Whirlpool 2002 Annual Report Download - page 15

2002 Annual Report 27
> Paulo F. M. Periquito Executive Vice President and President, Latin America
In Latin America, the economic crisis in Argentina and the
political uncertainties in Brazil and other countries within
the region led to a dramatic slowdown in consumer spending.
Given this environment, revenue of $1.3 billion declined 15
percent from 2001, or down 4 percent excluding currency
translations.
Despite the decline, operating profit as a percentage of
sales was only slightly lower than the previous year. During
the year, Whirlpool’s operations quickly responded to
the changing market dynamics by adjusting production
rates and inventory levels. The action – combined with
significant export growth and cost savings from productivity
and restructuring efforts – contributed to the operating
margin performance.
Whirlpool’s Brazil-based compressor business, Embraco,
remained a strong performer for the company. The unit, which
also has manufacturing operations in Italy, Slovakia and China,
continued to advance its technological and global leadership
position. In 2002, exports from the regional operations –
which include compressors and major appliances – reached
a record high, rising more than 50 percent. The company
expects exports from the region will be an increasingly
positive factor in the operation’s ongoing performance.
Throughout the year, Whirlpool Latin America launched a
number of new and innovative products, all of which
addressed consumer needs. For instance, Brastemp brand
reinforced its innovative and trend-setting image through
the introduction of a bottom-freezer configuration for
refrigerators, which received strong customer praise for its
ergonomic design and other features.
Brastemp brand also launched a new line of premium cooking
products, such as cook-tops and clothes washer models,
which broadened the brand’s full-range of product offerings.
Consul brand updated its entire line of products in 2002.
Among the highlights were an array of innovative air
conditioners, including an attractive, space-saving split-
line model; a convenient six-service dishwasher; and the
brand’s first push into the frost-free refrigeration market.
Brastemp and Consul brands also partnered with leading
Brazilian companies in implementing brand image-building
actions through architectural, decorating and cooking
events. Such efforts help maintain the brands’ outstanding
recognition among consumers, particularly Brastemp, which
again placed fourth as Brazil’s most recognized brand.
Consul brand gained significant recognition for its social
responsibility initiative, Woman CONSULate. The effort is
targeted at improving the lives of disadvantaged women.
Since its launch in early 2002, CONSULate has recruited
more than 350 volunteers and assisted over 20,000 women.
Whirlpool’s subsidiary companies in the region – Multibras
and Embraco – were cited by a leading Brazilian business
magazine for being among the top 100 companies in the
country and among the best to work for. Multibras and
Embraco are among only seven of the top 100 named to the
list for six consecutive years.
Retailers and customers widely commend the company for
its outstanding service, especially through its innovative
assistance channels, such as Retailers Service Hotline and
Urgent Customer Hotline. In addition, through an Internet
contact center, customers can arrange for technical-
assistance visits, register suggestions and clarify any
concerns they may have about the company’s products.
KEY STATISTICS
>No. 1 market position in the industry
>$1.27 billion in 2002 sales
>$107 million in 2002 operating profit
>Approximately 17,000 employees
BRANDS
Whirlpool, Brastemp, Consul, Embraco, Eslabón de Lujo
PRINCIPAL PRODUCTS
Refrigerators, Automatic Washers, Compressors,
Dishwashers, Freezers, Microwave Ovens, Ranges,
Room Air Conditioners, Countertop Appliances
HEADQUARTERS
São Paulo, Brazil; Buenos Aires, Argentina;
Santiago, Chile
MANUFACTURING LOCATIONS
Brazil Manaus, Rio Claro, Joinville, São Paulo
International (Embraco) Riva di Chieri, Italy;
Spisska Nova Ves, Slovakia; Beijing, China
NEW PRODUCTS INTRODUCED IN 2002
>Brastemp – Advantech Wash automatic washer;
Hot Water Advantech Wash automatic washer;
Stain Removing Advantech Wash automatic washer;
De Ville Grill ranges; Quality Grill and Quality Top
Clean ranges; Maison Tri Chama and Maison Tri
Chama Inox ranges; Bottom Freezer refrigerator
>Consul – Performer, Ideale, Pratice, and Facility
ranges; 7,500 BTU Timer Classe A, Electronic, Digital
and Split air conditioners; Tabletop Dishwasher;
Hooded Oven
>Consul air conditioner
Among the most economic in
Latin America, Consul air
conditioners also are among the
quietest, with easy-to-install
designs, easy-to-change filters
and a quick-cooling system that
uniformly cools entire rooms.
>Brastemp Quality range
Making cleaning even easier, the
new Brastemp Quality gas range
offers a glassy, scratch-resistant
finish that helps customers with
one of their most disliked
tasks – cleaning the range after
meal preparation.
Latin America Operating Review
Latin America Operating Review
> Brazil, Argentina, Chile, Other markets of the Southern Cone
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