Whirlpool 2003 Annual Report Download - page 23

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The effects of Brazil’s economy in 2003 challenged Whirlpool Latin
America operations for much of the year, and the company responded
well within the difficult environment. Despite depressed consumer
spending and industry demand, revenue of $1.4 billion improved 6.7
percent. However, the economic impact on pricing, materials and
currency significantly reduced operating profit.
Whirlpool Latin America accelerated steps in 2003 to consolidate its
Brazilian operations as an export base for the parent company’s global
operating platform, while continuing to build on its leading market
position in the region’s largest countries, particularly Brazil. More than
one-and-a-half million Brazilian-made products were exported to other
markets and regions last year, nearly triple the previous record high in
2002. These achievements have placed the company among Brazil’s 50
largest exporters. This role as a source for company exports will remain
a key performance factor for years to come.
The Brazil-based compressor business, Embraco, already holds a
leading export position and continued last year to build on its
advanced technology. Embraco also oversees manufacturing operations
in Italy, Slovakia and China.
Whirlpool’s Brazilian operations also became an even more integral
part of the company’s overall global operating platform in 2003 with
the engineering, design and production of the Consul Ideale clothes
washer, an entry product that is affordable for first-time users of
automatic washers. A version of the washer was subsequently produced
in China and is heading for other emerging markets in 2004 and beyond.
The company’s Brastemp brand also introduced Luminata, a complete
line of premium kitchen appliances for Brazilian consumers. The line
emerged after months of customer-focused studies during which
another consumer need and business opportunity was discovered.
The need to purify household water—a daily chore for Brazilians—led
to last year’s introduction of the Brastemp water purifier system for use
in the homes of consumers. Likewise, the Consul brand continued to
update its entire line of home appliance products.
These innovative products and other customer-focused services
continued to earn the Brastemp and Consul brands top honors among
consumers. For instance, Brastemp and Consul placed fourth and ninth,
respectively, in the annual "Top of Mind" national brand survey by
Folha de São Paulo, a leading national news publication. This survey
considers every brand in every consumer product segment.
Multibras and Embraco, Whirlpool’s two subsidiaries in Brazil, again
were selected in 2003 by Exame, the country’s most prestigious
business magazine, as among the "100 Best Companies to Work For"
in Brazil. Multibras was recognized as the top home appliance
manufacturer in the annual “The Most Admired in Brazil” ranking by
the business magazine Carta Capital and the Interscience Technology
and Information Research Institute.
Multibras remained the home appliance industry’s energy-efficient
leader last year by having retained the highest number of Procel Labels,
the Brazilian Government’s product certification of energy efficiency.
Outlook
The company expects increased levels of revenues and profits based on
moderate improvements in the external environment in Brazil. Industry
unit shipments are expected to increase as well.
Latin America Operating Review
Paulo F. M. Periquito
Executive Vice President and President,
Latin America
The Brastemp Luminata line of pre-
mium kitchen appliances, including
the sleek and stylish range, offers
technological advances that make
cooking a pleasure.
The champagne-toned Brastemp
Duplex Frost-Free 440 is among
the most complete and technologi-
cally advanced refrigerators on the
market.
■Forbes magazine recognized Multibras, Whirlpool’s Brazilian subsidiary, as
one of "50 Most Admired Companies in Brazil." The award recognizes
excellence in talent retention, workplace environments and social
responsibility.
■Woman CONSULate has provided assistance to thousands of
disadvantaged Brazilian women trying to improve their lives. Originally
a Consul brand initiative, the company made CONSULate the most
important social assistance project last year.