Whirlpool 2012 Annual Report Download - page 7

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PRIORITIES FOR SUSTAINABLE SUCCESS
We will continue to deliver the highest levels of performance
execution and build on the momentum of 2012. Our 2013
operating priorities of Winning Products | Winning
Performance | Winning People will be crucial to our
success and will support the achievement of our long-
term growth strategy through:
• Appliance ownership growth in new and emerging
markets
• Increased investments in our consumer-relevant
product innovations
• Growth in our higher-margin adjacent businesses
• Continued cost- and capacity-reduction initiatives
• Advancing our global product leadership
Our ability to move our business forward with focus,
consistency, discipline and speed will strengthen our
industry leadership this year and in the years to come.
We are encouraged by positive global trends that will
allow us to gain better traction from our actions. We see
structural demand growth returning in the U.S., our
largest market, driven by improving housing starts, a
modest return in discretionary spending and accelerated
appliance replacement, based on typical usage cycles.
Growth opportunities in emerging markets are also
expanding, with low appliance penetration levels in key
regions and strong underlying fundamentals. Our target
of 8 percent operating margins by 2014 is well within our
reach, as we further improve the mix of innovative new
products, broaden our higher-margin adjacent businesses,
continue executing our cost- and capacity-reduction
programs and maintain cost productivity.
In 2013, we will continue to make progress on our roadmap
for growth with great brands that bring leading consumer-
relevant innovation into consumers’ homes through
outstanding products. This map is a proven course for our
sustained success, framing the positive performance we
expect and creating long-term value for our shareholders.
At Whirlpool, we have only seen the beginning of our
return to value-creating results. We believe that the best
is yet to come as we work together, evolving into a leading
global branded consumer-products company.
Sincerely,
Jeff M. Fettig
Chairman of the Board and Chief Executive Officer
ONGOING BUSINESS OPERATIONS
CASH FLOW*
$ IN BILLIONS
2011 2012
DEBT/TOTAL CAPITAL**
2011 2012
$0.3
$0.9
36.8% 36.0%
**Total debt divided by total debt and total stockholders’ equity.
*Non-GAAP measure; see page 29 for reconciliation.
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