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CONFORMED COPY
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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) June 5, 1996
WHIRLPOOL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-3932 38-1490038
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(State or other jurisdiction (Commision File (I.R.S. Employer
of incorporation) number) Identification No.)
2000 M63 North, Benton Harbor, Michigan 49022-2692
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(Address of principal executive officers) (Zip Code)
(616)-923-5000
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Registrant's telephone number, including area code
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Item 5. Other Events
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On June 5, 1996, the registrant issued a press release regarding the
effects of currency changes on its European operations and advising that the
registrant currently anticipates its effective tax rate for the year to be about
50%. In the press release, the registrant advised that the strengthening of the
Italian lira against other European currencies at present levels is currently
expected to reduce European operating profits by $50 million from previously
planned full year levels.
Item 7. Financial Statements and Exhibits
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Exhibit 1
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Copy of a press release dated June 5, 1996 regarding the strengthening
of Italian lira against other currencies changing Whirlpool's expectations for
European operations.
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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: June 5, 1996 By: /s/ Daniel F. Hopp
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Name: Daniel F. Hopp
Title: Vice President, General
Counsel and Secretary
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CONFIDENTIAL! UNTIL SCHEDULED USE T.R. Reid
616/923-3417
[email protected]
STRENGTHENING OF ITALIAN LIRA AGAINST OTHER CURRENCIES
CHANGES WHIRLPOOL'S EXPECTATIONS FOR EUROPEAN OPERATIONS
BENTON HARBOR, Mich. -- June 5, 1996 -- Whirlpool Corporation (NYSE:
WHR) said today that continued strengthening of the Italian lira against other
European currencies, coupled with a difficult economic and industry environment
in the region, will likely push down the year-over-year operating performance of
the company's European business unit.
Chairman and CEO David R. Whitwam said the strengthening in the lira's
position relative to the German mark and other major currencies has been more
persistent and profound than economic projections called for. Since December,
the Italian currency's position against the Deutsche mark has increased by about
9 percent; the lira is also up significantly versus other European currencies.
If present currency-exchange rates continue, Whitwam said, European operating
profits could be about $50 million lower than planned full-year levels.
Whirlpool Europe has 50 percent of its manufacturing base in Italy.
About 80 percent of the volume from the company's Italian plants is exported to
other markets; the profit margin on that volume is reduced when the lira
strengthens.
In addition to the currency situation, major European economies in
general remain very weak. Such weakness caused year-over-year appliance-
industry shipments to decline by about 2 percent through April, and extended a
consumer shift to lower-priced products during a period of very intense
competition in the region.
According to Whitwam, reduced profitability resulting from the
strengthening lira and the challenging European market is currently expected to
increase Whirlpool's consolidated effective tax rate to about 50 percent this
year.
"Despite all of these issues in what is a challenging European market,
our people are making further progress in the execution of our long-term
strategy for the region," said Whitwam. "Our product shipments are up from the
same period a year ago and we're gaining market share, largely because of
consumer receptivity to new appliances being introduced as part of a massive
product renewal.
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"At the same time, we're continuing to work to offset the currency
impact by taking every opportunity for higher pricing and aggressively driving
further cost reductions."
Whitwam said the currency issue has little or no effect on Whirlpool's
other operations. The North American Appliance Group, which achieved record
operating results in the first quarter, turned in strong performances in April
and May. The company continues to expect full-year operating improvement from
the Latin American region, as Brazilian affiliates operate at higher-than-
planned levels. Whirlpool Asia, he added, is meeting expectations for unit
shipments, revenues and operating results.
The chairman declined to offer details about the current period.
Whirlpool will report second-quarter results in mid-July.
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.
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