Whirlpool 2004 Annual Report Download

Download and view the complete annual report

Please find the complete 2004 Whirlpool annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 40

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40

2004 Summary Annual Report
Customer Loyalty … the Core of Our Strategy
Customer Passion … the Focus of Our Business

Table of contents

  • Page 1
    Customer Loyalty ...the Core of Our Strategy 2004 Summary Annual Report Customer Passion ...the Focus of Our Business

  • Page 2
    ...'s 6th Sense line of innovative products, such as Origami - a new line of multi-functional cooktop accessories. Table of Contents Chairman's Letter Financial Highlights Global Operating Platform Trade Partner Relationships Customer Loyalty Innovation Pipeline North America Operating Review Europe...

  • Page 3
    ... with the best addedvalue trade partners and service providers. We also are increasingly staying in touch with our customers by connecting with them directly during their ownership and building this brand relationship over time. As a company, we are learning and building new skills that will enable...

  • Page 4
    ...Brand Value Creation Strategy The success of Whirlpool's global business is driven by our ability to truly understand and fulfill customer needs, develop highly innovative branded solutions, effectively serve trade partners and continuously improve productivity and quality. These capabilities define...

  • Page 5
    ... products, we "partner" with retailers and builders who share our commitment to exceeding expectations for customer service and quality. A Differentiated Value Creation Strategy Customer Loyalty Platform Innovation Customer Focus Growth Brand Focus Best Customer Position Trade Management Platform...

  • Page 6
    ... our technology, design, procurement, innovation and supply chain globally, making us faster and more efficient. Outlook For 2005, we expect moderate growth in global consumer demand and continued increases in raw material costs such as steel, metals, resins and other oil-related products. Within...

  • Page 7
    ..., except per share data) Net sales Net earnings Per share on a diluted basis Stockholders' equity Total assets Return on equity * Book value per share Dividends per share Share price High Low Close Shares outstanding at December 31 (in 000's) Number of employees 2004 $13,220 $ 406 $ 5.90 $ 1,606...

  • Page 8
    ... to customers in each market we serve. Our global operating platform provides the foundation of Whirlpool's differentiated value creation strategy. By effectively managing the entire supply chain with a global mind set-from procurement and product development to manufacturing and distribution-we...

  • Page 9
    "The Choice of the Brazilian Woman" Consul brand's new positioning campaign recognizes the importance of women in the home appliance decision-making process and includes products depicted in the artwork of four Brazilian female folk artists.

  • Page 10
    ... our refrigerator filter makers) to launch a new program with record speed to market: only four months per product line. In return, Lowe's provided significant, dedicated floor space in their stores and a new television advertisement (images at right) leveraging the strength of both brands, product...

  • Page 11
    ...better understand brand presentation through innovative floor displays, and to experience effective sales and customer service training. Whirlpool also provides direct sales and technical service training to trade partners in every region of the world, and offers time saving online tools to simplify...

  • Page 12
    The Value of Customer Loyalty Whirlpool's customer loyalty strategy is a long-term commitment that builds upon our strengths in global manufacturing productivity, trade partner management, innovative products and strong brands. Whirlpool's focus on customer loyalty is recognition that winning the...

  • Page 13
    ... to Habitat, and soon plans were in place for a 2004 television campaign and concert tour. Reba's tour carried Habitat's message to over a half-million people in the United States, and the commercial in which she starred touched millions more. Customer loyalty research tells us that efforts...

  • Page 14
    ... began investing in a strategy of innovation to create value for our customers and loyalty for our brands. Between 2001 and 2004, more than 30 new innovations were introduced into the market globally, driving additional sales and contributing to profitability. In 2005, Whirlpool is accelerating the...

  • Page 15
    ... Innovation Whirlpool's innovation pipeline begins with brand-based customer loyalty research, which is applied to new business and product ideas that are brought to market through a multi-leveled commercial development process. New Business Opportunities are developed to create new customers and...

  • Page 16
    ... fabric care centers NA 2004 Economic House A water solution that provides filtered, chilled water replacing bottled water LA Gladiator GarageWorks Garage organizing appliances and solutions NA Pure Provides filtered, chilled and carbonated water EU Outdoor Entertaining Stainless steel and built...

  • Page 17
    ... EU Speedcook Appliance High-speed microwave hood combo with built-in look and increased capacity NA High Efficiency Wash Soak and pulse dishwasher filter for easy cleaning and improved performance EU Hygienic Refrigerator Anti-bacterial air filtration solution for freezer and refrigerator EU...

  • Page 18
    ... Principal Products Air Purifiers, Automatic Dryers, Automatic Washers, Built-in Ovens, Countertop Appliances, Dehumidifiers, Dishwashers, Fabric Fresheners, Freezers, Hot Water Heaters, Ice Makers, Microwave Ovens, Ranges, Refrigerators, Room Air Conditioners, Trash Compactors, Water Dispensers

  • Page 19
    ... glass touch controls for ease of use and cleaning. • The new Whirlpool Gold super capacity dishwasher with AccuSense adaptive wash cycle automatically selects the right wash cycle based on load size and food deposits. brand channel revenue growing 20 percent in 2004. Total sales have...

  • Page 20
    ... built-in oven contributed to the performance improvement, while record levels of productivity during 2004 also helped offset increased material costs in the region. Whirlpool Europe's core strategy continues to focus on effectively building lifelong customer loyalty across all of the varied markets...

  • Page 21
    ... appliances segment. Principal Products Embraco (International) Riva di Chieri, Italy; Spisska Nova Ves, Slovakia; Beijing, China Automatic Washers, Compressors, Countertop Appliances, Dishwashers, Fabric Dryers, Freezers, Microwave Ovens, Ranges, Refrigerators, Room Air Conditioners Headquarters...

  • Page 22
    ... sales • $25 million in 2004 operating loss • Approximately 5,000 employees 18 Brands Whirlpool Locations Headquarters: Shanghai, PRC Manufacturing Locations: India Faridabad, Pune, Pondicherry China Shanghai, Shunde Principal Products Air Conditioners, Microwave Ovens, Refrigerators, Washers...

  • Page 23
    ... demand. Management also focuses on country, brand, product and channel market share, average sales values, and profitability when assessing and forecasting financial results. The Company intends to leverage its global manufacturing, procurement and technology footprint to strengthen Whirlpool...

  • Page 24
    ... reduction strategy in India negatively impacted 2004 volume and sales. The strategy change will improve the speed, flexibility and overall efficiency within sales and distribution processes, and will enable the Company to launch new product introductions more frequently and faster to the market...

  • Page 25
    ..., general and administrative expenses in 2004, as a percent of consolidated net sales, remained relatively unchanged versus 2003 and 2002. Higher freight rates in North and Latin America were partially offset by productivity in other non-logistic areas. Europe benefited from leverage on higher...

  • Page 26
    ... Company's inventory trade-reduction strategy in India. The Company will continue to expand its China procurement and technology base to support its global operations, expand domestic sales within China and India, and increase global exports of components and finished product. Cash Flows Whirlpool...

  • Page 27
    ... Whirlpool's brand leadership position in the global appliance industry. The Company plans to continue its comprehensive worldwide effort to optimize its regional manufacturing facilities, supply base, product platforms and technology resources to better support its global brands and customers...

  • Page 28
    ...market performance during the year increased the value of pension fund assets. Whirlpool also contributed approximately $49 million pre-tax ($31 million to funded plans) to its U.S. pension plans during 2004, of which $31 million was a voluntary contribution and $18 million was required. The Company...

  • Page 29
    ...613) $ (394) Net sales Expenses Cost of products sold Selling, general and administrative Intangible amortization Restructuring costs Operating Profit Other Income (Expense) Interest ... of change in accounting principle, net of tax Net earnings (loss) Per share of common stock: Basic earnings from...

  • Page 30
    ... companies Goodwill, net Other intangibles, net Deferred income taxes Prepaid pension costs Other assets 16 168 108 323 329 140 1,084 91 1,073 5,933 (4,514) 2,583 Total Assets $ 8,181 11 165 85 268 357 154 1,040 84 1,004 5,391 (4,023) 2,456 $ 7,361 Property, plant and equipment Land Buildings...

  • Page 31
    ... of dollars) 2004 2003 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Notes payable Accounts payable Employee compensation Deferred income taxes Accrued expenses Restructuring costs Income taxes Other current liabilities Current maturities of long-term debt Total Current Liabilities...

  • Page 32
    ... in losses of affiliated companies, less dividends received (Gain) loss on disposition of assets Loss on discontinued operations Depreciation and amortization Changes in assets and liabilities, net of business acquisitions: Trade receivables Inventories Accounts payable Product recalls Restructuring...

  • Page 33
    ... 2004 Annual Report on Form 10-K, and to the 2005 Proxy Statement. Management of Whirlpool Corporation is responsible for the accuracy and completeness of the information in this Summary Annual Report. The financial and operating information was prepared from the Company's accounting records, books...

  • Page 34
    ... 31, 2004. Whirlpool Corporation's independent registered public accounting firm has issued an audit report on our assessment of the Company's internal control over financial reporting. This report appears on page 31. Jeff M. Fettig Chairman of the Board, President and Chief Executive Officer March...

  • Page 35
    ... and Board of Directors Whirlpool Corporation Benton Harbor, Michigan We have audited management's assessment, included in the accompanying Management's Report on Internal Control Over Financial Reporting, that Whirlpool Corporation maintained effective internal control over financial reporting as...

  • Page 36
    ... operations before accounting change Diluted net earnings (loss) (3) Dividends Book value Closing stock price - NYSE 6.02 5.90 5.90 1.72 23.31 69.21 6.03 5.91 5.91 1.36 18.56 72.65 3.86 3.78 (5.68) 1.36 10.67 52.22 Key ratios (4) Operating profit margin Pre-tax margin (5) Net margin (6) Return on...

  • Page 37
    ... operations, as a percent of sales. Net earnings (loss), divided by average stockholders' equity. Average stockholders' equity is computed on a 13-month average beginning in 2001. (8) Net earnings (loss), divided by average total assets. (9) Debt divided by debt, stockholders' equity and minority...

  • Page 38
    ... (Central Time), at 120 East Delaware Place, 8th Floor, Chicago, Illinois. Stock Exchanges Common stock of Whirlpool Corporation (exchange symbol: WHR) is listed on the New York and Chicago stock exchanges. Certifications The most recent certifications by the Company's Chief Executive Officer and...

  • Page 39
    .... Cook for the Cure is a registered trademark of The Susan G. Komen Breast Cancer Foundation. Low Close Whirlpool Corporation General Offices World Headquarters and North America Region 2000 N. M-63 Benton Harbor, MI 49022-2692 Telephone: 269.923.5000 Europe Region Viale G. Borghi 27 21025 Comerio...

  • Page 40
    ..., Latin America David L. Swift Executive Vice President, North American Region Roy W. Templin Executive Vice President and Chief Financial Officer Michael D. Thieneman Executive Vice President and Chief Technology Officer Michael A. Todman Executive Vice President and President, Whirlpool Europe...