Whirlpool 2001 Annual Report Download - page 15

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Whirlpool Corporation 2001 Annual Report 13
Whirlpool has been executing a dramatically different
strategy. Instead of focusing on competitors, we have been
listening to our customers and building loyalty through the
introduction of relevant and innovative solutions — new
ideas geared to the needs of consumer lifestyles. Our people
are focusing their attention on innovations that deliver real
value to both consumers and shareholders — while making it
difficult for competitors to copy. And our global organization
is providing the resources and processes to help create
innovation never before seen in either our company or our
industry. A record number of these products were introduced
in 2001, and they are paying dividends in terms of growth
and market share, as well as higher prices and margins
across the business.
As Whirlpool continues on this course, we ultimately want
to create unmatched loyalty for our brands by building a
lifetime relationship with our customers. To accomplish
this, we will continue to introduce clearly differentiated
products, services and solutions that customers will want
long after their initial purchase experience with the brand.
GLOBAL PLATFORM CAPABILITIES
Aligning our global resources, brands and business processes
to support this strategy has been an ongoing effort.
Whirlpool has a unique global business platform and
structure from which to grow and drive efficiencies while
we continue to build upon our brand leadership positions.
Our restructuring effort has led to a more cost-effective
global structure. For the year, restructuring activities
resulted in charges of $212 million, before tax, and generated
savings of about $47 million. These restructuring initiatives
are expected to produce savings of approximately $135
million annually.
When completed by the end of 2002, the company’s global
restructuring effort is expected to produce annualized
savings of between $225 million and $250 million.
These cost savings — which have been driven by a reduction
in working capital, productivity improvements and benefits
from restructuring initiatives —assure that our platform
competitiveness can be leveraged into earnings expansion
as we continue to grow our global business.