solutions; cleaning and protection products for commercial establishments, and roofing granules for asphalt
shingles.
Year 2013 results:
Sales in Safety and Graphics totaled $5.7 billion, up 3.4 percent in U.S. dollars. Organic local-currency sales increased
4.2 percent, acquisitions added 1.3 percent, and foreign currency translation reduced sales by 2.1 percent. On an organic
local-currency basis, sales growth was led by personal safety, commercial graphics, industrial minerals, and building and
commercial services. Organic local-currency sales declined in traffic safety and security systems. Acquisition growth
related to the September 2012 purchase of net assets that comprised the business of Federal Signal Technologies Group.
Organic local-currency sales increased 9 percent in both Latin America/Canada and Asia Pacific, and 2 percent in the
United States. Organic local-currency sales were flat in EMEA.
Operating income in 2013 totaled $1.2 billion, up 1.8 percent. Operating income margins were 21.9 percent of sales,
compared to 22.3 percent in 2012. This decline in margins related to the Federal Signal Technologies Group acquisition,
which reduced 2013 operating income margins by 0.5 percentage points.
Year 2012 results:
Sales in Safety and Graphics were $5.5 billion, up 0.2 percent in U.S. dollars. Organic local-currency sales increased 2.4
percent, led by architectural markets, personal safety, and commercial graphics, with growth also in building and
commercial services, and roofing granules. Organic local-currency sales declined in traffic safety and security.
Acquisitions sales growth of 0.6 percent related to the September 2012 purchase of the net assets that comprised the
business of Federal Signal Technologies Group from Federal Signal Corp. This business focuses on electronic toll
collection and parking management hardware and software services. Foreign currency translation reduced sales by 2.8
percent.
Geographically, organic local-currency sales increased 16 percent in Latin America/Canada and 1 percent in both the
United States and Asia Pacific. Organic local-currency sales declined 2 percent in EMEA.
Operating income in 2012 totaled $1.2 billion, down 1.6 percent. Operating income margins were 22.3 percent of sales,
compared to 22.7 percent in 2011. The year-on-year decline in operating income dollars and margins was attributable to
softness in traffic safety and security, which has been impacted by lower government spending.