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Previous: WELLS FARGO & CO, 8-K, 1996-07-16 |
Next: ZALE CORP, 8-K, 1996-07-16 |
<PAGE>
CONFORMED COPY
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 16, 1996
WHIRLPOOL CORPORATION
-----------------------
(Exact name of registrant as specified in its charter)
Delaware 1-3932 38-1490038
----------------------------- --------------- -------------------
(State or other jurisdiction (Commision File (I.R.S. Employer
of incorporation) number) Identification No.)
2000 M63 North, Benton Harbor, Michigan 49022-2692
----------------------------------------------------------------------
(Address of principal executive officers) (Zip Code)
(616)-923-5000
--------------
Registrant's telephone number, including area code
<PAGE>
Item 5. Other Events
------------
On July 16, 1996, the registrant reported second quarter and first half
earnings for 1996. The Company reported second quarter net earnings of $53
million or 70 cents per share on net revenues of $2.27 billion. For the first
half of 1996, the Company reported net earnings of $90 million or $1.20 per
share on net revenues of $4.33 billion.
Item 7. Financial Statements and Exhibits
---------------------------------
Exhibit 1
---------
Copy of a press release dated July 16, 1996 reporting Company earnings
for the second quarter 1996.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WHIRLPOOL CORPORATION
Registrant
Date: July 16, 1996 By: /s/ Daniel F. Hopp
--------------------------------------
Name: Daniel F. Hopp
Title: Vice President, General
Counsel and Secretary
<PAGE>
Contact: T.R. Reid
616/923-3417
[email protected]
WHIRLPOOL'S 2Q EARNINGS MATCH THOSE FOR '95 PERIOD;
RESULTS FROM NORTH AMERICA, LATIN AMERICA ARE RECORDS
BENTON HARBOR, Mich. -- July 16, 1996 -- Exceptional results from Whirlpool
Corporation's (NYSE: WHR) operations in North America and Latin America helped
offset weakness elsewhere, as the company turned in flat year-over-year second-
quarter earnings.
Net earnings for the period were $53 million, or 70 cents per share, equal
to those for second-quarter 1995. Revenues for the most-recent quarter reached
$2.27 billion, 7 percent higher than one year ago.
For the first half of 1996, net earnings were $90 million, or $1.20 per
share, versus $127 million, or $1.70 per share, through June 1995. Six-month
revenues totaled $4.33 billion, up 6 percent.
"Our people, on a day-to-day basis, are outperforming their respective
industries and gaining worldwide market share," said Whirlpool Chairman and CEO
David R. Whitwam. "That's most obvious in North America and Latin America, but
it's true throughout our organization.
"We're continually making our business more efficient at the same time
we're increasingly delivering to consumers the products they want, when they
want them. Our overall operating results are being held back, in large part, by
lean market conditions in Europe and planned strategic spending in Asia."
WHIRLPOOL'S NORTH AMERICAN BUSINESS had its best quarter ever during the
three months through June. Company product shipments in the region grew at a
double-digit rate, exceeding industry expansion of 9 percent. Net sales also
rose significantly, and quarterly operating profits increased by nearly 70
percent.
Whirlpool learned earlier this month that it will maintain its product
supplier relationship with Sears, Roebuck and Co., the world's largest retailer
of home appliances. The company supplies Sears with washers, dryers,
dishwashers, refrigerators, trash compactors and air-control products sold under
the retailer's Kenmore brand name, together with a variety of KitchenAid and
Whirlpool brand appliances.
- more -
[LOGO OF WHIRLPOOL] Administrative Center, Benton Harbor,
Michigan 49022
<PAGE>
THE ECONOMIC AND INDUSTRY ENVIRONMENT IN EUROPE remained difficult
throughout the second quarter, as total-industry volumes and product mix were
less favorable than during the 1995 period. Those conditions contributed to
Whirlpool's quarterly operating loss in the region. Additionally, the company
said in June that continued strengthening of the Italian lira against other
European currencies would help push down second-quarter and full-year regional
operating results.
However, Whirlpool Europe countered the industry's second-quarter trend
somewhat by achieving increases in both product shipments and net sales.
Whitwam said that European consumer receptivity to an extensive introduction of
redesigned products is strong and growing, and that a series of actions by the
company to reduce costs and improve margins should lead to gradual improvement
in profitability there.
RECORD TOTAL QUARTERLY EARNINGS FROM LATIN AMERICA jumped by more than 25
percent from 1995 as Whirlpool's affiliates in Brazil continued to significantly
exceed performance expectations. A sharp year-to-date increase in affiliate and
industry appliance shipments in that country is attributable at least in part to
improved availability of consumer credit and efforts to lower interest rates.
Whirlpool posted a slight operating loss in Latin America outside of
Brazil. Economies in the balance of the region remain depressed and year-over-
year product shipments were off significantly in the second quarter. Some market
recovery is occurring in Argentina, but at a slow pace.
WHIRLPOOL ASIA posted substantial gains in appliance shipments and revenues
during the quarter; an operating loss in the period reflected the company's
continued execution of a long-term regional strategy.
In May, Whirlpool and Daiichi Corp., a major appliance retailer in Japan,
said that they will cooperate in marketing and selling Whirlpool products in
Japan and the rest of Asia. Whirlpool brand refrigerators are now on sale in
Daiichi's 300 stores, with other products to follow. The companies will develop
new appliances for Japan and together seek other growth opportunities in the
region.
In a move to further streamline Whirlpool's Asian businesses, shareholders
of Whirlpool Washing Machines Ltd. and Kelvinator of India Ltd. in May approved
the merger of those two Indian appliance companies in which Whirlpool holds
majority interests. Final government approval of the merger creating Whirlpool
of India Ltd. is expected during the third quarter.
Whirlpool Corporation is the world's leading manufacturer and marketer of
major home appliances. Headquartered in Benton Harbor, the company manufactures
in 12 countries and markets products under 11 major brand names in about 140
countries.
###
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (UNAUDITED) File: IS10Q2Q
WHIRLPOOL CORPORATION AND SUBSIDIARIES DLR 7/15/96
THREE MONTHS ENDED June 30 Supplemental Consolidating Data
(millions of dollars except share data) ---------------------------------------------
Whirlpool Corporation Whirlpool with WFC Whirlpool Financial
(Consolidated) on an Equity Basis Corporation (WFC)
--------------------- ------------------- -----------------------
1996 1995 1996 1995 1996 1995
--------- --------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
Net sales $2,229 $2,069 $2,229 $2,069 $ - $ -
Financial services 43 46 - - 55 56
------ ------ ------ ------ ------ ------
2,272 2,115 2,229 2,069 55 56
EXPENSES
Cost of products sold 1,737 1,590 1,737 1,590 - -
Selling and administrative 418 404 402 384 28 30
Financial services interest 16 17 - - 19 20
Intangible amortization 9 8 9 8 - -
------ ------ ------ ------ ------ ------
2,180 2,019 2,148 1,982 47 50
------ ------ ------ ------ ------ ------
OPERATING PROFIT 92 96 81 87 8 6
OTHER INCOME (EXPENSE)
Interest and sundry (4) 2 (5) - 1 2
Interest expense (44) (34) (41) (31) - -
------ ------ ------ ------ ------ ------
EARNINGS BEFORE TAXES
AND OTHER ITEMS 44 64 35 56 9 8
Income Taxes 21 27 18 24 3 3
------ ------ ------ ------ ------ ------
EARNINGS BEFORE EQUITY EARNINGS
AND OTHER ITEMS 23 37 17 32 6 5
Equity in WFC - - 5 4 - -
Equity in affiliated companies 27 16 27 16 - -
Minority interests 2 (1) 3 - (1) (1)
------ ------ ------ ------ ------ ------
NET EARNINGS $ 52 $ 52 $ 52 $ 52 $ 5 $ 4
====== ====== ====== ====== ====== ======
Per share of Common Stock:
Primary earnings $ 0.70 $ 0.70
====== ======
Cash dividends $ 0.34 $ 0.34
====== ======
See notes to consolidated condensed financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (UNAUDITED) File: IS10Q2Y
WHIRLPOOL CORPORATION AND SUBSIDIARIES DLR 7/15/96
SIX MONTHS ENDED June 30 Supplemental Consolidating Data
(millions of dollars except share data) -------------------------------------------
Whirlpool Corporation Whirlpool with WFC Whirlpool Financial
(Consolidated) on an Equity Basis Corporation (WFC)
--------------------- ------------------- -------------------
1996 1995 1996 1995 1996 1995
-------- --------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
Net sales $4,242 $4,008 $4,242 $4,008 $ - $ -
Financial services 89 92 - - 109 108
------ ------ ------ ------ ------ ------
4,331 4,100 4,242 4,008 109 108
EXPENSES
Cost of products sold 3,300 3,028 3,300 3,028 - -
Selling and administrative 811 800 771 756 60 60
Financial services interest 32 33 - - 38 38
Intangible amortization 18 14 18 14 - -
------ ------ ------ ------ ------ ------
4,161 3,875 4,089 3,798 98 98
------ ------ ------ ------ ------ ------
OPERATING PROFIT 170 225 153 210 11 10
OTHER INCOME (EXPENSE)
Interest and sundry (1) - (7) (6) 6 6
Interest expense (84) (63) (78) (58) - -
------ ------ ------ ------ ------ ------
EARNINGS BEFORE TAXES
AND OTHER ITEMS 85 162 68 146 17 16
Income Taxes 39 66 33 60 6 6
------ ------ ------ ------ ------ ------
EARNINGS BEFORE EQUITY EARNINGS
AND OTHER ITEMS 46 96 35 86 11 10
Equity in WFC - - 9 8 - -
Equity in affiliated companies 41 34 41 34 - -
Minority interests 3 (3) 5 (1) (2) (2)
------ ------ ------ ------ ------ ------
NET EARNINGS $ 90 $ 127 $ 90 $ 127 $ 9 $ 8
====== ====== ====== ====== ====== ======
Per share of Common Stock:
Primary earnings $ 1.20 $ 1.70
====== ======
Cash dividends $ 0.68 $ 0.68
====== ======
See notes to consolidated condensed financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED CONDENSED BALANCE SHEETS
WHIRLPOOL CORPORATION AND SUBSIDIARIES
(millions of dollars) Supplemental Consolidating Data
------------------------------------------------------------
Whirlpool Corporation Whirlpool with WFC Whirlpool Financial
(Consolidated) on an Equity Basis Corporation (WFC)
------------------------ ------------------------ --------------------------
June 30 December 31 June 30 December 31 June 30 December 31
1996 1995 1996 1995 1996 1995
(Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited)
----------- ----------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and equivalents $ 141 $ 149 $ 116 $ 125 $ 25 $ 24
Trade receivables, less allowances
(1996: $40; 1995: $39) 1,154 1,031 1,154 1,031 - -
Financing receivables and leases,
less allowances
(1996: $31; 1995: $12) 1,216 1,086 - - 1,216 1,086
Inventories 1,074 1,029 1,074 1,029 - -
Other current assets 298 246 312 235 11 11
----------- ----------- ----------- ----------- ----------- -----------
TOTAL CURRENT ASSETS 3,883 3,541 2,656 2,420 1,252 1,121
Investments and other assets 807 777 1,075 1,046 - -
Financing receivables and leases,
less allowances
(1996: $13; 1995: $30) 650 772 - - 650 772
Intangibles, net 894 931 894 931 - -
----------- ----------- ----------- ----------- ----------- -----------
2,351 2,480 1,969 1,977 650 772
Property, plant and equipment 3,743 3,662 3,721 3,638 22 24
Accumulated depreciation (1,988) (1,883) (1,974) (1,867) (14) (16)
----------- ----------- ----------- ----------- ----------- -----------
1,755 1,779 1,747 1,771 8 8
----------- ----------- ----------- ----------- ----------- -----------
TOTAL ASSETS $ 7,989 $ 7,800 $ 6,372 $ 6,168 $ 1,910 $ 1,901
=========== =========== =========== =========== =========== ===========
</TABLE>
See notes to consolidated condensed financial statements
<PAGE>
CONSOLIDATED CONDENSED BALANCE SHEETS
WHIRLPOOL CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
(millions of dollars) Supplemental Consolidating Data
-------------------------------------------------------
Whirlpool Corporation Whirlpool with WFC Whirlpool Financial
(Consolidated) on an Equity Basis Corporation (WFC)
-------------------------- -------------------------- -------------------------
June 30 December 31 June 30 December 31 June 30 December 31
1996 1995 1996 1995 1996 1995
(Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited)
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $2,232 $1,998 $1,004 $ 765 $1,228 $1,233
Accounts payable 937 977 845 896 117 81
Other current liabilities 795 854 794 844 1 10
------ ------ ------ ------ ------ ------
TOTAL CURRENT LIABILITIES 3,964 3,829 2,643 2,505 1,346 1,324
Long-term debt 932 983 838 870 94 113
Postemployment benefits 566 517 561 517 5 -
Other liabilities 440 415 318 295 122 120
------ ------ ------ ------ ------ ------
1,938 1,915 1,717 1,682 221 233
Minority interests 176 179 101 104 75 75
STOCKHOLDERS' EQUITY
Common stock 81 81 81 81 8 8
Paid-in capital 236 229 236 229 26 26
Retained earnings 1,903 1,863 1,903 1,863 236 234
Unearned restricted stock (8) (8) (8) (8) -
Currency translation adjustments (65) (53) (65) (53) (2) -
Treasury stock - at cost (236) (235) (236) (235) - 1
------ ------ ------ ------ ------ ------
TOTAL STOCKHOLDERS' EQUITY 1,911 1,877 1,911 1,877 268 269
------ ------ ------ ------ ------ ------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $7,989 $7,800 $6,372 $6,168 $1,910 $1,901
====== ====== ====== ====== ====== ======
</TABLE>
See notes to consolidated condensed financial statements
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