Whirlpool 2004 Annual Report Download - page 20

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Whirlpool Europe achieved significant performance improvements
in 2004, with revenue up 13.8 percent to $3.1 billion and
operating profit increasing 34.5 percent to $166 million.
The continued performance improvement is due in part to the
successful pan-European expansion of our built-in appliance
business, reflected in a 17-percent increase in the number of units
sold last year. The strong growth rates of our two major pan-
European kitchen trade partners, IKEA and Alno, contributed to
this success. Innovative Whirlpool brand products like the 6th Sense
product line, the new JetChef three-in-one oven and the Mini-BI
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 of the region. In 2004, we began consolidation of the
company's 32 different market organizations into a few key “market
regions” to improve our efficiency and execution of our customer
loyalty initiatives. The new organization of combined markets will
also reduce complexity, improve execution and bring about cost
efficiencies.
During 2004, we continued to strengthen our regional operating
position through strategic changes to our manufacturing footprint
and the continued application of Lean Manufacturing and Six
Sigma. Our people used these tools to achieve record productivity
last year. In Central Europe, we expanded production of
refrigerators and dishwashers in Wroclaw, Poland–which also is the
site of our new cooking manufacturing facility, currently under
construction.
We significantly strengthened our trade-partner relationships in
2004 while marking our 15th anniversary of business and brand
leadership in the region. Whirlpool Europe welcomed more than
2,000 European retail trade partners and members of the media at
an award-winning event that strengthened brand positioning in the
region, unveiled in.kitchen–our concept kitchens of the future–and
presented product innovations, such as the new Whirlpool brand
Progressive Collection line of kitchen appliances.
Lastly, we're proud to have leveraged Whirlpool Corporation's
long-standing commitment to social causes and its successful
relationship with Habitat for Humanity International in 2004 by
launching a building and product-donation program in Europe.
Outlook
Consumer demand for our products and brands, especially the
Whirlpool brand, is expected to result in improved regional sales
growth. Our built-in appliance business should continue to
contribute to our performance during the year. We also are carrying
out plans to mitigate higher raw material costs and improve
profitability through price increases, productivity improvements
and innovation. We anticipate modest industry shipment growth
across Europe in 2005.
Europe Operating Review
Michael A. Todman
Executive Vice President and
President, Whirlpool Europe
Awards:
• The European Incentive & Business Travel & Meeting Exhibition awarded
Whirlpool Europe the "Best Business to Business Event" for "Experience
the Vision," Whirlpool Europe's 15th anniversary event held in Cannes,
France, in March 2004.
• Whirlpool France won the 2004 Janus de la Santé award in partnership
with Handicap Zero, a well-known French charity dedicated to the blind.
•6th Sense Technology:
Introduced in 2004,
Whirlpool's unique 6th
Sense technology has
been applied across all
product lines (such as this
refrigerator) to save time
and energy for users,
while also providing them
choice, flexibility,
simplicity and excellent
results in their household
tasks.
• The Whirlpool JetChef three-in-one
oven combines conventional, steam
and microwave technology for high-
speed cooking, while 6th Sense
technology adjusts the settings for
the best results based on the food
type.
• The Whirlpool Progressive
Collection provides cutting-edge
technology in a complete range of
innovative products with clean,
essential design, using stylish,
functional glass and stainless steel.
Locations
Operations Center:
Comerio, Italy
Manufacturing Locations:
France Amiens
Germany Neunkirchen,
Schorndorf
Italy Naples, Siena,
Cassinetta, Trento
Poland Wroclaw
Slovakia Poprad
South Africa Isithebe
Sweden Norrköping
Principal Products
Automatic Dryers, Automatic
Washers, Built-in Hobs, Built-in
Ovens, Dishwashers, Free-
standing Cookers, Freezers,
Microwave Ovens, Ranges,
Refrigerators
Key Statistics
• No. 3 position in
Western and Central
Europe
• $3.1 billion in 2004 sales
• $166 million in 2004
operating profit
• Approximately 14,000
employees
Brands
Whirlpool, Bauknecht,
Ignis, Polar, Laden
Significant New Product Introductions: