<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) January 21, 1997
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
------------
On January 21, 1997, the registrant reported its earnings for the fourth-
quarter and full year of 1996. The Company reported fourth-quarter net earnings
of $45 million or 60 cents per share on net revenues of $2.17 billion.
For the entire year of 1996, the Company reported net earnings of $156
million or $2.08 per share, including a third-quarter charge related to
streamlining the Company's Asian headquarters and a North American refrigeration
operation. Without the charge, 12-month earnings were $175 million, or $2.33 per
share on net revenues of approximately $8.70 billion.
Item 7. Financial Statements and Exhibits
---------------------------------
Exhibit 1
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Copy of a press release dated January 21, 1997 regarding the company's
earnings for the fourth quarter and full year 1996.
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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: January 21, 1997 By: /s/ Daniel F. Hopp
------------------------------
Name: Daniel F. Hopp
Title: Vice President, General
Counsel and Secretary
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Contact:
T.R. Reid
616/923-3417
T.R. [email protected]
WHIRLPOOL REPORTS IMPROVEMENT IN FOURTH-QUARTER RESULTS;
FULL-YEAR OPERATING RESULTS DOWN, AS EXPECTED
BENTON HARBOR, Mich. -- Jan. 21, 1997 -- Whirlpool Corporation (NYSE: WHR)
today said continued strong performances by its North American and Latin
American businesses and improvement in its European appliance unit produced a
sharp year-over-year increase in fourth-quarter earnings. As anticipated, full-
year operating results were down from those for 1995.
WHIRLPOOL'S FOURTH-QUARTER NET EARNINGS were $45 million, or 60 cents per
share, up from $18 million, or 25 cents per share, one year ago. Revenues for
the period increased by 3 percent to $2.17 billion.
Full-year 1996 net earnings totaled $156 million, or $2.08 per share,
including a third-quarter charge related to streamlining Whirlpool's Asian
headquarters and a North American refrigeration operation. WITHOUT THE CHARGE,
12-MONTH EARNINGS were $175 million, or $2.33 per share, off from $209 million,
or $2.80 per share, in 1995. Revenues reached $8.70 billion, 4 percent better
than in the prior year.
Whirlpool Chairman and CEO David R. Whitwam said that the company last year
accomplished several significant objectives associated with its global strategy
to create long-term value. He acknowledged that "bottom-line financial results
were disappointing," but added that profitability varied widely from region to
region.
"The operating performances of our North American and Latin American
appliance groups in 1996 were outstanding, and we expect further solid results
from them this year," said Whitwam. "We believe that our European business is on
a trend of gradual improvement that will carry through 1997, and we anticipate
better results from Whirlpool Asia as our volumes in that important market
continue to grow."
WHIRLPOOL NORTH AMERICA turned the cumulative effects of ongoing efficiency
gains and more favorable material costs into a 17-percent jump in quarterly
operating results. The company is benefiting from strong consumer receptivity
to its new KitchenAid dishwashers, KitchenAid and Whirlpool built-in ovens and
Whirlpool
- more -
Whirlpool Administrative Center, Benton Harbor, Michigan 49022
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free-standing ranges, all of which were introduced during third-quarter 1996.
In the latter category, the redesigned products from its new Tulsa, Okla.,
manufacturing division helped Whirlpool pick up market share in the second half
of the year.
According to Whitwam, regional industry shipments were up by 5 percent in
1996, including disproportionate gains by air conditioners and microwave ovens.
Industry totals are expected to be down slightly this year primarily because
retail inventories of air conditioners remain high from last season.
IN EUROPE, Whirlpool was profitable in the fourth quarter, extending a run
of improved performance since second-quarter 1996, but suffered a slight full-
year operating loss. While the overall economic and industry environment in
Western Europe remains weak, the company achieved product-shipment and revenue
increases on both quarterly and annual bases. For the year, strong acceptance of
several new products led Whirlpool volumes up even as the industry slipped by
almost 2 percent. Flat industry shipments are forecasted for 1997.
TOTAL LATIN AMERICAN EARNINGS were up by 30 percent in the fourth quarter,
19 percent for the year, as Whirlpool's Brazilian affiliates contributed a third
straight quarter of markedly higher equity earnings. Whitwam said that industry
shipments in Brazil are likely to cool somewhat from last year's 20-percent
increase, but are still expected to expand at a double-digit rate in 1997. The
company anticipates that Argentina and other key Latin markets will maintain
their slow recovery from recent depressed levels.
WHIRLPOOL ASIA reported a substantial rise in quarterly sales, although, as
planned, strategic spending in that fast-growing region resulted in fourth-
quarter and full-year operating losses. In late 1996, the Whirlpool brand was
introduced to China in three of the four major appliance categories--microwave
ovens, washers and air conditioners--on products that feature new aesthetics and
higher levels of manufacturing and functional quality.
Whirlpool Corporation is the world's leading manufacturer and marketer of
major home appliances. Headquartered in Benton Harbor, the company manufactures
in 13 countries and markets products under 11 major brand names in about 140
countries.
###
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<TABLE>
<CAPTION>
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (UNAUDITED)
WHIRLPOOL CORPORATION AND SUBSIDIARIES
THREE MONTHS ENDED December 31 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 $2,126 $2,046 $2,126 $2,046 $ - $ -
Financial services 39 47 - - 59 56
------ ------ ------ ------ --- ----
2,165 2,093 2,126 2,046 59 56
EXPENSES
Cost of products sold 1,644 1,591 1,644 1,591 - -
Selling and administrative 421 429 403 407 38 32
Financial services interest 21 17 - - 23 21
Intangible amortization 8 9 8 9 - -
Restructuring costs - - - - - -
------ ------ ------ ------ --- ----
2,094 2,046 2,055 2,007 61 53
------ ------ ------ ------ --- ----
OPERATING PROFIT 71 47 71 39 (2) 3
OTHER INCOME (EXPENSE)
Interest and sundry (3) (11) (15) (13) 12 3
Interest expense (40) (37) (38) (34) - -
------ ------ ------ ------ --- ----
EARNINGS BEFORE TAXES AND
OTHER ITEMS 28 (1) 18 (8) 10 6
Income taxes 23 4 19 1 4 2
------ ------ ------ ------ --- ----
EARNINGS BEFORE EQUITY EARNINGS
AND OTHER ITEMS 5 (5) (1) (9) 6 4
Equity in WFC - - 5 4 - -
Equity in affiliated companies 32 23 32 23 - -
Minority interests 8 - 9 - (1) -
------ ------ ------ ------ --- ----
NET EARNINGS $ 45 $ 18 $ 45 $ 18 $ 5 $ 4
====== ====== ====== ====== === ====
Per share of Common Stock:
Net earnings $ 0.60 $ 0.25
====== ======
Cash dividends $ 0.34 $ 0.34
====== ======
</TABLE>
See notes to consolidated condensed financial statements
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<TABLE>
<CAPTION>
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (UNAUDITED) File: IS10Q4Y
WHIRLPOOL CORPORATION AND SUBSIDIARIES DLR 1/17/97
TWELVE MONTHS ENDED December 31 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 $8,523 $8,163 $8,523 $8,163 $ - $ -
Financial services 173 184 - - 224 219
------ ------ ------ ------ ---- ----
8,696 8,347 8,523 8,163 224 219
EXPENSES
Cost of products sold 6,623 6,245 6,623 6,245 - -
Selling and administrative 1,637 1,609 1,557 1,521 131 123
Financial services interest 71 66 - - 81 79
Intangible amortization 35 31 35 31 - -
Restructuring costs 30 - 30 - - -
------ ------ ------ ------ ---- ----
8,396 7,951 8,245 7,797 212 202
------ ------ ------ ------ ---- ----
OPERATING PROFIT 300 396 278 366 12 17
OTHER INCOME (EXPENSE)
Interest and sundry (5) (13) (23) (23) 18 11
Interest expense (165) (141) (155) (129) - -
------ ------ ------ ------ ---- ----
EARNINGS BEFORE TAXES AND
OTHER ITEMS 130 242 100 214 30 28
Income taxes 81 100 70 90 11 10
------ ------ ------ ------ ---- ----
EARNINGS BEFORE EQUITY EARNINGS
AND OTHER ITEMS 49 142 30 124 19 18
Equity in WFC - - 15 14 - -
Equity in affiliated companies 93 72 93 72 - -
Minority interests 14 (5) 18 (1) (4) (4)
------ ------ ------ ------ ---- ----
NET EARNINGS $ 156 $ 209 $ 156 $ 209 $ 15 $ 14
====== ====== ====== ====== ==== ====
Per share of Common Stock:
Net earnings $ 2.08 $ 2.80
====== ======
Cash dividends $ 1.36 $ 1.36
====== ======
</TABLE>
See notes to consolidated condensed financial statements
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<TABLE>
<CAPTION>
File: -ME2B09.XLS BSQ496
CONSOLIDATED CONDENSED BALANCE SHEETS JLA 1/20/97
WHIRLPOOL CORPORATION AND SUBSIDIARIES
(millions of dollars) Supplemental Consolidating Data
-------------------------------------------------------
Whirlpool Corporation Whirlpool with WFC Whirlpool Financial
(Consolidated) on an Equity Basis Corporation (WFC)
--------------------------- -------------------------- -------------------------
December 31 December 31 December 31 December 31 December 31 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 $2,157 $1,998 $ 704 $ 765 $1,453 $1,233
Accounts payable 983 977 886 896 111 81
Other current liabilities 858 854 852 844 6 10
------ ------ ------ ------ ------ ------
TOTAL CURRENT LIABILITIES 3,998 3,829 2,442 2,505 1,570 1,324
Long-term debt 955 983 887 870 68 113
Postemployment benefits 563 517 557 517 6 -
Other liabilities 388 415 270 295 118 120
------ ------ ------ ------ ------ ------
1,906 1,915 1,714 1,682 192 233
Minority interests 182 179 82 104 110 75
STOCKHOLDERS' EQUITY
Common stock 81 81 81 81 8 8
Paid-in capital 246 229 246 229 26 26
Retained earnings 1,918 1,863 1,918 1,863 242 234
Unearned restricted stock (7) (8) (7) (8) - -
Currency translation adjustments (76) (53) (76) (53) (3) 1
Treasury stock - at cost (236) (235) (236) (235) - -
------ ------ ------ ------ ------ ------
TOTAL STOCKHOLDERS' EQUITY 1,926 1,877 1,926 1,877 273 269
------ ------ ------ ------ ------ ------
TOTAL LIABILITIES AND EQUITY $8,012 $7,800 $6,164 $6,168 $2,145 $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)
-------------------------- --------------------------- -------------------------
December 31, December 31, December 31, December 31, December 31, 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 $ 129 $ 149 $ 102 $ 125 $ 27 $ 24
Trade receivables, less allowances
(1996: $45; 1995: $39) 966 1,031 966 1,031 -- --
Financing receivables and leases,
less allowances
(1996: $12; 1995: $12) 1,400 1,086 -- -- 1,400 1,086
Inventories 1,034 1,029 1,034 1,029 -- --
Other current assets 293 246 301 235 6 11
------- ------- ------- ------- ------- -------
TOTAL CURRENT ASSETS 3,822 3,541 2,403 2,420 1,433 1,121
Investments and other assets 818 777 1,101 1,046 -- --
Financing receivables and leases,
less allowances
(1996: $37; 1995: $30) 704 772 -- -- 704 772
Intangibles, net 870 931 870 931 -- --
------- ------- ------- ------- ------- -------
2,392 2,480 1,971 1,977 704 772
Property, plant and equipment 3,839 3,662 3,820 3,638 19 24
Accumulated depreciation (2,041) (1,883) (2,030) (1,867) (11) (16)
------- ------- ------- ------- ------- -------
1,798 1,779 1,790 1,771 8 8
------- ------- ------- ------- ------- -------
TOTAL ASSETS $ 8,012 $ 7,800 $ 6,164 $ 6,168 $ 2,145 $ 1,901
======= ======= ======= ======= ======== =======
</TABLE>
See notes to consolidated condensed financial statements
