Whirlpool 2005 Annual Report Download - page 20

16 Whirlpool Corporation
Dual Fuel Range with
Steam Assist
The KitchenAid Dual Fuel Convection
Range with Steam Assist is the first
full-size, freestanding appliance to
offer convection plus steam-assist
technology in the U.S. residential
market.
Whirlpool North America delivered record revenue of $8.9
billion while successfully managing our way through 30-year
highs in raw material costs and oil-related expenses in 2005.
Equally significant, we delivered record operating perfor-
mance while continuing to invest in our strategy to achieve
customer loyalty to our brands through, in part, unrivaled
product and service innovations.
Strong productivity gains and reduced selling and
administrative spending during the year further boosted
our performance in economic conditions that included low
interest rates, as well as buoyant housing starts and sales of
existing homes.
Particularly gratifying was the expansion of our
North American operating platform, both in the U.S. and
Mexico, where we completed a new front-load clothes washer
plant in time for an unprecedented launch of new laundry
products in early 2006 at the International Builders Show.
These breakthrough laundry products deliver increased capac-
ity with improved water and energy conservation. When
combined with many other unique products emerging from
our innovation pipeline, we expect more than 60 percent of
our products in the North American marketplace by the end
of 2006 to be new innovations that did not exist in 2005.
We introduced a record number of successful prod-
ucts during 2005, including the Whirlpool Velos speed cook
appliance, which allows consumers to grill, bake, broil and
steam like a traditional oven but with the speed of a mi-
crowave; the fast fill refrigerator dispensing system, which
provides consumers with programmed high-speed and
measured-fill dispensing of water and ice; a completely new
line of Whirlpool Gold built-in cooking appliances featuring
European design and advanced technologies to help improve
cooking performance; and the KitchenAid dual fuel range
with steam-assist, the world’s first freestanding, full-size oven
providing consumers with the steam and convection cooking
combination usually reserved for professional chefs.
Our operations in Canada and Mexico recorded
outstanding results in sales, units and brand market share in
2005. Whirlpool Canada not only is the number one appli-
ance company in Canada, but also ranks as one of the top
50 companies to work for in the country. Whirlpool Mexico,
meanwhile, recorded record growth and is rapidly becoming
a vital cog in our global operating platform as an exporter
and importer of our products. At the same time, fully one-
third of our appliances sold in Mexico are made in the U.S.
thanks to the flexibility we have to source from the lowest
cost location.
Beyond our business performance, Whirlpool again
was recognized by the U.S. Department of Energy and the U.S.
Environmental Protection Agency for our efficient ENERGY
STAR® qualified appliances and efforts to reduce greenhouse
gas emissions. For our efforts in 2005, Whirlpool was named
ENERGY STAR® Partner of the Year for the seventh time in
2006, with the distinction of Sustained Excellence for being
named a Partner for three or more consecutive years.
Outlook
In 2006, we anticipate an increase in industry shipments of
2-to-3 percent in the U.S. We expect another solid year, with
greater success in our customer focus initiatives, thanks to
continual launches of innovative appliances and services,
and by earning the business of our trade customers to ensure
that we remain the number one appliance company in North
America.
Brands: United States: Whirlpool, KitchenAid, Gladiator, Roper, Estate Mexico: Whirlpool, Acros, Supermatic, Crolls Canada: Inglis, Whirlpool, KitchenAid
Headquarters: Benton Harbor, MI, USA
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: Celaya, Monterrey, Puebla, Ramos Arizpe
Principal Products: Air Purifiers, Automatic Dryers, Automatic Washers, Bakeware, Built-in Ovens, Cooking Gadgets, Cookware, Countertop Appliances,
Dehumidifiers, Dishwashers, Fabric Fresheners, Freezers, Garage Storage Organizers, Hot Water Heaters, Ice Makers, Microwave Ovens,
Portable Appliances, Ranges, Refrigerators, Room Air Conditioners, Trash Compactors, Water Dispensers
W. Timothy Yaggi Executive Vice President, Market Operations, North America Region
Velos
The Whirlpool Velos g2Convect
appliance allows consumers
to grill, bake, broil and steam
like a traditional oven but with
the speed of a microwave.
Fabric Freshener
The Whirlpool Fabric Freshener
conveniently releases wrinkles
and removes odors, while
being gentle on a range of
fabrics, including wool, silks,
rayon, dry clean only, polyester
and cotton.
North America Operating Review Worldwide Operations