<PAGE>
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) April 19, 2000
WHIRLPOOL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-3932 38-1490038
- ---------------------------- ---------------- -------------------
(State or other jurisdiction (Commission 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)
<PAGE>
Item 5. Other Events
On April 19, 2000, the Company announced its first quarter 2000 earnings.
For the quarter, net earnings were $112 million, or $1.52 per diluted share, up
32 percent from first-quarter 1999 core earnings of $88 million or $1.15 per
diluted share. The first quarter results include a net pension credit of 12
cents per diluted share. For the full-year 2000, the Company expects to
recognize a net pension plan credit of approximately 50 cents per diluted share
and expects to recognize similar annual pension plan credits for the next 3 to 5
years. Core earnings for 1999 excluded the Brazilian current devaluation.
Reported 1999 first quarter net earnings were $28 million or 36 cents per
diluted share.
Item 7. Financial Statements and Exhibits
Copy of press release dated April 19, 2000.
<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: April 24, 2000 By: /s/ Robert T. Kenagy
----------------------------------
Name: Robert T. Kenagy
Title: Associate General Counsel and
Secretary
<PAGE>
WHIRLPOOL CORPORATION POSTS RECORD QUARTERLY RESULTS
Company's 14th Consecutive Quarter Of 20 Percent Or More Improvement
BENTON HARBOR, Mich. - Apr. 19, 2000 - Whirlpool Corporation (NYSE:WHR)
today reported that it extended a trend of strong global operating performance
improvement through the first quarter of 2000 posting a 32 percent increase in
quarterly earnings per share, producing the best quarterly results in its
history.
For the quarter, net earnings were $112 million, or $1.52 per diluted
share, up 32 percent from first-quarter 1999 core earnings of $88 million or
$1.15 per diluted share. Core earnings for 1999 excluded the Brazilian currency
devaluation. Reported 1999 first quarter net earnings were $28 million or 36
cents per diluted share.
"We continue to see positive momentum across our global operations as
evidenced by 14 consecutive quarters in which core earnings per share have
improved in excess of 20 percent from the prior-year period," said Whirlpool
Chairman and CEO David R. Whitwam. "We're consistently delivering strong growth
and improving results. Our global momentum continues to be driven by the growth
of our leading brand names around the world and by our industry-leading global
business structure that we are leveraging across our operations with exceptional
benefit. We are particularly pleased with the results being generated globally
by Operational Excellence program, our customized Six Sigma quality and
productivity improvement program."
Strong management of the company's pension assets resulted in a net pension
credit of 12 cents per diluted share, which was included in the company's
quarterly earnings. For full-year 2000, the company expects to recognize a net
pension plan credit of approximately 50 cents per diluted share and expects to
recognize similar annual pension plan credits for the next 3 to 5 years.
First quarter sales grew 4 percent from the 1999 period to $2.6 billion.
Absent currency translations, which reduced sales by $63 million, sales grew 7
percent in the quarter. The company believes that its underlying unit shipment
growth remains fundamentally representative of its global growth strategies and
objectives.
- more -
<PAGE>
Whirlpool Quarterly Results -- add one
- --------------------------------------
Whirlpool North America reported strong first quarter 2000 results
including record levels of sales, unit shipments and operating profit. The
company continues to outperform the North American appliance industry core
product categories, which grew a robust 7 percent in the first quarter versus
the prior year.
For the remainder of the year, the company expects that its series of new
product introductions, innovative brand-building initiatives and ongoing
productivity improvements will continue to produce strong results. New products
that are expected to drive results include the recently introduced Whirlpool
brand Conquest(TM) side-by-side refrigerator with In-Door Ice(TM) system and the
new Whirlpool brand Whispure(TM) air purifier. The company continues to expect
that North American appliance industry unit shipments will grow approximately 3
percent for the full year.
Whirlpool Europe also reported strong results including first quarter
records for unit shipments, operating profits and sales in local currency. The
company's unit shipment growth solidly outpaced the European appliance
industry's gain of 4 percent in the first quarter versus the prior year.
The company continues to expect European appliance industry shipments to
grow between 4 and 5 percent for the full-year. The company also plans to
continue its strong performance improvement with additional new product
introductions, including new Whirlpool brand Imagine(TM) dishwashers, washing
machines and dryers all incorporating sensor-driven 6th sense technology, as
well as other aggressive brand building initiatives.
Whirlpool Latin America, as expected, produced strong double-digit gains in
unit shipments, sales and operating profit. This performance was driven by
increasing consumer demand for Brastemp and Consul brand products, as well as by
continued productivity improvements.
The company expects to deliver additional performance improvements in Latin
America as general economic and appliance industry conditions continue to
strengthen, and as the company accelerates its aggressive schedule of new
product introductions and other brand-building initiatives. For the full-year
2000,
- more -
<PAGE>
Whirlpool Quarterly Results -- add two
the company maintains its expectation for unit shipment growth between 7 and 10
percent for the Latin American appliance industry.
Whirlpool Asia continued its string of quarterly performance improvements
by again posting quarterly gains in unit shipments and sales, as well as in
operating profit that more than tripled from the first quarter of 1999. Company
performance was again driven by sales growth across the region. Consumer
acceptance of the new globally designed Opera/TM/ line of Whirlpool brand
refrigerators, first introduced in India, was particularly strong in the quarter
and is expected to fuel additional sales growth throughout the year.
The company continues to expect appliance industry unit shipments in its
Asian region to grow between 8 and 10 percent for the full year.
In summary Whitwam added, "Based on our excellent first quarter growth and
financial performance, and our outlook for continued growth in the global
appliance industry, we expect to deliver another year of record performance and
operating profitability. And, we expect it will be a record year of performance
by a fairly wide margin."
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.
###
Media Financial
Christopher Wyse Thomas Filstrup
616-923-3417 616-923-3189
[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.
<PAGE>
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (UNAUDITED)
WHIRLPOOL CORPORATION
FOR THE PERIOD ENDED MARCH 31
(millions of dollars except share and dividend data)
<TABLE>
<CAPTION>
Three Months Ended
-------------------- 1999 Pro-forma
2000 1999 "Core" Earnings
------- ------- ---------------
<S> <C> <C> <C>
Net sales $ 2,590 $ 2,486 $ 2,486
EXPENSES:
Cost of products sold 1,942 1,867 1,867
Selling and administrative 405 421 421
Intangible amortization 8 9 9
------- ------- ---------------
2,355 2,297 2,297
------- ------- ---------------
OPERATING PROFIT 235 189 189
OTHER INCOME (EXPENSE):
Interest and sundry income (expense) (9) (152) 6
Interest expense (38) (41) (41)
------- ------- ---------------
EARNINGS (LOSS) BEFORE INCOME TAXES
AND OTHER ITEMS 188 (4) 154
Income taxes 71 8 61
------- ------- ---------------
EARNINGS (LOSS) BEFORE EQUITY EARNINGS
AND MINORITY INTERESTS 117 (12) 93
Equity in earnings of affiliated companies (2) (2) (3)
Minority interests (3) 42 (2)
------- ------- ---------------
NET EARNINGS $ 112 $ 28 $ 88
======= ======= ===============
Per share of common stock:
Basic earnings from continuing operations $ 1.53 $ .37 $ 1.16
Basic net earnings $ 1.53 $ .37 $ 1.16
Diluted earnings from continuing operations $ 1.52 $ .36 $ 1.15
Diluted net earnings $ 1.52 $ .36 $ 1.15
Cash dividends $ .34 $ .34 $ .34
======= ======= ===============
</TABLE>
Note: 1999 Pro-forma excludes 1st quarter Brazil devaluation.
<PAGE>
CONSOLIDATED CONDENSED BALANCE SHEETS
WHIRLPOOL CORPORATION
(millions of dollars)
<TABLE>
<CAPTION>
March 31 December 31
2000 1999
(Unaudited) (Audited)
----------- -----------
<S> <C> <C>
ASSETS
Current Assets
- --------------
Cash and equivalents $ 175 $ 261
Trade receivables, less allowances of
(2000: $127 ;1999: $124 ) 1,598 1,477
Inventories 1,237 1,065
Prepaid expenses and other 219 286
Deferred income taxes 92 88
-------- --------
Total Current Assets 3,321 3,177
Other Assets
- ------------
Investment in affiliated companies 114 112
Intangibles, net 797 795
Deferred income taxes 247 247
Other 337 317
-------- --------
1,495 1,471
Property, Plant and Equipment
- -----------------------------
Land 68 70
Buildings 857 863
Machinery and equipment 4,258 4,249
Accumulated depreciation (3,035) (3,004)
-------- --------
2,148 2,178
-------- --------
Total Assets $ 6,964 $ 6,826
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
- -------------------
Notes payable $ 966 $ 444
Accounts payable 1,174 1,081
Employee compensation 221 300
Accrued expenses 840 803
Restructuring costs 23 39
Current maturities of long-term debt 238 225
-------- --------
Total Current Liabilities 3,462 2,892
Other Liabilities
- -----------------
Deferred income taxes 148 157
Postemployment benefits 615 612
Other liabilities 166 168
Long-term debt 520 714
-------- --------
1,449 1,651
Minority Interests 154 416
Stockholders' Equity
- --------------------
Common stock 84 84
Paid-in capital 383 374
Retained earnings 2,354 2,268
Unearned restricted stock (7) (6)
Accumulated other comprehensive income (418) (443)
Treasury stock - at cost (497) (410)
-------- --------
Total Stockholders' Equity 1,899 1,867
Total Liabilities and Stockholders' Equity $ 6,964 $ 6,826
======== ========
</TABLE>
