EXHIBIT 99.1
[LOGO]
WHIRLPOOL CORPORATION REPORTS QUARTERLY EARNINGS IN LINE
WITH EXPECTATIONS
BENTON HARBOR, Mich. - Oct. 18, 2000 - Whirlpool Corporation (NYSE: WHR),
as anticipated, today reported third-quarter earnings per diluted share of 98
cents, in line with recently revised expectations.
"We delivered expected performance this quarter despite the challenging
industry environment we faced in North America and Europe," said David R.
Whitwam, Whirlpool Chairman and CEO. "As we previously indicated, we expected
lower third-quarter earnings following Circuit City's decision to stop selling
appliances. However, we expect to benefit from this event over time as our other
retail distribution channels pick up the associated consumer demand, which began
to happen in September. We expect that we'll deliver fourth-quarter earnings
between $1.45 and $1.55 per diluted share based on the trends we saw last month
and our existing brand building initiatives worldwide that include significant
new product introductions."
Third-quarter 2000 net earnings were $67 million, or 98 cents per diluted
share, down 37 percent from third-quarter 1999 earnings of $107 million or $1.40
per diluted share. Year-to-date net earnings were $301 million, or $4.18 per
diluted share, up 2 percent from the first nine months of 1999 core earnings of
$294 million, or $3.85 per diluted share. Core earnings for 1999 excluded the
first-quarter Brazilian currency devaluation. Reported nine-month earnings for
1999 were $234 million, or $3.06 per diluted share.
Third-quarter sales of $2.6 billion were down 6 percent from the prior year
period. Year-to-date sales were $7.7 billion, down 1 percent from the first nine
months of 1999. Absent currency translations of $200 million, sales grew 1.7
percent in the first nine months of the year.
Whirlpool North America, as projected and despite record unit shipments in
September, reported declines in sales, unit shipments and operating profits for
the third quarter. The company has taken steps to address competitive pricing
issues and changes in the retail distribution landscape in
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North America. These steps are expected to allow the company to more than
replace the business it was doing with Circuit City. North American appliance
industry shipments are expected to continue to slow during the fourth quarter,
but still grow about 2 percent for the full year.
The company expects improved performance for the remainder of the year and
into 2001 through an aggressive focus on productivity and Operational Excellence
gains, combined with an accelerated schedule of new product introductions at
value-added retailers. Leading the new products is the recently introduced
Calypso Wash Motion top-loading clothes washer, which uses patented technology
to save more water and give better cleaning performance than any other
full-size, high-efficiency washer in the market today.
Whirlpool Europe reported gains in quarterly unit shipments, though
revenues and operating profits were lower in the quarter due to continued price
competition and a 12 percent negative impact from currency translations. The
company continues to address a competitive environment and higher material costs
in the region with productivity gains from the Operational Excellence program.
Continued strong consumer demand for recently introduced products under the
Bauknecht and Whirlpool brand names is expected to lead to performance
improvements in the fourth quarter and into 2001. The company continues to
expect European appliance industry shipments to grow between 4 and 5 percent for
the full year.
Whirlpool Latin America reported declines in sales and operating profits as
market conditions and consumer activity in Brazil remain soft. Unit shipments
showed improvement from second quarter 2000 levels, but also remain depressed
from historic levels.
Company performance in Latin America is expected to show improvement in the
fourth quarter and into 2001 driven by extensive new product offerings under the
market leading Brastemp and Consul brands, and an improving economic environment
with increased availability of consumer credit. The company also is expected to
benefit from solid performance at Embraco, its hermetic compressor subsidiary
based in Brazil. Latin American appliance
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industry unit shipments are expected to grow between 7 and 10 percent for the
full year.
Whirlpool Asia again reported double-digit gains in operating profit driven
by growth in clothes washer and microwave oven sales from its Chinese
manufacturing operations, and strong consumer demand for Whirlpool brand
refrigerators and clothes washers in India. Continued operating profit strength
from company operations across the Asia-Pacific region also contributed to the
quarterly performance. The company expects continued performance improvements in
Asia in the fourth quarter and into 2001.
The company also announced that it repurchased 4.8 million shares during
the third quarter of 2000. In total, the company now has repurchased more than
11.3 million shares and spent approximately 60 percent of the $1 billion
authorized by its board of directors.
In summary, Whitwam added, "Although we expect to continue operating in a
challenging environment around the world, the trends we saw in September give us
confidence that we can deliver a solid fourth-quarter performance and enter 2001
with good momentum."
At 10:00 a.m. (EDT) today the company will be hosting a conference call,
which can be heard live on the Internet by visiting www.WhirlpoolCorp.com and
clicking on the "Investors" button and then the "Conference Call Audio" menu
item.
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_wyse@email.whirlpool.com thomas_c_filstrup@email.whirlpool.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 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.
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (UNAUDITED)
WHIRLPOOL CORPORATION
FOR THE PERIOD ENDED SEPTEMBER 30
(millions of dollars except share and dividend data)
Three Months Ended Year-to-Date
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1999 Pro-forma
2000 1999 2000 1999 "Core" Earnings
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Net sales $ 2,570 $ 2,719 $ 7,746 $ 7,822 $ 7,822
EXPENSES:
Cost of products sold 1,973 2,036 5,873 5,869 5,869
Selling and administrative 417 437 1,211 1,296 1,296
Intangible amortization 7 8 22 23 23
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2,397 2,481 7,106 7,188 7,188
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OPERATING PROFIT 173 238 640 634 634
OTHER INCOME (EXPENSE):
Interest and sundry income (expense) (11) (27) (24) (176) (18)
Interest expense (49) (41) (132) (126) (126)
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EARNINGS BEFORE INCOME TAXES
AND OTHER ITEMS 113 170 484 332 490
Income taxes 41 65 177 134 187
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EARNINGS BEFORE EQUITY EARNINGS
AND MINORITY INTERESTS 72 105 307 198 303
Equity in earnings of affiliated companies (3) (2) 3 (4) (4)
Minority interests (2) 4 (9) 40 (5)
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NET EARNINGS $ 67 $ 107 $ 301 $ 234 $ 294
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Per share of common stock:
Basic net earnings $ .98 $ 1.42 $ 4.21 $ 3.10 $ 3.89
Diluted net earnings $ .98 $ 1.40 $ 4.18 $ 3.06 $ 3.85
Cash dividends $ .34 $ .34 $ 1.02 $ 1.02 $ 1.02
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Note: 1999 Pro-forma excludes 1st quarter Brazil devaluation.
CONSOLIDATED CONDENSED BALANCE SHEETS
WHIRLPOOL CORPORATION
(millions of dollars)
September 30 December 31 September 30 December 31
2000 1999 2000 1999
(Unaudited) (Audited) (Unaudited) (Audited)
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ASSETS LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Assets Current Liabilities
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Cash and equivalents $ 266 $ 261 Notes payable $ 1,152 $ 444
Trade receivables, less allowances of Accounts payable 1,045 1,081
(2000: $108 ;1999: $124 ) 1,590 1,477 Employee compensation 245 300
Inventories 1,147 1,065 Accrued expenses 866 803
Prepaid expenses and other 238 286 Restructuring costs 12 39
Deferred income taxes 73 88 Current maturities of long-term debt 33 225
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Total Current Assets 3,314 3,177 Total Current Liabilities 3,353 2,892
Other Liabilities
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Deferred income taxes 142 157
Postemployment benefits 621 612
Other Assets Other liabilities 170 168
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Investment in affiliated companies 117 112 Long-term debt 785 714
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Intangibles, net 776 795 1,718 1,651
Deferred income taxes 245 247
Other 384 317 Minority Interests 153 416
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1,522 1,471
Stockholders' Equity
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Common stock 84 84
Property, Plant and Equipment Paid-in capital 391 374
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Land 65 70 Retained earnings 2,495 2,268
Buildings 849 863 Unearned restricted stock (10) (6)
Machinery and equipment 4,215 4,249 Accumulated other comprehensive incom (470) (443)
Accumulated depreciation (3,077) (3,004) Treasury stock - at cost (826) (410)
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2,052 2,178 Total Stockholders' Equity 1,664 1,867
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Total Assets $ 6,888 $ 6,826 Total Liabilities and Stockholders' $ 6,888 6,826
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