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[LOGO OF WHIRLPOOL CORPORATION]
WHIRLPOOL CORPORATION REPORTS RECORD SECOND QUARTER
Performance Improvement Continues
BENTON HARBOR, Mich. - Jul. 17, 2000 - Whirlpool Corporation (NYSE: WHR)
today reported record second quarter performance, posting a 28 percent year-
over-year increase in quarterly earnings per share.
"Our global operations delivered a solid performance for the latest quarter
despite a challenging external environment, slowing appliance industry growth in
North America and increases in material costs across our markets," said
Whirlpool Chairman and CEO David R. Whitwam.
Second quarter 2000 net earnings were $121 million, or $1.66 per diluted
share, up 22 percent from second-quarter 1999 earnings of $99 million or $1.30
per diluted share. Year-to-date net earnings were $233 million, or $3.18 per
diluted share, up 24 percent from the first half 1999 core earnings of $187
million, or $2.45 per diluted share. Core earnings for 1999 excluded the first
quarter Brazilian currency devaluation. Reported 1999 first half earnings were
$127 million, or $1.66 per diluted share.
Second quarter sales of $2.6 billion were down 1.2 percent from the prior
year period. Absent currency translations, which reduced sales by $69 million,
sales grew 1.5 percent in the quarter. Year-to-date sales were $5.2 billion, up
1.4 percent from the first six months of 1999. Absent currency translations of
$132 million, sales grew 4 percent in the first six months of the year.
Whirlpool North America reported a solid quarterly operating profit
performance despite a slowing of the growth in appliance industry unit shipments
and a competitive pricing environment. The performance improvement was driven,
in part, by enhanced and innovative new product introductions including the
Whispure air purifier line, a totally new line of Conquest refrigerators
featuring an in-the-door ice system and new Catalyst clothes washers and
companion Senseon dryers, all under the Whirlpool brand. The company's
Operational Excellence initiative, a customized Six Sigma quality and
productivity improvement program, also contributed significantly to the
quarterly results.
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Whirlpool Quarterly Results -- add one
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For the remainder of the year, the company expects North American appliance
industry unit shipments will continue to slow from prior year levels, but still
grow approximately 3 percent for the full year. The company plans a
continuation of its accelerated new product introduction schedule supported by
higher levels of brand advertising, which is expected to boost sales in the
second half of the year.
Whirlpool Europe reported gains in quarterly unit shipments, but revenues
were adversely affected by nearly 10 percent in the quarter due to the
unfavorable impact of currency translation. Quarterly operating profit margins
showed continued improvement from first quarter levels, but were also
unfavorably affected by both a tightening competitive environment and higher
material costs.
The company continues to expect European appliance industry shipments to
grow between 4 and 5 percent for the full year and it expects continuing
performance improvements from its own operations. The company plans several
important new product introductions in the second half of the year, all of which
are expected to help drive performance improvement.
Whirlpool Latin America reported quarterly improvements in unit shipments
and operating profits. Currency translations also reduced quarterly revenues in
the region. The company continues to see improving economic conditions in the
region, and continues to expect appliance industry unit shipments to grow
between 7 and 10 percent for the full year.
"The exceptional strength of our brands in Latin America will produce solid
full-year improvements in operating performance for this important business,"
said Whitwam.
Whirlpool Asia again reported record quarterly performance, with strong
improvements in revenues, unit shipments and operating profit. Company
performance was again driven by sales growth in India, China and the Asia
Pacific countries. The company continues to expect appliance industry unit
shipments in its Asian region to grow between 8 and 10 percent for the full
year.
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Whirlpool Quarterly Results -- add two
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The company also announced that it repurchased 2.1 million shares during
the second quarter of 2000. In total the company has now repurchased more than
6.5 million shares and spent approximately 40 percent of the $1 billion
authorized by its board of directors.
According to Whitwam, "The second quarter was our largest quarter of share
repurchases to date. This aggressive approach is based on our confidence in our
cash flow generation capabilities and by our continuing view that our shares
remain significantly undervalued."
In summary Whitwam said, "We are pleased with the solid performance of our
global business, especially given the challenging operating environment we are
experiencing around the world."
"We expect our full-year performance to be up 20 to 25 percent from last
year's record levels," added Whitwam. "Although, due to the projected operating
environment, we expect to fall modestly short of the current range of earnings
estimates projected by Wall Street analysts."
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 more than 170
countries. Additional information about the company can be found on the
Internet at www.WhirlpoolCorp.com.
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Media Financial
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Christopher Wyse Thomas Filstrup
616-923-3417 616-923-3189
christopher j [email protected] [email protected]
---
Zen Yinger
616-923-5978
[email protected]
This news release contains forward-looking statements, as that term is defined
in the Private Securities Litigation Reform Act of 1995. In addition to the
expected appliance industry results for 2000 noted in this news release, there
are certain factors that could cause results to differ materially from those
anticipated by some of the statements made. These factors are listed in the
Company's most recently filed Form 10-Q and/or Form 10-K.
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CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (UNAUDITED)
WHIRLPOOL CORPORATION
FOR THE PERIOD ENDED JUNE 30
(millions of dollars except share and dividend data)
<TABLE>
<CAPTION>
Three Months Ended Year-to-Date
-------------------- ------------------
1999 Pro-forma
2000 1999 2000 1999 "Core" Earnings
-------- -------- -------- -------- ---------------
<S> <C>
Net sales $ 2,586 $ 2,617 $ 5,176 $ 5,102 $ 5,102
EXPENSES:
Cost of products sold 1,958 1,967 3,900 3,833 3,833
Selling and administrative 389 437 794 858 858
Intangible amortization 7 8 15 16 16
------- ------- ------- ------- -------
2,354 2,412 4,709 4,707 4,707
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OPERATING PROFIT 232 205 467 395 395
OTHER INCOME (EXPENSE):
Interest and sundry income (expense) (4) 5 (14) (148) 10
Interest expense (46) (44) (83) (85) (85)
------- ------- ------- ------- -------
EARNINGS (LOSS) BEFORE INCOME TAXES
AND OTHER ITEMS 182 166 370 162 320
Income taxes 63 62 135 70 123
------- ------- ------- ------- -------
EARNINGS (LOSS) BEFORE EQUITY EARNINGS
AND MINORITY INTERESTS 119 104 235 92 197
Equity in earnings of affiliated companies 7 1 6 (2) (2)
Minority interests (5) (6) (8) 37 (8)
------- ------- ------- ------- -------
NET EARNINGS $ 121 $ 99 $ 233 $ 127 $ 187
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Per share of common stock:
Basic net earnings $ 1.68 $ 1.32 $ 3.20 $ 1.68 $ 2.47
Diluted net earnings $ 1.66 $ 1.30 $ 3.18 $ 1.66 $ 2.45
Cash dividends $ .34 $ .34 $ .68 $ .68 $ .68
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</TABLE>
Note: 1999 Pro-forma excludes 1st quarter Brazil devaluation.
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CONSOLIDATED CONDENSED BALANCE SHEETS
WHIRLPOOL CORPORATION
(millions of dollars)
<TABLE>
<CAPTION>
June 30 December 31 June 30 December 31
2000 1999 2000 1999
(Unaudited) (Audited) (Unaudited) (Audited)
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY
Current Assets Current Liabilities
-------------- -------------------
Cash and equivalents $ 159 $ 261 Notes payable $ 1,089 $ 444
Trade receivables, less Accounts payable 1,110 1,081
allowances of (2000: $131 ;1999: $124) 1,620 1,477 Employee compensation 232 300
Inventories 1,297 1,065 Accrued expenses 839 803
Prepaid expenses and other 256 286 Restructuring costs 8 39
Deferred income taxes 81 88 Current maturities of 32 225
long-term debt
------- ------- ------- -------
Total Current Assets 3,413 3,177 Total Current Liabilities 3,310 2,892
Other Liabilities
-----------------
Deferred income taxes 147 157
Postemployment benefits 619 612
Other Assets Other liabilities 168 168
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Investment in affiliated companies 116 112 Long-term debt 781 714
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Intangibles, net 787 795 1,715 1,651
Deferred income taxes 249 247
Other 356 317 Minority Interests 154 416
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1,508 1,471
Stockholders' Equity
Common stock 84 84
Property, Plant and Equipment Paid-in capital 389 374
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Land 67 70 Retained earnings 2,451 2,268
Buildings 863 863 Unearned restricted stock (8) (6)
Machinery and equipment 4,261 4,249 Accumulated other comprehensive
income (437) (443)
Accumulated depreciation (3,080) (3,004) Treasury stock - at cost (626) (410)
------- ------- ------- -------
2,111 2,178 Total Stockholders' Equity 1,853 1,867
------- ------- ------- -------
Total Assets $ 7,032 $ 6,826 Total Liabilities and Stockholders'
Equity $ 7,032 $ 6,826
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