Whirlpool 2002 Annual Report Download - page 12

> David L. Swift Executive Vice President, North American Region
In the United States, record-low interest rates and the
resulting consumer spending powered the economy – as well
as the appliance industry – throughout the year. Growth in
the U.S. major home appliance industry outpaced the record
level set in 2001 by nearly 7 percent.
Whirlpool’s North American operations led the industry with
a remarkable performance in 2002, bettering the previous
year’s all-time records for sales and operating profit. For the
year, total revenue of $7.3 billion increased 11 percent. Much
of the improvement was based on the success of new product
introductions and cost savings from productivity improvements
and restructuring.
Another significant achievement in 2002 was Whirlpool’s
successful integration of Mexico-based Vitromatic S.A. de
C.V. – now called Whirlpool Mexico – which the company
acquired last year. The acquisition has given Whirlpool
greater access to the fast-growing market in Mexico, and
enhanced our export and supply positions throughout the
hemisphere. During the fourth quarter of the year, Whirlpool
Mexico delivered brand-share growth and record sales.
Whirlpool Canada also delivered an exceptional year of strong
revenue and operating performance.
Particularly satisfying in 2002 was the continued acceptance
by consumers of our leading brands, especially Whirlpool and
KitchenAid, both of which recorded strong revenue growth.
Through our strong consumer brands, Whirlpool North
America introduced a number of innovative products and
services to our customers in 2002. The introductions, as well
as other new developments in non-product areas of customer
relationships, helped drive a record Whirlpool brand share.
KitchenAid brand also made strong strides in further
positioning itself as one of North America’s leading top-of-
the-line brands for both major and portable appliances.
The innovations are part of Whirlpool’s strategy of building
customer loyalty by applying a deeper, fundamental
understanding of our customers’ needs, desires and
lifestyles. A prime example is the Whirlpool Duet clothes
washer and dryer pair (HE3t under Sears, Roebuck and Co.’s
Kenmore Elite brand), which was launched nationwide
in 2002. The Duet washer blends European front-load
technology with a striking design that appeals to U.S.
consumers interested in large-load wash capacity, excellent
energy efficiency and cost savings, and the best overall
fabric-care performance.
Other new and exciting innovations for 2002 included the
Whirlpool Polara range, the world’s first refrigerated range,
and the KitchenAid briva dishwasher, a unique in-sink
dishwasher. The Polara range received wide attention for
offering a genuine solution to busy parents who want to enjoy
sit-down dining with their families, but have little time in
their schedules to prepare the meals. The briva in-sink
dishwasher complements the culinary enthusiasts who need
quick and easy cleaning solutions without having to run their
much larger conventional dishwashers.
Dozens of other new-to-market products and solutions were
introduced during the year. Among the highlights were
Whirlpool Gladiator GarageWorks, a total organizing and
appliance system for the garage, and Whirlpool Family
Studio, a suite of cabinetry and fabric care innovations that
transform the traditional laundry space into a center for
family gathering and activity.
Whirlpool also introduced the new Satina stainless-look
refrigerator, which delivers the aesthetic appeal of stainless
steel without its drawbacks. The Satina finish is easy to
clean, masks irksome fingerprints and holds magnets that
keep messages in place.
2002 Annual Report 21
KEY STATISTICS
>No. 1 position in the industry
>$
7.3 billion in 2002 sales
>$830 million in 2002 operating profit
>Approximately 32,000 employees
BRANDS
United States KitchenAid, Whirlpool, Roper by
Whirlpool Corporation, Estate, Gladiator
Canada Inglis,Whirlpool, KitchenAid
Mexico Whirlpool, Acros, Supermatic, Crolls
PRINCIPAL PRODUCTS
Air Purifiers, Automatic Dryers, Automatic Washers,
Built-in Ovens, Countertop Appliances, Dehumidifiers,
Dishwashers, Freezers, Hot Water Heaters, Ice Makers,
Microwave Ovens, Ranges, Refrigerators, Room Air
Conditioners, Trash Compactors
HEADQUARTERS
Benton Harbor, MI
MANUFACTURING LOCATIONS
United States LaVergne, TN; Findlay, OH; Marion, OH;
Greenville, OH; Clyde, OH; Benton Harbor, MI;
Evansville, IN; Fort Smith, AR; Tulsa, OK; Oxford, MS
Canada Montmagny, QU
Mexico Monterrey, Reynosa, Celaya, Puebla
NEW PRODUCTS INTRODUCED IN 2002
>Whirlpool – Polara refrigerated range; Family Studio
concept of appliances and cabinetry; Duet fabric-care
system; Satina refrigerator; Personal Valet clothes
vitalizing system; microwave hood combination
with AccuWave technology
>KitchenAid – briva in-sink dishwasher; stand mixers
in tangerine, lavender and other colors; a blade coffee
grinder; kitchen textiles; a new line of toasters;
a self-designed dishwasher; a 36-inch built-in oven;
counter-depth, bottom-mount refrigerator
>Gladiator – GarageWorks appliances and organizing
components for the garage
>KitchenAid stand mixer
An American culinary icon, the
KitchenAid stand mixer, year in and
year out, retains its position as one
of the most recognizable kitchen
appliances – and does so with
colorful pizzazz, such as this 2002
tangerine favorite.
>Whirlpool Satina look
Giving the stainless steel look
without the hassles of stainless
steel, the Whirlpool Satina finish
refrigerator is a breeze to clean,
hides fingerprints and keeps the
family message board alive by
attracting magnets.
North America Operating Review
20
North America Operating Review
> United States, Canada and Mexico