100 years
Whirlpool Corporation achieved improved results in 2010. Delivering on our operating priorities for the year, we reduced costs, performed well in the marketplace and continued to provide consumer-relevant innovations. We generated solid free cash flow, improved our operating margins and strengthened our financial position for the year — all indicators that our brand-value creation strategy is working.
As we enter 2011, our 100th year in business, we celebrate a century of innovations that have helped create the modern household. The philosophies set by the founders of this company — Lou and Emory Upton and Lowell Bassford — 100 years ago remain the foundation for Whirlpool Corporation today. Our founders were ahead of their time in product ingenuity, quality consciousness, consumer insights and satisfaction, and concern for the well-being of employees and society overall.
For 100 years, providing products that meet specific consumer needs and doing business with both integrity and character have been our hallmarks. Through the Great Depression, two World Wars, and the rapid economic changes and challenges of more recent years, those ideals have guided our growth from a small washing machine company to the global leader in major home appliances. These principles will guide us into our next century of opportunity as we build on our strong heritage and values to generate growth and create long-term value for our shareholders.
Jeff M. Fettig (with gavel) and members of Whirlpool Corporation’s leadership team ring The NYSE Euronext Closing Bell® on November 11, 2010, to kick off Whirlpool Corporation’s yearlong 100th Anniversary Celebration.
From left to right: Blair A. Clark, David T. Szczupak, David A. Binkley, Marc Bitzer, Roy W. Templin, D. Jeffrey Noel, Jeff M. Fettig, Gregory A. Fritz, Michael A. Todman, José A. Drummond, Daniel F. Hopp, Nancy A. Tennant.
Chairman of the Board and
Chief Executive Officer
Chairman’s Letter
2010 Fiscal Results
We saw a return to growth in 2010 with our revenues growing 7 percent to $18.4 billion. Net earnings per share were $7.97 per diluted share compared to $4.34 per diluted share reported for 2009. Cash flow from continuing operations reached $1.1 billion, and we reduced total debt levels by approximately $400 million. In addition, we paid $132 million in dividends while maintaining a $1.4 billion cash balance. Overall, we made strong progress toward our value creation objectives.
Strategy Drives Performance
During the year, we saw improvements in the marketplace despite global pricing pressures and increasing material costs. Our international businesses performed well, led by our Latin America and Asia regions. Our North America region saw industry growth for the first time in four years. We achieved record branded share levels during the year, and we remain confident in the opportunities that exist in the North America market. As evidence, in 2010 we broke ground on a new state-of-the-art cooking facility in Tennessee, part of our four-year investment of $1 billion in our U.S. operating footprint.
We remain committed to delivering all elements of our brand-value creation strategy — focusing on consumer-relevant innovation, providing the industry’s best service to our trade customers and end consumers, and driving lower costs and higher product quality across our global operations. We know that our strong brands, fueled by innovation, enable us to attract and retain loyal customers for life. And it is through these trusted brands that we provide strong value to our consumers.
Our ongoing innovation investments resulted in one of the most successful years of bringing new products to the marketplace. We launched products in every major category around the world during the year. These global product launches were recognized externally for sustainability, design and innovation. We ranked fifth on Fast Company’s 2010 list of the World’s Most Innovative Companies in the consumer products category. We also were recognized in 2010 for our continued industry leadership and unique sense of responsibility. Here are just a few examples of the recognition we received during the year:
- Whirlpool Corporation was named one of the 100 Most Trustworthy Companies in America by Forbes and Audit Integrity.
- Whirlpool Corporation was named one of the Top 25 Most Respected U.S. Companies for the third consecutive year by Forbes and the Reputation Institute.
- Whirlpool Corporation was recognized with the 2010 ENERGY STAR® Sustained Excellence award by the U.S. Environmental Protection Agency. This is the company’s 11th ENERGY STAR® award and fifth consecutive Sustained Excellence win.
- Whirlpool Corporation was recognized as one of the top 125 U.S. companies in Newsweek’s second annual Green Rankings.
2011 Operating Priorities
We have been through challenging times in our 100-year history, and the last few years were some of the most difficult. A volatile marketplace is the new normal and, as a result, our operating priorities remain unchanged from the previous year. We will continue to concentrate on introducing higher-margin innovations, realizing significant cost productivity, and achieving profitable growth driven by some recovery in demand in the developed economies and by continued strong growth in many emerging markets. These efforts, combined with our commitment to create value by building strong brands fueled by innovative product offerings, will supply opportunities for growth in 2011 and beyond.
A Century of Achievement; The Next Century of Opportunity
Whirlpool Corporation is a company with a remarkable history and an even more exciting future. In the pages that follow, you will discover our proud heritage and the ample opportunities we have to profitably grow the business as an ethical and responsible global citizen. These opportunities will come through investment in consumer-relevant innovations; appliance growth in new and emerging markets; expansion into higher-margin, faster-growing adjacent businesses; and advancement of our global brand portfolio.
In our 100th year, I want to thank you, our shareholders, for your continued confidence and support. I couldn’t be prouder to be associated with this organization. Today, we have a strong foundation and more opportunities to create value for shareholders than ever before.
I also want to recognize all employees — yesterday and today — for their commitment to making this company great. Throughout our history, our successes have come because of our global employees who have come together around shared values and a common commitment to improve the lives of people — one home, one family at a time.
Sincerely,
Jeff M. Fettig
Chairman of the Board and Chief Executive Officer