Whirlpool 2003 Annual Report Download - page 22

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Whirlpool Europe operations turned in strong performance
improvement in 2003, despite challenging economic conditions and
weak consumer demand that resulted in the most significant industry
price declines in several years. Revenue of $2.7 billion was up 22 percent.
Operating profit of $124 million improved significantly from a year
earlier. Strong growth in the company’s built-in appliance business
across the region contributed to the results. A record level of
productivity in 2003 helped offset the price erosion.
The Whirlpool brand further established itself as the No. 1 appliance
brand across the region. The company also improved its already strong
market positions in France, Italy and the Nordics, as well as in Poland
and other countries throughout Central Europe.
Customer-focused initiatives and products in key European markets
have put Whirlpool Europe in a strong position to continue growing its
business on the continent. For example, growing consumer demand for
the company’s regional portfolio of refrigeration products was reflected
in the strong sales of the Whirlpool Conquest side-by-side refrigerator.
The operation extended its line of popular refrigeration products with
the introduction of the new Whirlpool Symphony frost-free refrigerator,
manufactured at the company’s facilities in Brazil and customized to fit
the unique lifestyles and expectations of customers in Europe.
The Whirlpool Dreamspace and Bauknecht big clothes washing
systems appealed to customers as well, because of their ease of use,
energy efficiency and innovative features. And the Whirlpool Mini-BI
microwave oven received strong consumer interest for its built-in
convenience and style.
The region’s efforts to enhance its trade-partner relationships also
made significant headway in 2003. Whirlpool Europe further cemented
its strategic partnership with the IKEA group, a global retailer of home
furniture and furnishings. Whirlpool will provide exclusively a full range
of appliances—including built-in appliances—to IKEA regionally and
worldwide. The agreement helps extend the company’s European
distribution capability and expand its built-in business, particularly for
cooking products.
Also last year, Whirlpool Europe signed a long-term supply
agreement with Alno, the No. 1 built-in appliance purchaser in Germany
and across the region. The built-in appliance business representsan
important growth opportunity for the region.
Whirlpool Europe continued the ongoing expansion of its
region-wide manufacturing capabilities, which included the integration
of the company’s 2002 acquisition of Polar S.A. of Poland. The operation
continued to leverage its region-wide production and distribution
network to deliver unique products at a competitive cost. The addition
of Polar has allowed the company to balance production between its
facilities in Western Europe and Eastern Europe, providing ”best cost”
manufacturing and a strong competitive position throughout the
region.
Outlook
For 2004—Whirlpool’s 15th year of operating in Europe—the company
anticipates continued sales growth based on improving economic
trends across the region. The operation also will introduce a number
of innovative products, such as a new premium cooking range under
the Whirlpool and Bauknecht brands, and achieve significant cost savings
through continued improvements in productivity and asset utilization.
Europe Operating Review
Michael A. Todman
Executive Vice President and President,
Whirlpool Europe
The uniquely designed Whirlpool
Mini-BI microwave oven is a cinch
to install and frees up needed
counter space.
The Bauknecht double-drawer,
built-in dishwashers give, with a
flair, multiple cleaning and
kitchen-design solutions.
2003 Awards and Achievements
■Whirlpool Slovakia was recognized as a "Family Friendly Employer" by the
Slovak Republic for the company’s efforts to foster equal opportunities for
women and men, and to create family-support solutions.
■The Whirlpool Dreamspace washer was recognized as the "Best White
Goods Product of the Year" by ERT, a leading British trade magazine,
and "Appliance Innovation of the Year" by Your Home, a British consumer
magazine.