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) March 15, 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
5. Other Events
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On March 15, 2000, the registrant issued a press release confirming current
analyst estimates of earnings for 2000 at $6.24 per diluted share, announcing
long-term financial performance goals, and the anticipated introduction of new
products to the global market
Item 7. Financial Statements and Exhibits
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Copy of press release dated March 15, 2000.
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: March 21, 2000 By: /s/ Robert T. Kenagy
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Name: Robert T. Kenagy
Title: Associate General Counsel and Secretary
EXHIBIT
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Contact:
WHIRLPOOL CORPORATION OUTLINES GLOBAL GROWTH STRATEGY AND
PERFORMANCE GOALS
Company Confirms 2000 Consensus Earnings Estimates
Company Announces Innovative New Products
Company Outlines Global E-Business Plans
BENTON HARBOR, Mich. - Mar. 15, 2000 - Whirlpool Corporation (NYSE: WHR) in
a meeting today with Wall Street analysts and fund managers is outlining broad
elements of its global, brand-focused business strategies. During today's
meeting the company is also outlining its performance goals related to those
strategies, presenting several innovative new products and providing an overview
of several other company-wide initiatives.
At the same time, the company remains comfortable with current Wall Street
consensus earnings estimates of $6.24 per diluted share for the year 2000, which
represents a 17 percent improvement over the company's record 1999 full-year
core earnings performance of $5.35 per diluted share.
Whirlpool Chairman and CEO, David R. Whitwam said, "We continue to see our
businesses become increasingly more regionally balanced as our positive momentum
and performance continues around the world. The North American appliance
industry continues to outpace last year's record levels. Europe's economic
recovery is producing broad gradual growth of appliance industry shipments. The
Brazilian economy and appliance industry continue to grow positively, and our
major markets in Asia are performing well. And, we continue to outperform the
positive industry trends in all of these major markets."
Long-Term Financial Goals
The company previously announced long-term financial performance goals that
include sales growth of 6 to 10 percent per year and earnings growth of 15 to 20
percent per year. The company translated these goals into year 2002 targets of
$13.2 billion in sales, operating profit of $1.5 billion, equivalent to an 11.3
percent operating margin. These targets compare to 1999 actual performance of
$10.5 billion in sales, $875 million in operating profit and an 8.3 percent
operating margin.
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Whirlpool Outlines Future Performance -add one
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Whitwam said, "While these performance targets are aggressive, our
underlying plans for our brands give us confidence that we can drive significant
sales growth, leverage those sales into continuing earnings improvement, and in
the end, deliver on these targets. By delivering on the current Wall Street
consensus earnings estimate of $6.24 per diluted share in 2000, we will have
grown our core earnings per share at a compounded annual rate of 30 percent per
year during the 4-year period. We strongly believe that our unique global
platform, including our global market share position that is 40 percent larger
than our closest competitor, will allow us to deliver on these goals."
"This performance will be driven by our unique operational, productivity
and quality capabilities leveraged across our entire global enterprise in
combination with the power of our leading brands to deliver consumers unique and
innovative product and service solutions around the world," added Whitwam. "A
decade ago the Whirlpool brand was primarily marketed to consumers in the United
States. Today, through our aggressive global growth, the Whirlpool brand is the
single largest selling appliance brand across the world. And, with the plans
we've detailed, we intend to build upon this global leadership position."
New Product Introductions
At the meeting the company is previewing a number of innovative new product
introductions that will come to various global markets during the next 18
months. Whirlpool President and COO, Jeff M. Fettig said, "We will bring more
new and innovative consumer solutions to the global market over the next year
and a half than any time in our history. We believe these will be high impact
and uniquely innovative products that will enhance sales growth and expand
operating margins through the premium positioning we expect in the marketplace."
Among the products on display at the meeting are two new speed-cooking
innovations. The new Whirlpool brand Speed Cook oven helps busy consumers put
delicious meals on the table in half the time it normally takes with a
conventional oven. The new KitchenAid brand UltimaCook oven, which features
enough oven capacity to hold a 12-pound turkey, also helps consumers prepare
meals in a fraction of the time.
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The company is displaying the new Whirlpool brand Conquest side-by-side
refrigerator that boasts a revolutionary in-the-door-ice system designed to free
up extra storage space in the freezer. The Conquest also features Whirlpool's
exclusive UltraEase water filtration system and a new design of gently contoured
doors.
Also on display at the meeting will be the new Whirlpool brand Whispure Air
Purifier, a groundbreaking new product combining advanced airflow design and
exclusive Filtrete True HEPA Filter technology from 3M to produce the quietest
and cleanest high efficiency air purifier on the market today.
The company is demonstrating a new Whirlpool brand clothes washer with
Whirlpool's patented Catalyst Cleaning Action technology that virtually
eliminates the need to pre-treat clothes, producing unsurpassed cleaning
performance and the whitest whites. The company is also showcasing a new-to-
the-world clothes washing product platform. This new design will offer
consumers the appliance industries' highest energy efficiency, largest capacity
and best cleaning performance while treating garments with a gentleness
unsurpassed in the top-loading washer product category.
In addition, the company is demonstrating it's soon to be introduced
clothes care system. The innovative new global product allows consumers to
refresh garments to a ready-to-wear state without traditional washing, drying or
dry cleaning.
Global E-Business Plans and Integrated Home Solutions
At the meeting the company will present an overview of its extensive e-
business plans that use new technologies to enable and create new possibilities
for reaching and serving consumers worldwide. One example that will be
demonstrated at the meeting is Whirlpool Web World, a global Internet portal
that allows suppliers, trade partners and employees to interact directly with
the company. Additionally, the company is presenting an overview of its
recently announced plans to provide consumers, worldwide, with an Integrated
Home Solutions package of Internet-enabled products and enhanced services
designed to make management of day-to-day activities in and around the home
easier and more convenient.
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In addition, the company is also expecting to shortly announce its first
major collaboration with a large land developer to create a sizable, mixed-use
planned community that would utilize the company's Integrated Home Solutions
package of Internet-enabled products and services. The new Whirlpool and
KitchenAid brand Internet-enabled home solutions will be available to homeowners
in the new community offering them new levels of innovation, functionality, and
convenience. The new products and associated enhanced services will be
supported by Cisco's Systems' Internet home gateway technology and Sun
Microsystems' Java(TM) and Jini(TM) technologies.
"We firmly believe that our focus on these new technologies will enable us
to further our global business strategy of serving consumers with unique branded
solutions that help them manage their home activities. And, we expect to make
further announcements in this exciting and fast developing part of our company,"
added Fettig.
Share Repurchase Update
Lastly, the company is confirming that it has completed, earlier than
planned, the 1999 stock buyback authorization totaling $250 million, resulting
in the repurchase of 4.2 million shares. In addition, the company is confirming
that it has already started to purchase additional shares under the recently
authorized $750 million share repurchase program extension. The company
currently has approximately 73 million shares outstanding.
Whirlpool Executive Vice President and CFO, Mark E. Brown said, "These two
repurchase programs are made possible by the strong operating earnings and cash
flow performance of our business, and reflects our belief that our stock is
significantly undervalued today."
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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This news release contains forward-looking statements, as that term is defined
in the Private Securities Litigation Reform Act of 1995. 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.
Whirlpool Media Contacts Whirlpool Investor Contact
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Christopher Wyse Tom Filstrup
616-923-3417 616-923-3189
christopher_j_wyse@email.whirlpool.com thomas_c_filstrup@email.whirlpool.com
Or
Zen Yinger
616-923-5978
zen_m_yinger@email.whirlpool.com