Whirlpool 2010 Annual Report Download

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W H I R L P O O L C O R P O R A T I O N 2 0 1 0 A N N U A L R E P O R T
Please visit our online annual report at www.whirlpoolcorp.com/2010Annual/

Table of contents

  • Page 1
    W HIRLP O O L C O RP O R ATIO N 2010 A NNUA L REP O RT Please visit our online annual report at www.whirlpoolcorp.com/2010Annual/

  • Page 2
    ... #1 global major appliance share First to offer consumers an electric, motoruriven wringer washer in 1911 First to market the countertop microwave oven First to uevelop the self-uefrosting refrigerator First to offer consumers a toll-free phone number for service inquiries #1-selling major appliance...

  • Page 3
    ... promise of new and exciting opportunities for Whirlpool Corporation, our employees, our shareholders, and the families who use our products each and every day, everywhere around the world. 100 years Whsrlpool Corporatson achseved smproved results sn 2010. Delsversng on our operatsng prsorstses for...

  • Page 4
    Chairman's Letter Jeff M. Fettig Chairman of the Board and Chief yxecutive Officer 2010 Fiscal fesults We saw a return to growth in 2010 with our revenues growing 7 percent to $18.4 billion. Net earnings per share were $7.97 per diluted share compared to $4.34 per diluted share reported for 2009. ...

  • Page 5
    ... every major category around the world during the year. These global product launches were recognized externally for sustainability, design and innovation. We ranked fifth on Fast Company's 2010 list of the World's Most Innovative Companies in the consumer products category. We also were recognized...

  • Page 6
    Jeff M. Fettig (with gavel) and members of Whirlpool Corporation's leadership team ring The NYSE Euronext Closing Bell® on November 11, 2010, to kick off Whirlpool Corporation's yearlong 100th Anniversary Celebration. From left to right: Blair A. Clark, David T. Szczupak, David A. Binkley, Marc ...

  • Page 7
    ... making this company great. Throughout our history, our successes have come because of our global employees who have come together around shared values and a common commitment to improve the lives of people - one home, one family at a time. Sincerely, Jeff M. Fettig Chairman of the Board and Chief...

  • Page 8
    ...Book value per diluted share Dividends per share Share price High Low Close $118.44 $ 71.00 $ 88.83 76,030 70,800 $ 85.01 $ 19.19 $ 80.66 74,704 66,900 39.3% 270.0% 10.1% 1.8% 5.8% Shares outstanding at December 31 (in 000s) Number of employees Revenue $ in billions Diluted Earnings per Share...

  • Page 9
    ... 130 countries under the world's most recognized brands, including Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Consul, Bauknecht and Gladiator. The success Whirlpool Corporation has experienced is, in no small part, due to the fortitude of our founding families and the influence and...

  • Page 10
    Global Branded Consumer Products Company GROW THE CORE APPLIANCE BUSINESS + EXTEND THE CORE APPLIANCE BUSINESS + EXPAND BEYOND THE CORE Major appliances Products or services that are dependent on and related to our core business Stand-alone businesses that leverage our core competencies and ...

  • Page 11
    ... our global customers in increasingly innovative ways - efficiently and nimbly. Technologies like 6th Sense are shared across regions, and innovations move quickly around the globe, from Europe to Asia and to North and South America. $3.6 billion innovation revenue in 2010 Whirlpool brand Duet...

  • Page 12
    When Whirlpool Corporation co-founder and visionary Lou Upton acquired the patent for a wringer washer in 1911, his machinist-uncle Emory Upton equipped the washer with an electric motor. Their efforts resulted in an entirely new type of washing machine and transformed a household chore that once ...

  • Page 13
    ... entire global organization to bring new innovations forward, from everyone, everywhere. At Whirlpool Corporation, our culture of innovation enables us to deliver real, sustainable value to families in ways never before seen in either the company or the home appliance industry. Just as Emory Upton...

  • Page 14
    Global Growth The Upton Machine Company (renamed The Nineteen Hundred Corporation in 1929 and then Whirlpool Corporation in 1950) was founded by Lou and Emory Upton in Benton Harbor, Michigan, to produce electric motor-driven wringer washers. With the financial aid of Lowell Bassford, the small ...

  • Page 15
    Whirlpool Corporation's family has grown to include other companies that - though separated by continents - all share the same entrepreneurial spirit and value system as the Upton Machine Company founders, ultimately creating a company of families for families.

  • Page 16
    ...Excerpt taken from a 1986 open letter signed by Jack Sparks, Former Chairman of the Board and Chief Executive Officer Global Appliance Leader Whirlpool Corporation's global footprint positions us well to grow our business around the world. In today's global marketplace, we remain committed to being...

  • Page 17
    ... part of our global consumer products company strategy. Our Gladiator GarageWorks storage solutions are reinventing the garage. Our Affresh products offer new solutions for the laundry room and the kitchen. Our water filtration systems run throughout the house, and our cooking grills form the hub...

  • Page 18
    ... for Whirlpool Corporation. As early as 1914, to sustain the business, the Upton Machine Company looked for revenue streams outside the core appliance business. From air rifles to camp kits and from manifold heaters to organs, critical business decisions were made to ensure the company's long-term...

  • Page 19
    Our products occupy the most valuable real estate in homes around the world, and we take that responsibility seriously. We make consumers' lives easier so they have more time to do the things they enjoy and to be with the ones they love. Gladiator GarageWorks storage solutions. 15

  • Page 20
    ... core, it's our people - their passion, commitment and integrity. Whirlpool Corporation began as a modest enterprise with just a few employees. At that time, everyone knew one another by name, worked in close proximity and had the single objective of building quality washing machines for the company...

  • Page 21
    At the heart of Whirlpool Corporation's success are employees who pour their energy, creativity and passion into improving home life for families around the world. Our history is one of aspirational entrepreneurs, visionary leaders and honest, hardworking, everyday people who care deeply for their ...

  • Page 22
    ... give consistent work to its employees as economic conditions will permit. "Accomplishment of the above should bring results beneficial to our stockholders." - Excerpt taken from the 1934 Letter to Stockholders signed by Louis C. Upton, Founder and Former President Whirlpool Corporation leaders in...

  • Page 23
    Instituto Consulado da Mulher® Cook for the Cure® Boys & Girls Clubs of America® Our Unique Sense of Responsibility Habitat for Humanity International build held in Macedonia. 18

  • Page 24
    ... International to provide funding, volunteerism or appliances to help Habitat families in every region around the world. We are proud of the results realized through the power of this type of partnership and teamwork. Community Spirit. As part of our culture, the people of Whirlpool Corporation...

  • Page 25
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  • Page 26
    For 100 years, Whirlpool Corporation's brands have been an integral part of daily life. Our brands are trusted. Our brands are preferred by consumers. Our brands are platforms for innovation. 21

  • Page 27
    ... the world. From a laundry pair with an LCD touch-screen interface in North America to a side-by-side refrigerator with fully-flush handles in Europe to a por table, frost-free refrigerator in Argentina and a three-door refrigerator in China, the Whirlpool brand offers products that address the...

  • Page 28
    ... the new four-door Ice2O easy-access refrigerator and the Gemini double-oven range. The Maytag brand's reach extends beyond just the kitchen and laundry room. The brand recently formalized a partnership with the Boys & Girls Clubs of America® with a $4.5 million commitment. The program, which will...

  • Page 29
    ... Pro Line Series. Its ranges, refrigerators, dishwashers and microwave hood combinations provide the look and feel of professional equipment. The brand also introduced the industry's first dual-fuel double-oven range featuring the industry's largest oven capacity. KitchenAid brand also enhanced its...

  • Page 30
    ...was acquired by Maytag Corporation in 1982. Acquired as part of the Maytag Corporation acquisition in 2006, the Jenn-Air brand now represents the super-premium segment of the Whirlpool Corporation brand portfolio. Jenn-Air brand transforms consumers' cooking spaces into luxury kitchens. Its products...

  • Page 31
    ... bottom-freezer refrigerator in 1957 and the countertop microwave oven in 1967. Product introductions such as these rocked the appliance market and cemented the brand's strength as a household name and a symbol of quality. Acquired by Raytheon Manufacturing Company in 1965 and purchased by Goodman...

  • Page 32
    ... the company to refrigerator production, forming the Brastemp brand. Etchenique's company would go on to form a partnership with Whirlpool Corporation in 1957 and become part of Whirlpool Corporation in 1997. Today, the Brastemp brand is consistently one of the most recognized appliance brands...

  • Page 33
    ... easier for families so their lives are more enjoyable. The brand translates consumers' needs into relevant products that are reliable and easy to use. Expanding further into adjacent businesses, in 2010, Consul brand introduced small, compact water purifiers that can be installed and maintained...

  • Page 34
    ... new appliances in 2010, including a new top-load washer and front-load laundry pair that use advanced sensor technology to continually monitor the wash-and-dry process and automatically adapt the cycle to save time, energy and water. The brand's advanced technology also helps keep food fresher...

  • Page 35
    ... to somehow organize their garage clutter. Armed with this consumer knowledge and seeing the garage as an untapped room within the home, Whirlpool Corporation launched the Gladiator GarageWorks brand in 2003. Built for the harsh environment of the garage, Gladiator GarageWorks has a product to fit...

  • Page 36
    ... op North America, Latin America, Europe, and Asia. Our customer base is characterized by large, sophisticated trade customers who have many choices and demand competitive products, services and prices. The charts below summarize the balance op net sales by reportable segment por 2010, 2009 and...

  • Page 37
    ... prom the production op certain energy eppicient appliances, com­ pared to $113 million in 2009. The increase op BEFIEX credits recognized in 2010 was the result op the expiration op a sales tax holiday declared in 2009 by the Brazilian government on certain appliances in our Latin America region...

  • Page 38
    ... with a product recall. • Latin America gross margin increased compared to 2009 pri­ marily due to $156 million higher BEFIEX credits recognized, cost reductions and improved productivity, partially oppset by unpavorable product price/mix. Latin America gross margin por 2009 decreased compared to...

  • Page 39
    ...Q UID IT Y Net earnings available to Whirlpool increased $291 million compared to 2009 to $619 million or $7.97 per diluted share. The increase was primarily due to cost reductions and improved productivity, $156 million higher BEFIEX credits recognized, higher energy tax credits and higher volumes...

  • Page 40
    ... activities in 2010 was $606 million, an increased outplow op $107 million compared to 2009. The increase in cash used in investing activities was primarily due to increased capital spending to support new products and innova­ tion, the purchase op a brand and lower proceeds prom the sale op assets...

  • Page 41
    ... in commodity prices would have resulted in an incremental gain or loss op approximately $50 million, respectively, related to these contracts. In January 2009, Standard & Poor's and Fitch Ratings lowered our senior unsecured debt rating prom "BBB" to "BBB­" and our short­term corporate credit and...

  • Page 42
    ...share price at the beginning op the measurement period. T O TA L RE T U RN T O S H A RE H O L D E RS (Includes reinvestment of dividends) Annual Return Percentage Years Ending Company/Index Whirlpool Corporation... 2006 2007 2008 2009 2010 WHI RL P O O L C O RP O RATI O N S&P 5 0 0 I ND E ...

  • Page 43
    ...op appiliated companies Net earnings Less: Net earnings available to noncontrolling interests Net earnings available to Whirlpool Per share of common stock Basic net earnings available to Whirlpool Diluted net earnings available to Whirlpool Dividends Weighted-average shares outstanding (in millions...

  • Page 44
    ... value, 250 million shares authorized, 106 million and 105 million shares issued in 2010 and 2009, 76 million and 75 million shares outstanding in 2010 and 2009 Additional paid­in capital Retained earnings Accumulated other comprehensive loss Treasury stock, 30 million shares in 2010 and 2009 Total...

  • Page 45
    ...) proceeds prom short­term borrowings Purchase op noncontrolling interest shares Proceeds prom borrowings op long­term debt Purchase op treasury stock Other Cash (used in) provided by pinancing activities Eppect op exchange rate changes on cash and equivalents (Decrease) increase in cash and...

  • Page 46
    ... all non­audit services provided by the independent registered public accounting pirm. Roy W. Templin Executive Vice President and Chiep Financial Oppicer February 14, 2011 Management's Report on Internal Control Over Financial Reporting The management op Whirlpool Corporation is responsible por...

  • Page 47
    ..., in accordance with the standards op the Public Company Accounting Oversight Board (United States), Whirlpool Corporation's internal control over pinancial reporting as op December 31, 2010, based on criteria established in Internal Control-Integrated Framework issued by the Committee op Sponsoring...

  • Page 48
    ... in accordance with the standards op the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perporm the audit to obtain reasonable assurance about whether eppective internal control over pinancial reporting was maintained in all material respects. Our...

  • Page 49
    ...Long­term debt Whirlpool stockholders' equity Per Share Data Basic net earnings prom continuing operations Diluted net earnings prom continuing operations Diluted net earnings Dividends Book value(3) Closing Stock Price-NYSE Key Ratios Operating propit margin Pre­tax margin(4) Net margin(5) Return...

  • Page 50
    ..., contact Computershare or visit its Direct Stock Purchase Plan website to enroll. Stock-Split and Dividend History March 1952: December 1954: May 1965: May 1972: December 1986: 2­por­1 stock exchange 100% stock dividend 2­por­1 3­por­1 2­por­1 Example: 100 shares op Whirlpool Common Stock...

  • Page 51
    ... North America Bracken Darrell Executive Vice President and President, Whirlpool Europe José A. Drummond Executive Vice President and President, Whirlpool S.A. Daniel F. Hopp Senior Vice President, Corporate Appairs and General Counsel David T. Szczupak Executive Vice President, Global Product...

  • Page 52
    Whirlpool Corporation and General Offices World Headquarters and North America Region 2000 N. M-63 Benton Harbor, MI 49022-2692 Telephone: 269-923-5000 Europe, Middle East and Africa Region Viale G. Borghi 27 21025 Comerio (VA), Italy Telephone: 39-0332-759-111 Latin America Region Av. das Naçõ...