<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 24, 2000
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 (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
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Item 5. Other Events
On January 24, 2000, the registrant reported fourth-quarter and full-year
earnings for 1999. The registrant's reported fourth-quarter earnings from
continuing operations were $113 million, or $1.51 per diluted share, up 36
percent versus earnings of $83 million, or $1.09 per diluted share in the
comparable 1998 period.
Full-year core earnings were $407 million, or $5.35 per diluted share, up
31 percent, versus core earnings of $310 million, or $4.06 per diluted share of
1998. Core earnings are earnings from continuing operations excluding the impact
of the first quarter 1999 Brazilian currency devaluation and discontinued
operations from 1998. Full year net earnings, which include the Brazilian
currency devaluation, were also at record levels of $347 million, or $4.56 per
diluted share, versus 1998 net earnings of $325 million, or $4.25 per diluted
share.
Item 7. Financial Statements and Exhibits
Copy of press release dated January 24, 2000 regarding the registrant's
earnings for the fourth-quarter and full-year 1999.
<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: January 26, 2000 By: /s/ Robert T. Kenagy
-------------------------------------
Name: Robert T. Kenagy
Title: Associate General Counsel and Secretary
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Media
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Zen Yinger Christopher Wyse
616-923-5978 616-923-3417
[email protected] [email protected]
Investment
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Thomas Filstrup
616-923-3189
[email protected]
Whirlpool Corporation Reports Record performance; Quarterly Earnings grow 36
percent, FULL-YEAR CORE earnings up 31 Percent
BENTON HARBOR, Mich. - Jan. 24, 2000 - Whirlpool Corporation (NYSE: WHR)
said today that record operating profit levels from its North American, European
and Asian businesses, along with solid year-over-year performance from its Latin
American business produced the largest quarterly profit in the company's
history. A 36 percent increase in fourth-quarter earnings and a 31 percent gain
in full-year 1999 earnings from continuing operations represents an all time
record, excluding the first quarter 1999 impact of the Brazilian currency
devaluation.
"This record quarterly performance represents 13 consecutive quarters in
which core earnings per share have improved in excess of 20 percent from the
prior-year period," said David R. Whitwam, Whirlpool Chairman and CEO. "Our
record 1999 performance was again driven by wide-ranging strength and global
leverage of our operations, continued strong consumer demand for new products
under our leading brand names, and ongoing productivity gains from our
customized Six Sigma program called Operational Excellence.
"And we are optimistic that our strong performance will continue in 2000 as
we focus on our global business strategy of providing consumers with unique and
innovative branded solutions for activities in and around the home." Whitwam
continued, "We're equally optimistic about the potential for our recently
-more-
<PAGE>
Whirlpool Corporation Earnings - add one
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announced Networked Home Solutions Initiative, which will include a new
generation of branded products and enhanced services, developed in cooperation
with Cisco Systems and Sun Microsystems to provide consumers new levels of
convenience and innovation."
Fourth-quarter earnings from continuing operations were $113 million, or
$1.51 per diluted share, up 36 percent versus earnings of $83 million, or $1.09
per diluted share in the comparable 1998 period.
Full-year core earnings were $407 million, or $5.35 per diluted share, up
31 percent, versus core earnings of $310 million, or $4.06 per diluted share for
1998. Core earnings are earnings from continuing operations excluding the
impact of the first quarter 1999 Brazilian currency devaluation and discontinued
operations from 1998. Full year net earnings, which include the Brazilian
currency devaluation, were also at record levels of $347 million, or $4.56 per
diluted share, versus 1998 net earnings of $325 million, or $4.25 per diluted
share.
The company's strong global sales growth was dampened by currency
fluctuations. Reported fourth-quarter sales were $2.7 billion, down 2 percent
from the 1998 period due to currency fluctuations. Absent currency
fluctuations, sales grew 9 percent in the quarter. Full-year sales were $10.5
billion, up 2 percent from 1998 results. Absent currency fluctuations, sales
grew 11 percent for the year. The company believes that its unit sales are
fundamentally representative of the underlying growth strength of its businesses
around the world.
Whirlpool North America reported fourth-quarter 1999 results with record
levels of sales and operating profit, which grew by 8 percent and 16 percent
respectively. This performance solidly outpaced an already robust appliance
industry. These results were driven, in part, by continued strong consumer
demand for an array of new branded consumer solutions across nearly all product
categories. The company's North American performance was also driven by its
aggressive focus on Operational Excellence, a customized program
-more-
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Whirlpool Corporation Earnings - add two
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designed to produce ongoing productivity and quality gains, as well as cycle
time improvements across virtually every part of the organization.
The company expects to continue its strong performance momentum into 2000
through a combination of consumer-focused new product introductions and ongoing
Operational Excellence gains. Leading the new product introductions is the
recently introduced Whirlpool brand Catalyst Cleaning Action clothes washer,
which helps consumers get clothes cleaner with breakthrough cleaning technology.
The company currently expects North American appliance industry unit shipments,
which were at record levels in 1999, to grow by 2 to 3 percent in 2000.
Whirlpool Europe also finished 1999 with records in sales, in local
currency, and operating profits, which grew 42 percent versus the fourth quarter
of 1998. This record performance solidly outpaced the European appliance
industry and was the result of the strong consumer demand for new products in
nearly all product categories under both the Whirlpool and Bauknecht brands, as
well as strong productivity gains from the Operational Excellence program.
In 2000 the company expects to continue this strong momentum through a
combination of new product introductions, lead by branded product launches in
the microwave oven, laundry and refrigeration product categories and other
aggressive brand initiatives. The company currently expects European appliance
industry shipments to grow between 4 and 5 percent in 2000, as the economies of
Western Europe continue to strengthen.
Whirlpool Latin America reported a 42 percent gain in quarterly operating
profit as the appliance industry recovery, which began in the third quarter,
continues across the region. The company's performance was again driven by
consumer focused new product offerings under both the Brastemp and Consul
brands, as well as by solid performance from Embraco, the company's hermetic
compressor subsidiary based in Brazil. The company also believes that the
fundamental economic conditions in Brazil will continue to improve.
-more-
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Whirlpool Corporation Earnings - add three
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Consequently, in 2000 the company currently expects Latin American
appliance industry unit shipments to grow between 7 and 10 percent, and the
company is poised to grow its market-leading position following the recently
announced purchase of additional shares of Brasmotor S.A. and Multibras S.A. for
$283 million. This purchase moves the company's equity ownership position of
all of its Brazilian subsidiaries from about 55 percent to 87 percent.
"Our recent share purchase in Brazil, will now help us to fully integrate
the Brazilian operations into the global Whirlpool network and enhance our
ability to invest and grow in a market that is improving in Brazil and
throughout Latin America," said Whitwam.
Whirlpool Asia again posted double digit quarterly gains in sales and
operating profits, producing a fifth consecutive quarter of operating
profitability in the world's largest home appliance market. The company's
improved performance was driven by strong sales growth in both India and China,
where consumer acceptance of new products marketed under the Whirlpool brand
name continues to grow. Continued operating strength from company operations
across the Asia-Pacific region also helped produce the record performance.
"Such substantial improvements are the result of our extensive efforts to
build the position of the Whirlpool brand with consumers across this
strategically important region," said Whitwam. The company currently expects
appliance industry unit shipments in its Asian region, comprised primarily of
its major businesses in India and China, to grow between 8 and 10 percent in
2000.
In summary, Whitwam added, "While we're pleased with our record performance
in 1999, we're also optimistic about the outlook in 2000 for the global
appliance industry and our ability to deliver profitable growth by serving
consumers with our branded offerings in every major appliance market of the
world."
- more -
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Whirlpool Corporation Earnings - add four
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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.
###
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 industry-wide performance noted for 2000 and the gradual appliance
industry improvement expected by the company in Latin America and 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 BALANCE SHEETS
WHIRLPOOL CORPORATION
(millions of dollars)
<TABLE>
<CAPTION>
December 31 December 31
1999 1998
(Unaudited) (Audited)
------------ -----------
<S> <C> <C>
ASSETS
Current Assets
- ------------------
Cash and equivalents $ 261 $ 636
Trade receivables, less allowances of
(1999: $124; 1998: $ 116) 1,477 1,711
Inventories 1,065 1,100
Prepaid expenses and other 286 268
Deferred income taxes 88 167
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Total Current Assets 3,177 3,882
Other Assets
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Investment in affiliated companies 112 108
Intangibles, net 795 936
Deferred income taxes 247 262
Other 317 329
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1,471 1,635
Property, Plant and Equipment
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Land 70 77
Buildings 863 900
Machinery and equipment 4,249 4,534
Accumulated depreciation (3,004) (3,093)
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2,178 2,418
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Total Assets $ 6,826 $ 7,935
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
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Notes payable $ 444 $ 905
Accounts payable 1,081 1,079
Employee compensation 300 271
Accrued expenses 803 870
Restructuring costs 39 117
Current maturities of long-term debt 225 25
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Total Current Liabilities 2,892 3,267
Other Liabilities
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Deferred income taxes 157 152
Postemployment benefits 612 622
Other liabilities 168 192
Long-term debt 714 1,087
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1,651 2,053
Minority Interests 416 614
Stockholders' Equity
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Common stock 84 83
Paid-in capital 374 321
Retained earnings 2,268 2,024
Unearned restricted stock (6) (3)
Accumulated other comprehensive income (443) (183)
Treasury stock - at cost (410) (241)
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Total Stockholders' Equity 1,867 2,001
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Total Liabilities and Stockholders' Equity $ 6,826 $ 7,935
============ ===========
</TABLE>
See notes to consolidated condensed financial statements.
<PAGE>
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (UNAUDITED)
WHIRLPOOL CORPORATION
FOR THE PERIOD ENDED DECEMBER 31
(millions of dollars except per share data)
<TABLE>
<CAPTION>
Three Months Ended Full Year
---------------------- --------------------------
1999 1998 1999 1998
------ ----- ------- -------
<S> <C> <C> <C> <C>
Net sales $2,689 $2,735 $10,511 $10,323
EXPENSES:
Cost of products sold 1,983 2,045 7,852 7,805
Selling and administrative 457 498 1,753 1,791
Intangible amortization 8 11 31 39
------ ------ ------- -------
2,448 2,554 9,636 9,635
------ ------ ------- -------
OPERATING PROFIT 241 181 875 688
OTHER INCOME (EXPENSE):
Interest and sundry income (expense) (19) 27 (195) 136
Interest expense (40) (63) (166) (260)
------ ------ ------- -------
EARNINGS BEFORE INCOME TAXES
AND OTHER ITEMS 182 145 514 564
Income taxes 62 48 197 209
------ ------ ------- -------
EARNINGS FROM CONTINUING OPERATIONS
BEFORE EQUITY EARNINGS AND MINORITY INTERESTS 120 97 317 355
Equity in earnings (loss) of affiliated companies - (1) (4) 1
Minority interests (7) (13) 34 (46)
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EARNINGS FROM CONTINUING OPERATIONS 113 83 347 310
Discontinued operations less applicable taxes - - - 15
------ ------ ------- -------
NET EARNINGS $ 113 $ 83 $ 347 $ 325
====== ====== ======= =======
Per share of common stock:
Basic earnings from continuing operations $ 1.52 $ 1.10 $ 4.61 $ 4.09
Basic net earnings $ 1.52 $ 1.10 $ 4.61 $ 4.29
Diluted earnings from continuing operations $ 1.51 $ 1.09 $ 4.56 $ 4.06
Diluted net earnings $ 1.51 $ 1.09 $ 4.56 $ 4.25
Cash dividends $ .34 $ .34 $ 1.36 $ 1.36
======= ====== ======= =======
</TABLE>
<PAGE>
SUPPLEMENTAL PRO-FORMA SCHEDULE
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (UNAUDITED)
WHIRLPOOL CORPORATION
FOR THE PERIOD ENDED DECEMBER 31
(millions of dollars except per share data)
<TABLE>
<CAPTION>
Full Year
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1999
1999 Actual Devaluation Pro-forma 1998
------------ ------------- --------- -------
<S> <C> <C> <C> <C>
Net sales $10,511 $ - $10,511 $10,323
EXPENSES:
Cost of products sold 7,852 - 7,852 7,805
Selling and administrative 1,753 - 1,753 1,791
Intangible amortization 31 - 31 39
------- --------- ------- ------
9,636 - 9,636 9,635
------- --------- ------- ------
OPERATING PROFIT 875 - 875 688
OTHER INCOME (EXPENSE):
Interest and sundry income (expense) (195) (158) (37) 136
Interest expense (166) - (166) (260)
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EARNINGS (LOSS) BEFORE INCOME TAXES
AND OTHER ITEMS 514 (158) 672 564
Income taxes(benefit) 197 (53) 250 209
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EARNINGS (LOSS) FROM CONTINUING OPERATIONS
BEFORE EQUITY EARNINGS AND MINORITY INTERESTS 317 (105) 422 355
Equity in earnings (loss) of affiliated companies (4) - (4) 1
Minority interests 34 45 (11) (46)
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EARNINGS (LOSS) FROM CONTINUING OPERATIONS 347 (60) 407 310
Gain on disposal of discontinued operations
less applicable taxes - - - 15
------- --------- ------- ------
NET EARNINGS (LOSS) $ 347 $ (60) $ 407 $ 325
======= ========= ======= ======
Per share of common stock:
Diluted earnings from continuing operations $ 4.56 $ (.79) $ 5.35 $ 4.06
Diluted net earnings $ 4.56 $ (.79) $ 5.35 $ 4.25
Note: This pro-forma has been prepared to show Whirlpool's performance
excluding the first quarter 1999 foreign exchange loss related to the
devaluation of the Brazilian real.
</TABLE>
