Whirlpool 2006 Annual Report Download - page 21

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NORTH AMERICA OPERATING REVIEW
Whirlpool North America reported revenues of $12.0 billion
in 2006, up 34 percent from 2005, while operating in an
environment of rising raw material costs and decreased U.S.
appliance industry demand in the second half of the year. We
achieved record sales in Mexico, one of the world’s fastest
growing markets, and strong sales in Canada. And, we are well
on our way to fully integrating the Maytag business following a
successful acquisition that created efficiencies and growth
opportunities.
We continue to enhance our North American operating platform.
In the United States, we consolidated laundry operations to
improve efficiencies and productivity, and we expanded our
manufacturing capacity for the growing bottom-freezer
refrigeration segment. In Mexico, we completed new front-load
clothes-washer and side-by-side refrigerator facilities, both of
which have improved production capabilities that will help solidify
our leadership position in the North American business.
During the year, we also improved our ability to better and more
quickly make products available to our trade customers as we
began to implement our new distribution strategy. This will
enhance our already strong relationships with our trade
customers, which were acknowledged this year with top
supplier awards by three of our largest trade customers.
In 2006, we continued our cadence of innovation. In addition
to a record number of new products, more than 60 percent of all
products sold in North America in 2006 were introduced new to
the marketplace. The Whirlpool brand completed the largest new
product launch in our company’s history with the introduction
of an entirely new line of laundry products. In refrigeration,
we launched the industry’s first French door bottom-freezer
refrigerators with an ice and water dispenser on the door and
42-inch built-in French door bottom-freezer refrigerator.
As a result of the Maytag acquisition, we now have an expanded
portfolio of powerful brands that can reach any consumer
segment. All of our major U.S. brands are among Home
Furnishing News (HFN) magazine’s top 100 preferred home
furnishing brands, with three — KitchenAid, Whirlpool and
Maytag brands — in the top 12. Our innovation pipeline will
enable us to continually differentiate our brands to meet ever-
changing consumer needs.
OUTLOOK: In 2007, we expect to increase sales in North
America, although we anticipate that the industry will be down
2 to 3 percent for the year. We look forward to further revitalizing
the Maytag brand and re-establishing the heritage of durability
and dependability for which it is known. And lastly, Whirlpool
North America expects to continue to deliver more innovative
products and services to continually meet the needs of North
American consumers.
Worldwide Operations
Maytag Ice2O Refrigerator
The first French door bottom-freezer
refrigerator with ice and water on
the door.
KitchenAid Architect Series II
A new generation of KitchenAid’s
premium, flagship appliance line
with enhancements inspired by
cooks, culinary professionals and
design experts.
W. Timothy Yaggi
Executive Vice President
Market Operations
Whirlpool North America