Whirlpool 2005 Annual Report Download - page 21

Whirlpool Corporation 17
Whirlpool Europe achieved solid performance in 2005, with
record revenue of $3.2 billion, up 3 percent, while managing
through significant increases in raw material costs and a
somewhat sluggish market environment. Strong productivity,
continued focus on customers and selling a richer mix of
products drove results.
Our built-in appliance business continues to be
strong, with an 11 percent increase in units sold year-over-
year and a 45 percent increase in sales since 2002. Our
exclusive trade customer relationships with IKEA and Alno
(the largest German kitchen manufacturer), as well as a
range of innovative products such as our new Origami
cooktop accessories and the Titanium line of appliances,
were the key drivers behind this solid growth.
In addition, new products such as the Whirlpool
Pret-à-Porter clothes refreshener, and entry into the
professional product area with our comprehensive
professional line, highlighted the strong innovations that
we brought to market.
To further expand the growth of our European
business, we partnered with the Turkish consumer
electronics manufacturer and exporter, Vestel, giving
Whirlpool Europe access to one of the world’s largest
emerging markets. We also were successful in being selected
as a “Focus Supplier” by DSG International (formerly
Dixons), Europe’s largest white goods retailer.
Our strategy to achieve sustainable competitive
advantage continues throughout all European
manufacturing operations, with the expansion of Lean
Manufacturing and Six-Sigma programs driving quality and
efficiency. During the year, we continued the expansion of
our facility in Wroclaw, Poland, and opened a new cooking
factory to produce our new cooktop and oven products.
During 2005, we continued to expand Whirlpool
Corporation’s partnership with Habitat for Humanity
International into continental Europe. Six European Habitat
projects have been completed since 2004, and many more
are expected in the years ahead. We also developed a
relationship with the Women’s Tennis Association resulting
in the WTA becoming a sponsor of Habitat.
Outlook
We expect 2006 to be a strong year for solid sales growth
as the launches of innovative products and services are
accelerated. Growth of our built-in appliance business,
expansion of the Whirlpool brand, and significant cost
savings from ongoing productivity gains also are expected to
contribute to performance improvements. We’re especially
looking forward to reaping the returns from our significant
investment in Poland. Europe as a whole can expect modest
growth of 1-to-2 percent in industry shipments.
Brands: Whirlpool, KitchenAid, Bauknecht, Ignis, Polar, Laden
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, Countertop Appliances, Dishwashers, Free-standing
Cookers, Freezers, Microwave Ovens, Ranges, Refrigerators
Marc Bitzer Executive Vice President and President, Whirlpool Europe
Pret-à-Porter
Whirlpool Europe’s new clothes
freshener and revitalizer Pret-
à-Porter (known as the Fabric
freshener in North America)
was launched across Europe
to great fanfare.
Origami Accessories/Range
The new line of innovative
Origami ranges and
accessories was inspired by
the latest trends in design and
comes in a variety of models
of different sizes and finishes.
Titanium Range
Whirlpool Europe’s new
Titanium range emphasizes
simplicity, minimalism and
functional luxury, creating a
sense of stylish modern living
on both aspirational and
emotional levels.
Europe Operating Review Worldwide Operations