Whirlpool 2004 Annual Report Download - page 21

17
17
Whirlpool Latin America expanded our market share during
2004, driven by strong consumer demand for our brands, several
innovative new product launches and targeted customer loyalty
actions.
Regional revenue of $1.7 billion increased 24 percent compared to
2003. Operating profit of $65 million declined 27 percent, due
primarily to increases in the costs of key commodities and logistics.
Our efforts to drive customer loyalty were most clearly seen in
the new innovations and products introduced during the year. For
example, we introduced the 6th Sense appliance control technology
in products across the Brastemp portfolio of refrigerators, ranges
and washing machines. We also brought to market the first
customizable Brastemp refrigerator that gives consumers the ability
to pick the exact colors and features they want.
Innovations from Consul brand led to an expanded fabric care
line in 2004 with the launch of the brand's first clothes dryer.
Other Consul brand product introductions included a new water-
dispensing refrigerator and Consul's first ceiling fan–which extends
the brand to other areas of the home.
Consul brand unveiled its new brand positioning campaign as
part of a loyalty-building initiative that recognizes the importance
and decision-making role of women in the home. The campaign
presents Consul products depicted in the artwork created by four
Brazilian female folk artists.
Our Multibrás subsidiary instituted an integrated management
system that gives suppliers the information they need to deliver the
continual improvements in quality, technology and productivity.
As a key production source for Whirlpool's global manufacturing
network, we were particularly proud to receive independent
certification of our manufacturing processes in the areas of the
environment, health and safety and quality management (ISO
9001, ISO 14001 and OHSAS 18001).
During 2004, our operation exported more than 27 percent of
our production to Whirlpool markets worldwide. Through the
application of the company's Lean Manufacturing process, our
regional manufacturing organization turned in a strong year of
productivity.
Whirlpool's Brazil-based compressor operation, Embraco,
maintained its global market leadership during 2004, as reflected in
a 25-percent market share. The operation also improved its position
in the commercial refrigeration segment by introducing 17 new
products to the market, including environmentally compliant
carbon dioxide compressors.
Outlook
Whirlpool Latin America expects continued sales growth driven by
a moderate increase in overall demand, strong brands and
innovative product launches in 2005. Exports will continue to be a
priority for the region as we continue to leverage our
manufacturing cost and quality position within Whirlpool's global
operating platform. We also expect improved profitability based on
achieving further price increases and delivering significant
productivity gains.
Latin America Operating Review
Paulo F. M. Periquito
Executive Vice President and
President, Latin America
• The Brastemp 6th Sense
technology line is a new portfolio
of refrigerators, ranges and
washing machines - each one with
unmatched design, technology
and performance. The Brastemp
You refrigerator, which includes
6th Sense technology, is the first
fully customizable refrigerator in
Latin America.
• The Consul frost-
free refrigerator
with water
dispensing
combines
convenience
ease of
use and an
affordable price.
• The new Consul Séc Fácil is
the brand's first laundry dryer
and combines drastically
reduced clothes drying time
with low energy consumption.
Awards:
•Brastemp was again recognized as one of the most important brands in
Brazil in 2004. According to a “Top of Mind” survey compiled by the
newspaper Folha de São Paulo, the brand ranked fourth for the 14th
consecutive year. In the same ranking, Consul was the most mentioned
brand in the refrigerator category for the 13th year and was among the top
three growing ratio brands.
• Multibrás was recognized for the eighth time on the list of “Top 100 Best
Companies to Work for” in Brazil, by Exame, the major business magazine
in Brazil.
• Multibrás was recognized by the Carta Capital magazine and the
Interscience Informação e Tecnologia Aplicada as one of “The most
admired (companies) in Brazil” in the home appliances segment.
Significant New Product Introductions:
Locations
Headquarters: São Paulo,
Brazil
Manufacturing Locations:
Brazil Manaus, Rio Claro,
Joinville, São Paulo
Embraco (International)
Riva di Chieri, Italy; Spisska
Nova Ves, Slovakia; Beijing,
China
Principal Products
Automatic Washers,
Compressors, Countertop
Appliances, Dishwashers,
Fabric Dryers, Freezers,
Microwave Ovens, Ranges,
Refrigerators, Room Air
Conditioners
Key Statistics
• No. 1 market position in
the industry
• $1.7 billion in 2004 sales
• $65 million in 2004
operating profit
• Approximately 21,000
employees
Brands
Whirlpool, Brastemp,
Consul, Embraco,
Eslabón de Lujo