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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) January 13, 1998
WHIRLPOOL CORPORATION
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(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Delaware 1-3932 38-1490038
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(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation) Number) Identification No.)
</TABLE>
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 January 13, 1998, the registrant announced that it will take a charge
against fourth-quarter 1997 earnings to reduce costs in its Latin American
operations. The Brazilian subsidiary charge will be about $44 million pre-tax,
or $31 million after-tax, and when fully implemented annual after-tax cost
savings to the Brazilian subsidiary of approximately $45 million are expected.
In addition, the registrant reported that it expected fourth quarter and
full-year 1997 earnings to be in line with recent analyst expectations and to
exceed last year's earnings by approximately 35 percent. The company said
audited earnings will be released in early February.
Item 7. Financial Statements and Exhibits
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Copy of January 13, 1998 press release covering the Company's announcement
regarding a charge against fourth-quarter 1997 earnings to reduce costs in its
Latin American 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: January 14, 1998 By: /s/ Daniel F. Hopp
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Name: Daniel F. Hopp
Title: Vice President, General
Counsel and Secretary
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Christopher Wyse
616-923-3417
christopher j [email protected]
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WHIRLPOOL CORPORATION ANNOUNCES LAST STEP OF
1997 GLOBAL RESTRUCTURING
BENTON HARBOR, Mich. -- Jan. 13, 1998 -- Whirlpool Corporation (NYSE: WHR) today
announced it will take a charge against fourth-quarter 1997 earnings to reduce
costs in its Latin American operations. The Brazilian subsidiary charge will be
about $44 million pre-tax, or $31 million after-tax, and when fully implemented
annual after-tax cost savings to the Brazilian subsidiary of approximately $45
million are expected.
The charge follows Whirlpool's recently completed purchase of a majority
voting interest (66 percent) in Brasmotor S.A., the holding company that
controls Multibras S.A., the largest appliance company in Latin America. Based
on Whirlpool's ownership position, the financial impact of the charge to
Whirlpool totals $14 million, or 19 cents per share, and Whirlpool expects to
realize annual savings of $20 million, or 26 cents per share. Whirlpool will
consolidate Latin American financials in the fourth quarter of 1997, based on
its increased ownership position.
"These moves strengthen our cost structure and solidify our leadership
position in Brazil and throughout Latin America, and deal with the realities of
the environment that we face in the region," said Whirlpool chairman and CEO
David R. Whitwam.
The charge is being incurred to improve efficiency and productivity in the
Latin American operations. The restructuring, for which initial planning began
earlier in 1997, will be largely completed by the end of the first quarter of
1998 and is expected to ultimately eliminate about 3,200 positions. This
reduction will represent about 25 percent of the Brazilian appliance workforce.
This action in Brazil is the final step in Whirlpool's global restructuring
announced in September 1997.
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Whirlpool Announces Last Step of 1997 Global Restructuring -- add one
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Whitwam also noted that the company experienced a pickup in its Brazilian
business in December where unit volume sales were up substantially, following a
downturn felt throughout the appliance industry over the previous four months.
The company's current outlook assumes that full year 1998 industry volumes for
Brazil should approximate 1997 levels.
The Brasmotor group released preliminary unaudited earnings for both the
fourth quarter and full-year 1997 this morning. Fourth quarter and full-year
1997 earnings for Whirlpool's share of the Brazilian subsidiary are expected to
total $22 million and $78 million respectively, excluding the one-time charge.
Fourth quarter and full-year 1996 earnings were $24 million and $92 million
respectively.
Whirlpool also indicated that its total consolidated fourth quarter and
full-year 1997 earnings will be released in early February. Whitwam said that
though audited earnings for both the fourth quarter and full-year 1997 are not
yet available, he expects them to be in-line with recent analyst expectations,
and to exceed last year's earnings by roughly 35 percent.
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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