Whirlpool 2004 Annual Report Download - page 18

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Whirlpool North America made significant advances in our
customer loyalty strategy during 2004, while confronting
unprecedented increases in raw material and oil-related
costs. Our people met these challenges by delivering record
manufacturing productivity gains, new product
innovations, and effective brand and product mix.
Consumer demand remained strong throughout 2004 as low
interest rates in the United States helped maintain the momentum
of new housing starts, sales of existing homes and spending on
durable goods. Whirlpool North America posted record revenue of
$8.3 billion in 2004. Operating profit declined 4 percent to $778
million, largely because of the costs of key raw materials and
logistics.
During 2004, we made a commitment for a $180 million multi-
year investment to strengthen our North American manufacturing
base and extend our leadership position in the U.S. appliance
industry. The investment is expected to deliver a series of
innovative new products to consumers in the U.S. domestic market
and throughout the world. In addition, the investment will help us
improve the efficiency and productivity of our North American
manufacturing platform.
We made significant progress across the region with another year
of record sales in Canada and further integration of Whirlpool
Mexico into our regional operations. In 2005, and in the years
ahead, the operation will play a strategic role within Whirlpool
Corporation's global operating platform, serving as an important
product export, manufacturing and supply-chain provider for
North America and other global markets. A prime example of
Whirlpool Mexico's growing importance is the pending launch of a
super efficient and affordable front-loading clothes washer at the
company's expanded Monterrey facility.
We continued to make significant inroads with our strategy of
focusing our operations on customers. Meeting their needs and
simplifying their lives is crucial in building loyalty to the
company's brands, as exemplified by the Whirlpool, KitchenAid and
Gladiator brands. In line with this strategy, teams of Whirlpool
engineers, designers and marketers are constantly undertaking
dozens of customer-loyalty initiatives to deliver unique solutions to
our customers.
Whirlpool North America continued to make rapid strides in
broadening our innovation strategy through partnerships, exclusive
arrangements and licensing agreements with like-minded
innovative companies. These affiliations speed up Whirlpool's
introduction of unique solutions that better fulfill customer needs
and desires. Through an innovative licensing agreement, we
successfully launched a new line of water products with Lowe's that
extended the reach of the Whirlpool brand and strengthened our
trade relationship with this retailer. Likewise, the KitchenAid brand
was extended into kitchen gadgets, cookware and linens through
innovative licensing agreements.
The strength of our brands and our relationships with trade
partners have secured leadership positions with the top American
retailers and buying groups that represent more than 80 percent of
all retail appliance purchases in the U.S. Likewise, our strong
position with contract builders continues to grow, with KitchenAid
North America Operating Review
David L. Swift
Executive Vice President,
North American Region
• The stylish new KitchenAid
Ensemble front-loading
washer and dryer delivers
high water and energy
efficiency and extends the
KitchenAid brand into other
areas of the home.
•KitchenAid brand expanded
its Pro Line series of
professional-style
countertop appliances with
the introduction of a
commercial-quality food
processor.
Locations
Headquarters:
Benton Harbor, MI
Manufacturing Locations:
United States
LaVergne, TN; Findlay, OH;
Marion, OH; Greenville, OH;
Clyde, OH; Benton Harbor, MI;
Evansville, IN; Fort Smith, AR;
Tulsa, OK; Oxford, MS
Mexico
Monterrey, Celaya, Puebla
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
Key Statistics
• No. 1 position in the
industry
• $8.3 billion in 2004
sales
• $778 million in 2004
operating profit
• Approximately 28,000
employees
Brands
United States
Whirlpool, KitchenAid,
Gladiator, Roper, Estate
Mexico
Whirlpool, Acros,
Supermatic, Crolls
Canada
Inglis, Whirlpool,
KitchenAid
Significant New Product Introductions: