Whirlpool 2012 Annual Report Download - page 6

During the year, we successfully implemented cost-based
price increases and drove a favorable mix of products in
the marketplace. The restructuring actions we announced
in 2011 remain on track to deliver $400 million in total
program fixed-cost savings by the end of 2013. Our legacy
legal liabilities are now largely behind us, and our strong
underlying cash generation resulted in a $1.2 billion cash
balance at the end of the year. The cash generation,
combined with promising trends in U.S. housing and
growth opportunities in emerging markets, created
positive momentum going into 2013.
INNOVATION, GROWTH AND LEADERSHIP
The company continued to be recognized for its product
leadership in 2012, receiving top ratings from leading
consumer product evaluation groups. We will accelerate
our actions in 2013, with higher investments in product
development, technology and marketing in every region
and for every product category. These investments begin
with innovation that meets consumers’ needs, and then
focuses everything we do to produce iconic, winning
brands and products that consumers want in their homes.
We know that we can best compete by focusing on
introducing new and innovative products, building strong
brands, continuing to expand globally, increasing our
margins and improving our cost structure. Our growth
opportunities include expansion into emerging markets in
Latin America, the Middle East and Asia. In Latin America,
for example, our business outside the Brazilian market is
producing record sales and operating profit. To capitalize
on this growth, we accelerated the launch of
Whirlpool
brand kitchen collections in 2012, and we will introduce
a strong cadence of new products throughout our Latin
America Region in 2013.
We are also continuing investments in higher-margin, faster-
growing adjacent businesses, such as water filtration and
small appliances. In 2012, we introduced new countertop
appliances and accessories in Latin America, Europe and
the United States, with additional launches targeted for
2013. At the same time, we maintained investments in our
core appliance business to push the innovation that is
fundamental to our growth. For example, in 2012 we
introduced the
Whirlpool brand Ice Collection, appliance
suites with advanced innovation and design elements that
were created based on the ways consumers intuitively use
their appliances and expect them to fit in easily with their
busy lifestyles.
These investments will position us well to succeed on a
level competitive playing field that rewards investments
in innovation, employees and manufacturing. As we begin
2013, we have appropriately set the bar for the future by
promoting a fair trade environment in the United States,
with the U.S. government voting to impose trade remedies
on imports of unlawfully traded washers from South
Korea and Mexico. This decision is a great victory for
the U.S. appliance industry, and it is an important stride
toward enforcing laws that enable a balanced competitive
marketplace for manufacturers, their employees and
consumers.
REVENUE
$ IN BILLIONS
2011 2012
ONGOING BUSINESS OPERATIONS
DILUTED EARNINGS PER SHARE*
2011 2012
$18.1
$18.7
$2.05
$7.05
*Non-GAAP measure; see page 29 for reconciliation.
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