Whirlpool 2005 Annual Report Download - page 23

Whirlpool Corporation 19
Whirlpool Asia reported revenues of $422 million in
2005, up more than 10 percent, along with a significant
improvement in operating results. The profitability
improvement came as a result of a broadened product mix
with the launch of more innovative products and penetrating
marketing plans.
Much of the Asian economy maintained strong
growth, with China leading at 10 percent GDP growth and
India with a 7 percent gain, despite high oil and commodity
prices impacting consumer sentiment. For the year, the
appliance industry grew by about 4 percent.
In China, several new laundry products were
launched to expand business in the high-end segment of the
market. We also expanded distribution through third-party
franchise stores, which enabled more uniform availability
of Whirlpool products across the country. Additionally, we
are establishing a presence in the builder channel, with the
launch of built-in cooking and other high-end products.
In India, we streamlined our distribution process to
make it easier for trade customers to increase their business
with us. As a result, this has sharply increased our operating
profit in this substantial market and improved our working
capital ratios to among the best in the industry.
A series of successful launches in refrigeration and
an aggressive drive in fabric care created substantial growth
in market share. Several innovative product launches, such
as the IceBerg frost-free refrigerator and the Genius direct-
cool refrigerator, led to significant improvements in average
sales value and market share.
Our business in other parts of Asia also continued
to make good progress during 2005. Whirlpool Hong Kong
turned in one of the best performances in recent history,
retaining its leading position in fabric care for the 11th
consecutive year.
Strong manufacturing and technology infrastructure
in India and China continued to play a key role in our
global operating platform. Production volume of microwave
ovens in our Shunde, China, manufacturing facility reached
a historical high of more than 1.85 million units, while
our International Procurement Office in Shanghai has
become a source of competitive advantage for our global
sourcing strategy. Asia also continued to grow as a source
of engineering and design talent for our global operating
capabilities.
Outlook
In 2006, we expect strong revenue growth as we introduce
more innovative products to meet the growing and more
discerning needs of the market. Exports will become a
higher priority for the region, as we leverage our technology
and manufacturing costs to benefit Asia and the rest of
the world. Lastly, we anticipate profit improvement as
we continue to focus on productivity and leveraging our
sales growth to improve our operating margins, as well as
product and sales-channel mix.
Brands: Whirlpool, KitchenAid
Headquarters: Shanghai, PRC
Manufacturing Locations: India: Faridabad, Pune, Pondicherry China: Shanghai, Shunde
Principal Products: Air Conditioners, Automatic Washers, Microwave Ovens, Refrigerators
Mark Hu Executive Vice President and President, Whirlpool Asia
Genius
The newly launched Genius
direct-cool refrigerator has
more capacity than standard
models, a door open alarm
and a pedestal for storing
non-refrigerated vegetables.
IceBerg
The IceBerg frost-free
refrigerator is Whirlpool
brand’s latest entry in the
highly competitive Indian
refrigerator market.
6th Sense Dryer
Large capacity condenser dryer
captures a new drying concept
for the Asian market.
Worldwide OperationsAsia Operating Review