Whirlpool 2004 Annual Report Download - page 22

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In 2004, Whirlpool Asia laid the groundwork for future growth
and performance improvement by changing a longstanding trade
inventory management practice in India.
Last year, we introduced new trade terms to encourage our trade
partners to become more efficient and reduce trade inventory levels.
Trade partners responded by reducing their excess inventory, which
affected sales and profit for the region. Full-year sales of $382
million decreased 8.2 percent, and operating profit declined
significantly from the prior year.
The new trade terms have resulted in more efficient trade
inventory levels and a supply chain directly tied to the demands of
the market. In addition, the improved distribution efficiency will
allow us to more quickly introduce our slate of innovative new
products to consumers in the world's fastest-growing region.
Whirlpool Asia introduced a number of innovative appliances
last year, including two new frost control refrigerators with 6th
Sense technology in India, and a new line of Whirlpool Mercury
high-capacity clothes washers in China. For these and other
innovative products, Whirlpool brand was featured by
SUPERBRANDS, a global brand-ranking organization, in
its first edition of India's Superbrands.
Whirlpool India is pursuing opportunities to extend the
Whirlpool brand, a leading brand in clothes washers and
refrigerators, to the cooking category. New products that will be
featured include cooking ranges, ovens and electric exhaust hoods.
Our manufacturing facilities in India and China have become
key procurement and product sources for the Company's global
operating platform. Whirlpool Asia technology centers play a
significant role in the company's global technology organization,
and increasingly serve markets worldwide with efficient
manufacturing and innovation. For example, Whirlpool's plant in
Shunde, China, is the company's primary manufacturer for
microwave ovens globally, while the washer facility in Shanghai has
started exporting products to the Middle East. Exports from
Whirlpool India increased 18 percent in 2004, adding another 10
national markets to its expanding export network.
Outlook
For 2005, Whirlpool Asia anticipates strong revenue growth as we
introduce new, innovative products and as the company's product
distribution network throughout the region continues to expand.
Exports from Asia will continue to fuel growth as a significant
source for Whirlpool's sales networks.
Price increases have been implemented across the region to
address rising material costs. Based on current economic
conditions, we expect full-year industry unit shipments to increase
3-to-5 percent.
Asia Operating Review
Mark Hu
Executive Vice President and
President, Whirlpool Asia
• The innovative
Whirlpool Mercury
line of high-
capacity clothes
washers has
quickly become
one of China's top-
selling washers.
• The Ice Magic frost-free
refrigerator with 6th
Sense technology is
the only refrigerator on
the Indian market that
senses the loss of cold
air and lowers the
temperature through
its dynamic airflow
control system.
• Whirlpool India
introduced the world's
first frost control
refrigerator with 6th
Sense technology, a
high-capacity, single-
door refrigerator that
automatically defrosts
the freezer.
Locations
Headquarters: Shanghai, PRC
Manufacturing Locations:
India Faridabad, Pune,
Pondicherry
China Shanghai, Shunde
Principal Products
Air Conditioners, Microwave
Ovens, Refrigerators, Washers
Key Statistics
• Leader among Western
companies
• $382 million in 2004
sales
• $25 million in 2004
operating loss
• Approximately 5,000
employees
Brands
Whirlpool
Awards:
• Whirlpool Asia's clothes washers were recognized by the Chinese
government's product-standard agency as among the best performing,
high-quality appliances on the market.
•Whirlpool brand was featured by SUPERBRANDS, a global brand-ranking
organization, in its first edition of India's Superbrands.
Significant New Product Introductions: