Whirlpool 2002 Annual Report Download - page 14

> Michael A. Todman Executive Vice President and President, Whirlpool Europe
2002 Annual Report 25
Whirlpool Europe’s operations continued to make solid
improvement in challenging economic and market environ-
ments throughout the region. Revenue of $2.2 billion was up
7 percent from 2001. Operating profit improved significantly.
The increasing consumer demand for the Whirlpool brand –
the No. 1 appliance brand throughout the region – and cost
savings from restructuring changes and productivity
improvements contributed to the improvement. Better
working capital and asset utilization by the operations led
to strong, positive cash flow for the full year.
Over the last 12 months, Whirlpool Europe has been
responding to economic and market conditions within the
region by reshaping both its business and operating
footprint. The effort has resulted in a more competitive
operating position, additional resources for investments in
innovation, and continued growth of our leading brands and
market positions.
With the 2002 acquisition of Polar S.A., Whirlpool Europe
gained a strategic, low-cost manufacturing position in
Poland that will serve the entire region. The company expects
its manufacturing strategy, combined with annual savings
from the restructuring initiative, to result in improved
contributions and productivity on an ongoing basis.
Also in 2002, the operation continued to advance its brand
strategy. Whirlpool brand is the No. 1 brand in Europe,
representing 70 percent of total revenues. Whirlpool now has
the leading position in France, Ireland, Portugal, the Benelux
region and Central Europe.
Among the new product innovations in 2002 were versions
of the popular Whirlpool Duet washer that is sold in the
United States. Launched under the Whirlpool and Bauknecht
brands as Dreamspace and big, respectively, the European
versions of the Duet washer provide the same benefits and
high level of performance with designs and features that
appeal to European consumers.
Another innovation is the European version of the Whirlpool
Conquest side-by-side refrigerator. The Conquest refrigerator
was specially designed and manufactured to meet the needs
of European consumers, including energy savings, size and
design aesthetics.
Whirlpool and Bauknecht brands introduced a new range of
built-in ovens, which combine elegance and advanced
technology with special design features that simplify their
use and cleaning. Whirlpool brand also introduced the
Max! Advance microwave oven, which was launched in the
second half of the year shortly after capturing France’s
prestigious Janus award for outstanding design.
At Hometech 2002, the major international home appliance
fair, Whirlpool Europe showcased new products and
presented Whirlpool-sponsored research analyzing emerging
domestic trends in Europe and consumer interaction with
home appliance technology.
Whirlpool Europe’s design team continued to win critical
design acclaim for its futuristic appliance concept work.
Coming off its earlier “Macrowave: New Frontiers for the
Modern Microwave,” the company unveiled “Project F,”
visionary concepts for future fabric-care products. The
company uses these and other concept projects to gain
consumer insights for ongoing innovation and product
development efforts.
KEY STATISTICS
>No.3 position in Western and Central Europe
>$2.2 billion in 2002 sales
>$81 million in 2002 operating profit
>Approximately 14,000 employees
BRANDS
Whirlpool, Bauknecht, Ignis, Polar, Laden in France,
KIC in South Africa
PRINCIPAL PRODUCTS
Automatic Dryers, Automatic Washers, Built-in Hobs,
Built-in Ovens, Compressors, Dishwashers,
Free-standing Cookers, Freezers, Microwave Ovens,
Ranges, Refrigerators
OPERATIONS CENTER
Comerio, Italy
MANUFACTURING LOCATIONS
France Amiens
Germany Neunkirchen, Schorndorf
Italy Naples, Siena, Cassinetta, Trento
Poland Wroclaw
Slovakia Poprad
South Africa Isithebe
Sweden Norrköping
NEW PRODUCTS INTRODUCED IN 2002
>Whirlpool – Max! Advance microwave oven,
Axent microwave oven, a new line of built-in ovens,
Dreamspace washing machine, Conquest
side-by-side refrigerator
>Bauknecht – big washing machine, free-standing
LCD washing machine, Glide telescopic,
decorative hood
>Whirlpool and Bauknecht
built-in ovens
The newest line of built-in ovens
from Whirlpool and Bauknecht takes
elegance and practicality to the
next level. The ovens use select
materials, such as stainless steel,
formed into a variety of stylish
designs that are easy to use and clean.
>Max! Advance microwave oven
A prime example of the innovations
that can be gleaned from consumer
insight, the award-winning Whirlpool
Max! Advance microwave oven
incorporates a rounded, space-
saving shape, along with an on-door
control panel and rear ventilation
system.
Europe Operating Review
24
Europe Operating Review
> Europe, Middle East and Africa