Whirlpool 2006 Annual Report Download - page 22

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EUROPE OPERATING REVIEW
Whirlpool Europe delivered record revenue of $3.4 billion in
2006, up 7 percent from 2005. Our overall operating profit
increased 23 percent over 2005, bolstered by innovation
in cooking and built-in products, as well as our continued
expansion of the Whirlpool brand in two key emerging
markets – Turkey and Russia.
Whirlpool Europe continued to meet the needs of our
consumers with innovative products. We launched a six-
kilogram (13 pound) Bauknecht washing machine with a
Hygiene+ cycle, which heats laundry to 80 degrees Celsius
(176 degrees Fahrenheit), destroying bacteria and removing
allergens. The Whirlpool brand improved upon its popular
front-loading DreamSpace washing machine, increasing its
capacity to enable it to complete nine kilograms (20 pounds)
of laundry in a single load. And, the Bauknecht brand
launched two new built-in appliance lines – Pure and Design
– which integrate several different global design trends, offer
scratch-resistant surfaces and an intelligent system control
with text display that provides perfect cooking results.
We also began preparing for the 2007 European launch of
the high-end KitchenAid brand. The European version of this
premier brand will feature the distinctive KitchenAid design
along with cutting-edge technology.
We support our innovative products and leading brands
through our manufacturing footprint, which we continued to
refine this year, including nearly doubling the capacity of our
cooking facility in Poland. We also made improvements to
our product quality through systematic progress in our quality
processes and the introduction of design-to-quality new
product platforms.
Whirlpool Europe further strengthened its leading position
in the growing built-in market through an either exclusive or
primary trade customer relationship with the three largest
built-in appliance retailers in Europe. We improved our overall
supply chain abilities through an industry-leading build-to-
order system that produces only upon order, enabling us to
better serve our customers without holding inventory.
OUTLOOK: In 2007, Whirlpool Europe expects a strong
year with solid sales growth, fueled by the continued launch
of innovative products and services. We will continue the
growth of our built-in appliance business and expansion of
our Whirlpool brand offerings. In addition, we anticipate the
successful ramp-up of the KitchenAid brand launch. Finally,
we look forward to cost savings from ongoing productivity
gains that will also contribute to performance improvements.
Whirlpool Built-In Ovens
Built-in ovens with new styling and
6th Sense technology offer a range
of pre-set recipes to help consumers
easily express their culinary
creativity.
Bauknecht Hygiene+ Washer
The Hygiene cycle heats laundry
to a temperature of 80 degrees
Celsius (176 degrees Fahrenheit) for
10 minutes, destroying bacteria and
removing allergens.
Marc Bitzer
Executive Vice President
and President
Whirlpool Europe