Whirlpool 2006 Annual Report Download - page 23

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LATIN AMERICA OPERATING REVIEW
Whirlpool Latin America reported regional revenue of $2.4
billion in 2006, up 24 percent from the previous year. During
the year, we strengthened our leadership position in the
region, particularly in Brazil, Argentina and Chile.
Consumer loyalty to both the Brastemp and Consul brands
has increased consistently over the past four years. A
recent study by a leading Brazilian newspaper found that
Brastemp has the highest brand recognition among high-
end consumers across all industries. Consul has been top-
of-mind with consumers in the refrigeration category for 16
consecutive years and is the appliance brand with the highest
penetration in Brazil.
Innovation continues to sustain and drive our brands’
competitiveness in the region. In 2006, we launched nearly
one new product per week, delivering innovative products to
a broad segment of consumers. Some examples include the
expansion of the 6th Sense line of products, a refrigerator
with a pure-water dispenser, a line of gas-on-glass cooktops
in assorted colors to serve middle-end consumers and the
Brastemp Gourmand line.
Comprehensive cost-management processes delivered
strong value for the region. Our lean manufacturing program
has driven double-digit annual productivity gains through
significant improvements in product quality, cost and delivery
and strengthened relationships with suppliers. The opening
of a new technology center in Rio Claro, Brazil, is intended to
enhance Whirlpool Corporation’s worldwide competitiveness
by capitalizing on global platforms and maximizing
engineering resources.
We also strengthened and broadened relationships with our
trade customers to create a more collaborative environment
from key accounts to small customers. For example, we
implemented joint business plans and knowledge exchange
programs, such as six sigma training, with some of our trade
customers. In addition, we are helping our trade customers
understand the value of social responsibility. Our three-year
sponsorship of the Retail Social Responsibility Program
organized by the Getúlio Vargas Foundation, a leading
Brazilian business school, helps trade customers understand
how to differentiate themselves in the marketplace by being
good corporate citizens.
Finally, our Brazilian-based compressor operation, Embraco,
maintained its global market and technological leadership
positions. We opened a new facility in China, with a new
global product platform that doubles the production capacity
of our existing facilities. In 2006, Embraco received the
Foreign Trade Highlight Award and was recognized by the
Brazilian Ministry of Development, Industry and Foreign
Trade for its social responsibility efforts in developing a new
carbon-dioxide compressor, which significantly reduces power
consumption and uses carbon gas as a natural refrigerant.
OUTLOOK: In 2007, Whirlpool Latin America will continue to
build strength in the key countries in the region. We anticipate
continued sales growth based on increased demand, strong
brands and innovative product launches. Leveraging our cost
and quality position, these activities will contribute to another
year of improved profitability.
Worldwide Operations
Brastemp Cooktops
The Brastemp brand launched
new cooktops in emotionally
appealing colors, such as black,
blue, green and red.
Brastemp Gourmand Line
Designed for the amateur gourmet,
the line includes a refrigerator
with a wine rack, and a 40-bottle
wine cooler with shock absorbers
and a range with an electric
multifunctional oven.
Paulo F.M.O. Periquito
Executive Vice President
and President
Whirlpool Latin America