Whirlpool 2001 Annual Report Download - page 18

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President’s Message16
During 2001, despite unanticipated economic turmoil and
industry uncertainties, our global operations delivered
solid operating performances.
Whirlpool’s global platform capabilities provided the
resources, processes and people to improve our core
financial performance, reinvest in our brands and execute
our strategies. In 2001, these capabilities allowed us to
reduce working capital as a percentage of sales by 4 points .
Over the last three years, we have applied these capabilities
to reduce selling, general and administrative costs by
$114 million and deliver an average of 3 percent total cost
productivity (net of inflation) improvements.
We have taken advantage of technology tools and robust
process controls to greatly enhance our global supply-chain
efficiency. We also are applying Internet-based tools to cut
complexity and the costs of doing business for Whirlpool
and its trade partners — which strengthens our distribution
network and relationships. These and other technological
improvements are part of Operational Excellence, Whirlpool’s
customized Six Sigma program to continuously increase
productivity.
Our brand groups introduced a record number of innovative
products and services during the year, and the response
from consumers has been very positive. The success of
these introductions enabled us to grow our market share in
virtually every part of the world.
In North America, our performance was at record levels.
Full-year revenues, unit sales, core operating profit, cash flow
and market share were record levels, and the best overall
results in the company’s 90-year history. New products sold
through the company’s value-added distribution network
created exceptional demand from consumers and trade
partners, which led to increased volumes and higher average
selling prices. We ended the year in the No. 1 position at
eight of the top 10 appliance retailers in the United States,
and we increased our share of the construction and home
remodeling market segments by more than 10 percent.
In Europe, we improved our performance following a difficult
second half in the prior year. We realized better pricing,
despite industry declines of approximately 2 percent from
2000. We also enhanced our mix of products and brands,
as demonstrated by a 10-percent brand share gain by our
Whirlpool brand. And we improved our margin performance
throughout the year by driving productivity and restructuring
savings, and by reducing our working capital as a result of
supply chain efficiencies.
President’s Message
To Our Shareholders