Whirlpool
Corporation Sues LG for Technology Patent Infringement
Whirlpool Corporation has announced that it has filed a patent infringement
suit against LG Electronics, Inc., and the South Korean company's U.S.
affiliate, LG Electronics USA, Inc. The suit, filed in the U.S. District
Court for the Western District of Michigan, maintains that several LG
clothes washers recently introduced into the U.S. infringe two patents
secured by Whirlpool in 1993 to protect innovative washing technology.
Whirlpool is asking the court to enjoin LG from infringing the company's
patents, to remove the infringing products from its U.S. product supply
chain and to pay unspecified compensation for damages that already have
occurred from the infringement.
"Whirlpool has invested heavily in developing innovative fabric care
wash technology that delivers meaningful benefits to our customers,"
said David L. Swift, Whirlpool's executive vice president for North America.
"As the North American leader in major home appliances, Whirlpool
will tirelessly and aggressively work to protect our assets from competitors
who choose to disregard U.S. patent law."
The two Whirlpool patents protect wash and rinse cycles in newer clothes
washers, which deliver sharply higher energy and water savings to customers.
The unique wash step provides a series of recirculating sprays of concentrated
wash liquid onto laundry loads, while the innovative rinse step performs
a tumble motion as recirculating rinse sprays remove wash liquids.
Over the years, Whirlpool has been an industry leader in developing innovative
laundry solutions that provide consumers with higher levels of energy
and water efficiency combined with improved cleaning and fabric care.
The company launched its Whirlpool® Resource Saver® wash system
in 1998 in many top-loading washing machines, which were the first top
loaders to earn the U.S. Department of Energy's ENERGY STAR® designation
for energy and water savings. Whirlpool continued to lead the way with
further laundry efficiency advances in the top-loading Whirlpool®
Calypso® wash motion clothes washer and the front-loading Whirlpool®
Duet® washer and dryer pair.
Whirlpool's legal action follows a separate suit filed by the company
against LG in June 2003 in the same U.S. Federal Court. In the previous
suit, Whirlpool alleges that the Korean manufacturer used the Whirlpool
registered trademark "Whisper Quiet" on some of its clothes
washers and dryers. The "Whisper Quiet" trademark appears on
the console of Whirlpool's KitchenAid brand clothes washers, dryers and
dishwashers.
Whirlpool Corporation is a manufacturer and marketer of major home appliances,
with annual sales of over $11 billion, 68,000 employees, and nearly 50
manufacturing and technology research centers around the globe. The company
markets Whirlpool, KitchenAid, Brastemp, Bauknecht, Consul and other major
brand names to consumers in more than 170 countries.
Ariston
and Hotpoint boost Merloni: Interim Pre-Tax Profits up 12%
Merloni Elettrodomestici has reported good growth in the first half of
2003, with sales up 26%, gross operating margin up 27% and profits before
tax up 12% compared to the first half of 2002.
'We have reached the objectives set for this first half thanks to admirable
commitment by the entire organization,' declared Vittorio Merloni, 'in
spite of a market situation characterized by strong pressure on prices
and the sterling's loss against the euro'.
The first six months saw the renewal of the Ariston brand image, along
with the launch of a whole range of new products that will reach the main
European markets during 2003.
The company completed the main stages of integration with Hotpoint, covering
a common platform for industrial procurement, information systems, technological
innovation and production. As of 1st June the company has been operating
in the UK under the new name of Merloni Elettrodomestici UK, based in
new headquarters in Peterborough.
Sales amounted to E1.396m, up 26% on the first half of 2002. The figure,
which includes the 100% consolidated turnover of Hotpoint, reflects the
devaluation of Sterling by around E16m, as calculated for the partial
consolidation area of 2002.
The gross operating margin was E161m, up 27% on the first half of 2002.
Profits before tax amounted to E72m, an improvement of 12% on the first
half of 2002. This result reflects an increase in financial charges, rising
to E12m against the E7m posted in the same period of 2002 and relating
to the acquisition of Hotpoint.
Net financial indebtedness at the end of the first half of 2003 stood
at E374m (against E330m at 30th June 2002), while the debt/equity ratio
was 0.83 (0.87 in the same period of 2002).
The second quarter of 2003 closed with sales at E693m, up 13% on the 2nd
quarter of 2002 with aprofits before tax of E36m (E39m in the 2nd quarter
of 2002).
The company created value added of E650m in 2002, up 34% on the E485 posted
in 2001.
Investments in safety continued to produce significant results. The number
of accidents, for instance, dropped 29% in 2002. Innovations geared to
environmental and social sustainability included appliances fitted with
silent running devices, controls in Braille and special control knobs
for the disabled.
Electrolux
signs agreement to divest shareholding in Vestfrost
Electrolux has signed an agreement to sell its shares in the Danish company
Vestfrost A/S to the Esbjerg Group in Denmark. The Esbjerg Group will
thereby increase its shareholding in Vestfrost from 50% to 100%.
Vestfrost manufactures and sells refrigerators, upright freezers and chest
freezers. In 2002, sales amounted to approx DKK 1,100m and the number
of employees was 1100.
Electrolux has owned 50% of the shares in Vestfrost since 1972. The divestment
is part of the strategy to focus on operations where the Group is the
majority owner.
The sale is expected to be completed as of August 15, 2003 and will not
have any significant impact on the Group’s income and financial position.
The Electrolux Group is the world’s largest producer of powered appliances
for kitchen, cleaning and outdoor use, such as refrigerators, washing
machines, cookers, vacuum cleaners, chainsaws, lawn mowers, and garden
tractors. Every year, customers in more than 150 countries buy more than
55 million Electrolux Group products for both consumer and professional
use sold under famous brands such as AEG, Electrolux, Zanussi, Frigidaire,
Eureka, Flymo and Husqvarna. In 2002, Electrolux had sales of SEK 133.2
billion and 82,000 employees.
Fisher
& Paykel Appliances Enter Into Global Alliance with Whirlpool Corporation
Whirlpool Corporation and Fisher & Paykel Appliances have announced
the formation of a global strategic alliance involving the two major home
appliance manufacturers.
The scope of the alliance involves a wide range of cooperative activities
between the two companies. Initially, the alliance will focus on
global sourcing of major home appliances, as well as the sharing and co-development
of product technology.
"This global alliance will provide significant growth opportunities
for both Whirlpool and Fisher & Paykel," said Jeff Fettig, Whirlpool's
president and chief operating officer. "The relationship gives
each of us access to a broader set of innovative technologies and products
that we can bring to customers in markets worldwide."
"Whirlpool Corporation provides us greater access to important global
markets through its extensive global distribution system," added
John Bongard, managing director of Fisher & Paykel Appliances.
"Whirlpool also offers us the benefits of scale and the strength
of its global technology development organisation. By combining
our talents we can develop commercial and product ideas that will benefit
both companies and add value for all our stakeholders."
Fisher & Paykel Appliances is a New Zealand-based international company
that manufactures and markets major appliances for laundry, cooking, refrigeration
and dishwashing. The company's primary markets are in New Zealand
and Australia. The company also exports home appliances around the world,
with a focus on Europe and the United States.
Blum
consolidates its position on global markets
At the close of the business year on 6 June 2003, Julius Blum GmbH attained
a group turnover of 590.6 million euros (last year’s result was 555.4
million euros). This increase in turnover of 6.3% (last year’s increase
amounted to 9%) . Thanks to its consistent orientation towards important
world markets in the field of industry and trade, the company still, however,
exported 96% of its products. Blum products are regularly delivered to
more than 70 countries worldwide.
3,466 employees world-wide (3,209 in the previous year) contributed to
the overall result of the family-owned enterprise. Of these employees,
193 were trainees (Blum had 164 apprentices in the previous year). Furthermore,
122 new jobs were created in Vorarlberg. The per capita output (turnover
per employee) amounted to 170,400 euros which clearly demonstrates the
high degree of identification and outstanding qualifications of all Blum
personnel. The Group’s overall investments amounted to 82.5 million
euros in the 2002/2003 business year (investments totalled 64.4 million
euros in the previous year).
In stark contrast to previous years, markets developed very differently
in Europe which accounts for 49% of Blum’s overall turnover. Germany,
which is one of Blum’s most important markets for products and services,
has not yet recovered from the slump, whereas other countries registered
quite positive developments. In the North American region, the development
in local currency was positive. As far as South America is concerned,
ups and downs were registered in individual countries. Markets in Asia
also fared differently. The uncertainty caused by SARS had a particularly
strong impact in the last quarter of the business year.
Blum will use DYNAMIC SPACE to help its customers to market kitchens which
have been designed optimally for end users. It is a matter of offering
kitchens that have a good quality of motion and space usage – kitchens
which will facilitate the work of buyers for many years to come in the
largest workplace in the world.
BLUMOTION – the innovative core feature that closes kitchen drawers,
pull-outs and doors gently and quietly – plays an important role
in this context as do numerous other product innovations for kitchens,
other living areas and fit-outs.
The company has continued to make investments in plant facilities in order
to promote sales world-wide. Several large-scale projects have been completed
at plants in Vorarlberg. The 10th building phase was finished at Bregenz
and a large extension added to the fully automated high bay warehouse.
In addition, the extension to the Engineering Centre/Works 3 was inaugurated
in Hoechst. Currently, a stamping centre is being built in Fussach which
will be put into operation step by step from August 2003. Construction
work has also been started on a fully automated warehouse for finished
parts and assembly at the company’s central plant in Hoechst. As
regards production facilities themselves, the management has approved
numerous investments in additional facilities for the CLIP top furniture
hinge and BLUMOTION. Plangger Coatings, which Blum took over as of 1 January
2003, will be integrated into the Blum Group according to plan.
Investments in additional markets are designed to further increase the
efficiency of important sales locations. A new office and warehouse were,
for example, opened in England in 2003, and new buildings and extensions
are being built in Poland and Rumania. Construction work will also start
on a new office building and adjacent showroom at Blum Germany in Herford
in August.
Maytag's
Second Quarter Sales and Earnings on Target
Maytag Corporation announced its second quarter sales and earnings were
down versus a year ago, but in line with management and Wall Street expectations.
Maytag reported second quarter consolidated sales of $1.163 billion and
operating income of $51.4 million. Reported net income was $25.2 million,
or 32 cents per share. Included in these results were after-tax restructuring
charges of $18.8 million, or 24 cents per share, for the closing of the
company's manufacturing plant in Galesburg, Ill., and a salaried work
force reduction implemented during the second quarter.
A year ago, second quarter consolidated sales were $1.193 billion and
operating income was $121.8 million. Reported net income for the period
was $68 million, or 86 cents per share.
"Maytag achieved a respectable performance despite challenging second-quarter
market conditions," said Ralph Hake, Maytag Chairman and CEO. "While
major appliance industry unit sales were up about 1 percent in the quarter,
the floor care industry was down nearly 9 percent in the April and May
timeframe. We worked hard to reduce our costs, and those efforts should
continue to pay off in the second half as we benefit from our restructuring
savings, steel cost reductions and multiple product launches."
During the second quarter, floor care products experienced declines in
volume and pricing as floor care industry sales continued to slump. As
previously discussed in the first quarter, corporate-wide cost increases
for steel, pension and retiree medical negatively impacted profitability
in the quarter.
In Maytag's commercial segment, vending products continued to perform
well even in an industry where sales are declining.
Hake said Maytag has completed the majority of the corporate-wide restructuring
plan that was announced in April, adding that he expects aggressive cost
reductions and a host of innovative new product introductions to be on
track to support second-half performance.
"We plan to bring new products to market in virtually all of our
platforms with improved consumer benefits, costs and quality improvements,"
Hake added. "The products -- from an oven with the largest capacity
on the market to a top-load version of the Neptune washer -- are expected
to contribute to improved volumes and margins."
In addition, Hake noted that Maytag should be on track to reduce debt
and fund the company's pension plan consistent with the previously announced
goals for the year. "At this point, we're expecting full-year 2003
reported earnings to be in the range of $1.80 to $1.90 per share, which
includes pretax restructuring charges of approximately $60 million, or
50 cents per share, for the Galesburg closing and salaried workforce reduction."
Maytag's home appliances segment, which includes major appliances and
floor care products, had second quarter 2003 sales of $1.086 billion,
down 2.7 percent from $1.116 billion in the second quarter of 2002. Operating
income for the segment was $57.3 million, compared with $127.8 million
a year earlier. Current year operating income includes $26.7 million Galesburg
closing and work force reduction-related charges.
The corporation's commercial appliances segment, composed of Dixie-Narco
vending equipment and Jade Products, had second quarter sales of $76.7
million, basically flat compared to $76.8 million in the second quarter
of 2002. The segment reported operating income of $7.7 million, versus
$7.6 million in last year's second quarter.
American
Standard Reports Record Second-Quarter Sales
American Standard Companies Inc. has announced record second-quarter earnings
of $1.83 per diluted share, up 7 percent from second quarter last year.
These earnings are consistent with the company’s April estimate for
the quarter of $1.78-$1.88. Sales were a record $2.265 billion, up 9 percent
from a year ago. Net income rose to $133.9 million, up 6 percent.
“We once again delivered solid results despite a tough economy,”
said Fred Poses, chairman and chief executive officer. “All three
business segments continued to outperform their markets, even as they
faced challenging conditions, including the third year of declines in
the North American commercial air conditioning equipment market, unseasonably
cool weather in certain parts of the U.S., lower truck and bus production
in Europe and North America, and the temporary impact of SARS.
“Our investments in new products and marketing programs are strengthening
our competitive positions, while our productivity programs and additional
cost-reduction actions continue to produce significant savings needed
in the current price-sensitive commercial and consumer markets. All our
marketing and productivity efforts have built a strong foundation for
continued short-term performance and long-term growth.
“With today’s lack of economic vitality, we are narrowing our
earnings range for the year to $5.40-$5.50 per diluted share, an increase
of 7-9 percent over 2002. With an improvement in the economy, we’d
exceed the new range. Last quarter, we said we needed an improvement in
economic conditions to reach the high end of our 2003 earnings estimate
of $5.40-$5.80 per diluted share. For the third quarter, we anticipate
earnings in the range of $1.60-$1.68,” said Poses.
“We’re well on our way to achieving our cash flow targets, which
are net cash provided by operating activities of $650-$690 million and
free cash flow of $410-$450 million. In addition, we expect to reduce
debt to our previously announced target of $1.7 billion by year-end,”
he said.
In the second quarter, net cash provided by operating activities was $205.3
million. Free cash flow was $164.9 million, $14.6 million better than
a year ago. Segment income was $263.6 million, flat with the prior year.
Total operating margin for the quarter was 11.6 percent, down 1.1 percentage
points. The company reduced interest expense by $2.5 million because of
lower average debt. Debt now stands at $2 billion, down from $2.6 billion
at the end of 1999. The tax rate was 31 percent, down from 33.3 percent
a year ago.
BATH AND KITCHEN sales increased 11 percent to $568.8 million. Segment
income was $35.7 million, down 17 percent compared with last year. Unfavorable
product mix, spending on new products and marketing programs, expenses
associated with the previously announced closure of a plant in Italy and
price pressure caused the segment income decline, which was lessened by
productivity initiatives and the resolution of previously reported isolated
operating issues. Operating margin was 6.3 percent, down 2.1 percentage
points.
“During the quarter, we resolved Bath and Kitchen’s operating
issues, and we absorbed the expenses of a plant closing,” said Poses.
“We’re now working hard to improve margins in this business
for both the short- and long-term. Our investments in new products and
marketing are enhancing sales growth and brand position and, along with
our productivity and cost-reduction actions, will help produce a better
product mix and operating margin for the future.”
Bath and Kitchen unveiled new designer lines and “total bathroom”
suites at major trade shows in Spain and the U.K., started brand repositioning
efforts in France with a product road show and press event, and rolled
out a super-shower product line to showrooms throughout Greece. In China,
Bath and Kitchen launched 130 new models, which expanded the lifestyle
product line named after various U.S. cities.
Is
Talking To Your Washing Machine The First Sign Of Madness?
Not with Electrolux voice-controlled appliances A new prototype voice-controlled
washing machine was recently unveiled by Electrolux engineers. The new
appliance will allow people to operate the washing controls through vocal
commands and is a response to consumer demand to make household appliances
even easier and more convenient to use.
Unlike voice command devices already in existence, the voice-controlled
washing machines from Electrolux will be able to respond to multiple voices,
regardless of accents or dialect, making it suitable for all households.
These ‘speaker-independent’ appliances can also respond to several
commands at once, separating vocal messages and providing appropriate
feedback, accurately imitating a natural conversation. They will understand
up to 50 different commands and retain up to two minutes of vocal messages.
Additional re-assurance is also provided by the appliance when it repeats
the commands and requests confirmation
“Voice command appliances are an important element in the Electrolux
drive to provide our consumers with easier more enjoyable lives,”
says Claudio Cenedese, Manager Primary Electronics, Core Technologies
and Innovation at Electrolux.
“By removing the need to use buttons, dials and switches consumers
can easily operate the appliances with their hands full or while taking
care of other tasks in the room, something particularly important for
mothers who often perform several household tasks at once while holding
the baby!” _
The appliance is currently undergoing extensive testing. It is expected
that the technology will be further integrated into other appliances,
including ovens, dishwashers and driers.
Expansion
at Waterline for new product lines
National distributor Waterline has announced major expansion of stockholding
capacity to accommodate new additions to its portfolio of top kitchen
brands. The company has acquired an additional 45,000 sq ft at the Newport
Pagnell head office site to stock cookers from new suppliers Rangemaster,
the complete offer from Candy – again, a new brand for Waterline
- plus the entire range of Hotpoint appliances.
As the largest stockholder of Rangemaster in the UK, Waterline offers
‘best availability’ of the country’s biggest-selling brand
of range-style cookers. There is a wide choice of traditional and contemporary
models, including the new minimalist style stainless steel Rangemaster
Elite. Design co-ordinated cooker hoods and splashbacks complete the offer,
which is supported by free site delivery via the Waterline transport fleet.
HPS
taps into success with Deva
Southern-based heating & plumbing merchants, and Deva customer, HPS,
is currently celebrating the completion of its first year of business,
having enjoyed outstanding growth and sales throughout the south east,
thanks to the help and support of brassware specialists, Deva.
Almost doubling its projected Deva brassware turnover to £100,000
and opening eight branches throughout 2002, HPS was delighted when Deva
made a presentation to Managing Director, Ron Walker and Sales Director,
Peter Wilson, during EXPO, acknowledging the company for its outstanding
performance and commitment to the Deva brand.
Ron Walker commented: “HPS has an excellent relationship with Deva
and we have witnessed record sales of the whole Deva brassware portfolio.
Not only does Deva enable us to stock a most comprehensive range of the
latest styles on the brassware market today, but we receive an exceptional
service, excellent trade terms, one-to-one marketing advice and effective
merchandising equipment.”
HPS say awareness of the Deva brand has risen substantially in its showroom
catchment areas over the past year and customers are continuously demanding
a greater choice and more unique styles. New Deva ranges, such as the
Concepts Collection – a design-led range launched to satisfy the
growing demand for high quality, stylish brassware – are proving
successful as more end-users seek out contemporary looks for innovative
interiors.
Deva’s Managing Director, Tony O’Neill, said: “We are committed
to supporting our stockists and share with them the same goal of aiming
to grow the Deva brand, communicate its benefits to end-users and maximise
sales.”
President
changes at Bathroom Manufacturers Association AGM
The Bathroom Manufacturers Association (BMA) held their third AGM at Federation
House, Stoke on Trent at the end of June. Along with the regular business
of the Association was also the election of a new President for the next
two years.
The new President is Martyn Denny of Aqualisa, and the new Vice President
for the Association is Ted Goold of Masco.
Outgoing President, Roger Cooper of American Standard, expressed delight
that his period of office had seen a complete reformation of the Association
from the very difficult situation it faced two years ago.
“We now have a strong and vibrant membership of 30 companies,”
said Cooper, “and perhaps more importantly those members represent
the vast majority of the bathroom manufacturing industry in the UK.”
The membership together has around £1 billion turnover and covers
all aspects of bathroom manufacture.
“It gives us a very strong voice when it comes to representing the
interests of our industry on any UK or European regulatory bodies, something
which is vitally important to all channels of our industry.”
Today the BMA has a strong financial foundation and provides a string
of support services to its members, from technical support that helps
the members keep abreast of technical changes that are passed, proposed
or recommended.
From a business point of view the Trade Marks Register and the Monthly
Turnover Statistics are very useful in helping the members’ business
leaders to make the decisions that direct their companies.
“I am delighted to pass the presidency on to Martyn Denny, who has
great experience in the industry and will, I am sure, take the BMA to
further success.” Cooper concluded.
During his time as BMA vice president Martyn Denny has supported the business
imperatives and also launched a series of Consumer and Retailer-friendly
initiatives aimed at simplifying the process of purchasing a bathroom.
This initiative takes the form of a series of Fact Sheets with purchasing
advice that leads consumers through the factors they need to consider
when buying a new bathroom. These Fact Sheets are now on the BMA web site
http://www.bathroom-association.org
First Showroom in the Algarve for Nolte
Nolte’s
contract division continues to expand both at home and overseas. The latest
development in this expansion is in the Algarve where they have secured
exclusivity with well established Ishtig – a company supplying a
one stop shop for both developers and private clients. The opening of
Ishtig’s new showroom is a showpiece for the Nolte offering. The
grand launch took place on the 18th July with more than 100 invited guests
who included architects developers and private clients.
Abacon
supplying advanced Löwer technology
UK supplier of finishing and abrasive solutions – Abacon of Sheffield
– has teamed up with two world leaders in this field: Löwer
machinery of Germany and their existing principal SlipCon of Denmark to
offer an entirely new quality level of finishing options.
The new range of finishing and abrasive application machinery from Löwer
uses the versatile SlipCon brush-backed abrasive strip system with its
replaceable hub sections to both pre-sand and denib a wide variety of
painted and lacquered components for the furniture, joinery, window and
conservatory industries.
The combination of the Löwer and SlipCon systems are already allowing
Abacon customers to realise enormous boosts in quality, savings in labour
and time and saving in coating materials of up to 50 per cent
The new Löwer brochure is available on application from Abacon at
(tel): 0114 2562266 or (fax): 0114 2562268.