Whirlpool 2003 Annual Report Download - page 20

18
North America Operating Review
David L. Swift
Executive Vice President,
North American Region
2003 Awards and Achievements
■Whirlpool Canada was recognized with the 2003 ENERGY STAR®
"Manufacturer of the Year Award" from Natural Resources Canada for
setting new energy efficiency performance standards for appliances.
■Home Magazine selected the KitchenAid briva in-sink dishwasher as
one of the publication's 2003 Kitchen and Bath Awards for ingenious
performance innovation and artisan-inspired design.
Whirlpool North America operations posted a solid performance in
2003, despite economic uncertainty early in the year and a significant
rise in pension costs compared to 2002. Meeting these challenges with
an array of new product introductions and productivity measures, the
region set new records for sales and productivity, while further
expanding consumer demand for the company’s key North American
brands, Whirlpool and KitchenAid.
The industry as a whole benefited last year from low interest rates in
the United States, which continued to spur new-housing starts, sales
of existing homes and consumer spending in general. Whirlpool North
America revenue reached $7.9 billion in 2003. Operating profit of
$810 million declined 2.4 percent from 2002, due primarily to significant
year-over-year increases in pension costs and the effects of currency.
These results included the full-year contribution of Whirlpool
Mexico, which was integrated into Whirlpool’s regional operations
following the 2002 acquisition of Vitromatic S.A. de C.V. Whirlpool
Mexico is well on its way to becoming a strategically important
component of the company’s unique global operating platform, serving
our product export, manufacturing and supply-chain operations in
North America and beyond.
Whirlpool North America operations made considerable headway
with several ongoing initiatives that put customers front and center of
all our operations. Among the innovative products and home concepts
of note in 2003 was Whirlpool Family Studio. Unveiled at the
International Builders Show, Family Studio is a family work and
gathering environment, incorporating the latest in Whirlpool’s innovative
fabric-care products, housed in distinctive cabinetry, and other items
for everyday chores and entertainment. Family Studio elevates the
traditional laundry room to a distinctive living space for family activity.
The company’s Gladiator GarageWorks does the same for another
traditional home hideaway. With the garage long considered the space
of last resort for household and outdoor items, Gladiator GarageWorks
offers a complete and durable organizing and appliance system for this
area, including modular storage and hanging units, and moveable
appliances and work components. As the newest member of
Whirlpool Corporation’s family of global brands, Gladiator delivers
multiple family solutions for a room too long ignored.
Other customer loyalty initiatives, driven by Whirlpool engineers,
designers and marketers, helped produce a number of outstanding
products that reached their first full year of sales in 2003. Among
them were: the Whirlpool Duet clothes washer and dryer pair—
Whirlpool brand’s most energy- and water-efficient washer and dryer
pair—and the KitchenAid briva, a unique in-sink dishwasher that
supplements the cleaning needs of culinary enthusiasts and meets
the space constraints of small households.
The Whirlpool Polara refrigerated range—which gives customers the
freedom and convenience to time and cook pre-prepared meals using the
range’s innovative cooling and cooking technologies—also was available
nationwide last year. The Whirlpool Polara refrigerated range is ideal for
families with busy daily schedules who still seek the intimacy of sit-down
meals. As a next step, pilot tests are underway to give customers remote
control of the Whirlpool Polara refrigerated range using cell phones.
In 2003, KitchenAid introduced the KitchenAid Pro Line series of
major and countertop appliances to consumers who are passionate
about cooking. The KitchenAid Pro Line series products feature
distinctive design and professional-level performance, plus personalized
premium services that include dedicated customer service, online
recipes and culinary tips.