Whirlpool 2004 Annual Report Download - page 4

There are three critical elements in our strategy:
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Chairman’s Letter
In 2004, Whirlpool Corporation continued to successfully execute our brand value creation strategy in the
midst of a dynamic global business environment. We benefited from strong consumer demand for major
home appliances but were also challenged by unprecedented cost increases for key materials. Against this
backdrop, Whirlpool delivered solid financial results and achieved important strategic objectives that
strengthened our global leadership position.
2004: A Year of Rapid Change
In 2004, our business landscape changed rapidly. In the
first half of the year, we aggressively grew our business and
earnings by more than 10 percent. We continued our
revenue growth in the second half as raw material costs
worldwide increased to unprecedented levels. By the end
of the year, our costs for steel, metals, resins and other oil-
related products had risen by more than $300 million. We
successfully offset a significant portion of the increased
costs with record levels of productivity, cost controls and
price increases. For the year, we delivered record revenues
of $13.2 billion, an increase of 8.6 percent from 2003,
reflecting the strong demand for our global brands and
new product innovation.
In 2004, our business performance achievements included:
• $406 million net earnings, $5.90 diluted
earnings per share;
• $794 million cash provided by operating activities;
• Debt-to-capital ratio reduced from 51 percent
to 46 percent;
• $116 million returned to shareholders through
dividends, an increase of 26 percent over 2003;
• 3.7 million shares repurchased;
• Continued global growth of the Whirlpool brand, the
number-one selling appliance brand worldwide;
• Our internal controls over financial reporting were
enhanced and assessed to be effective under Section
404 of the Sarbanes-Oxley Act of 2002.
Whirlpool's 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 our
differentiated value creation strategy and give us the
advantages we are utilizing to effectively manage the
challenges of the global marketplace today and in the
years ahead.
Jeff Fettig, Chairman, President and Chief Executive Officer
Whirlpool Corporation…
Strongly Positioned to Succeed
in a Dynamic Global Environment