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Chairman’s Letter
Whirlpool Corporation 2001 Annual Report 11
Last year, our company celebrated its 90th anniversary by
introducing a record number of innovative, branded
products and solutions to our customers worldwide, which
enabled us to deliver a record year of operating performance.
2001 IN REVIEW
Entering the year, we faced difficult economic circum-
stances and weakening markets around the world. In
December 2000, we announced a $300 million to $350
million restructuring effort to improve the competitive
position of our global operations, given the new realities
within these markets. Despite an outlook for challenging
conditions early in 2001, we forecasted economic turn-
arounds and improved industry appliance shipments for
North America and Europe in the second half.
Looking back, 2001 turned out to be far different than the
year we expected for Whirlpool, the nation and the world.
In Latin America, Argentina’s destabilizing currency crisis
and Brazil’s energy shortages severely hampered the
region’s economies and dampened growth. Expectations
for a second-half improvement in Europe’s economic fortunes
faded with recession in Germany. And in North America,
a mild economic recession arrived, almost unnoticed, amid
the collapse of the technology markets. Earlier projections
of sequential improvements in U.S. gross domestic product
(GDP) failed to materialize.
The tragic events of September 11 in the United States
left the country reeling and moved the economy deeper
into recession. Subsequent military action in South Asia
and rising tensions in the region affected the economy of
India — one of Whirlpool’s key growth markets.
From an industry perspective, we saw a rash of competitor
consolidations. Maytag acquired Amana Appliances in
August. In December, Merloni Elettrodomestici of Italy
acquired from Merconi plc its 50-percent stake in General
Domestic Appliances — a major supplier of appliances in the
United Kingdom. And in January 2002, Elco Holdings Inc.
purchased the assets of Brandt, a major home appliance
manufacturer in France.
To Our Shareholders